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CANON ANNUAL REPORT 2012
Fiscal Year Ended December 31, 2012

Table of contents

  • Page 1
    CANON ANNUAL REPORT 2012 F i s c a l Ye a r E n d e d D e c e m b e r 3 1 , 2 0 1 2

  • Page 2
    ... rate on the Tokyo Foreign Exchange Market as of December 28, 2012, solely for the convenience of the reader. Net Sales (Millions of yen) 5,000,000 4,094,161 4,000,000 3,209,201 3,000,000 200,000 2,000,000 1,000,000 0 2008 2009 2010 2011 2012 100,000 3,706,901 3,557,433 3,479,788 300,000 400...

  • Page 3
    ...100 companies in terms of major management indicators. Cover Photo: The EOS-1D X, the ï¬,agship EOS model, is an interchangeable-lens digital camera that provides a high-level of image quality performance as well as high speed. Canon retains the top position in global sales volume of interchangeable...

  • Page 4
    02 STRATEGY Business Units Management System Financial Section TO OUR STOCKHOLDERS Fujio Mitarai Chairman & CEO Canon Inc. In the face of the current turbulent business environment, Canon will decisively implement reforms and achieve sound business growth.

  • Page 5
    ... number of new products than in previous years. In addition to enjoying the No. 1 position for laser printers and digital cameras, we maintained strong market positions across all our business segments. We also strove to maintain and improve our sound financial structure. Our stockholders' equity...

  • Page 6
    ... Three Regional Headquarters management system Establishing a world-leading globally optimized production system Comprehensively reinforcing global sales capabilities Building the foundations of an environmentally advanced corporation Imparting a corporate culture, and cultivating human resources be...

  • Page 7
    ... business, which supports enhanced productivity in the office. As for interchangeable-lens digital cameras, Canon further reinforced its EOS series, including the launch of high-resolution models featuring compact, turing a high market share in a short time. In October 2012, we added to our lineup...

  • Page 8
    .... Canon already supplies a variety of industrial equipment, including Global Diversification Develop a Global R&D Structure New Innovation Centers in the U.S. and Europe U.S. Establish Institutes with responsibilities spanning basic research to leading-edge technology application Europe Promote...

  • Page 9
    .... The criterion we use when determining new companies in Thailand, the Philippines and Brazil, where we plan to start manufacturing office MFDs, laser printers, digital cameras and other products in 2013. Since 2010, Canon has carried out the localized production of toner cartridges in the United...

  • Page 10
    ...States, Japan, China and France. In 1996, we also started a collection service in Japan for used ink cartridges, and this program has since been expanded to include Asia, Oceania, North America and Europe. STR ATEGY 6 In order to ensure that Canon develops as a truly excellent global company worthy...

  • Page 11
    ... imparting a corporate culture, and cultivating human resources befitting a truly excellent global company. To this end, we already have numerous local human resources in management positions at our sales companies around the world. For example, in Europe, our largest regional market, the presidents...

  • Page 12
    ... Main Products •Office Multifunction Devices (MFDs) •Office Copying Machines •Personal-Use Copying Machines OFFICE BUSINESS UNIT Office Multifunction Devices (MFDs) Digital Production Printing Systems •Laser MFDs •Laser Printers •Digital Production Printing Systems •High Speed...

  • Page 13
    ... promoting sales of its cutting-edge digital radiography systems and ophthalmic equipment, which employ Canon's highly regarded medical imaging technologies. 600,000 522,405 500,000 432,958 420,863 400,000 357,998 407,840 11.7% 300,000 200,000 100,000 0 2008 2009 2010 2011 2012 Note...

  • Page 14
    ... market for digital production printing systems benefited from growth in Asia and generally steady demand in other regions. In these circumstances, in Japan, we reported increased unit sales of light-production monochrome models and mid-production color models, and in other Asian markets, unit sales...

  • Page 15
    ...boost market share and profitability by launching new products, centering on the high-volume printers class. The imagePRESS C7010VPS, jointly developed with Océ, delivers high-imagequality, high-precision printing that rivals offset printing, with a printing speed of up to 70 ppm for both color and...

  • Page 16
    ... compact digital cameras worldwide. Digital video camcorders are also facing a downtrend in global demand. Against that backdrop, Canon pursued a profit-oriented strategy, and its HFG10, a high-end high-definition model, captured the top market share in 900,000 600,000 300,000 0 2010 2011 2012

  • Page 17
    ..., we added products supporting 4K resolution, including the EOS C500 Digital Cinema Camera, to our lineup. In broadcast equipment, Canon enjoyed greater demand from domestic broadcasters and received numerous inquiries in Europe associated with large-scale sporting events. Accordingly, sales of...

  • Page 18
    ...mid-sized panels used in smartphones and other devices was solid. However, capital investment in large-sized panel manufacturing, where Canon excels, was weak, leading to declines in overall sales of flatpanel-display lithography equipment, both in volume and value terms. In medical equipment, Canon...

  • Page 19
    ... scanners manufactured by Canon Electronics Inc., overall sales in volume terms increased year on year, thanks to sales recovery in North America, as well as healthy sales in China, India, and elsewhere in Asia. Sales of organic LED panel manufacturing equipment made by Canon Tokki Corporation...

  • Page 20
    ... production market with its Cinema EOS System. As the first step, the Company unveiled the EOS C300 digital cinema camera, capable of reproducing beautiful images close to those of 35mm motion picture film. The camera incorporates a Canon-developed largeformat CMOS image sensor that is the same size...

  • Page 21
    ... is equipped with a new eight-color dye ink system for superior expression of coloration and gloss. All three models utilize Canon's Optimum Image Generating (OIG) System, which selects the optimal ink mixture and ink droplet arrangement, ensuring high-image-quality photograph prints best suited...

  • Page 22
    ...auditing structure underpinned by the Corporate Audit Center and an information disclosure system for management activities. composed of internal directors who have well-developed knowledge of the Company's affairs. Also, the board is supported by various management committees that address important...

  • Page 23
    ... important decisions and conducting strict audits of the Group's business and assets. Audit & Supervisory Board members also work closely with independent auditors and the Corporate Audit Center, which is in charge of monitoring the Company's compliance, risk management and internal control systems...

  • Page 24
    ...of Japan (the "Corporation Law") does not require Japanese companies with the Audit & Supervisory Board such as the Company, to appoint independent directors as members of the board of directors. The NYSE Corporate Governance Rules require non-management directors of U.S. listed companies to meet at...

  • Page 25
    ... to have ever been a director, executive officer, manager, or employee of the Company or its subsidiaries. The Company's current Audit & Supervisory Board Member system meets these requirements. In addition, pursuant to the regulations of the Japanese stock exchanges, the Company is required to have...

  • Page 26
    ... to develop competitive products, mainly in Japan, and then disseminating those offerings around the world. Going forward, the Company will expand and upgrade its R&D organizations in Europe and the; United States, laying the foundation for the Three Regional Headquarters system that Canon envisions...

  • Page 27
    ... CORE TECHNOLOGIES Canon is concentrating efforts on pre-competitive fields, involving research that can take more than ten years. At the same time, the Company is continually bolstering activities centered on key parts and key devices in order to enhance the competitiveness of its products. In CMOS...

  • Page 28
    ...manufacturing expertise. Reinforcement of Production Capacity 2012: Commenced operations Mar. Canon Zhongshan Business Machines Co., Ltd.; expansion (China) Laser printers May Hita Canon Materials Inc. (Japan) Toner cartridge parts Jun. Canon Inc., Taiwan; expansion (Taiwan) Lenses, digital cameras...

  • Page 29
    ... for interchangeable lenses for digital SLR cameras, which requires a high degree of precision, in 2013. In addition to creating high-value-added products, Canon will expedite efforts to raise productivity in order to strengthen the cost-competitiveness of manufacturing products in Japan. Meanwhile...

  • Page 30
    28 Strategy Business Units MANAGEMENT SYSTEM Financial Section SALES & MARKETING At the San Francisco showroom, recently opened by Canon Solutions America, Inc., visitors can experience a wide range of Canon products through displays and demonstrations of input to output devices such as offi...

  • Page 31
    ... Technology and Support Center, in order to strengthen its sales network and bolster service and support for professionals, including filmmakers utilizing the Cinema EOS System. Also, from June 2012, Canon reorganized its camera and video distribution strategy in Brazil to direct sales from...

  • Page 32
    ... and the global environment. In 2012, nine models among Canon's imageRUNNER ADVANCE series were approved under the CFP (Carbon Footprint of Products) Communication Canon led the industry in launching a recycling program in Japan for ink cartridges in 1996 and has expanded the program's coverage area...

  • Page 33
    ... U.S.A. supports "Eyes on Yellowstone," an educational and research program to manage and protect endangered wildlife species and promote education at Yellowstone National Park. Canon's imaging equipment has been used to monitor the lives of animals, create a video library, and gather information...

  • Page 34
    ... images and colors. In addition to donating digital cameras, inkjet printers, and other devices, Canon sent employees to the schools to conduct photography classes for the children. ADDRESSING THE ISSUE OF CONFLICT MINER ALS The term "conflict minerals" refers to certain minerals originating in the...

  • Page 35
    ...BALANCE SHEETS 34 CONSOLIDATED STATEMENTS OF INCOME 50 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 52 CONSOLIDATED STATEMENTS OF EQUITY 53 CONSOLIDATED STATEMENTS OF CASH FLOWS 53 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 54 MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING...

  • Page 36
    ... across all of its businesses. Amid this harsh environment, although Canon continued Group-wide efforts to expand sales, mainly for competitively priced products such as interchangeable-lens digital cameras and office equipment, net sales for the year declined 2.2% to ¥3,479.8 billion (U.S.$39,998...

  • Page 37
    ... production lead times in order to promptly recover related product expenses, while balancing risks of supply chain disruptions by optimizing finished goods inventories in order to avoid losing potential sales opportunities. Canon's management seeks to meet its liquidity and capital requirements...

  • Page 38
    ... critical judgment areas in the application of its accounting policies that currently affect its financial condition and results of operations. Revenue recognition Canon generates revenue principally through the sale of office and imaging system products, equipment, supplies, and related services...

  • Page 39
    .... While management believes that the assumptions used are appropriate, the differences may affect employee retirement and severance benefit costs in the future. In preparing its financial statements for fiscal 2012, Canon estimated a weighted-average discount rate of 1.9% for Japanese plans and...

  • Page 40
    ... the cost of raw materials, parts and labor used by Canon in the manufacture of its products. A portion of the raw materials used by Canon is imported or includes imported materials. Many of these raw materials are subject to fluctuations in world market prices 3 4.1 0 2008 2009 2010 2011 2012

  • Page 41
    ... / Office copying machines / Personal-use copying machines / Laser MFDs / Laser printers / Digital production printing systems / High speed continuous feed printers / Wide-format printers / Document solution •The Imaging System Business Unit* mainly includes Interchangeable-lens digital cameras...

  • Page 42
    ... and Asia and Oceania while decreased in Americas and Europe. In Japan, sales increased by 3.7% in fiscal 2012 supported by the moderate economic recovery. In the Americas, despite the admirable sales performance of interchangeable-lens digital cameras and solid growth in MFDs, laser printer market...

  • Page 43
    ... December 31, 2011. Canon's long-term debt mainly consists of lease obligations. In order to facilitate access to global capital markets, Canon obtains credit ratings from two rating agencies: Moody's Investors Services, Inc. ("Moody's") and Standard and Poor's Ratings Services ("S&P"). In addition...

  • Page 44
    ... under those guarantees at December 31, 2012 were insignificant. Increase in Property, Plant and Equipment (Millions of yen) 400,000 361,988 2.5 300,000 226,869 1.5 158,976 1.0 100,000 0.5 0 2008 2009 2010 2011 2012 0 3.0 Working Capital Ratio Return on Canon Inc. Stockholders' Equity (%) 12 11...

  • Page 45
    ... years Contractual obiligations: Long-term debt: Capital lease obligations Other long-term debt Operating lease obligations Purchase commitments for: Property, plant and equipment Parts and raw materials Other long-term liabilities: Contribution to defined benefit pension plans Total ¥ 3,535 129...

  • Page 46
    ...foreign defined benefit pension plans. Canon's management believes that current financial resources, cash generated from operations and Canon's potential capacity for additional debt and/or equity financing will be sufficient to fund current and future capital requirements. RESEARCH AND DEVELOPMENT...

  • Page 47
    ...foreign currency exchange rates, interest rates and prices of marketable securities and investments. In order to hedge the risks of changes in foreign currency exchange rates, Canon uses derivative financial instruments. Equity price risk Canon holds marketable securities included in current assets...

  • Page 48
    ... the office products domain, Canon plans to leverage its integration with sales subsidiaries of Océ N.V. to thoroughly strengthen direct sales and the solution and service business, while in the consumer products domain, Canon plans to strengthen sales in emerging markets and launch products suited...

  • Page 49
    ...products that meet customer needs, such as lenses equipped with an image stabilization function, so as to expand sales and market share. Overall, the compact digital camera market shrank yearon-year due to ongoing economic stagnation and the rapid growth of tablet PCs and smartphones. However, Canon...

  • Page 50
    ... sales in this market with a robust product lineup including higher added value based around Canon's distinctive high-definition, high-resolution technologies also found in Canon's professional line. Canon plans to expand lineup of "CINEMA EOS SYSTEM" in the business-use digital video camcorder...

  • Page 51
    .... Canon aims to turn around the market share by revamping its product lineup including products for small-tomid-sized panels. In the medical equipment business, the digital radiography (DR) market continued to expand in 2012, mainly in the emerging markets such as Asia. Moreover, the digital systems...

  • Page 52
    ... equipment Long-term debt, excluding current installments Canon Inc. stockholders' equity Total assets Per share data: Net income attributable to Canon Inc. stockholders per share: Basic Diluted Dividend per share Stock price: High Low Average number of common shares in thousands Number of employees...

  • Page 53
    ... U.S. dollar amounts are translated from yen at the rate of U.S.$1 = JPY87, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 28, 2012. 2. The Company made a three-for-two stock split on July 1, 2006. The average number of common shares and the per share data for the...

  • Page 54
    52 Strategy Business Units Management System FINANCIAL SECTION CONSOLIDATED BALANCE SHEETS Canon Inc. and Subsidiaries December 31, 2012 and 2011 Millions of yen Thousands of U.S. dollars (Note 2) ASSETS Current assets: Cash and cash equivalents (Note 1) Short-term investments (Note 3) Trade...

  • Page 55
    ...BALANCE SHEETS / CONSOLIDATED STATEMENTS OF INCOME / CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 53 CONSOLIDATED STATEMENTS OF INCOME Canon Inc. and Subsidiaries Years ended December 31, 2012, 2011 and 2010 Millions of yen Thousands of U.S. dollars (Note 2) 2012 2011 2010 2012 Net sales...

  • Page 56
    54 Strategy Business Units Management System FINANCIAL SECTION CONSOLIDATED STATEMENTS OF EQUITY Canon Inc. and Subsidiaries Common stock Additional paid-in capital Legal reserve Retained earnings Millions of yen Accumulated other comprehensive income (loss) Treasury stock Total Canon ...

  • Page 57
    CONSOLIDATED STATEMENTS OF EQUITY 55 Common stock Additional paid-in capital Legal reserve Thousands of U.S. dollars (Note 2) Accumulated other Retained comprehensive Treasury earnings stock income (loss) Total Canon Inc. stockholders' Noncontrolling equity interests Total equity Balance at ...

  • Page 58
    56 Strategy Business Units Management System FINANCIAL SECTION CONSOLIDATED STATEMENTS OF CASH FLOWS Canon Inc. and Subsidiaries Years ended December 31, 2012, 2011 and 2010 Millions of yen Thousands of U.S. dollars (Note 2) 2012 2011 2010 2012 Cash flows from operating activities: ...

  • Page 59
    ... digital production printing systems. Imaging system products consist mainly of interchangeable-lens digital cameras, compact digital cameras, interchangeable lenses, digital camcorders, digital cinema cameras, inkjet printers, large-format inkjet printers, commercial photo printers, image scanners...

  • Page 60
    ...of time deposits with original maturities of more than three months, debt and marketable equity securities, investments in affiliated companies and nonmarketable equity securities. Canon reports investments with maturities of less than one year as short-term investments. Canon classifies investments...

  • Page 61
    ...from sales of office products, such as office MFDs and laser printers, and imaging system products, such as digital cameras and inkjet printers, is recognized upon shipment or delivery, depending upon when title and risk of loss transfer to the customer. Revenue from sales of optical equipment, such...

  • Page 62
    ... of accounting. Otherwise, revenue is deferred until the undelivered elements are fulfilled and accounted for as a single unit of accounting. Canon records estimated reductions to sales at the time of sale for sales incentive programs including product discounts, customer promotions and volume-based...

  • Page 63
    ... on the Tokyo Foreign Exchange Market on December 28, 2012. This translation should not be construed as a representation that the amounts shown could be converted into United States dollars at such rate. 3. INVESTMENTS The cost, gross unrealized holding gains, gross unrealized holding losses and...

  • Page 64
    ... three months are ¥28,292 million ($325,195 thousand) and ¥125,497 million at December 31, 2012 and 2011, respectively, and are included in short-term investments in the accompanying consolidated balance sheets. Aggregate cost of non-marketable equity securities accounted for under the cost method...

  • Page 65
    ...in the accompanying consolidated balance sheets, are as follows: December 31 Millions of yen Thousands of U.S. dollars 2012 2011 2012 Total minimum lease payments receivable Unguaranteed residual values Executory costs Unearned income Less allowance for credit losses Less current portion ¥ 231...

  • Page 66
    ... statement of cash flows. Océ is engaged in research and development, manufacture and sale of document management systems, printing systems for professionals and high-speed, wide format digital printing systems. Canon and Océ have complementary technologies and products and would benefit...

  • Page 67
    ... of income was not material. Canon acquired businesses other than this described above during the years ended December 31, 2012, 2011, and 2010. Such acquisitions were accounted for using the acquisition method but were not material to its consolidated financial statements. 9. GOODWILL AND OTHER...

  • Page 68
    66 Strategy Business Units Management System FINANCIAL SECTION December 31 Thousands of U.S. dollars Gross carrying amount 2012 Accumulated amortization Software Customer relationships Patented technologies License fees Other $2,596,483 455,345 297,701 231,517 261,793 $3,842,839 $1,515,805 ...

  • Page 69
    ...average interest rates on short-term loans outstanding at December 31, 2012 and 2011 were 4.00% and 2.72%, respectively. Long-term debt consisted of the following: December 31 Millions of yen Thousands of U.S. dollars 2012 2011 2012 Loans, principally from banks, maturing in installments through...

  • Page 70
    68 Strategy Business Units Management System FINANCIAL SECTION 12. EMPLOYEE RETIREMENT AND SEVERANCE BENEFITS The Company and certain of its subsidiaries have contributory and noncontributory defined benefit pension plans covering substantially all of their employees. Benefits payable under the...

  • Page 71
    ... (loss) Net periodic benefit cost for Canon's employee retirement and severance defined benefit plans for the years ended December 31, 2012, 2011 and 2010 consisted of the following components: Years ended December 31 Japanese plans Millions of yen Thousands of U.S. dollars Foreign plans Millions...

  • Page 72
    ...Management System FINANCIAL SECTION Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010 are summarized as follows: Years ended December 31 Japanese plans Millions of yen Thousands of U.S. dollars...

  • Page 73
    ... are selected using strategies consistent with the equity and debt securities described above. As for investments in life insurance company general accounts, the contracts with the insurance companies include a guaranteed interest rate and return of capital. With respect to investments in foreign...

  • Page 74
    72 Strategy Business Units Management System FINANCIAL SECTION December 31, 2011 Japanese plans Level 1 Level 2 Level 3 Millions of yen Foreign plans Total Level 1 Level 2 Level 3 Total Equity securities: Japanese companies (e) Foreign companies Pooled funds (f) Debt securities: Government ...

  • Page 75
    ... TO CONSOLIDATED FINANCIAL STATEMENTS 73 (f) These funds invest in listed equity securities consisting of approximately 50% Japanese companies and 50% foreign companies for Japanese plans, and mainly foreign companies for foreign plans. (g) This class includes approximately 30% Japanese government...

  • Page 76
    74 Strategy Business Units Management System FINANCIAL SECTION 13. INCOME TAXES Domestic and foreign components of income before income taxes and the current and deferred income tax expense (benefit) attributable to such income are summarized as follows: Years ended December 31 Japanese ...

  • Page 77
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 75 A reconciliation of the Japanese statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: Years ended December 31 2012 2011 2010 Japanese statutory income tax rate Increase (reduction)...

  • Page 78
    ... Strategy Business Units Management System FINANCIAL SECTION The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are presented below: December 31 Millions of yen Thousands of U.S. dollars 2012 2011 2012...

  • Page 79
    ... and ending amount of unrecognized tax benefits is as follows: Years ended December 31 Millions of yen Thousands of U.S. dollars 2012 2011 2010 2012 Balance at beginning of year Additions for tax positions of the current year Additions for tax positions of prior years Reductions for tax...

  • Page 80
    ... Units Management System FINANCIAL SECTION 15. OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) are as follows: Years ended December 31 Millions of yen Thousands of U.S. dollars 2012 2011 2010 2012 Foreign currency translation adjustments: Balance at...

  • Page 81
    ... FINANCIAL STATEMENTS 79 Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments, including amounts attributable to noncontrolling interests, are as follows: Years ended December 31 Before-tax amount Millions of yen Tax (expense) or benefit...

  • Page 82
    ... December 31, 2011 was ¥772. On May 1, 2010, based on the approval of the stockholders, the Company granted stock options to its directors, executive officers and certain employees to acquire 890,000 shares of common stock. These option awards vest after two years of continued service beginning on...

  • Page 83
    ...TO CONSOLIDATED FINANCIAL STATEMENTS 81 A summary of option activity under the stock option plans as of and for the years ended December 31, 2012, 2011 and 2010 is presented below: Weighted-average remaining contractual term Year Shares Weighted-average exercise price Yen U.S. dollars Aggregate...

  • Page 84
    ... 31, 2012, 2011 and 2010 excludes certain outstanding stock options because the effect would be anti-dilutive. 18. DERIVATIVES AND HEDGING ACTIVITIES Risk management policy Canon operates internationally, exposing it to the risk of changes in foreign currency exchange rates. Derivative financial...

  • Page 85
    ...instruments December 31 Millions of yen Balance sheet location Fair value Thousands of U.S. dollars 2012 2011 2012 Assets: Foreign exchange contracts Liabilities: Foreign exchange contracts Prepaid expenses and other current assets Other current liabilities ¥ 443 4,472 ¥1,325 1,270 $ 5,092...

  • Page 86
    ... yen Location Thousands of U.S. dollars 2012 2011 2010 2012 Foreign exchange contracts Other, net ¥(30,602) ¥11,168 ¥50,794 $(351,747) 19. COMMITMENTS AND CONTINGENT LIABILITIES Commitments At December 31, 2012, commitments outstanding for the purchase of property, plant and equipment...

  • Page 87
    ... 31, 2012 were not significant. Canon also issues contractual product warranties under which it generally guarantees the performance of products delivered and services rendered for a certain period or term. Changes in accrued product warranty cost for the years ended December 31, 2012 and 2011 are...

  • Page 88
    ... discounted using current market borrowing rates for similar debt instruments of comparable maturity. The levels are more fully described in Note 21. Foreign exchange contracts The fair values of foreign exchange contracts are measured based on the market price obtained from financial institutions...

  • Page 89
    ... the reporting entity's own assumptions about the assumptions that market participants would use in establishing a price. Assets...2012: Assets: Cash and cash equivalents Available-for-sale (current): Corporate bonds Available-for-sale (noncurrent): Government bonds Corporate bonds Fund trusts Equity...

  • Page 90
    ... of U.S. dollars Strategy Business Units Management System FINANCIAL SECTION Level 1 Level 2 Level 3 Total 2012: Assets: Cash and cash equivalents Available-for-sale (current): Corporate bonds Available-for-sale (noncurrent): Government bonds Corporate bonds Fund trusts Equity securities...

  • Page 91
    ... by Canon's management to evaluate results and allocate resources. The primary products included in each segment are as follows: Office Business Unit: Office MFDs / Office copying machines/ Personal-use copying machines / Laser MFDs / Laser printers / Digital production printing systems / High speed...

  • Page 92
    90 Strategy Business Units Management System FINANCIAL SECTION Information about operating results and assets for each segment as of and for the years ended December 31, 2012, 2011 and 2010 is as follows: Imaging System Industry and Others Corporate and eliminations Millions of yen Office ...

  • Page 93
    ... and equipment and intangible assets measured on an accrual basis. Information by major geographic area as of and for the years ended December 31, 2012, 2011 and 2010 is as follows: Millions of yen Thousands of U.S. dollars 2012 2011 2010 2012 Net sales: Japan Americas Europe Asia and Oceania...

  • Page 94
    ..., 2012, 2011 and 2010. In addition to the disclosure requirements under U.S. GAAP, Canon discloses this information in order to provide financial statements users with useful information. Millions of yen Japan Americas Europe Asia and Oceania Corporate and eliminations Consolidated 2012: Net sales...

  • Page 95
    ... financial reporting is defined in Rule 13a-15(f) promulgated under the Securities Exchange Act of 1934, as amended, as a process designed by, or under the supervision of, the company's principal executive and principal financial officers and effected by the company's board of directors, management...

  • Page 96
    ...Strategy Business Units Management System FINANCIAL SECTION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of Canon Inc. We have audited the accompanying consolidated balance sheets of Canon Inc. and subsidiaries as of December 31, 2012 and 2011...

  • Page 97
    ...accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Canon Inc. and subsidiaries as of December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive income, equity, and cash flows for each of...

  • Page 98
    96 Strategy Business Units Management System FINANCIAL SECTION TRANSFER AND REGISTRAR'S OFFICE STOCKHOLDER INFORMATION Canon Inc. 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan Stock Exchange Listings: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo and New York stock exchanges American ...

  • Page 99
    ... Canon Hi-Tech (Thailand) Ltd. Canon Opto (Malaysia) Sdn. Bhd. Marketing & Other Canon Marketing Japan Inc. Canon System and Support Inc. Canon Software Inc. Canon IT Solutions Inc. Canon U.S.A., Inc. Canon Canada Inc. Canon Business Solutions, Inc. Canon Latin America, Inc. Canon Europa N.V. Canon...

  • Page 100
    CANON INC. 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan ©Canon Inc. 2013 PUB.BEP022 0313