Canon 2013 Annual Report Download - page 45

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FINANCIAL OVERVIEW 43
Payments due by period
Millions of yen
Total
Less than 1 year 1-3 years 3-5 years More than 5 years
Contractual obiligations:
Long-term debt:
Capital lease obligations ¥ 2,482 ¥ 1,213 ¥ 1,098 ¥ 171 ¥ —
Other long-term debt 211 32 101 48 30
Operating lease obligations 96,064 28,523 37,915 16,446 13,180
Purchase commitments for:
Property, plant and equipment 26,218 26,218 — — —
Parts and raw materials 73,914 73,914 — — —
Other long-term liabilities:
Contribution to defined benefit pension plans 20,649 20,649 — — —
Total ¥ 219,538 ¥150,549 ¥39,114 ¥16,665 ¥13,210
Note: The table does not include provisions for uncertain tax positions and related accrued interest and penalties, as the specific timing of future payments related
to these obligations cannot be projected with reasonable certainty. See Note 12, Income Taxes in the Notes to Consolidated Financial Statements for further
details. Contribution to defined benefit pension plans reflects the expected amount only for the next fiscal year, since contributions beyond the next fiscal
year are not currently determinable due to uncertainties related to changes in actuarial assumptions, returns on plan assets and changes to plan membership.
Working capital in 2013 increased by ¥199,814 million
(U.S.$1,903 million), to ¥1,437,635 million (U.S.$13,692
million), compared with ¥1,237,821 million in 2012 and
¥1,259,457 million in 2011. Canon believes its working capi-
tal will be sufficient for its requirements for the foreseeable
future. Canon’s capital requirements are primarily depen-
dent on management’s business plans regarding the levels
and timing of purchases of fixed assets and investments. The
working capital ratio (ratio of current assets to current liabil-
ities) for 2013 was 2.69 compared to 2.47 for 2012 and to 2.41
for 2011.
Return on assets (net income attributable to Canon Inc.
divided by the average of total assets) was 5.6% in 2013, com-
pared to 5.7% in 2012 and 6.3% in 2011.
Return on Canon Inc. stockholders’ equity (net income
attributable to Canon Inc. divided by the average of total
Canon Inc. stockholders’ equity) was 8.4% in 2013 compared
with 8.7% in 2012 and 9.6% in 2011.
The debt to total assets ratio was 0.1%, 0.1% and 0.3% as of
December 31, 2013, 2012 and 2011, respectively. Canon had
short-term loans and long-term debt of ¥2,747 million (U.S.$26
million) as of December 31, 2013, ¥3,983 million as of December
31, 2012 and ¥11,711 million as of December 31, 2011.
OFF-BALANCE SHEET ARRANGEMENTS
As part of its ongoing business, Canon does not participate
in transactions that generate relationships with unconsol-
idated entities or financial partnerships, such as entities
often referred to as structured finance or special purpose
entities established for the purpose of facilitating off-
balance sheet arrangements or other contractually narrow
or limited purposes.
Canon provides guarantees for bank loans of its employ-
ees, affiliates and other companies. Canon will have to per-
form under a guarantee if the borrower defaults on a payment
within the contract periods of 1 year to 30 years in the case of
employees with housing loans, and 1 year to 10 years in the case
of affiliates and other companies. The maximum amount of
undiscounted payments Canon would have had to make in the
event of default by all borrowers was ¥12,315 million (U.S.$117
million) at December 31, 2013. The carrying amounts of the lia-
bilities recognized for Canon’s obligations as a guarantor under
those guarantees at December 31, 2013 were insignificant.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
The following summarizes Canon’s contractual obligations at December 31, 2013.
Payments due by period
Thousands of U.S. dollars
Total
Less than 1 year 1-3 years 3-5 years More than 5 years
Contractual obiligations:
Long-term debt:
Capital lease obligations $ 23,637 $ 11,552 $ 10,457 $ 1,628 $ —
Other long-term debt 2,010 305 962 458 285
Operating lease obligations 914,895 271,648 361,096 156,628 125,523
Purchase commitments for:
Property, plant and equipment 249,695 249,695 — — —
Parts and raw materials 703,943 703,943 — — —
Other long-term liabilities:
Contribution to defined benefit pension plans 196,657 196,657 — — —
Total $2,090,837 $1,433,800 $ 372,515 $ 158,714 $ 125,808