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Strategy FINANCIAL SECTION
62 Corporate DataBusiness Segment Corporate Structure
7. FINANCE RECEIVABLES AND OPERATING LEASES
Finance receivables represent financing leases which con-
sist of sales-type leases and direct-financing leases resulting
from the sales of Canon’s and complementary third-party
products primarily in foreign countries. These receivables
typically have terms ranging from 1 year to 6 years.
The activity in the allowance for credit losses is as follows:
December 31
Millions of yen
Thousands of
U.S. dollars
2013 2012 2013
Total minimum lease payments receivable ¥ 278,621 ¥ 231,221 $ 2,653,533
Unguaranteed residual values 9,566 8,863 91,105
Executory costs (2,184) (2,598) (20,800)
Unearned income (29,875) (27,521) (284,524)
256,128 209,965 2,439,314
Less allowance for credit losses (7,323) (6,908) (69,743)
248,805 203,057 2,369,571
Less current portion (91,025) (74,168) (866,904)
¥ 157,780 ¥ 128,889 $ 1,502,667
Years ended December 31
Millions of yen
Thousands of
U.S. dollars
2013 2012 2013
Balance at beginning of year ¥ 6,908 ¥ 7,039 $ 65,790
Charge-offs (1,278) (1,304) (12,171)
Provision 212 1,922 2,019
Other 1,481 (749) 14,105
Balance at end of year ¥ 7,323 ¥ 6,908 $ 69,743
The components of the finance receivables, which are included in prepaid expenses and other current assets, and other
assets in the accompanying consolidated balance sheets, are as follows: