Canon 2013 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2013 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Strategy FINANCIAL SECTION
74 Corporate DataBusiness Segment Corporate Structure
The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities at December
31, 2013 and 2012 are presented below:
The net changes in the total valuation allowance were an
increase of ¥2,888 million ($27,505 thousand) for the year
ended December 31, 2013, and decreases of ¥1,621 million
and ¥1,519 million for the years ended December 31, 2012
and 2011, respectively.
Based upon the level of historical taxable income and pro-
jections for future taxable income over the periods which the
net deductible temporary differences are expected to reverse,
management believes it is more likely than not that Canon
will realize the benefits of these deferred tax assets, net of the
existing valuation allowance, at December 31, 2013.
At December 31, 2013, Canon had net operating losses
which can be carried forward for income tax purposes of
¥167,138 million ($1,591,790 thousand) to reduce future tax-
able income.
December 31
Millions of yen
Thousands of
U.S. dollars
2013 2012 2013
Deferred tax assets:
Inventories ¥ 12,988 ¥ 13,040 $ 123,695
Accrued business tax 4,448 4,754 42,362
Accrued pension and severance cost 59,964 86,442 571,086
Research and development—costs capitalized for tax purposes 10,978 12,658 104,552
Property, plant and equipment 26,626 28,780 253,581
Accrued expenses 37,153 36,528 353,838
Net operating losses carried forward 38,439 32,494 366,086
Other 44,482 41,366 423,638
235,078 256,062 2,238,838
Less valuation allowance (35,055) (32,167) (333,857)
Total deferred tax assets 200,023 223,895 1,904,981
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries (10,876) (8,235) (103,581)
Net unrealized gains on securities (5,740) (2,437) (54,667)
Tax deductible reserve (6,160) (6,417) (58,667)
Financing lease revenue (50,605) (41,417) (481,952)
Prepaid pension and severance cost (671) (1,073) (6,390)
Other (27,280) (27,398) (259,810)
Total deferred tax liabilities (101,332) (86,977) (965,067)
Net deferred tax assets ¥ 98,691 ¥ 136,918 $ 939,914
Millions of yen
Thousands of
U.S. dollars
Within one year ¥ 1,453 $ 13,838
After one year through five years 23,656 225,295
After five years through ten years 46,346 441,390
After ten years through twenty years 62,054 590,990
Indefinite period 33,629 320,277
Total ¥ 167,138 $ 1,591,790
Periods available to reduce future taxable income vary in each tax jurisdiction and generally range from one year to an
indefinite period as follows: