FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of ….		January		……………………………………………… ,		2018

 

		CANON INC.
		(Translation of registrant’s name into English)
		30-2, Shimomaruko 3-Chome, Ohta-ku, Tokyo 146-8501, Japan
		(Address of principal executive offices)

[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F		X		Form 40-F

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes				No		X

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-....................

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Date….		January 30, 2018						By……/s/……………Eiji Shimizu………
								(Signature)*
								Eiji Shimizu                      General Manager                      Consolidated Accounting Div.                      Canon Inc.

*Print the name and title of the signing officer under his signature.

The following materials are included.

 

1.	RESULTS FOR THE FOURTH QUARTER AND THE FISCAL YEAR ENDED DECEMBER 31, 2017

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RESULTS FOR THE FOURTH QUARTER

AND THE FISCAL YEAR ENDED DECEMBER 31, 2017

January 30, 2018

CONSOLIDATED RESULTS

							(Millions of yen, thousands of U.S. dollars, except per share amounts)
			Actual																				Projected
		Year ended December 31, 2017				Year ended December 31, 2016				Change(%)								Year ended December 31, 2017				Year ending December 31, 2018				Change(%)
Net sales		¥	4,080,015			¥	3,401,487				+				19.9			$	36,106,327			¥	4,300,000				+				5.4
Operating profit			331,479				228,866				+				44.8				2,933,442				420,000				+				26.7
Income before income taxes			353,884				244,651				+				44.6				3,131,717				420,000				+				18.7
Net income attributable                          to Canon Inc.		¥	241,923			¥	150,650				+				60.6			$	2,140,912			¥	280,000				+				15.7
Net income attributable to Canon Inc. shareholders per share:
- Basic		¥	222.88			¥	137.95				+				61.6			$	1.97			¥	259.32				+				16.3
- Diluted			222.88				137.95				+				61.6				1.97				-								-
		Actual
		As of December 31, 2017				As of December 31, 2016				Change(%)								As of December 31, 2017
Total assets		¥	5,198,291			¥	5,138,529				+				1.2			$	46,002,575
Canon Inc. shareholders’ equity		¥	2,870,630			¥	2,783,129				+				3.1			$	25,403,805

 

Notes:		1.		Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.
		2.		U.S. dollar amounts are translated from yen at the rate of JPY 113= U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 29, 2017, solely for the convenience of the reader.

 

Canon Inc.		30-2, Shimomaruko 3-chome, Ohta-ku,
Headquarter office		Tokyo 146-8501, Japan
		Phone: +81-3-3758-2111

 

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I. Operating Results and Financial Conditions

2017 in Review

Looking back at the global economy in 2017, the U.S. economy continued to grow steadily as employment conditions and corporate earnings improved. In Europe, the economy remained stable as unemployment rates decreased and capital investment increased due to strong exports. The Chinese economy rallied due to public investments while the economies of emerging countries realized moderate recovery as the economies of Russia and Brazil bottomed out owing to the rising price of natural resources. In Japan, corporate earnings improved and consumer spending showed signs of recovery. As a result, the global economy overall continued to recover more robustly than was expected at the beginning of the year.

As for the markets in which Canon operates amid these conditions, demand for office multifunction devices (MFDs) and laser printers remained at around the same level as the previous year. While demand for cameras shrank moderately, demand for inkjet printers increased from the previous year with the economies recovering in emerging countries. Additionally, there was solid demand for medical equipment, mainly outside of Japan. Within the Industry and Others sector, demand for flat panel display (FPD) lithography equipment and manufacturing equipment for organic LED (OLED) panels enjoyed strong growth and the demand for network camera also enjoyed solid growth.

The average value of the yen during the year was ¥112.13 against the U.S. dollar, a year-on-year depreciation of approximately ¥4, and ¥126.69 against the euro, a year-on-year depreciation of approximately ¥6.

During 2017, unit sales of office MFDs increased compared with the previous year due to the expanded sales of color models. Additionally, unit sales of laser printers increased compared with the previous year, supported by the steady sales of newly launched models, as demand recovered in emerging countries. While unit sales of interchangeable-lens digital cameras decreased compared with the previous year, unit sales of digital compact cameras remained at around the same level amid the shrinking market, owing to increased sales of high-value-added models. Looking at inkjet printers, unit sales increased compared with the previous year, thanks to such factors as strong sales of newly launched home-use models and refillable ink tank models for emerging countries. Additionally, sales of semiconductor lithography equipment, FPD lithography equipment, and manufacturing equipment for OLED panels exceeded those of the previous year, thanks to favorable market conditions, and sales of network cameras increased steadily in response to the growing market. Under these conditions, along with the impact of acquiring Toshiba Medical Systems Corporation (TMSC) (Canon Medical Systems Corporation as of January 4^th, 2018), net sales for the year increased by 19.9% year on year to ¥4,080.0 billion. Although the gross profit ratio decreased by 0.4 points to 48.8% due to the effect of the product mix, gross profit increased by 19.0% year on year to ¥1,992.7 billion, thanks to such factors as the increase in sales and continuous cost reduction efforts. Operating expenses increased by 15.0% year on year, mainly due to impairment loss on goodwill of commercial printing business in Office Business Unit and the impact of acquiring TMSC. As a result, operating profit increased by 44.8% to ¥331.5 billion. Adjusted operating profit, which excludes impairment losses on goodwill from operating profit as they are considered nonrecurring charges, increased by 59.7% to ¥365.4 billion. Other income (deductions) increased by ¥6.6 billion mainly due to gain on securities contributed to retirement benefit trust and foreign currency exchange losses while income before income taxes increased by 44.6% year on year to ¥353.9 billion and net income attributable to Canon Inc. increased by 60.6% to ¥241.9 billion.

Basic net income attributable to Canon Inc. shareholders per share for the year was ¥222.88, a year-on-year increase of ¥84.93.

 

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Results by Segment

Looking at Canon’s full-year performance by business unit, beginning with the Office Business Unit, unit sales of office MFDs increased from the previous year and achieved higher growth than the market average, supported by steady sales of next-generation color models designed to strengthen the product lineup such as the newly launched color A3 (12”x18”) imageRUNNER ADVANCE C3500 series for small- and medium-size offices. Among high-speed continuous-feed printers, unit sales of the Océ-produced VarioPrint i300, a high-speed sheet-fed color inkjet press that offers superior low-running-cost performance, increased. As for laser printers, sales of both hardware and consumables increased from the previous year, supported by steady sales of new models that achieve low power consumption and compact body designs. These factors resulted in total sales for the business unit of ¥1,865.9 billion, a year-on-year increase of 3.2%, while operating profit totaled ¥180.6 billion, a year-on-year increase of 6.6%. Adjusted operating profit, which excludes impairment losses on goodwill from operating profit, increased by 26.6% to ¥214.6 billion.

Within the Imaging System Business Unit, while the pace of decline in demand for interchangeable-lens digital cameras is gradually decelerating, the sales of the advanced-amateur-models —including the EOS 6D Mark II—enjoyed solid demand, allowing Canon to maintain the top share, mainly in the United States, Europe, and Japan. As for compact-system cameras, the advanced-amateur-model EOS M6 and the entry-level EOS M100 enjoyed strong demand. As for digital compact cameras, amid the shrinking market, unit sales remained at the same level as the previous year, supported by the increased sales of such high-value-added models as the newly launched G9 X Mark II—part of the high-image-quality PowerShot G-series lineup. As for inkjet printers, the newly designed home-use TS-series, refillable ink tank models targeting emerging countries and the imagePROGRAF PRO series of large format inkjet printer targeting the professional photo and graphic art markets enjoyed strong demand, resulting in unit sales increasing from the previous year. As a result, sales for the business unit increased by 3.7% year on year to ¥1,136.2 billion, while operating profit totaled ¥175.9 billion, a year-on-year increase of 21.8%.

Within the Medical System Business Unit, TMSC’s computed tomography (CT) products increased the sales and maintained the top share in the Japanese market thanks to the solid sales of the newly launched Aquilion Precision CT scanner, which delivers the industry’s highest level of high-resolution imaging. As for diagnostic ultrasound systems, sale of the Aplio i-series, which delivers proprietary high-resolution imaging technology, remained firm. As a result, sales for the business unit totaled ¥436.2 billion, while operating profit totaled ¥22.5 billion.

In the Industry and Others Business Unit, unit sales of semiconductor lithography equipment increased from the previous year as a result of increasing demand for memory devices used in data centers. Additionally, sales of FPD lithography equipment and manufacturing equipment for OLED panels increased significantly in response to continued growing demand for high-definition OLED displays used in mobile devices. As for network cameras, amid increasing market demand, Axis enjoyed solid sales, resulting in a considerable sales increase compared with the previous year. Consequently, sales for the business unit increased by 25.2% year on year to ¥731.7 billion, while operating profit grew by ¥49.3 billion from the previous year to ¥56.8 billion.

Cash Flow

During 2017, cash flow from operating activities totaled ¥590.6 billion, an increase of ¥90.3 billion compared with the previous year, mainly owing to improvements in profitability. Cash flow from investing activities decreased by ¥672.1 billion year on year to ¥165.0 billion due to the payment made in the previous year for the right to acquire all of the shares of TMSC. Accordingly, free cash flow totaled ¥425.5 billion, an increase of ¥762.4 billion compared with the corresponding year-ago period.

Cash flow from financing activities recorded an outlay of ¥340.5 billion, mainly owing to the dividend payout, the repurchasing of treasury stock and the repayment of long-term debt.

Owing to these factors, as well as the impact of foreign currency translation adjustments, cash and cash equivalents increased by ¥91.6 billion to ¥721.8 billion from the end of the previous year.

 

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Outlook

As for the outlook for 2018, the U.S. economy is expected to recover stronger as corporate earnings and capital investments steadily improve thanks to tax reform. The European economy is expected to recover slowly due to increasing uncertainty surrounding the U.K.’s decision to leave the EU, although consumer spending is expected to remain stable due to solid employment conditions. Looking at China, the economy is expected to stabilize through public investments and solid consumer spending. Emerging economies, including Southeast Asia, are expected to continue to grow due to strong exports. With regard to the Japanese economy, the outlook indicates a trend of gradual recovery supported by improved employment conditions and consumer spending. Overall, the global economy is expected to continue achieving moderate growth, despite such concerns as increasing geopolitical risks.

In the businesses in which Canon is involved, for office MFDs, demand for color models is expected to grow moderately and make up for the contraction of the market for monochrome models, leading to the same level of demand overall compared with the previous year. Looking at the laser printer market, although the demand in developed countries is expected to decrease, demand in emerging countries continues to recover, resulting in overall demand remaining at the same level as the previous year. For interchangeable-lens digital cameras, demand is expected to decrease moderately. Projections for digital compact cameras indicate continued market contraction, centered mainly on low-priced models, despite solid demand for high-value-added models. With regard to inkjet printers, demand is expected to continue to exceed that of the previous year. As for the medical equipment market, demand is expected to remain firm in response to replacement demand for medical equipment in developed countries, increasing medical needs associated with population growth in emerging countries and changes in the prevalence of diseases. Looking at industrial equipment, within the semiconductor lithography equipment segment, the market is expected to enjoy healthy growth due to the increase in demand for memory devices used in data centers and mobile devices. The outlook for FPD lithography equipment and OLED panel manufacturing equipment points to continued active capital investment by panel manufacturers, which is expected to increase demand. The network camera market is also expected to grow in response to the increasing use of network cameras for diverse applications in such areas as marketing support in addition to disaster monitoring and crime prevention applications.

With regard to currency exchange rates for the year, on which Canon’s performance outlook is based, Canon anticipates exchange rates of ¥110 to the U.S. dollar and ¥130 to the euro, representing appreciation of approximately ¥2 against the U.S. dollar and depreciation of approximately ¥3 against the euro compared with the annual average rates of the previous year.

Upon taking into consideration the current economic forecast, Canon projects full-year consolidated net sales in 2018 of ¥4,300.0 billion, a year-on-year increase of 5.4%; operating profit of ¥420.0 billion, a year-on-year increase of 26.7%; income before income taxes of ¥420.0 billion, a year-on-year increase of 18.7%; and net income attributable to Canon Inc. of ¥280.0 billion, a year-on-year increase of 15.7%.

 

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II. Basic Concept Regarding the Selection of Accounting Standards

Canon is listed on the New York Stock Exchange and, since registering its American Depositary Receipts on the OTC (over-the-counter) market in 1969, has prepared its consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) over the long term.

Canon has continued to adopt U.S. GAAP in order to maintain the continuity of financial statements from the past and to maintain international comparability.

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

III. Financial Statements

1. CONSOLIDATED BALANCE SHEETS

 

		Millions of yen
		As of December 31, 2017				As of December 31, 2016				Change
ASSETS
Current assets:
Cash and cash equivalents			721,814				630,193				91,621
Short-term investments			1,965				3,206				(1,241)
Trade receivables, net			650,872				641,458				9,414
Inventories			570,033				560,736				9,297
Prepaid expenses and other current assets			287,965				264,155				23,810
Total current assets			2,232,649				2,099,748				132,901
Noncurrent receivables			35,444				29,297				6,147
Investments			48,320				73,680				(25,360)
Property, plant and equipment, net			1,126,620				1,194,976				(68,356)
Intangible assets, net			420,972				446,268				(25,296)
Goodwill			936,722				936,424				298
Other assets			397,564				358,136				39,428
Total assets			5,198,291				5,138,529				59,762
LIABILITIES AND EQUITY
Current liabilities:
Short-term loans and current portion of long-term debt			39,328				1,850				37,478
Trade payables			380,654				372,269				8,385
Accrued income taxes			77,501				30,514				46,987
Accrued expenses			330,188				304,901				25,287
Other current liabilities			281,809				273,835				7,974
Total current liabilities			1,109,480				983,369				126,111
Long-term debt, excluding current installments			493,238				611,289				(118,051)
Accrued pension and severance cost			365,582				407,200				(41,618)
Other noncurrent liabilities			133,816				142,049				(8,233)
Total liabilities			2,102,116				2,143,907				(41,791)
Equity:
Canon Inc. shareholders’ equity:
Common stock			174,762				174,762				-
Additional paid-in capital			401,386				401,385				1
Legal reserve			66,879				66,558				321
Retained earnings			3,429,312				3,350,728				78,584
Accumulated other comprehensive income (loss)			(143,228)				(199,881)				56,653
Treasury stock, at cost			(1,058,481)				(1,010,423)				(48,058)
Total Canon Inc. shareholders’ equity			2,870,630				2,783,129				87,501
Noncontrolling interests			225,545				211,493				14,052
Total equity			3,096,175				2,994,622				101,553
Total liabilities and equity			5,198,291				5,138,529				59,762
		Millions of yen
		As of December 31, 2017				As of December 31, 2016
Notes:
1. Allowance for doubtful receivables			13,378				11,075
2. Accumulated depreciation			2,638,055				2,578,342
3. Accumulated other comprehensive income (loss):
Foreign currency translation adjustments			30,208				(13,960)
Net unrealized gains and losses on securities			5,484				15,251
Net gains and losses on derivative instruments			(180)				(2,742)
Pension liability adjustments			(178,740)				(198,430)

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

2. CONSOLIDATED STATEMENTS OF INCOME AND

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

Consolidated statements of income
Results for the fourth quarter		Millions of yen
		Three months ended December 31, 2017				Three months ended December 31, 2016				Change(%)
Net sales			1,120,291				965,173				+				16.1
Cost of sales			573,730				505,066
Gross profit			546,561				460,107				+				18.8
Operating expenses:
Selling, general and administrative expenses			346,804				305,987
Research and development expenses			86,809				73,952
Impairment losses on goodwill			33,912				-
			467,525				379,939
Operating profit			79,036				80,168				-				1.4
Other income (deductions):
Interest and dividend income			1,478				1,178
Interest expense			(236	)			(219	)
Other, net			8,239				(8,492	)
			9,481				(7,533	)
Income before income taxes			88,517				72,635				+				21.9
Income taxes			28,776				22,751
Consolidated net income			59,741				49,884
Less: Net income attributable to noncontrolling interests			5,138				5,054
Net income attributable to Canon Inc.			54,603				44,830				+				21.8
Note
Canon includes “Adjusted operating profit,” which is a non-U.S. GAAP measure, in its disclosure. We believe this measure helps investors better understand Canon’s recurring business performance. A reconciliation from Operating profit to Adjusted operating profit is set forth on the following table.
Reconciliation from Operating profit to Adjusted operating profit
		Millions of yen
		Three months ended December 31, 2017				Three months ended December 31, 2016
Operating profit			79,036				80,168
Impairment losses on goodwill			33,912				-
Adjusted operating profit			112,948				80,168

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

 

- 9 -

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

3.  DETAILS OF SALES

 

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

4. CONSOLIDATED STATEMENTS OF EQUITY

Millions of yen

		Common Stock				Additional paid-in capital				Legal reserve				Retained earnings				Accumulated other comprehensive income (loss)				Treasury stock				Total Canon Inc. shareholders’ equity				Noncontrolling interests				Total equity
Balance at December 31, 2015			174,762				401,358				65,289				3,365,158				(29,742	)			(1,010,410	)			2,966,415				218,048			3,184,463
Equity transactions with noncontrolling interests and other							27												258								285				(5,270	)		(4,985)
Dividends to Canon Inc. shareholders															(163,810	)											(163,810	)						(163,810)
Dividends to noncontrolling interests																															(4,077	)		(4,077)
Acquisition of subsidiaries																															1,047			1,047
Transfers to legal reserve											1,269				(1,269	)											-							-
Comprehensive income:
Net income															150,650												150,650				11,320			161,970
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments																			(101,257	)							(101,257	)			(6,409	)		(107,666)
Net unrealized gains and losses on securities																			1,196								1,196				(199	)		997
Net gains and losses on derivative instruments																			(2,924	)							(2,924	)			(24	)		(2,948)
Pension liability adjustments																			(67,412	)							(67,412	)			(2,943	)		(70,355)
Total comprehensive income (loss)																											(19,747	)			1,745			(18,002)
Repurchases and reissuance of treasury stock															(1	)							(13	)			(14	)						(14)
Balance at December 31, 2016			174,762				401,385				66,558				3,350,728				(199,881	)			(1,010,423)				2,783,129				211,493			2,994,622
Equity transactions with noncontrolling interests and other							1																				1				(1	)		-
Dividends to Canon Inc. shareholders															(162,887	)											(162,887	)						(162,887)
Dividends to noncontrolling interests																															(4,814	)		(4,814)
Acquisition of subsidiaries																															60			60
Transfers to legal reserve											321				(321	)											-							-
Comprehensive income:
Net income															241,923												241,923				13,937			255,860
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments																			44,168								44,168				2,922			47,090
Net unrealized gains and losses on securities																			(9,767	)							(9,767	)			405			(9,362)
Net gains and losses on derivative instruments																			2,562								2,562				26			2,588
Pension liability adjustments																			19,690								19,690				1,517			21,207
Total comprehensive income (loss)																											298,576				18,807			317,383
Repurchases of treasury stock																							(50,036	)			(50,036	)						(50,036)
Reissuance of treasury stock															(131	)							1,978				1,847							1,847
Balance at December 31, 2017			174,762				401,386				66,879				3,429,312				(143,228	)			(1,058,481	)			2,870,630				225,545			3,096,175

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

5. CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		Millions of yen
		Year ended     December 31, 2017				Year ended     December 31, 2016
Cash flows from operating activities:
Consolidated net income			255,860				161,970
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization			261,881				250,096
Loss on disposal of fixed assets			6,935				5,203
Impairment losses on goodwill			33,912				-
Gain on securities contributed to retirement benefit trust			(17,836)				-
Deferred income taxes			(17,603)				7,188
(Increase) decrease in trade receivables			3,563				(4,155)
Decrease in inventories			2,967				6,156
Increase in trade payables			4,951				56,844
Increase (decrease) in accrued income taxes			46,296				(16,456)
Increase (decrease) in accrued expenses			18,503				(5,256)
Increase in accrued (prepaid) pension and severance cost			522				5,489
Other, net			(9,394)				33,204
Net cash provided by operating activities			590,557				500,283
Cash flows from investing activities:
Purchases of fixed assets			(189,484)				(206,971)
Proceeds from sale of fixed assets			26,444				6,177
Purchases of available-for-sale securities			(2,220)				(84)
Proceeds from sale and maturity of available-for-sale securities			970				1,181
Decrease in time deposits, net			3,373				15,414
Acquisitions of businesses, net of cash acquired			(6,557)				(649,570)
Purchases of other investments			(928)				(4,460)
Other, net			3,392				1,188
Net cash used in investing activities			(165,010)				(837,125)
Cash flows from financing activities:
Proceeds from issuance of long-term debt			1,570				610,552
Repayments of long-term debt			(126,578)				(856)
Increase (decrease) in short-term loans, net			5,628				(80,580)
Purchases of noncontrolling interests			-				(4,993)
Dividends paid			(162,887)				(163,810)
Repurchases and reissuance of treasury stock			(50,034)				(14)
Other, net			(8,163)				(4,607)
Net cash provided by (used in) financing activities			(340,464)				355,692
Effect of exchange rate changes on cash and cash equivalents			6,538				(22,270)
Net change in cash and cash equivalents			91,621				(3,420)
Cash and cash equivalents at beginning of year			630,193				633,613
Cash and cash equivalents at end of year			721,814				630,193

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

6. NOTE FOR GOING CONCERN ASSUMPTION

      Not applicable.

7. SEGMENT INFORMATION

  SEGMENT INFORMATION BY BUSINESS UNIT

 

*Canon newly established “Medical System” Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Operating results for the three months ended December 31, 2016 were not restated since they were not material.

*Operating results pertaining to TMSC, a company acquired in December 2016, are included in “Medical System” for the fourth quarter of 2017. Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in “Corporate and Eliminations”.

Reconciliation from Operating profit to Adjusted operating profit

 

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

 

 

*Canon newly established “Medical System” Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included in Industry and Others Business Unit have been reclassified. Total assets as of December 31, 2016 have been restated to comply with this change. Operating results for the year ended December 31, 2016, however, were not restated since they were not material.

*Operating results pertaining to TMSC, a company acquired in December 2016, are included in “Medical System” for the year ended December 31, 2017. Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in “Corporate and Eliminations”.

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

Reconciliation from Operating profit to Adjusted operating profit

 

8. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Canon’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles.

Recently Issued Accounting Guidance

In January 2017, the Financial Accounting Standards Board issued an amendment which eliminates the second step from the impairment test of goodwill. This amendment requires the entity to recognize an impairment charge for the amount by which the carrying amount exceeds the fair value of reporting unit; however, the impairment charge is limited to the amount of goodwill allocated to that reporting unit. Canon early adopted this amended guidance from the impairment test performed after January 1, 2017.

9. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) NET INCOME ATTRIBUTABLE TO CANON INC. SHAREHOLDERS PER SHARE

 

(2) SUBSEQUENT EVENT

 

There

is no significant subsequent event.

 

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CANON INC. AND SUBSIDIARIES

CONSOLIDATED

 

 

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NON-CONSOLIDATED

(Current Titles are Shown in the Parentheses)

Effective Date: March 29, 2018

Audit & Supervisory Board Members

(1) Candidates for new Audit & Supervisory Board Member to be appointed

 

Masaaki Nakamura		(Managing Executive Officer, Group Executive of Public Affairs Headquarters)
Koichi Kashimoto		(Senior General Manager of The Dai-ichi Life Insurance Company, Limited. / Chief of Dai-ichi Life Holdings, Inc.)

(2) Audit & Supervisory Board Members to be retired

 

Makoto Araki

Kuniyoshi Kitamura

 

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NON-CONSOLIDATED

(Current Titles are Shown in the Parentheses)

Executive Officers

(1) New Executive Officers to be appointed

Effective date: April 1, 2018

 

Katsuyoshi Soma		(President of Fukushima Canon Inc.)
Masaki Omori		(Senior General Manager of Production Engineering Research Laboratory)

(2) Executive Officers to be retired

Effective date: March 31, 2018

 

Rokus van Iperen		(Senior Managing Executive Officer, President & CEO of Canon Europe Ltd. & Canon Europa N.V.)
Yasuhiro Tani		(Senior Managing Executive Officer, Group Executive of Digital System Technology Development Headquarters)
Hiroyuki Suematsu		(Managing Executive Officer, Group Executive of Corporate Planning Development Headquarters)

Effective date: March 29, 2018

 

Masaaki Nakamura		(Managing Executive Officer, Group Executive of Public Affairs Headquarters)

 

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