Canon 2003 Annual Report Download - page 79

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77
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Carrying Estimated Carrying Estimated Carrying Estimated
Amount Fair Value Amount Fair Value Amount Fair Value
Nonderivatives:
Assets:
Marketable securities and
Investments ¥55,430 55,430 41,285 41,285 $518,037 518,037
Liabilities:
Long-term debt, including current installments (95,455) (123,700) (100,355) (132,574) (892,103) (1,156,075)
Derivatives relating to:
Forecasted intercompany
sales transactions:
Assets 347 347 808 808 3,243 3,243
Liabilities (1,093) (1,093) (622) (622) (10,215) (10,215)
Trade receivables:
Assets 3,413 3,413 3,851 3,851 31,897 31,897
Liabilities (6,604) (6,604) (2,938) (2,938) (61,720) (61,720)
Long-term debt,
including current installments:
Interest rate swaps:
Assets —— 11 ——
Liabilities (55) (55) (1,149) (1,149) (514) (514)
Limitations
Fair value estimates are made at a specific point in time, based on
relevant market information and information about the financial
instruments. These estimates are subjective in nature and involve
uncertainties and matters of significant judgment and therefore
cannot be determined with precision. Changes in assumptions
could significantly affect the estimates.
(21) Supplementary Expense Information
Thousands of
Millions of yen U.S. dollars
2003 2002 2001 2003
Research and development ¥259,140 233,669 218,616 $2,421,869
Depreciation of property, plant and equipment 168,636 158,469 147,286 1,576,037
Rent 42,131 44,195 47,558 393,748
Advertising 100,278 71,725 66,837 937,178
Exchange losses 20,311 23,468 14,801 189,822
Derivative financial instruments
The fair values of derivative financial instruments, consisting
principally of foreign exchange contracts and interest rate swaps,
all of which are used for purposes other than trading, are
estimated by obtaining quotes from brokers.
The estimated fair values of Canon’s financial instruments at
December 31, 2003 and 2002 are summarized as follows: