Canon 2006 Annual Report Download - page 84

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82
(17) Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
are as follows:
Year ended December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2004 2006
Foreign currency translation adjustments:
Balance at beginning of year ¥(25,772) (79,751) (83,801) $(216,571)
Adjustments for the year 48,630 53,979 4,050 408,655
Balance at end of year 22,858 (25,772) (79,751) 192,084
Net unrealized gains and losses on securities:
Balance at beginning of year 6,073 7,470 6,784 51,034
Adjustments for the year 1,992 (1,397) 686 16,739
Balance at end of year 8,065 6,073 7,470 67,773
Net gains and losses on derivative instruments:
Balance at beginning of year (1,174) (693) (297) (9,866)
Adjustments for the year (489) (481) (396) (4,109)
Balance at end of year (1,663) (1,174) (693) (13,975)
Minimum pension liability adjustments:
Balance at beginning of year (7,339) (28,338) (65,961) (61,672)
Adjustments for the year (3,575) 20,999 37,623 (30,042)
Adjustment to initially apply SFAS 158 10,914 — — 91,714
Balance at end of year —(7,339) (28,338) —
Pension liability adjustments:
Adjustment to initially apply SFAS 158 (26,542) ——(223,042)
Balance at end of year (26,542) — — (223,042)
Total accumulated other comprehensive income (loss):
Balance at beginning of year (28,212) (101,312) (143,275) (237,075)
Adjustments for the year 46,558 73,100 41,963 391,243
Adjustment to initially apply SFAS 158 (15,628) ——(131,328)
Balance at end of year ¥2,718 (28,212) (101,312) $22,840
The Corporation Law of Japan provides that an amount equal
to 10% of distributions from retained earnings paid by the
Company and its Japanese subsidiaries be appropriated as a
legal reserve. No further appropriations are required when the
total amount of the additional paid-in capital and the legal
reserve equals 25% of their respective stated capital. The Cor-
poration Law of Japan also provides that additional paid-in cap-
ital and legal reserve are available for appropriations by the
resolution of the stockholders. Certain foreign subsidiaries are
also required to appropriate their earnings to legal reserves
under the laws of the respective countries.
Cash dividends and appropriations to the legal reserve
charged to retained earnings for the years ended December
31, 2006, 2005 and 2004 represent dividends paid out during
those years and the related appropriations to the legal
(16) Legal Reserve and Retained Earnings
reserve. Retained earnings at December 31, 2006 do not reflect
current year-end dividends in the amount of ¥66,583 million
($559,521 thousand) which will be payable in March 2007
upon approval by the stockholders.
The amount available for dividends under the Corporation
Law of Japan is based on the amount recorded in the
Company’s nonconsolidated books of account in accordance
with financial accounting standards of Japan. Such amount
was ¥1,494,372 million ($12,557,748 thousand) at December
31, 2006.
Retained earnings at December 31, 2006 included Canon’s
equity in undistributed earnings of affiliated companies
accounted for by the equity method in the amount of ¥13,493
million ($113,387 thousand).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
CANON INC. AND SUBSIDIARIES