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9
4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
Th
ousa
n
ds
o
f
U
.
S
.
do
ll
a
r
s
Leve
l
1 Leve
l
2
L
eve
l
3
T
ota
l
Assets:
Cash and cash e
q
uivalents $ — $ 2,132,198 $ — $ 2,132,198
Inv
est
m
e
n
ts
155,033 10,780 16,659 182,472
Derivative
s
— 115,560 — 115,560
Tota
l
assets
$ 155,033 $ 2,258,538 $ 16,659 $ 2,430,230
Lia
b
i
l
ities:
Derivative
s
$ — $ 7,451 $ — $ 7,451
Tota
l li
ab
ili
t
i
es
$ — $ 7,451 $ — $ 7,451
Level 1 investments are comprised principally of equity
securities, which are valued usin
g
an unad
j
usted quoted market
price in active markets with su
ffi
cient volume and
f
requenc
y
o
f
transactions. Leve
l
2 cas
h
an
d
cas
h
equiva
l
ents are va
l
ue
d
usin
g
q
uoted
p
rices for identical assets in markets that are not active.
Level 3 investments are comprised o
f
corporate debt securities,
which are valued based on unobservable inputs as the market
f
o
r
t
h
e
assets
w
as
n
ot
act
iv
e
at
t
h
e
m
easu
r
e
m
e
n
t
date.
Derivative fi nancial instruments are comprised of foreign
exchange contracts. Level 2 derivatives are valued using quotes
obtained
f
rom counterparties or third parties, which are periodi-
ca
lly
va
l
i
d
ate
d
by
pricin
g
mo
d
e
l
s usin
g
o
b
serva
bl
e mar
k
et inputs,
such as forei
g
n currenc
y
exchan
g
e rates and interest rates.
The following table presents the changes in Level 3 assets
measured on a recurring basis, consisting solely o
f
corporate
debt securities,
f
or the
y
ear ended December 31, 2008
.
Millions of yen
Th
ousa
n
ds
o
f
U.S. dollar
s
Balance at beginning o
f
yea
r
¥ 1,889 $ 20,758
T
otal gains or losses (realized or unrealized)
:
Included in earnin
gs
(559) (6,143)
Included in other comprehensive income
(
loss
)
(8) (88)
P
urchases
,
issuances
,
and settlement
s
194 2,132
Balance at end of
y
ea
r
¥ 1,516 $ 16,659
All gains and losses included in earnings are related to
corporate debt securities still held at December 31, 2008, and are
reported in “Other, net” in the consolidated statements o
f
income
.
A
ssets
a
n
d
Li
ab
i
l
i
t
i
es
M
easu
r
ed
at
F
a
ir V
alue
on a Nonrecurr
i
n
g
Bas
is
Non-marketable equit
y
securities with a carr
y
in
g
amount o
f
¥513 million (
$
5,638 thousand) were written down to their fair
value of ¥112 million ($1,231 thousand), resulting in an other
-
than-temporary impairment charge of ¥401 million ($4,407
thousand), which was included in earnin
g
s
f
or the
y
ear ended
December 31, 2008. All impaired non-marketable equit
y
securities
were classifi ed as Level 3 instruments
,
as Canon uses unobservable
in
p
uts to va
l
ue t
h
ese investments
.