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CANON ANNUAL REPORT 2015
80
Millions of yen Level 1 Level 2 Level 3 Total
2014: Assets:
Cash and cash equivalents ¥ — ¥ 139,240 ¥ — ¥ 139,240
Available-for-sale (noncurrent):
Government bonds 325 — — 325
Corporate bonds — 162 474 636
Fund trusts 12 72 — 84
Equity securities 40,653 — — 40,653
Derivatives — 265 — 265
Total assets ¥ 40,990 ¥ 139,739 ¥ 474 ¥ 181,203
Liabilities:
Derivatives ¥ — ¥ 11,167 ¥ — ¥ 11,167
Total liabilities ¥ — ¥ 11,167 ¥ — ¥ 11,167
Assets and liabilities measured at fair value on a nonrecurring basis
During the years ended December 31, 2015 and 2014, there were no circumstances that required any significant assets or liabilities to
be measured at fair value on a nonrecurring basis.
The following table presents the changes in Level 3 assets measured on a recurring basis, consisting primarily of corporate
bonds, for the years ended December 31, 2015 and 2014.
Level 1 investments are comprised principally of Japanese
equity securities, which are valued using an unadjusted quoted
market price in active markets with sufficient volume and fre-
quency of transactions. Level 2 cash and cash equivalents are
valued based on market approach, using quoted prices for iden-
tical assets in markets that are not active. Level 3 investments
are mainly comprised of corporate bonds, which are valued
based on cost approach, using unobservable inputs as the
market for the assets was not active at the measurement date.
Derivative financial instruments are comprised of foreign
exchange contracts. Level 2 derivatives are valued using quotes
obtained from counterparties or third parties, which are peri-
odically validated by pricing models using observable market
inputs, such as foreign currency exchange rates and interest
rates, based on market approach.
Years ended December 31 Millions of yen
2015 2014
Balance at beginning of year ¥ 474 ¥ 340
Total gains or losses (realized or unrealized):
Included in earnings — —
Included in other comprehensive income (loss) 22 (18)
Purchases, issuances, and settlements (496) 152
Balance at end of year ¥ — ¥ 474
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
21. SEGMENT INFORMATION
Canon operates its business in three segments: the Office
Business Unit, the Imaging System Business Unit, and the Industry
and Others Business Unit, which are based on the organizational
structure and information reviewed by Canon’s management to
evaluate results and allocate resources.
The primary products included in each segment are as follows:
Office Business Unit:
Office multifunction devices (MFDs) / Laser multifunction
printers / Laser printers / Digital production printing systems /
High speed continuous feed printers / Wide-format printers /
Document solutions