Canon 2007 Annual Report Download - page 90

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88
17. Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss)
are as follows:
Years ended December 31 Thousands of
Millions of yen U.S. dollars
2007 2006 2005 2007
Foreign currency translation adjustments:
Balance at beginning of year ¥ 22,858 ¥(25,772) ¥ (79,751) $ 200,509
Adjustments for the year (62) 48,630 53,979 (544)
Balance at end of year 22,796 22,858 (25,772) 199,965
Net unrealized gains and losses on securities:
Balance at beginning of year 8,065 6,073 7,470 70,745
Adjustments for the year (1,778) 1,992 (1,397) (15,596)
Balance at end of year 6,287 8,065 6,073 55,149
Net gains and losses on derivative instruments:
Balance at beginning of year (1,663) (1,174) (693) (14,587)
Adjustments for the year 814 (489) (481) 7,140
Balance at end of year (849) (1,663) (1,174) (7,447)
Minimum pension liability adjustments:
Balance at beginning of year —(7,339) (28,338) —
Adjustments for the year —(3,575) 20,999 —
Adjustment to initially apply SFAS 158 —10,914 — —
Balance at end of year —— (7,339) —
Pension liability adjustments:
Balance at beginning of year (26,542) ——(232,825)
Adjustments for the year 32,978 ——289,281
Adjustment to initially apply SFAS 158 —(26,542) — —
Balance at end of year 6,436 (26,542) — 56,456
Total accumulated other comprehensive income (loss):
Balance at beginning of year 2,718 (28,212) (101,312) 23,842
Adjustments for the year 31,952 46,558 73,100 280,281
Adjustment to initially apply SFAS 158 —(15,628) — —
Balance at end of year ¥ 34,670 ¥ 2,718 ¥ (28,212) $ 304,123
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
Corporation Law of Japan also provides that additional paid-in
capital 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, 2007, 2006 and 2005 represent dividends paid out during
16. Legal Reserve and Retained Earnings
those years and the related appropriations to the legal reserve.
Retained earnings at December 31, 2007 do not reflect current
year-end dividends in the amount of ¥75,663 million ($663,711
thousand) which will be payable in March 2008 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 ¥1,383,747
million ($12,138,132 thousand) at December 31, 2007.
Retained earnings at December 31, 2007 included Canon’s
equity in undistributed earnings of affiliated companies
accounted for by the equity method in the amount of ¥20,792
million ($182,386 thousand).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES