Canon 2008 Annual Report Download - page 88

86
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
The Cor
p
oration Law of Ja
p
an
p
rovides that an amount e
q
ual to
10% of distributions from retained earnings paid by the Company
and its Japanese subsidiaries be appropriated as a legal reserve.
No
f
urther appropriations are required when the total amount
o
f
the additional paid-in capital and the le
g
al reserve equals
25% of their res
p
ective stated ca
p
ital. The Cor
p
oration Law of
Japan also provides that additional paid-in capital and legal
reserve are available
f
or appropriations by the resolution o
f
the
stockholders. Certain
f
orei
g
n subsidiaries are also required to
appropriate their earnin
g
s to le
g
al reserves under the laws of
t
h
e res
p
ective countries
.
Cash dividends and appropriations to the legal reserve
char
g
ed to retained earnin
g
s
f
or the
y
ears ended December 31,
2008, 2007 an
d
2006 represent
d
ivi
d
en
d
s pai
d
out
d
urin
g
16. Lega
l
Reserve an
d
Retaine
d
Earning
s
those
y
ears and the related appropriations to the le
g
al reserve.
Retained earnin
g
s at December 31, 2008 do not refl ect current
year-end dividends in the amount of ¥67,897 million ($746,121
thousand
)
which will be payable in March 2009 upon approval
b
y
the stockholders
.
The amount available
f
or dividends under the Corporation
Law of Japan is based on the amount recorded in the Company’s
n
o
n
co
n
so
li
dated
boo
k
s
o
f
accou
n
t
in
acco
r
da
n
ce
wi
t
h fi n
a
n
c
i
a
l
accounting standards o
f
Japan. Such amount was ¥1,363,838
million (
$
14,987,231 thousand) at December 31, 2008
.
Retaine
d
earnin
g
s at Decem
b
er 31, 2008 inc
l
u
d
e
d
Canon’s
equity in undistributed earnings of affi liated companies accounted
for by the equity method in the amount of ¥17,745 million
(
$
195,000 thousand)
.
Chan
g
es in accumulated other comprehensive income (loss) are
as
f
o
ll
o
w
s:
17. Other Com
p
rehensive Income
(
Loss
)
Y
ea
r
s
e
n
ded
D
ece
m
be
r 3
1
Millions of
y
en
Thousands o
f
U
.
S
.
do
ll
a
r
s
2008
2007
2006
2008
Foreign currency trans
l
ation a
d
justments:
Balance at be
g
innin
g
of
y
ear ¥ 22,796 ¥
22
,
8
5
8
¥ (25,772) $ 250,505
A
djustments
f
or the yea
r
(258,764)
(
62
)
48,630 (2,843,560)
Balance at end o
f
yea
r
(235,968) 22
,
796 22
,
858 (2,593,055)
Net unrea
l
ize
d
gains an
d
l
osses on securities
:
Balance at be
g
innin
g
of
y
ear 6,287
8,06
5
6,0
7
3
69,088
A
d
j
ustments for the
y
ea
r
(5,152) (1,778) 1,
992
(56,615)
Balance at end o
f
yea
r
1,135 6,28
7
8,065 12,473
Net
g
ains and losses on derivative instruments
:
Balance at beginning o
f
year (849)
(
1,663
)
(
1,174
)
(9,329)
A
d
j
ustments for the
y
ea
r
2,342
8
14
(
489
)
25,736
Balance at end of
y
ea
r
1,493 (849) (1,663) 16,407
M
inimum pension liabilit
y
ad
j
ustments:
Balance at be
g
innin
g
o
f
y
ear — —
(
7,339
)
—
A
djustments
f
or the yea
r
—
—
(
3,575
)
—
A
d
j
ustment to initiall
y
appl
y
SFAS 15
8
—
—
1
0,9
14 —
Balance at end of
y
ea
r
— — — —
P
ension liabilit
y
ad
j
ustments
:
Balance at beginning o
f
year 6,436
(
26,542
)
— 70,725
A
djustments
f
or the yea
r
(65,916) 32
,
978
—
(724,352)
A
d
j
ustment to initiall
y
appl
y
SFAS 15
8
—
—
(26,542) —
Balance at end of
y
ea
r
(59,480)
6
,4
36
(26,542) (653,627)
T
otal accumulated other com
p
rehensive income (loss):
Balance at beginning o
f
year 34,670 2
,
718
(
28,212
)
380,989
A
djustments
f
or the yea
r
(327,490) 31
,
952 46
,
558 (3,598,791)
A
d
j
ustment to initiall
y
appl
y
SFAS 15
8
—
—
(15,628) —
Balance at end o
f
yea
r
¥ (292,820) ¥ 34,670 ¥ 2,718 $ (3,217,802)