Canon 2010 Annual Report Download - page 102
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Please find page 102 of the 2010 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.CANON ANNUAL REPORT 2010100
Fair value is the price that would be received to sell an asset or
paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly
transaction between market participants at the measurement
date. A three-level fair value hierarchy that prioritizes the inputs
used to measure fair value is as follows:
Level 1 — Inputs are quoted prices in active markets for identi-
cal assets or liabilities.
Level 2 — Inputs are quoted prices for similar assets or liabilities in
active markets, quoted prices for identical or similar
assets or liabilities in markets that are not active, inputs
other than quoted prices that are observable, and inputs
22. Fair Value Measurements
that are derived principally from or corroborated by
observable market data by correlation or other means.
Level 3 — Inputs are derived from valuation techniques in
which one or more signifi cant inputs or value drivers
are unobservable, which refl ect the reporting entity’s
own assumptions about the assumptions that mar-
ket participants would use in establishing a price.
Assets and liabilities measured at fair value
on a recurring basis
The following tables present Canon’s assets and liabilities that
are measured at fair value on a recurring basis consistent with
the fair value hierarchy at December 31, 2010 and 2009.
December 31
Millions of yen Level 1 Level 2 Level 3 Total
2010: Assets:
Cash and cash equivalents ¥ — ¥249,907 ¥ — ¥249,907
Available-for-sale (current):
Government bonds 1—— 1
Corporate bonds — — 1,000 1,000
Available-for-sale (noncurrent):
Government bonds 161 — — 161
Corporate bonds — 44 950 994
Fund trusts 10 1,788 — 1,798
Equity securities 23,402 — — 23,402
Derivatives — 11,950 — 11,950
Total assets ¥23,574 ¥263,689 ¥1,950 ¥289,213
Liabilities:
Derivatives ¥ — ¥ 913 ¥ — ¥ 913
Total liabilities ¥ — ¥ 913 ¥ — ¥ 913
Millions of yen Level 1 Level 2 Level 3 Total
2009: Assets:
Cash and cash equivalents ¥ — ¥ 184,856 ¥ — ¥ 184,856
Available-for-sale (current):
Government bonds 222 — — 222
Available-for-sale (noncurrent):
Government bonds 204 — — 204
Corporate bonds — 29 1,340 1,369
Fund trusts 1,589 979 — 2,568
Equity securities 17,726 — — 17,726
Derivatives — 752 — 752
Total assets ¥ 19,741 ¥ 186,616 ¥ 1,340 ¥ 207,697
Liabilities:
Derivatives ¥ — ¥ 7,210 ¥ — ¥ 7,210
Total liabilities ¥ — ¥ 7,210 ¥ — ¥ 7,210
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES