Canon 2010 Annual Report Download - page 95
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Please find page 95 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 2010 93
Thousands of U.S. dollars
Before-tax
amount
Tax (expense)
or benefi t
Net-of-tax
amount
2010:
Foreign currency translation adjustments $(1,583,593) $ 16,705 $(1,566,888)
Net unrealized gains and losses on securities:
Amount arising during the year (26,901) 8,284 (18,617)
Reclassifi cation adjustments for gains and losses realized in net income 16,296 518 16,814
Net change during the year (10,605) 8,802 (1,803)
Net gains and losses on derivative instruments:
Amount arising during the year 103,815 (44,111) 59,704
Reclassifi cation adjustments for gains and losses realized in net income (86,296) 36,061 (50,235)
Net change during the year 17,519 (8,050) 9,469
Pension liability adjustments:
Amount arising during the year (236,666) 102,641 (134,025)
Reclassifi cation adjustments for gains and losses realized in net income 28,678 (9,801) 18,877
Net change during the year (207,988) 92,840 (115,148)
Other comprehensive income (loss) $(1,784,667) $110,297 $(1,674,370)
On May 1, 2010, based on the approval of the stockholders, the
Company granted stock options to its directors, executive offi -
cers and certain employees to acquire 890,000 shares of com-
mon stock. These option awards vest after two years of
continued service beginning on the grant date and have a four
year contractual term. The grant-date fair value per share of the
stock options granted during the year ended December 31,
2010 was ¥988 ($12.20).
On May 1, 2009, based on the approval of the stockholders,
the Company granted stock options to its directors, executive
offi cers and certain employees to acquire 954,000 shares of
common stock. These option awards vest after two years of
continued service beginning on the grant date and have a four
year contractual term. The grant-date fair value per share of the
stock options granted during the year ended December 31,
2009 was ¥699.
On May 1, 2008, based on the approval of the stockholders,
the Company granted stock options to its directors, executive
offi cers and certain employees to acquire 592,000 shares of
common stock. These option awards vest after two years of
17. Stock-Based Compensation
continued service beginning on the grant date and have a four
year contractual term. The grant-date fair value per share of the
stock options granted during the year ended December 31,
2008 was ¥1,247.
The compensation cost recognized for these stock options
for the years ended December 31, 2010, 2009 and 2008 was
¥643 million ($7,938 thousand), ¥564 million and ¥246 million,
respectively, and is included in selling, general and administra-
tive expenses in the consolidated statements of income.
The fair value of each option award was estimated on the
date of grant using the Black-Scholes option pricing model that
incorporates the assumptions presented below:
Years ended December 31
2010 2009 2008
Expected term of option (in years) 4.0 4.0 4.0
Expected volatility 38.00% 40.08% 37.39%
Dividend yield 2.53% 3.51% 2.10%
Risk-free interest rate 0.45% 0.64% 0.95%