Canon 2010 Annual Report Download - page 99
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Derivatives in cash fl ow hedging relationships
Years ended December 31
Gain (loss) recognized
in OCI (effective portion)
Gain (loss) reclassifi ed from
accumulated OCI into income
(effective portion)
Gain (loss) recognized in income
(ineffective portion and amount excluded
from effectiveness testing)
Millions of yen Amount Location Amount Location Amount
2010: Foreign exchange
contracts ¥ 1,419 Other, net ¥ 6,990 Other, net ¥ (302)
2009: Foreign exchange
contracts ¥ (2,372) Other, net ¥ 2,670 Other, net ¥ (462)
Thousands of U.S. dollars
2010: Foreign exchange
contracts $17,519 Other, net $86,296 Other, net $(3,728)
Effect of derivative instruments on the consolidated statements of income
The following tables present the effect of Canon’s derivative instruments on the consolidated statements of income for the years
ended December 31, 2010 and 2009.
Derivatives not designated as hedging instruments
Years ended December 31 Gain (loss) recognized in income on derivative
Millions of yen
Thousands of
U.S. dollars
Location 2010 2009 2010
Foreign exchange contracts Other, net ¥50,794 ¥(8,638) $627,086
The amount of the hedging ineffectiveness was not material for
the year ended December 31, 2008. The amount of net gains or
losses excluded from the assessment of hedge effectiveness
(time value component) which was recorded in other income
(deductions) was net losses of ¥3,701 million for the year
ended December 31, 2008.
Commitments
At December 31, 2010, commitments outstanding for the pur-
chase of property, plant and equipment approximated ¥29,383
million ($362,753 thousand), and commitments outstanding for
the purchase of parts and raw materials approximated ¥86,434
million ($1,067,086 thousand).
Canon occupies sales offi ces and other facilities under lease
arrangements accounted for as operating leases. Deposits
made under such arrangements aggregated ¥13,686 million
($168,963 thousand) and ¥14,210 million at December 31, 2010
and 2009, respectively, and are included in noncurrent receiv-
ables in the accompanying consolidated balance sheets.
Rental expenses under such operating lease arrangements
amounted to ¥40,396 million ($498,716 thousand), ¥36,474 mil-
lion and ¥41,169 million for the years ended December 31,
2010, 2009 and 2008, respectively.
20. Commitments and Contingent Liabilities