Canon 2011 Annual Report Download - page 89

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Strategy Business Units Management System FINANCIAL SECTION
87
!37 !101
FINANCIAL SECTION
Derivatives not designated as hedges
Canon has entered into certain foreign exchange contracts to
primarily offset the earnings impact related to fluctuations
in foreign currency exchange rates associated with certain
assets denominated in foreign currencies. Although these for-
eign exchange contracts have not been designated as hedges
as required in order to apply hedge accounting, the contracts
are effective from an economic perspective. The changes in
the fair value of these contracts are recorded in earnings
immediately.
Contract amounts of foreign exchange contracts at
December 31, 2011 and 2010 are set forth below:
To sell foreign currencies
To buy foreign currencies
2010
Millions of yen
Thousands of
U.S. dollars
20112011
¥
391,455
75,016
¥466,361
48,686
$5,018,654
961,744
December 31
Fair value of derivative instruments in the consolidated balance sheets
The following tables present Canon’s derivative instruments measured at gross fair value as reflected in the consolidated
balance sheets at December 31, 2011 and 2010.
Assets:
Foreign exchange contracts Prepaid expenses and
other current assets
Liabilities:
Foreign exchange contracts Other current liabilities
2010
Millions of yen
Thousands of
U.S. dollars
20112011
¥
1,325
1,270
¥2,487
426
$16,987
16,282
Fair value
Balance sheet location
Derivatives designated as hedging instruments
Assets:
Foreign exchange contracts Prepaid expenses and
other current assets
Liabilities:
Foreign exchange contracts Other current liabilities
2010
Millions of yen
Thousands of
U.S. dollars
20112011
¥
3,393
1,340
¥9,463
487
$43,500
17,180
Fair value
Balance sheet location
Derivatives not designated as hedging instruments
December 31
December 31