Canon 2012 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2012 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.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Strategy Business Units Management System FINANCIAL SECTION
88
Balance at beginning of year
Total gains or losses (realized or unrealized):
Included in earnings
Included in other comprehensive income (loss)
Purchases, issuances, and settlements
Balance at end of year
2011
Millions of yen
Thousands of
U.S. dollars
20122012
¥ 454
3
2
(15)
¥ 444
¥ 1,950
(2)
(12)
(1,482)
¥ 454
$ 5,218
34
23
(172)
$ 5,103
Years ended December 31
Gains and losses included in earnings are mainly related
to corporate bonds still held at December 31, 2012 and 2011,
and are reported in “Other, net” in the consolidated state-
ments of income.
Assets and liabilities measured at fair value on a
nonrecurring basis
During the year ended December 31, 2012, there were no
circumstances that required any significant assets or liabili-
ties to be measured at fair value on a nonrecurring basis.
During the year ended December 31, 2011, equity secu-
rities accounted for by the equity method with a carrying
amount of ¥3,577 million were written down to their fair
value of zero, resulting in an other-than-temporary impair-
ment charge of ¥3,577 million, which was included in
earnings. Equity securities accounted for by the equity
method were classified as Level 3 instruments and valued
based on an income approach using unobservable inputs
such as projected income of the investment.
The following table presents the changes in Level 3 assets measured on a recurring basis, consisting primarily of corporate
bonds, for the years ended December 31, 2012 and 2011.
2012: Assets:
Cash and cash equivalents
Available-for-sale (current):
Corporate bonds
Available-for-sale (noncurrent):
Government bonds
Corporate bonds
Fund trusts
Equity securities
Derivatives
Total assets
Liabilities:
Derivatives
Total liabilities
Level 3 TotalLevel 2
$ 1,629,069
—
—
1,334
12,356
—
9,552
$ 1,652,311
$ 293,023
$ 293,023
Level 1
$ —
345
2,080
—
1,828
245,230
—
$ 249,483
$ —
$ —
$ —
—
—
5,103
—
—
—
$ 5,103
$ —
$ —
$ 1,629,069
345
2,080
6,437
14,184
245,230
9,552
$ 1,906,897
$ 293,023
$ 293,023
December 31
Thousands of U.S. dollars
Level 1 investments are comprised principally of Japanese
equity securities, which are valued using an unadjusted
quoted market price in active markets with sufficient volume
and frequency of transactions. Level 2 cash and cash equiv-
alents are valued based on market approach, using quoted
prices for identical assets in markets that are not active. Level
3 investments are mainly comprised of corporate bonds,
which are valued based on cost approach, using unobservable
inputs as the market for the assets was not active at the mea-
surement date.
Derivative financial instruments are comprised of for-
eign exchange contracts. Level 2 derivatives are valued using
quotes obtained from counterparties or third parties, which
are periodically validated by pricing models using observable
market inputs, such as foreign currency exchange rates and
interest rates, based on market approach.