Canon 2013 Annual Report Download - page 73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 71
(a) The plan’s equity securities include common stock of the
Company and certain of its subsidiaries in the amounts
of ¥572 million ($5,448 thousand).
(b) These funds invest in listed equity securities consisting of
approximately 25% Japanese companies and 75% foreign
companies for Japanese plans, and mainly foreign com-
panies for foreign plans.
(c) This class includes approximately 85% Japanese gov-
ernment bonds and 15% foreign government bonds for
Japanese plans, and mainly foreign government bonds
for foreign plans.
(d) These funds invest in approximately 30% Japanese gov-
ernment bonds, 50% foreign government bonds, 5%
Japanese municipal bonds, and 15% corporate bonds for
Japanese plans. These funds invest in approximately 85%
foreign government bonds and 15% corporate bonds for
foreign plans.
(e) The plan’s equity securities include common stock of the
Company and certain of its subsidiaries in the amounts
of ¥565 million.
(f) These funds invest in listed equity securities consisting of
approximately 20% Japanese companies and 80% foreign
companies for Japanese plans, and mainly foreign com-
panies for foreign plans.
(g) This class includes approximately 30% Japanese gov-
ernment bonds and 70% foreign government bonds for
Japanese plans, and mainly foreign government bonds
for foreign plans.
(h) These funds invest in approximately 65% Japanese gov-
ernment bonds, 25% foreign government bonds, 5%
Japanese municipal bonds, and 5% corporate bonds for
Japanese plans. These funds invest in approximately 30%
foreign government bonds and 70% corporate bonds for
foreign plans.
Each level into which assets are categorized is based on
inputs used to measure the fair value of the assets, and does
not necessarily indicate the risks or ratings of the assets.
Level 1 assets are comprised principally of equity securi-
ties and government bonds, which are valued using unad-
justed quoted market prices in active markets with sufficient
volume and frequency of transactions. Level 2 assets are com-
prised principally of pooled funds that invest in equity and
debt securities, corporate bonds and investments in life insur-
ance company general accounts. Pooled funds are valued at
their net asset values that are calculated by the sponsor of
the fund and have daily liquidity. Corporate bonds are val-
ued using quoted prices for identical assets in markets that
are not active. Investments in life insurance company general
accounts are valued at conversion value.
The fair value of Level 3 assets, consisting of hedge funds,
was ¥818 million ($7,790 thousand) and ¥1,306 million
at December 31, 2013 and 2012, respectively. Amounts of
actual returns on, and purchases and sales of, these assets
during the years ended December 31, 2013 and 2012 were
not significant.
December 31, 2013 Thousands of U.S. dollars
Japanese plans Foreign plans
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Equity securities:
Japanese companies (a)
$ 487,229 $ — $ — $ 487,229 $ — $ — $ — $ —
Foreign companies 98,543 — — 98,543 416,010 — — 416,010
Pooled funds (b) — 1,384,924 — 1,384,924 — 999,363 — 999,363
Debt securities:
Government bonds (c)
1,188,571 — — 1,188,571 420,876 — — 420,876
Municipal bonds — 9,781 — 9,781 — 21,390 — 21,390
Corporate bonds — 100,410 — 100,410 — 313,533 — 313,533
Pooled funds (d) — 967,457 — 967,457 — 547,790 — 547,790
Mortgage backed securities
(and other asset backed
securities) — 91,133 — 91,133 — 48,552 — 48,552
Life insurance company
general accounts — 1,039,019 — 1,039,019 — 146,857 — 146,857
Other assets — 167,962 7,790 175,752 — 519,219 — 519,219
$ 1,774,343 $ 3,760,686 $ 7,790 $ 5,542,819 $ 836,886 $ 2,596,704 $ — $ 3,433,590