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Strategy FINANCIAL SECTION
76 Corporate DataBusiness Segment Corporate Structure
13. LEGAL RESERVE AND RETAINED EARNINGS
The Corporation Law of Japan provides that an amount equal
to 10% of distributions from retained earnings paid by the
Company and its Japanese subsidiaries be appropriated as a
legal reserve. No further appropriations are required when
the total amount of the additional paid-in capital and the
legal reserve equals 25% of their respective stated capital. The
Corporation Law of Japan also provides that additional paid-
in capital and legal reserve are available for appropriations
by the resolution of the stockholders. Certain foreign subsid-
iaries are also required to appropriate their earnings to legal
reserves under the laws of the respective countries.
Cash dividends and appropriations to the legal reserve
charged to retained earnings for the years ended December
31, 2013, 2012 and 2011 represent dividends paid out dur-
ing those years and the related appropriations to the legal
reserve. Retained earnings at December 31, 2013 did not
reflect current year-end dividends in the amount of ¥73,905
million ($703,857 thousand) which were approved by the
stockholders in March 2014.
The amount available for dividends under the Corporation
Law of Japan is based on the amount recorded in the
Company’s nonconsolidated books of account in accordance
with financial accounting standards of Japan. Such amount
was ¥1,055,590 million ($10,053,238 thousand) at December
31, 2013.
Retained earnings at December 31, 2013 included Canon’s
equity in undistributed earnings of affiliated companies
accounted for by the equity method in the amount of ¥16,423
million ($156,410 thousand).
14. OTHER COMPREHENSIVE INCOME (LOSS)
Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2012 and 2011 are as follows:
Millions of yen
Foreign
currency translation
adjustments
Unrealized gains
and losses
on securities
Gains and
losses on
derivative instruments
Pension
liability
adjustments Total
Balance at December 31, 2010 ¥ (325,612) ¥ 3,020 ¥ 917 ¥ (68,784) ¥ (390,459)
Adjustments for the year (53,251) (2,017) (462) (35,584) (91,314)
Balance at December 31, 2011 (378,863) 1,003 455 (104,368) (481,773)
Adjustments for the year 131,129 3,143 (4,917) (14,831) 114,524
Balance at December 31, 2012 ¥ (247,734) ¥ 4,146 ¥ (4,462) ¥ (119,199) ¥ (367,249)
Millions of yen
Foreign
currency translation
adjustments
Unrealized gains
and losses
on securities
Gains and
losses on
derivative instruments
Pension
liability
adjustments Total
Balance at December 31, 2012 ¥ (247,734) ¥ 4,146 ¥ (4,462) ¥ (119,199) ¥ (367,249)
Equity transactions with
noncontrolling interests and other
(323) (1) (2) (329) (655)
Other comprehensive income (loss)
before reclassifications
249,791 7,449 (7,551) 27,153 276,842
Amounts reclassified from
accumulated other comprehensive
income (loss)
— (1,352) 9,607 2,161 10,416
Net change during the year
249,468 6,096 2,054 28,985 286,603
Balance at December 31, 2013 ¥ 1,734 ¥ 10,242 ¥ (2,408) ¥ (90,214) ¥ (80,646)
Changes in accumulated other comprehensive income (loss) for the year ended December 31, 2013 are as follows: