Canon 2014 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2014 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 92

  • 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

68
Year ending December 31: Japanese plans Foreign plans
Millions of yen Millions of yen
2015 ¥ 18,521 ¥ 7,351
2016 20,326 7,704
2017 21,610 7,889
2018 23,826 8,446
2019 25,989 9,035
2020–2024 163,611 54,765
12. INCOME TAXES
Domestic and foreign components of income before income taxes and the current and deferred income tax expense (benefit)
attributable to such income are summarized as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Multiemployer pension plans
Effective January 1, 2014, certain subsidiaries in the
Netherlands participated in a multiemployer pension plan
determined in accordance with collective bargaining agree-
ments for the industry in which these subsidiaries operate.
The collective bargaining agreements have no expiration
date. Canon is not liable for other participating employers’
obligations under the terms and conditions of the agreements.
The amount of contributions to the multiemployer pension
plan which was expensed for the year ended December 31,
2014 was ¥2,815 million.
Defined contribution plans
The amounts of cost recognized for the defined contribu-
tion pension plans of the Company and certain of its sub-
sidiaries for the years ended December 31, 2014, 2013 and
2012 were ¥15,077 million, ¥14,383 million and ¥13,021
million, respectively.
Contributions
Canon expects to contribute ¥14,674 million to its Japanese defined benefit pension plans and ¥11,583 million to its foreign
defined benefit pension plans for the year ending December 31, 2015.
Estimated future benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
companies for Japanese plans, and mainly foreign com-
panies for foreign plans.
(g) 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.
(h) These funds invest in approximately 30% Japanese govern-
ment bonds, 50% foreign government bonds, 5% Japanese
municipal bonds, and 15% corporate bonds for Japanese
plans. These funds invest in approximately 85% foreign gov-
ernment bonds and 15% 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 securities
and government bonds, which are valued using unadjusted
quoted market prices in active markets with sufficient volume
and frequency of transactions. Level 2 assets are comprised
principally of pooled funds that invest in equity and debt secu-
rities, corporate bonds and investments in life insurance com-
pany 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 valued using quot-
ed 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 ¥1,600 million and ¥818 million at December 31, 2014
and 2013, respectively. Amounts of actual returns on, and
purchases and sales of, these assets during the years ended
December 31, 2014 and 2013 were not significant.
Years ended December 31 Millions of yen
Japanese Foreign Total
2014: Income before income taxes ¥ 277,041 ¥ 106,198 ¥ 383,239
Income taxes:
Current ¥ 83,221 ¥ 25,850 ¥ 109,071
Deferred 6,796 2,133 8,929
¥ 90,017 ¥ 27,983 ¥ 118,000