Canon 2014 Annual Report Download - page 78

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76
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, 2014 and 2013.
Derivatives designated as hedging instruments
Derivatives not designated as hedging instruments
Contract amounts of foreign exchange contracts at December 31, 2014 and 2013 are set forth below:
December 31 Millions of yen
2014 2013
To sell foreign currencies ¥ 358,862 ¥ 374,699
To buy foreign currencies 21,365 44,726
December 31 Fair value
Millions of yen
Balance sheet location 2014 2013
Assets:
Foreign exchange contracts Prepaid expenses and other current assets ¥ 8 ¥ 44
Liabilities:
Foreign exchange contracts Other current liabilities 1,597 2,267
December 31 Fair value
Millions of yen
Balance sheet location 2014 2013
Assets:
Foreign exchange contracts Prepaid expenses and other current assets ¥ 257 ¥ 210
Liabilities:
Foreign exchange contracts Other current liabilities 9,570 12,678
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
rity date are recognized in earnings and not considered
hedge ineffectiveness.
Derivatives not designated as hedges
Canon has entered into certain foreign exchange con-
tracts to primarily offset the earnings impact related to
fluctuations in foreign currency exchange rates associat-
ed with certain assets denominated in foreign currencies.
Although these foreign exchange contracts have not been
designated as hedges as required in order to apply hedge
accounting, the contracts are effective from an econom-
ic perspective. The changes in the fair value of these con-
tracts are recorded in earnings immediately.