Canon 2015 Annual Report Download - page 70

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CANON ANNUAL REPORT 2015
68
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
bonds, 50% foreign government bonds, 5% Japanese munici-
pal bonds, and 20% corporate bonds for Japanese plans. These
funds invest in approximately 85% foreign government 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 neces-
sarily 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 fre-
quency of transactions. Level 2 assets are comprised principally of
pooled funds that invest in equity and debt securities, corporate
bonds and investments in life insurance company general accounts.
Pooled funds are valued at their net asset values that are calcu-
lated by the sponsor of the fund and have daily liquidity. Corporate
bonds are valued 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
¥779 million and ¥1,600 million at December 31, 2015 and 2014,
respectively. Amounts of actual returns on, and purchases and sales
of, these assets during the years ended December 31, 2015 and
2014 were not significant.
Year ending December 31: Japanese plans Foreign plans
Millions of yen Millions of yen
2016 ¥ 20,023 ¥ 9,836
2017 21,351 10,165
2018 23,280 9,843
2019 23,359 11,036
2020 27,886 11,686
2021–2025 170,161 67,899
Multiemployer pension plans
The amounts of cost recognized for the multiemployer pen-
sion plans primarily in the Netherlands for the years ended
December 31, 2015 and 2014 were ¥3,864 million and
¥2,815 million, respectively. The multiemployer pension plan
in which the subsidiaries in the Netherlands participated was
102% funded as of December 31, 2014. The collective bar-
gaining agreements have no expiration date. Canon is not
liable for other participating employers’ obligations under the
terms and conditions of the agreements.
Defined contribution plans
The amounts of cost recognized for the defined contribution pen-
sion plans of the Company and certain of its subsidiaries for the
years ended December 31, 2015, 2014 and 2013 were ¥17,277
million, ¥15,077 million and ¥14,383 million, respectively.
Contributions
Canon expects to contribute ¥12,015 million to its Japanese defined benefit pension plans and ¥8,706 million to its foreign
defined benefit pension plans for the year ending December 31, 2016.
Estimated future benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
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:
Years ended December 31 Millions of yen
Japanese Foreign Total
2015: Income before income taxes ¥ 228,871 ¥ 118,567 ¥ 347,438
Income taxes:
Current ¥ 80,020 ¥ 31,413 ¥ 111,433
Deferred 3,414 1,258 4,672
¥ 83,434 ¥ 32,671 ¥ 116,105