Canon 2015 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2015 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

CANON ANNUAL REPORT 2015
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, 2015 and 2014.
Contract amounts of foreign exchange contracts at December 31, 2015 and 2014 are set forth below:
December 31 Millions of yen
2015 2014
To sell foreign currencies ¥ 228,053 ¥ 358,862
To buy foreign currencies 37,540 21,365
Derivatives designated as hedging instruments
December 31 Fair value
Millions of yen
Balance sheet location 2015 2014
Assets:
Foreign exchange contracts Prepaid expenses and other current assets ¥ 373 ¥ 8
Liabilities:
Foreign exchange contracts Other current liabilities 534 1,597
Derivatives not designated as hedging instruments
December 31 Fair value
Millions of yen
Balance sheet location 2015 2014
Assets:
Foreign exchange contracts Prepaid expenses and other current assets ¥ 1,112 ¥ 257
Liabilities:
Foreign exchange contracts Other current liabilities 90 9,570
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivatives not designated as hedges
Canon has entered into certain foreign exchange contracts
to primarily offset the earnings impact related to fluctuations
in foreign currency exchange rates associated 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 economic perspective. The
changes in the fair value of these contracts are recorded in
earnings immediately.