Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

Contract Amounts of Foreign Exchange Contracts

Contract amounts of foreign exchange contracts at December 31, 2011 and 2010 are set forth below:

	December 31
	2011		2010
	(Millions of yen)
To sell foreign currencies	¥	391,455	¥	466,361
To buy foreign currencies		75,016		48,686

Designated as Hedging Instrument

Fair Value of Derivative Instruments in Consolidated Balance Sheet

The following tables present Canon’s derivative instruments measured at gross fair value as reflected in the consolidated balance sheets at December 31, 2011 and 2010.

Derivatives designated as hedging instruments

		Fair value
		December 31
	Balance sheet location	2011		2010
		(Millions of yen)
Assets:
Foreign exchange contracts	Prepaid expenses and other current assets	¥	1,325	¥	2,487
Liabilities:
Foreign exchange contracts	Other current liabilities		1,270		426

Not Designated as Hedging Instrument

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Derivatives not designated as hedging instruments

		Fair value
		December 31
	Balance sheet location	2011		2010
		(Millions of yen)
Assets:
Foreign exchange contracts	Prepaid expenses and other current assets	¥	3,393	¥	9,463
Liabilities:
Foreign exchange contracts	Other current liabilities		1,340		487

Effect of Derivative Instruments on Consolidated Statement of Income

Derivatives not designated as hedging instruments

			Gain (loss) recognized in income on derivative
			Years ended December 31
	Location		2011		2010		2009
			(Millions of yen)
Foreign exchange contracts		Other, net	¥	11,168	¥	50,794	¥	(8,638	)

Cash Flow Hedging

Effect of Derivative Instruments on Consolidated Statement of Income

The following tables present the effect of Canon’s derivative instruments in the consolidated statements of income for the years ended December 31, 2011, 2010 and 2009.

Derivatives in cash flow hedging relationships

	Years ended December 31
	Gain (loss) recognized in OCI (effective portion)			Gain (loss) reclassified from accumulated OCI into  income (effective portion)				Gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing)
	Amount			Location		Amount		Location		Amount
	(Millions of yen)
2011:
Foreign exchange contracts	¥	(785	)		Other, net	¥	5,006		Other, net	¥	(457	)
2010:
Foreign exchange contracts		1,419			Other, net		6,990		Other, net		(302	)
2009:
Foreign exchange contracts		(2,372	)		Other, net		2,670		Other, net