Canon 2004 Annual Report Download - page 67

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65
Aggregate amortization expense for the years ended
December 31, 2004, 2003 and 2002 was ¥18,295 million
($175,913 thousand), ¥12,438 million and ¥6,288 million,
respectively. Estimated amortization expense for the next five
years ending December 31 is ¥17,785 million ($171,010
thousand) in 2005, ¥14,528 million ($139,692 thousand) in
2006, ¥10,311 million ($99,144 thousand) in 2007, ¥6,804
million ($65,423 thousand) in 2008, and ¥3,751 million
($36,067 thousand) in 2009.
Intangible assets not subject to amortization other than
goodwill at December 31, 2004 and 2003 were not
significant.
The changes in the carrying amount of goodwill for the
years ended December 31, 2004 and 2003 were as follows:
Year ended December 31 Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Balance at beginning of year ¥22,067 13,640 $212,183
Goodwill acquired during the year 3,156 7,839 30,346
Impairment losses (42) —(404)
Recognition of acquired company’s tax benefits (1,298) —(12,481)
Translation adjustments 350 588 3,366
Balance at end of year ¥24,233 22,067 $233,010
During the year ended December 31, 2004, Canon
recognized ¥1,298 million ($12,481 thousand) of deferred tax
benefits relating to preexisting net operating tax losses of a
company acquired in 2003. In connection therewith, Canon
reduced the related goodwill by the same amount.
(10) Short-Term Loans and Long-Term Debt
Short-term loans consisting of bank borrowings at December
31, 2003 were ¥2,941 million. The weighted average interest
rate on short-term loans outstanding at December 31, 2003
was 2.10%.
Long-term debt consisted of the following:
December 31 Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Loans, principally from banks, maturing in installments through 2013;
bearing weighted average interest of 3.05% and 2.88% at December 31,
2004 and 2003, respectively, partially secured by mortgage of property,
plant and equipment ¥2,949 27,452 $28,355
2.58% Japanese yen notes, due 2004 —10,000 —
2.03% Japanese yen notes, due 2004 —10,000 —
1.88% Japanese yen notes, due 2005 5,000 5,000 48,077
1.71% Japanese yen notes, due 2005 200 —1,923
2.95% Japanese yen notes, due 2007 10,000 10,000 96,154
2.27% Japanese yen notes, due 2008 10,000 10,000 96,154
1.20% Japanese yen convertible debentures, due 2005 309 2,577 2,971
1.30% Japanese yen convertible debentures, due 2008 1,487 9,157 14,298
Capital lease obligations 8,585 11,269 82,548
38,530 95,455 370,480
Less amount due within one year (9,879) (36,195) (94,990)
¥28,651 59,260 $275,490