Canon 2004 Annual Report Download - page 68

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66
CANON INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
The aggregate annual maturities of long-term debt
outstanding at December 31, 2004 were as follows:
Year ending December 31 Millions Thousands of
of yen U.S. dollars
2005 ¥ 9,879 $ 94,990
2006 5,046 48,520
2007 11,401 109,625
2008 12,074 116,095
2009 105 1,010
Thereafter 25 240
¥38,530 $ 370,480
Certain property, plant and equipment with a net book
carrying value of ¥11,247 million ($108,144 thousand) at
December 31, 2004 was mortgaged to secure loans from
banks.
In November 2004, Canon entered into an agreement
whereby certain assets were deposited into an irrevocable trust
to meet the debt service requirements of the: 1.88% Japanese
yen notes; 2.95% Japanese yen notes; and 2.27% Japanese
yen notes in the aggregate amount of ¥25,000 million
($240,385 thousand). The assets contributed by Canon
consisted of certificates of deposit and debt securities with
carrying amounts of ¥5,072 million ($48,769 thousand) and
¥21,460 million ($206,346 thousand), respectively, at
December 31, 2004. Cash flows from such investments will be
used solely to satisfy the principal and interest obligations for
the debts. Accordingly, the certificates of deposit are included
in the consolidated balance sheet under the caption of prepaid
expenses and other current assets, and the debt securities are
included in the consolidated balance sheet under the caption
of investments.
Both short-term and long-term bank loans are made under
general agreements which provide that security and
guarantees for present and future indebtedness will be given
upon request of the bank, and that the bank shall have the
right to offset cash deposits against obligations that have
become due or, in the event of default, against all obligations
due to the bank. Long-term agreements with lenders other
than banks also generally provide that Canon must provide
additional security upon request of the lender.
The 1.20% Japanese yen convertible debentures due 2005
are convertible into approximately 206,000 shares of common
stock at a conversion price of ¥1,497.00 ($14.39) per share at
December 31, 2004.
The 1.30% Japanese yen convertible debentures due 2008
are convertible into approximately 993,000 shares of common
stock at a conversion price of ¥1,497.00 ($14.39) per share at
December 31, 2004. The debentures are redeemable at the
option of the Company between January 1, 2005 and
December 31, 2007 at declining premiums ranging from 3%
to 1%, and at par thereafter.
(11) Trade Payables
Trade payables are summarized as follows:
December 31 Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Notes ¥51,081 47,771 $491,164
Accounts 414,315 343,410 3,983,798
¥465,396 391,181 $4,474,962