Canon 2006 Annual Report Download - page 73

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71
The following is a schedule by year of the future minimum
lease payments to be received under financing leases and non-
cancelable operating leases at December 31, 2006.
Year ending December 31 Millions of yen Thousands of U.S. dollars
Financing Leases Operating Leases Financing Leases Operating Leases
2007 ¥ 86,961 5,689 $ 730,765 47,807
2008 64,107 2,996 538,714 25,176
2009 41,212 1,699 346,319 14,277
2010 18,368 770 154,353 6,471
2011 5,518 70 46,370 588
Thereafter 531 24 4,462 202
¥216,697 11,248 $1,820,983 94,521
(9) Acquisitions
In 2005, the Company acquired two companies for a total cost
of ¥20,205 million, which was paid in cash. Those companies
are engaged in the development, manufacturing and sales of
semiconductor manufacturing equipment, factory automation
equipment and vacuum equipment for production of electronic
parts, including semiconductors, flat panel displays, magnetic
heads and hard disc drives. In connection with those transactions,
the Company recognized goodwill of ¥4,885 million and intan-
gible assets of ¥16,382 million, which were classified as other
assets in the accompanying consolidated financial statements.
Intangible assets consist primarily of developed technology, and
are subject to a weighted average amortization period of
approximately 9 years.
In 2004, the Company acquired all of the outstanding
common shares of a precision plastic mold manufacturer, in an
exchange offering for 866,880 shares of the Company’s
common stock. The aggregate value of the shares exchanged
was approximately ¥2,805 million. In connection with this
transaction, the Company recognized goodwill of ¥1,585 mil-
lion, which was classified as other assets in the accompanying
consolidated financial statements.
Canon has included the results of operations of these trans-
actions prospectively from the respective dates of transactions.
Canon has not presented the pro forma results of operations of
the acquired businesses because the results are not material to
its consolidated results of operations on either an individual or
an aggregate basis.
(10) Goodwill and Other Intangible Assets
Intangible assets acquired during the year ended December 31,
2006 totaled ¥46,791 million ($393,202 thousand), which are
subject to amortization, and primarily consist of internal use
software of ¥33,996 million ($285,681 thousand) and license
fees of ¥5,898 million ($49,563 thousand). The weighted aver-
age amortization period for internal use software and license
fees is approximately 4 years and 8 years, respectively.
The components of acquired intangible assets subject to
amortization included in other assets at December 31, 2006
and 2005 were as follows:
December 31 2006 2005
Gross Carrying Accumulated Gross Carrying Accumulated
Millions of yen Amount Amortization Amount Amortization
Software ¥140,756 76,120 ¥121,729 70,535
License fees 23,681 11,257 20,567 11,329
Other 24,899 4,919 23,291 4,997
¥189,336 92,296 ¥165,587 86,861
2006
Gross Carrying Accumulated
Thousands of U.S. dollars Amount Amortization
Software $1,182,824 639,664
License fees 199,000 94,597
Other 209,235 41,336
$1,591,059 775,597