Canon 2006 Annual Report Download - page 74

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72
Aggregate amortization expense for the years ended
December 31, 2006, 2005 and 2004 was ¥26,490 million
($222,605 thousand), ¥20,214 million and ¥18,295 million,
respectively. Estimated amortization expense for intangible
assets currently held for the next five years ending December
31 is ¥29,979 million ($251,924 thousand) in 2007, ¥23,033
million ($193,555 thousand) in 2008, ¥14,374 million
($120,790 thousand) in 2009, ¥8,127 million ($68,294 thou-
sand) in 2010, and ¥5,355 million ($45,000 thousand) in 2011.
Intangible assets not subject to amortization other than
goodwill at December 31, 2006 and 2005 were not significant.
The changes in the carrying amount of goodwill for the
years ended December 31, 2006 and 2005 were as follows:
Year ended December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Balance at beginning of year ¥ 40,161 24,233 $337,487
Goodwill acquired during the year 2,297 15,391 19,303
Recognition of acquired company’s tax benefits (1,038) —(8,723)
Translation adjustments and other (619) 537 (5,201)
Balance at end of year ¥ 40,801 40,161 $342,866
During the year ended December 31, 2006, Canon recog-
nized ¥1,038 million ($8,723 thousand) of deferred tax bene-
fits relating to preexisting net operating tax losses of a
company acquired in 2005. In connection therewith, Canon
reduced the related goodwill by the same amount.
(11) Short-Term Loans and Long-Term Debt
Short-term loans consisting of bank borrowings at December
31, 2006 and 2005 were ¥99 million ($832 thousand) and ¥67
million, respectively. The weighted average interest rate on
short-term loans outstanding at December 31, 2006 and 2005
were 4.91% and 2.14%, respectively.
Long-term debt consisted of the following:
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Loans, principally from banks, maturing in installments through 2018;
bearing weighted average interest of 1.34% and 1.40%
at December 31, 2006 and 2005, respectively,
partially secured by mortgage of property, plant and equipment ¥149 2,641 $1,251
2.95% Japanese yen notes, due 2007 10,000 10,000 84,034
2.27% Japanese yen notes, due 2008 10,000 10,000 84,034
1.30% Japanese yen convertible debentures, due 2008 318 649 2,672
Capital lease obligations 10,585 8,784 88,950
31,052 32,074 260,941
Less amount due within one year (15,263) (4,992) (128,260)
¥ 15,789 27,082 $ 132,681
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
CANON INC. AND SUBSIDIARIES