Canon 2003 Annual Report Download - page 61

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59
(8) Goodwill and Other Intangible Assets
The components of acquired intangible assets excluding goodwill
at December 31, 2003 and 2002 were as follows:
2003 2002
Gross Carrying Accumulated Gross Carrying Accumulated
(Millions of yen) Amount Amortization Amount Amortization
Intangible assets subject to amortization:
Software ¥115,675 80,534 ¥106,664 74,971
Other 6,188 3,319 3,233 1,106
Total ¥121,863 83,853 ¥109,897 76,077
2003
Gross Carrying Accumulated
(Thousands of U.S. dollars) Amount Amortization
Intangible assets subject to amortization:
Software $1,081,075 752,654
Other 57,832 31,019
Total $1,138,907 783,673
Intangible assets not subject to amortization at December 31,
2003 and 2002 were insignificant.
Aggregate amortization expense for the years ended
December 31, 2003, 2002 and 2001 was ¥12,438 million
($116,243 thousand), ¥6,288 million and ¥4,046 million,
respectively. Estimated amortization expense for the next five
years ending December 31 is ¥12,184 million ($113,869
thousand) in 2004, ¥9,498 million ($88,766 thousand) in 2005,
¥6,974 million ($65,178 thousand) in 2006, ¥3,890 million
($36,355 thousand) in 2007, and ¥1,969 million ($18,402
thousand) in 2008.
The changes in the carrying amount of goodwill for the years
ended December 31, 2003 and 2002 were as follows:
Thousands of
Millions of yen U.S. dollars
2003 2002 2003
Balance at beginning of year
¥13,640 13,375 $127,477
Goodwill acquired during the year
7,839 806 73,262
Impairment losses
—(503) —
Translation adjustments
588 (38) 5,495
Balance at end of year
¥22,067 13,640 $206,234
In the year ended December 31, 2002, under a continuing
negative trend in the business information industries and
semiconductor related market, the majority of goodwill impairment
loss of ¥503 million was recognized from the business information
products and optical and other products reporting units since the
carrying amounts of the reporting units were greater than the fair
value of the reporting units (as determined using the expected
present value of future cash flows) and the carrying amounts of
the reporting units goodwill exceeded the implied fair value of that
goodwill.