Canon 2004 Annual Report Download - page 83

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81
Limitations
Fair value estimates are made at a specific point in time, based
on relevant market information and information about the
financial instruments. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment
and therefore cannot be determined with precision. Changes
in assumptions could significantly affect the estimates.
Concentrations of credit risk
At December 31, 2004 and 2003, one customer accounted
for approximately 13% and 16% of consolidated trade
receivables, respectively. Although Canon does not expect that
the customer will fail to meet their obligations, Canon is
potentially exposed to concentrations of credit risk if the
customer failed to perform according to the terms of the
contracts.
21) Supplemental Cash Flow Information
For the years ended December 31, 2004, 2003 and 2002,
aggregate common stock and additional paid-in capital arising
from conversion of convertible debt amounted to ¥9,938
million ($95,557 thousand), ¥3,297 million and ¥3,908
million, respectively.
In March 2004, the Company acquired all of the
outstanding common shares of Igari Mold Co. Ltd., a precision
plastic mold manufacturer, in an exchange offering for
577,920 shares of the Company’s common stock. The
aggregate value of the shares exchanged was approximately
¥2,805 million ($26,971 thousand). In connection with this
transaction, the Company recognized goodwill, classified as
other assets in the accompanying consolidated financial
statements, of ¥1,585 million ($15,240 thousand).
As a result of the acquisition of the outstanding minority
ownership interest of Canon Components Inc. and the
issuance of common stock in connection with the acquisition
during the year ended December 31, 2002, goodwill classified
as other assets increased by ¥795 million, and minority
interests decreased by ¥257 million.