Canon 2005 Annual Report Download - page 71

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69
Aggregate amortization expense for the years ended
December 31, 2005, 2004 and 2003 was ¥20,214 million
($171,305 thousand), ¥18,295 million and ¥12,438 million,
respectively. Estimated amortization expense for the next five
years ending December 31 is ¥23,117 million ($195,907 thou-
sand) in 2006, ¥17,286 million ($146,492 thousand) in 2007,
¥12,911 million ($109,415 thousand) in 2008, ¥8,386 million
($71,068 thousand) in 2009, and ¥4,366 million ($37,000
thousand) in 2010.
Intangible assets not subject to amortization other than
goodwill at December 31, 2005 and 2004 were not significant.
The changes in the carrying amount of goodwill for the
years ended December 31, 2005 and 2004 were as follows:
Year ended December 31 Thousands of
Millions of yen U.S. dollars
2005 2004 2005
Balance at beginning of year ¥ 24,233 22,067 $205,364
Goodwill acquired during the year 15,391 3,156 130,432
Impairment losses —(42) —
Recognition of acquired company’s tax benefits —(1,298) —
Translation adjustments 537 350 4,551
Balance at end of year ¥ 40,161 24,233 $340,347
During the year ended December 31, 2004, Canon recog-
nized ¥1,298 million of deferred tax benefits relating to preex-
isting net operating tax losses of a company acquired in 2003.
In connection therewith, Canon reduced the related goodwill
by the same amount.
2005
Gross Carrying Accumulated
Thousands of U.S. dollars Amount Amortization
Software $1,031,602 597,754
License fees 174,297 96,008
Other 197,381 42,348
$1,403,280 736,110