Canon 2006 Annual Report Download - page 75

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73
The aggregate annual maturities of long-term debt out-
standing at December 31, 2006 were as follows:
Year ending December 31 Thousands of
Millions of yen U.S. dollars
2007 ¥15,263 $128,260
2008 13,450 113,025
2009 1,832 15,395
2010 418 3,513
2011 69 580
Thereafter 20 168
¥31,052 $260,941
Canon entered into an agreement whereby certain assets
were deposited into an irrevocable trust to meet the debt service
requirements of the: 2.95% Japanese yen notes; and 2.27%
Japanese yen notes in the aggregate amount of ¥20,000 million
($168,068 thousand). The assets contributed by Canon were
debt securities with carrying amounts of ¥20,462 million
($171,950 thousand) at December 31, 2006. Cash flows from
such investments will be used solely to satisfy the principal and
interest obligations for the debts. Accordingly, the debt securities
are included in the consolidated balance sheets under the cap-
tions of marketable securities and investments.
Both short-term and long-term bank loans are made under
general agreements which provide that security and guarantees
for present and future indebtedness will be given upon request
of the bank, and that the bank shall have the right to offset
cash deposits against obligations that have become due or, in
the event of default, against all obligations due to the bank.
The 1.30% Japanese yen convertible debentures due 2008
are convertible into approximately 319,000 shares of common
stock at a conversion price of ¥998.00 ($8.39) per share at
December 31, 2006. The debentures are redeemable at the
option of the Company between January 1, 2007 and Decem-
ber 31, 2007 at premiums of 1%, and at par thereafter.
Trade payables are summarized as follows:
(12) Trade Payables
December 31 Thousands of
Millions of yen U.S. dollars
2006 2005 2006
Notes ¥ 15,902 17,567 $ 133,630
Accounts 477,156 487,559 4,009,715
¥ 493,058 505,126 $4,143,345