Canon 2007 Annual Report Download - page 80

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78
Aggregate amortization expense for the years ended
December 31, 2007, 2006 and 2005 was ¥31,879 million
($279,640 thousand), ¥26,490 million and ¥20,214 million,
respectively. Estimated amortization expense for intangible
assets currently held for the next five years ending December
31 is ¥34,751 million ($304,833 thousand) in 2008, ¥25,151
million ($220,623 thousand) in 2009, ¥16,861 million
($147,904 thousand) in 2010, ¥9,089 million ($79,728 thousand)
in 2011, and ¥5,071 million ($44,482 thousand) in 2012.
Intangible assets not subject to amortization other than
goodwill at December 31, 2007 and 2006 were not significant.
The changes in the carrying amount of goodwill for the
years ended December 31, 2007 and 2006 were as follows:
Years ended December 31 Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Balance at beginning of year ¥40,801 ¥40,161 $357,904
Goodwill acquired during the year 13,573 2,297 119,061
Recognition of acquired company’s tax benefits —(1,038) —
Translation adjustments and other 2,409 (619) 21,131
Balance at end of year ¥56,783 ¥40,801 $498,096
During the year ended December 31, 2006, Canon
recognized ¥1,038 million of deferred tax benefits 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, 2007 and 2006 were ¥2,888 million ($25,333 thousand)
and ¥99 million, respectively. The weighted average interest
rates on short-term loans outstanding at December 31, 2007
and 2006 were 3.16% and 4.91%, respectively.
Long-term debt consisted of the following:
December 31 Thousands of
Millions of yen U.S. dollars
2007 2006 2007
Loans, principally from banks, maturing in installments through 2017;
bearing weighted average interest of 1.80% and 1.34%
at December 31, 2007 and 2006, respectively,
partially secured by mortgage of property, plant and equipment ¥ 2,993 ¥ 149 $ 26,254
2.95% Japanese yen notes, due 2007 —10,000 —
2.27% Japanese yen notes, due 2008 10,000 10,000 87,719
1.30% Japanese yen convertible debentures, due 2008 128 318 1,123
Capital lease obligations 10,988 10,585 96,386
24,109 31,052 211,482
Less current portion (15,429) (15,263) (135,342)
¥ 8,680 ¥ 15,789 $ 76,140
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES