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76 CANON ANNUAL REPORT 2009
Intangible assets developed or acquired during the year ended
December 31, 2009 totaled ¥43,461 million ($472,402 thou-
sand), which are subject to amortization and primarily consist of
software of ¥39,303 million ($427,207 thousand), which is
mainly for internal use, and license fees of ¥2,797 million
($30,402 thousand), in addition to those recorded from
8. Goodwill and Other Intangible Assets
acquired businesses. The weighted average amortization period
for software, license fees and intangible assets in total is approx-
imately 4 years, 7 years and 4 years, respectively.
The components of intangible assets subject to amortization
at December 31, 2009 and 2008 were as follows:
December 31 2009 2008
Millions of yen
Gross carrying
amount
Accumulated
amortization
Gross carrying
amount
Accumulated
amortization
Software ¥ 198,276 ¥ 114,410 ¥ 187,920 ¥ 103,535
License fees 23,889 13,546 21,537 11,104
Other 30,610 8,258 34,341 10,925
¥ 252,775 ¥ 136,214 ¥ 243,798 ¥ 125,564
2009
Thousands of U.S. dollars
Gross carrying
amount
Accumulated
amortization
Software $ 2,155,174 $ 1,243,587
License fees 259,663 147,239
Other 332,717 89,761
$ 2,747,554 $ 1,480,587
Years ended December 31
Millions of yen
Thousands of
U.S. dollars
2009 2008 2009
Balance at beginning of year ¥ 50,754 ¥ 56,783 $ 551,674
Goodwill acquired during the year 4,805 4,975 52,228
Translation adjustments and other 312 (11,004) 3,391
Balance at end of year ¥ 55,871 ¥ 50,754 $ 607,293
Almost all of the goodwill has been allocated to the Offi ce Business Unit and the Consumer Business Unit at December 31, 2009
and 2008 for impairment testing.
Aggregate amortization expense for the years ended
December 31, 2009, 2008 and 2007 was ¥37,994 million
($412,978 thousand), ¥36,715 million and ¥31,879 million,
respectively. Estimated amortization expense for intangible assets
currently held for the next fi ve years ending December 31 is
¥36,633 million ($398,185 thousand) in 2010, ¥26,309 million
($285,967 thousand) in 2011, ¥16,959 million ($184,337
thousand) in 2012, ¥10,846 million ($117,891 thousand) in
2013, and ¥6,411 million ($69,685 thousand) in 2014.
Intangible assets not subject to amortization other than
goodwill at December 31, 2009 and 2008 were not signifi cant.
The changes in the carrying amount of goodwill, which is
included in other assets in the consolidated balance sheets, for
the years ended December 31, 2009 and 2008 were as follows:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
Canon AR09_FS_0325_ipc .indd 76 10.3.26 2:47:08 PM