Canon 2010 Annual Report Download - page 80
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Please find page 80 of the 2010 Canon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.CANON ANNUAL REPORT 201078
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CANON INC. AND SUBSIDIARIES
Millions of yen
Thousands of
U.S. dollars
Current assets ¥122,248 $1,509,235
Property, plant and equipment 51,156 631,556
Intangible assets 56,297 695,025
Goodwill 77,253 953,741
Other noncurrent assets 42,658 526,642
Non-current assets 227,364 2,806,964
Total acquired assets 349,612 4,316,199
Total assumed liabilities 247,458 3,055,038
Net assets acquired ¥102,154 $1,261,161
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at acquisition date.
Intangible assets developed or acquired during the year ended
December 31, 2010 totaled ¥94,474 million ($1,166,346 thou-
sand), which are subject to amortization and primarily consist
of software of ¥34,441 million ($425,198 thousand), which is
mainly for internal use, in addition to those recorded from
9. Goodwill and Other Intangible Assets
acquired businesses. The weighted average amortization period
for software and intangible assets in total is approximately 4
years and 4 years, respectively.
The components of intangible assets subject to amortization
at December 31, 2010 and 2009 were as follows:
December 31 2010 2009
Millions of yen
Gross carrying
amount
Accumulated
amortization
Gross carrying
amount
Accumulated
amortization
Software ¥200,245 ¥109,200 ¥198,276 ¥114,410
Customer relationships 37,637 12,107 8,585 2,245
Patented technologies 25,425 9,377 11,648 2,878
License fees 22,108 14,436 23,889 13,546
Other 16,686 4,641 10,377 3,135
¥302,101 ¥149,761 ¥252,775 ¥136,214
Intangible assets acquired, which are subject to amortization,
consist of customer relationships of ¥32,747 million ($404,284
thousand), patented technologies of ¥11,316 million ($139,704
thousand), and other intangible assets of ¥12,234 million
($151,037 thousand). Canon has estimated the amortization
period for the customer relationships and patented technolo-
gies to be 5 years and 3 years, respectively. The weighted aver-
age amortization period for all intangible assets is approximately
4.4 years.
Goodwill recognized, which is assigned to the Offi ce Business
Unit for impairment testing, is attributable primarily to expected
synergies from combining operations of Océ and Canon. None of
the goodwill is expected to be deductible for income tax purposes.
The amount of net sales of Océ included in Canon’s consoli-
dated statement of income from the acquisition date for the
year ended December 31, 2010 was ¥246,518 million
($3,043,432 thousand).
The unaudited pro forma net sales as if Océ had been includ-
ed in Canon’s consolidated statements of income from the
beginning of the years ended December 31, 2010 and 2009
were ¥3,772,425 million ($46,573,148 thousand) and ¥3,554,316
million, respectively. Pro forma net income was not disclosed
because the impact on Canon’s consolidated statements of
income was not material.
Canon acquired businesses other than those described above
during the years ended December 31, 2010, 2009, and 2008 that
were not material to its consolidated fi nancial statements.