CONTRACTUAL OBLIGATIONS AND CONTINGENCIES The following table sets forth payments due by period for fixed contractual obligations as of December  31 ,  2004 : Total 2005 2006 – 2007 2008 – 2009 Thereafter (U.S. dollars in thousands) Long-term debt obligations  ( 1 ) $  151 , 241 $  18 , 540 $  57 , 080 $  52 , 080 $  23 , 541 Capital lease obligations — — — — — Operating lease obligations  ( 2 ) 68 , 843 12 , 989 25 , 347 24 , 942 5 , 565 Purchase obligations  ( 3 ) 65 , 925 51 , 511 9 , 732 1 , 105 3 , 577 Other long-term liabilities refl ected on  the balance sheet —  (4) Total $  286,009 $  83,040 $  92 , 159 $  78 , 127 $  32,683 In October  2004 , we were assessed by the Yokohama customs authorities in Japan a total of approximately $ 9 . 0  million,  net of any recovery of consumption taxes, for duties on products imported into Japan from October  2002  through October  2003 . The value and methodology we used for determining the amount of duties payable for these periods is consistent with  prior years and has been previously reviewed on several occasions by the audit division of the Japan customs authorities,  and reviewed and approved by the Valuation Department of the Yokohama customs authority. As such, we believe the as- sessment is improper and we have filed letters of protest with Yokohama customs. We expect to receive a reply within the  next couple of months. If necessary, we will appeal this issue to the Ministry of Finance in Japan. In order to file our letter  of protest with Yokohama customs, we were required to pay the amount that was assessed. In addition, the Audit Division  of Yokohama customs has recently completed an audit of the period from November  2003  through October  2004 . Although  we have not yet been informed of the results of this audit, we may be assessed for additional duties related to this period,  which we anticipate would be a similar amount to the prior assessment. We would file letters of protest with Yokohama  customs in a similar manner in case of any such assessment.  SEASONALITY AND CYCLICALITY In addition to general economic factors, we are impacted by seasonal factors and trends such as major cultural events and  vacation patterns. For example, most Asian markets celebrate their respective local New Year in the first quarter, which  generally has a negative impact on that quarter. We believe that direct selling in Japan, the United States and Europe is  also generally negatively impacted during the month of August, which is in our third quarter, when many individuals,  including our distributors, traditionally take vacations. We have experienced rapid revenue growth in certain new markets following commencement of operations. This initial  rapid growth has often been followed by a short period of stable or declining revenue, then followed by renewed growth  fueled by product introductions, an increase in the number of active distributors and increased distributor productivity.  The contraction following initial rapid growth has been more pronounced in certain new markets, due to other factors such  as business or economic conditions or distributor distractions outside the market. ( 1 ) Long-term debt excludes estimated interest payments under these obligations since a significant portion of our long-term debt is Japanese  yen denominated. We anticipate interest expense on this long-term debt to be similar to our  2004  interest expense, which was $ 5 . 9  million.  In February  2005 , we made an additional borrowing under the Shelf Facility in Japanese yen denominated senior notes in the amount of  3 . 1 billion yen (see Note  8  to the Consolidated Financial Statements). ( 2 ) Operating leases include corporate office and warehouse space with two entities that are owned by certain officers and directors of our com- pany who are also founding shareholders. Total payments under these leases were $ 3 . 6  million for the year ended December  31 ,  2004  with  remaining long-term obligations under these leases of $ 23 . 5  million.  ( 3 ) We are also party to acquisition agreements related to the BioPhotonic Scanner pursuant to which contingent payments of up to $ 5 . 5  million  and  937 , 500  shares of our Class A common stock may be made if certain operating and revenue targets are met, based on the BioPhotonic  Scanner in driving results. These amounts are not included in the table above. ( 4 ) Other long-term liabilities reflected on the balance sheet primarily consist of long-term tax related balances, which totaled $ 29 . 9  million as  of December  31 ,  2004. 47