Acer 2005 Annual Report Download - page 78

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- 73 -
(b) Others
(1) As of December 31, 2004 and 2005, the Company had provided outstanding stand-by
letters of credit totaling NT$178,904 and NT$134,160, respectively, for bidding sales
contracts and for customs duty contract implementation.
(2) The Consolidated Companies have entered into several operating lease agreements for
warehouses, land and buildings. Minimum lease payments are summarized as follows:
NT$ US$
2006 84,045 2,560
2007 223,421 6,804
2008 133,373 4,062
2009 98,334 2,995
20010 and thereafter 114,716 3,494
653,889 19,915
8. Significant Loss from Casualty: None
9. Subsequent Events
(a) In January 2005, the Company’ s subsidiary, TWP, sold its online game business of entities
located in Taiwan, China, and Hong Kong to GigaMedia Limited and GigaMedia’ s affiliates.
The selling price amounted to approximately NT$1.48 billion.
(b) On March 28, 2005, the Company’ s subsidiary, AAC, sold its land and buildings to a
non-affiliate. The selling price amounted to US$18 million, resulting a gain on disposal of
US$2 million.
10. Other
(a) Total personnel, depreciation and amortization expenses incurred for the years ended
December 31, 2004 and 2005, are summarized below:
2004 2005
Operating
expense
Deduction of
investment
income
Cost of
revenues
Total
Operating
expense
Deduction of
investment
income
Cost of
revenues
Total
NT$ NT$ NT$ NT$ NT$ NT$ NT$ NT$
Personnel:
Salaries 6,297,156 74,522 - 6,371,678 6,323,981 32,539 - 6,356,520
Labor and health
insurance
236,059 2,335 - 238,394 273,857 477 - 274,334
Pension 347,550 1,156 - 348,706 347,814 22,766 - 370,580
Other 379,705 204 - 379,909 233,785 14 - 233,799
Depreciation 1,015,196 1,619 60,975 1,077,790 925,084 532 50,732 976,348
Amortization 649,977 754 13,436 664,167 516,499 116 3,331 519,946
(b) Reclassifications
Certain amounts in the consolidated financial statements as of and for the year ended
December 31, 2004, have been reclassified to conform to the 2005 presentation for
comparative purposes. These reclassifications do not significantly impact the presentation of
the consolidated financial statements.