Acer 2008 Annual Report Download - page 50

Acer Incorporated 2008 Annual Report96
Financial Standing
Acer Incorporated 2008 Annual Report 97
(17) Long-term debt
December 31, 2007 December 31, 2008
NT$ NT$ US$
Citibank syndicated loan 16,500,000 12,200,000 371,747
Other bank loans 308,242 184,920 5,634
Less: current installments (17,366) (8,250,000) (251,386)
16,790,876 4,134,920 125,995
The Company entered into a syndicated loan agreement with Citibank, the managing bank of the syndicated
loan, on October 11, 2007, and the terms were as follows:
December 31,
2007
December 31,
2008
Type of Loan Creditor Credit Line Term NT$ NT$
Unsecured
loan
Citibank and
other banks
(1) Term tranche of
NT$16.5 billion;
three-year limit
during which
revolving credits
disallowed
(1) Repayable in 4 semi-
annual installments
starting from April 2009.
An advance repayment
of $4,300,000 was made
in the rst quarter of
2008.
16,500,000 12,200,000
(2) Revolving tranche of
NT$3.3 billion; three-
year limit
(2) One-time repayment in
full in October 2010.
- -
Less: current installment -(8,250,000)
16,500,000 3,950,000
The interest rate of the above-mentioned syndicated loan was 3.02% in 2007 and 3.06% in 2008. According
to the loan agreement, the Company is required to maintain certain nancial ratios based on annual and semi-
annual audited nancial statements. If the Company fails to meet any of the nancial ratios, the managing
bank will request in writing that the Company take action to improve within 30 days. No assertion of
breach of contract will be tenable if the nancial ratios are met within 30 days. Based on the 2008 nancial
statements, the Company has complied with the aforementioned debt covenants.
(18) Retirement plans
The following table sets forth the benet obligation and accrued pension liabilities related to the Consolidated
Companies’ dened benet retirement plans:
2007
Plan assets in excess
of accumulated benet
obligation
Accumulated benet
obligation in excess
of plan assets
NT$ NT$
Benet obligation:
Vested benet obligation - (108,087)
Nonvested benet obligation - (491,318)
Accumulated benet obligation -(599,405)
Projected compensation increases -(559,351)
Projected benet obligation -
(1,158,756)
Plan assets at fair value - 507,358
Funded status -(651,398)
Unrecognized pension loss - 730,346
Unrecognized prior service cost - 558
Unrecognized transition (assets) obligation - 1,829
Minimum pension liability adjustment - (172,784)
Accrued pension liabilities - (91,449)
2008
Plan assets in excess
of accumulated
benet obligation
Accumulated benet
obligation in excess
of plan assets
NT$ US$ NT$ US$
Benet obligation:
Vested benet obligation (124,967) (3,808) (33,041) (1,007)
Nonvested benet obligation (469,607) (14,309) (100,237) (3,054)
Accumulated benet obligation (594,574) (18,117) (133,278) (4,061)
Projected compensation increases (335,873) (10,235) (52,666) (1,605)
Projected benet obligation (930,447) (28,351) (185,944) (5,666)
Plan assets at fair value 643,793 19,617 59,610 1,816
Funded status (286,654) (8,734) (126,334) (3,850)
Unrecognized pension loss 459,393 13,998 39,982 1,218
Unrecognized prior service cost - - 6,596 201
Unrecognized transition (assets) obligation (2,187) (67) 25,426 775
Minimum pension liability adjustment - - 659 21
Prepaid pension cost (Accrued pension liabilities) 170,552 5,197 (53,671) (1,635)