Acer 2009 Annual Report Download - page 50

(d) On December 6, 2007, the Consolidated Companies entered into a Basic Term Agreement with the
International Olympic Committee regarding participation in the Olympic Partners Program (the “Top
Programme”). Pursuant to such agreement, the Consolidated Companies have agreed to pay a certain amount
of money in cash, merchandise and service to obtain marketing rights and become one of the partners in “Top
Porgramme” across the period from January 1, 2009 to December 31, 2012. Such expenditure on sponsorship
was capitalized as “Intangible assets” in the accompanying consolidated nancial statements, and amortized
using the straight-line method during the aforementioned four-year period.
(14) Other nancial assets – noncurrent
December 31, 2008 December 31, 2009
NT$ NT$ US$
Refundable deposits 781,080 771,957 24,101
Noncurrent receivables 87,680 17,754 554
868,760 789,711 24,655
(15) Short-term borrowings
December 31, 2008 December 31, 2009
NT$ NT$ US$
Bank loans 1,086,851 548,059 17,111
The Consolidated Companies pledged certain assets as collateral for these loans according to the bank loan
contracts. Refer to note 6 for a description of the pledged assets.
(16) Long-term debts
December 31, 2008 December 31, 2009
NT$ NT$ US$
Citibank syndicated loan 12,200,000 12,200,000 380,893
Other bank loans 184,920 171,856 5,365
Less: current installments (8,250,000) - -
4,134,920 12,371,856 386,258
The Company entered into a syndicated loan agreement with Citibank, the managing bank of the syndicated
loan, on October 11, 2007, and the terms of this loan agreement were as follows:
December 31,
2008
December 31,
2009
Type of Loan Creditor Credit Line Term NT$ NT$
Unsecured
loan
Citibank and
other banks
Term tranche of
NT$16.5 billion;
re-year limit
during which
revolving credits
disallowed
Repayable in 4 semi-annual
installments starting from April 2009.
An advance repayment of NT$4.3
billion was made in the rst quarter of
2008. In May 2009, an amendment to
the agreement was made, under which,
the loan is repayable in 4 semi-annual
installments starting from April 2011.
12,200,000 12,200,000
Revolving tranche
of NT$3.3 billion;
three-year limit
One-time repayment in full in October
2010.
- -
Less: current installment (8,250,000) -
3,950,000 12,200,000
The above syndicated loan bore interest at a rate of 3.06% in 2008 and 1.67% in 2009. According to the loan
agreement, the Company is required to maintain certain nancial ratios calculated based on annual and semi-
annual audited financial statements. If the Company fails to meet any of the financial ratios, the managing
bank will request the Company in writing to take action to improve within agreed days. No assertion of breach
of contract will be tenable if the financial ratios are met within agreed days. As of December 31, 2009, the
Company was in compliance with all such nancial covenants.
(17) Retirement plans
The following table sets forth the actuarial information related to the Consolidated Companies’ dened benet
retirement plans:
(a) Reconciliation of funded status of the plans to prepaid pension cost (accrued pension liabilities):
2008
Plan assets in excess
of accumulated
benet obligation
Accumulated benet
obligation in excess
of plan assets
NT$ NT$
Benet obligation:
Vested benet obligation (124,967) (33,041)
Nonvested benet obligation (469,607) (100,237)
Accumulated benet obligation (594,574) (133,278)
Projected compensation increases (335,873) (52,666)
Projected benet obligation (930,447) (185,944)
Plan assets at fair value 643,793 59,610
Funded status (286,654) (126,334)
Unrecognized prior service cost - 6,596
Unrecognized pension loss 459,393 39,982
Unrecognized transition (assets) obligation (2,187) 25,426
Minimum pension liability adjustment - 659
Prepaid pension cost (accrued pension liabilities) 170,552 (53,671)
Acer Incorporated 2009 Annual Report
94.
Acer Incorporated 2009 Annual Report
95. Financial Standing