Acer 2010 Annual Report Download - page 54

ACER INCORPORATED 2010 ANNUAL REPORT
104
FINANCIAL STANDING
105
and trademarks and trade names with indenite useful lives and the respective CGUs to which they are
allocated as of December 31, 2009 and 2010, were as follows:
December 31, 2009
ITRO-EMEA ITRO-PA ITRO-AAP ITRO-China ITRO-TWN E-Ten SHBG
NT$ NT$ NT$ NT$ NT$ NT$ NT$
Goodwill 12,061,458 4,698,297 2,511,387 137,919 646,380 221,424 1,682,869
Trademarks
& trade names 3,328,857 2,308,646 1,149,623 45,180 62,867 450,900 -
December 31, 2010
ITRO-EMEA ITRO-PA ITRO-AAP ITRO-China ITRO-TWN E-Ten SHBG
NT$ NT$ NT$ NT$ NT$ NT$ NT$
Goodwill 9,956,021 3,855,027 2,062,580 2,121,561 560,268 221,424 1,682,869
Trademarks
& trade names 3,341,867 2,331,711 1,161,109 45,632 63,495 450,900 -
Each CGU to which the goodwill is allocated represents the lowest level within the Consolidated
Companies at which the goodwill is monitored for internal management purposes. Based on the results
of impairment tests conducted by the Company’s management, there was no evidence of impairment of
goodwill and trademarks and trade names as of December 31, 2009 and 2010. The recoverable amount
of a CGU was determined based on the value in use, and the related key assumptions were as follows:
(i) The cash flow projections based on historical operating performance, future financial budgets
approved by management covering a 5-year period.
(ii) Discounted rates used to determine the value in use for each of the CGUs were as follows:
ITRO-EMEA ITRO-PA ITRO-AAP ITRO-China ITRO-TWN E-Ten SHBG
2009 12.9% 10.9% 16.9% 20.4% 15.7% 19.7% 16.0%
2010 15.2% 12.1% 19.1% 21.2% 17.6% 21.2% 17.6%
(15) Other nancial assets－non-current
December 31, 2009 December 31, 2010
NT$ NT$ US$
Refundable deposits 771,957 956,241 32,827
Non-current receivables 17,754 82,260 2,824
789,711 1,038,501 35,651
(16) Short-term borrowings
December 31, 2009 December 31, 2010
NT$ NT$ US$
Bank loans 548,059 1,651,630 56,699
For the years ended December 31, 2009 and 2010, the interest rate on the above bank loans ranged from
0.9% to 1.95% and from 0.69% to 15.5%, respectively. As of December 31, 2009 and 2010, the unused
credit facilities were NT$29,125,833 and NT$39,584,674, respectively.
(17) Bonds Payable
December 31, 2009 December 31, 2010
NT$ NT$ US$
Convertible Bonds Payable - 13,103,887 449,842
On August 10, 2010, the Company issued US$300,000 of zero coupon overseas convertible bonds due 2015
(the “2015 Bond”) and US$200,000 of zero coupon overseas convertible bonds due 2017 (the “2017 Bond”)
at the Singapore Exchange Securities Trading Limited, for the purpose of purchasing merchandise in line
with business growth. The signicant terms and conditions of convertible bonds are as follows:
(a) The 2015 Bonds
i Par value US$300,000
ii Issue date August 10, 2010
iii Maturity date August 10, 2015
iv Coupon rate 0%
v Conversion
Bondholders may convert bonds into the Company’s common shares at any time starting the 41th
day from the issue date until 10 days prior to the maturity date. The conversion price will initially
be NT$110.76 per common share, with a fixed exchange rate of NT$31.83 = US$ 1.00, subject
to adjustment by the formula provided in the issue terms if the Company’s outstanding common
shares are increased.
vi Redemption at the option of the bondholders
A. Bondholders shall have the right, at such holder’s option, to require the Company to redeem, in
whole or in part, the 2015 Bonds held by such holder at a redemption price of 101.297% of their
principal amount in US dollars on August 10, 2013.
B. In the event that the Company’s common shares are ofcially delisted from the Taiwan Securities
Exchange, each bondholder shall have the right, at such holder’s option, to require the Company
to redeem the 2015 Bonds, in whole or in part, at 2015 Early Redemption Amount. The 2015
Early Redemption Amount represents an amount equal to 100% of the principal amount of the
2015 Bonds plus a gross yield of 0.43% per annum (calculated on a semi-annual basis) at the
relevant date.
C. If a change of control (as dened in the issue terms) occurs, each bondholder shall have the
right, at such holder’s option, to require the Company to redeem the 2015 Bonds, in whole or in
part, at 2015 Early Redemption Amount.
vii Redemption at the option of the Company
The Company shall redeem the 2015 Bonds, in whole or in part, at the 2015 Early Redemption
Amount, in the following cases: