Asus 2008 Annual Report Download - page 112

108
ASUSTEK COMPUTER INC.
Notes to Non-Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
B. Conversion period: Each bondholder has the right to convert all or from time to
time any portion of its convertible bonds into common shares during the conversion
period (up to 31 days after the original issued date to 10 days before the maturity
date).
C. Conversion price and adjustment: The conversion price is $105.4 per common share
initially. The conversion price will be adjusted upon the occurrence of increasing
number of common shares. Also, the conversion price will be reset in accordance
with certain conversion terms. The conversion price was subsequently adjusted to
$78.3 per common share.
D. Call option: The Company could redeem the convertible bonds at its par value at
any time during the period from December 8, 2006 to September 28, 2011 under the
following conditions: (i) the closing price of the common shares on each of 30
consecutive trading days reaches or exceeds 50% of the conversion price, or (ii) the
outstanding balance of the bonds is less than 10% of the original issuance.
E. Put option: Each bondholder has the right to put the convertible bonds at par value
ahead of time when the convertible bonds have been issued after 3 or 4 years.
(5) The Company adopted the R.O.C. SFAS No. 34 “Accounting for Financial Instruments”
and No. 36 “Disclosure and Presentation of Financial Instruments” to account for its
convertible bonds issued after January 1, 2006. Such an adoption resulted in
recognition of interest expense of $269,514 thousand and $270,300 thousand due to
amortization of discount on bonds payable, and gain/(loss) on valuation of financial
liabilities of $942,440 thousand and $(250,921) thousand for the years ended December
31, 2008 and 2007 (adjusted), respectively.
(6) Domestic non-collateralized convertible bonds that have been redeemed or converted
into the Company’s capital stock from the issuance date to December 31, 2008 and 2007,
respectively, are as follows:
2008
2007
Converted
shares
Converted and
redeemed amount
Converted
shares
Converted and
redeemed amount
Before 1/1
72,614
shares
$7,000
-
shares
$-
Conversion
-
shares
-
72,614
shares
7,000
Redemption
-
shares
496,600
-
shares
-
Total
72,614
shares
$503,600
72,614
shares
$7,000