Asus 2009 Annual Report Download - page 116

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ASUSTEK COMPUTER INC.
Notes to Financial Statements
(d) Call option: The Company could redeem the convertible bonds at par value at any time during
the period from December 8, 2006, to September 28, 2011, under the following conditions: the
closing price of the common shares on each of 30 consecutive trading days reaches or exceeds
50% of the conversion price, or 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 after the
3rd and 4th year.
The information on the above bonds payable is as follows:
2009/12/31 2008/12/31
Aggregate principal amount $ 12,000,000 12,000,000
Accumulated converted amount (7,000) (7,000)
Accumulated redeemed amount (8,187,100) (496,600)
Discount on bonds payable (158,604) (738,062)
3,647,296 10,758,338
Less: Convertible bonds payable –redeemable
within one year (3,647,296) (10,758,338)
Corporate bonds payable – net $ - -
Debt-component embedded derivative:
－ call/put option and conversion price reset
option $ 9,515 193,140
－ conversion rights 276,308 666,791
$ 285,823 859,931
2009/1/1~12/31 2008/1/1~12/31
Gain/(loss) on valuation of financial liabilities $ 179,298 942,440
Interest expense $ 128,051 267,507
The Company reclassified the convertible bonds and the related financial liabilities as current
liabilities as of December 31, 2009, because the bondholders could opt to request the Company
to redeem the convertible bonds on November 7, 2010.
(8) Pension
A. Because of the spin-off, except for a few foreign employees, the Company had settled its
financial obligation to employees under the pension plan accounted for based on SFAS No. 18
as of December 31, 2007. Thereafter, the Company is subject to the Labor Pension Act.