Asus 2009 Annual Report Download - page 197

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193
ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
Rental expenses for each year are as follows:
Year
Amount
(in USD thousands)
2010 $ 1,464
2011 1,402
2012 1,451
2013 1,502
2014 and after 7,279
(7) PEGATRON and its subsidiaries entered into irrevocable construction contracts amounting to
$3,834,469 of which $185,385 is unpaid.
(8) WUJIANG WILL STAR entered into a contract with Wujiang City Government in 2006 to obtain
land use rights. As of December 31, 2009, the land use right amounting to RMB 51,465,000 were
not paid and obtained.
8. Significant Disaster Loss: None.
9. Subsequent Events:
The Company held its extraordinary shareholders’ meeting on February 9, 2010, and passed a
resolution for the spin-off of its ODM business. Such resolution requires the Company to spin off the
ODM assets and business (the Company's 100%-owned long-term equity investment in Pegatron) to
the Company's wholly owned existing subsidiary Pegatron International Investment Co., Ltd. Pegatron
International Investment Co., Ltd. will issue new shares to the Company and the shareholders of the
Company as consideration. The Company will have a capital reduction of $36,097,609 or a capital
reduction of approximately 85%. It is expected that the Company will acquire approximately 25% of
the equity in Pegatron International Investment Co., Ltd. and that the shareholders of the Company
will in total acquire approximately 75% of the equity in Pegatron International Investment Co., Ltd.
The spin-off date is expected to be June 1, 2010.