D-Link 2004 Annual Report Download - page 42

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14
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
8. Assets Held for Lease and Idle Assets
D-Link purchased a plant located in the Neihu district of Taipei from Globe Sun Electronic, Inc. for
$880,000 thousand, as appraised by China Credit Information Service, Ltd. The plant was
temporarily leased to Globe Sun Electronic Inc. As of December 31, 2004, the plant was recorded as
assets held for lease. As of December 31, 2004, the components of assets held for lease were as below:
December
31, 2004
Cost
Land $ 588,930
Building 617,920
1,206,850
Accumulated depreciation
Building 59,413
Net carrying amount $ 1,147,437
D-Link transferred a plant and certain machinery and equipment not in use for operations to idle
assets, and related allowance for evaluation loss on idle assets was as below:
December
31, 2004
Cost
Building $ 167,499
Machinery and equipment 5,741
Other equipment 2,600
175,840
Accumulated depreciation
Building 59,646
Machinery and equipment 3,680
Other equipment 1,961
65,287
Less: Allowance for losses on idle asset valuation (35,268)
Net carrying amount $ 75,285
9. Insurance Coverage of Property, Plant and Equipment
As of December 31, 2003 and 2004, insurance coverage of property, plant and equipment, assets held
for lease, and idle assets amounted to $3,337,060 thousand and $2,854,328 thousand, respectively.