D-Link 2004 Annual Report Download - page 48

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20
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
December 31,
2003 2004
Discount rate 3.50% 3.50%
Rate of increase in future compensation levels 3.00% 3.00%
Expected long-term rate of return on plan assets 3.50% 3.50%
To cope with the spin-off plan stated in note 1, D-Link transferred 1,351 ODM/OEM department
employees to Alpha on August 16, 2003, and committed to compensate Alpha for relevant pension
liability of $226,537 thousand based on the actuarial calculation. In proportion to the number of
employees transferred, D-Link recognized curtailment gain of $220,554 thousand. The net impact of
the pension obligation amounted to $5,983 thousand, which was recorded as other losses.
14. Stockholders’ Equity
(a) Common stock
In 1998, D-Link issued 5 million Global Depository Receipts (“GDRs”). Each GDR represents 5
common shares and was offered at ten U.S. dollars and thirteen cents per GDR. The GDRs were
publicly listed on the Luxembourg Stock Exchange at September 24, 1998.
Pursuant to a stockholders’ resolution on May 8, 2003, D-Link increased its common stock by
$96,000 thousand through the transfer of employee bonuses. The capital increase was registered
in July 2003. The capital increase was registered with the government authorities in July 2003.
Pursuant to a stockholder’ s resolution on May 28, 2004, D-Link increased its common stock by
$353,484 thousand through the transfer of employees’ bonuses and capital surplus of $100,000
thousand and $253,484 thousand, respectively. The capital increase was registered with the
government authorities in August 2004.
As of December 31, 2003 and 2004, the authorized capital totaled $6,600,000 thousand
(including $1,000,000 thousand authorized for the conversion of convertible bonds and $250,000
thousand authorized for the issuance of the employee stock options). As of December 31, 2003
and 2004, the issued capital amounted to $5,137,771 thousand and $5,475,211 thousand,
respectively. The par value of D-Link’ s common stock is ten New Taiwan dollars per share. On
February 28, 2005, because the convertible bonds had been fully converted or redeemed revised,
a board of directors resolution revised to $0 the amount authorized for the conversion of
convertible bonds.