D-Link 2005 Annual Report Download - page 61
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
(4) Others
D-Link purchased a plant located in the Neihu District of Taipei and leased it to GSEI. The
duration of the land lease agreement is from July 2004 to May 2005. In 2005 and 2004, the
rental income of $15,757 thousand and $16,303 thousand, respectively, had been received.
GSEI provided a guarantee deposit amounting to $8,000 thousand, which was returned at the
expiry of the lease agreement.
6. Pledged Assets
Assets pledged as collateral as of December 31, 2005 and 2004, are summarized as follows:
December 31,
Pledged assets Pledged to secure 2005 2004
Time deposits
(recorded in restricted assets)
Guarantees of credit lines
$ 194,540 1,595,013
Time deposits
(recorded in other financial
assets–noncurrent)
Guarantees of import tax
15,500 4,000
$ 210,040 1,599,013
7. Significant Commitments and Contingencies
(a) Major operating leases
D-Link and Alpha purchased a plant located in the Hsinchu Science Park and entered into a land
lease agreement with the Science Park Bureau. The leasing expenses for the land are as below:
Lease Lessor Description
Rental expense
in 2005
Payment
method
Land Hsinchu Science Park Sept. 1989-Sept. 2009 $4,800 thousand Monthly
Land Hsinchu Science Park Aug. 2001-Dec. 2020 $5,469 thousand Monthly
Land Hsinchu Science Park Nov. 2003-Dec. 2022 $7,290 thousand Monthly
According to current leasing contracts, the minimum future leasing expenses for the land and
offices leased by D-Link and subsidiaries are as below:
Years Amount
2006 $ 178,661
2007 148,364
2008 123,318
2009 112,620
2010 and after 244,974
$ 807,937