HTC 2007 Annual Report Download - page 69

133132
AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
22.PERSONNEL EXPENSES, DEPRECIATION AND AMORTIZATION
2005 2006
NT$ NT$
Function Classified as Classified as Classified as Classified as
Expense Item Operating Costs Operating Expenses Total Operating Costs Operating Expenses Total
Personnel expenses 1,253,363 1,460,432 2,713,795 1,399,381 1,980,666 3,380,047
Salary 1,077,001 1,266,704 2,343,705 1,167,170 1,736,364 2,903,534
Insurance 62,775 74,798 137,573 70,395 86,345 156,740
Pension 40,987 54,345 95,332 32,485 63,285 95,770
Others 72,600 64,585 137,185 129,331 94,672 224,003
Depreciation expense 361,055 221,312 582,367 367,879 233,503 601,382
Amortization 660 35,314 35,974 - 31,178 31,178
2007
NT$ US$(Note 3)
Function Classified as Classified as Classified as Classified as
Expense Item Operating Costs Operating Expenses Total Operating Costs Operating Expenses Total
Personnel expenses 1,511,827 2,357,008 3,868,835 46,618 72,680 119,298
Salary 1,261,420 2,029,616 3,291,036 38,896 62,585 101,481
Insurance 79,743 114,041 193,784 2,459 3,516 5,975
Pension 36,610 80,837 117,447 1,129 2,493 3,622
Others 134,054 132,514 266,568 4,134 4,086 8,220
Depreciation expense 279,752 245,303 525,055 8,626 7,564 16,190
Amortization - 30,951 30,951 - 954 954
VI
policy stipulates that only up to 95% of total
dividends may be distributed as cash dividends.
Had the Company recognized the employees'
bonuses of NT$531,000 thousand as expenses
in 2005, the pro forma earnings per share in
2005 would have decreased from NT$33.26 to
NT$31.76, which were not adjusted retroactively
for the effect of stock dividend distribution in
later years.
Had the Company recognized the employees'
bonuses of NT$2,105,000 thousand as
expenses in 2006, the pro forma earnings per
share in 2006 would have decreased from
NT$57.85 to NT$53.03, which were not adjusted
retroactively for the effect of stock dividend
distribution in the following year.
As of January 18, 2008, the date of the
accompanying independent auditors' report, the
appropriation of the 2007 earnings had not been
proposed by the Board of Directors. Information
on earnings appropriation can be accessed
online through the Market Observation Post
System on the Web site of the Taiwan Stock
Exchange.
21.TREASURY STOCK
On December 12, 2006, the Company's board of
directors passed a resolution to buy back 5,000
thousand Company shares from the open market. The
repurchase period was between December 13, 2006
and January 19, 2007, and the repurchase price
ranged from NT$601 to NT$800 per share. If the
Company's share price was lower than this price range,
the Company might continue to buy back its shares.
During the repurchase period, the Company bought
back 3,624 thousand shares, which were approved to
be retired by the Company's board of directors in April
2007, for NT$1,991,755 thousand (US$61,417
thousand). Other information on the treasury stock
transactions was as follows:
( In thousands of shares )
As of As of
January December
Purpose 1, 2007 Increase Decrease 31, 2007
For maintaining the Company's
credit and stockholders' equity 374 3,250 3,624 -
Based on the Securities and Exchange Act of the ROC,
the number of reacquired shares should not exceed
10% of the Company's issued and outstanding stocks,
and the total purchase amount should not exceed the
sum of the retained earnings, additional paid-in capital
in excess of par, and realized capital reserve. In
addition, the Company should not pledge it treasury
shares nor exercise voting rights on the shares before
their reissuance.
FINANCEI INDEPENDENT AUDITORS' REPORT l