HTC 2007 Annual Report Download - page 92

AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
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16. OTHER CURRENT LIABILITIES
Other current liabilities as of December 31, 2005,
2006 and 2007 were as follows:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Reserve for warranty expenses $ 964,503 $1,393,995 $3,469,957 $106,998
Agency receipts 86,845 145,373 226,124 6,973
Advance receipts 113,471 57,426 163,135 5,030
Directors' remuneration 21,842 21,842 21,842 674
Employee bonus payable - 451,000 - -
Others 11,692 43,367 88,974 2,744
$1,198,353 $2,113,003 $3,970,032 $122,419
The Company provides warranty service for
one to two years, depending on the contracts
with our customers. The warranty liability is
estimated on management's evaluation of the
products under warranty and recognized as
warranty liability.
Agency receipts were primarily overseas
value-added tax, employees' income tax,
insurance, and other items.
17. BONDS PAYABLE
On January 29, 2003, the Company issued zero
coupon convertible bonds with an aggregate amount
of US$66,000 thousand and maturity in 2008. The
issue price was 100% of the US$1,000 par value.
Under the bond terms, a bondholder has the right to
request the Company to redeem the bonds on April
29, 2004 at their accreted principal amount. Thus,
some bondholders requested the Company to
redeem the bonds amounting to US$2,000
thousand, and other bondholders requested the
conversion of bonds amounting to US$64,000
thousand into 17,336 thousand shares. As a result,
the Company had no outstanding bonds payable as
of April 30, 2005.
The number of shares issued upon the conversion of
any bond is determined by dividing the principal
amount of the bonds (translated into New Taiwan
dollars at a fixed exchange rate of NT$34.658 to
US$1.00) by the conversion price in effect on the
conversion date.
The initial conversion price was NT$205.32 per
share at the time of issuance. Upon the distribution
of stock dividends and the issuance of additional
common shares, the conversion price will be
adjusted.
VI
•The construction of a new office building was co m pleted in
S epte m ber 2007, and a construction a m ount of
N T$933,546 thousand ( U S $28,786 thousand ) was
transferred fro
m prepay m ents for construction in progress
to buildings and structures. Prepay
m ents for equip m ent-
in-transit and construction-in-progress referred to building
construction and
m iscellaneous equip m ent.
15. ACCRUED EXPENSES
Accrued expenses as of December 31, 2005, 2006
and 2007 were as follows:
2005 2006 2007
NT$ NT$ NT$ US$(Note 3)
Marketing $ - $ 983,088 $3,190,918 $ 98,394
Salaries and bonuses 724,267 828,071 989,143 30,501
Research materials 48,013 128,505 193,859 5,978
Professional fees 40,595 53,074 148,815 4,589
Export expenses 187,324 200,083 139,512 4,302
Meals and welfare 36,978 57,598 58,287 1,797
Insurance 45,307 42,403 47,460 1,463
Travel 23,689 58,027 40,777 1,257
Repairs and maintenance 23,690 23,759 33,686 1,039
Others 112,399 109,470 283,952 8,756
$1,242,262 $2,484,078 $5,126,409 $158,076
•The Co m pany accrued m arketing expenses on the basis of
related agree
m ents and other factors that would
significantly affect the accruals.
14. PROPERTIES
Properties as of December 31, 2005, 2006 and 2007 were as follows:
2005 2006 2007
Carrying Carrying Accumulated
Value Value Cost Depreciation Carrying Value
NT$ NT$ NT$ NT$ NT$ US$(Note 3)
Land $ 610,293 $ 610,293 $ 610,293 $ - $ 610,293 $ 18,819
Buildings and structures 797,981 735,785 2,254,855 423,090 1,831,765 56,484
Machinery and equipment 1,063,205 1,170,572 3,966,723 2,626,773 1,339,950 41,318
Molding equipment - - 212,360 201,247 11,113 343
Computer equipment 49,202 73,830 284,260 186,886 97,374 3,002
Transportation equipment 1,334 1,167 3,195 2,492 703 22
Furniture and fixtures 46,039 51,056 213,934 115,842 98,092 3,025
Leased assets - 3,927 4,712 1,571 3,141 97
Leasehold improvements 14,688 49,797 119,672 40,366 79,306 2,445
Prepayments for construction-in-progress and equipment-in-transit 27,467 473,971 149,225 - 149,225 4,601
$ 2,610,209 $ 3,170,398 $ 7,819,229 $ 3,598,267 $ 4,220,962 $ 130,156
FINANCEI CONSOLIDATED REPORT l