HTC 2008 Annual Report Download - page 84

Financial Information | 33
32 | 2008 Annual Report
In August 2000, the Company acquired 100%
equity interest in H.T.C. (B.V.I.) Corp. for
NT$12,834 thousand and accounted for this
investment by the equity method. As of
December 31, 2008 the Company had increased
this investment to NT$1,860,562 thousand
(US$56,724 thousand). Because the registration
of this investment was not completed on
December 31, 2008, the amounts of NT$316,656
thousand (US$9,654 thousand) were temporarily
accounted for as “prepayments for long-term
investments.” H.T.C. (B.V.I.) Corp. makes
investments on behalf of the Company.
In April 2006, the Company acquired 92% equity
interest in BandRich Inc. for NT$135,000 thousand
and accounted for this investment by the equity
method. In May 2006, BandRich Inc. issued
12,000 thousand shares of common stock at a
price of NT$12.50 per share of which the Company
didn’t purchase. The Company’s ownership
percentage declined from 92% to 51% and
resulted in capital surplus - long term equity
investments of NT$15,845 thousand.
In September 2006, the Company acquired 100%
equity interest in HTC HK, Limited for NT$1,277
thousand and accounted for this investment by the
equity method.
In January 2007, the Company acquired 100%
equity interest in Communication Global
Certification Inc. for NT$280,000 thousand and
accounted for this investment by the equity
method.
In July 2007, the Company acquired 100% equity
interest in High Tech Computer Asia Pacific Pte.
Ltd. for NT$560,660 thousand and accounted for
this investment by the equity method. As of
December 31, 2008, the Company had increased
this investment to NT$2,023,774 thousand
(US$61,700 thousand).
In April 2008, the Company made a new
investment of US$350 thousand and transferred its
bond investment of US$1,000 thousand to
convertible preferred stocks issued by Vitamin D
Inc. As a result, the Company acquired 27%
equity interest in Vitamin D Inc. for NT$40,986
thousand, (US$1,250 thousand), enabling the
Company to exercise significant influence over this
investee. Thus, the Company accounts for this
investment by the equity method. In September
2008, Vitamin D Inc. issued 2,375 thousand
convertible preferred shares, but the Company did
not buy any of these shares. Thus, the
Company’s ownership percentage declined from
27% to 26%, and there was a capital surplus - long
term equity investments of NT$ 1,689 thousand
(US$52 thousand).
In July 2008, the Company acquired 100% equity
interest in HTC Investment Corporation for
NT$300,000 thousand (US$9,146 thousand) and
accounted for this investment by the equity
method.
In December 2007, the Company and its
subsidiary, High Tech Computer Asia Pacific Pte.
Ltd., acquired 1% and 99%, respectively, equity
interest in PT. High Tech Computer Indonesia for
NT$62 thousand and NT$6,122 thousand,
respectively. As a result, the Company accounted
for this investment by the equity method.
On its equity-method investments, the Company
had a loss of NT$12,554 thousand and a gain of
NT$103,997 and a loss of NT$57,289 thousand
(US$1,747 thousand) in 2006, 2007 and 2008,
respectively.
The financial statements of equity-method
investees had been examined by the Company’s
independent auditors.
Under the revised Statement of Financial
Accounting Standards No. 7, “Consolidated
Financial Statements,” which took effect on
January 1, 2005, the Company included the
accounts of all its direct and indirect subsidiaries in
the consolidated financial statements as of and for
the years ended December 31, 2006, 2007 and
2008. All significant intercompany balances and
transactions have been eliminated.
15.PROPERTIES
Properties as of December 31, 2006, 2007 and 2008 were as follows:
2006
2007
2008
Carrying
Value
Carrying
Value
Cost
Accumulated Depreciation
Carrying Value
NT$
NT$
NT$
NT$
NT$
US$
(Note 3)
Land
$
610,293
$
610,293
$
3,568,124
$
-
$
3,568,124
$
108,784
Buildings and structures
735,785
1,816,889
2,853,645
524,564
2,329,081
71,009
Machinery and equipment
1,020,799
1,037,491
3,927,100
2,700,928
1,226,172
37,383
Molding equipment
-
-
172,632
172,632
-
-
Computer equipment
41,304
51,268
264,248
192,061
72,187
2,201
Transportation equipment
706
484
2,732
1,057
1,675
51
Furniture and fixtures
23,824
29,055
127,202
98,793
28,409
866
Leased assets
3,927
3,141
4,712
2,356
2,356
72
Leasehold improvements
2,656
21,336
95,208
36,436
58,772
1,792
Prepayments for land, construction-in-progress and
equipment-in-transit
470,330
145,944
88,875
-
88,875
2,709
$
2,909,624
$
3,715,901
$
11,104,478
$3,728,827
$
7,375,651
$
224,867
In August 2008, the Company acquired from
Runtop Inc. land and building, with areas of
approximately 10.6 thousand square meters and
40 thousand square meters, respectively, for
NT$900,000 thousand (US$27,439 thousand) to
have more office space and to build parking lots,
dormitory, etc.
In December 2008, the Company bought the land -
about 8.3 thousand square meters - from Yulon
Motors Ltd. for NT$3,335,000 thousand
(US$101,677 thousand) to build the Taipei R&D
headquarters in Xindian City. Of the purchase
price, 80% had been paid and 80% of ownership of
the land had been transferred to the Company as
of December 31, 2008. Yulon Motors Ltd. should
transfer the remaining 20% of ownership of the
land before December 20, 2009, and the Company
should pay the remaining 20% after completing the
land transfer registration.
In December 2008, the Company’s board of
directors resolved to participate in the third
auction held by Taiwan Financial Asset
Service Corporation (“TFASC”) and
acquired the land - about 16.5 thousand
square meters - from Hualon Corporation
for NT$355,620 thousand (US$10,842
thousand). Of the purchase price,
NT$71,130 thousand (US$2,169 thousand)
had been paid by the end of 2008, and the
remaining NT$284,490 thousand
(US$8,673 thousand) was paid on January
7, 2009.
16.ACCRUED EXPENSES
Accrued expenses as of December 31,
2006, 2007 and 2008 were as follows: