HTC 2009 Annual Report Download - page 70

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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 to have more office space.
In December 2008, the Company bought land - about 8.3 thousand
square meters - from Yulon Motors Ltd. for NT$3,335,000 thousand to
build the Taipei R&D headquarter 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, 2009. Under a
revised agreement signed in December 2009, Yulon Motors Ltd. should
transfer to the Company the remaining 20% of ownership of the land
by March 31, 2010 instead of by December 20, 2009. The Company
should pay the remaining 20% purchase price 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.
Besides, in January 2009, the Company acquired another land - about
39 thousand square meters - near the Company in Taoyuan for
NT$791,910 thousand (US$24,755 thousand) from a related party,
Syuda Construction Company, to expand factory area.
There were no interests capitalized for the years ended December 31,
2008 and 2009, respectively.
16. ACCRUED EXPENSES
Accrued expenses as of December 31, 2008 and 2009 were as
follows:
2008 2009
NT$ NT$ US$(Note 3)
Marketing $ 5,810,533 $ 8,572,963 $ 267,989
Bonus to employees 6,164,889 4,859,236 151,899
Services 1,180,716 1,115,099 34,858
Salaries and bonuses 1,012,048 820,342 25,644
Export 447,814 460,401 14,392
Research materials 397,075 405,916 12,689
Donation - 217,800 6,808
Meals and welfare 99,952 111,745 3,493
Insurance 69,978 74,607 2,332
Repairs and maintenance 76,171 63,957 1,999
Research and development 65,600 49,200 1,538
Pension cost 48,405 47,860 1,496
Freight 13,808 27,312 854
Travel 30,714 22,325 698
Others 215,233 279,211 8,728
$ 15,632,936 $ 17,127,974 $ 535,417
Based on the resolution passed by the Company’s board of directors in
February 2009, the employee bonuses for 2009 should be
appropriated at 18% of net income before deducting employee bonus
expenses.
The Company accrued marketing expenses on the basis of related
agreements and other factors that would significantly affect the
accruals.
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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.
In September 2009, the Company acquired 100% equity interest in
HTC I Investment Corporation for NT$295,000 thousand (US$9,222
thousand) and accounted for this investment by the equity method.
In October 2009, the Company and its subsidiary, High Tech Computer
Asia Pacific Pte. Ltd., acquired 1% and 99%, respectively, equity
interest in HTC Holding Cooperatief U.A. for NT$13 thousand (US$0
thousand) and NT$1,325 thousand (US$41 thousand), respectively.
As a result, the Company accounted for this investment by the equity
method.
In December 2009, the Company invested in Huada Digital Corporation
for NT$245,000 thousand (US$7,659 thousand). Because the
registration of the investment was not completed on December 31,
2009, the investment was temporarily accounted for as “prepayments
for long-term investments.”
On its equity-method investments, the Company had a loss of
NT$57,289 thousand and a gain of NT$273,811 thousand (US$8,559
thousand) in 2008 and 2009, respectively.
The financial statements of equity-method investees had been
examined by the Company’s independent auditors.
Under the revised Statement of Financial Accounting Standards No. 7,
“Consolidated Financial Statements,” which took effect on January 1,
2005, the Company included the accounts of all its direct and indirect
subsidiaries in the consolidated financial statements as of and for the
years ended December 31, 2008 and 2009. All significant
intercompany balances and transactions have been eliminated.
15. PROPERTIES
Properties as of December 31, 2008 and 2009 were as follows:
2008 2009
Carrying Value Cost Accumulated Depreciation Carrying Value
NT$ NT$ NT$ NT$ US$(Notes3)
Land $ 3,568,124 $ 4,719,538 $ - $ 4,719,538 $ 147,532
Buildings and structures 2,329,081 3,174,986 652,346 2,522,640 78,857
Machinery and equipment 1,226,172 4,003,941 3,103,473 900,468 28,148
Molding equipment - 172,632 172,632 - -
Computer equipment 72,187 302,213 224,299 77,914 2,436
Transportation equipment 1,675 2,732 1,394 1,338 42
Furniture and fixtures 28,409 129,533 110,330 19,203 600
Leased assets 2,356 4,712 3,141 1,571 49
Leasehold improvements 58,772 96,014 54,240 41,774 1,306
Prepayments for land, construction-in- progress and
equipment-in-transit 88,875
29,731 - 29,731 929
$ 7,375,651 $ 12,636,032 $ 4,321,855 $ 8,314,177 $ 259,899
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