HTC 2009 Annual Report Download - page 91

16. SHORT-TERM BORROWINGS
Short-term borrowings as of December 31, 2008 and 2009 were as
follows:
2008 2009
NT$ NT$ US$ (Note 3)
Working capital loans,
annual interest at
1.27%-3.00% $ 75,000 $ 75,326 $ 2,261
17. ACCRUED EXPENSES
Accrued expenses as of December 31, 2008 and 2009 were as
follows:
2008 2009
NT$ NT$ US$ (Note 3)
Marketing $ 5,790,466 $ 8,784,378 $ 274,598
Bonus to employees 6,164,889 4,859,236 151,899
Salaries and bonuses 1,220,533 1,001,358 31,302
Research materials 539,071 529,935 16,566
Export 460,724 473,910 14,814
Services 520,383 458,735 14,340
Donation - 217,800 6,808
Meals and welfare 101,563 114,030 3,565
Insurance 74,061 78,411 2,451
Repairs and
maintenance 82,096 64,893 2,029
Research and
development 65,600 49,200 1,538
Pension cost 49,630 48,939 1,530
Freight 13,808 27,678 865
Travel 32,507 24,385 762
Others 233,439 231,000 7,220
$ 15,348,770 $ 16,963,888 $ 530,287
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.
In September 2009, the Company’s board of directors resolved to
donate to the HTC Education Foundation NT$300,000 thousand
(US$9,378 thousand), consisting of (a) the second and third floors of
Taipei’s R&D headquarters, with these two floors to be built at an
estimated cost of NT$217,800 thousand (US$6,808 thousand), and
(b) cash of NT$82,200 thousand (US$2,570 thousand). This
donation excludes the land, of which the ownership remains with
the Company. The difference between the estimated building
donation and the actual construction cost will be treated as an
adjustment in the year when the completed floors are actually
turned over to the HTC Education Foundation.
18. OTHER CURRENT LIABILITIES
Other current liabilities as of December 31, 2008 and 2009 were as
follows:
2008 2009
NT$ NT$ US$(Note 3)
Reserve for warranty
expenses
$5,228,603 $ 5,265,463 $ 164,597
Agency receipts 260,802 524,156 16,385
Other payable 389,103 474,908 14,846
Advance receipts 180,504 152,907 4,780
Directors’ remuneration 21,842 --
Others 27,842 197,099 6,161
$6,108,696 $ 6,614,533 $ 206,769
The Company provides warranty service for one to two years
depending on the contract with our customers. The warranty
liability is estimated based on management’s evaluation of the
products under warranty and recognized as warranty liability.
Agency receipts were primarily employees’ income tax, insurance,
royalties, overseas value-added tax, and other items.
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On its equity-method investments, the Company had losses of
NT$6,151 thousand and NT$3,891 thousand (US$122 thousand) in
2008 and 2009, respectively.
The financial statements of equity-method investees had been
examined by the Company’s independent auditors.
15. PROPERTIES
Properties as of December 31, 2008 and 2009 were as follows:
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$24,755
thousand) from a related party, Syuda Construction Company, to
expand factory area.
2008 2009
Carrying Value Cost
Accumulated
Depreciation Carrying Value
NT$ NT$ NT$ NT$ US$ (Notes3)
Land $ 3,568,124 $ 4,719,538 $ - $ 4,719,538 $ 147,532
Buildings and structures 2,331,630 4,218,443 667,553 3,550,890 111,000
Machinery and equipment 1,493,038 4,702,420 3,580,896 1,121,524 35,058
Molding equipment 14,326 199,392 187,772 11,620 363
Computer equipment 120,789 411,504 275,343 136,161 4,257
Transportation equipment 1,593 4,575 3,237 1,338 42
Furniture and fixtures 307,346 462,664 236,379 226,285 7,074
Leased assets 2,980 6,327 3,341 2,986 93
Leasehold improvements 125,235 199,416 100,614 98,802 3,089
Prepayments for land, construction-in- progress and
equipment-in-transit 951,289 30,664 - 30,664 958
$ 8,916,350 $ 14,954,943 $ 5,055,135 $ 9,899,808 $ 309,466
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.
The construction of a new office building and employees’ dormitory
on HTC Electronics (Shanghai)’s land was completed in December
2009. As a result, a construction amount of NT$894,252 thousand
(US$27,954 thousand) was transferred to “buildings and structures”
from “prepayments for construction-in-progress and
equipment-in-transit”.
There were no interests capitalized for the years ended December
31, 2008 and 2009, respectively.
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