HTC 2011 Annual Report Download - page 102

Year Ended December 31, 2011
Patents Goodwill Deferred
Pension Cost Other Total
NT$ NT$ NT$ NT$ NT$ US$ (Note 3)
Balance, end of year $11,608,540 $10,905,878 $342 $911,962 $23,426,722 $773,695
Accumulated amortization
Balance, beginning of year 12,362 - - - 12,362 408
Amortization 443,551 - - 330,812 774,363 25,574
Owned by acquirees 475 - - - 475 16
Translation adjustment 54 - - (14,634) (14,580) (482)
Balance, end of year 456,442 - - 316,178 772,620 25,516
Accumulated impairment losses
Balance, beginning of year - 71,508 - - 71,508 2,362
Impairment losses - 18,608 - - 18,608 615
Translation adjustment - 3,198 - - 3,198 105
Balance, end of year - 93,314 - - 93,314 3,082
Net book value, end of year $11,152,098 $10,812,564 $342 $595,784 $22,560,788 $745,097
(Concluded)
(17) ACCRUED EXPENSES
2010 2011
NT$ NT$ US$ (Note 3)
Marketing $17,323,446 $29,104,665 $961,216
Bonus to employees 8,491,704 7,238,637 239,065
Salaries and bonuses 2,642,916 3,433,649 113,400
Services 1,843,017 1,324,631 43,748
Import, export and freight 1,321,198 1,397,747 46,162
Research materials 780,501 1,854,932 61,261
Repairs and maintenance 250,638 466,135 15,395
Donation 217,800 236,630 7,815
Meals and welfare 197,590 193,721 6,398
Insurance 127,905 191,931 6,339
Pension cost 69,610 123,877 4,091
Travel 49,691 96,085 3,173
Others 110,012 508,650 16,799
$33,426,028 $46,171,290 $1,524,862
1.
Based on the resolutions passed by the Company's board of
directors, the employee bonuses for 2010 and 2011 should be
appropriated at 18% and 10%, respectively, of net income before
deducting employee bonus expenses.
2.
The Company accrued marketing expenses on the basis of
related agreements and other factors that would significantly
affect the accruals.
3.
In September 2009, the Company's board of directors resolved
to donate to the HTC Cultural and Educational Foundation
NT$300,000 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, and (b) cash
of NT$82,200 thousand. This donation excludes the land, of
which the ownership remains with the Company. The difference
between the estimated building donation and the actual
construction cost will be treated as an adjustment in the year
when the completed floors are actually turned over to the HTC
Cultural and Educational Foundation.
(18) OTHER CURRENT LIABILITIES
Other current liabilities as of December 31, 2010 and 2011 were as
follows:
2010 2011
NT$ NT$ US$ (Note 3)
Warranty provisions $9,104,973 $13,080,394 $431,996
Provisions for contingent loss on
purchase orders 1,942,147 2,052,881 67,799
Other payable 269,045 512,941 16,940
Agency receipts 476,948 440,862 14,560
Advance receipts 805,838 433,072 14,302
Advance revenues - 140,815 4,651
Others 377,886 646,390 21,348
$12,976,837 $17,307,355 $571,596
1.
The Company provides warranty service for one year to two
years depending on the contract with customers. The warranty
liability is estimated on the basis of management's evaluation
of the products under warranty, past warranty experience, and
pertinent factors.
2.
Other payables were payables for patents, unpaid consideration
for treasury stock buyback and agreed installments payable to
the original stockholders of subsidiaries.
3.
Agency receipts were primarily employees' income tax,
insurance, royalties and overseas value-added tax.
1.
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 headquarters in Xindian City. The Company had paid 80% and 20% of the purchase price and completed the transfer
registration of the corresponding portions of the land in December 2008 and January 2010, respectively.
2.
In November 2010, the Company bought land and building for NT$404,000 thousand from a related party, VIA Technologies, Inc. to have more
office space in Xindian.
3.
In April 2011, the Company bought land adjacent to its Taoyuan plant for NT$1,770,000 thousand (US$58,456 thousand) from an unrelated
party to build a complete HTC technology park and meet future capacity expansion requirements.
4.
Prepayments for construction-in-progress and equipment-in-transit were for the construction of the Taipei R&D headquarters, Taoyuan plant
and the Shanghai employees' dormitory and as well as miscellaneous equipment.
5.
There were no interests capitalized for 2010 and 2011.
(16) INTANGIBLE ASSETS
Intangible assets as of December 31, 2010 and 2011 were as follows:
Year Ended December 31, 2011
Patents Goodwill Deferred
Pension Cost Other Total
NT$ NT$ NT$ NT$ NT$
Cost
Balance, beginning of year $- $286,467 $490 $- $286,957
Additions
Acquisition 220,943 - - - 220,943
The difference between the cost of investment
and the Company's share in investees' net assets - 328,921 - 257,015 585,936
The changes in deferred pension cost - - (74) - (74)
Translation adjustment - (46,077) - (28,165) (74,242)
Balance, end of year 220,943 569,311 416 228,850 1,019,520
Accumulated amortization
Balance, beginning of year - - - - -
Amortization 12,362 - - - 12,362
Balance, end of year 12,362 - - - 12,362
Accumulated impairment losses
Balance, beginning of year - 46,475 - - 46,475
Impairment losses - 31,579 - - 31,579
Translation adjustment - (6,546) - - (6,546)
Balance, end of year - 71,508 - - 71,508
Net book value, end of year $208,581 $497,803 $416 $228,850 $935,650
Year Ended December 31, 2011
Patents Goodwill Deferred
Pension Cost Other Total
NT$ NT$ NT$ NT$ NT$ US$ (Note 3)
Cost
Balance, beginning of year $220,943 $569,311 $416 $228,850 $1,019,520 $33,671
Additions
Acquisition 2,282,409 - - 11,951 2,294,360 75,774
The difference between the cost of investment
and the Company's share in investees' net assets 9,033,450 10,240,332 - 603,852 19,877,634 656,483
Owned by acquirees 21,527 - - 62,929 84,456 2,789
Adjustments of acquisition cost - 81,183 - - 81,183 2,681
The changes in deferred pension cost - - (74) - (74) (3)
Translation adjustment 50,211 15,052 - 4,380 69,643 2,300
(Continued)
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