HTC 2011 Annual Report Download - page 108

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(7) Service Fees
2010 2011
Related Party Amount % to Total
Service Expenses Amount % to Total
Service Expenses
NT$ NT$ US$ (Note 3)
Way-Lien Technology Inc. $2,000 - $2,400 $79 -
(8) Rental Revenues
2010 2011
Related Party Amount % to Total
Service Expenses Amount % to Total
Service Expenses
NT$ NT$ US$ (Note 3)
Chander Electronics Corp. $- - $920 $30 11
(9) Leasing - Lessee
Operating expenses - rental expenses
2010 2011
Related Party Amount % to Total
Rental Expenses Amount % to Total
Rental Expenses
NT$ NT$ US$ (Note 3)
VIA Technologies Inc. $12,212 5 $5,209 $172 1
The Company leased offices and parking space owned by VIA Technologies, Inc. under operating lease agreements. The term of the lease
agreement is from May 10, 2008 to March 31, 2012 and the rental payment was determined at the prevailing rates in the surrounding area.
(10) Donation
2010 2011
Related Party Amount % to Total
Donation Expenses Amount % to Total
Donation Expenses
NT$ NT$ US$ (Note 3)
HTC Cultural and Educational Foundation $150,000 49 $150,000 $4,954 39
HTC Social Welfare and Charity Foundation 150,000 49 150,000 4,954 39
$300,000 98 $300,000 $9,908 78
The Company donated NT$305,500 thousand in 2010 and NT$388,050 thousand (US$12,816 thousand) in 2011 to help disadvantaged
minorities, teenagers and other people in need. Of these donations, NT$5,500 thousand in 2010 and NT$88,050 thousand (US$2,908
thousand) in 2011 went to unrelated parties (Note 16 has more information).
(11) Property Transactions
a. S3 Graphics Co, Ltd. ("S3 Graphics") owns patents on key graphics technologies, which can strengthen the Company's patent portfolio and
counteract the patent rights of competitors and potential licensors around the globe. In their meeting on July 6, 2011, the Board of Directors
resolved to invest in S3 Graphics, and in November 2011, the Company obtained all patents owned by S3 Graphics through the purchase of
all the shares of S3 Graphics from VIABASE CO., LTD. and WTI Investment International, Ltd. by increasing the capital of HTC Investment
One (BVI) Corporation by an amount of US$300,000 thousand.
b. In 2011, the Company bought building equipment from Chander Electronics Corp. for NT$6,555 thousand (US$216 thousand).
c. In November 2010, the Company bought land and building for NT$404,000 thousand from a related party, VIA Technologies, Inc. to have
more office space in Xindian.
(12) Patent Litigation
Note 31 has more information about patent litigation
2. Major transactions with related parties are summarized below:
(1) Purchases of Inventories and Services
2010 2011
Related Party Amount % to Total Net
Purchases Amount % to Total Net
Purchases
NT$ NT$ US$ (Note 3)
Chander Electronics Corp. $270,931 - $172,540 $5,698 -
Terms of payment and purchasing prices for both related and third parties were similar.
(2) Sales and Services Provided
2010 2011
Related Party Amount % to Total Revenues Amount % to Total Revenues
NT$ NT$ US$ (Note 3)
Employees' Welfare Committee $34,138 - $52,540 $1,735 -
VIA Technologies, Inc. 2,353 - 858 28 -
Others 1,701 - 1,863 62 -
$38,192 - $55,261 $1,825 -
The selling prices for products sold to related parties were similar to those for sales to third parties, except those for the respective Employees'
Welfare Committees. The collection terms for products sold to related parties were similar to those for sales to third parties.
(3) Accounts Receivable
December 31
2010 2011
Related Party Amount % to Total Notes and
Accounts Receivable Amount % to Total Notes and
Accounts Receivable
NT$ NT$ US$ (Note 3)
VIA Technologies, Inc. $2,113 - $- $- -
Others 30 - 473 16 -
$2,143 - $473 $16 -
(4) Accounts Payable
December 31
2010 2011
Related Party Amount % to Total Notes and
Accounts Receivable Amount % to Total Notes and
Accounts Receivable
NT$ NT$ US$ (Note 3)
Chander Electronics Corp. $126,093 -$- $- -
(5) Other Receivables
December 31
2010 2011
Related Party Amount % to Total Other
Receivable Amount % to Total Other
Receivable
NT$ NT$ US$ (Note 3)
Chander Electronics Corp. $20 - $966 $32 -
Others 107 - - - -
$127 - $966 $32 -
(6) Accrued Expenses
December 31
2010 2011
Related Party Amount % to Total
Accrued Expenses Amount % to Total
Accrued Expenses
NT$ NT$ US$ (Note 3)
HTC Cultural and Educational Foundation $217,800 1 $217,800 $7,193 1
Way-Lien Technology Inc. 400 - 210 7 -
$218,200 1 $218,010 $7,200 1
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FINANCIAL INFORMATION
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FINANCIAL INFORMATION
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