HTC 2011 Annual Report Download - page 97

% of Ownership
Investor Investee Company Type/ Main Businesses 2010 2011 Remark on Investee
HTC America Holding
Inc. Inquisitive Minds, Inc. Development and sale of digital education platform - 100.00 Investment received in October 2011
ABAXIA SAS HTC BLR Design, research and development of
application software 100.00 100.00 Investment received in July 2010
Saffron Media Group
Ltd.
Saffron Digital Ltd. Design, research and development of
application software - 100.00 Investment received in January 2011
Saffron Digital Inc. 〃- 100.00 Investment received in January 2011
(Concluded)
The Company acquired all the shares issued by Huada Digital Corporation in January 2010 and ABAXIA SAS in July 2010. In July 2010, the
Company lost its significant influence on BandRich Inc. The carrying values of the net assets of these companies as of the acquisition date or
control loss date were as follows:
ABAXIA SAS BandRich Inc. Huada Digital
Corporation (Note) Total
NT$ NT$ NT$ NT$
Cash on hand and in banks $93,848 $34,181 $245,000 $373,029
Other current assets 62,626 117,589 - 180,215
Properties 4,813 38,960 - 43,773
Other assets 14,041 1,155 - 15,196
Current liabilities (140,043) (160,572) - (300,615)
Total consideration $35,285 $31,313 $245,000 $311,598
Cash consideration/cash at the beginning of year $530,446 $88,510 $- $618,956
Cash at the acquisition date/control loss date (93,848) (34,181) (245,000) (373,029)
Net cash outflow (inflow) on the acquisition of subsidiaries $436,598 $54,329 $(245,000) $245,927
Note: Huada Digital Corporation ("Huada") was included in the consolidated financial statements beginning January 2010. Earlier, investment in Huada was booked under prepayments
for long-term investments as of December 31, 2009.
The Company acquired Saffron Media Group Ltd. in January 2011 and Dashwire, Inc. in August 2011. In October 2011, the Company (a) acquired
a portion of Beats Electronics, LLC and (b) acquired Inquisitive Minds, Inc. and (c) adjusted the share pricing terms of a certain share transaction
agreement with One & Company Design, Inc. In November 2011, acquired S3 Graphics Co., Ltd. The carrying values of the net assets of these
companies as of the acquisition date were as follows:
Saffron Media
Group Ltd. Dashwire, Inc.
Beats
Electronics,
LLC
Inquisitive
Minds, Inc.
S3 Graphics
Co., Ltd.
One &
Company
Design, Inc.
Total
NT$ NT$ NT$ NT$ NT$ NT$ NT$ US$ (Note 3)
Cash on hand and in banks $18,945 $8,860 $118,400 $2,031 $- $- $148,236 $4,896
Other current assets 161,622 2,756 925,409 - - - 1,089,787 35,992
Properties 8,629 1,247 5,862 567 - - 16,305 538
Other assets 1,130 40,164 83,982 689 - - 125,965 4,160
Current liabilities (142,250) (111,898) (292,457) (88) - - (546,693) (18,055)
Net assets $48,076 $(58,871) $841,196 $3,199 $- $- $833,600 $27,531
Cash consideration $1,393,717 $480,905 $9,102,096 $360,370 $9,033,450 $81,183 $20,451,721 $675,443
Cash at the acquisition date (18,945) (8,860) (118,400) (2,031) $- $- (148,236) (4,896)
Net cash outflow on the acquisition
of a subsidiary $1,374,772 $472,045 $8,983,696 $358,339 $9,033,450 $81,183 $20,303,485 $670,547
3. Foreign Currencies
The financial statements of foreign operations are translated into New Taiwan dollars at the following exchange rates:
a. Assets and liabilities - at exchange rates prevailing on the balance sheet date;
b. Stockholders' equity - at historical exchange rates;
c. Dividends - at the exchange rate prevailing on the dividend declaration date; and
d. Income and expenses - at average exchange rates for the year.
% of Ownership
Investor Investee Company Type/ Main Businesses 2010 2011 Remark on Investee
HTC Holding
Cooperatief U.A.
HTC South Eastern Europe Limited Liability
Company
Marketing, repair and after-sales
services 0.67 0.67 Incorporated in June 2010
HTC Netherlands B.V.
HTC EUROPE CO., LTD. Marketing, repair and after-sales
services 100.00 100.00
Incorporated in July 2003 and was
acquired from an affiliate for Company
reorganization in February 2010
HTC BRASIL 〃99.99 99.99
Incorporated in October 2006 and
was acquired from an HTC subsidiary
in February 2010 for Company
reorganization
HTC Belgium BVBA/SPRL 〃100.00 100.00
Incorporated in October 2006 and was
acquired from an indirect subsidiary
of HTC in March 2010 for Company
reorganization
HTC NIPPON Corporation 〃100.00 100.00
Incorporated in March 2006, and and was
acquired from a direct subsidiary of HTC
in April 2010 for Company reorganization
HTC FRANCE CORPORATION 〃100.00 100.00 Incorporated in April 2010
HTC South Eastern Europe Limited Liability
Company 〃99.33 99.33 Incorporated in June 2010
HTC Nordic ApS 〃100.00 100.00
Incorporated in July 2010, and was
acquired from an indirect investee of
HTC in October 2010 for Company
reorganization
HTC Italia SRL 〃100.00 100.00
Incorporated in February 2007 and was
acquired from an indirect investee of HTC
in October 2010 Company reorganization
HTC Germany GmbH 〃100.00 100.00 Incorporated in October 2010
HTC Iberia, S.L. 〃100.00 100.00 Incorporated in October 2010
HTC Poland sp. z.o.o. 〃100.00 100.00 Incorporated in October 2010
Saffron Media Group Ltd. Design, research and development of
application software - 100.00 Investment received in January 2011
HTC Communication Canada, Ltd. Marketing, repair and after-sales
services - 100.00 Incorporated in April 2011
HTC Luxembourg S.a.r.l. Online/download media services - 100.00 Incorporated in May 2011
HTC Norway AS Marketing, repair and after-sales
services - 100.00 Incorporated in August 2011
HTC RUS LLC 〃- 100.00 Incorporated in June 2011, and investment
received in August 2011.
HTC Communication Sweden AB 〃- 100.00 Incorporated in September 2011
HTC Belgium BVBA/
SPRL
HTC Italia SRL Marketing, repair and after-sales
services - -
Incorporated in February 2007 and sold
to an indirect subsidiary of HTC for the
reorganization in October 2010
HTC Nordic ApS 〃- -
Incorporated in July 2010 and sold to
an indirect subsidiary of HTC for the
reorganization in October 2010
HTC EUROPE CO.,
LTD. HTC America Holding Inc. International holding company 100.00 100.00 Incorporated in April 2010
HTC FRANCE
Corporation ABAXIA SAS Design, research and development of application software 100.00 100.00 Investment received in July 2010
HTC America Holding
Inc.
HTC America Inc. Sale of smart handheld devices 100.00 100.00
Incorporated in January 2003 and was
acquired from a direct subsidiary of HTC
in April 2010 for Company reorganization
One & Company Design, Inc. Design, research and development of
application software 100.00 100.00
Investment received in October 2008,
and was acquired from a direct subsidiary
of HTC in April 2010 for Company
reorganization
HTC America Innovation Inc. 〃100.00 100.00 Incorporated in April 2010, and
investment received in October 2010
HTC America Content Services, Inc. Online/download media services - 100.00 Incorporated in April 2011
Dashwire, Inc. Design, research and development of
wireless connectivity software - 100.00 Investment received in August 2011
Beats Electronics, LLC Design, research and development of
audio technology - 50.14 Investment received in October 2011
(Continued)
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