HTC 2012 Annual Report Download - page 119

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(8) Leasing - Lessee
Rental Revenues
2011 2012
Amount % to Total
Rental Revenues Amount % to Total
Rental Revenues
Related Party NT$ NT$ US$ (Note 3)
Chander Electronics Corp. $920 100 $- $- -
The Company leases the unused parcel of land and building to the aforementioned related parties. The rental revenue
was determined at the prevailing rates in the surrounding area.
Operating expenses - rental expenses
December 31
2011 2012
Amount % to Total
Rental Revenues Amount % to Total
Rental Revenues
Related Party NT$ NT$ US$ (Note 3)
VIA Technologies Inc. $5,209 1 $5,209 $179 2
The Company leased staff dormitory owned by VIA Technologies, Inc. under operating lease agreements. The term of
the lease agreement is from April 2012 to March 2015 and the rental payment was determined at the prevailing rates in
the surrounding area.
(9) Donation Expenses
2011 2012
Amount % to Total
Donation Expenses Amount % to Total
Donation Expenses
Related Party NT$ NT$ US$ (Note 3)
HTC Cultural and Educational Foundation $150,000 39 $836 $29 14
HTC Social Welfare and Charity Foundation 150,000 39 - - -
$300,000 78 $836 $29 14
Note 18 has more information on the HTC Cultural and Educational Foundation.
(10) Trademark and Technology License Agreement
Beats Electronics, LLC
To enhance product diversity, the Company entered into a trademark and technology license agreement with Beats
Electronics, LLC. The agreement took effect in August 2011 and will end in December 2016. The royalty expense was
NT$269,565 thousand (US$9,254 thousand) in 2012. As of December 31, 2012, the unpaid royalty was NT$130,960
thousand (US$4,496 thousand).
Openmoko, Inc.
The Company entered into a platform technology license agreement with Openmoko, Inc. The agreement took effect
in April 2012 and will end in March 2013. The royalty expense was NT$2,136 thousand (US$73 thousand) in 2012.
(11) Property Transaction
The Company bought the auxiliary facilities of buildings from Chander Electronics Corp. for NT$6,555 in 2011 and
NT$55,891 thousand (US$1,919 thousand) in 2012.
In 2012, the Company bought building equipment from VIA Technologies, Inc. for NT$5,264 thousand (US$181
thousand). As of December 31, 2012, there was NT$2,127 thousand (US$73 thousand) unpaid and was accounted for
under "payable for purchase of equipment".
(3) Accounts Receivable
December 31
2011 2012
Amount % to Total Notes and
Accounts Receivable Amount % to Total Notes and
Accounts Receivable
Related Party NT$ NT$ US$ (Note 3)
Faith Hope & Love Limited $- - $218,468 $7,500 -
Others 473 - 2,582 89 -
$473 - $221,050 $7,589 -
(4) Accounts Payable
December 31
2011 2012
Amount % to Total Notes and
Accounts Payable Amount % to Total Notes and
Accounts Payable
Related Party NT$ NT$ US$ (Note 3)
VIA Telecom Company Limited $- - $19,269 $662 -
(5) Other Receivable
December 31
2011 2012
Amount % to Total
Other Receivable Amount % to Total
Other Receivable
Related Party NT$ NT$ US$ (Note 3)
Beats Electronics, LLC $- - $6,600,093 $226,582 85
Chander Electronics Corp. 966 - - - -
$966 - $6,600,093 $226,582 85
For details of other receivable from Beats Electronics, LLC, please refer to the Loan section of Note 25.
(6) Accrued Expenses
December 31
2011 2012
Amount % to Total
Other Receivable Amount % to Total
Other Receivable
Related Party NT$ NT$ US$ (Note 3)
Captec Partners Management Corp. $- - $3,398 $117 -
HTC Cultural and Educational Foundation 217,800 1 - - -
Way-Lien Technology Inc. 210 - - - -
$218,010 1 $3,398 $117 -
Accrued expenses were consulting expenses. Note 18 has more information on the HTC Cultural and Educational
Foundation.
(7) Service Fees
December 31
2011 2012
Amount % to Warranty
Expenses Amount % to Warranty
Expenses
Related Party NT$ NT$ US$ (Note 3)
Captec Partners Management Corp. $- - $3,236 $111 -
Way-Lien Technology Inc. 2,400 - 800 28 -
$2,400 - $4,036 $139 -
Service fees resulted from obtaining business consulting service.
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FINANCIAL INFORMATION