HTC 2013 Annual Report Download - page 107

FINANCIAL INFORMATION FINANCIAL INFORMATION
210 211
The Company expects to make a contribution of
NT$22,751 thousand to the defined benefit pension
plan within one year from December 31, 2013.
23. EQUITY
Share Capital
a. Common stock
December 31,
2013
December 31,
2012
January 1,
2012
Authorized
shares (in
thousands of
shares)
1,000,000 1,000,000 1,000,000
Authorized
capital
$10,000,000 $10,000,000 $10,000,000
Issued and
fully paid
shares (in
thousands of
shares)
842,351 852,052 852,052
Issued capital $8,423,505 $8,520,521 $8,520,521
Fully paid ordinary shares, which have a par
value of $10, carry one vote per share and carry
a right to dividends.
16,000 thousand shares of the Company's
shares authorized were reserved for the issuance
of employee share options, respectively.
b. Global depositary receipts
In November 2003, the Company issued 14,400
thousand common shares corresponding to 3,600
thousand units of Global Depositary Receipts
("GDRs"). For this GDR issuance, the Company's
stockholders, including Via Technologies, Inc.,
also issued 12,878.4 thousand common shares,
corresponding to 3,219.6 thousand GDR units.
Thus, the entire offering consisted of 6,819.6
thousand GDR units. Taking into account the
effect of stock dividends, the GDRs increased
to 8,782.1 thousand units (36,060.5 thousand
shares). The holders of these GDRs requested
the Company to redeem the GDRs to get the
Company's common shares. As of December 31,
Movements in the present value of the defined
benefit obligations were as follows:
For the Year Ended
December 31
2013 2012
Opening defined benefit obligation
Current service cost
Interest cost
Actuarial losses
Benefits paid
$393,124
4,599
6,388
13,730
(6,319)
$380,659
5,601
6,661
203
-
Closing defined benefit obligation $411,522 $393,124
Movement in the present value of the defined
benefit obligations were as follows:
For the Year Ended
December 31
2013 2012
Opening fair value of plan assets
Expected return on plan assets
Actuarial losses
Contributions from the employer
Benefits paid
$512,646
9,858
(3,246)
24,476
(6,318)
$481,685
9,893
(5,107)
26,175
-
Closing fair value of plan assets $537,416 $512,646
The major categories of plan assets at the end
of the reporting period for each category were
disclosed based on the information announced by
Labor Pension Fund Supervisory Committee:
December 31,
2013
December 31,
2012
January 1,
2012
Equity instruments
Debt instruments
Others
44.77%
54.44%
0.79%
37.43%
61.78%
0.79%
40.75%
59.12%
0.13%
100.00% 100.00% 100.00%
The expected overall rate of return is the weighted
average of the expected returns of the various
categories of plan assets held. The Actuary's
assessment of the expected returns is based on
historical return trends and analysts' predictions of
the market for the asset over the life of the related
obligation, after taking into account the minimum
return rate which no lower than the interest rate
for two-years' time deposit.
The provision for contingent loss on purchase
orders is estimated after taking into account
the effects of changes in the product market,
evaluating the foregoing effects on inventory
management and adjusting the Company's
purchases.
22. RETIREMENT BENEFIT PLANS
Defined Contribution Plans
The pension plan under the Labor Pension
Act (the "LPA") is a defined contribution plan.
Based on the LPA, the Company makes monthly
contributions to employees' individual pension
accounts at 6% of monthly salaries and wages.
The total expenses recognized in the statement
of comprehensive income were NT$428,469
thousand and NT$411,916 thousand, representing
the contributions payable to these plans by the
Company at the rates specified in the plans for
the years ended December 31, 2013 and 2012,
respectively. As of December 31, 2013, December
31, 2012 and January 1, 2012, the amounts of
contributions payable were NT$103,649 thousand,
NT$105,776 thousand and NT$110,560 thousand,
respectively, representing contributions not yet
paid for the reporting period. The amounts were
paid subsequent to the end of the reporting
period.
Defined Benefit Plans
Based on the defined benefit plan under the
Labor Standards Law ("LSL"), pension benefits are
calculated on the basis of the length of service and
average monthly salaries of the six months before
retirement. The Company contributed amounts
equal to 2% of total monthly salaries and wages
to a pension fund administered by the pension
fund monitoring committee. The pension fund is
deposited in Bank of Taiwan in the committee's
name.
The actuarial valuations of plan assets and the
present value of the defined benefit obligation
were carried out by qualifying actuaries. The
principal assumptions used for the purposes of the
actuarial valuations were as follows:
December 31,
2013
December 31,
2012
January 1,
2012
Discount rates 1.875% 1.625% 1.75%
Expected return
on plan assets
2.000% 1.875% 2.00%
Expected
rates of salary
increase
4.000% 4.000% 4.00%
Amounts recognized in profit or loss in respect of
these defined benefit plans were as follows:
For the Year Ended
December 31
2013 2012
Service cost
Interest cost
Expected return on plan assets
$4,598
6,388
(9,858)
$5,600
6,662
(9,893)
$1,128 $2,369
An analysis by function
Cost of revenues
Selling and marketing
General and administrative
Research and development
$301
89
128
610
$616
738
249
766
$1,128 $2,369
The amounts of actuarial losses recognized in other
comprehensive income were NT$15,205 and NT$4,407
thousand for the years ended December 31, 2013
and 2012, respectively. As of December 31, 2013 and
2012, the amounts of actuarial losses recognized
in accumulated other comprehensive income were
NT$19,612 and NT$4,407 thousand, respectively.
The amounts included in the balance sheets in
respect of the obligation under the defined benefit
plans were as follows:
December 31,
2013
December 31,
2012
January 1,
2012
Present value
of funded
defined benefit
obligation
$(411,522) $(393,124) $(380,659)
Fair value of
plan assets
537,416 512,646 481,685
Defined benefit
assets
$125,894 $119,522 $101,026