HTC 2013 Annual Report Download - page 143

FINANCIAL INFORMATION FINANCIAL INFORMATION
282 283
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.
b. Global depositary receipts
In November 2003, HTC issued 14,400 thousand
common shares corresponding to 3,600 thousand
units of Global Depositary Receipts ("GDRs").
For this GDR issuance, HTC'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 HTC to redeem the GDRs
to get HTC's common shares. As of December
31, 2013, there were 8,289.9 thousand units of
GDRs redeemed, representing 33,159.8 thousand
common shares, and the outstanding GDRs
represented 2,900.7 thousand common shares or
0.35% of HTC's outstanding common shares.
Capital Surplus
December 31,
2013
December 31,
2012
January 1,
2012
Additional
paid-in
capital -
issuance of
shares in
excess of par
$14,640,983 $14,809,608 $14,809,608
Treasury
shares
631,791 1,730,458 1,730,458
Merger 24,145 24,423 24,423
Employee
share options
26,742 - -
Expired stock
options
36,646 37,068 37,068
$15,360,307 $16,601,557 $16,601,557
The premium from shares issued in excess of par
(share premium from issuance of common shares,
treasury shares transactions, merger and expired
stock options) and donations may be used to
The amounts of actuarial losses recognized in
other comprehensive income were NT$17,106
thousand and NT$5,382 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$22,488 thousand
and NT$5,382 thousand, respectively.
The amounts included in the consolidated balance
sheets in respect of the obligation on HTC and CGC
under the defined benefit plans were as follows:
December 31,
2013
December 31,
2012
January 1,
2012
Present value
of funded
defined benefit
obligation
$(413,220) $(394,681) $(382,134)
Fair value of
plan assets
538,935 513,954 482,785
Defined benefit
assets
$125,715 $119,273 $100,651
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
$394,681 $382,134
Current service
cost
4,599 5,601
Interest cost 6,408 6,684
Actuarial losses 13,851 262
Benefits paid (6,319) -
Closing defined
benefit obligation
$413,220 $394,681
Movements in the present value of the plan assets
in the current year were as follows:
For the Year Ended December 31
2013 2012
Opening fair value
of plan assets
$513,954 $482,786
Expected return on
plan assets
9,885 9,918
Actuarial losses (3,255) (5,120)
Contributions from
the employer
24,670 26,370
Benefits paid (6,319) -
Closing fair value of
plan assets
$538,935 $513,954
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
44.77% 37.43% 40.75%
Debt
instruments
54.44% 61.78% 59.12%
Others 0.79% 0.79% 0.13%
100.00% 100.00% 100.00%
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 Company expects to make a contribution
of NT$22,944 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
offset a deficit; in addition, when the Company has
no deficit, such capital surplus may be distributed
as cash dividends or transferred to capital (limited
to a certain percentage of the Company's capital
surplus and once a year).
In September and November 2013, the retirement
of treasury shares caused decreases of NT$168,625
thousand in additional paid-in capital - issuance
of shares in excess of par, NT$9,727 thousand in
capital surplus - treasury shares, NT$278 thousand
in capital surplus - merger and NT$422 thousand
in capital surplus - expired stock options. The
difference the carrying value of treasury shares
retired in excess of the sum of its par value and
premium from issuance of common share was
firstly offset against capital surplus - treasury
shares by NT$1,088,940 thousand, and the rest
offset against accumulated earnings amounting to
NT$814,170 thousand.
Retained Earnings and Dividend Policy
Under HTC's Articles of Incorporation, HTC should
make appropriations from its net income in the
following order:
a. To pay taxes.
b. To cover accumulated losses, if any.
c. To appropriate 10% legal reserve unless the total
legal reserve accumulated has already reached
the amount of HTC's authorized capital.
d. To recognize or reverse special reserve return
earnings.
e. To pay remuneration to directors and
supervisors at 0.3% maximum of the balance
after deducting the amounts under the above
items (a) to (d).
f. To pay bonus to employees at 5% minimum of
the balance after deducting the amounts under
the above items (a) to (d), or such balance plus
the unappropriated retained earnings of previous
years. However, the bonus may not exceed the
limits on employee bonus distributions as set out
in the Regulations Governing the Offering and
Issuance of Securities by Issuers. Where bonus
to employees is allocated by means of new share
issuance, the employees to receive bonus may
include the affiliates' employees who meet