HTC 2013 Annual Report Download - page 153

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FINANCIAL INFORMATION FINANCIAL INFORMATION
302 303
impacted. The Company believes the Committee will made a final determination that favors HTC; the
final determination will be granted on March 14, 2014. Meanwhile, the Company has also worked on
design around solution for all future products to ensure no business disruption in the US market.
d. On the basis of its past experience and consultations with its legal counsel, the Company has measured
the possible effects of the contingent lawsuits on its business and financial condition.
36. SIGNIFICANT EVENTS AFTER REPORTING PERIOD
In February 2014, the Company and Nokia Corporation reached a settlement to dismiss all pending patent
litigations between them and entered into a patent technology collaboration agreement. For more details,
please refer to Note 35.
The Company had repurchased company shares from the open market for transferring to employees and
some of them had not been transferred before the expiry time. The Board of Directors approved the
retirement of 1,998 thousand treasury stocks on February 10, 2014.
37. EXCHANGE RATES OF FINANCIAL ASSETS AND LIABILITIES
DENOMINATED IN FOREIGN CURRENCIES
The significant financial assets and liabilities denominated in foreign currencies were as follows:
December 31, 2013 December 31, 2012 January 1, 2012
Foreign
Currencies Exchange Rate
Foreign
Currencies Exchange Rate
Foreign
Currencies Exchange Rate
Financial assets
Monetary items
USD $2,109,805 29.93 $2,967,669 29.13 $3,143,462 30.28
EUR 301,083 41.27 317,011 38.42 498,383 39.19
JPY 3,089,002 0.2851 10,626,742 0.3383 373,750 0.3906
RMB 884,849 4.94 2,142,619 4.68 1,344,825 4.77
Non-monetary
items
USD 130,415 29.93 123,781 29.13 89,493 30.28
Investments
accounted for by
the equity method
USD - - 193,639 29.13 2,500 30.28
Financial liabilities
Monetary items
USD 1,856,825 29.93 3,107,166 29.13 3,372,400 30.28
EUR 257,486 41.27 297,681 38.42 583,741 39.19
JPY 6,432,408 0.2851 17,276,121 0.3383 678,211 0.3906
RMB 1,446,364 4.94 2,310,079 4.68 1,463,205 4.77
38.SIGNIFICANT CONTRACTS
The Company specializes in the research, design, manufacture and sale of smart mobile devices. To enhance the
quality of its products and manufacturing technologies, the Company has patent agreements, as follows:
Contractor Contract Term Description
Apple, Inc. November 11, 2012 - November 10, 2022 The scope of this license agreement covers both the current
and future patents held by the parties as agreed upon and
specifically set forth in the agreement, with royalty payable
as prescribed.
Microsoft February 1, 2009 - March 31, 2015 Authorization to use embedded operating system; royalty
payment based on agreement.
Qualcomm
Incorporated.
December 20, 2000 to the following dates:
a. If the Company materially breaches any
agreement terms and fails to take remedial
action within 30 days after Qualcomm's
issuance of a written notice, the Company
will be prohibited from using Qualcomm's
property or patents.
b. Any time when the Company is not using
any of Qualcomm's intellectual property,
the Company may terminate this agreement
upon 60 days' prior written notice to
Qualcomm.
Authorization to use CDMA technology to manufacture and
sell units; royalty payment based on agreement.
Nokia Corporation January 1, 2003 - December 31, 2016
January 1, 2014 - December 31, 2018
Authorization to use wireless technology, like GSM; royalty
payment based on agreement.
Patent and technology collaboration; payment for use of
implementation patents based on agreement.
InterDigital
Technology
Corporation
December 31, 2003 to the expiry dates of these
patents stated in the agreement.
Authorization to use TDMA and CDMA technologies;
royalty payment based on agreement.
KONINKLIJKE
PHILIPS
ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these
patents stated in the agreement.
GSM/DCS 1800/1900 patent license; royalty payment
based on agreement.
MOTOROLA, Inc. December 23, 2003 to the latest of the
following dates:
a. Expiry dates of patents stated in the
agreement.
b. Any time when the Company is not using
any of Motorola's intellectual properties.
TDMA, NARROWBAND CDMA, WIDEBAND CDMA or TD/
CDMA standards patent license or technology; royalty
payment based on agreement.
Siemens
Aktiengesellschaft
July 2004 to the expiry dates of these patents
stated in the agreement.
Authorization to use GSM, GPRS or EDGE patent license or
technology; royalty payment based on agreement.
IV International
Licensing
Netherlands, B.V.
November 2010 - June 2020 Authorization to use wireless technology; royalty payment
based on agreement.