HTC 2014 Annual Report Download - page 106

• Financial information Financial information •
208 209
Appropriation of earnings to legal reserve shall be made
until the legal reserve equals the Company’s capital. Legal
reserve may be used to offset deficit. If the Company has
no deficit and the legal reserve has exceeded 25% of the
Company’s capital, the excess may be transferred to capital
or distributed in cash.
The loss off-setting for 2013 and appropriations of 2012
earnings had been approved in the shareholders’ meetings
on June 19, 2014 and June 21, 2013, respectively. The
appropriations and dividends per share were as follows:
(The Loss Off-Setting)
Appropriation of Earnings
Dividends Per Share
(NT$)
For 2013 For 2012 For 2013 For 2012
Legal reserve $- $1,678,096 $- $-
Special
reserve
(reversal)
(854,138)
854,138
-
-
Cash
dividends - 1,662,455 - 2
Stock
dividends - - - -
No employee bonus was estimated as the Company reported
net loss for the year ended December 31, 2013. The bonus
to employees for 2012 was approved in the shareholders’
meetings on June 21, 2013. The amounts of bonus were as
follows:
Amounts Approved
in Shareholders’
Meetings
Amounts Recognized
in Financial
Statements
For 2012 Cash $976,327
Stock -
$976,327 $976,327
The approved amounts of bonus to employees were the
same as the accrual amounts recognized in the financial
statements for 2012.
Information on the earnings appropriation proposed
by the Company’s board of directors and approved by
the Company’s shareholders is available on the Market
Observation Post System website of the Taiwan Stock
Exchange.
Other Equity
December 31
2014 2013
Exchange differences on translating
foreign operations $1,462,855 $559,719
Unrealized losses on available-for-
sale financial assets (2,167) (2,021)
Unearned employee benefit (398,570) -
$1,062,118 $557,698
a. Exchange differences on translating foreign
operations
Exchange differences relating to the translation of
the results and net assets of the Company’s foreign
operations from their functional currencies to the
Company’s presentation currency (New Taiwan dollars)
were recognized directly in other comprehensive
income and accumulated in the foreign currency
translation reserve. Exchange differences previously
accumulated in the foreign currency translation reserve
were reclassified to profit or loss on the disposal of the
foreign operation.
b. Unrealized gains or losses on available-for-
sale financial assets
Unrealized gains or losses on available-for-sale financial
assets represents the cumulative gains and losses arising
on the revaluation of AFS financial assets that have
been recognized in other comprehensive income, net of
amounts reclassified to profit or loss when those assets
have been disposed of or are determined to be impaired.
c. Unearned employee benefit
In the meeting of shareholders on June 19, 2014, the
shareholders approved a restricted stock plan for
employees. Refer to Note 26 for the information of
restricted shares issued.
For the Year Ended
December 31
2014 2013
Balance, beginning of the year $- $-
Issuance of shares (443,855) -
Share-based payment expenses
recognized 45,285 -
Balance, end of the year $(398,570) $-
Treasury Shares
On August 2, 2013, the Company’s board of directors passed a resolution to buy back 15,000 thousand Company shares from the open
market. The repurchase period was between August 5, 2013 and October 4, 2013, and the repurchase price ranged from NT$140 to
NT$290 per share. If the Company’s share price is lower than this price range, the Company may continue to buy back its shares.
The Company had bought back 7,789 thousand shares for NT$1,033,846 thousand during the repurchase period, which retired by the
Company’s board of directors on November 5, 2013.
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 1,999 thousand, 10,000 thousand and 1,912
thousand treasury stocks in February and October 2014 and September 2013, respectively. The related information on the treasury
stock transactions was as follows:
(In Thousands of Shares)
Reason to Reacquire Number of Shares,
Beginning of Year
Addition During the
Year
Reduction During the
Year
Number of Shares,
End of Year
For 2014
To transfer shares to the Company’s employees 18,913 - 11,999 6,914
For 2013
To transfer shares to the Company’s employees
To maintain the Company’s credibility and
stockholders’ interest
20,825
-
-
7,789
1,912
7,789
18,913
-
20,825 7,789 9,701 18,913
Based on the Securities and Exchange Act of the ROC, the number of reacquired shares should not exceed 10% of a company’s issued
and outstanding shares, and the total purchase amount should not exceed the sum of the retained earnings, additional paid-in capital in
excess of par and realized capital surplus.
Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these
shares, such as rights to dividends and to vote.
22. REVENUE
For the Year Ended December 31
2014 2013
Sale of goods $171,771,551 $191,186,751
Other operating income 3,022,013 3,107,293
$174,793,564 $194,294,044
Some sales denominated in foreign currencies were hedged for cash flow risk. Accordingly, the Company transferred NT$102,057
thousand and NT$262,648 thousand of the gain or loss on the hedging instrument that was determined to be the effective portion of the
hedge to sales of goods for the years ended in 2014 and 2013, respectively.