HTC 2015 Annual Report Download - page 111

Financial information
Financial information
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supervisors and the actual appropriations, please refer to
employee benefits expense in Note 23.
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 appropriations of 2014 earnings and the loss off-setting
for 2013 had been approved in the shareholders' meetings
on June 2, 2015 and June 19, 2014, respectively. The
appropriations and dividends per share were as follows:
Appropriation of
Earnings
(The Loss Off-setting)
Dividends Per Share
(NT$)
For 2014 For 2013 For 2014 For 2013
Legal reserve $148,305 $ - $ - $ -
Special reserve
reversal - (854,138) - -
Cash dividends 314,636 - 0.38 -
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
2015 2014
Exchange differences on translating
foreign operations $ 1,473,417 $ 1,462,855
Unrealized losses on available-for-
sale financial assets ( 13,633) ( 2,167)
Unearned employee benefit ( 371,369) ( 398,570)
$ 1,088,415 $ 1,062,118
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. Cash flow hedge
The cash flow hedging reserve represents the cumulative
effective portion of gains or losses arising on changes
in fair value of hedging instruments entered into for
cash flow hedges. The cumulative gain or loss arising
on changes in fair value of the hedging instruments that
are recognized and accumulated under the heading of
cash flow hedging reserve will be transferred to profit or
loss only when the hedged transaction affects the profit
or loss, or included as a basis adjustment to the non-
financial hedged item.
d. Unearned employee benefit
In the meeting of shareholders on June 2, 2015 and 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
2015 2014
Balance, beginning of the year $(398,570) $ -
Issuance of shares (233,265) (443,855)
Adjustment of turnover rate 3,395 -
Share-based payment expenses
recognized 257,071 45,285
Balance, end of the year $( 371,369) $(398,570)
Treasury Shares
On August 24, 2015, the Company's board of directors passed
a resolution to buy back 50,000 thousand Company shares
from the open market. The repurchase period was between
August 25, 2015 and October 24, 2015, and the repurchase
price ranged from NT$35 to NT$60 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
4,110 thousand shares for NT$200,955 thousand during the repurchase period.
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 6,914 thousand, 10,000 thousand and 1,999
thousand treasury shares in March 2015, October 2014 and February 2014, respectively. The related information on the treasury share
transactions was as follows:
(In Thousands of Shares)
Reason to Reacquire
Number of Shares,
Beginning of the Year
Addition During
the Year
Reduction During
the Year
Number of Shares,
End of the Year
For 2015
To transfer shares to the Company's employees 6,914 - 6,914 -
To maintain the Company's credibility and
stockholders' interest - 4,110 - 4,110
6,914 4,110 6,914 4,110
For 2014
To transfer shares to the Company's employees 18,913 - 11,999 6,914
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
2015 2014
Sale of goods $115,404,698 $ 171,771,551
Other operating income 1,678,339 3,022,013
$ 117,083,037 $174,793,564
Some sales denominated in foreign currencies were hedged for cash flow risk. Accordingly, the Company transferred $22,604 thousand
and NT$102,057 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 2015 and 2014, respectively.