HTC 2015 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2015 HTC annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 149

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149

Financial information
Financial information
232
233
Investments accounted for by the equity method
USD
SGD
$ 270,883
1,389,799
33.06
23.42
$ 280,383
1,393,333
31.67
23.95
Financial liabilities
Monetary items
USD
EUR
JPY
RMB
1,381,423
112,734
1,645,107
76,968
33.06
36.13
0.2747
5.03
1,823,146
166,276
6,895,194
644,303
31.67
38.49
0.2648
5.10
(Concluded)
For the year ended December, 2015 and 2014, realized and unrealized net foreign exchange gains or losses were NT$(231,343) thousand
and NT$292,963 thousand, respectively. It is impractical to disclose net foreign exchange gains or losses by each significant foreign
currency due to the variety of the foreign currency transactions.
32. 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 Term Description
Apple, Inc. January 1, 2015 - December 31, 2017 The scope of this license covers both the current and
future patents held by the parties as agreed upon and
specifically set forth in the agreement, with payment
based on the 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 Authorization to use wireless technology, like GSM;
royalty payment based on agreement.
January 1, 2014 - December 31, 2018 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.
Telefonaktiebolaget LM
Ericsson (PUBL)
December 31, 2014 - December 31, 2016 Authorization to use GSM and wireless technology;
royalty payment based on agreement.
6. Independent Auditors' Report
The Board of Directors and Stockholders
HTC Corporation
We have audited the accompanying consolidated balance sheets of HTC Corporation and its subsidiaries (collectively
referred to as the “Company”) as of December 31, 2015 and 2014, and the related consolidated statements of
comprehensive income, changes in equity and cash flows for the years ended December 31, 2015 and 2014. These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements by Certified Public
Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards require
that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall consolidated financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
consolidated financial position of the Company as of December 31, 2015 and 2014, and their consolidated financial
performance and their consolidated cash flows for the years ended 2015 and 2014, in conformity with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards
endorsed by the Financial Supervisory Commission of the Republic of China.
We have also audited the parent company only financial statements of HTC Corporation as of and for the years ended
December 31, 2015 and 2014 on which we have issued an unqualified report.
February 29, 2016
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with
accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such
consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original
Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the
interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail. Also, as stated in Note 4 to the
consolidated financial statements, the additional footnote disclosures that are not required under accounting principles and practices generally applied in the Republic of China
were not translated into English.