HTC 2015 Annual Report Download - page 141

Financial information
Financial information
278
279
e. Amounts of deductible temporary differences,
unused carryforward and unused tax credits
for which deferred tax assets have not been
recognized
December 31
2015 2014
Loss carryforward $ 3,764,471 $ 1,041,574
Deductible temporary
differences
$3,207,393 $3,470,768
f. Information about unused loss carry-forward
and tax-exemption
Loss carryforwards as of December 31, 2015 comprised
of:
Remaining Carrying Expiry Year
$2,416,854
856,232
1,286,755
7,662,140
10,513,823
22,777,716
297,715
2018
2019
2020
2023
2024
2025
2027-2032
$45,811,235
Under the Statute for Upgrading Industries, the
Company was granted exemption from corporate
income tax for as follows:
Item Exempt from Corporate
Income Tax Expiry Year
Sales of wireless and smartphone
which has 3.5G and GPS function 2015.01.01-2018.09.30
g. The aggregate amount of temporary
difference associated with investments for
which deferred tax liabilities have not been
recognized
As of December 31, 2015 and 2014, the taxable temporary
differences associated with investment in subsidiaries
and branch for which no deferred tax liabilities have
been recognized were NT$705,923 thousand and
NT$897,465 thousand, respectively.
h. Integrated income tax
The imputation credit account (“ICA”) information as of
December 31, 2015 and 2014, were as follows:
The (loss) earnings and weighted average number of
ordinary shares outstanding for the computation of (loss)
earnings per share were as follows:
Net (Loss) Profit for the Years
For the Year Ended December 31
2015 2014
(Loss) profit for the year
attributable to owners of the
parent $(15,533,068) $ 1,483,046
Shares
Unit: In Thousands of Shares
For the Year Ended
December 31
2015 2014
Weighted average number of ordinary
shares in computation of basic (loss)
earnings per share 826,784 824,194
Effect of dilutive potential ordinary
shares:
Bonus issue to employees - 622
Weighted average number of ordinary
shares in computation of diluted (loss)
earnings per share 826,784 824,816
If the Company was able to settle the bonuses paid to
employees by cash or shares, the Company presumed that
the entire amount of the bonus would be settled in shares
and the resulting potential shares were included in the
weighted average number of shares outstanding used in
the computation of diluted earnings per share, if the effect
is dilutive. Such dilutive effect of the potential shares was
included in the computation of diluted earnings per share
until the shareholders resolve the number of shares to be
December 31
2015 2014
Unappropriated earnings
generated on and after January
1, 1998 $21,782,432 $41,381,753
Balance of ICA $ 8,196,056 $ 8,164,935
For the Year Ended December 31
2015
(Expected)
2014
(Actual)
Creditable ratio for
distribution of earning 34.37% 21.92%
Under the Income Tax Law, for distribution of earnings
generated after January 1, 1998, the imputation credits
allocated to ROC resident shareholders of HTC was
calculated based on the creditable ratio as of the date
of dividend distribution. The actual imputation credits
allocated to shareholders of HTC was based on the
balance of the ICA as of the date of dividend distribution.
Therefore, the expected creditable ratio for the earnings
may differ from the actual creditable ratio to be used in
allocating imputation credits to the shareholders.
i. Income tax assessments
HTC's income tax returns through 2013 had been
assessed by the tax authorities. HTC disagreed with the
tax authorities' assessment of its 2013 tax return and
applied for a re-examination. Nevertheless, under the
conservatism guideline, HTC adjusted its income tax for
the tax shortfall stated in the tax assessment notices.
The income tax returns of Communication Global
Certification Inc., HTC Investment Corporation, HTC I
Investment Corporation and Yoda Co., Ltd. for the years
through 2013 have been examined and approved by the
tax authorities.
28. (LOSS) EARNINGS PER SHARE
Unit: NT$ Per Share
For the Year Ended
December 31
2015 2014
Basic (loss) earnings per share $(18.79) $ 1.80
Diluted (loss) earnings per share $(18.79) $ 1.80
distributed to employees at their meeting in the following
year.
29. SHARE-BASED PAYMENT
ARRANGEMENTS
Employee Share Option Plan of the Company
Qualified employees of HTC and its subsidiaries were
granted 15,000 thousand options in November 2013. Each
option entitles the holder to subscribe for one common
share of HTC. The options granted are valid for 7 years
and exercisable at certain percentages after the second
anniversary from the grant date.
Qualified employees of HTC and its subsidiaries were
granted 19,000 thousand options in October 2014. Each
option entitles the holder to subscribe for one common
share of HTC. The options granted are valid for 10 years
and exercisable at certain percentages after the second
anniversary from the grant date.
Qualified employees of HTC and its subsidiaries were
granted 1,000 thousand options in August 2015. Each
option entitles the holder to subscribe for one ordinary
share of HTC. The options granted are valid for 10 years
and exercisable at certain percentages after the second
anniversary from the grant date.
The exercise price equals to the closing price of HTC's
ordinary shares on the grant date. For any subsequent
changes in the HTC's ordinary shares, the exercise price is
adjusted accordingly.
Information on employee share options was as follows:
For the Year Ended December 31
2015 2014
Number of
Options
(In Thousands)
Weighted-average
Exercise Price
(NT$)
Number of
Options
(In Thousands)
Weighted-average
Exercise Price
(NT$)
Balance at January 1 31,908 $140.37 15,000 $149.00
Options granted 1,000 54.50 19,000 134.50
Options forfeited ( 7,944) ( 2,092)
Balance at December 31 24,964 137.20 31,908 140.37
Options exercisable, end of the year 5,905 -
Weighted-average fair value of options granted per unit (NT$) $15.00 $ 31.231