HTC 2015 Annual Report Download - page 144

Financial information
Financial information
284
285
2) Liquidity and interest risk rate tables for derivative
financial instruments
The following table detailed the Company's liquidity
analysis for its derivative financial instruments. The
table was based on the undiscounted contractual net
cash inflows and outflows on derivative instruments
that settle on a net basis, and the undiscounted
gross inflows and outflows on those derivatives that
require gross settlement.
December 31, 2015
Less Than
3 Months
3 Months
to 1 Year
Over
1 Year
Gross settled
Foreign exchange
contracts
Inflows
Outflows
$ 6,658,903
( 6,611,069)
$ 7,187,186
(7,158,069)
$ -
-
$ 47,834 $ 29,117 $ -
December 31, 2014
Less Than
3 Months
3 Months
to 1 Year
Over
1 Year
Net settled
Foreign exchange
contracts $ 15,600 $ - $ -
Gross settled
Foreign exchange
contracts
Inflows
Outflows
$ 13,853,499
( 13,630,802)
$ -
-
$ -
-
$ 222,697 $ - $ -
3) Bank credit limit
December 31
2015 2014
Unsecured bank general
credit limit
Amount used
Amount unused
$ 2,053,485
30,314,067
$ 1,638,476
43,623,999
$32,367,552 $ 45,262,475
Amount used includes guarantee for customs duties
and for patent litigation.
32. RELATED-PARTY TRANSACTIONS
Balance, transactions, revenue and expenses between HTC
and its subsidiaries, which are related parties of HTC, have
been eliminated on consolidation and are not disclosed in
this note. Besides as disclosed elsewhere in other notes,
details of transactions between the Company and other
related parties are disclosed below.
Operating Sales
For the Year Ended
December 31
2015 2014
Main management $ - $ 2,430
Joint venture 9,971 -
Other related parties - Employees'
Welfare Committee 20,920 22,404
Other related parties - other related
parties' chairperson or its significant
stockholder, is HTC's chairperson 6,302 10,463
$ 37,193 $ 35,297
The following balances of trade receivables from related
parties were outstanding at the end of the reporting period:
December 31
2015 2014
Joint venture $ 541 $ -
Other related parties - other related
parties' chairperson or its significant
stockholder, is HTC's chairperson 1,146 $ 925
$1,687 $ 925
The selling prices for products sold to related parties
were lower than those sold to third parties, except some
related parties have no comparison with those sold to third
parties. No guarantees had been given or received for trade
receivables from related parties. No bad debt expense had
been recognized for the years ended December 31, 2015 and
2014 for the amounts owed by related parties.
Purchase
For the Year Ended
December 31
2015 2014
Other related parties - other related
parties' chairperson or its significant
stockholder, is HTC's chairperson $ - $ 4,454
Purchase prices for related parties and third parties were
similar.
Compensation of Key Management Personnel
For the Year Ended
December 31
2015 2014
Short-term benefits
Post-employment benefits
Share-based payments
$ 247,972
2,710
85,273
$528,353
2,381
60,921
$335,955 $ 591,655
The remuneration of directors and key executives was
determined by the remuneration committee having regard
to the performance of individuals and market trends.
Property, Plant and Equipment Acquired
For the Year Ended
December 31
2015 2014
Other related parties - other related
parties' chairperson or its significant
stockholder, is HTC's chairperson $2,695 $ -
Other Related-party Transactions
a. The Company leased staff dormitory owned by a related
party under an operating lease agreement. The rental
payment is determined at the prevailing rates in the
surrounding area. The Company recognized and paid
rental expenses amounting to NT$3,285 thousand and
NT$5,209 thousand for the years ended December 31,
2015 and 2014, respectively.
b. Other related parties provide selling and marketing
service to the Company. The selling and marketing
service expenses were NT$10,300 thousand and
NT$16,150 thousand for the years ended December 31,
2015 and 2014, respectively. As of December 31, 2014,
the unpaid selling and marketing service expenses was
NT$158 thousand.
33. PLEDGED ASSETS
As of December 31, 2015 and 2014, the time of deposits
amounting to NT$623 thousand and NT$664 thousand
and were classified as other current financial assets were
provided respectively as collateral for rental deposits.
34. COMMITMENTS, CONTINGENCIES
AND SIGNIFICANT CONTRACTS
Lawsuit
a. In April 2008, IPCom GMBH & CO., KG (“IPCom”)
filed a multi-claim lawsuit against the Company with
the District Court of Mannheim, Germany, alleging that
the Company infringed IPCom's patents. In November
2008, the Company filed declaratory judgment action
for non-infringement and invalidity against three of
IPCom's patents with the Washington Court, District of
Columbia.
In October 2010, IPCom filed a new complaint against
the Company alleging patent infringement of patent
owned by IPCom in District Court of Dusseldorf,
Germany.
In June 2011, IPCom filed a new complaint against
the Company alleging patent infringement of patent
owned by IPCom with the High Court in London, the
United Kingdom. In September 2011, the Company filed
declaratory judgment action for non-infringement and
invalidity in Milan, Italy. Legal proceedings in above-
mentioned courts in Germany and the United Kingdom
are still ongoing. The Company evaluated the lawsuits
and considered the risk of patents-in-suits are low. Also,
preliminary injunction and summary judgment against
the Company are very unlikely.
In March 2012, Washington Court granted on the
Company's summary judgment motion and ruled on
non-infringement of two of patents-in-suit. As for the
third patents-in-suit, the Washington Court has granted
a stay on case pending appeal decision. In January 2014,
the Court of Appeal for the Federal Circuit affirmed the
Washington Court's decision.
As of the date that the board of directors approved and
authorized for issuing consolidated financial statements,
there had been no critical hearing, nor had a court
decision been made, except for the above.
b. In July 2014, US patent holding company Acacia
Research Corporation (“Acacia”) has enforced its 6
AMR-WB standard essential patent portfolio against
Deutsche Telekom and Vodafone separately in Germany
through its subsidiary Saint Lawrence Communications
GmbH (“SLC”).