HTC 2015 Annual Report Download - page 145

Financial information
Financial information
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In March 2015, SLC got granted 4 injunctions against Deutsche Telekom by the Mannheim court. For the 1st injunction, Deutsche
Telekom had successfully stayed the enforcement by posting a counter bond in late March 2015. For the 2nd to 4th injunctions,
SLC has not enforced them against Deutsche Telekom yet. The way SLC enforced this 6-patent portfolio is subject to the anti-
competition review by European Commission.
The litigations between SLC and Deutsche Telekom in Manheim and Vodafone in Dusseldorf are still ongoing. In order to protect
the interest of the carrier customers, the Company has officially intervened these 2 disputes in the court procedure. In addition,
the Company also sued Acacia for a declaratory judgment action in United States.
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.
c. On the basis of its past experience and consultations with its legal counsel, the Company has measured the possible effects of the
contingent lawsuits on its business and financial condition.
35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The significant financial assets and liabilities denominated in foreign currencies were as follows:
December 31
2015 2014
Foreign Currencies Exchange Rate Foreign Currencies Exchange Rate
Financial assets
Monetary items
USD
EUR
JPY
RMB
$1,806,236
131,664
2,592,347
827,354
33.06
36.13
0.2747
5.03
$ 2,160,227
196,735
6,488,920
1,109,920
31.67
38.49
0.2648
5.10
Non-monetary items
USD 83,243 33.06 61,581 31.67
Investments accounted for by the equity method
USD 966 33.06 500 31.67
Financial liabilities
Monetary items
USD
EUR
JPY
RMB
1,291,619
102,841
2,538,893
375,856
33.06
36.13
0.2747
5.03
1,683,114
165,221
8,025,706
801,706
31.67
38.49
0.2648
5.10
For the years ended December, 2015 and 2014, realized and unrealized net foreign exchange gains were NT$689,281 thousand and
NT$1,097,471 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 and functional currencies of the group entities.
36. 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: Authorization to use CDMA technology to
manufacture and sell units, royalty payment based on
agreement.
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.
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.
37. SEGMENT INFORMATION
Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment
performance focuses on types of goods or services delivered or provided. Under IFRS 8 - “Operating Segments,” the Company is
organized and managed as a single reportable business segment. The Company's operations are mainly in the research, design,
manufacture and sale of smart mobile devices and the operating revenue is more than 90 percent of the total revenue.