D-Link 2004 Annual Report Download - page 65

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37
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
(2) In accordance with the Statute for Upgrading Industries, D-Link recorded a provision for loss on
foreign investment equal on 20% of the foreign investment made and registered with the
authority starting from 2001.
Such provision is not acceptable under the generally accepted accounting principles in the ROC.
The provision has been reversed when preparing the accompanying consolidated financial
statements. However, for local tax purposes, the adjustment is not posted to D-Link’ s books. As
a result, the unappropriated earnings shown in the accompanying 2003 and 2004 consolidated
financial statements exceed that in D-Link’ s books by $165,217thousand and $526,757 thousand,
respectively.
22. Segment Financial Information
(1) Industry information
D-Link and its subsidiaries principally operate in one industry segment: network communication
products.
(2) Geographic information
The geographical breakdown of sales for the years ended December 31, 2003 and 2004, is
summarized as follows:
2003
Americas Europe Asia Australia
Adjustments
and
eliminations Total
Area revenue:
Third-party customers $ 7,612,503 6,171,897 10,403,000 828,821 - 25,016,221
Inter-company 376,268 22,408 16,455,448 3,734 (16,857,858) -
$ 7,988,771 6,194,305 26,858,448 832,555 (16,857,858) 25,016,221
Area profit before taxes
and minority interest $ 27,667 40,105 1,023,177 28,465 435,231 1,554,645
Area identifiable assets $ 4,119,554 2,506,335 30,847,263 351,756 (14,053,835) 23,771,073