D-Link 2014 Annual Report Download - page 58

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33
D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
(5) Conversion price and adjustment
The conversion price is calculated by using the simple average closing price of the Company’s
common shares based on either one, three or five consecutive business days before the effective
date of January 5, 2010, multiplied by 111.66% of the conversion premium rate. The
conversion price is calculated based on the closing price (after considering the effect of ex-rights
or ex-dividend) of the shares. The conversion price on the issue date was $37.5. Also, it was
adjusted to $28.5 and $30.5 per share based on the ex-dividend date on September 30, 2014 and
July 27, 2013 because of the distribution of cash dividends in 2014 and 2013, respectively.
(6) Early redemption option
From February 13, 2010 (1 month after the issuance date) to December 3, 2014 (forty days
before the maturity date), if (i) the closing price of the Company’s common shares on the TSE
for a period of 30 consecutive trading days before redemption has been at least 30% of the
conversion price in effect on each such trading day, or (ii) at least 90% of the principal amount of
the bonds originally outstanding has been redeemed, repurchased or converted, the Company
may redeem all bonds for cash at face value.
(7) Put options
Bondholders may exercise the put option and request the Company to redeem the bonds at 100%
of par value two years after issuance with a redemption date of January 12, 2012. Upon request,
the Company shall redeem the bonds for cash within five trading days after the redemption date.
(m) Operating leases
(1) Leases – Lessee
Non-cancellable operating lease rentals are payable as follows:
December 31,
2014
December 31,
2013
Within one year $ 277,947 189,347
One to five years 577,040 469,592
Over five years 176,971
223,721
$ 1,031,958
882,660
The operating leases recognized in profit or loss in 2014 and 2013 amounting to $338,206
thousand and $349,005 thousand, respectively.
(2) Leases – Lessor
For information on investment property leased under operating leases, please refers to note 6(h).
Rental income general from investment property in 2014 and 2013 amounting to $2,589 thousand
and $2,576 thousand, respectively.
(n) Employee benefits
(1) The reconciliation of the present value of the defined benefit obligations and fair value of plan
assets were as follows: