Contents - MiTAC
Contents - MiTAC
Contents - MiTAC
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11) OTHER LIABILITIES<br />
December 31,<br />
2003 2002<br />
Minority interest $ 123,432 $ 277,333<br />
Deferred credit-unrealized inter-company gains 79,730 81,548<br />
$ 203,162 $ 358,881<br />
12) RETIREMENT FUND<br />
A. All of the regular employees of the Company are covered by the pension plans.<br />
Under the plans, the Company and its consolidated subsidiary company<br />
contribute each an amount equal to 2% of total wages on a monthly basis to the<br />
pension fund deposited with the Central Trust of China. Pension benefits are<br />
generally based on service years and are paid from fund previously contributed.<br />
B. Based on actuarial assumptions for the years 2003 and 2002, the discount rate are<br />
3.5% and 4%, expected rate of return on plan assets are 2.75% and 3.25%,<br />
respectively, and the rate of compensation increase is 3% for both years. The<br />
transition obligation is amortized equally over 15 years.<br />
The Company’s funded status of pension plan is listed as follows:<br />
a. Reconciliation of plan funded status to balance sheet amounts<br />
December<br />
- 60 -<br />
31, 2003<br />
December<br />
31, 2002<br />
Vested benefit obligation ( $ 9,473 ) ( $ 3,923 )<br />
Non-vested benefit obligation ( 158,848 ) ( 140,978 )<br />
Accumulated benefit obligation ( 168,321 ) ( 144,901 )<br />
Effect of projected salary increase ( 79,602 ) ( 71,419 )<br />
Projected benefit obligation ( 247,923 ) ( 216,320 )<br />
Market-related value of plan assets 190,973 176,681<br />
Funded status ( 56,950 ) ( 39,639 )<br />
Unrecognized transition obligation ( 7,348 ) ( 8,398 )<br />
Unrecognized loss 46,136 46,856<br />
Prepaid pension cost ( $ 18,162 ) ( $ 1,181 )<br />
Vested benefit $ 11,384 $ 5,816<br />
b. Net periodic pension cost<br />
2003 2002<br />
Service cost $ 24,955 $ 20,287<br />
Interest cost 8,653 9,672<br />
Expected return on plan assets ( 5,742 ) ( 8,559 )<br />
Amortization of unrecognized gain<br />
Amortization of net transition<br />
( 1,050 ) ( 1,050 )<br />
obligation<br />
1,949<br />
1,102<br />
Net periodic pension cost $ 28,765 $ 21,452<br />
13) CAPITAL<br />
A. The Company has authorized capital of 1,710,000 thousand shares (of which<br />
200,000 thousand shares are reserved for convertible bonds issued, 150,000<br />
thousand shares are reserved for employees’ stock options and 200,000 thousand<br />
shares are reserved for bonds with detachable warrants) with NT$10 (in dollar)<br />
par value per share. As of December 31, 2003, the total issued and outstanding<br />
common shares amounted to $10,563,812.
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