Contents - MiTAC
Contents - MiTAC
Contents - MiTAC
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3) The Company leased certain land (from 1987 to 2008), factories and offices (to<br />
September 2005) under operating leases. Annual rental payments are approximately<br />
$16,967.<br />
8. SIGNIFICANT DISASTER LOSS<br />
None.<br />
9.SIGNIFICANT SUBSEQUENT EVENT<br />
The Company has resolved to purchase 5,000 and 10,000 thousand of its outstanding<br />
common stocks for transferring to its employees at the meetings of the board of directors on<br />
February 24 and March 11, 2004 respectively. The planned acquisition periods are from<br />
February 25 to April 24, 2004, and from March 12 to May 11, 2004. The acquisition prices<br />
ranged from $15 to $17 and from $15 to $17.5, respectively, to the date of this report before<br />
March 15, 2004, the Company had bought back 5,000 and 1,500 thousand shares, and the<br />
total costs were $84,065 and $25,415, respectively.<br />
10. OTHER INFORMATION<br />
1) FAIR VALUE OF FINANCIAL INSTRUMENTS<br />
December 31, 2003 December 31, 2002<br />
Financial Assets Book value Fair value Book value Fair value<br />
Short-term financial assets with fair<br />
value equal to book value<br />
$ 11,508,412 $ 11,508,412 $ 8,548,536 $ 8,548,536<br />
Marketable securities 1,749,607 1,749,777 183,518 183,597<br />
Long-term investments 9,735,303 10,140,152 9,282,515 10,188,596<br />
$ 22,993,322 $ 23,398,341 $ 18,014,569 $ 18,920,729<br />
Sale of forward foreign exchange $ 20,704 $ 20,704 $ 790 $ 790<br />
Buy US$ Put option $ 38,839 $ 38,839 $ 59,209 $ 59,209<br />
Buy US$ SWAP $ - $ - $ 8,543 $ 8,543<br />
December 31, 2003 December 31, 2002<br />
Financial Liabilities<br />
Financial liabilities with fair value equal<br />
Book value Fair value Book value Fair value<br />
to book value<br />
$ 20,162,803<br />
- 69 -<br />
$ 20,162,803<br />
$ 13,318,614<br />
$ 13,318,614<br />
Bonds payable 2,500,000 2,608,983 4,281,739 4,414,797<br />
$ 22,662,803 $ 22,771,786 $ 17,600,353 $ 17,733,411<br />
Purchase of forward foreign exchange $ 24,583 $ 24,583 $ 24,324 $ 24,324<br />
Sell US$ Swap $ 4,319 $ 4,319 $ 8,720 $ 8,720<br />
Sell Interest rate Swap $ 808 $ 808 $ 1,670 $ 1,670<br />
The methods and assumptions used to measure the fair value of financial instruments are as<br />
follows:<br />
A. The carrying amounts of short-term financial assets and liabilities: approximate fair values<br />
due to their short maturities.<br />
B. The fair values of marketable securities and long-term investments are based on the market<br />
value of the securities or, if market value is unavailable, the net equity of the investee<br />
companies are used as fair value.<br />
C. Fair value of bonds payable is estimated by the market value.<br />
D. The book value of long-term loans is used as fair value as the loans bear floating interest<br />
rates.<br />
E. Derivative financial instruments: The estimated fair values are the expected cash flow<br />
(using rates quoted by financial institutions) if the contracts are terminated at the balance<br />
sheet date, including unrealized gains or losses generally. The quotes from financial<br />
institutions are available for most of the Company’s derivate financial instruments.<br />
2) Inter-company eliminate transactions:<br />
Eliminate transactions Transaction parties 2003 2002<br />
1.Write-off of long-term investments and MITAC<br />
$ 7,721,679 $ 6,974,554<br />
stockholders’ equity<br />
International Corp.<br />
and its subsidiaries<br />
2.Write-off of inter-company AR and AP " 1,895,672 2,314,213<br />
3.Write-off of inter-company purchases and sales " 17,737,525 9,882,377<br />
4.Write-off of inter-company unrealized gain " 57,778 11,482<br />
5.Write-off of other inter-company transactions " 785,768 512,872
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