1999 Annual Report - Delta Electronics

The initial conversion price, which was set on the issuance date at $86 (dollars) per share, is adjusted for
increase in common shares outstanding. As of December 31, 1999, the adjusted conversion price was $71.6
(dollars) per share.
The investors may require the Company to redeem the bonds for cash at 114.85% of the bond principal
amount as of February 23, 2002 or 129.39% of the bond principal amount as of February 23, 2004.
B) The difference between the redemption price and the par value of bonds, recognized as interest expense and
Interest Payable on Redemption, using the effective interest method in 1999 was $57,992.
8)
Long-term loan
Bank Name Type of loan Collateral
Industrial New products None
Development development
Bureau of the
Ministry of
Economic Affairs
loan
Less: Current portion
Under the "Plan for Encouragement of Development of New Industrial Products of Guidance," the Company
entered into a non-interest bearing loan agreement with the Industrial Development Bureau of the Ministry of
Economic Affairs. The loan amount of $12,364 was fully drawn down in July 1997 and is repayable in 8 equal
quarterly installments starting from October 1998.
9) Reserve for retirement plan
A. The Company has an employee retirement plan covering all regular employees. Under the plan, the pension
benefits payable to employees are determined as follows:
a. 2 months of average salary will be paid for each year of service for the first fifteen years.
b. For the service period over 15 years, one month of average salary will be paid per year.
c. There is a limitation of 45 months of average salary.
d. A half year of service is credited for the service period shorter than a half year. For the service period of 6
months and over, a whole year of service is credited.
B. The balance of the pension fund of the Company and the subsidiary, DNI, which is deposited with the Central
Trust of China, was $213,456 and $195,100 as of December 31, 1999 and 1998, respectively.
C. Based on the measurement dates at December 31, 1999 and 1998, the related assumptions used to calculate the
net periodic pension cost and the reconciliation of the funding status to accrued pension liability as of December
31, 1999 and 1998 were as follows:
Vested benefit obligation
Non-vested benefit obligation
Accumulated benefit obligation
Additional benefits based on future
salary increases
Projected benefit obligation
Fair value of plan assets
Funded status
Unrecognized transition obligation
Unrecognized net gain
Additional liabilities
Accrued pension
December 31,
1999 1998
December 31,
1999 1998
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