1999 Annual Report - Delta Electronics

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The related assumptions were as follows:
1999 1998
Discount rate 6.00% 6.50%
Expected return rate on plan assets 6.00% 6.25%
The average ratio of salary increase 6.00% 6.00%
D. The details related to net pension cost for 1999 and 1998 were as follows:
1999 1998
Service cost
Interest cost
Expected return on plan assets
Unrecognized transition obligation
Unrecognized pension (gain) loss
Net pension cost
10) Common stock
The authorized capital of the Company amounted to $9,000,000. As of December 31, 1998, the outstanding capital
of the Company amounted to $5,606,858. Based on the resolution adopted at the shareholders' meeting on May 12,
1999, the Company issued 123,391,542 shares of common stock as stock dividends and employees' bonus by
capitalizing retained earnings in the amount of $1,233,915 during 1999. In 1999, $504,568 (50,456,831 shares) of
new share entitlement certificates were converted into common shares. As of December 31, 1999, the total issued
and outstanding common stock was 734,534,144 shares at $10 (dollars) par value per share.
11) New share entitlement certificates
When the holders of convertible bonds exercise their conversion right during the year, the Company issues new
share entitlement certificates to these holders. Issuance of new shares in exchange for the certificates is made at
capital incremental date or year-end. The rights and obligations of the holders of the certificates are the same as
those of the shareholders of common stock, except that they are excluded from participating in the distribution of
prior year's earnings and subscription of new shares.
As of December 31, 1999, the issued and outstanding new share entitlement certificates amounted to $132,230.
12) Capital reserve
Premium from conversion of convertible bonds
Appreciation on revaluation of asset
Gain on disposal of property, plant and
equipment, net of income tax
Long-term investment - adjustment to reflect
proportionate share of subsidiaries' net assets
Unpaid interest payable of convertible bonds
Adjustment due to change in capital reserve
of the investee companies
Transfer of gain on disposal of property, plant
and equipment to capital reserve by the
investee companies
December 31,
1999 1998
A. The Company Law of R.O.C requires that the capital reserve shall be exclusively used to cover accumulated
deficit or increase capital and shall not be used for any other purposes.
B. The Securities Exchange Law of R.O.C and related regulations require that the utilization of capital reserve from
appreciation on revaluation of land for capital increase is limited to once each year, and shall not exceed 10% of
the appreciation on revaluation of land and 10% of the Company's outstanding capital stock for each capital
increase.