1999 Annual Report - Delta Electronics

short-term loan, accounts payable, tax payable, accrued expenses, other payables and other current liabilities are
their fair values because of their short-term maturities.
b. The fair value of cash surrender value of life insurance is based on book value at balance sheet date.
c. The fair values of deposits-out and deposits-in are based on book value, which are close to present value.
d. The fair value of convertible bonds is based on book value at balance sheet date because of the recognition of
interest payable on redemption, for the difference between the redemption price and the par value of bonds, and
the translation into New Taiwan dollars at the rates of exchange prevailing at the balance sheet date.
e. The fair value of long-term loans (including current portion) is based on book value, because there is no
significant difference in the discounted value of future cash flows and the carrying amount of long-term loans.
B. The fair values of long-term investments are their market values or the underlying equity in net assets and/or other
financial information, if market value is not available.
C. The fair value of reserve for retirement plan is the funded status based on the retirement actuarial report as of
December 31, 1999.
3) Information on derivative transactions
A. General information disclosure:
a. Purpose:
The Company and its consolidated subsidiary, DNI, entered into certain foreign currency option contracts,
premium currency deposit, forward foreign currency contracts and cross currency swap contracts to hedge foreign
exchange risks in foreign currency denominated accounts receivable.
b. Par value, contract amount and notional principal amount: (in thousand)
a) Foreign currency option contracts
All of the foreign currency option contracts matured as of December 31, 1999. The amounts of the outstanding
option contracts, which the Company entered into with certain banks in 1998 were as follows:
Purchase of option contracts
Sale of option contracts
b) Premium currency deposits
All of the premium currency deposit matured as of December 31, 1999. The Company did not enter into
premium currency deposit with banks in 1998.
c) Forward foreign currency contracts
All of the forward foreign currency contract matured as of December 31, 1999. The Company did not enter
into forward foreign currency contract with banks in 1998.
d) Cross currency swap contracts
December 31, 1998
Purchase amount Sale amount
(NTD) (USD)
The amount of the outstanding swap contracts, which the Company entered into with certain banks, as of
December 31, 1999 were as follows:
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