Letter To Shareholders - Mitac

MITAC INTERNATIONAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31,
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
2009 2008
Cash flows from operating activities:
Consolidated net income $ 289,162 $ 459,289
Adjustments to reconcile consolidated net income to net cash
provided by operating activities:
Bad debts expense 98,296 86,144
Loss on obsolescence and market value decline 208,848 872,558
Depreciation 1,255,893 1,234,006
Amortization 820,251 498,867
Gain on valuation of financial assets ( 14,316 ) ( 11,977 )
(Gain) loss on valuation of financial liabilities ( 82,973 ) 67,185
Impairment loss in financial assets carried at cost – non-current 50,856 -
Gain on disposal of investments ( 216,690 ) ( 122,826 )
Long-term investment income accounted for under the equiity
method ( 1,179,658 ) ( 1,059,436 )
Cash dividends received from long-term investments accounted
for under the equity method 218,276 298,876
(Loss) gain on disposal of property, plant and equipment, net ( 161,409 ) 45,157
Employee compensation plan - employee stock options 120,623 16,591
Changes in assets and liabilities:
(Increase) decrease in:
Notes receivable 11,400 79,843
Accounts receivable 175,952 3,261,264
Other receivables 43,423 382,992
Inventories 373,745 809,226
Prepayments 415,353 ( 229,891 )
Deferred income tax assets 355,068 ( 13,599 )
Increase (decrease) in:
Notes payable ( 24,478 ) ( 7,207 )
Accounts payable ( 1,669,632 ) ( 3,399,952 )
Income tax payable 283,774 ( 264,425 )
Accrued expenses ( 646,414 ) ( 1,674,625 )
Other payables ( 8,407 ) 19,329
Receipts in advance 62,052 ( 361,218 )
Provision for product worranty 72,823 ( 323,201 )
Other current liabilities 199,618 ( 6,256 )
Accrued pension payable ( 97 ) ( 1,455 )
Deferred income tax liabilities ( 357,647 ) ( 148,600 )
Other liabilities – other ( 35,285 ) -
Net cash provided by operating activities 658,407 506,659
(CONTINUED)
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