2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)13.1 Receivables from SPVsReceivables from SPVs represent the amount due from sale of certain non-performing assets to the SPVs.In 2005, the former EPCIB sold certain nonperforming assets having book value of P15,069 to PhilippineInvestment One, Philippine Investment Two and Cameron Granville Asset Management, Inc. (CGAM) for aconsideration of P4,134. Cash received from the SPVs amounted to P98 in 2005 and the balance of P3,336,through issuance of SPV Notes, shall be paid based on a cash flow waterfall arrangement and interest rate of20% and 50% per annum on the P2,776 and P560, respectively. Also, in 2005, the former Equitable SavingsBank, Inc. (ESB) entered into sale and purchase agreements with CGAM and LNC (SPV-AMC) Corporation(LNC) for the sale of the former ESB’s loans to CGAM for P621 and for the sale of its investment propertiesto LNC for P98. The former ESB received SPV Notes amounting to P60 for loans from CGAM and P39 forinvestment properties from LNC, in addition to cash received amounting to P23 from CGAM and P4 fromLNC.As of December 31, 2009 and 2008, allowance for impairment on receivables from SPVs amounted to P3,440and P2,991, respectively.13.2 Deposits Under EscrowDeposits under escrow pertain to the portion of the cash received by BDO Unibank Group in considerationfor its assumption of First e-Bank Corporation’s deposits and other liabilities in October 2002. This amount isheld in escrow pending compliance by BDO Unibank Group with certain terms and conditions as stipulated inthe Memorandum of Agreement (MOA). Deposits under escrow earn an annual effective interest of 6.7% and4.7% in 2009 and 2008, respectively.13.3 Computer Software LicensesBDO ANNUAL REPORT 200995Amortization expense on computer software licenses amounted to P136, P115, and P94 in 2009, 2008 and2007, respectively, in the BDO Unibank Group financial statements and P134, P115, and P93 in 2009, 2008and 2007, respectively, in the Parent Bank financial statements. These are included as part of Other OperatingExpenses in the statement of income (see Note 22).13.4 Non-current Assets Held-for-saleNon-current assets held-for-sale consist of real and other properties acquired through repossession or foreclosurethat BDO Unibank Group intends to sell within one year from the date of classification as held for sale.