o
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REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 31,
2009
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period from ________________ to
________________
|
o
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SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
|
|
Date
of event requiring this shell company report
________________
|
AU
OPTRONICS CORP.
(Translation
of Registrant’s name into English)
|
TAIWAN,
REPUBLIC OF CHINA
(Jurisdiction
of incorporation or organization)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
Common
Shares of par value NT$10.00 each
|
The
New York Stock Exchange, Inc.*
|
|
*
|
Not for trading, but only in
connection with the listing on the New York Stock Exchange, Inc. of
American Depositary Shares representing such Common
Shares
|
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o |
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·
|
the
impact of the global economic and financial crisis and the resulting
slowdown in the global economy;
|
·
|
the
cyclical nature of our industry;
|
·
|
further
declines in average selling prices;
|
·
|
excess
capacity in the thin film transistor liquid crystal display (“TFT-LCD”)
industry;
|
·
|
our
dependence on introducing new products on a timely
basis;
|
·
|
our
dependence on growth in the demand for our
products;
|
·
|
our
ability to compete effectively;
|
·
|
our
ability to expand into new businesses or
industries;
|
·
|
our
ability to undertake mergers and acquisitions or
investments;
|
·
|
changes
in technology and competing
products;
|
·
|
our
ability to successfully expand our
capacity;
|
·
|
our
ability to acquire sufficient raw materials and key
components;
|
·
|
our
dependence on key personnel;
|
·
|
general
political and economic conditions, including those related to the TFT-LCD
industry;
|
·
|
litigation
and regulatory investigations against
us;
|
·
|
possible
disruptions in commercial activities caused by natural and human-induced
disasters, including terrorist activity and armed
conflict;
|
·
|
fluctuations
in foreign currency exchange rates;
and
|
·
|
other
factors in the “Risk Factors” section in this annual report. Please see
“Item 3. Key Information—3.D. Risk
Factors.”
|
Year
Ended and As of December 31,
|
||||||||||||||||||||||||
2005
|
2006
|
2007
|
2008
|
2009
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except percentages and per share and per ADS
data)
|
||||||||||||||||||||||||
Consolidated
Statement of Operations Data:
|
||||||||||||||||||||||||
ROC
GAAP
|
||||||||||||||||||||||||
Net
sales
|
217,388.4 | 293,106.8 | 480,183.6 | 423,928.2 | 359,331.3 | 11,246.7 | ||||||||||||||||||
Gross
profit
|
29,848.0 | 29,850.3 | 86,178.2 | 55,327.9 | 7,040.9 | 220.4 | ||||||||||||||||||
Operating
expenses
|
12,859.3 | 15,634.0 | 22,903.5 | 22,235.6 | 22,279.9 | 697.3 | ||||||||||||||||||
Operating
income (loss)
|
16,988.7 | 14,216.3 | 63,274.8 | 33,092.3 | (15,239.1 | ) | (477.0 | ) | ||||||||||||||||
Earnings
(loss) before income tax and cumulative effect of changes in accounting
principles
|
16,094.6 | 10,200.3 | 58,563.8 | 26,270.9 | (27,267.4 | ) | (853.4 | ) | ||||||||||||||||
Income
tax (expense) benefit
|
(473.4 | ) | (1,068.3 | ) | (2,087.9 | ) | (4,629.1 | ) | 22.6 | 0.7 | ||||||||||||||
Cumulative
effect of changes in accounting principles(1)
|
– | (38.6 | ) | – | – | – | – | |||||||||||||||||
Net
income (loss)
|
15,621.2 | 9,093.4 | 56,475.9 | 21,641.8 | (27,244.8 | ) | (852.7 | ) | ||||||||||||||||
Weighted
average shares outstanding—Basic
|
6,742.1 | 7,397.9 | 8,695.1 | 8,760.3 | 8,796.7 | 8,796.7 | ||||||||||||||||||
Weighted
average shares outstanding—Diluted (2)
|
6,742.1 | 7,511.3 | 9,115.8 | 9,111.1 | 8,796.7 | 8,796.7 |
Year
Ended and As of December 31,
|
||||||||||||||||||||||||
2005
|
2006
|
2007
|
2008
|
2009
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except percentages and per share and per ADS
data)
|
||||||||||||||||||||||||
Consolidated
Statement of Operations Data:
|
||||||||||||||||||||||||
ROC
GAAP (continued)
|
||||||||||||||||||||||||
Earnings
(loss) per share—Basic
|
2.32 | 1.23 | 6.49 | 2.43 | (3.04 | ) | (0.10 | ) | ||||||||||||||||
Earnings
(loss) per share—Diluted(2)
|
2.32 | 1.14 | 6.16 | 2.34 | (3.04 | ) | (0.10 | ) | ||||||||||||||||
Earnings
(loss) per ADS equivalent—Basic
|
23.18 | 12.31 | 64.88 | 24.28 | (30.43 | ) | (0.95 | ) | ||||||||||||||||
Earnings
(loss) per ADS equivalent—Diluted(2)
|
23.18 | 11.41 | 61.64 | 23.39 | (30.43 | ) | (0.95 | ) | ||||||||||||||||
Consolidated
Balance Sheet Data:
|
||||||||||||||||||||||||
ROC
GAAP
|
||||||||||||||||||||||||
Current
assets
|
95,841.0 | 152,771.4 | 217,878.3 | 146,293.1 | 196,460.8 | 6,149.0 | ||||||||||||||||||
Property,
plant and equipment
|
221,126.8 | 381,550.7 | 363,835.1 | 389,348.3 | 390,750.1 | 12,230.1 | ||||||||||||||||||
Goodwill
and intangible assets
|
2,483.3 | 20,142.8 | 19,554.4 | 15,548.1 | 14,293.3 | 447.4 | ||||||||||||||||||
Total
assets
|
329,796.3 | 578,157.9 | 617,459.2 | 566,935.6 | 622,612.8 | 19,487.1 | ||||||||||||||||||
Current
liabilities
|
89,858.1 | 167,345.6 | 174,520.9 | 152,484.7 | 202,725.4 | 6,345.1 | ||||||||||||||||||
Long-term
liabilities
|
83,940.3 | 179,716.0 | 142,097.2 | 115,170.9 | 144,829.2 | 4,533.0 | ||||||||||||||||||
Total
liabilities
|
173,976.8 | 347,081.6 | 316,639.4 | 267,676.9 | 347,693.8 | 10,882.4 | ||||||||||||||||||
Capital
stock
|
58,305.5 | 75,734.0 | 78,177.1 | 85,057.2 | 88,270.5 | 2,762.8 | ||||||||||||||||||
Total
stockholders’ equity
|
155,819.5 | 231,076.3 | 300,819.9 | 299,258.7 | 274,919.0 | 8,604.7 | ||||||||||||||||||
Other
Financial Data:
|
||||||||||||||||||||||||
ROC
GAAP
|
||||||||||||||||||||||||
Gross
margin(3)
|
13.7 | % | 10.2 | % | 17.9 | % | 13.1 | % | 2.0 | % | 2.0 | % | ||||||||||||
Operating
margin(4)
|
7.8 | % | 4.9 | % | 13.2 | % | 7.8 | % | (4.2 | )% | (4.2 | )% | ||||||||||||
Net
margin(5)
|
7.2 | % | 3.1 | % | 11.8 | % | 5.1 | % | (7.6 | )% | (7.6 | )% | ||||||||||||
Capital
expenditures
|
80,652.3 | 87,246.7 | 65,136.7 | 98,355.2 | 61,046.9 | 1,910.7 | ||||||||||||||||||
Depreciation
and amortization
|
34,493.2 | 52,760.2 | 81,705.6 | 81,188.4 | 90,107.6 | 2,820.3 | ||||||||||||||||||
Cash
dividend paid
|
5,935.2 | 1,749.2 | 1,514.8 | 19,670.6 | 2,551.7 | 79.9 | ||||||||||||||||||
Cash
flows from operating activities
|
48,006.0 | 68,526.7 | 156,926.9 | 132,057.5 | 57,041.0 | 1,785.3 | ||||||||||||||||||
Cash
flows from investing activities
|
(82,456.2 | ) | (83,300.6 | ) | (66,123.1 | ) | (101,257.4 | ) | (66,616.7 | ) | (2,085.0 | ) | ||||||||||||
Cash
flows from financing activities
|
43,097.3 | 32,550.8 | (44,816.6 | ) | (37,435.6 | ) | 11,925.3 | 373.2 |
Year
Ended and As of December 31,
|
||||||||||||||||||||||||
2005
|
2006
|
2007
|
2008
|
2009
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except percentages and per common share and per ADS
data)
|
||||||||||||||||||||||||
Consolidated
Statement of Operations Data:
|
||||||||||||||||||||||||
US
GAAP
|
||||||||||||||||||||||||
Net
sales
|
217,388.4 | 293,106.8 | 480,184.3 | 423,928.2 | 358,732.8 | 11,227.9 | ||||||||||||||||||
Gross
profit
|
22,126.5 | 23,372.0 | 73,179.3 | 42,959.9 | 766.4 | 24.0 | ||||||||||||||||||
Operating
expenses
|
12,642.7 | 15,819.3 | 21,328.3 | 22,811.7 | 29,076.1 | 910.0 | ||||||||||||||||||
Operating
income (loss)
|
9,483.8 | 7,552.6 | 51,851.0 | 20,148.1 | (28,309.7 | ) | (886.1 | ) | ||||||||||||||||
Earnings
(loss) before income tax, extraordinary item and non-controlling
interests
|
8,837.1 | 2,222.4 | 48,434.3 | 16,086.2 | (29,662.3 | ) | (928.4 | ) | ||||||||||||||||
Income
tax (expense) benefit
|
(473.4 | ) | (1,059.2 | ) | (3,053.1 | ) | (2,579.6 | ) | 1,359.5 | 42.6 | ||||||||||||||
Non-controlling
interests in (loss) income
|
(5.8 | ) | (10.0 | ) | 25.7 | 416.9 | 367.5 | 11.5 | ||||||||||||||||
Extraordinary
item(6)
|
308.7 | – | – | – | – | – | ||||||||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics
Corp.
|
8,678.2 | 1,173.2 | 45,355.5 | 13,089.7 | (28,670.3 | ) | (897.3 | ) | ||||||||||||||||
Weighted
average shares outstanding—Basic
|
6,356.6 | 7,089.0 | 8,409.6 | 8,606.7 | 8,785.2 | 8,785.2 | ||||||||||||||||||
Weighted
average shares outstanding—Diluted(2)
|
6,356.6 | 7,089.1 | 8,818.3 | 8,817.6 | 8,785.2 | 8,785.2 | ||||||||||||||||||
Earnings
(loss) per share—Basic:
|
||||||||||||||||||||||||
Income
(loss) before extraordinary item
|
1.32 | 0.17 | 5.39 | 1.52 | (3.26 | ) | (0.10 | ) | ||||||||||||||||
Extraordinary
item
|
0.05 | – | – | – | – | – | ||||||||||||||||||
Net
income (loss)
|
1.37 | 0.17 | 5.39 | 1.52 | (3.26 | ) | (0.10 | ) | ||||||||||||||||
Earnings
(loss) per share—Diluted(2)
|
Year
Ended and As of December 31,
|
||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | ||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in
millions, except percentages and per common share and per ADS
data)
|
||||||||||||||||||||||||
Consolidated
Statement of Operations Data:
|
||||||||||||||||||||||||
US
GAAP (continued)
|
||||||||||||||||||||||||
Income
(loss) before extraordinary item
|
1.32 | 0.17 | 5.17 | 1.49 | (3.26 | ) | (0.10 | ) | ||||||||||||||||
Extraordinary
item
|
0.05 | – | – | – | – | – | ||||||||||||||||||
Net
income (loss)
|
1.37 | 0.17 | 5.17 | 1.49 | (3.26 | ) | (0.10 | ) | ||||||||||||||||
Earnings
(loss) per ADS equivalent—Basic:
|
||||||||||||||||||||||||
Income
(loss) before extraordinary item
|
13.17 | 1.65 | 53.93 | 15.21 | (32.63 | ) | (1.02 | ) | ||||||||||||||||
Extraordinary
item
|
0.49 | – | – | – | – | – | ||||||||||||||||||
Net
income (loss)
|
13.66 | 1.65 | 53.93 | 15.21 | (32.63 | ) | (1.02 | ) | ||||||||||||||||
Earnings
(loss) per ADS equivalent—Diluted:(2)
|
||||||||||||||||||||||||
Income
(loss) before extraordinary item
|
13.17 | 1.65 | 51.67 | 14.89 | (32.63 | ) | (1.02 | ) | ||||||||||||||||
Extraordinary
item
|
0.49 | – | – | – | – | – | ||||||||||||||||||
Net
income (loss)
|
13.66 | 1.65 | 51.67 | 14.89 | (32.63 | ) | (1.02 | ) | ||||||||||||||||
Consolidated
Balance Sheet Data:
|
||||||||||||||||||||||||
US
GAAP
|
||||||||||||||||||||||||
Current
assets
|
93,469.8 | 150,855.5 | 215,929.0 | 145,522.3 | 195,902.9 | 6,131.5 | ||||||||||||||||||
Property,
plant and equipment
|
220,974.0 | 380,859.8 | 361,197.2 | 383,958.1 | 385,571.6 | 12,068.0 | ||||||||||||||||||
Goodwill
and intangible assets
|
16,578.5 | 33,188.5 | 30,334.7 | 26,399.4 | 25,036.5 | 783.6 | ||||||||||||||||||
Total
assets
|
342,809.3 | 588,431.5 | 623,655.0 | 568,985.6 | 626,141.8 | 19,597.6 | ||||||||||||||||||
Current
liabilities
|
91,288.0 | 169,543.8 | 180,765.1 | 152,647.2 | 203,120.9 | 6,357.5 | ||||||||||||||||||
Long-term
liabilities
|
84,485.1 | 179,927.6 | 142,182.1 | 115,209.3 | 145,004.4 | 4,538.5 | ||||||||||||||||||
Total
liabilities
|
175,773.1 | 349,471.4 | 322,947.2 | 267,856.5 | 348,125.3 | 10,896.0 | ||||||||||||||||||
Non-controlling
interests in subsidiaries
|
117.3 | 342.0 | 8,842.0 | 7,737.2 | 11,747.5 | 367.7 | ||||||||||||||||||
Total
equity attributable to stockholders of AU Optronics Corp.
|
166,918.9 | 238,618.1 | 291,865.8 | 293,391.9 | 266,269.0 | 8,333.9 | ||||||||||||||||||
Other
Financial Data:
|
||||||||||||||||||||||||
US
GAAP
|
||||||||||||||||||||||||
Gross
margin(3)
|
10.2 | % | 8.0 | % | 15.2 | % | 10.1 | % | 0.2 | % | 0.2 | % | ||||||||||||
Operating
margin(4)
|
4.4 | % | 2.6 | % | 10.8 | % | 4.8 | % | (7.9 | )% | (7.9 | )% | ||||||||||||
Net
margin(5)
|
4.0 | % | 0.4 | % | 9.4 | % | 3.1 | % | (8.0 | )% | (8.0 | )% | ||||||||||||
Capital
expenditures
|
80,801.0 | 87,408.9 | 65,300.5 | 98,330.6 | 61,331.5 | 1,919.6 | ||||||||||||||||||
Depreciation
and amortization
|
36,067.1 | 54,940.0 | 84,984.5 | 83,680.4 | 91,506.9 | 2,864.1 | ||||||||||||||||||
Cash
flows from operating activities
|
46,951.9 | 67,955.3 | 156,942.2 | 132,044.2 | 58,566.1 | 1,833.1 | ||||||||||||||||||
Cash
flows from investing activities
|
(81,428.1 | ) | (83,130.7 | ) | (66,313.7 | ) | (101,242.4 | ) | (68,550.3 | ) | (2,145.5 | ) | ||||||||||||
Cash
flows from financing activities
|
43,783.9 | 32,951.7 | (44,816.6 | ) | (37,473.2 | ) | 11,467.6 | 358.9 |
(1)
|
Represents
the cumulative effect of our adoption of Republic of China Statement of
Financial Accounting Standards (“ROC SFAS”) No. 34 “Financial Instruments:
Recognition and Measurement” on January 1,
2006.
|
(2)
|
Diluted
earnings per share in 2009 was not calculated due to the anti-dilutive
effect of stock options and convertible
bonds.
|
(3)
|
Gross
margin is calculated by dividing gross profit by net
sales.
|
(4)
|
Operating
margin is calculated by dividing operating income by net
sales.
|
(5)
|
Net
margin is calculated by dividing net income by net
sales.
|
(6)
|
Represents
the proportionate share of extraordinary gain reported by equity-method
investee in 2005.
|
NT
Dollars per U.S. Dollar Noon Buying Rate
|
||||||||||||||||
Average
|
High
|
Low
|
Period-End
|
|||||||||||||
(of
month-end rates for years)
|
||||||||||||||||
2005
|
NT$ | 32.13 | NT$ | 33.77 | NT$ | 30.65 | NT$ | 32.80 | ||||||||
2006
|
32.51 | 33.31 | 31.28 | 32.59 | ||||||||||||
2007
|
32.85 | 33.41 | 32.26 | 32.43 | ||||||||||||
2008
|
31.52 | 33.55 | 29.99 | 32.76 | ||||||||||||
2009
|
32.96 | 35.21 | 31.95 | 31.95 | ||||||||||||
November
|
32.32 | 32.58 | 32.12 | 32.20 | ||||||||||||
December
|
32.25 | 32.38 | 31.95 | 31.95 | ||||||||||||
2010:
(through May 7)
|
31.78
|
32.14
|
31.30
|
31.77
|
||||||||||||
January
|
31.87 | 32.04 | 31.65 | 31.94 | ||||||||||||
February
|
32.06 | 32.14 | 31.98 | 32.12 | ||||||||||||
March
|
31.83 | 32.04 | 31.70 | 31.73 | ||||||||||||
April
|
31.48 | 31.74 | 31.30 | 31.31 | ||||||||||||
May
(through 7)
|
31.56
|
31.77
|
31.40
|
31.77
|
·
|
Our ability to develop and
introduce new products to meet customers’ needs in a timely manner.
The inability to develop or introduce new products in a timely manner may
hurt our competitive position because customers may choose to source more
advanced products from competitors.
|
·
|
Our ability to develop or
acquire and implement new manufacturing processes and product
technologies. If we are unable to successfully implement new
manufacturing processes and product technologies in a timely manner, our
competitors may seize new opportunities in new
markets.
|
·
|
Our ability to control our
fixed and variable costs and operating expenses. Increased fixed
and variable costs and operating expenses may reduce our margins and
adversely affect our results of
operations.
|
·
|
Our ability to expand
capacity. We may not be able to meet market demand in a timely
manner if we are unable to successfully implement our expansion
plans.
|
·
|
Our ability to manage our
product mix. Our results of operations may fluctuate if we are
unable to manage our product mix to meet our customers’ demand in a timely
manner.
|
·
|
Our ability to obtain raw
materials and components at acceptable prices and in a timely
manner. A shortage in raw materials and components could result in
increased raw materials and components costs and put downward pressure on
gross margins as well as cause delays to our production and delivery
schedules, which may result in the loss of customers and
revenues.
|
·
|
Lower than expected growth in
demand for TFT-LCD panels resulting in oversupply in the market.
When oversupply conditions occur, we may reduce the price of our panels to
maintain high capacity utilization rates or adjust our utilization
rate.
|
·
|
Our ability to obtain adequate
external financing on satisfactory terms. Our business
is capital-intensive and if we are unable to obtain adequate external
financing on satisfactory terms, it will have a material adverse effect on
our business, results of operations and future
prospects.
|
·
|
Fines and penalties payable.
We and certain of our subsidiaries, along with various competitors
in the TFT-LCD industry, are under investigation for alleged violation of
antitrust and competition laws. Any penalties, fines or settlements made
in connection with this investigation and/or these lawsuits may have a
material adverse effect on our business, results of operations and future
prospects.
|
·
|
changes
in general political, economic and legal conditions, such as the impact of
the recent global financial crisis on economic growth and the resulting
slowdown in the global economy;
|
·
|
the
cyclical nature of both the TFT-LCD industry, including fluctuations in
average selling prices, and the markets served by our
customers;
|
·
|
the
speed at which we and our competitors expand production
capacity;
|
·
|
access
to raw materials and components, equipment, electricity, water and other
required utilities on a timely and economical
basis;
|
·
|
technological
changes;
|
·
|
the
loss of a key customer or the postponement, rescheduling or cancellation
of large orders from customers;
|
·
|
the
outcome of ongoing and future litigation and government
investigations;
|
·
|
changes
in end-users’ spending patterns;
|
·
|
changes
to our management team;
|
·
|
access
to funding on satisfactory terms;
|
·
|
our
customers’ adjustments in their inventory;
and
|
·
|
natural
disasters, such as typhoons and earthquakes, and industrial accidents,
such as fires and power failures, as well as geo-political instability as
a result of terrorism or political or military
conflicts.
|
·
|
our
growth plan and strategy;
|
·
|
manufacturing
process and product technologies;
|
·
|
market
conditions;
|
·
|
prices
of equipment;
|
·
|
costs
of construction and installation;
and
|
·
|
interest
rates and foreign exchange rates.
|
·
|
price;
|
·
|
product
performance features and quality;
|
·
|
customer
service, including product design
support;
|
·
|
ability
to reduce production cost;
|
·
|
ability
to provide sufficient quantity of products to fulfill customers’
needs;
|
·
|
research
and development;
|
·
|
time-to-market;
and
|
·
|
access
to capital.
|
·
|
the
level of contaminants in the manufacturing
environment;
|
·
|
human
error;
|
·
|
equipment
malfunction;
|
·
|
use
of substandard raw materials and components;
and
|
·
|
inadequate
sample testing.
|
·
|
discontinue
using disputed manufacturing process
technologies;
|
·
|
pay
substantial monetary damages;
|
·
|
seek
to develop non-infringing technologies, which may not be
feasible;
|
·
|
stop
shipment to certain areas; or
|
·
|
seek
to acquire licenses to the infringed technology, which may not be
available on commercially reasonable terms, if at
all.
|
·
|
Computer
products, which typically utilize display panels ranging from 8.9 inches
to 24 inches, primarily for use in notebook computers and desktop
monitors.
|
·
|
Consumer
electronics products, which typically utilize display panels ranging from
1.2 inches to 10.4 inches or above for use in products such as mobile
phones, digital photo frames, digital still cameras, portable navigation
display, portable DVD players, digital camcorders, automobile display,
amusement and printer displays.
|
·
|
LCD
television, which typically utilizes display panels with panel size of 19
inches to 65 inches. We commenced the production of display panels for LCD
television in the fourth quarter of
2002.
|
·
|
Industrial
display, which typically utilizes display panels with panel size of 5.7
inches to 65 inches primarily for use in automatic teller machines, point
of sale systems, kiosks, industrial PCs, marine and aviation electronics,
game machines, medical equipment, factory automation systems, e-Signage
and public information displays.
|
Year
Ended December 31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
(Panels
in thousands)
|
||||||||||||
Panels
for Computer Products
|
||||||||||||
Panels
for notebook computers
|
27,478.9 | 32,881.6 | 35,225.9 | |||||||||
Panels
for desktop monitors
|
30,715.0 | 28,492.0 | 27,000.7 | |||||||||
Total
panels for computer products
|
58,193.9 | 61,373.6 | 62,226.6 | |||||||||
Panels
for Consumer Electronics Products
|
144,087.2 | 184,311.5 | 232,023.2 | |||||||||
Panels
for LCD Television
|
18,875.9 | 18,754.1 | 22,824.3 | |||||||||
Panels
for Industrial Display
|
2,813.3 | 3,244.0 | 523.2 | (1) | ||||||||
Total
|
223,970.3 | 267,683.2 | 317,597.3 |
(1)
|
The
significant decrease in the amount of panels for industrial display was
primarily due to the reclassification of the industrial display product
category into the audio-video display product category under our Consumer
Products Display Business Group and Television Displays Business Group
based on panel size and applications starting from April
2009.
|
Year
Ended December 31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
millions)
|
||||||||||||||||
Panels
for Computer Products
|
||||||||||||||||
Panels
for notebook computers
|
89,030.3 | 81,100.6 | 60,432.0 | 1,891.5 | ||||||||||||
Panels
for desktop monitors
|
133,278.3 | 93,096.9 | 68,431.1 | 2,141.8 | ||||||||||||
Total panels for computer
products
|
222,308.6 | 174,197.5 | 128,863.1 | 4,033.3 | ||||||||||||
Panels
for Consumer Electronics Products
|
43,023.2 | 42,598.8 | 45,131.3 | 1,412.6 | ||||||||||||
Panels
for LCD Television
|
200,572.9 | 188,161.5 | 166,223.0 | 5,202.6 | ||||||||||||
Panels
for Industrial Display
|
11,988.4 | 13,664.9 | 1,993.1 | 62.4 | (2) | |||||||||||
Others(1)
|
2,290.5 | 5,305.5 | 17,120.8 | 535.8 | ||||||||||||
Total
|
480,183.6 | 423,928.2 | 359,331.3 | (3) | 11,246.7 |
(1)
|
Includes
revenues generated from sales of raw materials, components, other TFT-LCD
panel products and solar modules and from service
charges.
|
(2)
|
The
significant decrease in the amount of net sales for industrial display was
primarily due to the reclassification of the industrial display product
category into the audio-video display product category under our Consumer
Products Display Business Group and Television Displays Business Group
based on panel size and applications starting from April
2009.
|
(3)
|
The
amount is under ROC GAAP. Under US GAAP, the total amount of
net sales was NT$358,732.8 million (US$11,227.9 million). The difference
was due to a difference in accounting treatment for acquisition date of
our equity investment in M. Setek under ROC GAAP versus US GAAP. See note
28 to our consolidated financial statements for information relating to
the nature and effect of significant differences between ROC GAAP and US
GAAP as they relate to us.
|
Year
Ended December 31,
|
||||||||||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||||||||||
Region
|
Net
Sales
|
%
|
Net
Sales
|
%
|
Net
Sales
|
%
|
||||||||||||||||||
(in
NT$ millions, except percentages)
|
||||||||||||||||||||||||
Taiwan
|
174,273 | 36.3 | % | 184,895 | 43.6 | % | 153,643.4 | 42.8 | % | |||||||||||||||
Japan
|
36,698 | 7.6 | % | 11,835 | 2.8 | % | 7,882.2 | 2.2 | % | |||||||||||||||
Asia(1)
|
192,878 | 40.2 | % | 160,744 | 37.9 | % | 157,605.0 | 43.9 | % | |||||||||||||||
Europe
|
43,372 | 9.0 | % | 36,450 | 8.6 | % | 19,221.8 | 5.3 | % | |||||||||||||||
United
States
|
26,468 | 5.5 | % | 26,071 | 6.2 | % | 18,702.2 | 5.2 | % | |||||||||||||||
Others
|
6,495 | 1.4 | % | 3,933 | 0.9 | % | 2,276.7 | 0.6 | % | |||||||||||||||
Total
|
480,184 | 100.0 | % | 423,928 | 100.0 | % | 359,331.3 | 100.0 | % |
(1)
|
Excludes
Japan and Taiwan.
|
Glass
Substrates
|
Liquid
Crystals
|
Color
Filters
|
Polarizer
|
Backlight
Units
|
Driver-integrated
Circuits
|
|||||
Asahi
Glass
|
Chisso
Corporation
|
Cando
Corporation(1)
|
Daxon
Technology(3)
|
Coretronic
|
Nippon
Electric Company
|
|||||
Corning
Taiwan
|
DIC
Corporation
|
Dai
Nippon Printing
|
Nitto
Denko
|
Darwin
Precisions(4)
|
Novatek
|
|||||
Nippon
Electric Glass
|
Merck
|
Mitsui
& Co. (Taiwan), Ltd.
|
Sumika
|
Forhouse(5)
|
Orise
|
|||||
Toppan
CFI(2)
|
Radiant
Opto-Electronics
|
Raydium
Semiconductor(7)
|
||||||||
Taiwan
Nano Electro-Optical(6)
|
(1)
|
Cando
Corporation has been our investee since November 2003. See “Item 7.B.
Related Party Transactions.”
|
(2)
|
Toppan
CFI (Taiwan) Co. Ltd (“Toppan CFI”) has been our consolidated subsidiary
since March 2007.
|
(3)
|
Daxon
Technology is a subsidiary of one of our major shareholders, Qisda. See
“Item 7.B. Related Party
Transactions.”
|
(4)
|
Darwin
Precisions (Xiamen) Corp. and Darwin Precisions (Suzhou) Corp. are our
consolidated subsidiaries and also our backlight units
suppliers.
|
(5)
|
Forhouse
is our investee.
|
(6)
|
Taiwan
Nano Electro-Optical is our
investee.
|
(7)
|
We
reduced our indirect ownership in Raydium Semiconductor Corporation to
less than 50% in January 2006. As a result, Raydium Semiconductor is no
longer a consolidated subsidiary.
|
·
|
LG
Display Co., Ltd. (“LG Display”) and Samsung in
Korea;
|
·
|
Chimei
Innolux Corp., Chunghwa Picture Tubes, Ltd., Hannstar Display Corporation,
Wintek Corporation, Giantplus Technology Co., Ltd. and Prime View
International Co., Ltd. in Taiwan;
|
·
|
Sharp,
Toshiba, IPS Alpha Technology, Ltd. and Hitachi in Japan;
and
|
·
|
Shanghai
SVA NEC Liquid Crystal Display Co., Ltd., BOE Technology Group Co., Ltd.,
InfoVision Optoelectronics (Kunshan) Co., Ltd., Century Corporation Co.,
Ltd. China, Shanghai Tianma Micro Electronics Co., Ltd., and Shenzhen
Tianma Micro Electronics Co., Ltd. in the
PRC.
|
·
|
price,
based in large part on the ability to ramp-up lower cost, “next
generation” production facilities before
competitors;
|
·
|
product
features and quality;
|
·
|
customer
service, including product design
support;
|
·
|
ability
to keep production costs low by maintaining high yield and operating at
full capacity;
|
·
|
ability
to provide sufficient quantity of products to meet customer
demand;
|
·
|
quality
of the research and development
team;
|
·
|
time-to-market;
|
·
|
superior
logistics; and
|
·
|
access
to capital.
|
Subsidiary
|
Main Activities
|
Jurisdiction of
Incorporation
|
Total Paid-in
Capital
|
Percentage of
Our Ownership
Interest
|
||||
(in
millions)
|
||||||||
AU
Optronics (L) Corp.
|
Holding
and trading company
|
Malaysia
|
US$907.8
|
100%
|
||||
AU
Optronics Corporation America
|
Sales
support in the United States
|
United States
|
US$1.0
|
100%(1)
|
||||
AU
Optronics Corporation Japan
|
Sales
support in Japan
|
Japan
|
JPY40.0
|
100%(1)
|
||||
AU
Optronics Europe B.V.
|
Sales
support in Europe
|
Netherlands
|
EUR0.05
|
100%(1)
|
||||
AU
Optronics Korea Ltd.
|
Sales
support in South Korea
|
South
Korea
|
KRW173.1
|
100%(1)
|
||||
AU
Optronics Singapore Pte. Ltd.
|
Sales
support in South Asia
|
Singapore
|
SGD1.8
|
100%(1)
|
||||
AU
Optronics (Shanghai) Corp.
|
Sales
support in the PRC
|
PRC
|
RMB21.8
|
100%(1)
|
||||
AU
Optronics (Xiamen) Corp.
|
Assembly
of TFT-LCD modules in the PRC
|
PRC
|
RMB1,361.8
|
100%(1)
|
||||
AU
Optronics (Suzhou) Corp.
|
Assembly
of TFT-LCD modules in the PRC
|
PRC
|
RMB1,967.3
|
100%(1)
|
||||
AU
Optronics (Czech) s.r.o.
|
Manufacturing
and repair center in Czech Republic and assembly of TFT-LCD modules and TV
set
|
Czech
Republic
|
CZK300.0
|
100%(1)
|
||||
AU
Optronics Manufacturing (Shanghai) Corp. (previously named Tech Well
(Shanghai) Display Co., Ltd.)
|
Assembly
of TFT-LCD modules in the PRC
|
PRC
|
RMB867.0
|
100%(1)
|
||||
AU
Optronics (Slovakia) s.r.o.
|
Assembly
of Optoelectronics LCD products in Slovakia and manufacturing and sale of
related parts
|
Slovakia
|
EUR15.0
|
100%(1)
|
||||
AUO
Energy (Suzhou) Corp.
|
Design,
manufacturing and sale of solar modules
|
PRC
|
RMB8.2
|
100%
(11)
|
||||
BriView
(Xiamen) Corp. (previously named BriView Electronics
Corp.)
|
Manufacturing
and sale of liquid crystal products and related parts
|
PRC
|
RMB136.7
|
100%(1)
|
||||
Darwin
Precisions (L) Corp.
|
Holding
and trading company
|
Malaysia
|
US$85.0
|
100%(2)
|
||||
Darwin
Precisions (Hong Kong) Limited
|
Holding
company
|
Hong
Kong
|
HK$326.7
|
100%(3)
|
||||
Darwin
Precisions (Suzhou) Corp.
|
Manufacturing
and assembly of backlight modules and related components in the
PRC
|
PRC
|
RMB120.7
|
100%(4)
|
Subsidiary
|
Main Activities
|
Jurisdiction of
Incorporation
|
Total Paid-in
Capital
|
Percentage of
Our Ownership
Interest
|
||||
(in
millions)
|
||||||||
Darwin
Precisions (Xiamen) Corp.
|
Manufacturing
and assembly of backlight modules and related components in the
PRC
|
PRC
|
RMB506.0
|
100%(4)
|
||||
Darwin
Precisions (ChengDu) Corporation
|
Manufacturing
and assembly of backlight modules and related components in the
PRC
|
PRC
|
RMB17.1
|
100%(4)
|
||||
BVCH
Optronics (Sichuan) Corp.
|
Assembly
of TFT-LCD modules in the PRC
|
PRC
|
RMB100.0
|
51.0%(5)
|
||||
BriView
(Kunshan) Co., Ltd.
|
Manufacturing
and sale of liquid crystal products and related parts
|
PRC
|
RMB34.1
|
100%(5)
|
||||
BriView
(Hefei) Co., Ltd.
|
Manufacturing
and sale of liquid crystal products and related parts
|
PRC
|
RMB95.6
|
100%(5)
|
||||
Konly
Venture Corp.
|
Venture
capital investment
|
ROC
|
NT$2,500.0
|
100%
|
||||
Ronly
Venture Corp.
(6)
|
Venture
capital investment
|
ROC
|
NT$2,800.0
|
100%
|
||||
Lextar
Electronics Corp.
|
Manufacturing
and sale of LED products
|
ROC
|
NT$3,704.9
|
46.29%(7)
|
||||
Darwin
Precisions Corp.
|
Manufacturing
and sale of backlight modules
|
ROC
|
NT$4,120.0
|
61.35%(8)
|
||||
Toppan
CFI (Taiwan) Co., Ltd.
|
Manufacturing
and sale of color filters
|
ROC
|
NT$15,363.0
|
49%(9)
|
||||
BriView
Technology Corp.
|
Manufacturing
and sale of liquid crystal products and related parts
|
ROC
|
NT$100.0
|
60%
|
||||
BriView
(L) Corp.
|
Holding
and trading company
|
Malaysia
|
US$26.5
|
100%
(1)
|
||||
AUO
Energy Taiwan Corp.
|
Technical
Services
|
ROC
|
NT$100.0
|
100%
|
||||
M.
Setek Co., Ltd.
|
Manufacturing
of single crystal silicon wafers and ignots and sale of solar
modules
|
Japan
|
JPY32,762.1
|
90%(1)
|
||||
Ichijo
Seisakusyo Co., Ltd.
|
Manufacturing
semiconductor products
|
Japan
|
JPY13.0
|
38.46%(10)
|
||||
Tung-Tai
Venture Limited
|
Holding
company
|
ROC
|
NT$30.0
|
100%(12)
|
||||
Lighthouse-LED
(Singapore) Pte. Ltd.
|
Holding
company
|
Singapore
|
US$9.0
|
100%(12)
|
||||
Lextar
Electronics (Suzhou) Corp.
|
Manufacturing
and sale of LED products
|
PRC
|
RMB61.4
|
100%(13)
|
||||
Darshin
Microelectronics Inc.
|
IC
design and sales support
|
ROC
|
NT$30.0
|
66.67%(14)
|
||||
(1)
|
Indirectly,
through our 100% ownership of AU Optronics (L)
Corp.
|
(2)
|
24.12%
held indirectly through AU Optronics (L) Corp. and 75.88% held directly by
Darwin Precisions Corp.
|
(3)
|
Indirectly,
through our 100% ownership of Darwin Precisions (L)
Corp.
|
(4)
|
Indirectly,
through our 100% ownership of Darwin Precisions (Hong Kong)
Limited.
|
(5)
|
Indirectly,
through our 100% ownership of BriView (L)
Corp.
|
(6)
|
Formerly
Quanta Display Technology Investment
Ltd.
|
(7)
|
24.99%
held directly by us and 4.76% and 16.54% held indirectly through Konly
Venture Corp. and Ronly Venture Corp.,
respectively.
|
(8)
|
38.11%
held directly by us, 20.56% held indirectly by Konly Venture
Corp. and 2.68% held indirectly by Ronly Venture Corp.,
respectively.
|
(9)
|
We
consolidated Toppan CFI (Taiwan) Co., Ltd. in accordance with FIN 46R
starting from fiscal year 2007. See note 28 to our consolidated
financial statements.
|
(10)
|
Indirectly,
through our 90% ownership of M. Setek Co.,
Ltd.
|
(11)
|
Indirectly,
through our 100% ownership of AU Optronics (Singapore) Pte.
Ltd.
|
(12)
|
100%
held directly by Lextar Electronics Corp., which is 46.29% held directly
and indirectly through us, Konly Venture Corp. and Ronly Venture
Corp.
|
(13)
|
100%
held directly by Lighthouse-LED (Singapore) Pte. Ltd., which is 100% held
directly by Lextar Electronics
Corp.
|
(14)
|
Indirectly,
though our 100% ownership of Konly Venture
Corp.
|
Location
|
Building
Size
|
Input
Substrate Size / Installed Capacity
|
Commencement
of Commercial Production
|
Primary
Use
|
Owned
or Leased
|
|||||
(in
square
meters)
|
(in
millimeters)/ (substrates processed per month) ***
|
|||||||||
No.
5, Li-Hsin Rd.
6,
Hsinchu
Science
Park,
Hsinchu
30078,
Taiwan,
ROC
|
69,647
|
610x720/40,000(1)
|
December
1999
|
Manufacturing
of TFT-LCD panels
|
·
Building
is owned
·
Land
is leased (expires in December 2020)
|
|||||
No.
1, Li-Hsin Rd.
2,
Hsinchu
Science
Park,
Hsinchu
30078,
Taiwan,
ROC
|
162,895
|
610x720/LTPS
20,000(1)
|
November
2000
|
Manufacturing
of TFT-LCD panels; business operations; research and development; sales
and marketing
|
·
Building
is owned
·
Land
is leased (expires in December 2020)
|
|||||
No.
23, Li-Hsin Rd.
Hsinchu
Science
Park,
Hsinchu
30078,
Taiwan,
ROC
|
105,127
|
600x720/60,000(1)
|
July
1999
|
Manufacturing
of TFT-LCD panels
|
·
Building
is owned
·
Land
is leased (expires in January 2017)
|
|||||
No.
189, Hwaya Rd. 2,
Kueishan
Hwaya Science Park, Kueishan 33383,
Taoyuan,
ROC*
|
162,826
|
620x750/a-Si
30,000(1)
1,100x1,300/70,000(2)
|
December
2001
October
2003
|
Manufacturing
of TFT-LCD panels
|
·
Building
is owned
·
Land
is owned
|
|||||
No.
1, Xinhe Rd.
Aspire
Park
Lungtan
32543,
Taoyuan
Taiwan,
ROC
|
535,528
|
680x880/60,000(3)
1,100x1,250/50,000(2)
1,100x1,300/70,000(2)
|
February
2001
March
2003
February
2004
|
Manufacturing
of TFT-LCD panels; module and component assembly; manufacturing of color
filters
|
·
Building
is owned
· Land is
owned
|
Location
|
Building
Size
|
Input
Substrate Size / Installed Capacity
|
Commencement
of Commercial Production
|
Primary
Use
|
Owned
or Leased
|
|||||
(in
square
meters)
|
(in
millimeters)/ (substrates processed per month) ***
|
|||||||||
No.
228, Lungke St., Lungke Science Park,
Lungtan,
32542,
Taoyuan,
Taiwan,
ROC*
|
867,955
|
1,500x1,850/120,000(4)
|
August
2005
|
Manufacturing
of TFT-LCD panels; manufacturing of color filters
|
·
Building
is owned
·
Land
is leased (expires in December 2027)
|
|||||
No.
1 JhongKe Rd.
Central
Taiwan
Science
Park
Taichung
40763,
Taiwan,
ROC
|
1,430,750
|
1,500x1,850/120,000(4)
1,100x1,300/120,000(2)
1,950x2,250/75,000(5)
1,950x2,250/25,000(5)
2,200x2,500/40,000(6)
|
March
2005
August
2005
June
2006
April
2009
February
2009
|
Manufacturing
of TFT-LCD panels; module and component assembly; manufacturing of color
filters
|
·
Building
is owned
·
Land
is leased (expires in December 2022)
|
|||||
No.
398, Suhong
Zhong
Road
Suzhou
Industrial
Park,
Suzhou,
the PRC
|
413,035
|
N/A
|
July
2002
|
Module
and component assembly
|
·
Building
is owned
·
Land
is leased (expires in 2051)
|
|||||
No.
3, Lane 58, San-Zhuang Rd., Songjiang Export Processing Zone, Shanghai,
the PRC*
|
83,508
|
N/A
|
October
2004
|
Module
and component assembly
|
·
Building
is owned
·
Land
is leased (expires in 2052)
|
|||||
No.
1689, North of XiangAn Rd., XiangAn Branch, Torch Hi-tech Industrial
Development Zone,
Xiamen,
the PRC
|
289,662
|
N/A
|
September
2007
|
Module
and component assembly
|
·
Building
is owned
·
Land
is leased (expires in 2056)
|
|||||
No.
35 Mianxing East Road, Mianyang, Sichuan Province, the PRC
|
24,195
|
N/A
|
September
2009
|
Module
and component assembly
|
·
Building
is leased (expires in 2014)
|
|||||
Turanka
856/98b, Slatina,
627
00, Brno,
Czech
Republic
|
26,710
|
N/A
|
October
2008
|
Module
and TV set assembly; TFT-LCD related products repair
service
|
·
Building
is leased (expires in December 2013)
· Land
is leased (expires in December
2013)
|
Location
|
Building
Size
|
Input
Substrate Size / Installed Capacity
|
Commencement
of Commercial Production
|
Primary
Use
|
Owned
or Leased
|
|||||
(in
square
meters)
|
(in
millimeters)/ (substrates processed per month) ***
|
|||||||||
Sendai
83,Shimomiyamae,
Asouhara, Yamamoto-cho, Watari-gun, Miyagi-ken, Japan**
|
52,759
|
Silicon
wafer
2,000
kpcs per month
|
October
1984
|
Production
of silicon wafer
|
·
Building
is owned
·
Land
is owned
|
|||||
Kochi
Site 1: 378, Myoken-cho, Susaki-shi, Kochi-ken, Japan**
Kochi
Site 2: 1117-1, Otani, Susaki-shi, Kochi-ken, Japan**
|
167,007
(including Kochi Site 1 and Kochi Site 2)
|
Ingot
160
ton per month
|
Kochi
Site 1: April 2004
Kochi
Site 2: January 2009
|
Production
of ingot
|
·
Building
is owned
·
Land
is owned
|
|||||
Soma
2-2-21,
Koyo, Soma-shi, Fukushima-ken, Japan**
|
1,113,359
|
Polysilicon
227
ton per month
|
October
2007
|
Production
of
polysilicon
|
·
Building
is owned
·
Land
is owned
|
(1)
|
3.5-generation
fab.
|
(2)
|
Fifth-generation
fab.
|
(3)
|
Fourth-generation
fab.
|
(4)
|
Sixth-generation
fab.
|
(5)
|
7.5-generation
fab.
|
(6)
|
8.5-generation
fab.
|
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Balance
at beginning of year
|
833,524 | 1,255,033 | 1,145,135 | 35,842 | ||||||||||||
Provision
charged to revenue
|
4,165,379 | 2,793,933 | 623,728 | 19,522 | ||||||||||||
Utilized
|
(3,743,870 | ) | (2,903,831 | ) | (1,650,534 | ) | (51,660 | ) | ||||||||
Balance
at end of year
|
1,255,033 | 1,145,135 | 118,329 | 3,704 |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Balance
at beginning of year
|
474,025 | 317,183 | 99,333 | 3,109 | ||||||||||||
Provision
charged to expense (reversed to income)
|
(71,435 | ) | (187,011 | ) | (3,335 | ) | (104 | ) | ||||||||
Write-off
|
(85,407 | ) | (30,839 | ) | – | – | ||||||||||
Balance
at end of year
|
317,183 | 99,333 | 95,998 | 3,005 |
Year
Ended December 31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
%
|
%
|
%
|
||||||||||
Net
sales
|
100.0 | 100.0 | 100.0 | |||||||||
Cost
of goods sold
|
82.1 | 86.9 | 98.0 | |||||||||
Gross
profit
|
17.9 | 13.1 | 2.0 | |||||||||
Operating
expenses
|
4.7 | 5.3 | 6.2 | |||||||||
Selling
|
2.4 | 2.1 | 2.2 | |||||||||
General
and administrative
|
1.1 | 1.9 | 2.3 | |||||||||
Research
and development
|
1.2 | 1.3 | 1.7 | |||||||||
Operating
income (loss)
|
13.2 | 7.8 | (4.2 | ) | ||||||||
Net
non-operating expenses and losses
|
(1.0 | ) | (1.6 | ) | (3.4 | ) | ||||||
Earnings
(loss) before income tax
|
12.2 | 6.2 | (7.6 | ) | ||||||||
Income
tax expenses
|
0.4 | 1.1 | – | |||||||||
Net
income (loss)
|
11.8 | 5.1 | (7.6 | ) |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
millions)
|
||||||||||||||||
Equipment
purchases
|
49,319.3 | 101,326.1 | 49,018.0 | 1,534.2 | ||||||||||||
Land
and building purchases
|
584.2 | 1,813.8 | 13,412.3 | 419.8 |
Payments
due by Period
|
||||||||||||||||||||
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||
Contractual
Obligations
|
||||||||||||||||||||
Long-term
debt obligations(1)
|
193,877.0 | 51,276.3 | 91,136.0 | 44,590.8 | 6,873.9 | |||||||||||||||
Operating
lease obligations(2)
|
5,530.9 | 849.7 | 1,525.0 | 1,091.9 | 2,064.3 |
Payments
due by Period
|
||||||||||||||||||||
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||
Purchase
obligations(3)
|
79,205.5 | 79,205.5 | − | − | − | |||||||||||||||
Total
|
278,613.4 | 131,331.5 | 92,661.0 | 45,682.7 | 8,938.2 |
Year
Ended and as of December 31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
millions)
|
||||||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics Corp. in
accordance with
|
||||||||||||||||
ROC
GAAP
|
56,417.8 | 21,267.4 | (26,769.3 | ) | (837.8 | ) | ||||||||||
US
GAAP
|
45,355.5 | 13,089.7 | (28,670.3 | ) | (897.3 | ) | ||||||||||
Equity
attributable to stockholders of AU Optronics Corp. in accordance
with
|
||||||||||||||||
ROC
GAAP
|
291,779.0 | 290,059.0 | 262,087.1 | 8,203.0 | ||||||||||||
US
GAAP
|
291,865.8 | 293,391.9 | 266,269.0 | 8,333.9 |
Name
|
Age
|
Position
|
Term
Expires
|
Years
with
Us
|
Principal
Business Activities
Performed
Outside Our Company
|
|||||
Kuen-Yao
(K.Y.) Lee
|
58
|
Chairman
|
2010
|
14
|
·
Chairman
of Qisda and Chairman of BenQ Corporation
·
Director
of Darfon Electronics Corp.
·
Director
of Daxon Technology Inc.
·
Director
of Lextar Electronics Corp.
|
|||||
Hsuan
Bin (H.B.) Chen
|
59
|
Vice-Chairman
|
2010
|
13
|
·
Chairman
and Chief Executive Officer of Wellypower Optronics
Corporation
·
Chairman
of Lextar Electronics Corp.
|
|||||
Hui
Hsiung
|
57
|
Director
|
2010
|
14
|
·
President
and Chief Executive Officer of Qisda
·
Director
of Qisda
|
|||||
Ronald
Jen-Chuan Chwang(1)
|
62
|
Director
|
2010
|
2
|
·
Chairman
and President of iD Ventures America
|
|||||
Ko-Yung
(Eric) Yu(2)
|
54
|
Director
|
2010
|
14
|
·
Senior
Vice President of Qisda
·
Chairman
of Daxon Technology Inc.
|
|||||
Ching-Shih
Han(3)
|
46
|
Director
|
2010
|
3
|
·
Director
of Wellypower Optronics Corporation
·
Director
of Cando Corporation
·
Director
of Taiwan Nano Electro-Optical Technology Co., Ltd.
|
|||||
Vivien
Huey-Juan Hsieh
|
57
|
Director
|
2010
|
6
|
·
Independent
Supervisor of Chief Telecom Inc.
·
Independent
Director of Gold East Paper (Jiangsu) Co., Ltd.
|
|||||
Chieh-Chien
Chao
|
66
|
Director
|
2010
|
6
|
·
Adjunct
Professor at National Taiwan University
|
|||||
Tze-Kaing
Yang
|
56
|
Director
|
2010
|
3
|
·
Supervisor
of ASUSTeK Computer Inc.
·
Independent
director of ASRock Inc.
·
Director
of Ritek Corporation
|
(1)
|
Representing
Qisda.
|
(2)
|
Representing
Qisda.
|
(3)
|
Representing
CDIB.
|
Name
|
Age
|
Position
|
Years
with Us
|
|||
Lai-Juh
(L.J.) Chen
|
47
|
Chief
Executive Officer and President
|
11
|
|||
Andy
Yang
|
42
|
Chief
Financial Officer
|
8
|
|||
Paul
Peng
|
52
|
Executive
Vice President of Global Business Unit
|
14
|
|||
F.C.
Hsiang
|
51
|
Executive
Vice President of Global Operation Unit
|
11
|
As
of December 31,
|
||||||||||||
Function
|
2007
|
2008
|
2009
|
|||||||||
Production
|
38,455 | 31,381 | 39,312 | |||||||||
Technical(1)
|
8,285 | 9,279 | 9,218 | |||||||||
Sales
and marketing
|
658 | 582 | 657 | |||||||||
Management
and administration
|
1,712 | 2,025 | 2,191 | |||||||||
Total
|
49,110 | 43,267 | 51,378 |
(1)
|
Includes
research and development personnel.
|
As
of December 31,
|
||||||||||||
Location
|
2007
|
2008
|
2009
|
|||||||||
Taiwan(1)
|
21,190 | 21,030 | 20,471 | |||||||||
PRC(2)
|
27,833 | 22,077 | 29,994 | |||||||||
Others(3)
|
87 | 160 | 913 | |||||||||
Total
|
49,110 | 43,267 | 51,378 |
(1)
|
Employed
by AU Optronics Corp., Toppan CFI, Lextar Electronics Corp., and Darwin
Precision Corp.
|
(2)
|
Employed
by AU Optronics (Suzhou) Corp., AU Optronics (Xiamen) Corp., AU Optronics
Manufacturing (Shanghai) Corp., Darwin Precisions (Suzhou) Corp., and
Darwin Precisions (Xiamen) Corp.
|
(3)
|
We
added 660 employees as a result of our acquisition of M.
Setek.
|
Name
|
Number
of Shares Owned
|
Percentage
of Shares Owned
|
||||||
Kuen-Yao
(K.Y.) Lee, Chairman
|
10,532,153 | * | ||||||
Hsuan
Bin (H.B.) Chen, Vice-Chairman
|
6,197,633 | * | ||||||
Hui
Hsiung, Director
|
2,790,877 | * | ||||||
Ronald
Jen-Chuan Chwang, Director
|
663,598,620 | (1) | 7.52 | % | ||||
Ko-Yung
(Eric) Yu, Director
|
663,598,620 | (1) | 7.52 | % | ||||
Lai-Juh
(L.J.) Chen, Chief Executive Officer and President
|
2,959,118 | * |
Ching-Shih
Han, Director
|
44,929,277 | (2) | * | |||||
Vivien
Huey-Juan Hsieh, Director
|
— | — | ||||||
Chieh-Chien
Chao, Director
|
— | — | ||||||
Tze-Kaing
Yang, Director
|
— | — | ||||||
Andy
Yang, Chief Financial Officer
|
527,259 | * | ||||||
Paul
Peng, Executive Vice President of Global Business
|
2,533,660 | * | ||||||
F.C.
Hsiang, Executive Vice President of Global Operation Unit
|
4,484,330 | * |
*
|
The
number of common shares held is less than 1% of our total outstanding
common shares.
|
(1)
|
Represents
shares held by Qisda.
|
(2)
|
Represents
shares held by CDIB.
|
Name
of Beneficial Owner
|
Number
of Shares
Beneficially
Owned
|
Percentage
of Shares
Beneficially
Owned
|
Percentage
of Shares
Beneficially
Owned
(Fully
Diluted)
|
|||||||||
Qisda
157,
Shan-Ying Road,
Gueishan,
Taoyuan 333,
Taiwan,
ROC
|
667,289,544 | 7.56% | 7.56% | |||||||||
Quanta
Computer Inc.
211,
Wen Hwa 2nd
Road,
Kuei
Shan, Taoyuan 33377,
Taiwan,
ROC
|
443,930,307 | 5.03% | 5.03% | |||||||||
All
directors as a group(1)
|
729,727,559 | 8.27% | 8.27% |
(1)
|
Calculated
as the sum of: (a) with respect to directors who are serving in their
personal capacity, the number of shares held by such director and (b) with
respect to directors who are serving in the capacity as legal
representatives, the number of shares owned by such institutional or
corporate shareholder for which such director is a legal
representative.
|
·
|
pre-approval
by a majority vote of disinterested directors of each sale to, or purchase
of raw materials and components from, a related party that is in the
ordinary course of our business, which transaction involves a transaction
amount in excess of 5% of our net sales or raw materials and component
purchases, as the case may be, for the previous three months on an
unconsolidated basis, provided that any series of similar transactions
with the same related party that collectively exceeds 40% of our net sales
or raw materials and component purchases, as the case may be, for the
previous three months on an unconsolidated basis shall also require
pre-approval;
|
·
|
periodic
review by our board of directors of other related party transactions in
the ordinary course of business;
|
·
|
pre-approval
by a majority vote of disinterested directors of related party
transactions not in the ordinary course of business and not otherwise
specified in our related party transaction policy;
and
|
·
|
recusal
of any interested director from consideration of matters involving the
company he or she represents or with respect to which the director might
have a conflict of interest.
|
·
|
payment
of all income taxes; and
|
·
|
deduction
of any past losses.
|
·
|
no
less than 5% of the earnings to be distributed is distributable as a bonus
for employees;
|
·
|
no
more than 1% of the earnings to be distributed is distributable as
remuneration to directors; and
|
·
|
all
or a portion of the balance is distributable as dividend and bonus to our
shareholders.
|
Taiwan
Stock Exchange
|
New
York Stock Exchange(1)
|
|||||||||||||||||||||||
Closing
Price per
Share
|
Average
Daily
Trading
Volume
|
Closing
Price per
ADS
|
Average
Daily
Trading
Volume
|
|||||||||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||||||||||
(NT$)
|
(NT$)
|
(in
thousands of shares)
|
(US$)
|
(US$)
|
(in
thousand of ADSs)
|
|||||||||||||||||||
2005
|
55.70 | 41.50 | 58,771.47 | 18.14 | 12.73 | 1,848.57 | ||||||||||||||||||
2006
|
55.20 | 40.00 | 47,043.79 | 17.56 | 12.16 | 2,162.58 | ||||||||||||||||||
2007
|
70.40 | 43.30 | 48,530.06 | 22.41 | 13.06 | 1,881.55 | ||||||||||||||||||
2008
|
62.70 | 18.30 | 70,171.86 | 20.66 | 5.02 | 3,343.94 | ||||||||||||||||||
First
Quarter
|
61.30 | 51.10 | 81,208.32 | 19.74 | 15.99 | 3,368.69 | ||||||||||||||||||
Second
Quarter
|
62.70 | 47.10 | 72,280.56 | 20.66 | 15.55 | 3,371.35 | ||||||||||||||||||
Third
Quarter
|
48.20 | 31.05 | 69,864.02 | 15.74 | 10.20 | 3,247.35 | ||||||||||||||||||
Fourth
Quarter
|
36.00 | 18.30 | 58,753.02 | 11.38 | 5.02 | 3,389.52 | ||||||||||||||||||
2009
|
38.90 | 23.05 | 62,016.60 | 12.12 | 6.66 | 3,999.55 | ||||||||||||||||||
First
Quarter
|
29.90 | 23.05 | 66,737.51 | 9.01 | 6.66 | 3,524.08 | ||||||||||||||||||
Second
Quarter
|
38.20 | 28.50 | 65,734.77 | 12.00 | 8.66 | 3,868.17 | ||||||||||||||||||
Third
Quarter
|
38.90 | 30.85 | 55,275.68 | 12.12 | 9.48 | 4,442.43 | ||||||||||||||||||
Fourth
Quarter
|
38.80 | 28.90 | 61,028.65 | 11.99 | 8.79 | 4,139.18 | ||||||||||||||||||
November
|
33.60 | 28.90 | 65,784.07 | 10.45 | 8.79 | 3,580.93 | ||||||||||||||||||
December
|
38.80 | 34.05 | 60,039.59 | 11.99 | 10.68 | 2,994.22 | ||||||||||||||||||
2010
(through May 7)
|
42.00 | 32.80 | 56,803.10 | 13.25 | 10.24 | 3,281.52 | ||||||||||||||||||
First
Quarter
|
42.00 | 32.80 | 59,323.72 | 13.25 | 10.24 | 3,141.07 | ||||||||||||||||||
January
|
42.00 | 35.85 | 69,810.47 | 13.25 | 10.94 | 3,993.38 | ||||||||||||||||||
February
|
36.30 | 32.80 | 58,660.48 | 11.54 | 10.24 | 3,046.59 | ||||||||||||||||||
March
|
37.00 | 33.40 | 50,608.51 | 11.75 | 10.41 | 2,515.04 | ||||||||||||||||||
April
|
37.75 | 34.55 | 46,943.55 | 12.51 | 11.08 | 3,493.33 | ||||||||||||||||||
May
(through May 7)
|
36.90 | 33.50 | 69,478.23 | 11.89 | 10.40 | 4,105.42 |
(1)
|
Each
ADS represents the right to receive 10 common
shares.
|
·
|
any
amendment to our articles of
incorporation;
|
·
|
our
dissolution or amalgamation;
|
·
|
a
merger or spin-off;
|
·
|
transfers
of the whole or a substantial part of our business or
properties;
|
·
|
the
acquisition of the entire business of another company which would have a
significant impact on our
operations;
|
·
|
the
distribution of any stock dividend;
or
|
·
|
the
removal of directors.
|
·
|
payment
of all income taxes; and
|
·
|
deduction
of any past losses.
|
·
|
no
less than 5% of the earnings to be distributed is distributable as a bonus
for employees;
|
·
|
no
more than 1% of the earnings to be distributed is distributable as
remuneration to directors; and
|
·
|
all
or a portion of the balance is distributable as a dividend to our
shareholders.
|
·
|
to
transfer shares to our employees;
|
·
|
to
facilitate conversion arising from bonds with warrants, preferred shares
with warrants, convertible bonds, convertible preferred shares or
certificates of warrants (collectively, the “Convertible Securities”)
issued by our company into shares;
and
|
·
|
if
necessary, to maintain our credit and our shareholders’ equity; provided
that the shares so purchased shall be cancelled
thereafter.
|
·
|
Within
30 days from the date on which a shareholders’ resolution is adopted, a
shareholder may file a lawsuit to annul a shareholders’ resolution if the
procedure for convening a shareholders’ meeting or the method of
resolution violates any law or regulation or our articles of
incorporation.
|
·
|
If
the substance of a resolution adopted at a shareholders’ meeting
contradicts any applicable law or regulation or our articles of
incorporation, a shareholder may bring a suit to determine the validity of
such resolution.
|
·
|
Shareholders
who have continuously held 3% or more of the total number of issued and
outstanding shares for a period of one year or longer may request in
writing that an audit committee member institute an action against a
director on our behalf. In case the audit committee member fails to
institute an action within 30 days after receiving such request, the
shareholders may institute an action on our behalf. In the event that
shareholders institute an action, a court may, upon motion of the
defendant, order such shareholders to furnish appropriate
security.
|
·
|
In
the event that any director, officer or shareholder who holds more than
10% of our issued and outstanding shares and their respective spouse and
minor children and/or nominees sells shares within six months after the
acquisition of such shares, or repurchases the shares within six months
after the sale, we may make a claim for recovery of any profits realized
from the sale and purchase. If our board of directors or our audit
committee fail to make a claim for recovery, any shareholder may request
that our board of directors or our audit committee exercise the right of
claim within 30 days. In the event our directors or audit committee fail
to exercise such right during such 30-day period, such requesting
shareholder will have the right to make a claim for such recovery on our
behalf. Our directors and audit committee will be jointly and severally
liable for damages suffered by us as a result of their failure to exercise
the right of claim.
|
·
|
you
are an individual and you are not physically present in the ROC for 183
days or more during any calendar year;
or
|
·
|
you
are an entity and you are organized under the laws of a jurisdiction other
than the ROC and have no fixed place of business or other permanent
establishment or business agent in the
ROC.
|
·
|
20%
of the gains realized by non-ROC entities;
and
|
·
|
20%
of the gains realized by non-ROC
individuals.
|
·
|
a
citizen or resident of the United
States;
|
·
|
a
corporation, or other entity taxable as a corporation, created or
organized in or under the laws of the United States or any political
subdivision thereof; or
|
·
|
an
estate or trust the income of which is subject to U.S. federal income
taxation regardless of its source.
|
·
|
dealers
and traders in securities who use a mark-to-market method of
accounting;
|
·
|
certain
financial institutions;
|
·
|
tax-exempt
entities, including “individual retirement
accounts”;
|
·
|
entities
classified as partnerships for U.S. federal income tax
purposes;
|
·
|
persons
holding ADSs or shares as part of a hedge, straddle, wash sale, conversion
transaction or integrated transaction or persons entering into a
constructive sale with respect to the ADSs or
shares;
|
·
|
persons
that own or are deemed to own 10% or more of our voting
stock;
|
·
|
persons
whose functional currency for U.S. federal income tax purposes is not the
U.S. dollar;
|
·
|
persons
who acquired ADSs or shares pursuant to the exercise of any employee stock
option or otherwise as compensation;
or
|
·
|
persons
holding shares in connection with a trade or business conducted outside of
the United States.
|
Expected
Maturity Date
|
||||||||||||||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
Fair
Value at December 31, 2009
|
|||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Certificates
of Deposit:
|
||||||||||||||||||||||||||||||||
Fixed rate
(US$)
|
705,334 | — | — | — | — | — | 705,334 | 705,334 | ||||||||||||||||||||||||
Average
interest rate
|
0.326 | % | — | — | — | — | — | 0.326 | % | 0.326 | % | |||||||||||||||||||||
Fixed rate
(NT$)
|
11,311,245 | — | — | — | — | — | 11,311,245 | 11,311,245 | ||||||||||||||||||||||||
Average
interest rate
|
0.218 | % | — | — | — | — | — | 0.218 | % | 0.218 | % | |||||||||||||||||||||
Fixed rate
(JPY)
|
34,733,352 | — | — | — | — | — | 34,733,352 | 34,733,352 | ||||||||||||||||||||||||
Average
interest rate
|
0.228 | % | — | — | — | — | — | 0.228 | % | 0.228 | % | |||||||||||||||||||||
Fixed rate
(CNY)
|
1,454,120 | — | — | — | — | — | 1,454,120 | 1,454,120 | ||||||||||||||||||||||||
Average
interest rate
|
1.360 | % | — | — | — | — | — | 1.360 | % | 1.360 | % |
Expected
Maturity Date
|
||||||||||||||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
Total
|
Fair
Value at December 31, 2009
|
|||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||||||
Fixed rate
(CZK)
|
30,000 | — | — | — | — | — | 30,000 | 30,000 | ||||||||||||||||||||||||
Average
interest rate
|
0.800 | % | — | — | — | — | — | 0.800 | % | 0.800 | % | |||||||||||||||||||||
Fixed rate
(EUR)
|
31,300 | — | — | — | — | — | 31,300 | 31,300 | ||||||||||||||||||||||||
Average
interest rate
|
0.388 | % | — | — | — | — | — | 0.388 | % | 0.388 | % | |||||||||||||||||||||
Liabilities
Bonds:
|
||||||||||||||||||||||||||||||||
Secured (NT$)
|
5,500,000 | 6,000,000 | 3,500,000 | — | — | — | 15,000,000 | 15,389,103 | ||||||||||||||||||||||||
Fixed rate
|
2.403 | % | 2.649 | % | 2.900 | % | — | — | — | 2.549 | % | — | ||||||||||||||||||||
Unsecured (NT$)
|
115,508 | 98,268 | 56,892 | — | — | — | 270,668 | 270,668 | ||||||||||||||||||||||||
Fixed rate
|
0.987 | % | 0.980 | % | 0.983 | % | — | — | — | 0.984 | % | — | ||||||||||||||||||||
Secured
Long-term Loans:
|
||||||||||||||||||||||||||||||||
Fixed rate
(NT$)
|
676,363 | 203,432 | 113,784 | 16,550 | — | — | 1,010,129 | 1,013,046 | ||||||||||||||||||||||||
Average
interest rate
|
2.471 | % | 2.197 | % | 2.023 | % | 1.730 | % | — | — | 1.930 | % | — | |||||||||||||||||||
Variable
rate (NT$)
|
37,861,563 | 42,228,264 | 32,204,864 | 25,043,559 | 16,978,872 | 6,634,827 | 160,951,949 | — | ||||||||||||||||||||||||
Average interest
rate(1)
|
2.512 | % | 3.020 | % | 3.274 | % | 3.488 | % | 3.618 | % | 3.603 | % | 2.974 | % | — | |||||||||||||||||
Interest Rate Swaps
(2)
|
||||||||||||||||||||||||||||||||
Variable
to fixed (NT$)
|
1,000,000 | 15,555,556 | 10,333,333 | — | 12,000,000 | — | 38,888,889 | (511,884 | ) | |||||||||||||||||||||||
Pay
rate
|
2.040 | % | 2.046 | % | 2.484 | % | — | 1.385 | % | — | 1.958 | % | — |
(in
thousands)
|
|
Contracts
to sell US$/Buy NT$:
|
|
Aggregate
contract amount
|
US$342,000
|
Average
contractual exchange rate
|
NT$32.25
per US$
|
Contracts
to sell EUR/Buy NT$:
|
|
Aggregate
contract amount
|
EUR177,000
|
Average
contractual exchange rate
|
NT$47.52
per EUR$
|
Contracts
to sell NT$/Buy JPY:
|
|
Aggregate
contract amount
|
NT$3,439,837
|
Average
contractual exchange rate
|
JPY2.83
per NT$
|
Contracts
to sell US$/Buy JPY:
|
|
Aggregate
contract amount
|
US$646,500
|
Average
contractual exchange rate
|
JPY89.48
per US$
|
Contracts
to sell US$/Buy CNY:
|
|
Aggregate
contract amount
|
US$11,000
|
Average
contractual exchange rate
|
CNY6.83
per US$
|
Contracts
to sell CNY/Buy US$:
|
|
Aggregate
contract amount
|
CNY150,200
|
Average
contractual exchange rate
|
US$0.15
per CNY
|
Contracts
to sell JPY/Buy US$:
|
|
Aggregate
contract amount
|
JPY1,243,225
|
Average
contractual exchange rate
|
US$0.01
per JPY
|
Fair
value of all forward contracts(1)
|
NT$(555,037)
|
(1)
|
Fair
value represents the amount of the receivable from or payable to the
counter-parties if the contracts were terminated on the balance sheet
date.
|
Service
|
Fees
|
|
(1)
Issuance of ADSs
|
Up
to US$5 per 100 ADSs (or fraction thereof) issued
|
|
(2)
Cancellation of ADSs
|
Up
to US$5 per 100 ADSs (or fraction thereof) surrendered
|
|
(3) Distribution
of (a) cash dividends or (b) ADSs pursuant to stock dividends (or other
free distribution of stock)
|
No
fee, so long as prohibited by the exchange upon which the ADSs are
listed. If the charging of such fee is not prohibited, the fees
specified in (1) above shall be payable in respect of a distribution of
ADSs pursuant to stock dividends (or other free distribution of stock) and
the fees specified in (4) below shall be payable in respect of
distributions of cash.
|
|
(4) Distribution
of cash proceeds (i.e., upon sale of
rights and other entitlements)
|
Up
to US$2 per 100 ADSs (or fraction thereof) held
|
|
(5) Distribution
of ADSs pursuant to exercise of rights to purchase additional
ADSs
|
Up
to US$5 per 100 ADSs (or fraction thereof)
issued
|
·
|
taxes
(including applicable interest and penalties) and other governmental
charges;
|
·
|
such
registration fees as may from time to time be in effect for the
registration of ADSs on the share register and applicable to transfers of
ADSs to or from the name of the custodian, the depositary or any nominees
upon the making of deposits and withdrawals,
respectively;
|
·
|
such
cable, telex and facsimile transmission and delivery expenses as are
expressly provided in the Deposit Agreement to be at the expense of the
person depositing ADSs or holders and beneficial owners of
ADSs;
|
·
|
the
expenses and charges incurred by the depositary in the conversion of
foreign currency;
|
·
|
such
fees and expenses as are incurred by the depositary in connection with
compliance with exchange control regulations and other regulatory
requirements applicable to ADSs;
and
|
·
|
the
fees and expenses incurred by the depositary in connection with the
delivery of ADSs.
|
Reimbursement
of proxy process expenses:
|
US$ | 94,566.8 | ||
Reimbursement
of ADS holders identification expenses:
|
US$ | 28,457.7 | ||
Contributions
towards our investor relations efforts (i.e., non-deal road
shows/investor conferences and investor relationship agency
fees):
|
US$ | 1,536,610.1 | ||
Total
payment received by us:
|
US$ | 1,659,634.6 |
·
|
pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect our transactions and dispositions of our
assets;
|
·
|
provide
reasonable assurance that our transactions are recorded as necessary to
permit preparation of our financial statements in accordance with ROC GAAP
and US GAAP, and that our receipts and expenditures are being made only in
accordance with authorizations of our management and our directors;
and
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on the financial
statements.
|
Year
ended December 31,
|
||||||||
Services
|
2008
|
2009
|
||||||
NT$
|
NT$
|
|||||||
(in
thousands)
|
||||||||
Audit
Fees(1)
|
50,300 | 58,950 | ||||||
Tax
Fees(2)
|
— | — | ||||||
Other
Fees (3)
|
— | 7,800 | ||||||
Total
|
50,300 | 66,750 |
(1)
|
Audit
Fees. This category includes the audit of our financial
statements, review of quarterly financial statements and services that are
normally provided by the independent auditors in connection with statutory
and regulatory filings or engagements for those fiscal years, and service
related to the audit of the effectiveness of our internal control over
financial reporting required by Section 404 of the Sarbanes-Oxley Act of
2002. This category also includes advice on audit and
accounting matters that arose during, or as a result of, the audit or the
review of quarterly financial statements and statutory audits required by
non-US jurisdictions, including statutory audits required by the Tax
Bureau of the ROC, Customs Bureau of the ROC and Financial Supervisory
Commission of the ROC. This category also includes assistance
with and review of documents filed with the
SEC.
|
(2)
|
Tax
Fees. This category consists of professional services
for tax compliance.
|
(3)
|
Other Fees. This
category consists of professional services for IFRS
adoption.
|
NYSE
Standards for US Listed Companies
under
Listed Company Manual
Section
303A
|
Our
Corporate Governance Practices
|
NYSE Section 303A.01
requires a NYSE-listed company to have a majority of independent
directors on its board of directors.
|
ROC
law does not require a public company to have a majority of independent
directors on its board of directors. ROC law requires
public companies meeting certain criteria to have two independent
directors but no less than one-fifth of the total number of our
directors. We have three independent directors on our
nine-member board of directors.
|
NYSE Section 303A.02
establishes general standards to evaluate directors’ independence (no
director qualifies as independent unless the board of directors
affirmatively determines that the director has no material relationship
with the listed company either directly or as a partner, shareholder or
officer of an organization that has a relationship with the listed
company).
|
Our
standards for determining director independence, which comply with ROC
requirements for directors independence, may differ from the standards
imposed by the NYSE.
The
independence standards of our directors are disclosed in our ROC annual
report.
Our
board of directors have affirmatively determined that our three
independent directors have no material relationship with
us.
|
NYSE Section 303A.03
requires non-management directors to meet at regularly scheduled
executive meetings that are not attended by management.
|
ROC
law does not contain such a requirement, and our non-management directors
do not meet at regularly scheduled executive sessions without
management.
|
NYSE Section 303A.04
requires listed companies to have a nominating/corporate governance
committee comprised entirely of independent directors which committee
shall have a written charter establishing certain minimum responsibilities
as set forth in NYSE Section 303A.04(b)(i) and providing for an annual
evaluation of the committee’s performance.
|
ROC
law does not contain such a requirement, and we do not have a
nominating/corporate governance committee.
|
NYSE Section 303A.05
requires listed companies to have a compensation committee comprised
entirely of independent directors, which committee shall have a written
charter to establish certain minimum responsibilities as set forth in NYSE
Section 303A.05(b)(i) and to provide for an annual evaluation of the
committee’s performance.
|
We
are not required by ROC regulations to have a compensation committee and
we do not have a compensation committee. However, the ROC
Company Law requires that the measures by which director compensation are
determined either be set forth in the company's articles of incorporation
or be approved at a shareholders’ meeting.
|
NYSE Section 303A.06
requires listed companies to have an audit committee that satisfies
the
|
We
have an audit committee that substantially conforms with the requirements
of Rule 10A-3
|
NYSE
Standards for US Listed Companies
under
Listed Company Manual
Section
303A
|
Our
Corporate Governance Practices
|
requirements
of Rule 10A-3 under the Exchange Act.
|
under
the Exchange Act.
|
NYSE Section 303A.07(a)
requires an audit committee to consist of at least three board members,
all of whom must be independent under NYSE Section 303A.02 and be
financially literate or must acquire such financial knowledge within a
reasonable period.
|
Our
audit committee is composed of our three independent directors, each of
whom complies with the independence requirements of NYSE Section 303A.02
and each member of our Audit Committee meets all applicable financial
literacy requirements.
|
NYSE Section 303A.07(b)
requires an audit committee to have a written charter establishing
the duties and responsibilities of its members, including the duties and
responsibilities required, at a minimum, by Section 10A-3(b)(1) of the
Exchange Act.
|
Our
audit committee has a written charter that is substantially similar to the
requirements of NYSE Section 303A.07(b).
|
NYSE Section 303A.07(c)
requires each company to have an internal audit function that provides to
the management and to the audit committee regular assessments on the
company’s risk management processes and internal control
system.
|
Our
internal audit function complies with the requirements of NYSE Section
303A.07(c).
|
NYSE Section 303A.08
requires each company to give to shareholders the opportunity to
vote on all equity based compensation plans and material revisions thereto
with certain exceptions.
|
Under
ROC law, shareholders approval is required for the distribution of
employee bonuses, while the board of directors has authority to approve
employee stock option plans and to grant options to employees pursuant to
such plans, subject to the approval of the FSC, Executive Yuan, ROC, and
to approve share buy-back programs and the transfer of shares to employees
under such programs.
|
NYSE Section 303A.09
requires public companies to adopt and disclose corporate
governance guidelines, including several issues for which such reporting
is mandatory, and to include such information on the company’s website
(which website should also include the charters of the audit committee,
the nominating committee, and the compensation committee.)
|
We
currently comply with ROC non-binding corporate governance principles
promulgated by the Taiwan Stock Exchange, and we provide an explanation of
differences between our practice and the principles, if any, in our ROC
annual report.
|
NYSE Section 303A.10
provides for the adoption of a code of business conduct and ethics
and sets out the topics that such code must contain.
|
ROC
law does not contain such a requirement. But our employee handbook, which
applies to all officers and employees, contains provisions covering
conflicts of interest, corporate opportunities, confidentiality, fair
dealing, protection and proper use of company assets and encouraging the
reporting of any illegal or unethical behavior. Although, we
have not adopted a written
|
NYSE
Standards for US Listed Companies
under
Listed Company Manual
Section
303A
|
Our
Corporate Governance Practices
|
code
of ethics specifically for our principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions, we believe that the provisions in
our employee handbook cover these individuals and there have not been any
waivers of the provisions of the employee handbook for any officers or
employees. Ethical oversight and actual or apparent conflicts of interest
have historically been handled informally by senior management, the board
of directors and supervisors. We will continue to address violations of
the code of business conduct and ethics contained in our employee handbook
and will continue to consider a separate code of ethics with the board of
directors should the need arise.
|
|
NYSE Section 303A.12(a)
requires the CEO, on a yearly basis, to certify to the NYSE that he or she
knows of no violation by the company of NYSE rules relating to corporate
governance.
|
ROC
law does not contain such a requirement. But, in order to comply with
relevant SEC regulations, our CEO is required to certify in our 20-F
annual report that, to his or her knowledge the information contained
therein fairly represents in all material respects the financial condition
and results of our operation.
|
NYSE Section 303A.12(b)
requires the CEO to notify the NYSE in writing whenever any executive
officer of the company becomes aware of any substantial non-fulfillment of
any applicable provision under NYSE Section 303A.
|
ROC
law does not contain such requirement. But, in order to be consistent with
the corporate governance principles established under the Sarbanes-Oxley
Act of 2002, our CEO complies with the notice provision as set forth under
NYSE Section 303A.12(b).
|
NYSE Section 303A.12(c)
requires each listed company to submit an executed Written Affirmation
annually to the NYSE and Interim Written Affirmation each time a change
occurs in the board or any of the committees subject to Section
303A.
|
ROC
law does not contain such requirement. But, in order to comply with the
corporate governance principles established under the Sarbanes-Oxley Act
of 2002, we will comply with NYSE Section
303A.12(c).
|
(a)
|
Report
of Independent Registered Public Accounting
Firm.
|
(b)
|
Consolidated
Balance Sheets of AU Optronics Corp. and subsidiaries as of December 31,
2008 and 2009.
|
(c)
|
Consolidated
Statements of Operations of AU Optronics Corp. and subsidiaries for the
years ended December 31, 2007, 2008 and
2009.
|
(d)
|
Consolidated
Statements of Stockholders’ Equity of AU Optronics Corp. and subsidiaries
for the years ended December 31, 2007, 2008 and
2009.
|
(e)
|
Consolidated
Statements of Cash Flows of AU Optronics Corp. and subsidiaries for the
years ended December 31, 2007, 2008 and
2009.
|
(f)
|
Notes
to Consolidated Financial Statements of AU Optronics Corp. and
subsidiaries.
|
1.1
|
Articles
of Incorporation (English translation).
|
2.1
|
Deposit
Agreement, dated May 29, 2002, among AU Optronics Corp., Citibank, N.A. as
depositary, and Holders and Beneficial Owners of American depositary
shares evidenced by American depositary receipts issued thereunder,
including the form of American depositary receipt (incorporated herein by
reference to Exhibit 2(A) to our annual report on Form 20-F as filed with
the Commission on June 30, 2003).
|
2.2
|
Amendment
No. 1 to the Deposit Agreement, dated February 15, 2006, among AU
Optronics Corp., Citibank, N.A. as depositary, and Holders and Beneficial
Owners of American depositary shares evidenced by American depositary
receipts issued thereunder, including the amended form of American
depositary receipt (incorporated herein by reference to Exhibit 2.2 to our
annual report on Form 20-F as filed with the Commission on June 29,
2007).
|
4.1
|
Patent
and Technology License Agreement by and between FDTC and AU Optronics
Corp., for TFT-LCD technologies, dated March 31, 2003 (incorporated herein
by reference to Exhibit 4(g) to our annual report on Form 20-F as filed
with the Commission on June 30, 2003).
|
4.2
|
Stock
Purchase Agreement by and among FDTC, Fujitsu and AU Optronics Corp., for
purchase certain amount of stocks of FDTC, dated March 25, 2003
(incorporated herein by reference to Exhibit 4(i) to our annual report on
Form 20-F as filed with the Commission on June 30,
2003).
|
4.3
|
Lease
Agreement with Hsinchu Science Park Administration in relation to
government-owned land located at Hsinchu Science Park, No. 76-6 Small
Section, Hsinchu, Taiwan, Republic of China, with respect to part of the
site of our previous L1 fab (incorporated herein by reference to Exhibit
4(j) to our annual report on Form 20-F as filed with the Commission on
June 30, 2003).
|
4.4
|
Lease
Agreement with Hsinchu Science Park Administration in relation to
government-owned land located at Hsinchu Science Park, No. 77 Small
Section, Hsinchu, Taiwan, Republic of China, with respect to part of the
site of L1 fab (incorporated herein by reference to Exhibit 4(k) to our
annual report on Form 20-F as filed with the Commission on June 30,
2003).
|
4.5
|
Lease Agreement with
Hsinchu Science Park Administration in relation to government-owned land
located at Hsinchu Science Park, Nos. 255-46 Gin-Shan Section, Hsinchu,
Taiwan, Republic of China, the site of one of our 3.5-generation fabs
(incorporated herein by reference to Exhibit 4(l) to ours annual report on
Form
20-F as filed with the Commission on June 30,
2003).
|
4.6
|
Lease
Agreement with Hsinchu Science Park Administration in relation to
government-owned land located at Hsinchu Science Park, Nos. 114-4 Gin-Shan
Section, Hsin-Chu, Taiwan, Republic of China, the site of one of our
3.5-generation fabs (incorporated herein by reference to Exhibit 4(m) to
our annual report on Form 20-F as filed with the Commission on June 30,
2003).
|
4.7
|
Lease
Agreement with Hsinchu Science Park Administration in relation to
government-owned land located at Hsinchu Science Park, Nos. 472 etc.,
Gin-Shan Section, Hsinchu, Taiwan, Republic of China, the site of one of
our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(n)
to our annual report on Form 20-F as filed with the Commission on June 30,
2003).
|
4.8
|
Lease
Agreement by and between Acer Display Technology, Inc. and Min-Tour Inc.
for No. 1 Xinhe Road Aspire Park, 325 Lungtan, Taoyuan, Taiwan, Republic
of China, the site of our fourth-generation fab and module-assembly plant
(in Chinese, with English summary translation) (incorporated herein by
reference to Exhibit 10.12 to our Registration Statement on Form F-1
(Registration No. 333-87418) as filed with Commission on May 1,
2002).
|
4.9
|
Lease
Agreement by and between AU Optronics Corp. and UMC for No. 1, Gin-Shan
Section 7 of Hsinchu Science Park, Hsinchu, Taiwan, Republic of China, the
site of one of our fourth-generation fab module-assembly plant (in
Chinese, with English summary translation) (incorporated herein by
reference to Exhibit 10.13 to our Registration Statement on Form F-1
(Registration No. 333-87418) as filed with the Commission on May 1,
2002).
|
4.10
|
Lease
Agreement by and between AU Optronics (Suzhou) Corp. and Chinese-Singapore
Suzhou Industrial Park Development Co., Ltd. for No. 398, Suhong Zhong
Road, Suzhou Industrial Park, Suzhou, The People’s Republic of China, the
site of two of our module-assembly plants (incorporated herein by
reference to Exhibit 4(q) to our annual report on Form 20-F as filed with
the Commission on June 30, 2003).
|
4.11
|
Merger
Agreement, dated April 7, 2006, between AU Optronics Corp. and Quanta
Display Inc. (incorporated herein by reference to Item 1 of our Form 6-K
as filed with the Commission on May 12, 2006).
|
4.12
|
Quanta
Display Inc. 2002 Employee Stock Option Plan (English translation)
(incorporated herein by reference to Exhibit 4.13 to our annual report on
Form 20-F as filed with the Commission on June 29,
2007).
|
4.13
|
Quanta
Display Inc. 2003 Employee Stock Option Plan (English translation)
(incorporated herein by reference to Exhibit 4.14 to our annual report on
Form 20-F as filed with the Commission on June 29,
2007).
|
8.1
|
List
of Subsidiaries.
|
12.1
|
Certification
of Lai-Juh (L.J.) Chen, Chief Executive Officer of AU Optronics Corp.,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (included on the
signature page hereto).
|
12.2
|
Certification
of Andy Yang, Chief Financial Officer of AU Optronics Corp., pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 (included on the signature
page hereto).
|
13.1
|
Certification
of Lai-Juh (L.J.) Chen, Chief Executive Officer of AU Optronics Corp.,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
13.2
|
Certification
of Andy Yang, Chief Financial Officer of AU Optronics Corp., pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
AU
OPTRONICS CORP.
|
|||
By: |
/s/ LAI-JUH
(L.J.) CHEN
|
||
Name: |
Lai-Juh
(L.J.) Chen
|
||
Title: |
Chief
Executive Officer
|
1.
|
I
have reviewed this annual report on Form 20-F of AU Optronics
Corp.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the company
as of, and for, the periods presented in this
report;
|
4.
|
The
company’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the company and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the company, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the company’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the company’s internal control over financial
reporting that occurred during the period covered by the annual report
that has materially affected, or is reasonably likely to materially
affect, the company’s internal control over financial reporting;
and
|
5.
|
The
company’s other certifying officer(s) and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the company’s auditors and the audit committee of the company’s board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the company’s internal control
over financial reporting.
|
By: |
/s/ LAI-JUH
(L.J.) CHEN
|
||
Name: |
Lai-Juh
(L.J.) Chen
|
||
Title: |
Chief
Executive Officer
|
1.
|
I
have reviewed this annual report on Form 20-F of AU Optronics
Corp.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the company
as of, and for, the periods presented in this
report;
|
4.
|
The
company’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the company and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the company, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the company’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the company’s internal control over financial
reporting that occurred during the period covered by the annual report
that has materially affected, or is reasonably likely to materially
affect, the company’s internal control over financial reporting;
and
|
5.
|
The
company’s other certifying officer(s) and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the company’s auditors and the audit committee of the company’s board of
directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the company’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the company’s internal control
over financial reporting.
|
Page
|
|
Consolidated
Financial Statements of AU Optronics Corp. and
Subsidiaries
|
|
F-1
|
|
F-2
|
|
F-4
|
|
F-6
|
|
F-9
|
|
F-11
|
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
Assets
|
||||||||||||
Current
assets:
|
||||||||||||
Cash
and cash equivalents (note 3)
|
83,434,697 | 85,443,311 | 2,674,282 | |||||||||
Notes
receivable and accounts receivable, net (note 7)
|
22,225,324 | 57,025,944 | 1,784,850 | |||||||||
Receivables
from related parties, net (note 23)
|
1,673,753 | 5,319,556 | 166,496 | |||||||||
Other
current financial assets (note 7)
|
3,082,294 | 1,867,294 | 58,444 | |||||||||
Inventories,
net (notes 8 and 24)
|
23,610,687 | 39,229,916 | 1,227,853 | |||||||||
Prepayments
and other current assets (notes 9 and 25)
|
5,348,063 | 1,280,206 | 40,069 | |||||||||
Equity
investments held-for-sale (note 9)
|
- | 707,175 | 22,134 | |||||||||
Deferred
tax assets (note 20)
|
5,380,440 | 5,199,265 | 162,731 | |||||||||
Financial
assets measured at fair value—current (note 6)
|
1,067,531 | 388,129 | 12,148 | |||||||||
Available-for-sale
financial assets—current (note 4)
|
470,301 | - | - | |||||||||
Total
current assets
|
146,293,090 | 196,460,796 | 6,149,007 | |||||||||
Long-term
investments:
|
||||||||||||
Equity-method
investments (note 10)
|
6,651,601 | 9,706,574 | 303,805 | |||||||||
Available-for-sale
financial assets—noncurrent (notes 4 and 24)
|
595,750 | 2,012,265 | 62,982 | |||||||||
Hedging
derivative financial assets—noncurrent (note 6)
|
5,398 | 3,829 | 120 | |||||||||
Financial
assets carried at cost (note 5)
|
583,197 | 484,009 | 15,149 | |||||||||
Total
long-term investments
|
7,835,946 | 12,206,677 | 382,056 | |||||||||
Property, plant and equipment
(notes 11, 23 and 24):
|
||||||||||||
Land
|
6,273,615 | 7,780,680 | 243,527 | |||||||||
Buildings
|
73,598,148 | 90,379,997 | 2,828,795 | |||||||||
Machinery
and equipment
|
513,629,547 | 621,880,340 | 19,464,173 | |||||||||
Other
equipment
|
25,143,816 | 29,729,246 | 930,493 | |||||||||
618,645,126 | 749,770,263 | 23,466,988 | ||||||||||
Less:
accumulated depreciation
|
(301,831,632 | ) | (395,405,471 | ) | (12,375,758 | ) | ||||||
Construction
in progress
|
12,312,856 | 9,773,502 | 305,900 | |||||||||
Prepayments
for purchases of land and equipment
|
60,221,909 | 26,611,776 | 832,919 | |||||||||
Net
property, plant and equipment
|
389,348,259 | 390,750,070 | 12,230,049 | |||||||||
Intangible
assets:
|
||||||||||||
Goodwill
(note 12)
|
11,280,595 | 11,464,947 | 358,840 | |||||||||
Deferred
pension cost (note 17)
|
9,509 | - | - | |||||||||
Core
technologies (note 12)
|
918,925 | - | - | |||||||||
Technology-related
fees (notes 12 and 25)
|
3,339,120 | 2,828,307 | 88,523 | |||||||||
Total
intangible assets
|
15,548,149 | 14,293,254 | 447,363 | |||||||||
Other
assets:
|
||||||||||||
Idle
assets, net (note 11)
|
2,612,320 | 1,797,158 | 56,249 | |||||||||
Deferred
charges
|
2,815,010 | 2,765,980 | 86,572 | |||||||||
Deferred
tax assets (note 20)
|
2,005,382 | 3,053,319 | 95,566 | |||||||||
Others
(notes 17 and 24)
|
477,482 | 1,285,504 | 40,235 | |||||||||
Total
other assets
|
7,910,194 | 8,901,961 | 278,622 | |||||||||
Total
Assets
|
566,935,638 | 622,612,758 | 19,487,097 |
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
Liabilities
and Stockholders’ Equity
|
||||||||||||
Current
liabilities:
|
||||||||||||
Short-term
borrowings (note 13)
|
4,857,260 | 1,945,227 | 60,883 | |||||||||
Notes
payable and accounts payable
|
45,929,222 | 69,779,706 | 2,184,028 | |||||||||
Payables
to related parties (note 23)
|
12,249,003 | 22,750,778 | 712,074 | |||||||||
Accrued
expenses and other current liabilities (note 18)
|
24,471,869 | 36,528,777 | 1,143,311 | |||||||||
Financial
liabilities measured at fair value—current (note
6)
|
28,831 | 1,087,827 | 34,048 | |||||||||
Equipment
and construction in progress payable
|
21,363,213 | 23,788,714 | 744,561 | |||||||||
Current
installments of long-term borrowings (notes 16 and
24)
|
30,491,872 | 38,537,926 | 1,206,195 | |||||||||
Current
installments of bonds payable (notes 14, 15 and
24)
|
13,093,382 | 8,306,408 | 259,981 | |||||||||
Total
current liabilities
|
152,484,652 | 202,725,363 | 6,345,081 | |||||||||
Long-term
liabilities:
|
||||||||||||
Financial
liabilities measured at fair value—noncurrent (note 6)
|
40,711 | 10,450 | 327 | |||||||||
Bonds
payable, excluding current installments (notes 14 and 24)
|
15,000,000 | 9,655,160 | 302,196 | |||||||||
Convertible
bonds payable, excluding current installments (note 15)
|
2,690,900 | - | - | |||||||||
Long-term
borrowings, excluding current installments (notes
16 and 24)
|
96,650,642 | 123,424,152 | 3,863,041 | |||||||||
Hedging
derivative financial liabilities—noncurrent (note
6)
|
788,678 | 505,372 | 15,818 | |||||||||
Long-term
payables and capital lease liabilities—excluding current
installments (notes 18 and 23)
|
- | 1,611,653 | 50,443 | |||||||||
Unearned
revenue (note 25)
|
- | 9,622,370 | 301,170 | |||||||||
Total
long-term liabilities
|
115,170,931 | 144,829,157 | 4,532,995 | |||||||||
Other liabilities (note
17)
|
21,319 | 139,246 | 4,358 | |||||||||
Total
liabilities
|
267,676,902 | 347,693,766 | 10,882,434 | |||||||||
Stockholders’ equity
(notes 4, 10 and 19):
|
||||||||||||
Capital
stock:
|
||||||||||||
Common
stock, NT$10 par value
|
85,057,196 | 88,270,455 | 2,762,768 | |||||||||
Capital
surplus
|
113,651,334 | 114,972,148 | 3,598,502 | |||||||||
Retained
earnings:
|
||||||||||||
Legal
reserve
|
13,079,368 | 15,206,106 | 475,934 | |||||||||
Unappropriated
retained earnings
|
76,912,630 | 40,863,051 | 1,278,969 | |||||||||
89,991,998 | 56,069,157 | 1,754,903 | ||||||||||
Others:
Cumulative
translation adjustments
|
2,330,858 | 1,685,733 | 52,762 | |||||||||
Minimum
pension liability
|
(40,252 | ) | - | - | ||||||||
Unrealized
gains (losses) on financial instruments
|
(932,163 | ) | 1,089,644 | 34,105 | ||||||||
1,358,443 | 2,775,377 | 86,867 | ||||||||||
290,058,971 | 262,087,137 | 8,203,040 | ||||||||||
Minority
interests
|
9,199,765 | 12,831,855 | 401,623 | |||||||||
Total
stockholders’ equity
|
299,258,736 | 274,918,992 | 8,604,663 | |||||||||
Commitments and contingent
liabilities (note 25)
|
||||||||||||
Total
Liabilities and Stockholders’ Equity
|
566,935,638 | 622,612,758 | 19,487,097 |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Net sales (note
23)
|
480,183,626 | 423,928,193 | 359,331,345 | 11,246,677 | ||||||||||||
Cost of goods sold (note
23)
|
394,005,401 | 368,600,330 | 352,290,469 | 11,026,306 | ||||||||||||
Gross
profit
|
86,178,225 | 55,327,863 | 7,040,876 | 220,371 | ||||||||||||
Operating expenses (note
23):
|
||||||||||||||||
Selling
|
11,600,525 | 8,992,831 | 8,000,028 | 250,392 | ||||||||||||
General
and administrative
|
5,432,426 | 7,907,578 | 8,094,414 | 253,346 | ||||||||||||
Research
and development
|
5,870,518 | 5,335,196 | 6,185,485 | 193,599 | ||||||||||||
22,903,469 | 22,235,605 | 22,279,927 | 697,337 | |||||||||||||
Operating
income (loss)
|
63,274,756 | 33,092,258 | (15,239,051 | ) | (476,966 | ) | ||||||||||
Non-operating
income and gains:
|
||||||||||||||||
Interest
income
|
1,693,005 | 1,845,712 | 265,975 | 8,325 | ||||||||||||
Investment
gains recognized by equity method, net
|
201,155 | - | 139,635 | 4,370 | ||||||||||||
Foreign
currency exchange gains, net
|
- | - | 236,909 | 7,415 | ||||||||||||
Gains
on valuation of financial instruments (note 6)
|
1,396,372 | 3,902,317 | 813,152 | 25,451 | ||||||||||||
Other
income (note 23)
|
987,020 | 1,709,071 | 1,953,635 | 61,147 | ||||||||||||
4,277,552 | 7,457,100 | 3,409,306 | 106,708 | |||||||||||||
Non-operating
expenses and losses:
|
||||||||||||||||
Interest
expenses
|
6,150,817 | 4,203,946 | 3,446,588 | 107,874 | ||||||||||||
Investment
losses recognized by equity method, net
|
- | 313,621 | - | - | ||||||||||||
Foreign
currency exchange losses, net
|
1,271,735 | 4,994,189 | - | - | ||||||||||||
Depreciation
of idle assets
|
811,355 | 654,639 | 1,102,132 | 34,496 | ||||||||||||
Asset
impairment losses (notes 4, 5, 9 and 11)
|
547,240 | 1,394,297 | 1,192,807 | 37,334 | ||||||||||||
Provisions
for potential litigation losses and others (notes 23 and
25)
|
207,317 | 2,717,755 | 9,696,129 | 303,478 | ||||||||||||
8,988,464 | 14,278,447 | 15,437,656 | 483,182 | |||||||||||||
Earnings
(loss) before income taxes
|
58,563,844 | 26,270,911 | (27,267,401 | ) | (853,440 | ) | ||||||||||
Income tax (expense) benefit
(note 20)
|
(2,087,910 | ) | (4,629,066 | ) | 22,587 | 707 | ||||||||||
Net
income (loss)
|
56,475,934 | 21,641,845 | (27,244,814 | ) | (852,733 | ) | ||||||||||
Attributable
to:
|
||||||||||||||||
Equity
holders of the parent company
|
56,417,766 | 21,267,386 | (26,769,335 | ) | (837,851 | ) | ||||||||||
Minority
interest
|
58,168 | 374,459 | (475,479 | ) | (14,882 | ) | ||||||||||
Net
income (loss)
|
56,475,934 | 21,641,845 | (27,244,814 | ) | (852,733 | ) |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Earnings (loss) per share—Basic
(note 21):
|
||||||||||||||||
Basic
(L)EPS—net income (loss)
|
7.22 | 2.50 | (3.04 | ) | (0.10 | ) | ||||||||||
Basic
EPS—retroactively adjusted
|
6.49 | 2.43 | ||||||||||||||
Earnings (loss) per
share—Diluted (note 21):
|
||||||||||||||||
Diluted
(L)EPS—net income (loss)
|
6.86 | 2.41 | (3.04 | ) | (0.10 | ) | ||||||||||
Diluted
EPS—retroactively adjusted
|
6.16 | 2.34 |
Capital
stock
|
Retained
earnings
|
Others
|
||||||||||||||||||||||||||||||||||||||||||
Number
of
shares
|
Amount
|
Capital
in
advance
|
Capital
surplus
|
Legal
reserve
|
Special
reserve
|
Unappropriated
retained
earnings
|
Cumulative
translation
adjustments
|
Unrealized
gains
(losses) on
financial instruments
|
Minority
interests
|
Total
|
||||||||||||||||||||||||||||||||||
Balance
at January 1, 2007
|
7,573,403 | 75,734,028 | - | 110,675,618 | 6,527,244 | 201,809 | 37,262,566 | 305,857 | 27,182 | 342,014 | 231,076,318 | |||||||||||||||||||||||||||||||||
Appropriation
for legal reserve
|
- | - | - | - | 910,347 | - | (910,347 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||
Capitalization
of employee stock bonus
|
57,352 | 573,519 | - | - | - | - | (573,519 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||
Employees’
profit sharing—cash
|
- | - | - | - | - | - | (245,793 | ) | - | - | - | (245,793 | ) | |||||||||||||||||||||||||||||||
Remuneration
to directors and supervisors
|
- | - | - | - | - | - | (30,500 | ) | - | - | - | (30,500 | ) | |||||||||||||||||||||||||||||||
Cash
dividends
|
- | - | - | - | - | - | (1,514,793 | ) | - | - | - | (1,514,793 | ) | |||||||||||||||||||||||||||||||
Stock
dividends to shareholders
|
151,479 | 1,514,793 | - | - | - | - | (1,514,793 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||
Reversal
of special reserve
|
- | - | - | - | - | (201,809 | ) | 201,809 | - | - | - | - | ||||||||||||||||||||||||||||||||
Issuance
of stock for conversion of bonds
|
34,104 | 341,037 | 460,668 | 2,901,626 | - | - | - | - | - | - | 3,703,331 | |||||||||||||||||||||||||||||||||
Deferred
compensation cost for employee stock options
|
- | - | - | 3,890 | - | - | - | - | - | - | 3,890 | |||||||||||||||||||||||||||||||||
Issuance
of stock for employee stock option exercised
|
1,368 | 13,678 | 14,283 | 98,530 | - | - | - | - | - | - | 126,491 | |||||||||||||||||||||||||||||||||
Adjustments
to capital surplus and unrealized gains (losses) on financial instruments
for changes in investees’ equity
|
- | - | - | 128,503 | - | - | - | - | (11,291 | ) | - | 117,212 | ||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | - | 56,417,766 | - | - | - | 56,417,766 | |||||||||||||||||||||||||||||||||
Minority
interests in net income of subsidiaries
|
- | - | - | - | - | - | - | - | - | 58,168 | 58,168 | |||||||||||||||||||||||||||||||||
Unrealized
gains on available-for-sale financial assets, net
|
- | - | - | - | - | - | - | - | 1,326,391 | - | 1,326,391 | |||||||||||||||||||||||||||||||||
Unrealized
gains on cash flow hedges, net
|
- | - | - | - | - | - | - | - | 396,472 | - | 396,472 | |||||||||||||||||||||||||||||||||
Foreign
currency translation adjustments
|
- | - | - | - | - | - | - | 744,194 | - | - | 744,194 | |||||||||||||||||||||||||||||||||
Adjustments
for changes in minority interests
|
- | - | - | - | - | - | - | - | - | 8,640,718 | 8,640,718 | |||||||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
7,817,706 | 78,177,055 | 474,951 | 113,808,167 | 7,437,591 | - | 89,092,396 | 1,050,051 | 1,738,754 | 9,040,900 | 300,819,865 |
Capital
stock
|
Retained
earnings
|
Others
|
||||||||||||||||||||||||||||||||||||||||||
Number
of
shares
|
Amount
|
Capital
in
advance
|
Capital
surplus
|
Legal
reserve
|
Unappropriated
retained
earnings
|
Cumulative
translation
adjustments
|
Minimum
pension
liability
|
Unrealized
gains
(losses) on
financial instruments
|
Minority
interests
|
Total
|
||||||||||||||||||||||||||||||||||
Balance
at January 1, 2008
|
7,817,706 | 78,177,055 | 474,951 | 113,808,167 | 7,437,591 | 89,092,396 | 1,050,051 | - | 1,738,754 | 9,040,900 | 300,819,865 | |||||||||||||||||||||||||||||||||
Appropriation
for legal reserve
|
- | - | - | - | 5,641,777 | (5,641,777 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Capitalization
of employee stock bonus
|
243,725 | 2,437,247 | - | - | - | (2,437,247 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Employees’
profit sharing—cash
|
- | - | - | - | - | (1,624,832 | ) | - | - | - | - | (1,624,832 | ) | |||||||||||||||||||||||||||||||
Remuneration
to directors and supervisors
|
- | - | - | - | - | (138,604 | ) | - | - | - | - | (138,604 | ) | |||||||||||||||||||||||||||||||
Cash
dividends
|
- | - | - | - | - | (19,670,577 | ) | - | - | - | - | (19,670,577 | ) | |||||||||||||||||||||||||||||||
Stock
dividends to shareholders
|
393,411 | 3,934,115 | - | - | - | (3,934,115 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Issuance
of stock for conversion of bonds
|
48,829 | 488,289 | (460,668 | ) | 100,418 | - | - | - | - | - | - | 128,039 | ||||||||||||||||||||||||||||||||
Issuance
of stock for employee stock option exercised
|
2,049 | 20,490 | (14,283 | ) | 20,402 | - | - | - | - | - | - | 26,609 | ||||||||||||||||||||||||||||||||
Adjustments
to capital surplus and unrealized losses on financial instruments for
changes in investees’ equity
|
- | - | - | (277,653 | ) | - | - | - | - | (202,187 | ) | - | (479,840 | ) | ||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | 21,267,386 | - | - | - | - | 21,267,386 | |||||||||||||||||||||||||||||||||
Minority
interests in net income of subsidiaries
|
- | - | - | - | - | - | - | - | - | 374,459 | 374,459 | |||||||||||||||||||||||||||||||||
Unrealized
losses on available-for-sale financial assets, net
|
- | - | - | - | - | - | - | - | (1,763,605 | ) | - | (1,763,605 | ) | |||||||||||||||||||||||||||||||
Unrealized
losses on cash flow hedges, net
|
- | - | - | - | - | - | - | - | (705,125 | ) | - | (705,125 | ) | |||||||||||||||||||||||||||||||
Foreign
currency translation adjustments
|
- | - | - | - | - | - | 1,280,807 | - | - | - | 1,280,807 | |||||||||||||||||||||||||||||||||
Minimum
pension liability
|
- | - | - | - | - | - | - | (40,252 | ) | - | - | (40,252 | ) | |||||||||||||||||||||||||||||||
Adjustments
for changes in minority interests
|
- | - | - | - | - | - | - | - | - | (215,594 | ) | (215,594 | ) | |||||||||||||||||||||||||||||||
Balance
at December 31, 2008
|
8,505,720 | 85,057,196 | - | 113,651,334 | 13,079,368 | 76,912,630 | 2,330,858 | (40,252 | ) | (932,163 | ) | 9,199,765 | 299,258,736 |
Capital
stock
|
Retained
earnings
|
Others
|
||||||||||||||||||||||||||||||||||||||
Number
of
shares
|
Amount
|
Capital
surplus
|
Legal
reserve
|
Unappropriated
retained
earnings
|
Cumulative
translation
adjustments
|
Minimum
pension
liability
|
Unrealized
gains
(losses) on
financial instruments
|
Minority
interests
|
Total
|
|||||||||||||||||||||||||||||||
Balance
at January 1, 2009
|
8,505,720 | 85,057,196 | 113,651,334 | 13,079,368 | 76,912,630 | 2,330,858 | (40,252 | ) | (932,163 | ) | 9,199,765 | 299,258,736 | ||||||||||||||||||||||||||||
Appropriation
for legal reserve
|
- | - | - | 2,126,738 | (2,126,738 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Cash
dividends
|
- | - | - | - | (2,551,716 | ) | - | - | - | - | (2,551,716 | ) | ||||||||||||||||||||||||||||
Stock
dividends to shareholders
|
255,172 | 2,551,716 | - | (2,551,716 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||
Capitalization
of employee stock bonus
|
66,154 | 661,543 | 1,348,225 | - | - | - | - | - | - | 2,009,768 | ||||||||||||||||||||||||||||||
Adjustments
to capital surplus, retained earnings and unrealized gains (losses) on
financial instruments for changes in investees’ equity
|
- | - | (27,411 | ) | - | (2,050,074 | ) | - | - | 190,312 | - | (1,887,173 | ) | |||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | (26,769,335 | ) | - | - | - | - | (26,769,335 | ) | ||||||||||||||||||||||||||||
Minority
interests in net loss of subsidiaries
|
- | - | - | - | - | - | - | - | (475,479 | ) | (475,479 | ) | ||||||||||||||||||||||||||||
Unrealized
gains on available-for-sale financial assets, net
|
- | - | - | - | - | - | - | 1,637,350 | - | 1,637,350 | ||||||||||||||||||||||||||||||
Unrealized
losses on cash flow hedges, net
|
- | - | - | - | - | - | - | 194,145 | - | 194,145 | ||||||||||||||||||||||||||||||
Foreign
currency translation adjustments
|
- | - | - | - | - | (645,125 | ) | - | - | - | (645,125 | ) | ||||||||||||||||||||||||||||
Reversal
of minimum pension liability
|
- | - | - | - | - | - | 40,252 | - | - | 40,252 | ||||||||||||||||||||||||||||||
Adjustments
for changes in minority interests
|
- | - | - | - | - | - | - | - | 4,107,569 | 4,107,569 | ||||||||||||||||||||||||||||||
Balance
at December 31, 2009
|
8,827,046 | 88,270,455 | 114,972,148 | 15,206,106 | 40,863,051 | 1,685,733 | - | 1,089,644 | 12,831,855 | 274,918,992 | ||||||||||||||||||||||||||||||
Balance
at December 31, 2009 (in US$)
|
2,762,768 | 3,598,502 | 475,934 | 1,278,969 | 52,762 | - | 34,105 | 401,623 | 8,604,663 |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income (loss)
|
56,475,934 | 21,641,845 | (27,244,814 | ) | (852,733 | ) | ||||||||||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||||||||||
Depreciation
|
77,546,880 | 78,411,867 | 87,512,945 | 2,739,059 | ||||||||||||
Amortization
of intangible assets and deferred charges
|
4,158,688 | 2,776,565 | 2,594,666 | 81,210 | ||||||||||||
Unrealized
foreign currency exchange losses (gains), net
|
880,974 | 2,298,557 | (2,192,835 | ) | (68,633 | ) | ||||||||||
Asset
impairment losses
|
547,240 | 1,394,297 | 1,192,807 | 37,334 | ||||||||||||
Losses
(gains) on valuation of financial instruments
|
(381,052 | ) | (1,075,326 | ) | 1,336,469 | 41,830 | ||||||||||
Investment
losses (gains) recognized by equity method, net
|
(201,155 | ) | 313,621 | (139,635 | ) | (4,370 | ) | |||||||||
Proceeds
from cash dividends
|
84,342 | 142,368 | 142,096 | 4,447 | ||||||||||||
Losses
(gains) on disposal of investment securities
|
(25,014 | ) | 142,267 | (384,186 | ) | (12,025 | ) | |||||||||
Amortization
of premium for convertible bonds and commercial paper
|
(375,095 | ) | (3,732 | ) | 30,588 | 957 | ||||||||||
Losses
(gains) from disposal and write-off of property, plant and equipment, and
others
|
52,687 | 33,631 | (7,340 | ) | (230 | ) | ||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||
Decrease
(increase) in accounts receivable (including related
parties)
|
(14,211,494 | ) | 51,485,303 | (39,564,516 | ) | (1,238,326 | ) | |||||||||
Decrease
(increase) in inventories, net
|
7,404,509 | 11,831,747 | (12,708,862 | ) | (397,773 | ) | ||||||||||
Decrease
(increase) in deferred tax assets, net
|
(2,435,780 | ) | 2,411,066 | (716,548 | ) | (22,427 | ) | |||||||||
Decrease
(increase) in prepayments (including long-term prepayments for materials)
and other current assets
|
(1,854,495 | ) | 1,625,308 | 4,535,738 | 141,964 | |||||||||||
Increase
(decrease) in accounts payable (including related parties)
|
17,881,742 | (39,799,729 | ) | 32,455,076 | 1,015,808 | |||||||||||
Increase
(decrease) in accrued expenses and other current
liabilities
|
11,474,524 | (1,453,395 | ) | 10,297,563 | 322,302 | |||||||||||
Increase
in prepaid pension assets
|
(96,521 | ) | (118,750 | ) | (98,193 | ) | (3,073 | ) | ||||||||
Net
cash provided by operating activities
|
156,926,914 | 132,057,510 | 57,041,019 | 1,785,321 | ||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Acquisition
of property, plant and equipment
|
(65,136,668 | ) | (98,355,181 | ) | (61,046,891 | ) | (1,910,701 | ) | ||||||||
Proceeds
from disposals of property, plant and equipment, noncurrent assets
held-for-sale, and idle assets
|
138,003 | 1,344,356 | 235,562 | 7,373 | ||||||||||||
Purchase
of convertible bonds
|
- | - | (500,002 | ) | (15,650 | ) | ||||||||||
Proceeds
from disposal of available-for-sale financial
assets-current
|
205,564 | 270,250 | 854,849 | 26,756 | ||||||||||||
Purchase
of long-term investments
|
(1,209,033 | ) | (2,889,016 | ) | (5,804,295 | ) | (181,668 | ) | ||||||||
Proceeds
from disposal of long-term investments
|
76,166 | 378 | 299,203 | 9,365 | ||||||||||||
Decrease
(increase) in restricted cash in bank
|
9,700 | 7,999 | (425,799 | ) | (13,327 | ) | ||||||||||
Increase
in intangible assets and deferred charges
|
(2,029,574 | ) | (1,502,092 | ) | (1,121,028 | ) | (35,087 | ) | ||||||||
Decrease
(increase) in refundable deposits
|
219,069 | (134,105 | ) | 52,404 | 1,640 | |||||||||||
Cash
increase resulting from change in consolidated entity
|
1,603,665 | - | 839,336 | 26,270 | ||||||||||||
Net
cash used in investing activities
|
(66,123,108 | ) | (101,257,411 | ) | (66,616,661 | ) | (2,085,029 | ) |
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Increase
(decrease) in short-term borrowings
|
(3,592,871 | ) | 4,720,666 | (4,901,690 | ) | (153,418 | ) | |||||||||
Increase
(decrease) in guarantee deposits
|
3,054 | 2,912 | (5,758 | ) | (180 | ) | ||||||||||
Repayment
of long-term borrowings and bonds payable
|
(76,843,555 | ) | (57,993,509 | ) | (49,291,812 | ) | (1,542,780 | ) | ||||||||
Proceeds
from long-term borrowings and bonds payable
|
36,845,178 | 37,299,393 | 66,844,430 | 2,092,158 | ||||||||||||
Proceeds
from issuance of stock for employee stock options
exercised
|
126,491 | 26,609 | - | - | ||||||||||||
Cash
dividends
|
(1,514,793 | ) | (19,670,577 | ) | (2,551,716 | ) | (79,866 | ) | ||||||||
Remuneration
to directors and supervisors, and employees’ profit
sharing
|
(276,293 | ) | (1,763,436 | ) | - | - | ||||||||||
Proceeds
from issuance of subsidiary shares to minority interests
|
396,228 | 40,000 | 2,445,262 | 76,534 | ||||||||||||
Cash
dividends to minority interests and others
|
39,994 | (97,667 | ) | (613,376 | ) | (19,198 | ) | |||||||||
Net
cash provided by (used in) financing activities
|
(44,816,567 | ) | (37,435,609 | ) | 11,925,340 | 373,250 | ||||||||||
Effect
of exchange rate change on cash
|
(23,172 | ) | 180,600 | (341,084 | ) | (10,675 | ) | |||||||||
Net
increase (decrease) in cash and cash equivalents
|
45,964,067 | (6,454,910 | ) | 2,008,614 | 62,867 | |||||||||||
Cash
and cash equivalents at beginning of year
|
43,925,540 | 89,889,607 | 83,434,697 | 2,611,415 | ||||||||||||
Cash
and cash equivalents at end of year
|
89,889,607 | 83,434,697 | 85,443,311 | 2,674,282 | ||||||||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||||||
Cash
paid for interest expense (excluding interest capitalized)
|
6,263,952 | 4,112,907 | 3,459,032 | 108,264 | ||||||||||||
Cash
paid for income taxes
|
930,586 | 5,179,223 | 2,127,321 | 66,583 | ||||||||||||
Additions
to property, plant and equipment:
|
||||||||||||||||
Increase
in property, plant and equipment
|
49,903,453 | 103,289,880 | 62,430,334 | 1,954,001 | ||||||||||||
Decrease
(increase) in equipment and construction-in-progress
payables
|
15,233,215 | (4,934,699 | ) | (1,383,443 | ) | (43,300 | ) | |||||||||
65,136,668 | 98,355,181 | 61,046,891 | 1,910,701 | |||||||||||||
Supplementary
disclosure of non-cash investing and financing activities:
|
||||||||||||||||
Current
installments of long-term liabilities
|
35,585,178 | 43,585,254 | 46,844,334 | 1,466,176 | ||||||||||||
Issuance
of common stock for bond conversion rights exercised
|
3,703,331 | 128,039 | - | - | ||||||||||||
Conversion
of convertible bonds into equity method investments
|
- | - | 618,065 | 19,345 | ||||||||||||
Impact
of change in consolidated entities:
|
||||||||||||||||
Cash
|
1,603,665 | - | 839,336 | 26,270 | ||||||||||||
Non-cash
assets
|
15,562,075 | - | 34,416,206 | 1,077,190 | ||||||||||||
Liabilities
|
(1,584,927 | ) | - | (30,541,846 | ) | (955,926 | ) | |||||||||
Minority
interests
|
(8,204,496 | ) | - | (482,658 | ) | (15,107 | ) | |||||||||
7,376,317 | - | 4,231,038 | 132,427 |
1.
|
Organization
|
Percentage
of
Ownership(%)
|
||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December
31, 2008
|
December
31, 2009
|
||
AUO
|
AU
Optronics (L) Corp. (AULB)
|
Holding
and trading company
|
100.00
|
100.00
|
||
AUO
|
Konly
Venture Corp. (Konly)
|
Venture
capital investment
|
100.00
|
100.00
|
||
AUO
|
Ronly
Venture Corp. (Ronly)
|
Venture
capital investment
|
100.00
|
100.00
|
||
AUO
|
Toppan
CFI (Taiwan) Co., Ltd. (Toppan CFI)
|
Manufacturing
and sale of color filters
|
49.00
|
49.00
|
||
AUO, Konly and
Ronly
|
Lextar
Electronics Corp. (Lextar)
|
Manufacturing
and sale of LED products.
|
100.00
|
68.43
|
||
AUO, Konly and
Ronly
|
Darwin
Precisions Corp. (DPTW)
|
Manufacturing
and sale of backlight modules.
|
100.00
|
62.08
|
||
AUO
|
BriView
Technology Corp. (BVTW)
|
Manufacturing
and sale of liquid crystal products and related parts
|
60.00
|
60.00
|
||
AUO
|
AUO
Energy Taiwan Corp. (AETW)
|
Technical
services
|
-
|
100.00
|
Percentage
of
Ownership(%)
|
||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December
31, 2008
|
December
31, 2009
|
||
Konly
|
Darshin
Microelectronics Inc. (DSTW)
|
IC
design and sales support
|
-
|
66.67
|
||
AULB
|
AU
Optronics Corporation America (AUUS)
|
Sales
support in the United States
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics Corporation Japan (AUJP)
|
Sales
support in Japan
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics Europe B.V. (AUNL)
|
Sales
support in Europe
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics Korea Ltd. (AUKR)
|
Sales
support in South Korea
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics Singapore Pte. Ltd. (AUSG)
|
Sales
support in South Asia
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics (Czech) s.r.o. (AUCZ)
|
Manufacturing
and repair center in Czech Republic and assembly of TFT-LCD modules and TV
set
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics (Shanghai) Corp. (AUSH)
|
Sales
support in the PRC
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics (Xiamen) Corp. (AUXM)
|
Assembly
of TFT-LCD modules in the PRC
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics
(Suzhou)
Corp. (AUSZ)
|
Assembly
of TFT-LCD modules in the PRC
|
100.00
|
100.00
|
||
AULB
|
AU
Optronics Manufacturing (Shanghai) Corp. (AUSJ)
|
Assembly
of TFT-LCD modules in the PRC
|
100.00
|
100.00
|
||
AULB
|
AU
Oprtonics (Slovakia) s.r.o. (AUSK)
|
Assembly
of Optoelectronics LCD products in Slovakia and manufacturing and sale of
related parts
|
-
|
100.00
|
||
AULB
|
BriView
Electronics Corp. (BVXM)
|
Manufacturing
and sale of liquid crystal products and related parts
|
-
|
100.00
|
||
AULB
and DPTW
|
Darwin
Precisions (L) Corp. (DPLB)
|
Holding
and trading company
|
73.53
|
100.00
|
||
AULB
|
BriView
(L) Corp. (BVLB)
|
Holding
and trading company
|
-
|
100.00
|
Percentage
of
Ownership(%)
|
||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December
31, 2008
|
December
31, 2009
|
||
AULB
|
M.
Setek Co., Ltd.
(M.
Setek)
|
Manufactures
of single crystal silicon wafers and ingots and sales of solar
modules
|
-
|
58.10
|
||
DPLB
|
Darwin
Precisions (Hong Kong) Limited (DPHK)
|
Holding
company
|
100.00
|
100.00
|
||
DPHK
|
Darwin
Precisions (Suzhou) Corp. (DPSZ)
|
Manufacturing
and assembly of backlight modules and related components in
PRC
|
100.00
|
100.00
|
||
DPHK
|
Darwin
Precisions (Xiamen) Corp. (DPXM)
|
Manufacturing
and assembly of backlight modules and related components in
PRC
|
100.00
|
100.00
|
||
BVLB
|
BVCH
Optronics (Sichuan) Corp. (BVCH)
|
Assembly
of TFT-LCD modules in the PRC
|
-
|
51.00
|
||
M.
Setek
|
Ichijo
Seisakusyo Co., Ltd. (Ichijo)
|
Manufacturing
semiconductor products.
|
-
|
38.46
|
2.
|
Summary
of Significant Accounting Policies
|
|
(a)
|
Accounting
principles and consolidation policy
|
|
(b)
|
Revenue
recognition
|
|
(d)
|
Foreign
currency transactions and
translation
|
|
(e)
|
Classification
of current and noncurrent assets and
liabilities
|
|
(f)
|
Asset
impairment
|
|
(g)
|
Cash
equivalents and restricted cash in
bank
|
|
(h)
|
Financial
instruments
|
|
(1)
|
Financial
assets and liabilities measured at fair value through profit or
loss: Financial instruments are classified into this category
if the purpose of acquisition is principally for selling or repurchasing
in the near term. Except for effective hedging derivative
financial instruments, all financial derivatives are included in this
category. Changes in fair values are charged to current
operations.
|
|
(2)
|
Available-for-sale
financial assets: These are measured at fair value, and any
changes, excluding impairment loss and unrealized foreign currency
exchange gain or loss, are reported as a separate component of
stockholders’ equity until realized. Realized gain or loss on
financial instruments is charged to current operations. If
there is objective evidence of impairment, an impairment loss is
recognized in profit or loss. If, in a subsequent period,
events or changes in circumstances indicate that the amount of impairment
loss decreases, the previously recognized impairment loss for equity
securities is reversed to the extent of the decrease and recorded as an
adjustment to equity, while for debt securities, the reversal is allowed
through profit or loss provided that the decrease is clearly attributable
to an event which occurs after the impairment loss is
recognized.
|
|
(3)
|
Financial
assets carried at cost: Financial assets that do not have a
quoted market price in an active market and whose fair value cannot be
reliably measured are carried at their original cost. If there
is objective evidence which indicates that a financial asset is impaired,
a loss is recognized. A subsequent reversal of such impairment
loss is prohibited.
|
|
(4)
|
Investments
in debt security with no active market: Debt investments are measured at
amortized cost using the effective interest method. If there is
objective evidence which indicates the financial asset is impaired, a loss
is recognized. If, in a subsequent period, the amount of the
impairment loss decreases and the decrease is clearly attributable to an
event which occurred after the impairment loss was recognized, the
previously recognized impairment loss is reversed to the extent of the
decrease. The reversal may not result in a carrying amount of
the financial asset that exceeds the amortized cost that would have been
determined if no impairment loss had been
recognized.
|
|
(5)
|
Financial
liabilities measured at amortized cost: Financial liabilities
not measured at fair value through profit or loss and not designated as
hedges are reported at amortized
cost.
|
|
(6)
|
Hedging-purpose
derivative financial instruments: These are derivative
instruments entered into to hedge exposure to interest rate risks and
effective as hedges.
|
|
(i)
|
Derivative
financial instruments and hedging
activities
|
|
(j)
|
Allowance
for doubtful accounts
|
|
(k)
|
Inventories
|
(l)
|
Equity-method
investments
|
|
(m)
|
Property,
plant and equipment
|
|
(n)
|
Leased
Assets
|
(o)
|
Deferred
charges
|
|
(p)
|
Goodwill
and other intangible assets
|
|
(q)
|
Noncurrent
assets held-for-sale
|
|
(r)
|
Convertible
bonds assumed in a business
combination
|
(s)
|
Retirement
plans
|
(t)
|
Employee
bonuses and remuneration to
directors
|
|
(u)
|
Share-based
payment transactions
|
|
(v)
|
Employee
stock options assumed in a business
combination
|
|
(w)
|
Government
grants
|
|
(x)
|
Income
taxes
|
|
(y)
|
Investment
tax credits
|
|
(z)
|
Earnings
(losses) per common share
(“(L)EPS”)
|
|
(za)
|
Convenience
translation into U.S. dollars
|
|
(zb)
|
Reclassifications
|
|
(zc)
|
Accounting
changes
|
3.
|
Cash
and Cash Equivalents
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands) | ||||||||||||
Cash
and bank deposits
|
63,880,848 | 73,560,405 | 2,302,360 | |||||||||
Government
bonds
|
19,553,849 | 11,882,906 | 371,922 | |||||||||
83,434,697 | 85,443,311 | 2,674,282 |
4.
|
Available-for-sale
Financial Assets
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands) | ||||||||||||
Current:
|
||||||||||||
Publicly
listed stocks
|
470,301 | - | - | |||||||||
Noncurrent:
|
||||||||||||
Publicly
listed stocks
|
595,750 | 2,012,265 | 62,982 |
5.
|
Financial
Assets Carried at Cost—noncurrent
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands) | ||||||||||||
Non-publicly
listed stocks
|
583,197
|
484,009
|
15,149
|
6.
|
Derivative
Financial Instruments and Hedging
Policy
|
(a)
|
Derivative
financial instruments
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands) | ||||||||||||
Derivative
financial assets:
|
||||||||||||
Foreign
currency forward contracts
|
1,067,531 | 378,252 | 11,839 | |||||||||
Interest
rate swap contracts
|
5,398 | 3,963 | 124 | |||||||||
Options
contracts
|
- | 9,743 | 305 | |||||||||
Derivative
financial liabilities:
|
||||||||||||
Foreign
currency forward contracts
|
28,831 | 933,289 | 29,211 | |||||||||
Interest
rate swap contracts
|
829,389 | 515,847 | 16,145 | |||||||||
Options
contracts
|
- | 154,513 | 4,837 |
December 31, 2009
|
||||||
Contract item
|
Notional amount
|
Exercise
rate/
Price range
|
Exercise
period
|
|||
(in
thousands)
|
||||||
Interest
rate options
|
YEN1,800,000
|
1.00% |
Mar.
2010 – Sep. 2011
|
|||
Foreign
currency call options
|
USD12,050
|
YEN95.53
– 109.75
|
Jan.
2010 – Nov. 2013
|
|||
Foreign
currency put options
|
USD24,100
|
YEN95.53
– 109.75
|
Jan.
2010 – Nov. 2013
|
December 31, 2008
|
||||
Contract item
|
Maturity date
|
Contract amount
|
||
(in
thousands)
|
||||
Sell
USD / Buy YEN
|
Jan.
2009 – Feb. 2009
|
USD33,500
/ YEN3,252,780
|
||
Sell
NTD / Buy YEN
|
Jan.
2009 – Mar. 2009
|
NTD14,983,792
/ YEN43,739,100
|
||
Sell
NTD / Buy USD
|
Jan.
2009
|
NTD1,001,650
/ USD30,000
|
||
Sell
USD / Buy EUR
|
Jan.
2009
|
USD21,033
/ EUR15,000
|
||
Sell
USD / Buy CNY
|
Jan.
2009 – May 2009
|
USD15,000
/ CNY102,847
|
||
Sell
CNY / Buy USD
|
Jan.
2009
|
CNY48,272
/ USD7,000
|
December 31, 2009
|
||||
Contract item
|
Maturity date
|
Contract amount
|
||
(in
thousands)
|
||||
Sell
USD / Buy YEN
|
Jan.
2010 – Mar. 2010
|
USD646,500
/ YEN57,850,177
|
||
Sell
NTD / Buy YEN
|
Jan.
2010 – May 2010
|
NTD3,439,837
/ YEN9,741,408
|
||
Sell
USD / Buy NTD
|
Jan.
2010 – Feb. 2010
|
USD342,000
/ NTD11,030,347
|
||
Sell
USD / Buy CNY
|
Jan.
2010
|
USD11,000
/ CNY75,082
|
||
Sell
EUR / Buy NTD
|
Jan.
2010 – Apr. 2010
|
EUR177,000
/ NTD8,411,451
|
||
Sell
CNY / Buy USD
|
Jan.
2010 – Feb. 2010
|
CNY150,200
/ USD22,000
|
||
Sell
YEN / Buy USD
|
Jan.
2010 – Dec. 2013
|
YEN1,243,225
/ USD11,500
|
(b)
|
Hedge
accounting
|
December 31, 2008
|
||||||||
Hedged item
|
Hedging
instrument
|
Fair
value of
hedging instrument
|
Expected
period
of cash flows
|
Expected
period
of recognition
in earnings
|
||||
NT$
|
||||||||
(in
thousands)
|
||||||||
Bonds
payable with variable interest rate
|
Interest
rate swap contracts
|
5,398
|
Jan.
2009–Apr.
2009
|
Jan.
2009–Apr.
2009
|
||||
Long-term
borrowings with variable interest rate
|
Interest
rate swap contracts
|
(788,678)
|
Jan.
2009–Dec.
2012
|
Jan.
2009–Dec.
2012
|
December 31, 2009
|
||||||||
Hedged item
|
Hedging
instrument
|
Fair
value of
hedging instrument
|
Expected
period
of cash flows
|
Expected
period
of recognition
in earnings
|
||||
NT$
|
||||||||
(in
thousands)
|
||||||||
Long-term
borrowings with variable interest rate
|
Interest
rate swap contracts
|
(501,543)
|
Jan.
2010–Sep.
2014
|
Jan.
2010–Sep.
2014
|
7.
|
Notes
receivable and accounts receivable,
net
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands) | ||||||||||||
Notes
receivable
|
- | 3,512 | 110 | |||||||||
Accounts
receivable
|
23,359,219 | 57,220,600 | 1,790,942 | |||||||||
Less:
allowance for doubtful accounts
|
(97,608 | ) | (91,294 | ) | (2,857 | ) | ||||||
allowance
for sales returns and discounts
|
(1,036,287 | ) | (106,874 | ) | (3,345 | ) | ||||||
22,225,324 | 57,025,944 | 1,784,850 |
For the year ended December 31,
2008
|
||||||
Underwriting
bank
|
Factoring
limit
|
Amount
advanced
|
Amount
sold
|
Amount
excluded
|
Principle
terms
|
Promissory
note
as collateral
|
(in
thousands)
|
||||||
Mizuho
Corporate Bank
|
USD95,000
|
-
|
USD123,831
|
USD123,831
|
See
below
|
None
|
Standard
Chartered Bank
|
USD36,000
|
USD12,000
|
USD330,795
|
USD330,795
|
See
below
|
None
|
Bank
of China
|
USD40,000
|
USD25,948
|
USD 63,517
|
USD 63,517
|
See
below
|
None
|
For the year ended December 31,
2009
|
||||||
Underwriting
bank
|
Factoring
limit
|
Amount advanced
|
Amount
sold
|
Amount
excluded
|
Principle
terms
|
Promissory
note
as collateral
|
(in
thousands)
|
||||||
Taipei
Fubon Bank
|
USD15,000
|
-
|
USD21,583
|
USD21,583
|
See
below
|
None
|
China
trust Commercial Bank
|
USD30,000
|
-
|
USD93,733
|
USD93,733
|
See
below
|
None
|
Standard
Chartered Bank
|
USD36,000
|
-
|
USD55,425
|
USD55,425
|
See
below
|
None
|
Bank
of China
|
-
|
-
|
USD74,540
|
USD74,540
|
See
below
|
None
|
Standard
Chartered Bank
|
USD165,000
|
USD154,606
|
USD266,883
|
USD266,883
|
See
below
|
None
|
Note
(a):
|
Under
these facilities, the Company, irrevocably and without recourse,
transferred accounts receivable to the respective underwriting
banks.
|
Note
(b):
|
To
the extent of the amount sold to the underwriting banks, risks of
non-collection or default by customers in the event of financial
difficulties are borne by respective banks. The Company is not responsible
for the collection of receivables subject to these facilities, or for any
legal proceedings and costs thereof in recovering these
receivables.
|
Note
(c):
|
The
Company had informed its customers subject to the facilities to make
payment directly to the respective underwriting
banks.
|
Note
(d):
|
As
of December 31, 2008 and 2009, total outstanding receivables resulting
from the above transactions, net of fees charged by underwriting banks, of
NT$2,493,779 thousand and NT$1,436,061 (US$44,947) thousand, respectively,
were classified under other current financial
assets.
|
8.
|
Inventories,
net
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Finished
goods
|
12,569,057 | 13,958,910 | 436,899 | |||||||||
Work-in-progress
|
8,104,339 | 17,109,430 | 535,506 | |||||||||
Raw
materials and spare parts
|
2,937,291 | 8,161,576 | 255,448 | |||||||||
23,610,687 | 39,229,916 | 1,227,853 |
9.
|
Equity investments
held-for-sale
|
December 31, 2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Joint
venture investment- Ningjin Songgong
|
493,415 | 15,443 | ||||||
Joint
venture investment - Langfang Songgong
|
213,760 | 6,691 | ||||||
707,175 | 22,134 |
10.
|
Equity-Method
Investments
|
December 31,
|
|||||||||||||||||||||
2008
|
2009
|
||||||||||||||||||||
Ownership
interest
|
Amount
|
Ownership
interest
|
Amount
|
||||||||||||||||||
%
|
NT$
|
%
|
NT$
|
US$
|
|||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||
Qisda
Corporation (“Qisda”)
|
10
|
2,713,352 | 10 | 2,837,687 | 88,817 | ||||||||||||||||
Forhouse
Corporation (“Forhouse”)
|
15
|
457,230 | 25 | 1,709,468 | 53,504 | ||||||||||||||||
Cando
Corporation Ltd. (“Cando”)
|
18
|
1,138,212 | 18 | 1,059,564 | 33,163 | ||||||||||||||||
Sipix
Technology Inc. (“STI”)
|
-
|
- | 32 | 909,706 | 28,473 | ||||||||||||||||
Taiwan
Nano Electro-Optical Technology (“Nano”)
|
16
|
682,472 | 16 | 642,269 | 20,102 | ||||||||||||||||
Light
House Technology Co., Ltd. (“LHTC”)
|
17
|
165,226 | 45 | 604,182 | 18,910 | ||||||||||||||||
Wellypower
Optronics Corporation Ltd. (“Wellypower”)
|
9
|
437,848 |
9
|
465,871 | 14,581 | ||||||||||||||||
Raydium
Semiconductor Corp. (“Raydium”)
|
16
|
268,685 | 15 | 429,561 | 13,445 | ||||||||||||||||
Entire
Technology Co., Ltd. (“Entire”)
|
12
|
270,944 | 10 | 341,425 | 10,686 | ||||||||||||||||
Daxin
Materials Corp. (“Daxin”)
|
35
|
190,070 | 33 | 268,126 | 8,392 | ||||||||||||||||
Asia
Pacific Genesis Venture Capital Fund L.P. (“Asia Pacific
VC”)
|
11
|
271,451 | 11 | 245,297 | 7,678 | ||||||||||||||||
Abakus
Solar AG (“Abakus”)
|
-
|
- | 45 | 125,686 | 3,934 | ||||||||||||||||
Dazzo
Technology Corporation (“Dazzo”)
|
26
|
19,948 | 25 | 34,502 | 1,080 | ||||||||||||||||
Apower
Optronics Corporation (“Apower”)
|
5
|
34,840 |
5
|
33,230 | 1,040 | ||||||||||||||||
Verticil
Electronic Corp. (“Verticil”)
|
30
|
1,323 |
-
|
- | - | ||||||||||||||||
Patentop
Ltd. (“Patentop”)
|
41
|
- | 41 | - | - | ||||||||||||||||
6,651,601 | 9,706,574 | 303,805 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Qisda
|
1,194,908 | 3,685,831 | 115,363 | |||||||||
Nano
|
269,966 | 821,701 | 25,718 | |||||||||
Forhouse
|
293,500 | 4,685,415 | 146,648 | |||||||||
Wellypower
|
227,288 | 610,170 | 19,098 | |||||||||
Entire
|
- | 1,898,530 | 59,422 | |||||||||
1,985,662 | 11,701,647 | 366,249 |
For the year ended December, 31,
2008
|
||||||||||||||||
Beginning
balance
|
Current-
period
change
|
Amortization
or
realization
|
Ending
balance
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Amortizable
assets
|
(31,852 | ) | (508,138 | ) | 14,452 | (525,538 | ) | |||||||||
Goodwill
|
658,954 | - | - | 658,954 | ||||||||||||
Other
assets
|
261,602 | (103,796 | ) | 4,859 | 162,665 | |||||||||||
888,704 | (611,934 | ) | 19,311 | 296,081 |
For the year ended December 31,
2009
|
||||||||||||||||||||
Beginning
balance
|
Current-
period
change
|
Amortization
or
realization
|
Ending balance
|
|||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Amortizable
assets
|
(525,538 | ) | 179,784 | 66,654 | (279,100 | ) | (8,736 | ) | ||||||||||||
Goodwill
|
658,954 | 468,705 | - | 1,127,659 | 35,295 | |||||||||||||||
Other
assets
|
162,665 | (3,836 | ) | (4,500 | ) | 154,329 | 4,830 | |||||||||||||
296,081 | 644,653 | 62,154 | 1,002,888 | 31,389 |
For the years ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Buildings
|
230,051 | 351,979 | 185,281 | 5,799 | ||||||||||||
Machinery
and equipment
|
441,593 | 1,010,719 | 1,021,530 | 31,973 | ||||||||||||
671,644 | 1,362,698 | 1,206,811 | 37,772 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Cost:
|
||||||||||||
Land
|
478,214 | 478,214 | 14,967 | |||||||||
Buildings
|
544,421 | 544,421 | 17,040 | |||||||||
Machinery
and other equipment
|
8,845,770 | 9,826,244 | 307,551 | |||||||||
9,868,405 | 10,848,879 | 339,558 | ||||||||||
Less:
accumulated depreciation
|
(6,377,846 | ) | (8,327,043 | ) | (260,627 | ) | ||||||
3,490,559 | 2,521,836 | 78,931 | ||||||||||
Less:
allowance for devaluation of idle assets
|
(878,239 | ) | (724,678 | ) | (22,682 | ) | ||||||
2,612,320 | 1,797,158 | 56,249 |
For the year ended December 31,
2008
|
||||||||||||||||||||
Beginning
balance
|
Additions
|
Adjustments
|
Amortization
|
Ending
balance
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Goodwill
|
14,020,962 | - | (2,740,367 | ) | - | 11,280,595 | ||||||||||||||
Core
technologies
|
2,144,158 | - | - | (1,225,233 | ) | 918,925 | ||||||||||||||
Technology-related
fees
|
3,389,326 | 765,896 | - | (816,102 | ) | 3,339,120 | ||||||||||||||
19,554,446 | 765,896 | (2,740,367 | ) | (2,041,335 | ) | 15,538,640 |
For the year ended December 31, 2009
|
||||||||||||||||||||
Beginning
balance
|
Additions
|
Adjustments
|
Amortization
|
|||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Goodwill
|
11,280,595 | 184,352 | - | 11,464,947 | 358,840 | |||||||||||||||
Core
technologies
|
918,925 | - | (918,925 | ) | - | - | ||||||||||||||
Technology-related
fees
|
3,339,120 | 268,131 | (778,944 | ) | 2,828,307 | 88,523 | ||||||||||||||
15,538,640 | 452,483 | (1,697,869 | ) | 14,293,254 | 447,363 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Short-term
borrowings
|
4,857,260 | 1,945,227 | 60,883 | |||||||||
Unused
available balance
|
38,760,054 | 28,711,185 | 898,629 |
14.
|
Bonds
Payable
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Secured
bonds payable:
|
||||||||||||
Secured
Bond 1
|
2,500,000 | - | - | |||||||||
Secured
Bond 2
|
6,000,000 | 3,000,000 | 93,897 | |||||||||
Secured
Bond 3
|
5,000,000 | 5,000,000 | 156,495 | |||||||||
Secured
Bond 4
|
7,000,000 | 7,000,000 | 219,092 | |||||||||
Unsecured
bonds payable:
|
||||||||||||
Unsecured
Bond 1
|
- | 17,240 | 539 | |||||||||
Unsecured
Bond 2
|
- | 129,300 | 4,047 | |||||||||
Unsecured
Bond 3
|
- | 124,128 | 3,885 | |||||||||
20,500,000 | 15,270,668 | 477,955 | ||||||||||
Less:
current portion
|
(5,500,000 | ) | (5,615,508 | ) | (175,759 | ) | ||||||
15,000,000 | 9,655,160 | 302,196 | ||||||||||
Interest
payable
|
224,051 | 184,805 | 5,784 | |||||||||
Unused
available balance
|
- | - | - |
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
5,615,508 | 175,759 | ||||||
2011
|
6,098,268 | 190,869 | ||||||
2012
|
3,556,892 | 111,327 | ||||||
15,270,668 | 477,955 |
Secured Bond 1
|
Secured Bond 2
|
Secured Bond 3
|
Secured Bond 4
|
|
Issuer
|
AUO
|
AUO
|
AUO
|
AUO
|
Par
value
|
NT$6,000,000
thousand
|
NT$6,000,000
thousand
|
NT$5,000,000
thousand
|
NT$7,000,000
thousand
|
Issue
date
|
Apr.
23 – 24, 2004
|
Jun.
6 – 13, 2005
|
Mar.
21, 2006
|
Aug.
22, 2008
|
Issue
price
|
At
par value
|
At
par value
|
At
par value
|
At
par value
|
Coupon
rate
|
As
stated below
|
Bond
I: 2.00%
Bond
II: 1.9901%
|
Fixed
rate 1.948%
|
Fixed
rate 2.90%
|
Duration
|
As
stated below
|
Jun.
6, 2005 –
Jun.
13, 2010
|
Mar.
21, 2006 –
Mar.
21, 2011
|
Aug.
22, 2008 –
Aug.
22, 2012
|
Bank
that provided guarantee
|
Mega
International Commercial Bank and eleven other banks
|
Bank
of Taiwan and eight other banks
|
Mizuho
Corporate Bank and six other banks
|
Mizuho
Corporate Bank and three other banks
|
Redemption
|
As
stated below
|
As
stated below
|
As
stated below
|
As
stated below
|
Unsecured Bond 1
|
Unsecured Bond 2
|
Unsecured Bond 3
|
|
Issuer
|
M.
Setek
|
M.
Setek
|
M.
Setek
|
Par
value
|
YEN500,000
thousand
|
YEN900,000
thousand
|
YEN900,000
thousand
|
Issue
date
|
Jan.
31, 2005
|
Apr.
28, 2005
|
Sep.
30, 2005
|
Issue
price
|
At
par value
|
At
par value
|
At
par value
|
Coupon
rate
|
Fixed
rate 1.10%
|
Fixed
rate 0.30%
|
Fixed
rate 1.01%
|
Duration
|
Jan.
31, 2005 – Jan. 29, 2010
|
Apr.
28, 2005 – Apr. 25, 2012
|
Sep.
30, 2005 – Sep. 28, 2012
|
Bank
that provided guarantee
|
None
|
Mizuho
Corporate Bank
|
Mizuho
Corporate Bank
|
Redemption
|
As
stated below
|
As
stated below
|
As
stated below
|
15.
|
Convertible
Bonds Payable
|
December 31, 2008
|
||||||||||||||||
TCB 1
|
TCB 2
|
ECB 3
|
Total
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Convertible
bonds payable
|
5,194,300 | 2,690,900 | 2,427,861 | 10,313,061 | ||||||||||||
Unamortized
discount
|
(28,779 | ) | - | - | (28,779 | ) | ||||||||||
5,165,521 | 2,690,900 | 2,427,861 | 10,284,282 | |||||||||||||
Less:
current portion
|
(5,165,521 | ) | - | (2,427,861 | ) | (7,593,382 | ) | |||||||||
- | 2,690,900 | - | 2,690,900 |
December 31, 2009
|
||||||||||
TCB 2
|
||||||||||
NT$
|
US$
|
|||||||||
(in
thousands)
|
||||||||||
Convertible
bonds payable- current portion
|
2,690,900 | 84,222 |
Par
value
|
NT$10,500,000
thousand
|
Original
issue date
|
April
22, 2004
|
Original
issue price
|
102.5%
of par value
|
Coupon
rate
|
0%
|
Maturity
date
|
April
21, 2009
|
Collateral
|
None
|
Conversion
method
|
Bondholders
may convert bonds into AUO’s common shares at any time between May 22,
2004, and April 11, 2009.
|
Conversion
price
|
NT$70.49,
as adjusted, effective October 1, 2006, as a result of merger with
QDI. The conversion price was adjusted to NT$68.61 and NT$62.55
as a result of earnings distributions on August 10, 2007 and July 31,
2008, respectively.
|
Put
right
|
No
|
Redemption
terms
|
(a)
Unless previously redeemed, purchased and cancelled, or converted, bonds
will be redeemed on maturity at par.
(b)
Effective from the first anniversary of issuance to 40 days before
maturity, AUO may redeem the outstanding bonds at par if the closing price
of its common shares on the Taiwan Stock Exchange is at least 150% of the
conversion price for 30 consecutive trading days.
(c)
Effective from the first anniversary of issuance to 40 days before
maturity, AUO may redeem the outstanding bonds at par if the total amount
of outstanding bonds is less than NT$1,050,000
thousand.
|
Par
value
|
NT$6,000,000
thousand
|
Original
issue date
|
July
18, 2005
|
Original
issue price
|
At
par value
|
Coupon
rate
|
0%
|
Maturity
date
|
July
18, 2010
|
Collateral
|
None
|
Conversion
method
|
Bondholders
may convert bonds into AUO’s common shares at any time between August 18,
2005, and July 8, 2010.
|
Conversion
price
|
NT$44.10,
as adjusted, effective October 1, 2006, as a result of merger with
QDI. The conversion price was adjusted to NT$42.92, NT$38.21
and NT$36.82 as a result of earnings distributions on August 10, 2007,
July 31, 2008, and August 18, 2009, respectively.
|
Put
right
|
Bondholders
have the right to request AUO to repurchase bonds on July 18, 2008, at
par.
|
Redemption
terms
|
(a)
Unless previously redeemed, purchased and cancelled, or converted, bonds
will be redeemed on maturity at par.
(b)
Effective from the first anniversary of issuance to 40 days before
maturity, AUO may redeem the outstanding bonds at par if the closing price
of its common shares on the Taiwan Stock Exchange is at least 150% of the
conversion price for 30 consecutive trading days.
(c)
Effective from the first anniversary of issuance to 40 days before
maturity, AUO may redeem the outstanding bonds at par if the total amount
of outstanding bonds is less than NT$600,000
thousand.
|
Par
value
|
US$294,500
thousand
|
Original
issue date
|
November
26, 2004
|
Original
issue price
|
At
par value
|
Coupon
rate
|
0%
|
Maturity
date
|
November
26, 2009
|
Collateral
|
None
|
Conversion
method
|
Bondholders
may, at any time from 41 days after issuance to the 10 days before
maturity, convert bonds into AUO’s common shares or certificates
exchangeable for common stock.
|
Conversion
price
|
NT$52.54,
as adjusted, effective October 1, 2006, as a result of merger with
QDI. The conversion price was adjusted to NT$51.13, NT$47.30
and NT$45.58 as a result of earnings distributions on August 10, 2007,
July 31, 2008, and August 18, 2009, respectively. For purposes
of determining the number of converted shares, a fixed exchange rate of
US$1=NT$32.57 is used.
|
Put
right
|
Bondholders
have the right to request AUO to repurchase bonds on January 26, 2007, at
par.
|
Redemption
terms
|
(a)
Unless previously redeemed, purchased and cancelled, or converted, bonds
will be redeemed on maturity at par.
(b)
Effective from the 26th month of issuance, AUO may, at any time after
January 26, 2007, redeem the bonds at par, in whole or in part, if the
closing price (translated into U.S. dollars at the prevailing rate) of its
common shares on the Taiwan Stock Exchange is at least 125% of the
conversion price (translated into U.S. dollars at the rate of NT$32.57 =
US$1) for 30 consecutive trading days.
(c)
AUO may redeem the total amount of outstanding bonds in whole at par in
the event that 95% of the bonds have been previously redeemed, converted,
or purchased and cancelled.
|
16.
|
Long-term
Borrowings
|
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Bank
of Taiwan
|
As
stated below, see note (a)
|
From
Dec. 18, 2004, to Dec. 18, 2011, NT$49,000 million and US$150 million,
repayable in 9 semi-annual installments starting from Dec.
2007.
|
35,949,387 | 23,910,912 | 748,385 | |||||||||||
Bank
of Taiwan
|
As
stated below, see note (a)
|
From
Dec. 29, 2005, to Dec. 29, 2012, NT$37,000 million, repayable in 9
semi-annual installments starting from Dec. 2008.
|
32,885,600 | 24,664,200 | 771,962 | |||||||||||
Mega
International Commercial Bank (see note (a) below)
|
As
stated below, see note (a)
|
From
Jul. 14, 2006, to Jul. 14, 2013, NT$27,000 million, repayable in 10
semi-annual installments starting from Jan. 2009.
|
27,000,000 | 21,600,000 | 676,056 |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Bank
of Taiwan
|
As
stated below, see note (a)
|
From
Sep. 13, 2006, to Sep. 13, 2014, NT$48,000 million, repayable in 9
semi-annual installments starting from Sep. 2010.
|
10,000,000 | 47,750,000 | 1,494,523 | |||||||||||
Industrial
Bank of Taiwan
(see
note (a) below)
|
As
stated below, see note (b)
|
From
Aug. 29, 2006, to Aug. 29, 2010, NT$1,000 million, repayable in 5
semi-annual installments starting from Aug. 2008.
|
825,000 | 475,000 | 14,867 | |||||||||||
Industrial
Bank of Taiwan
(see
note (a) below)
|
As
stated below, see note (b)
|
From
Nov. 17, 2005, to Nov. 17, 2009, NT$500 million, repayable in 6
semi-annual installments starting from May 2007.
|
200,000 | - | - | |||||||||||
Bank
of Taiwan
|
As
stated below, see note (a)
|
From
Dec. 29, 2009, to Dec. 29, 2016, NT$58,000 million, repayable in 9
semi-annual installments starting from Oct. 2012.
|
- | 15,000,000 | 469,484 | |||||||||||
ABN-AMRO
Bank, Shanghai branch (Phase A)
|
As
stated below, see note (a)
|
From
Aug. 2, 2006, to Aug. 2, 2013, RMB$1,400 million, repayable in 8
semi-annual installments starting from Feb. 2010.
|
3,507,358 | 5,705,738 | 178,583 | |||||||||||
ABN-AMRO
Bank, Shanghai branch (Phase B)
|
As
stated below, see note (a)
|
From Aug. 2, 2006, to Aug. 2,
2013, RMB$600 million. In May 2009, paid off RMB$200 million,
the rest is repayable in 6 semi-annual installments starting from February
2011, the first repayable installments is RMB$40 million, RMB$60
million for the other 4 installments, with remaining balance payable at
final installment.
|
2,862,073 | 1,876,960 | 58,747 |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
ABN-AMRO
Bank, Shanghai branch
|
As
stated below, see note (a)
|
From
Aug. 2, 2006, to Aug. 2, 2013, US$75 million, repayable in 9 semi-annual
installments starting from Aug. 2009.
|
2,398,190 | 2,079,993 | 65,102 | |||||||||||
ABN-AMRO
Bank, Shanghai branch
|
As
stated below, see note (a)
|
From
Aug. 2, 2006, to Aug. 2, 2013, RMB$800 million, repayable in 9 semi-annual
installments starting from Aug. 2009.
|
3,734,765 | 999,053 | 31,269 | |||||||||||
Citibank,
Shanghai branch
(Syndicated
loan II)
|
As
stated below, see note (a)
|
From
Nov. 30, 2004, to Nov. 30, 2009, RMB$830 million, repayable in 4
semi-annual installments starting from May 2008. Early repayment in full
was made in Mar. 2009.
|
664,819 | - | - | |||||||||||
Citibank,
Shanghai branch
(Syndicated
loan II)
|
As
stated below, see note (a)
|
From
Dec. 2, 2004, to Dec. 2, 2009, US$54 million, repayable in 6 semi-annual
installments starting from Jun. 2007. Early repayment in full was made in
Oct. 2009.
|
591,075 | - | - | |||||||||||
Standard
Chartered Bank (China) Limited, Shanghai branch
|
As
stated below, see note (a)
|
From
Nov. 27, 2007, to Nov. 27, 2012, US$42 million, repayable in 5 semi-annual
installments starting from Nov. 2010.
|
1,379,176 | 1,345,707 | 42,119 | |||||||||||
Agriculture
Bank of China, Shanghai Songjiang branch
|
As
stated below, see note (a)
|
From
Dec. 29, 2006, to Oct. 16, 2009, RMB$771 million, repayable starting from
Jan. 2009, each drawdown repayable in two years. Early repayment in full
was made in Oct. 2009.
|
1,316,967 | - | - | |||||||||||
Agriculture
Bank of China, Shanghai Songjiang branch
|
As
stated below, see note (a)
|
From
Sep. 11, 2008, to Sep. 10, 2009, RMB$771 million, repayable starting from
Nov. 2010, each drawdown repayable in two years. Early repayment in full
was made in Dec. 2009.
|
816,782 | - | - |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Agriculture
Bank of China, Shanghai Songjiang branch
|
As
stated below, see note (a)
|
From
Dec. 3, 2008, to Oct. 16, 2009, RMB$235 million, repayable starting from
Dec. 2010, each drawdown repayable in two years.
|
- | 1,102,714 | 34,514 | |||||||||||
Citibank,
Shanghai branch
|
As
stated below, see note (a)
|
From
Mar. 30, 2005, to Mar. 30, 2010, US$80 million, repayable in 7 semi-annual
installments starting from Mar. 2007. Early repayment in full was made in
May 2009.
|
401,087 | - | - | |||||||||||
Citibank,
Shanghai branch
|
As
stated below, see note (a)
|
From
Mar. 30, 2005, to Mar. 30, 2010, RMB$249 million, repayable in 7
semi-annual installments starting from Mar. 2007. Early repayment in full
was made in Mar. 2009.
|
256,360 | - | - | |||||||||||
Standard
Chartered Bank, Shanghai branch
|
As
stated below, see note (a)
|
From
Nov. 27, 2007, to Nov. 27, 2012, RMB$135 million, repayable in 5
semi-annual installments starting from Nov. 2010.
|
- | 281,544 | 8,812 | |||||||||||
Agricultural
Bank
of
China, Xiamen branch
|
As
stated below, see note (a)
|
From
Apr. 3, 2006, to Apr. 3, 2012, US$20 million, 25% repayable in Apr. 2010,
50% in Apr. 2011, and the remaining principal due in Apr.
2012.
|
600,575 | 422,316 | 13,218 | |||||||||||
Bank
of China, Xiamen branch
|
As
stated below, see note (a)
|
From
Apr. 28, 2007, to Apr. 28, 2012, RMB$80 million, 25% repayable in Dec.
2010, 25% in Dec. 2011 and 50% in Apr. 2012.
|
384,368 | 375,392 | 11,749 |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Bank
of Communications, Xiamen branch
|
As
stated below, see note (a)
|
From
Dec. 20, 2006, to Dec. 20, 2009, RMB$50 million, 30% payable in Mar. 2010
and 10% payable in Apr. 2010, with the remaining principal payable in full
in December 2010. Early repayment in full was made in Sep.
2009.
|
240,230 | - | - | |||||||||||
Bank
of Communications, Xiamen branch
|
As
stated below, see note (a)
|
From
Aug. 18, 2008, to Aug. 18, 2012, RMB$100 million, repayable in 6
semi-annual installments starting from Feb. 2010, repayable in semi-annual
installments of RMB15 million for the first 5 installments, with the
remaining balance payable at final installment. Early repayment in full
was made in Oct. 2009.
|
144,138 | - | - | |||||||||||
Agricultural
Bank
of
China, Xiamen branch
|
As
stated below, see note (a)
|
From
Feb. 22, 2008, to Feb. 21, 2011, US$5 million, 3-year term, one-time
repayment upon maturity. Early repayment in full was made in Nov.
2009.
|
144,138 | - | - | |||||||||||
Bank
of China (Suzhou)
|
As
stated below, see note (a)
|
From
Feb. 12, 2007, to Feb. 12, 2012, RMB$80 million, 25% repayable in Feb.
2010, 25% in Feb. 2011 and 50% in Feb. 2012. Early repayment in full was
made in Aug. 2009.
|
384,368 | - | - | |||||||||||
China
Construction Bank (Suzhou)
|
As
stated below, see note (a)
|
From
Aug. 10, 2006, to Aug. 9, 2011, RMB$71 million, 5-year term, one-time
repayment upon maturity. Early repayment in full was made in Feb.
2009.
|
341,127 | - | - |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
China
Construction Bank (Suzhou)
|
As
stated below, see note (a)
|
From
Aug. 28, 2007, to Aug. 23, 2010, US$1.5 million, 3-year term, one-time
repayment upon maturity. Early repayment in full was made in Sep.
2009.
|
49,256 | - | - | |||||||||||
China
Construction Bank (Suzhou)
|
As
stated below, see note (a)
|
From
Aug. 10, 2006, to Aug. 9, 2011, US$1 million, 5-year term, one-time
repayment upon maturity. Early repayment in full was made in Sep.
2009.
|
32,838 | - | - | |||||||||||
China
Construction Bank (Suzhou)
|
As
stated below, see note (a)
|
From
Jul. 24, 2007, to Jul. 23, 2010, US$1 million, 3-year term, one-time
repayment upon maturity. Early repayment in full was made in Sep.
2009
|
32,837 | - | - | |||||||||||
First
Commercial Bank
|
As
stated below, see note (a)
|
From
Aug. 25, 2009, to Aug. 25, 2011, NT$2,000 million, repayable in 5
semi-annual installments starting from Aug. 2012, 12.5% payable at each of
the first 4 installments, with the remaining balance payable at final
installment.
|
- | 820,000 | 25,665 | |||||||||||
China
Construction Bank, Xiamen branch
|
As
stated below, see note (a)
|
From
Nov. 24, 2009, to Nov. 23, 2016, RMB$200 million, 20% principal repayable
in Nov. 2013, 2014 and 2015, and 40% in Nov. 2016.
|
- | 126,695 | 3,965 | |||||||||||
Agriculture
Bank of China, Xiamen branch
|
As
stated below, see note (a)
|
From
Dec. 24, 2009, to Dec. 23, 2014, US$20 million, repayable in 6 semi-annual
installments starting from Dec. 2011, the first three installments of
US$2.5 million payable until Dec. 2012, following two installments of
US$2.5 million until Dec. 2013, and the remaining principal due in Dec.
2014.
|
- | 46,924 | 1,469 |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Mizuho
Corporate Bank
|
As
stated below, see note (a)
|
From
Dec. 26, 2005, to Dec. 25, 2010, YEN2,000 million, repayable in 16
quarterly installments starting from Mar. 2007.
|
- | 172,400 | 5,396 | |||||||||||
Mizuho
Corporate Bank
|
As
stated below, see note (a)
|
From
Mar. 27, 2006, to Feb. 28, 2013, YEN8,000 million, repayable in 20
quarterly installments starting from May 2008.
|
- | 1,792,960 | 56,118 | |||||||||||
Bank
of Tokyo – Mitsubishi UFJ
|
As
stated below, see note (a)
|
From
Mar. 27, 2006, to Feb. 28, 2013, YEN7,000 million, repayable in 20
quarterly installments starting from May 2008.
|
- | 1,568,840 | 49,103 | |||||||||||
Shoko
Chukin Bank
|
As
stated below, see note (b)
|
From
Apr. 2, 2007, to Jan. 31, 2012, YEN1,000 million, repayable in 18
quarterly installments starting from Oct. 2007.
|
- | 174,124 | 5,450 | |||||||||||
Shoko
Chukin Bank
|
As
stated below, see note (b)
|
From
Sep. 28, 2007, to Aug. 28, 2012, YEN330 million, repayable in 55 monthly
installments starting from Feb. 2008.
|
- | 68,270 | 2,137 | |||||||||||
Resona
Bank
|
As
stated below, see note (b)
|
From
Mar. 8, 2007, to Feb. 28, 2012, YEN500 million, repayable in 20 quarterly
installments starting from May 2007.
|
- | 77,580 | 2,428 | |||||||||||
Development
Bank
of
Japan
|
As
stated below, see note (a)
|
From
Feb. 28, 2006, to Feb. 28, 2013, YEN650 million, repayable in 25 quarterly
installments starting from Feb. 2007.
|
- | 116,542 | 3,648 |
Bank
or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key
terms
|
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in
thousands)
|
||||||||||||||||
Development
Bank
of
Japan
|
As
stated below, see note (a)
|
From
Feb. 28, 2006, to Feb. 28, 2013, YEN550 million, repayable in 25 quarterly
installments starting from Feb. 2007.
|
- | 98,613 | 3,086 | |||||||||||
Bank
SinoPac
|
As
stated below, see note (a)
|
From
Dec. 1, 2009, to Dec. 9, 2014, YEN3,000 million, repayable in 16 quarterly
installments starting from Mar. 2010.
|
- | 1,034,400 | 32,376 | |||||||||||
Taipei
Fubon Bank
|
As
stated below, see note (a)
|
From
Dec. 10, 2009, to Jan. 30, 2014, YEN3,000 million, repayable in 16
quarterly installments starting from Mar. 2010.
|
- | 1,034,400 | 32,376 | |||||||||||
Mizuho
Corporate Bank
|
As
stated below, see note (a)
|
From
Dec. 25, 2009, to Dec. 25, 2014, YEN21, 000 million, repayable in 16
quarterly installments starting from Mar. 2010.
|
- |
7,240,801
|
226,629
|
|||||||||||
127,142,514 | 161,962,078 | 5,069,236 | ||||||||||||||
Less:
current portion
|
(30,491,872 | ) | (38,537,926 | ) | (1,206,195 | ) | ||||||||||
96,650,642 | 123,424,152 | 3,863,041 | ||||||||||||||
Unused
available balance
|
103,818,007 | 85,213,004 | 2,667,074 | |||||||||||||
Interest
rate range
|
1.45%-7.74% | 0.63%-5.76% |
Note
(a):
|
The
loan is intended to fund the purchase of machinery, equipment and
building.
|
Note
(b):
|
The
loan is intended for operational
use.
|
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
38,537,926 | 1,206,195 | ||||||
2011
|
42,431,696 | 1,328,066 | ||||||
2012
|
32,318,648 | 1,011,538 | ||||||
2013
|
25,060,109 | 784,354 | ||||||
Thereafter
|
23,613,699 | 739,083 | ||||||
Total
|
161,962,078 | 5,069,236 |
17.
|
Retirement
Plans
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Benefit
obligation:
|
||||||||||||
Vested
benefit obligation
|
- | (7,749 | ) | (242 | ) | |||||||
Non-vested
benefit obligation
|
(490,196 | ) | (580,847 | ) | (18,180 | ) | ||||||
Accumulated
benefit obligation
|
(490,196 | ) | (588,596 | ) | (18,422 | ) | ||||||
Additional
benefits based on future salary increase
|
(567,180 | ) | (676,886 | ) | (21,186 | ) | ||||||
Projected
benefit obligation
|
(1,057,376 | ) | (1,265,482 | ) | (39,608 | ) | ||||||
Fair
value of plan assets
|
1,111,106 | 1,254,680 | 39,270 | |||||||||
Funded
status
|
53,730 | (10,802 | ) | (338 | ) | |||||||
Unrecognized
net transition obligation
|
8,506 | 7,547 | 236 | |||||||||
Unrecognized
pension loss
|
223,637 | 393,088 | 12,303 | |||||||||
Minimum
pension liability
|
(49,761 | ) | - | - | ||||||||
Prepaid
pension assets
|
236,112 | 389,833 | 12,201 |
December
31,
|
||||||||
2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Benefit
obligation:
|
||||||||
Vested
benefit obligation
|
(131,959 | ) | (4,130 | ) | ||||
Non-vested
benefit obligation
|
(13,122 | ) | (411 | ) | ||||
Accumulated
benefit obligation
|
(145,081 | ) | (4,541 | ) | ||||
Additional
benefits based on future salary increase
|
(19,584 | ) | (613 | ) | ||||
Projected
benefit obligation
|
(164,665 | ) | (5,154 | ) | ||||
Fair
value of plan assets
|
31,871 | 998 | ||||||
Funded
status
|
(132,794 | ) | (4,156 | ) | ||||
Unrecognized
net transition obligation
|
9,109 | 285 | ||||||
Pension
liabilities
|
(123,685 | ) | (3,871 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
|
2008
|
2009
|
|||||||||||||
NT$
|
NT$
|
|
NT$
|
US$
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Defined
benefit pension plan:
|
||||||||||||||||
Service
cost
|
8,949 | 8,116 | (958 | ) | (30 | ) | ||||||||||
Interest
cost
|
26,445 | 29,547 | 23,793 | 745 | ||||||||||||
Expected
return on plan assets
|
(21,760 | ) | (28,561 | ) | (27,669 | ) | (866 | ) | ||||||||
Amortization
|
13,184 | 6,907 | 9,406 | 294 | ||||||||||||
Gain
on curtailment
|
- | (1,630 | ) | - | - | |||||||||||
Net periodic pension
cost
|
26,818 | 14,379 | 4,572 | 143 |
December 31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
Discount
rate
|
3.00 | % | 2.50 | % | 2.25 | % | ||||||
Rate
of increase in future compensation levels
|
3.50 | % | 2.50% – 3.00 | % | 3.00 | % | ||||||
Expected
long-term rate of return on plan assets
|
3.00 | % | 2.50 | % | 2.00% – 2.25 | % |
December
31,
|
||||
2009
|
||||
Discount
rate
|
2.00 | % | ||
Rate
of increase in future compensation levels
|
1.20 | % | ||
Expected
long-term rate of return on plan assets
|
0.75 | % |
18.
|
Capital
Lease Liability
|
December 31,
|
||||||||
2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Capital lease
liability
|
789,274 | 24,703 | ||||||
Less: current
portion
|
(194,685 | ) | (6,093 | ) | ||||
594,589 | 18,610 |
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
194,685 | 6,093 | ||||||
2011
|
175,273 | 5,486 | ||||||
2012
|
181,293 | 5,674 | ||||||
2013
|
185,058 | 5,792 | ||||||
Thereafter
|
52,965 | 1,658 | ||||||
Total
|
789,274 | 24,703 |
19.
|
Stockholders’
Equity
|
2007
|
2008
|
|||||||
NT$
|
||||||||
(in
thousands, except for per share data)
|
||||||||
Employee
bonuses-stock
|
2,437,247 | 2,009,768 | ||||||
Employee
bonuses-cash
|
1,624,832 | 861,329 | ||||||
Remuneration
to directors
|
138,604 | 57,422 | ||||||
4,200,683 | 2,928,519 |
Plan
|
Issuing
date
|
Units
issued
|
Term
of
grant
|
Option
exercising
term
|
|||||
2002
ESO Plan
|
Aug.
8, 2002
|
1,861 |
Aug.
8, 2002 – Aug.
7, 2008
|
Aug.
8, 2004 – Aug.
7, 2008
|
|||||
2003
ESO Plan
|
Dec.
31, 2003
|
5,631 |
Dec.
31, 2003 – Dec.
30, 2009
|
Dec.
31, 2005 – Dec.
30, 2009
|
Unit
|
Weighted-average
exercise price
|
|||||||
(in
thousands)
|
NT$
|
|||||||
Balance
at January 1, 2007
|
7,146 | 48.30 | ||||||
Units
exercised
|
(2,796 | ) | 45.30 | |||||
Units
increased due to issuance of stock dividends
|
142 | 47.90 | ||||||
Units
cancelled
|
(798 | ) | 50.60 | |||||
Balance
at December 31, 2007
|
3,694 | 48.10 | ||||||
Units
exercised
|
(621 | ) | 42.90 | |||||
Units
increased due to issuance of stock dividends
|
250 | 45.20 | ||||||
Units
cancelled
|
(526 | ) | 42.50 | |||||
Balance
at December 31, 2008
|
2,797 | 46.00 | ||||||
Units
exercised
|
- | - | ||||||
Units
increased due to issuance of stock dividends
|
102 | 44.30 | ||||||
Units
cancelled
|
(2,899 | ) | 45.90 | |||||
Balance
at December 31, 2009
|
- | - |
2002 ESO Plan
|
2003 ESO Plan
|
|||||||
Dividend
yield
|
2.4% | 2.4% | ||||||
Expected
volatility
|
40.6% | 43.7% | ||||||
Risk-free
interest rate
|
1.7% | 1.7% | ||||||
Expected
continuing period
|
0.9
year
|
1.9
years
|
20.
|
Income
Taxes
|
|
(a)
|
Pursuant
to the Act for Establishment and Administration of Science Parks and the
Statute for Upgrading Industries, AUO (including the extinguished Unipac
and QDI), Toppan CFI, and Lextar are entitled to elect appropriate tax
incentives, such as tax exemption and investment tax credits for
shareholders, based on initial investments and subsequent capital
increases for the purpose of purchasing qualified TFT-LCD, color filter
and LED production equipment and
machinery.
|
Year
of
investment
|
Tax incentive chosen
|
Tax exemption period
|
||
AUO:
|
||||
1999
|
Exemption
from corporate income taxes for four years
|
Jan.
1, 2005 – Dec. 31, 2008
|
||
1999,
2000, 2001
|
Exemption
from corporate income taxes for five years
|
Jan.
1, 2005 – Dec. 31, 2009
|
||
2001,
2002, 2003
|
Exemption
from corporate income taxes for five years
|
Jan.
1, 2006 – Dec. 31, 2010
|
||
2002
|
Exemption
from corporate income taxes for five years
|
Jan.
1, 2007 – Dec. 31, 2011
|
||
2003
|
Exemption
from corporate income taxes for five years
|
Jan.
1, 2008 – Dec. 31, 2012
|
||
2004
|
Exemption
from corporate income taxes for five years
|
Jun.
25, 2007 – Jun. 24, 2012
|
||
2004
|
Exemption
from corporate income taxes for five years
|
Sep.
29, 2007 – Sep. 28, 2012
|
||
2004
|
Exemption
from corporate income taxes for five years
|
Nov.
3, 2007 – Nov. 2, 2012
|
||
2005,
2006, 2007, 2008
|
Exemption
from corporate income taxes for five years
|
Pending
designation
|
||
Toppan
CFI:
|
||||
2001
|
Exemption
from corporate income taxes for five years
|
Jan.
1, 2004 – Dec. 31, 2008
|
||
2002
|
Exemption
from corporate income taxes for five years
|
Jul.
31, 2004 – Jul. 30, 2009
|
||
2004
|
Exemption
from corporate income taxes for five years
|
Jun.
30, 2005 – Jun. 29, 2010
|
||
Lextar:
|
||||
2008
|
Exemption
from corporate income taxes for five years
|
Pending
designation
|
|
(b)
|
The
components of income tax expense (benefit) were as
follows:
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Current
income tax expense
|
4,475,124 | 2,205,215 | 684,697 | 21,430 | ||||||||||||
Deferred
income tax expense (benefit)
|
(2,387,214 | ) | 2,423,851 | (707,284 | ) | (22,137 | ) | |||||||||
2,087,910 | 4,629,066 | (22,587 | ) | (707 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Expected
income tax expense (benefit)
|
14,640,961 | 6,567,728 | (6,816,850 | ) | (213,360 | ) | ||||||||||
Tax
exemption
|
(6,085,443 | ) | (2,975,267 | ) | - | - | ||||||||||
Decrease
(increase) in investment tax credits, net of expired
portion
|
(1,654,487 | ) | (5,162,128 | ) | 3,387,963 | 106,040 | ||||||||||
Tax
on undistributed retained earnings
|
431,373 | 2,297,061 | 1,404,104 | 43,947 | ||||||||||||
Increase
(decrease) in valuation allowance
|
(5,082,677 | ) | 3,374,806 | 1,007,152 | 31,523 | |||||||||||
Effect
of changes in statutory income tax rate
|
- | - | 1,872,338 | 58,602 | ||||||||||||
Permanent
differences
|
(459,923 | ) | 327,415 | (380,862 | ) | (11,921 | ) | |||||||||
Others
|
298,106 | 199,451 | (496,432 | ) | (15,538 | ) | ||||||||||
Income
tax expense (benefit)
|
2,087,910 | 4,629,066 | (22,587 | ) | (707 | ) |
|
(c)
|
The
components of deferred income tax assets (liabilities) were as
follows:
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Current:
|
||||||||||||
Investment
tax credits
|
9,527,886 | 5,545,151 | 173,557 | |||||||||
Timing
differences of revenue recognition between accounting and taxable
income
|
538,820 | 443,136 | 13,870 | |||||||||
Inventories
devaluation
|
2,078,665 | 1,057,786 | 33,107 | |||||||||
Product
warranty
|
471,338 | 458,117 | 14,339 | |||||||||
Unrealized
losses and expenses
|
1,154,627 | 2,658,964 | 83,223 | |||||||||
Others
|
282,110 | 298,108 | 9,330 | |||||||||
14,053,446 | 10,461,262 | 327,426 | ||||||||||
Valuation
allowance
|
(8,673,006 | ) | (5,261,997 | ) | (164,695 | ) | ||||||
Net
deferred tax assets—current
|
5,380,440 | 5,199,265 | 162,731 | |||||||||
Noncurrent:
|
||||||||||||
Investment
tax credits
|
13,015,255 | 12,212,776 | 382,247 | |||||||||
Net
operating loss carryforwards
|
256,900 | 6,685,747 | 209,257 | |||||||||
Foreign
investment gain under the equity method
|
(1,035,489 | ) | (1,864,459 | ) | (58,356 | ) | ||||||
Goodwill
|
(765,906 | ) | (824,776 | ) | (25,815 | ) | ||||||
Others
|
(339,953 | ) | 1,242,995 | 38,904 | ||||||||
11,130,807 | 17,452,283 | 546,237 | ||||||||||
Valuation
allowance
|
(9,125,425 | ) | (14,398,964 | ) | (450,671 | ) | ||||||
Net
deferred tax assets—noncurrent
|
2,005,382 | 3,053,319 | 95,566 | |||||||||
Total
gross deferred tax assets
|
28,098,244 | 31,062,821 | 972,232 | |||||||||
Total
gross deferred tax liabilities
|
(2,913,991 | ) | (3,149,276 | ) | (98,569 | ) | ||||||
Total
valuation allowance
|
(17,798,431 | ) | (19,660,961 | ) | (615,366 | ) | ||||||
7,385,822 | 8,252,584 | 258,297 |
|
(d)
|
Investment
tax credits
|
Year of assessment
|
Unused tax credits
|
Expiration year
|
|||||||
NT$
|
US$
|
||||||||
(in
thousands)
|
|||||||||
2006
|
5,545,151 | 173,557 |
2010
|
||||||
2007
|
2,331,811 | 72,983 |
2011
|
||||||
2008
|
7,521,167 | 235,405 |
2012
|
||||||
2009(estimated)
|
2,359,798 | 73,859 |
2013
|
||||||
17,757,927 | 555,804 |
|
(e)
|
Net
operating loss carryforwards
|
Year of assessment
|
Unused NOL
|
Expiration year
|
|||||||
NT$
|
US$
|
||||||||
(in
thousands)
|
|||||||||
2006
|
783,130 | 24,511 |
2016
|
||||||
2007
|
193,740 | 6,064 |
2017
|
||||||
2008
|
64,150 | 2,008 |
2018
|
||||||
2009
(estimated) - Domestic subsidiaries
|
29,037,247 | 908,834 |
2019
|
||||||
2009
(estimated) - Foreign subsidiaries
|
1,665,244 | 52,120 |
2013
|
||||||
31,743,511 | 993,537 |
(f)
|
Assessments
by the tax authorities
|
(g)
|
The
Enterprise Income Tax Law of the People’s Republic of China (the “EITL”),
as approved by related government authorities on March 16, 2007, is
effective from January 1, 2008. Prior to 2008 and the
promulgation of the EITL, income tax rates applicable to the Company’s
subsidiary companies located in Mainland China ranged from 0% to
33%. Beginning on January 1, 2008, income tax rates range from
0% to 25%. The Company remeasured deferred tax assets and
liabilities as of December 31, 2007, in accordance with the EITL, and
concluded that the adoption of the EITL did not have a material impact on
the Company’s consolidated financial
statements.
|
(h)
|
The
integrated income tax system
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Unappropriated
earnings:
|
||||||||||||
Earned
in 1998 and thereafter
|
76,912,630 | 40,863,051 | 1,278,969 | |||||||||
ICA
balance
|
4,487,600 | 5,369,104 | 168,047 |
For the year ended December
31,
|
||||||||
2008
|
2009
|
|||||||
(actual)
|
(estimated)
|
|||||||
Creditable
ratio for earnings distribution to Republic of China resident
stockholders
|
7.71% | 13.13% |
21.
|
Earnings
(loss) per Share (“(L)EPS”)
|
|
Basic
(L)EPS for the years ended December 31, 2007, 2008 and 2009 were computed
as follows:
|
For the year ended December
31,
|
||||||||||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||||||||||
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
|||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||||||||
(in
thousands, except for per share data)
|
||||||||||||||||||||||||
Net
income (loss) attributable to equity holders of the parent
company:
|
||||||||||||||||||||||||
Net
income (loss)
|
58,443,002 | 56,417,766 | 25,903,996 | 21,267,386 | (26,668,094 | ) | (26,769,335 | ) | ||||||||||||||||
Weighted-average
number of shares outstanding during the year:
|
||||||||||||||||||||||||
Shares
of common stock at beginning of year
|
7,573,403 | 7,573,403 | 7,865,201 | 7,865,201 | 8,505,720 | 8,505,720 | ||||||||||||||||||
Employee
stock options
|
1,138 | 1,138 | 419 | 419 | - | - | ||||||||||||||||||
Convertible
bonds
|
26,126 | 26,126 | 2,398 | 2,398 | - | - | ||||||||||||||||||
Issuance
of shareholders’ stock dividends and employee stock bonus
|
208,831 | 208,831 | 637,136 | 637,136 | 291,005 | 291,005 | ||||||||||||||||||
7,809,498 | 7,809,498 | 8,505,154 | 8,505,154 | 8,796,725 | 8,796,725 | |||||||||||||||||||
Basic
(L)EPS (NT$):
|
||||||||||||||||||||||||
Basic
(L)EPS—net income (loss)
|
7.48 | 7.22 | 3.05 | 2.50 | (3.03 | ) | (3.04 | ) | ||||||||||||||||
Weighted-average
number of shares outstanding during the year—retroactively
adjusted
|
8,695,122 | 8,695,122 | 8,760,309 | 8,760,309 | ||||||||||||||||||||
Basic
EPS—retroactively adjusted (NT$):
|
||||||||||||||||||||||||
Basic
EPS—net income—retroactively adjusted
|
6.72 | 6.49 | 2.96 | 2.43 |
|
Diluted
EPS for years 2007, 2008 and 2009 were computed as
follows:
|
For the year ended December
31,
|
||||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||||
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands, except for per share data)
|
||||||||||||||||||
Net
income attributable to equity holders of the parent company (including the
effect of dilutive potential common stock)
|
||||||||||||||||||
Net
income attributable to equity holders of the parent
company
|
58,443,002 | 56,417,766 | 25,903,996 | 21,267,386 | ||||||||||||||
Effects
of potential common stock:
|
||||||||||||||||||
Convertible
bonds payable
|
(300,056 | ) | (225,042 | ) | 53,055 | 39,792 | ||||||||||||
58,142,946 | 56,192,724 | 25,957,051 | 21,307,178 | |||||||||||||||
Weighted-average
number of shares outstanding during the year (including the effect of
dilutive potential common stock):
|
||||||||||||||||||
Weighted-average
number of shares outstanding during the
year
|
7,809,498 | 7,809,498 | 8,505,154 | 8,505,154 | ||||||||||||||
Effects
of potential common stock:
|
||||||||||||||||||
Convertible
bonds payable
|
377,304 | 377,304 | 204,708 | 204,708 | ||||||||||||||
Employee
bonuses
|
- | - | 135,795 | 135,795 | ||||||||||||||
Employee
stock options
|
547 | 547 | 104 | 104 | ||||||||||||||
8,187,349 | 8,187,349 | 8,845,761 | 8,845,761 | |||||||||||||||
Diluted
EPS (NT$)
|
7.10 | 6.86 | 2.93 | 2.41 | ||||||||||||||
Weighted-average
number of shares outstanding—retroactively adjusted (including the effect
of dilutive potential common stock)
|
9,115,822 | 9,115,822 | 9,111,134 | 9,111,134 | ||||||||||||||
Diluted
EPS—retroactively adjusted (NT$):
|
||||||||||||||||||
Diluted
EPS—net income—retroactively adjusted
|
6.38 | 6.16 | 2.85 | 2.34 |
22.
|
Additional
Disclosure on Financial Instruments
|
(a)
|
Fair
value information
|
December 31, 2008
|
||||||||
Carrying amount
|
Fair value
|
|||||||
NT$
|
NT$
|
|||||||
(in
thousands)
|
||||||||
Financial
assets:
|
||||||||
Cash
and cash equivalents
|
83,434,697 | 83,434,697 | ||||||
Accounts
receivable (including related parties)
|
23,899,077 | 23,899,077 | ||||||
Other
financial assets—current
|
3,082,294 | 3,082,294 | ||||||
Foreign
currency forward contracts
|
1,067,531 | 1,067,531 | ||||||
Available-for-sale
financial assets—current
|
470,301 | 470,301 | ||||||
Available-for-sale
financial assets—noncurrent
|
595,750 | 595,750 | ||||||
Financial
assets carried at cost—noncurrent
|
583,197 |
See
(b) (3)
|
||||||
Interest
rate swap contracts
|
5,398 | 5,398 | ||||||
Refundable
deposits
|
215,869 | 215,869 | ||||||
Restricted
cash in bank
|
25,501 | 25,501 |
December 31, 2008
|
||||||||
Carrying amount
|
Fair value
|
|||||||
NT$
|
NT$
|
|||||||
(in
thousands)
|
||||||||
Financial
liabilities:
|
||||||||
Short-term
borrowings
|
4,857,260 | 4,857,260 | ||||||
Accounts
payable (including related parties)
|
58,178,225 | 58,178,225 | ||||||
Foreign
currency forward contracts
|
28,831 | 28,831 | ||||||
Equipment
and construction-in-progress payables
|
21,363,213 | 21,363,213 | ||||||
Long-term
borrowings (including current portion)
|
127,142,514 | 127,152,178 | ||||||
Convertible
bonds payable (including current portion)
|
10,284,282 | 9,971,668 | ||||||
Bonds
payable (including current portion)
|
20,500,000 | 20,808,217 | ||||||
Interest
rate swap contracts
|
829,389 | 829,389 |
December 31, 2009
|
||||||||||||||||
Carrying amount
|
Fair value
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
85,443,311 | 2,674,282 | 85,443,311 | 2,674,282 | ||||||||||||
Receivable
(including related parties)
|
62,345,500 | 1,951,346 | 62,345,500 | 1,951,346 | ||||||||||||
Other
financial assets—current
|
1,867,294 | 58,444 | 1,867,294 | 58,444 | ||||||||||||
Foreign
currency forward contracts
|
378,252 | 11,839 | 378,252 | 11,839 | ||||||||||||
Available-for-sale
financial assets—noncurrent
|
2,012,265 | 62,982 | 2,012,265 | 62,982 | ||||||||||||
Financial
assets carried at cost—noncurrent
|
484,009 | 15,149 |
See
(b) (3)
|
- | ||||||||||||
Interest
rate swap contracts
|
3,963 | 124 | 3,963 | 124 | ||||||||||||
Option
contracts
|
9,743 | 305 | 9,743 | 305 | ||||||||||||
Refundable
deposits
|
204,231 | 6,392 | 204,231 | 6,392 | ||||||||||||
Restricted
cash in bank
|
608,572 | 19,048 | 608,572 | 19,048 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Short-term
borrowings
|
1,945,227 | 60,883 | 1,945,227 | 60,883 | ||||||||||||
Payable
(including related parties)
|
92,530,484 | 2,896,102 | 92,530,484 | 2,896,102 | ||||||||||||
Foreign
currency forward contracts
|
933,289 | 29,211 | 933,289 | 29,211 | ||||||||||||
Equipment
and construction-in-progress payables
|
23,788,714 | 744,561 | 23,788,714 | 744,561 | ||||||||||||
Long-term
borrowings (including current portion)
|
161,962,078 | 5,069,236 | 161,964,995 | 5,069,327 |
December 31, 2009
|
||||||||||||||||
Carrying amount
|
Fair value
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Convertible
bonds payable (including current portion)
|
2,690,900 | 84,222 | 2,663,542 | 83,366 | ||||||||||||
Bonds
payable (including current portion)
|
15,270,668 | 477,955 | 15,659,771 | 490,134 | ||||||||||||
Interest
rate swap contracts
|
515,847 | 16,145 | 515,847 | 16,145 | ||||||||||||
Option
contracts
|
154,513 | 4,836 | 154,513 | 4,836 |
(b)
|
The
following methods and assumptions are used to estimate the fair values of
the Company’s financial assets and
liabilities:
|
(1)
|
The
carrying amount of cash and cash equivalents, notes receivable, accounts
receivable/payable (including related parties), other current financial
assets, restricted cash in bank, equipment and construction-in-progress
payables, and short-term borrowings approximates their fair value due to
their short-term maturity
periods.
|
(2)
|
The
fair value of financial instruments other than financial assets carried at
cost is based on quoted market prices, if available, in active
markets. If market price is unavailable, fair value is
determined using a valuation technique, with estimates and assumptions
consistent with those used by market
participants.
|
(3)
|
It
is not practicable to estimate the fair value of investments in debt
securities with no active market and financial assets carried at cost, as
these financial instruments are not traded in an active public
market.
|
(4)
|
The
fair value of refundable deposits with no fixed maturity is based on
carrying amount.
|
(5)
|
The
fair value of floating-rate long-term borrowings is calculated based on
the prevailing market rate adjusted by the Company’s credit
spread. Management believes the carrying value of floating-rate
long-term borrowings approximates the fair
value.
|
(6)
|
The
fair value of fixed-rate long-term borrowings is estimated based on the
present value of future discounted cash flows based on prevailing market
interest rates for similar debt instruments of comparable maturities and
credit standing of the
borrower.
|
(7)
|
If
the fair value of aforementioned financial instruments is denominated in
foreign currency, the Company estimates the fair value based on the spot
exchange rate provided by Reuters quotes system. The spot
exchange rate is based on the buying rate and adopted consistently, except
for the US dollar, which is based on the close
price.
|
(c)
|
The
fair values of the Company’s financial assets and liabilities determined
by publicly quoted market price, if available, or determined using a
valuation technique were as
follows:
|
December 31, 2008
|
||||||||
Publicly
quoted
market prices
|
Fair
value based on
valuation technique
|
|||||||
NT$
|
NT$
|
|||||||
(in
thousands)
|
||||||||
Financial
assets:
|
||||||||
Cash
and cash equivalents
|
83,434,697 | - | ||||||
Receivable
(including related parties)
|
- | 23,899,077 | ||||||
Other
financial assets—current
|
- | 3,082,294 | ||||||
Foreign
currency forward contracts
|
- | 1,067,531 | ||||||
Available-for-sale
financial assets—current
|
470,301 | - | ||||||
Available-for-sale
financial assets—noncurrent
|
595,750 | - | ||||||
Interest
rate swap contracts
|
- | 5,398 | ||||||
Refundable
deposits
|
- | 215,869 | ||||||
Restricted
cash in bank
|
25,501 | - | ||||||
Financial
liabilities:
|
||||||||
Short-term
borrowings
|
- | 4,857,260 | ||||||
Payable
(including related parties)
|
- | 58,178,225 | ||||||
Foreign
currency forward contracts
|
- | 28,831 | ||||||
Equipment
and construction-in-progress payables
|
- | 21,363,213 | ||||||
Long-term
borrowings (including current portion)
|
- | 127,152,178 | ||||||
Convertible
bonds payable (including current portion)
|
- | 9,971,668 | ||||||
Bonds
payable (including current portion)
|
- | 20,808,217 | ||||||
Interest
rate swap contracts
|
- | 829,389 |
December 31, 2009
|
||||||||||||||||
Publicly quoted
market prices
|
Fair
value based on
valuation technique
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
85,443,311 | 2,674,282 | - | - | ||||||||||||
Receivable
(including related parties)
|
- | - | 62,345,500 | 1,951,346 | ||||||||||||
Other
current financial assets
|
- | - | 1,867,294 | 58,444 | ||||||||||||
Foreign
currency forward contracts
|
- | - | 378,252 | 11,839 | ||||||||||||
Available-for-sale
financial assets—noncurrent
|
2,012,265 | 62,982 | - | - | ||||||||||||
Interest
rate swap contracts
|
- | - | 3,963 | 124 | ||||||||||||
Option
contracts
|
- | - | 9,743 | 305 | ||||||||||||
Refundable
deposits
|
- | - | 204,231 | 6,392 | ||||||||||||
Restricted
cash in bank
|
608,572 | 19,048 | - | - | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Short-term
borrowings
|
- | - | 1,945,227 | 60,883 | ||||||||||||
Payable
(including related parties)
|
- | - | 92,530,484 | 2,896,102 | ||||||||||||
Foreign
currency forward contracts
|
933,289 | 29,211 | ||||||||||||||
Equipment
and construction-in-progress payables
|
- | - | 23,788,714 | 744,561 | ||||||||||||
Long-term
borrowings (including current portion)
|
- | - | 161,964,995 | 5,069,327 | ||||||||||||
Convertible
bonds payable (including current portion)
|
- | - | 2,663,542 | 83,366 | ||||||||||||
Bonds
payable (including current portion)
|
- | - | 15,659,771 | 490,134 | ||||||||||||
Interest
rate swap contracts
|
- | - | 515,847 | 16,145 | ||||||||||||
Option
contracts
|
- | - | 154,513 | 4,836 |
(d)
|
As
of December 31, 2008 and 2009, the Company pledged certain of its
financial assets to secure long-term borrowings; see note
24.
|
(e)
|
Gains
on valuation of financial instruments resulting from the change in fair
value, determined using valuation techniques, were NT$1,396,372 thousand,
NT$3,902,317 thousand and NT$813,152 (US$25,451) thousand for the years
ended December 31, 2007, 2008 and 2009,
respectively.
|
(f)
|
Financial
liabilities exposed to cash flow risk resulting from change in interest
rates were NT$85,688,663 thousand and NT$123,198,156 (US$3,855,967)
thousand as of December 31, 2008 and 2009,
respectively.
|
(g)
|
Financial
risks relating to financial
instruments
|
(1)
|
Market
risk
|
(2)
|
Credit
risk
|
(3)
|
Liquidity
risk
|
(4)
|
Cash
flow risk resulting from change in interest
rates
|
23.
|
Related-party
Transactions
|
Name of related party
|
Relationship with the
Company
|
|
Cando
Corporation, Ltd. (“Cando”)
|
Investee
of AUO and Konly
|
|
Raydium
Semiconductor Corporation (“Raydium”)
|
Investee
of Konly
|
|
Wellypower
Optronics Co., Ltd. (‘Wellypower’)
|
Investee
of Konly
|
|
Qisda
Corporation (“Qisda”)
|
Shareholder
represented on AUO’s board of directors; investee of AUO and
Konly
|
|
BenQ
Corporation (“BenQ”)
|
Subsidiary
of Qisda
|
|
Qisda
Czech s.r.o. (“QZBR”)
|
Subsidiary
of Qisda
|
|
Daxon
Technology Inc. (“Daxon”)
|
Subsidiary
of Qisda
|
|
Qisda
Co., Ltd. Suzhou (“QCSZ”)
|
Subsidiary
of Qisda
|
|
Qisda
Optronics (Suzhou) Co., Ltd. (“QCOS”)
|
Subsidiary
of Qisda
|
|
Darfon
Electronics Corp. (“Darfon”)
|
Subsidiary
of Qisda
|
|
Taiwan
Nano Electro-Optical Technology (“Nano”)
|
Investee
of Konly and Ronly
|
|
Nano
Electro-Op (Kunshan) Co., Ltd. (“Nano-Kunshan“)
|
Subsidiary
of Nano
|
|
Forhouse
Corporation (“FH”)
|
Investee
of DPTW; see note (i) below
|
|
Fortech
International Corp. (“Fortech”)
|
Subsidiary
of Forhouse; see note (i) below
|
|
Fortress
Optronics International Corporation (“Fortress”)
|
Subsidiary
of Forhouse; see note (i) below
|
|
Fortech
Optronics (Xiamen) Co., Ltd. (“FHSSXM”)
|
Subsidiary
of Forhouse; see note (i) below
|
|
Changhong
Electrics (Sichuan) Co., Ltd. (“Changhong Electrics”)
|
Joint
investor of BVCH; see note (ii) below
|
|
Matsumiya Semiconductor Laboratory
Co., Ltd. (“Matsumiya
Semiconductor”)
|
Chairman
of Matsumiya Semiconductor and chairman of M. Setek are first-degree
direct blood relative.
|
Name of related party
|
Relationship with the
Company
|
|
Others
|
Directors,
supervisors, president, vice-presidents of the Company, and entities that
the Company has significant influence but with which the Company had no
material transactions.
|
|
Note
(i):
|
The
Company invested in Forhouse through DPTW in 2008 and accounted for its
investment in Forhouse under the equity method of
accounting. Forhouse is considered a related party of the
Company, and related-party transactions were disclosed starting from
September 3, 2008.
|
|
Note
(ii):
|
In
August 27, 2009, the Company jointly invested in BVCH with Changhong Electrics (Sichuan) Co., Ltd. through
BVLB. Accordingly, Changhong Electrics (Sichuan) Co., Ltd. is considered as a
related party of
the Company, and related-party
transactions were disclosed starting from August 27,
2009.
|
|
(1)
|
Sales
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
BenQ
|
- | 360,951 | 8,945,171 | 279,974 | ||||||||||||
Changhong
Electrics
|
- | - | 6,827,504 | 213,693 | ||||||||||||
QCSZ
|
23,732,707 | 14,250,810 | 1,887,418 | 59,074 | ||||||||||||
QCOS
|
814,471 | 1,350,840 | 596,375 | 18,666 | ||||||||||||
QZBR
|
858,118 | 2,427,621 | 178,368 | 5,583 | ||||||||||||
Qisda
|
2,441,050 | 638,016 | 105,815 | 3,312 | ||||||||||||
Others
|
1,786,566 | 494,476 | 2,344,953 | 73,395 | ||||||||||||
29,632,912 | 19,522,714 | 20,885,604 | 653,697 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Changhong
Electrics
|
- | 2,095,277 | 65,580 | |||||||||
BenQ
|
196,908 | 1,910,070 | 59,783 | |||||||||
FHSSXM
|
118,284 | 391,234 | 12,245 | |||||||||
QCSZ
|
505,725 | 377,538 | 11,817 | |||||||||
QCOS
|
341,779 | 121,158 | 3,792 | |||||||||
Qisda
|
186,254 | 13,220 | 414 | |||||||||
QZBR
|
352,534 | 7,474 | 234 | |||||||||
Others
|
47,890 | 372,575 | 11,661 | |||||||||
Less:
allowance for doubtful accounts
|
(1,725 | ) | (4,703 | ) | (147 | ) | ||||||
Less:
allowance for sales returns and discounts
|
(108,848 | ) | (11,455 | ) | (359 | ) | ||||||
1,638,801 | 5,272,388 | 165,020 |
|
(2)
|
Disposal
of property, plant and equipment, operating leases, and
others
|
|
(3)
|
Purchases
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Daxon
|
8,775,448 | 8,903,819 | 11,136,574 | 348,562 | ||||||||||||
Forhouse
|
- | 1,375,021 | 7,911,643 | 247,626 | ||||||||||||
Raydium
|
4,137,943 | 6,331,750 | 7,534,212 | 235,812 | ||||||||||||
Fortech
|
- | 1,248,284 | 6,057,071 | 189,580 | ||||||||||||
Fortress
|
- | 848,435 | 4,360,141 | 136,468 | ||||||||||||
Cando
|
4,042,390 | 3,414,922 | 3,179,766 | 99,523 | ||||||||||||
Nano-Kunshan
|
- | 3,286,114 | 2,865,743 | 89,695 | ||||||||||||
Wellypower
|
13,891 | 880,226 | 2,861,898 | 89,574 | ||||||||||||
Others
|
4,282,508 | 5,649,956 | 10,414,681 | 325,968 | ||||||||||||
21,252,180 | 31,938,527 | 56,321,729 | 1,762,808 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Daxon
|
1,583,567 | 3,856,696 | 120,710 | |||||||||
Raydium
|
1,624,681 | 3,507,516 | 109,781 | |||||||||
Forhouse
|
1,522,802 | 3,261,661 | 102,087 | |||||||||
Fortech
|
1,509,808 | 2,585,496 | 80,923 | |||||||||
Fortress
|
1,063,740 | 2,160,210 | 67,612 | |||||||||
Nano-Kunshan
|
1,069,640 | 1,360,294 | 42,576 | |||||||||
Wellypower
|
311,094 | 1,241,353 | 38,853 | |||||||||
Others
|
3,501,209 | 4,710,935 | 147,447 | |||||||||
12,186,541 | 22,684,161 | 709,989 |
(4)
|
Acquisition
of property, plant and equipment, operating leases, and
others
|
(5)
|
In
August 2007, M. Setek provided guarantees of YEN2,440,000 thousand for
Matsumiya Semiconductor’s borrowings from Bank of Tokyo – Mitsubishi
UFJ. In 2009, Matsumiya Semiconductor defaulted on the
aforementioned loan as a result of its poor operating
results. M. Setek, as guarantor of the loan, believes it is
probable it will need to repay the loan on behalf of Matsumiya
Semiconductor. As of December 31, 2009, the Company accrued a
guarantee obligation of YEN2,074,000 (US$22,382) thousand and recorded it
under other current liabilities and long-term payables in accordance with
the schedule of payments.
|
|
(6)
|
Compensation
to executive officers
|
For the year ended December
31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Salaries
|
149,267 | 144,612 | 4,526 | |||||||||
Compensation
|
28,127 | 25,698 | 804 | |||||||||
Service
charges
|
765 | 3,317 | 104 | |||||||||
Employee
bonuses
|
143,690 | - | - |
24.
|
Pledged
Assets
|
December 31,
|
||||||||||||||
Pledged assets
|
Pledged to secure
|
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||||
(in
thousands)
|
||||||||||||||
Restricted
cash in banks
|
Oil
purchases, customs duties, and guarantees for foreign
workers
|
25,501 | 608,572 | 19,048 | ||||||||||
Inventory
|
Guarantees
for unearned revenue
|
- | 665,033 | 20,815 | ||||||||||
Building
|
Long-term
borrowings
|
33,779,934 | 59,092,917 | 1,849,543 | ||||||||||
Machinery
and equipment
|
Long-term
borrowings and bonds payable
|
150,759,321 | 196,783,810 | 6,159,118 | ||||||||||
Available-for-sale
financial assets-noncurrent
|
Long-term
borrowings
|
- | 2,404 | 75 | ||||||||||
Land
|
Long-term
borrowings
|
- | 1,540,247 | 48,208 | ||||||||||
184,564,756 | 258,692,983 | 8,096,807 |
25.
|
Commitments
and Contingencies
|
December 31,
|
||||||||
Currency
|
2008
|
2009
|
||||||
(in
thousands)
|
||||||||
USD
|
5,336 | 56,413 | ||||||
YEN
|
7,540,907 | 15,820,027 | ||||||
EUR
|
2,527 | - | ||||||
NTD
|
- | 38,220 |
(d)
|
Operating
lease agreements
|
Year
|
Minimum lease commitments
|
||||||||
NT$
|
US$
|
||||||||
(in
thousands)
|
|||||||||
2010
|
849,672 | 26,594 | |||||||
2011
|
780,826 | 24,439 | |||||||
2012
|
744,134 | 23,291 | |||||||
2013
|
674,825 | 21,121 | |||||||
2014
|
417,120 | 13,055 | |||||||
Thereafter
|
2,064,253 | 64,609 |
(e)
|
Litigation
|
|
(1)
|
Alleged
patent infringements
|
|
(2)
|
Investigation
for alleged violation of antitrust and competition
laws
|
|
(3)
|
Antitrust
civil actions lawsuits in the United States and
Canada
|
(f)
|
Other
|
26.
|
Subsequent Events
|
27.
|
Segment
Information
|
(a)
|
Industrial
information
|
(b)
|
Geographic
information
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Taiwan
|
174,272,661 | 184,895,032 | 153,643,468 | 4,808,872 | ||||||||||||
The
People’s Republic of China
|
115,309,356 | 82,626,965 | 98,430,471 | 3,080,766 | ||||||||||||
Other
(individually less than 10% of total net sales)
|
190,601,609 | 156,406,196 | 107,257,406 | 3,357,039 | ||||||||||||
480,183,626 | 423,928,193 | 359,331,345 | 11,246,677 |
December 31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Taiwan
|
352,858,986 | 371,526,051 | 346,342,660 | 10,840,146 | ||||||||||||
The
People’s Republic of China
|
31,799,442 | 35,798,587 | 31,328,059 | 980,534 | ||||||||||||
Other
|
6,625 | 184,090 | 29,169,763 | 912,981 | ||||||||||||
384,665,053 | 407,508,728 | 406,840,482 | 12,733,661 |
(c)
|
Major
customer information
|
For the year ended December
31,
|
||||||||||||||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||||||||||||||
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||||||
Samsung
|
61,141,835 | 13 | 62,865,559 | 15 | 60,553,035 | 1,895,244 | 17 |
28.
|
Summary
of Significant Differences between Accounting Principles Generally
Accepted in the Republic of China and Accounting Principles Generally
Accepted in the United States of
America
|
(a)
|
Business
combinations
|
|
(1)
|
Merger
with Unipac
|
|
(2)
|
Merger
with QDI
|
|
(3)
|
Acquisition
of M. Setek
|
NT$
|
||||
(in
millions)
|
||||
Consideration
|
||||
Fair
value of the Series B and Series C preferred stock converted by the
Company into common shares of M. Setek
|
2,424 | |||
Fair
value of the Company’s equity interest in Series D convertible preferred
stock held before the business combination
|
1,944 | |||
Fair
value of the Company’s equity interest in the common shares of M. Setek
held before the business combination
|
218 | |||
4,586 | ||||
Acquisition-related
costs (including in operating expenses in the condensed consolidated statement of operations
for the year ended December 31, 2009)
|
5 |
NT$
|
||||
(in
millions)
|
||||
Recognized
amounts of identifiable assets acquired and liabilities
assumed:
|
||||
Current
assets
|
4,769 | |||
Property
and equipment
|
30,905 | |||
Other
non-current assets
|
1,037 | |||
Current
liabilities
|
(11,870 | ) | ||
Long-term
debt
|
(18,320 | ) | ||
Total
identifiable net assets
|
6,521 | |||
Noncontrolling
interests in M. Setek
|
(1,763 | ) | ||
Effect
of foreign exchange
|
(9 | ) | ||
Gain
on bargain purchase of 58.1% interest
|
(163 | ) | ||
4,586 |
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Revenue
|
1,510,710 | 47,284 | ||||||
Loss
attributable to equity holders of AU Optronics Corp.
|
(708,571 | ) | (22,177 | ) |
For the year ended December
31,
|
|||||||||||||
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
|||||||||||
(in
thousands)
|
|||||||||||||
Revenue
|
437,966,255 | 366,661,919 | 11,476,116 | ||||||||||
Income
(loss) attributable to equity holders of AU Optronics
Corp.
|
13,479,629 | (31,380,060 | ) | (982,162 | ) |
(b)
|
Noncontrolling
interests
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
income (loss) attributable to AU Optronics Corp.
|
45,355,480 | 13,089,654 | (28,670,321 | ) | (897,350 | ) | ||||||||||
Transfer
(to) from noncontrolling interest
|
||||||||||||||||
Decrease
in AUO’s paid-in capital due to purchase of common shares of DPTW and
Lextar
|
- | - | (8,445 | ) | (264 | ) | ||||||||||
Increase
in disproportionate participation in Lextar’s capital
increase
|
- | - | 76,039 | 2,380 | ||||||||||||
Decrease
in AUO’s paid-in capital for sale of DPTW’s common shares
|
- | - | (28,323 | ) | (886 | ) | ||||||||||
Decrease
in disproportionate participation in DPTW’s capital
increase
|
- | - | (8,039 | ) | (252 | ) | ||||||||||
Net
transfer (to) from noncontrolling interest
|
- | - | 31,232 | 978 | ||||||||||||
Change
from net income (loss) attributable to AU Optronics Corp. and transfers
(to) from noncontrolling interest
|
45,355,480 | 13,089,654 | (28,639,089 | ) | (896,372 | ) |
(c)
|
Compensation
|
|
(1)
|
Remuneration
to directors and supervisors
|
|
(2)
|
Employee
bonuses
|
(d)
|
Equity-method
investments and other-than-temporary
impairment
|
(e)
|
Convertible
bonds
|
(f)
|
Shareholders’
stock dividends
|
(g)
|
Defined
pension benefits
|
(h)
|
Depreciation
of buildings
|
|
(i)
|
Hedging
derivative financial instruments
|
|
(j)
|
Compensated
absences
|
|
(k)
|
Research
and development expense
|
|
(l)
|
Operating
leases
|
|
(m)
|
Income
taxes
|
|
(n)
|
Earnings
per common share
|
|
(o)
|
Principles
of consolidation
|
|
(p)
|
Goodwill
|
|
(q)
|
Potential
antitrust loss
|
|
(r)
|
US
GAAP reconciliations
|
(1)
|
Reconciliation
of consolidated net income (loss) attributable to the stockholders of AU
Optronics Corp.
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands, except for per share data)
|
||||||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics Corp., ROC
GAAP
|
56,417,766 | 21,267,386 | (26,769,335 | ) | (837,851 | ) | ||||||||||
US
GAAP adjustments:
|
||||||||||||||||
a)
Purchase method of accounting for acquisition of Unipac
|
||||||||||||||||
-Amortization
of intangible assets
|
(1,049,496 | ) | (1,049,496 | ) | - | - | ||||||||||
-Depreciation
|
(16,868 | ) | (22,266 | ) | (79,663 | ) | (2,493 | ) | ||||||||
-Disposals
of available-for-sale securities
|
- | 14,030 | 136,731 | 4,280 | ||||||||||||
-Impairment
of available-for-sale securities
|
- | (182,466 | ) | - | - | |||||||||||
Acquisition method of
accounting for acquisition of M. Setek
|
||||||||||||||||
-Impairment
loss
|
- | - | 653,609 | 20,457 | ||||||||||||
-Remeasurement
loss
|
- | - | (1,445,660 | ) | (45,248 | ) | ||||||||||
-Gain
on bargain purchase
|
- | - | 162,682 | 5,092 | ||||||||||||
Acquisition method of
accounting for other
|
- | - | 41,099 | 1,286 | ||||||||||||
b)
Noncontrolling interests
|
||||||||||||||||
-Decrease
in ownership not resulting in loss of control
|
- | - | 28,323 | 886 | ||||||||||||
c)
Compensation
|
||||||||||||||||
-Remuneration
to directors and supervisors
|
(158,500 | ) | 13,397 | - | - | |||||||||||
-Employee
bonuses
|
||||||||||||||||
-Current-year
provision
|
(4,573,000 | ) | - | - | - | |||||||||||
-Adjustment
to fair value
|
(2,584,194 | ) | (6,520,538 | ) | (216,324 | ) | (6,771 | ) | ||||||||
d)
Long-term equity investments
|
||||||||||||||||
-Investment
losses
|
(72,354 | ) | (192,840 | ) | (36,241 | ) | (1,134 | ) | ||||||||
-Impairment
loss
|
- | (1,928,709 | ) | - | - | |||||||||||
e)
Convertible bonds
|
(132,599 | ) | 1,252,181 | - | - | |||||||||||
g)
Pension expense
|
2,550 | 2,307 | 1,979 | 62 | ||||||||||||
h)
Depreciation of buildings
|
(1,675,418 | ) | (1,728,045 | ) | (2,209,816 | ) | (69,165 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands, except for per share data)
|
||||||||||||||||
i)
Hedging derivative financial instruments
|
167,019 | 32,625 | (32,625 | ) | (1,021 | ) | ||||||||||
j)
Compensated absences expense
|
(11,014 | ) | 80,470 | (230,102 | ) | (7,202 | ) | |||||||||
l)
Escalation adjustment of rent expense
|
6,802 | 2,129 | 2,129 | 67 | ||||||||||||
m)
Tax effect of the above US GAAP adjustments
|
832,523 | 430,476 | 1,031,220 | 32,276 | ||||||||||||
m)
Valuation allowance for deferred tax assets related to the above US GAAP
adjustments
|
(17,489 | ) | (80,789 | ) | (96,163 | ) | (3,010 | ) | ||||||||
m)
10% surtax on undistributed retained earnings and others
|
(1,780,248 | ) | 1,699,802 | 387,836 | 12,139 | |||||||||||
Net
income (loss) attributable to stockholders of AU Optronics Corp., US
GAAP
|
45,355,480 | 13,089,654 | (28,670,321 | ) | (897,350 | ) | ||||||||||
Earnings
(loss) per share:
|
||||||||||||||||
Basic
|
5.39 | 1.52 | (3.26 | ) | (0.10 | ) | ||||||||||
Diluted
|
5.17 | 1.49 | (3.26 | ) | (0.10 | ) | ||||||||||
Weighted-average
number of shares outstanding (in thousands):
|
||||||||||||||||
Basic
|
8,409,607 | 8,606,669 | 8,785,178 | |||||||||||||
Diluted
|
8,818,252 | 8,817,625 | 8,785,178 |
(2)
|
Reconciliation
of consolidated equity attributable to the stockholders of AU Optronics
Corp.:
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Equity
attributable to stockholders of AU Optronics Corp., ROC
GAAP
|
290,058,971 | 262,087,137 | 8,203,040 | |||||||||
a)
Purchase method of accounting for acquisition of Unipac
|
||||||||||||
-
Goodwill
|
10,946,732 | 10,946,732 | 342,621 | |||||||||
-
Other assets
|
(27,227 | ) | (106,890 | ) | (3,345 | ) | ||||||
Acquisition method of
accounting for acquisition of M. Setek
|
||||||||||||
-
Impairment loss
|
- | 653,609 | 20,457 | |||||||||
-
Remeasurement loss
|
- | (1,445,660 | ) | (45,248 | ) | |||||||
-
Gain on bargain purchase
|
- | 162,682 | 5,092 | |||||||||
Acquisition method of
accounting for other
|
- | 41,099 | 1,286 | |||||||||
d)
Subsidiaries and long-term equity investments
|
(2,004,853 | ) | 756,923 | 23,691 | ||||||||
d)
Cumulative translation adjustments
|
(11,086 | ) | 38,603 | 1,208 | ||||||||
g)
Defined benefit plan
|
||||||||||||
-
Accrued pension cost
|
17,587 | (20,698 | ) | (648 | ) | |||||||
-
Recognition of funded status under FASB ASC Subtopic 715-60 (Statement No.
158)
|
(207,207 | ) | (375,411 | ) | (11,750 | ) | ||||||
h)
Accumulated depreciation of buildings
|
(6,279,693 | ) | (8,489,509 | ) | (265,712 | ) | ||||||
j) Accrued
compensated absences
|
(161,706 | ) | (391,808 | ) | (12,263 | ) | ||||||
l)
Accrued rental expense and adjustment to land cost
|
(98,668 | ) | (96,539 | ) | (3,022 | ) | ||||||
m)
Deferred income tax assets and liabilities
|
1,159,018 | 2,508,712 | 78,520 | |||||||||
Equity
attributable to stockholders of AU Optronics Corp., US
GAAP
|
293,391,868 | 266,268,982 | 8,333,927 |
(s)
|
US
GAAP condensed consolidated financial
statements
|
(1)
|
Condensed
consolidated balance sheets
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Assets
|
||||||||||||
Current
assets
|
145,522,348 | 195,902,913 | 6,131,547 | |||||||||
Long-term
investments
|
6,469,741 | 12,505,585 | 391,411 | |||||||||
Property,
plant and equipment, net
|
383,958,143 | 385,571,559 | 12,067,967 | |||||||||
Goodwill
and intangible assets
|
26,399,359 | 25,036,528 | 783,616 | |||||||||
Other
assets
|
6,636,001 | 7,125,197 | 223,011 | |||||||||
Total
Assets
|
568,985,592 | 626,141,782 | 19,597,552 | |||||||||
Liabilities
and Equity
|
||||||||||||
Current
liabilities
|
152,647,199 | 203,120,887 | 6,357,461 | |||||||||
Long-term
liabilities
|
115,209,312 | 145,004,401 | 4,538,479 | |||||||||
Equity
attributable to stockholders of AU Optronics Corp.
|
293,391,868 | 266,268,982 | 8,333,927 | |||||||||
Noncontrolling
interests
|
7,737,213 | 11,747,512 | 367,685 | |||||||||
Total
Liabilities and Equity
|
568,985,592 | 626,141,782 | 19,597,552 |
(2)
|
Condensed
consolidated statements of
operations
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
sales
|
480,184,256 | 423,928,193 | 358,732,803 | 11,227,944 | ||||||||||||
Cost
of goods sold
|
407,004,913 | 380,968,342 | 357,966,412 | 11,203,957 | ||||||||||||
Gross
profit
|
73,179,343 | 42,959,851 | 766,391 | 23,987 | ||||||||||||
Operating
expenses
|
21,328,332 | 22,811,722 | 29,076,075 | 910,049 | ||||||||||||
Operating
income (loss)
|
51,851,011 | 20,148,129 | (28,309,684 | ) | (886,062 | ) | ||||||||||
Non-operating
expenses, net
|
(3,416,728 | ) | (4,061,975 | ) | (1,352,661 | ) | (42,337 | ) | ||||||||
Income
(loss) before income taxes
|
48,434,283 | 16,086,154 | (29,662,345 | ) | (928,399 | ) | ||||||||||
Income
tax expense (benefit)
|
3,053,124 | 2,579,576 | (1,359,533 | ) | (42,552 | ) | ||||||||||
Net
income (loss)
|
45,381,159 | 13,506,578 | (28,302,812 | ) | (885,847 | ) | ||||||||||
Less
net income attributable to noncontrolling interests
|
25,679 | 416,924 | 367,509 | 11,503 | ||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics
Corp.
|
45,355,480 | 13,089,654 | (28,670,321 | ) | (897,350 | ) |
(3)
|
Condensed
consolidated statements of comprehensive income (loss) under US
GAAP
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics
Corp.
|
45,355,480 | 13,089,654 | (28,670,321 | ) | (897,350 | ) | ||||||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||
Derivative
and hedging activities
|
290,193 | (727,376 | ) | 226,874 | 7,101 | |||||||||||
Unrealized
gains (losses) on securities
|
1,436,558 | (1,693,174 | ) | 1,680,476 | 52,597 | |||||||||||
Cumulative
translation adjustments
|
646,134 | 1,277,232 | (611,237 | ) | (19,131 | ) | ||||||||||
Defined
benefit plan
|
110,991 | (18,548 | ) | (120,856 | ) | (3,783 | ) | |||||||||
Other
comprehensive income (loss), net of tax
|
2,483,876 | (1,161,866 | ) | 1,175,257 | 36,784 | |||||||||||
Comprehensive
income (loss) attributable to stockholders of AU Optronics
Corp.
|
47,839,356 | 11,927,788 | (27,495,064 | ) | (860,566 | ) |
For the year ended December
31,
|
||||||||||||||||
2007 | 2008 |
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
income attributable to noncontrolling interests
|
25,679 | 416,924 | 367,509 | 11,503 | ||||||||||||
Other
comprehensive income (loss), net of tax:
|
||||||||||||||||
Derivative
and hedging activities
|
- | - | - | - | ||||||||||||
Unrealized
gains (losses) on securities
|
- | - | - | - | ||||||||||||
Cumulative
translation adjustments
|
39,995 | 32,727 | (73,534 | ) | (2,302 | ) | ||||||||||
Defined
benefit plan
|
2,964 | (1,432 | ) | (2,269 | ) | (71 | ) | |||||||||
Other
comprehensive income (loss), net of tax
|
42,959 | 31,295 | (75,803 | ) | (2,373 | ) | ||||||||||
Comprehensive
income attributable to noncontrolling interests
|
68,638 | 448,219 | 291,706 | 9,130 |
(4)
|
Changes
in equity attributable to AU Optronics Corp., noncontrolling interests and
total equity under US GAAP
|
Years ended December 31, 2007, 2008 and
2009
|
||||||||||||
Equity
attributable to AU Optronics
Corp.
|
Noncontrolling
interests
|
|
Total
equity
|
|||||||||
(in
thousands)
|
||||||||||||
Balance
at January 1, 2007
|
238,618,131 | 342,014 | 238,960,145 | |||||||||
Employees’
profit sharing—cash
|
(245,793 | ) | - | (245,793 | ) | |||||||
Capitalization
of employee stock bonus
|
3,321,574 | - | 3,321,574 | |||||||||
Cash
dividends
|
(1,514,793 | ) | - | (1,514,793 | ) | |||||||
Issuance
of stock for conversion of bonds
|
3,783,171 | - | 3,783,171 | |||||||||
Deferred
compensation cost for employee stock options
|
3,890 | - | 3,890 | |||||||||
Issuance
of stock from exercise of employee stock option
|
126,491 | - | 126,491 | |||||||||
Effect
of inclusion of newly consolidated subsidiaries
|
- | 8,035,132 | 8,035,132 | |||||||||
Proceeds
from subsidiaries capital increase
|
- | 396,228 | 396,228 | |||||||||
Other
changes in equity
|
(66,205 | ) | - | (66,205 | ) | |||||||
Comprehensive
income:
|
||||||||||||
Net
income
|
45,355,480 | 25,679 | 45,381,159 | |||||||||
Other
comprehensive income, net of tax:
|
||||||||||||
Derivative
and hedging activities
|
290,193 | - | 290,193 | |||||||||
Unrealized
gains on securities
|
1,436,558 | - | 1,436,558 | |||||||||
Cumulative
translation adjustments
|
646,134 | 39,995 | 686,129 | |||||||||
Defined
benefit plan
|
110,991 | 2,964 | 113,955 | |||||||||
Comprehensive
income
|
47,839,356 | 68,638 | 47,907,994 | |||||||||
Balance
at December 31, 2007
|
291,865,822 | 8,842,012 | 300,707,834 |
Years ended December 31, 2007, 2008 and
2009
|
||||||||||||
Equity
attributable to AU Optronics
Corp.
|
Noncontrolling
interests
|
|
Total
equity
|
|||||||||
(in
thousands)
|
||||||||||||
Employees’
profit sharing—cash
|
(1,624,832 | ) | (19,571 | ) | (1,644,403 | ) | ||||||
Capitalization
of employee stock bonus
|
11,093,538 | - | 11,093,538 | |||||||||
Cash
dividends
|
(19,670,577 | ) | (110,823 | ) | (19,781,400 | ) | ||||||
Issuance
of stock for conversion of bonds
|
151,793 | - | 151,793 | |||||||||
Issuance
of stock from exercise of employee stock option
|
26,609 | - | 26,609 | |||||||||
Proceeds
from subsidiaries capital increase
|
- | 40,000 | 40,000 | |||||||||
Other
changes in equity
|
(378,273 | ) | (1,462,624 | ) | (1,840,897 | ) | ||||||
Comprehensive
income:
|
||||||||||||
Net
income
|
13,089,654 | 416,924 | 13,506,578 | |||||||||
Other
comprehensive income, net of tax:
|
||||||||||||
Derivative
and hedging activities
|
(727,376 | ) | - | (727,376 | ) | |||||||
Unrealized
losses on securities
|
(1,693,174 | ) | - | (1,693,174 | ) | |||||||
Cumulative
translation adjustments
|
1,277,232 | 32,727 | 1,309,959 | |||||||||
Defined
benefit plan
|
(18,548 | ) | (1,432 | ) | (19,980 | ) | ||||||
Comprehensive
income
|
11,927,788 | 448,219 | 12,376,007 | |||||||||
Balance
at December 31, 2008
|
293,391,868 | 7,737,213 | 301,129,081 | |||||||||
Employees’
profit sharing—cash
|
2,226,093 | - | 2,226,093 | |||||||||
Cash
dividends
|
(2,551,716 | ) | - | (2,551,716 | ) | |||||||
Net
transfer from noncontrolling interest
|
31,232 | (31,232 | ) | - | ||||||||
Proceeds
from subsidiaries capital increase
|
- | 2,445,262 | 2,445,262 | |||||||||
Effect
of inclusion of newly consolidated subsidiaries
|
- | 1,762,956 | 1,762,956 | |||||||||
Other
changes in equity
|
666,569 | (458,393 | ) | 208,176 | ||||||||
Comprehensive
income (loss):
|
||||||||||||
Net
income (loss)
|
(28,670,321 | ) | 367,509 | (28,302,812 | ) | |||||||
Other
comprehensive income, net of tax:
|
||||||||||||
Derivative
and hedging activities
|
226,874 | - | 226,874 | |||||||||
Unrealized
gains on securities
|
1,680,476 | - | 1,680,476 | |||||||||
Cumulative
translation adjustments
|
(611,237 | ) | (73,534 | ) | (684,771 | ) | ||||||
Defined
benefit plan
|
(120,856 | ) | (2,269 | ) | (123,125 | ) | ||||||
Comprehensive
income (loss)
|
(27,495,064 | ) | 291,706 | (27,203,358 | ) | |||||||
Balance
at December 31, 2009
|
266,268,982 | 11,747,512 | 278,016,494 | |||||||||
Balance
at December 31, 2009 (in US$)
|
8,333,927 | 367,685 | 8,701,612 |
(5)
|
Condensed
consolidated statements of cash
flows
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Net
cash provided by (used in):
|
||||||||||||||||
Operating
activities
|
156,942,207 | 132,044,194 | 58,566,108 | 1,833,055 | ||||||||||||
Investing
activities
|
(66,313,691 | ) | (101,242,355 | ) | (68,550,309 | ) | (2,145,550 | ) | ||||||||
Financing
activities
|
(44,816,566 | ) | (37,473,199 | ) | 11,467,617 | 358,924 | ||||||||||
Effect
of exchange rate change on
cash and cash equivalents
|
152,392 | 216,450 | 525,198 | 16,438 | ||||||||||||
Net
change in cash and cash equivalents
|
45,964,342 | (6,454,910 | ) | 2,008,614 | 62,867 | |||||||||||
Cash
and cash equivalents at
beginning of year
|
43,925,265 | 89,889,607 | 83,434,697 | 2,611,415 | ||||||||||||
Cash
and cash equivalents at
end of year
|
89,889,607 | 83,434,697 | 85,443,311 | 2,674,282 |
|
(t)
|
Additional
US GAAP disclosure
|
(1)
|
Available-for-sale
securities
|
Total
unrealized
|
Total
unrealized
|
|||||||||||||||
Cost*
|
Fair value
|
gains
|
losses
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
As
of December 31, 2008
|
504,823 | 470,301 | - | 34,522 | ||||||||||||
As
of December 31, 2009
|
- | - | - | - | ||||||||||||
Long-term
investments:
|
||||||||||||||||
As
of December 31, 2008
|
592,697 | 595,750 | 137,343 | 134,290 | ||||||||||||
As
of December 31, 2009
|
539,292 | 2,012,265 | 1,473,354 | 381 |
|
*
|
Cost
basis as of December 31, 2008, reflects the impact of the
other-than-temporary impairment losses of NT$514,163 thousand, which
resulted in a new cost basis of the related available-for-sale
securities.
|
Proceeds
|
Gross
realized
|
Gross
realized
|
||||||||||
from sales
|
gains
|
losses
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands)
|
||||||||||||
For
the year ended December 31, 2007
|
29,956 | 15,714 | - | |||||||||
For
the year ended December 31, 2008
|
270,250 | 40,475 | 58 | |||||||||
For
the year ended December 31, 2009
|
939,158 | 374,372 | - |
(2)
|
Allowance
for doubtful accounts, and sales returns and discounts (including related
parties)
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Allowance
for doubtful accounts, and sales returns and discounts:
|
||||||||||||||||
Balance
at beginning of year
|
1,307,549 | 1,572,215 | 1,244,468 | 38,950 | ||||||||||||
Provisions
charged to earnings
|
4,093,943 | 2,606,923 | 620,393 | 19,418 | ||||||||||||
Write-offs
|
(3,829,277 | ) | (2,934,670 | ) | (1,650,534 | ) | (51,660 | ) | ||||||||
Balance
at end of year
|
1,572,215 | 1,244,468 | 214,327 | 6,708 |
(3)
|
Pension-related
benefits
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Projected
benefit obligation at beginning of year
|
984,913 | 1,057,377 | 33,095 | |||||||||
Service
cost
|
8,116 | 8,077 | 253 | |||||||||
Interest
cost
|
29,548 | 26,435 | 827 | |||||||||
Actuarial
loss
|
36,303 | 173,594 | 5,433 | |||||||||
Curtailment
|
(1,503 | ) | - | - | ||||||||
Projected
benefit obligation at end of year
|
1,057,377 | 1,265,483 | 39,608 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Fair
value of plan assets at beginning of year
|
947,714 | 1,111,106 | 34,776 | |||||||||
Actual
return on plan assets
|
30,264 | 23,213 | 727 | |||||||||
Actual
contributions
|
133,128 | 120,361 | 3,767 | |||||||||
Fair
value of plan assets at end of year
|
1,111,106 | 1,254,680 | 39,270 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Funded
status - plan assets more (less) than benefit
obligations
|
53,730 | (10,803 | ) | (338 | ) | |||||||
Prepaid
pension cost (accrued liability)
|
53,730 | (10,803 | ) | (338 | ) |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Prepaid
pension cost (accrued liability) at beginning of year
|
(37,198 | ) | 53,730 | 1,682 | ||||||||
Net
periodic benefit cost
|
(15,661 | ) | (14,409 | ) | (451 | ) | ||||||
Actual
contributions
|
133,128 | 120,361 | 3,767 | |||||||||
Pension
liability adjustments under FASB Topic 715-60 (Statement No.
158)
|
(26,539 | ) | (170,485 | ) | (5,336 | ) | ||||||
Prepaid
pension cost (accrued liability) at end of year
|
53,730 | (10,803 | ) | (338 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Service
cost
|
9,264 | 8,116 | 8,077 | 253 | ||||||||||||
Interest
cost
|
26,679 | 29,547 | 26,435 | 827 | ||||||||||||
Expected
return on plan assets
|
(22,031 | ) | (28,408 | ) | (27,881 | ) | (872 | ) | ||||||||
Amortization
of net transition cost
|
323 | 288 | 323 | 10 | ||||||||||||
Recognized
net actuarial loss
|
10,162 | 6,118 | 7,455 | 233 | ||||||||||||
Net
periodic benefit cost
|
24,397 | 15,661 | 14,409 | 451 |
December 31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
Discount
rate
|
3.00 | % | 2.50 | % | 2.25 | % | ||||||
Rate
of increase in compensation levels
|
2.00% – 3.50 | % | 2.50% – 3.00 | % | 3.00 | % |
For the year ended December
31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
Discount
rate
|
2.50% – 2.75 | % | 3.00 | % | 2.50 | % | ||||||
Rate
of increase in compensation levels
|
2.00% – 3.50 | % | 2.00% – 3.50 | % | 2.50% – 3.00 | % | ||||||
Expected
long-term rate of return on plan assets
|
2.50% – 3.00 | % | 2.50 | % | 2.25% – 2.50 | % |
Year
|
Retirement benefit payments
|
|||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
10,979 | 344 | ||||||
2011
|
19,994 | 626 | ||||||
2012
|
11,307 | 354 | ||||||
2013
|
16,554 | 518 | ||||||
2014
|
61,961 | 1,939 | ||||||
2015-2019
|
340,048 | 10,643 |
December 31, 2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Projected
benefit obligation at October 1, 2009
|
157,667 | 4,935 | ||||||
Service
cost
|
5,936 | 186 | ||||||
Interest
cost
|
788 | 25 | ||||||
Actuarial
loss
|
(532 | ) | (17 | ) | ||||
Benefit
|
(17 | ) | (1 | ) | ||||
Projected
benefit obligation at end of year
|
163,842 | 5,128 |
December 31, 2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Fair
value of plan assets at October 1, 2009
|
31,870 | 998 | ||||||
Actual
return on plan assets
|
(403 | ) | (13 | ) | ||||
Actual
contributions
|
1,185 | 37 | ||||||
Benefit
|
(17 | ) | (1 | ) | ||||
Fair
value of plan assets at end of year
|
32,635 | 1,021 |
December 31, 2009
|
||||||||
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
Funded
status—plan assets less than benefit obligations
|
(131,207 | ) | (4,107 | ) | ||||
Accrued
liability
|
(131,207 | ) | (4,107 | ) |
December 31, 2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Accrued
liability at October 1, 2009
|
(125,796 | ) | (3,937 | ) | ||||
Net
periodic benefit cost
|
(6,665 | ) | (209 | ) | ||||
Actual
contributions
|
1,185 | 37 | ||||||
Pension
liability adjustments under FASB Topic 715-60 (Statement No.
158)
|
69 | 2 | ||||||
Accrued
liability at end of year
|
(131,207 | ) | (4,107 | ) |
For
the period from October 1 to December 31,
2009
|
||||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
Service
cost
|
5,936 | 186 | ||||||
Interest
cost
|
788 | 25 | ||||||
Expected
return on plan assets
|
(59 | ) | (2 | ) | ||||
Net
periodic benefit cost
|
6,665 | 209 |
December 31, 2009
|
||||
Discount
rate
|
2.0 | % | ||
Rate
of increase in compensation levels
|
1.2% – 5.55 | % |
For
the period from October 1 to December 31,
2009
|
||||
Discount
rate
|
2.0 | % | ||
Rate
of increase in compensation levels
|
1.2% – 5.55 | % | ||
Expected
long-term rate of return on plan assets
|
0.75 | % |
Year
|
Retirement benefit payments
|
|||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
1,724 | 54 | ||||||
2011
|
1,939 | 61 | ||||||
2012
|
5,373 | 168 | ||||||
2013
|
8,370 | 262 | ||||||
2014
|
3,967 | 124 | ||||||
2015-2018
|
42,904 | 1,343 |
|
(4)
|
Income
taxes
|
|
(i)
|
The
sources of income (loss) before taxes are summarized as
follows:
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Domestic
operations
|
47,220,132 | 13,629,712 | (34,957,294 | ) | (1,094,125 | ) | ||||||||||
Foreign
operations
|
1,214,151 | 2,456,442 | 5,294,949 | 165,726 | ||||||||||||
48,434,283 | 16,086,154 | (29,662,345 | ) | (928,399 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Current
income tax expense (benefit):
|
||||||||||||||||
Domestic
|
4,310,720 | 2,060,713 | (13,453 | ) | (421 | ) | ||||||||||
Foreign
|
182,505 | 144,502 | 698,484 | 21,862 | ||||||||||||
Deferred
income tax expense (benefit):
|
||||||||||||||||
Domestic
|
(1,404,671 | ) | 538,317 | (1,816,893 | ) | (56,867 | ) | |||||||||
Foreign
|
(35,430 | ) | (163,956 | ) | (227,671 | ) | (7,126 | ) | ||||||||
Income
tax expense (benefit)
|
3,053,124 | 2,579,576 | (1,359,533 | ) | (42,552 | ) |
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Expected
income tax expense (benefit)
|
12,108,571 | 4,021,538 | (7,415,586 | ) | (232,100 | ) | ||||||||||
Decrease
(increase) in investment tax credits, net of expired
portion
|
(2,685,794 | ) | (8,506,844 | ) | 2,664,946 | 83,410 | ||||||||||
Increase
(decrease) in valuation allowance
|
(7,645,980 | ) | 4,937,090 | 2,259,473 | 70,719 | |||||||||||
Tax
exemption
|
(6,085,443 | ) | (2,975,267 | ) | - | - | ||||||||||
Employee
bonuses
|
1,789,298 | 1,630,135 | - | - | ||||||||||||
Tax
on undistributed retained earnings
|
5,641,777 | 2,126,739 | 667 | 21 | ||||||||||||
Effect
of changes in statutory income tax rate
|
- | - | 2,321,716 | 72,667 | ||||||||||||
Effect
of different subsidiary income tax rate
|
(59,303 | ) | (99,477 | ) | (491,379 | ) | (15,380 | ) | ||||||||
Impairment
loss on domestic marketable securities and domestic equity-method
investee
|
- | 723,837 | - | - | ||||||||||||
Non-deductible
expense and others
|
(10,002 | ) | 721,825 | (699,370 | ) | (21,889 | ) | |||||||||
Income
tax expense (benefit)
|
3,053,124 | 2,579,576 | (1,359,533 | ) | (42,552 | ) |
(ii)
|
The
components of deferred income tax assets and liabilities were as
follows:
|
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Deferred
tax assets:
|
||||||||||||
Inventories
|
2,078,665 | 1,061,836 | 33,234 | |||||||||
Unrealized
loss and expenses
|
1,882,249 | 3,809,103 | 119,221 | |||||||||
Other
current liabilities
|
876,378 | 601,826 | 18,836 | |||||||||
Investment
tax credits
|
20,416,402 | 17,757,976 | 555,805 | |||||||||
Net
operating loss carryforwards
|
256,900 | 6,685,747 | 209,257 | |||||||||
Convertible
bonds
|
32,943 | 28,178 | 882 | |||||||||
Property,
plant and equipment
|
2,088,558 | 2,628,148 | 82,258 | |||||||||
Others
|
564,672 | 1,137,926 | 35,616 | |||||||||
Gross
deferred tax assets
|
28,196,767 | 33,710,740 | 1,055,109 | |||||||||
Valuation
allowance
|
(16,624,849 | ) | (19,855,487 | ) | (621,455 | ) | ||||||
Net
deferred tax assets
|
11,571,918 | 13,855,253 | 433,654 | |||||||||
Deferred
tax liabilities:
|
||||||||||||
Long-term
investment—equity method
|
(1,035,489 | ) | (1,672,344 | ) | (52,343 | ) | ||||||
Goodwill
|
(765,906 | ) | (839,121 | ) | (26,263 | ) | ||||||
Property,
plant and equipment
|
- | (1,453,849 | ) | (45,504 | ) | |||||||
Cumulative
translation adjustments
|
(773,427 | ) | (381,087 | ) | (11,928 | ) | ||||||
Others
|
(452,256 | ) | (283,602 | ) | (8,876 | ) | ||||||
Total
deferred tax liabilities
|
(3,027,078 | ) | (4,630,003 | ) | (144,914 | ) | ||||||
Net
deferred tax assets
|
8,544,840 | 9,225,250 | 288,740 |
December 31,
|
||||||||||||
2008
|
2009
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in
thousands)
|
||||||||||||
Deferred
tax assets—current
|
4,877,051 | 5,365,909 | 167,947 | |||||||||
Deferred
tax assets—noncurrent
|
6,556,452 | 8,294,282 | 259,601 | |||||||||
Deferred
tax liabilities—current
|
(267,355 | ) | (22,182 | ) | (694 | ) | ||||||
Deferred
tax liabilities—noncurrent
|
(2,621,308 | ) | (4,412,759 | ) | (138,114 | ) | ||||||
8,544,840 | 9,225,250 | 288,740 |
(iii)
|
Summary
of total income taxes (benefit):
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Income
tax expense (benefit) from continuing operations
|
3,053,124 | 2,579,576 | (1,359,533 | ) | (42,552 | ) | ||||||||||
Other
comprehensive income
|
331,665 | 183,268 | (179,004 | ) | (5,603 | ) | ||||||||||
Tax
benefit allocated to reduce goodwill
|
(1,215,980 | ) | (1,524,387 | ) | - | - | ||||||||||
Total
income tax (benefit)
|
2,168,809 | 1,238,457 | (1,538,537 | ) | (48,155 | ) |
(iv)
|
Accounting
for uncertainty in income taxes:
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Balance
at beginning of year
|
- | 709,134 | - | - | ||||||||||||
Increase
related to prior-year tax positions
|
709,134 | - | 3,368 | 105 | ||||||||||||
Decrease
related to prior-year tax positions
|
- | (309,327 | ) | - | - | |||||||||||
Settlements
|
- | (399,807 | ) | - | - | |||||||||||
Balance
at end of year
|
709,134 | - | 3,368 | 105 |
(5)
|
Property,
plant and equipment
|
December 31, 2008
|
||||||||||||
Cost
|
Accumulated
depreciation
|
Carrying
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands)
|
||||||||||||
Land
|
6,187,337 | - | 6,187,337 | |||||||||
Buildings
|
72,120,009 | (16,159,543 | ) | 55,960,466 | ||||||||
Machinery
and equipment
|
509,371,848 | (268,798,291 | ) | 240,573,557 | ||||||||
Other
equipment and general assets
|
37,233,663 | (28,481,052 | ) | 8,752,611 | ||||||||
Construction
in progress
|
12,299,311 | - | 12,299,311 | |||||||||
Prepayments
for purchases of land and equipment
|
60,184,861 | - | 60,184,861 | |||||||||
697,397,029 | (313,438,886 | ) | 383,958,143 |
December 31, 2009
|
||||||||||||
Cost
|
Accumulated
depreciation
|
Carrying
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands)
|
||||||||||||
Land
|
7,805,694 | - | 7,805,694 | |||||||||
Buildings
|
|
89,175,146 | (21,493,284 | ) | 67,681,862 | |||||||
Machinery
and equipment
|
620,736,569 | (354,761,499 | ) | 265,975,070 | ||||||||
Other
equipment and general assets
|
43,179,551 | (35,406,845 | ) | 7,772,706 | ||||||||
Construction
in progress
|
9,773,502 | - | 9,773,502 | |||||||||
Prepayments
for purchases of land and equipment
|
26,562,725 | - | 26,562,725 | |||||||||
797,233,187 | (411,661,628 | ) | 385,571,559 |
(6)
|
The
changes in the components of accumulated other comprehensive income (loss)
were as follows:
|
Derivative
and
hedging
activities
|
Unrealized
gains
(losses) on
securities
|
Cumulative
translation
adjustments
|
Defined
benefit
plan
|
Accumulated
other
comprehensive
income (loss)
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Balance
at December 31, 2006
|
(104,907 | ) | 145,607 | 399,931 | (234,510 | ) | 206,121 | |||||||||||||
Net
current-period change
|
290,193 | 1,436,558 | 646,134 | 110,991 | 2,483,876 | |||||||||||||||
Balance
at December 31, 2007
|
185,286 | 1,582,165 | 1,046,065 | (123,519 | ) | 2,689,997 | ||||||||||||||
Net
current-period change
|
(727,376 | ) | (1,693,174 | ) | 1,277,232 | (18,548 | ) | (1,161,866 | ) | |||||||||||
Balance
at December 31, 2008
|
(542,090 | ) | (111,009 | ) | 2,323,297 | (142,067 | ) | 1,528,131 | ||||||||||||
Net
current-period change
|
226,874 | 1,680,476 | (611,237 | ) | (120,856 | ) | 1,175,257 | |||||||||||||
Balance
at December 31, 2009
|
(315,216 | ) | 1,569,467 | 1,712,060 | (262,923 | ) | 2,703,388 |
For the year ended December 31,
2007
|
||||||||||||
Before
tax
amount
|
Tax
(expense)
benefit
|
Net-of-tax
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
Derivative
and hedging activities
|
357,891 | (67,698 | ) | 290,193 | ||||||||
Unrealized
gains on securities
|
1,452,272 | - | 1,452,272 | |||||||||
Less:
reclassification adjustment for gains realized in income
|
(15,714 | ) | - | (15,714 | ) | |||||||
Cumulative
translation adjustments
|
893,121 | (246,987 | ) | 646,134 | ||||||||
Defined
benefit plan
|
127,971 | (16,980 | ) | 110,991 | ||||||||
Net
current-period changes
|
2,815,541 | (331,665 | ) | 2,483,876 |
For the year ended December 31,
2008
|
||||||||||||
Before
tax
amount
|
Tax
(expense)
benefit
|
Net-of-tax
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
Derivative
and hedging activities
|
(961,446 | ) | 234,070 | (727,376 | ) | |||||||
Unrealized
losses on securities
|
(1,652,757 | ) | - | (1,652,757 | ) | |||||||
Less:
reclassification adjustment for gains realized in income
|
(40,417 | ) | - | (40,417 | ) | |||||||
Cumulative
translation adjustments
|
1,702,116 | (424,884 | ) | 1,277,232 | ||||||||
Defined
benefit plan
|
(26,094 | ) | 7,546 | (18,548 | ) | |||||||
Net
current-period changes
|
(978,598 | ) | (183,268 | ) | (1,161,866 | ) |
For the year ended December 31,
2009
|
||||||||||||
Before
tax
amount
|
Tax
(expense)
benefit
|
Net-of-tax
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
Derivative
and hedging activities
|
299,014 | (72,140 | ) | 226,874 | ||||||||
Unrealized
gains on securities
|
2,054,848 | - | 2,054,848 | |||||||||
Less:
reclassification adjustment for gains realized in income
|
(374,372 | ) | - | (374,372 | ) | |||||||
Cumulative
translation adjustments
|
(809,581 | ) | 198,344 | (611,237 | ) | |||||||
Defined
benefit plan
|
(173,656 | ) | 52,800 | (120,856 | ) | |||||||
Net
current-period changes
|
996,253 | 179,004 | 1,175,257 |
|
(7)
|
Product
revenue information
|
For the year ended December
31,
|
||||||||||||||||
2007
|
2008
|
2009
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
millions)
|
||||||||||||||||
Panels
for computer products:
|
||||||||||||||||
Panels
for notebook computers
|
89,031 | 81,100 | 60,432 | 1,891 | ||||||||||||
Panels
for desktop monitors
|
133,278 | 93,097 | 68,431 | 2,142 | ||||||||||||
Total
panels for computer products
|
222,309 | 174,197 | 128,863 | 4,033 | ||||||||||||
Panels
for LCD televisions
|
200,573 | 188,162 | 166,223 | 5,203 | ||||||||||||
Panels
for consumer electronics products
|
43,023 | 42,599 | 45,131 | 1,413 | ||||||||||||
Panels
for industrial products
|
11,988 | 13,665 | 1,993 | 62 | ||||||||||||
Other(1)
|
2,291 | 5,305 | 16,523 | 517 | ||||||||||||
Total
|
480,184 | 423,928 | 358,733 | 11,228 |
|
(1)
|
Includes
revenues generated from sales of raw materials, components, other TFT-LCD
panel products, solar module and from service
charges.
|
|
(8)
|
Basic
and diluted (L) EPS
|
For the year ended December
31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands, except for per share data)
|
||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics
Corp.
|
45,355,480 | 13,089,654 | (28,670,321 | ) | ||||||||
Weighted-average
number of shares outstanding during the year—retroactively
adjusted:
|
||||||||||||
Shares
of common stock at beginning of year
|
7,573,403 | 7,865,201 | 8,505,720 | |||||||||
Employee
stock options
|
1,138 | 419 | - | |||||||||
Issuance
of common stock for conversion of bonds
|
26,126 | 2,398 | - | |||||||||
Issuance
of shareholders’ stock dividends and employee stock bonus
|
175,206 | 487,971 | 279,458 | |||||||||
Retroactive
adjustment for capitalization of retained earnings
|
633,734 | 250,680 | - | |||||||||
8,409,607 | 8,606,669 | 8,785,178 | ||||||||||
Basic
(L) EPS:
|
||||||||||||
Net
income (loss)
|
5.39 | 1.52 | (3.26 | ) |
For the year ended December
31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands, except for per share data)
|
||||||||||||
Net
income (loss) attributable to stockholders of AU Optronics Corp. for
computing diluted EPS:
|
||||||||||||
Net
income (loss)
|
45,355,480 | 13,089,654 | (28,670,321 | ) | ||||||||
Effect
of dilutive potential common stock related to convertible
bonds
|
208,622 | 39,792 | - | |||||||||
45,564,102 | 13,129,446 | (28,670,321 | ) |
For the year ended December
31,
|
||||||||||||
2007
|
2008
|
2009
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands, except for per share data)
|
||||||||||||
Weighted-average
number of shares outstanding during the year—retroactively adjusted
(including the effect of dilutive potential common stock):
|
||||||||||||
Shares
of common stock at beginning of year
|
7,573,403 | 7,865,201 | 8,505,720 | |||||||||
Employee
stock options
|
1,138 | 419 | - | |||||||||
Issuance
of common stock for conversion of bonds
|
26,126 | 2,398 | - | |||||||||
Issuance
of shareholders’ stock dividends and employee stock bonus
|
175,205 | 487,971 | 279,458 | |||||||||
Effect
of dilutive potential common stock related to stock
options
|
547 | 104 | - | |||||||||
Effect
of dilutive potential common stock related convertible
bonds
|
377,304 | 204,708 | - | |||||||||
Retroactive
adjustment of capitalization of retained earnings
|
664,529 | 256,824 | - | |||||||||
8,818,252 | 8,817,625 | 8,785,178 | ||||||||||
Diluted
(L)EPS:
|
||||||||||||
Net
income (loss)
|
5.17 | 1.49 | (3.26 | ) |
|
(9)
|
Goodwill
and other intangible assets
|
(i)
|
Goodwill
|
For the year ended December
31,
|
|||||||||||||
2008
|
2009
|
||||||||||||
NT$
|
NT$
|
US$
|
|||||||||||
(in
thousands)
|
|||||||||||||
Balance
at beginning of year
|
23,751,714 | 22,227,327 | 695,691 | ||||||||||
Tax
benefit allocated to reduce goodwill
|
(1,524,387 | ) | - | - | |||||||||
Balance
at end of year
|
22,227,327 | 22,227,327 | 695,691 |
(ii)
|
Other
intangible assets
|
December 31, 2008
|
||||||||||||
Cost
|
Accumulated
amortization
|
Carrying
amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in
thousands)
|
||||||||||||
Amortizable
intangible assets:
|
||||||||||||
Patents
and licensing fees
|
22,842,711 | 19,589,604 | 3,253,107 | |||||||||
Core
technologies
|
3,675,700 | 2,756,775 | 918,925 | |||||||||
26,518,411 | 22,346,379 | 4,172,032 |
December 31, 2009
|
||||||||||||||||
Cost
|
Accumulated
amortization
|
Carrying amount
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Amortizable
intangible assets:
|
||||||||||||||||
Patents
and licensing fees
|
23,110,842 | 20,301,641 | 2,809,201 | 87,925 | ||||||||||||
Core
technologies
|
3,675,700 | 3,675,700 | - | - | ||||||||||||
26,786,542 | 23,977,341 | 2,809,201 | 87,925 |
Year
|
December 31
|
|||||||
NT$
|
US$
|
|||||||
(in
thousands)
|
||||||||
2010
|
637,474 | 19,952 | ||||||
2011
|
384,577 | 12,037 | ||||||
2012
|
371,941 | 11,641 | ||||||
2013
|
343,282 | 10,745 | ||||||
2014
|
242,256 | 7,582 | ||||||
Thereafter
|
829,671 | 25,968 | ||||||
Total
|
2,809,201 | 87,925 |
(10)
|
Fair
value measurements
|
|
(i)
|
Level
1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the Company has the ability to access at the
measurement date. Assets utilizing Level 1 inputs include
available-for-sale securities that are actively
traded.
|
|
(ii)
|
Level
2 inputs are inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly or
indirectly. Assets and liabilities utilizing Level 2 inputs
include interest rate swap contracts, foreign currency forward contracts
and embedded derivative financial
instruments.
|
|
(iii)
|
Level
3 inputs are unobservable inputs for the asset or
liability.
|
Fair value measurements at reporting date
using
|
||||||||||||||||
|
December
31,
2008
|
Quoted
prices in
active
market for
identical
assets
(Level 1)
|
Significant
other
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)*
|
||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale
financial assets - current
|
470,301 | 470,301 | - | - | ||||||||||||
Foreign
currency forward contracts
|
1,067,531 | - | 1,067,531 | - | ||||||||||||
Interest
rate swap contracts
|
5,398 | - | 5,398 | - | ||||||||||||
Available-for-sale
financial assets - noncurrent
|
595,750 | 595,750 | - | - | ||||||||||||
Liabilities:
|
- | |||||||||||||||
Foreign
currency forward contracts
|
28,831 | - | 28,831 | - | ||||||||||||
Interest
rate swap contracts
|
829,389 | - | 829,389 | - | ||||||||||||
Embedded
derivative instrument liabilities
|
- | - | - | - |
Fair value measurements at reporting date
using
|
||||||||||||||||
December
31,
2009
|
Quoted
prices in
active
market for
identical
assets
(Level 1)
|
Significant
other
observable
inputs
(Level 2)
|
Significant
unobservable
inputs
(Level 3)*
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Foreign
currency forward contracts
|
378,252 | - | 378,252 | - | ||||||||||||
Interest
rate swap contracts
|
3,963 | - | 3,963 | - | ||||||||||||
Options
contracts
|
9,743 | - | 9,743 | - | ||||||||||||
Available-for-sale
financial assets - noncurrent
|
2,012,265 | 2,012,265 | - | - | ||||||||||||
Liabilities:
|
- | |||||||||||||||
Foreign
currency forward contracts
|
933,289 | - | 933,289 | - | ||||||||||||
Interest
rate swap contracts
|
515,847 | - | 515,847 | - | ||||||||||||
Options
contracts
|
154,513 | - | 154,513 | - | ||||||||||||
Embedded
derivative instrument liabilities
|
- | - | - | - |
|
*
|
There
were no financial assets and liabilities measured at fair value on a
recurring basis using significant unobservable inputs (Level 3) as defined
in FASB ASC Topic 820 (Statement No. 157) for the years ended December 31,
2008 and 2009.
|
(11)
|
Summarized
US GAAP financial information about equity-method
investees:
|
As
of and for the years
ended December 31,
|
||||||||
2007
|
2008
|
|||||||
NT$
|
NT$
|
|||||||
(in
millions)
|
||||||||
Current
assets
|
79,801 | 92,391 | ||||||
Noncurrent
assets
|
70,662 | 80,219 | ||||||
Current
liabilities
|
67,516 | 85,029 | ||||||
Long-term
liabilities
|
34,579 | 30,836 | ||||||
Noncontrolling
interests
|
3,806 | 7,737 | ||||||
Stockholders’
equity
|
44,562 | 49,008 | ||||||
Net
sales
|
190,185 | 210,901 | ||||||
Gross
profit
|
19,615 | 16,667 | ||||||
Net
income (loss)
|
5,597 | (7,524 | ) |