o
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2010
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ________________ to ________________
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o
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of event requiring this shell company report ________________
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AU OPTRONICS CORP.
(Translation of Registrant’s name into English)
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TAIWAN, REPUBLIC OF CHINA
(Jurisdiction of incorporation or organization)
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Andy Yang
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1 Li-Hsin Road 2
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Hsinchu Science Park
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Hsinchu, Taiwan
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Republic of China
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Telephone No.: +886-3-500-8800
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Facsimile No.: +886-3-564-3370
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Email: IR@auo.com
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(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
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Title of each class
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Name of each exchange on which registered
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Common Shares of par value NT$10.00 each
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The New York Stock Exchange, Inc.*
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*
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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
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1
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2
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3
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3
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3
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3
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3
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27
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28
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37
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60
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101
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102
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102
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102
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105
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105
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105
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106
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·
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the cyclical nature of our industry;
|
·
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further declines in average selling prices;
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·
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litigation and regulatory investigations against us;
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·
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our dependence on introducing new products on a timely basis;
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·
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our dependence on growth in the demand for our products;
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·
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our continued ability to achieve high capacity utilization rates;
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·
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our dependence on a small number of customers for a substantial portion of our net sales;
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·
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our ability to allocate capacity efficiently and in a timely manner;
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·
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our ability to successfully expand our capacity;
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·
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our ability to obtain capital resources for our expansion plans;
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·
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our ability to compete effectively;
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·
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our dependence on the outsourcing of manufacturing by brand companies to original equipment manufacturing service providers;
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·
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our ability to manage our growth effectively;
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·
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our ability to expand into new businesses, industries or internationally;
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·
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our ability to undertake mergers and acquisitions or investments;
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·
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our dependence on key personnel;
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·
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our relationship with our affiliates;
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·
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our ability to acquire sufficient raw materials and key components and obtain equipment and services from our suppliers in suitable quantity and quality;
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·
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changes in technology and competing products;
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·
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possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict;
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·
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general political, economic, financial and regulatory conditions;
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·
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fluctuations in foreign currency exchange rates; and
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·
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other factors in the “Risk Factors” section in this annual report. Please see “Item 3. Key Information—3.D. Risk Factors.”
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Year Ended and As of December 31,
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||||||||||||||||||||||||
2006
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2007
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2008
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2009
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2010
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||||||||||||||||||||
NT$
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NT$
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NT$
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NT$
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NT$
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US$
|
|||||||||||||||||||
(in millions, except percentages and per share and per ADS data)
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||||||||||||||||||||||||
Consolidated Statements of Operations:
|
||||||||||||||||||||||||
ROC GAAP
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||||||||||||||||||||||||
Net sales
|
293,106.8 | 480,183.6 | 423,928.2 | 359,331.3 | 467,158.0 | 16,031.5 | ||||||||||||||||||
Gross profit
|
29,850.3 | 86,178.2 | 55,327.9 | 7,040.9 | 36,298.6 | 1,245.7 | ||||||||||||||||||
Operating expenses
|
15,634.0 | 22,903.5 | 22,235.6 | 22,279.9 | 25,801.9 | 885.4 | ||||||||||||||||||
Operating income (loss)
|
14,216.3 | 63,274.8 | 33,092.3 | (15,239.1 | ) | 10,496.7 | 360.2 | |||||||||||||||||
Earnings (loss) before income tax and cumulative effect of changes in accounting principles
|
10,200.3 | 58,563.8 | 26,270.9 | (27,267.4 | ) | 8,596.0 | 295.0 | |||||||||||||||||
Income tax (expense) benefit
|
(1,068.3 | ) | (2,087.9 | ) | (4,629.1 | ) | 22.6 | (1,187.9 | ) | (40.8 | ) | |||||||||||||
Cumulative effect of changes in accounting principles(1)
|
(38.6 | ) | – | – | – | – | – | |||||||||||||||||
Net income (loss)
|
9,093.4 | 56,475.9 | 21,641.8 | (27,244.8 | ) | 7,408.1 | 254.2 | |||||||||||||||||
Weighted average shares outstanding—Basic
|
7,397.9 | 8,695.1 | 8,760.3 | 8,796.7 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Weighted average shares outstanding—Diluted (2)
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7,511.3 | 9,115.8 | 9,111.1 | 8,796.7 | 8,990.5 | 8,990.5 | ||||||||||||||||||
Earnings (loss) per share—Basic
|
1.23 | 6.49 | 2.43 | (3.04 | ) | 0.76 | 0.03 | |||||||||||||||||
Earnings (loss) per share—Diluted(2)
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1.14 | 6.16 | 2.34 | (3.04 | ) | 0.70 | 0.02 | |||||||||||||||||
Earnings (loss) per ADS equivalent—Basic
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12.31 | 64.88 | 24.28 | (30.43 | ) | 7.58 | 0.26 | |||||||||||||||||
Earnings (loss) per ADS equivalent—Diluted(2)
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11.41 | 61.64 | 23.39 | (30.43 | ) | 6.98 | 0.24 | |||||||||||||||||
Consolidated Balance Sheets:
|
||||||||||||||||||||||||
ROC GAAP
|
||||||||||||||||||||||||
Current assets
|
152,771.4 | 217,878.3 | 146,293.1 | 196,460.8 | 204,985.6 | 7,034.5 | ||||||||||||||||||
Property, plant and equipment
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381,550.7 | 363,835.1 | 389,348.3 | 390,750.1 | 383,867.7 | 13,173.2 |
Year Ended and As of December 31,
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||||||||||||||||||||||||
2006
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2007
|
2008
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2009
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2010
|
||||||||||||||||||||
NT$
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NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in millions, except percentages and per share and per ADS data)
|
||||||||||||||||||||||||
Consolidated Balance Sheets:
|
||||||||||||||||||||||||
ROC GAAP (continued)
|
||||||||||||||||||||||||
Goodwill and intangible assets
|
20,142.8 | 19,554.4 | 15,548.1 | 14,293.3 | 14,062.0 | 482.6 | ||||||||||||||||||
Total assets
|
578,157.9 | 617,459.2 | 566,935.6 | 622,612.8 | 629,315.8 | 21,596.3 | ||||||||||||||||||
Current liabilities
|
167,345.6 | 174,520.9 | 152,484.7 | 202,725.4 | 189,378.6 | 6,498.9 | ||||||||||||||||||
Long-term liabilities
|
179,716.0 | 142,097.2 | 115,170.9 | 144,829.2 | 157,287.0 | 5,397.6 | ||||||||||||||||||
Total liabilities
|
347,081.6 | 316,639.4 | 267,676.9 | 347,693.8 | 346,991.2 | 11,907.7 | ||||||||||||||||||
Capital stock
|
75,734.0 | 78,177.1 | 85,057.2 | 88,270.5 | 88,270.5 | 3,029.2 | ||||||||||||||||||
Total stockholders’ equity
|
231,076.3 | 300,819.9 | 299,258.7 | 274,919.0 | 282,324.6 | 9,688.6 | ||||||||||||||||||
Other Financial Data:
|
||||||||||||||||||||||||
ROC GAAP
|
||||||||||||||||||||||||
Gross margin(3)
|
10.2 | % | 17.9 | % | 13.1 | % | 2.0 | % | 7.8 | % | 7.8 | % | ||||||||||||
Operating margin(4)
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4.9 | % | 13.2 | % | 7.8 | % | (4.2 | )% | 2.2 | % | 2.2 | % | ||||||||||||
Net margin(5)
|
3.1 | % | 11.8 | % | 5.1 | % | (7.6 | )% | 1.6 | % | 1.6 | % | ||||||||||||
Capital expenditures
|
87,246.7 | 65,136.7 | 98,355.2 | 61,046.9 | 84,621.0 | 2,903.9 | ||||||||||||||||||
Depreciation and amortization
|
52,760.2 | 81,705.6 | 81,188.4 | 90,107.6 | 89,135.7 | 3,058.9 | ||||||||||||||||||
Cash dividend paid
|
1,749.2 | 1,514.8 | 19,670.6 | 2,551.7 | – | – | ||||||||||||||||||
Cash flows from operating activities
|
68,526.7 | 156,926.9 | 132,057.5 | 57,041.0 | 90,735.6 | 3,113.8 | ||||||||||||||||||
Cash flows from investing activities
|
(83,300.6 | ) | (66,123.1 | ) | (101,257.4 | ) | (66,616.7 | ) | (87,218.3 | ) | (2,993.1 | ) | ||||||||||||
Cash flows from financing activities
|
32,550.8 | (44,816.6 | ) | (37,435.6 | ) | 11,925.3 | 878.2 | 30.1 | ||||||||||||||||
Segment Data:
|
||||||||||||||||||||||||
ROC GAAP
|
||||||||||||||||||||||||
Net sales
|
||||||||||||||||||||||||
Display business
|
293,106.8 | 480,183.6 | 423,928.2 | 357,033.5 | 456,725.6 | 15,673.5 | ||||||||||||||||||
Solar business
|
– | – | – | 2,297.8 | 10,432.4 | 358.0 | ||||||||||||||||||
Operating income (loss)
|
||||||||||||||||||||||||
Display business
|
14,216.3 | 63,274.8 | 33,092.3 | (13,949.3 | ) | 13,102.7 | 449.6 | |||||||||||||||||
Solar business
|
– | – | – | (1,289.8 | ) | (2,606.0 | ) | (89.4 | ) |
Year Ended and As of December 31,
|
||||||||||||||||||||||||
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in millions, except percentages and per common share and per ADS data)
|
||||||||||||||||||||||||
Consolidated Statements of Operations:
|
||||||||||||||||||||||||
US GAAP
|
||||||||||||||||||||||||
Net sales
|
293,106.8 | 480,184.3 | 423,928.2 | 358,732.8 | 467,158.0 | 16,031.5 | ||||||||||||||||||
Gross profit
|
23,372.0 | 73,179.3 | 42,959.9 | 766.4 | 31,608.4 | 1,084.7 | ||||||||||||||||||
Operating expenses
|
15,819.3 | 21,328.3 | 22,811.7 | 29,076.1 | 26,209.2 | 899.4 | ||||||||||||||||||
Operating income (loss)
|
7,552.6 | 51,851.0 | 20,148.1 | (28,309.7 | ) | 5,399.2 | 185.3 | |||||||||||||||||
Earnings (loss) before income tax, extraordinary item and non-controlling interests
|
2,222.4 | 48,434.3 | 16,086.2 | (29,662.3 | ) | 5,468.4 | 187.7 | |||||||||||||||||
Income tax (expense) benefit
|
(1,059.2 | ) | (3,053.1 | ) | (2,579.6 | ) | 1,359.5 | (745.0 | ) | (25.6 | ) | |||||||||||||
Non-controlling interests in (loss) income
|
(10.0 | ) | 25.7 | 416.9 | 367.5 | 479.0 | 16.4 | |||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp.
|
1,173.2 | 45,355.5 | 13,089.7 | (28,670.3 | ) | 4,244.3 | 145.7 | |||||||||||||||||
Weighted average shares outstanding—Basic
|
7,089.0 | 8,409.6 | 8,606.7 | 8,785.2 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Weighted average shares outstanding—Diluted(2)
|
7,089.1 | 8,818.3 | 8,817.6 | 8,785.2 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Earnings (loss) per share—Basic
|
0.17 | 5.39 | 1.52 | (3.26 | ) | 0.48 | 0.02 |
Year Ended and As of December 31,
|
||||||||||||||||||||||||
2006
|
2007
|
2008
|
2009
|
2010
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in millions, except percentages and per common share and per ADS data)
|
||||||||||||||||||||||||
Consolidated Statements of Operations
|
||||||||||||||||||||||||
US GAAP (continued)
|
||||||||||||||||||||||||
Earnings (loss) per share—Diluted(2)
|
0.17 | 5.17 | 1.49 | (3.26 | ) | 0.48 | 0.02 | |||||||||||||||||
Earnings (loss) per ADS equivalent—Basic
|
1.65 | 53.93 | 15.21 | (32.63 | ) | 4.81 | 0.17 | |||||||||||||||||
Earnings (loss) per ADS equivalent—Diluted(2)
|
1.65 | 51.67 | 14.89 | (32.63 | ) | 4.81 | 0.17 | |||||||||||||||||
Consolidated Balance Sheets:
|
||||||||||||||||||||||||
US GAAP
|
||||||||||||||||||||||||
Current assets
|
150,855.5 | 215,929.0 | 145,522.3 | 195,902.9 | 205,289.0 | 7,044.9 | ||||||||||||||||||
Property, plant and equipment
|
380,859.8 | 361,197.2 | 383,958.1 | 385,571.6 | 376,453.2 | 12,918.8 | ||||||||||||||||||
Goodwill and intangible assets
|
33,188.5 | 30,334.7 | 26,399.4 | 25,036.5 | 24,834.8 | 852.3 | ||||||||||||||||||
Total assets
|
588,431.5 | 623,655.0 | 568,985.6 | 626,141.8 | 632,054.4 | 21,690.3 | ||||||||||||||||||
Current liabilities
|
169,543.8 | 180,765.1 | 152,647.2 | 203,120.9 | 190,887.9 | 6,550.7 | ||||||||||||||||||
Long-term liabilities
|
179,927.6 | 142,182.1 | 115,209.3 | 145,004.4 | 157,792.8 | 5,415.0 | ||||||||||||||||||
Total liabilities
|
349,471.4 | 322,947.2 | 267,856.5 | 348,125.3 | 348,680.7 | 11,965.7 | ||||||||||||||||||
Non-controlling interests in subsidiaries
|
342.0 | 8,842.0 | 7,737.2 | 11,747.5 | 12,983.7 | 445.6 | ||||||||||||||||||
Total equity attributable to stockholders of AU Optronics Corp.
|
238,618.1 | 291,865.8 | 293,391.9 | 266,269.0 | 270,390.1 | 9,279.0 | ||||||||||||||||||
Other Financial Data:
|
||||||||||||||||||||||||
US GAAP
|
||||||||||||||||||||||||
Gross margin(3)
|
8.0 | % | 15.2 | % | 10.1 | % | 0.2 | % | 6.8 | % | 6.8 | % | ||||||||||||
Operating margin(4)
|
2.6 | % | 10.8 | % | 4.8 | % | (7.9 | )% | 1.2 | % | 1.2 | % | ||||||||||||
Net margin(5)
|
0.4 | % | 9.4 | % | 3.1 | % | (8.0 | )% | 0.9 | % | 0.9 | % | ||||||||||||
Capital expenditures
|
87,408.9 | 65,300.5 | 98,330.6 | 61,331.5 | 85,427.7 | 2,931.6 | ||||||||||||||||||
Depreciation and amortization
|
54,940.0 | 84,984.5 | 83,680.4 | 91,506.9 | 91,420.9 | 3,137.3 | ||||||||||||||||||
Cash flows from operating activities
|
67,955.3 | 156,942.2 | 132,044.2 | 58,566.1 | 90,852.2 | 3,117.8 | ||||||||||||||||||
Cash flows from investing activities
|
(83,130.7 | ) | (66,313.7 | ) | (101,242.4 | ) | (68,550.3 | ) | (87,866.1 | ) | (3,015.3 | ) | ||||||||||||
Cash flows from financing activities
|
32,951.7 | (44,816.6 | ) | (37,473.2 | ) | 11,467.6 | 1,393.9 | 47.8 |
(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 under both ROC GAAP and US GAAP was not calculated due to the anti-dilutive effect of stock options and convertible bonds. Diluted earnings per share in 2010 under US GAAP was not calculated due to the anti-dilutive effect of 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.
|
Exchange Rate
|
||||||||||||||||
Average
|
High
|
Low
|
Period-End
|
|||||||||||||
(of month-end rates for years)
|
||||||||||||||||
2006
|
NT$32.51 | NT$33.31 | NT$31.28 | NT$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 | ||||||||||||
2010
|
31.49 | 32.43 | 29.14 | 29.14 | ||||||||||||
October
|
30.83 | 31.30 | 30.60 | 30.62 | ||||||||||||
November
|
30.31 | 30.52 | 30.05 | 30.47 | ||||||||||||
December
|
29.90 | 30.37 | 29.14 | 29.14 | ||||||||||||
2011 (through April 15)
|
29.27 | 29.76 | 28.78 | 29.04 | ||||||||||||
January
|
29.11 | 29.36 | 28.98 | 29.03 | ||||||||||||
February
|
29.28 | 29.76 | 28.78 | 29.74 | ||||||||||||
March
|
29.49 | 29.63 | 29.35 | 29.40 | ||||||||||||
April (through April 15)
|
29.07 | 29.31 | 28.92 | 29.04 |
·
|
our ability to develop and introduce new products to meet customers’ needs in a timely manner;
|
·
|
our ability to develop or acquire and implement new manufacturing processes and product technologies;
|
·
|
our ability to control our fixed and variable costs and operating expenses;
|
·
|
our ability to expand capacity, our ability to manage our product mix;
|
·
|
our ability to obtain raw materials and components at acceptable prices and in a timely manner;
|
·
|
lower than expected growth in demand for TFT-LCD panels resulting in oversupply in the market;
|
·
|
our ability to obtain adequate external financing on satisfactory terms; and
|
·
|
fines and penalties payable relating to the alleged violation of antitrust and competition laws.
|
·
|
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;
|
·
|
changes in general political, economic, financial and legal conditions, such as the impact of the recent global financial crisis on economic growth and the resulting slowdown in the global economy; 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.
|
·
|
problems integrating the acquired operations, technologies or products into our existing business and products;
|
·
|
diversion of management’s time and attention from our core business;
|
·
|
conflicts with joint venture partners;
|
·
|
adverse effects on our existing business relationships with customers;
|
·
|
need for financial resources above our planned investment levels;
|
·
|
failures in recognizing anticipated synergies;
|
·
|
difficulties in retaining business relationships with suppliers and customers of the acquired company;
|
·
|
risks associated with entering markets in which we lack experience;
|
·
|
potential loss of key employees of the acquired company; and
|
·
|
potential write-offs of acquired assets.
|
·
|
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.
|
(1)
|
we pay stock dividends on our shares;
|
(2)
|
we make a free distribution of shares;
|
(3)
|
ADS holders exercise preemptive rights in the event of capital increases for cash; or
|
(4)
|
investors purchase our shares, directly or through the depositary, on the Taiwan Stock Exchange, and deliver our shares to the custodian for deposit into our ADS facility, or our existing shareholders deliver our shares to the custodian for deposit into our ADS facility.
|
·
|
Computer products, which typically utilize display panels ranging from 10.1 inches to 27 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, and e-readers.
|
·
|
LCD television, which typically utilizes display panels with panel size of 18.5 inches to 65 inches. We commenced the production of display panels for LCD television in the fourth quarter of 2002.
|
Year Ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
(Panels in thousands)
|
||||||||||||
Panels for Computer Products
|
||||||||||||
Panels for notebook computers
|
32,881.6 | 35,225.9 | 44,825.9 | |||||||||
Panels for desktop monitors
|
28,492.0 | 27,000.7 | 31,525.0 | |||||||||
Total panels for computer products
|
61,373.6 | 62,226.6 | 76,350.9 | |||||||||
Panels for Consumer Electronics Products
|
187,483.4 | 232,524.0 | 225,787.1 | |||||||||
Panels for LCD Television
|
18,826.2 | 22,846.7 | 31,412.7 | |||||||||
Total
|
267,683.2 | 317,597.3 | 333,550.7 |
Year Ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in millions)
|
||||||||||||||||
Panels for Computer Products
|
||||||||||||||||
Panels for notebook computers
|
81,100.6 | 60,432.0 | 70,390.3 | 2,415.6 | ||||||||||||
Panels for desktop monitors
|
93,096.9 | 68,431.1 | 77,942.3 | 2,674.8 | ||||||||||||
Total panels for computer products
|
174,197.5 | 128,863.1 | 148,332.6 | 5,090.4 | ||||||||||||
Panels for Consumer Electronics Products
|
55,579.0 | 46,939.7 | 56,401.7 | 1,935.5 | ||||||||||||
Panels for LCD Television
|
188,846.2 | 166,407.7 | 228,643.8 | 7,846.4 | ||||||||||||
Others(1)
|
5,305.5 | 17,120.8 | 33,779.9 | 1,159.2 | ||||||||||||
Total
|
423,928.2 | 359,331.3 |
(2)
|
467,158.0 | 16,031.5 |
(1)
|
Includes sales generated from panels for solar modules, from sales of raw materials, components, single crystal silicon wafers and ingots and from service charges.
|
(2)
|
The amount is under ROC GAAP. Under US GAAP, the total amount of net sales was NT$358,732.8 million. The difference was due to a difference in accounting treatment for acquisition date of our equity investment in M. Setek under ROC GAAP versus US GAAP. See note 28 to our consolidated financial statements for information relating to the nature and effect of significant differences between ROC GAAP and US GAAP as they relate to us.
|
Year Ended December 31,
|
||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||
Region
|
Net sales
|
%
|
Net sales
|
%
|
Net sales
|
%
|
||||||||||||||||||
(in NT$ millions, except percentages)
|
||||||||||||||||||||||||
Taiwan
|
184,895 | 43.6 | % | 153,643.4 | 42.8 | % | 182,702.1 | 39.1 | % | |||||||||||||||
PRC
|
82,627 | 19.5 | % | 98,430.5 | 27.4 | % | 140,976.5 | 30.2 | % | |||||||||||||||
Japan
|
11,835 | 2.8 | % | 7,882.2 | 2.2 | % | 22,985.6 | 4.9 | % | |||||||||||||||
Asia(1)
|
78,117 | 18.4 | % | 59,174.5 | 16.5 | % | 86,858.8 | 18.6 | % | |||||||||||||||
Europe
|
36,450 | 8.6 | % | 19,221.8 | 5.3 | % | 16,199.1 | 3.5 | % | |||||||||||||||
United States
|
26,071 | 6.2 | % | 18,702.2 | 5.2 | % | 11,698.9 | 2.5 | % | |||||||||||||||
Others
|
3,933 | 0.9 | % | 2,276.7 | 0.6 | % | 5,737.0 | 1.2 | % | |||||||||||||||
Total
|
423,928 | 100.0 | % | 359,331.3 | 100.0 | % | 467,158.0 | 100.0 | % |
(1)
|
Excludes Taiwan, PRC and Japan.
|
Glass Substrates
|
Liquid Crystals
|
Color Filters
|
Polarizer
|
Backlight Units
|
Driver-integrated Circuits
|
Asahi Glass
|
Chisso Corporation
|
Cando Corporation(1)
|
BenQ Material Corporation(3)
|
Coretronic
|
Nippon Electric Company
|
Corning Taiwan
|
DIC Corporation
|
Dai Nippon Printing
|
Nitto Denko
|
Darwin Precisions(4)
|
Novatek
|
Nippon Electric Glass
|
Merck
|
Toray Industries, Inc.
|
Sumika Technology Co., Ltd.
|
Forhouse(5)
|
Orise
|
Toppan CFI(2)
|
Radiant
Opto-Electronics
|
Raydium Semiconductor(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)
|
BenQ Material Corporation 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)
|
Radium Semiconductor is our investee.
|
·
|
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
|
·
|
BOE Technology Group Co., Ltd., InfoVision Optoelectronics (Kunshan) Co., Ltd., Century Corporation Co., Ltd. China, Shanghai Tianma Micro Electronics Co., Ltd., Shenzhen Tianma Micro Electronics Co., Ltd., Shenzhen China Star Optoelectronics Technology Co., Ltd. and Nanjing CEC-PANDA LCD Technology 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$969.0
|
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.
|
Holding and sales support in South Asia
|
Singapore
|
SGD86.0
|
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.
|
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
|
EUR40.0
|
100%(1)
|
AUO Energy (Suzhou) Corp.
|
Design and installation of solar modules
|
PRC
|
RMB8.2
|
100% (8)
|
AUO Energy (Tianjin) Corp.
|
Design and installation of solar modules
|
PRC
|
RMB53.9
|
100% (8)
|
AUO Green Energy America Corp.
|
Holding company and sales support in America
|
United States
|
US$0.01
|
100% (8)
|
AUO Green Energy Europe B.V.
|
Holding company and sales support in Europe
|
Netherlands
|
EUR0.018
|
100% (8)
|
BriView (Xiamen) Corp.
|
Manufacturing and sale of liquid crystal products and related parts
|
PRC
|
RMB204.4
|
100%(5)
|
Darwin Precisions (L) Corp.
|
Holding and trading company
|
Malaysia
|
US$85.0
|
100%(2)
|
Darwin Precisions (Hong Kong) Limited
|
Holding company
|
Hong Kong
|
US$62.0
|
100%(3)
|
Darwin Precisions (Suzhou) Corp.
|
Manufacturing, assembly and sale of backlight modules and related components in the PRC
|
PRC
|
RMB127.5
|
100%(4)
|
Darwin Precisions (Xiamen) Corp.
|
Manufacturing, assembly and sale of backlight modules and related components in the PRC
|
PRC
|
RMB506.0
|
100%(4)
|
Darwin Precisions (Chengdu) Corp.
|
Manufacturing, assembly and sale of backlight modules and related components in the PRC
|
PRC
|
RMB53.9
|
100%(4)
|
Subsidiary
|
Main Activities
|
Jurisdiction of
Incorporation
|
Total Paid-in
Capital
|
Percentage of
Our Ownership
Interest
|
(in millions)
|
||||
Darwin Precisions (Qingdao) Corp.
|
Manufacturing, assembly and sale of backlight modules and related components in the PRC
|
PRC
|
RMB34.1
|
100%(4)
|
Darwin Precisions (Dongguan) Corp.
|
Manufacturing, assembly and sale of backlight modules and related components in the PRC
|
PRC
|
RMB54.2
|
100%(4)
|
BVCH Optronics (Sichuan) Corp.
|
Assembly and sale of TFT-LCD modules in the PRC
|
PRC
|
RMB100.0
|
51.0%(1)
|
Huizhou Bri-King Optronics Co., Ltd.
|
Assembly and sale of TFT-LCD modules in the PRC
|
PRC
|
RMB81.3
|
51.0%(1)
|
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.
|
Venture capital investment
|
ROC
|
NT$2,800.0
|
100%
|
Darwin Precisions Corp.
|
Manufacturing and sale of backlight modules
|
ROC
|
NT$4,203.9
|
61.33%(6)
|
Toppan CFI (Taiwan) Co., Ltd.
|
Manufacturing and sale of color filters
|
ROC
|
NT$15,363.0
|
49%(7)
|
BriView Electronics Corp.
(previously named BriView Technology Corp.)
|
Manufacturing and sale of liquid crystal products and related parts
|
ROC
|
NT$2,700.0
|
98.52%
|
BriView (L) Corp.
|
Holding and trading company
|
Malaysia
|
US$10.0
|
100%(1)
|
AUO Crystal Corp. (previously named AUO Energy Taiwan Corp.)
|
Design and installation of solar modules
|
ROC
|
NT$5,750.0
|
87.09%
|
AUO Crystal (Malaysia) Sdn. Bhd.
|
Manufacturing and sale of single crystal silicon wafers
|
Malaysia
|
US$10.00
|
100%(11)
|
M. Setek Co., Ltd.
|
Manufacturing of single crystal silicon wafers and ingots and sale of solar modules
|
Japan
|
JPY35,043.7
|
95.01%(10)
|
Darshin Microelectronics Inc.
|
IC design and sales
|
ROC
|
NT$30.0
|
66.67%(9)
|
AFPD Pte., Ltd.
|
Manufacturing LCD panels based on low temperature polysilicon technology
|
Singapore
|
US$283.9
|
100%(1)
|
(1)
|
Indirectly, through our 100% ownership of AU Optronics (L) Corp.
|
(2)
|
Indirectly, through our 61.33% ownership of 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)
|
38.09% held directly by us, 14.13% held indirectly by Konly Venture Corp. and 9.11% held indirectly by Ronly Venture Corp., respectively.
|
(7)
|
We consolidated Toppan CFI (Taiwan) Co., Ltd. in accordance with ROC SFAS No.7 and FASB ASC Subtopic 810-10 starting from fiscal year 2007. See note 28 to our consolidated financial statements.
|
(8)
|
Indirectly, through our 100% ownership of AU Optronics (Singapore) Pte. Ltd.
|
(9)
|
Indirectly, through our 100% ownership of Konly Venture Corp.
|
(10)
|
94.81% held indirectly by AU Optronics (L) Corp. and 0.20% held indirectly by AUO Crystal Corp., respectively.
|
(11)
|
Indirectly, through our 87.09% ownership of AUO Crystal Corp.
|
·
|
AUO Energy (Suzhou) Corp. In March 2010, we established a wholly-owned subsidiary, AUO Energy (Suzhou) Corp., which is mainly engaged in the design and installation of solar modules.
|
·
|
Darwin Precision (Chengdu) Corp. In March 2010, we established a wholly-owned subsidiary, Darwin Precision (Chengdu) Corp., which is mainly engaged in the manufacture, assembly and sale of backlight modules and related components.
|
·
|
BriView (Kunshan) Co., Ltd. In April 2010, we established a wholly-owned subsidiary, BriView (Kunshan) Co., Ltd., which is mainly engaged in the manufacture and sale of liquid crystal products and related parts.
|
·
|
BriView (Hefei) Co., Ltd. In April 2010, we established a wholly-owned subsidiary, BriView (Hefei) Co., Ltd., which is mainly engaged in the manufacture and sale of liquid crystal products and related parts.
|
·
|
Lextar Electronics Corp. In April 2010, our ownership interest in Lextar Electronics Corp. decreased to 46.29%, due to disproportionate participation in Lextar Electronics Corp.’s capital increase and partial disposal of investment. On June 30, 2010, Lextar Electronics Corp. re-elected its board of directors which resulted our lost control in its financial, operating and personnel policies. As a result, Lextar Electronics Corp. was no longer our subsidiary since then.
|
·
|
AUO Energy (Tianjin) Corp. In May 2010, we established a wholly-owned subsidiary, AUO Energy (Tianjin) Corp., which is mainly engaged in the design and installation of solar modules.
|
·
|
Darwin Precisions (Qingdao) Corp. In June 2010, we established a wholly-owned subsidiary, Darwin Precisions (Qingdao) Corp., which is mainly engaged in the manufacture, assembly and sale of backlight modules and related components.
|
·
|
Huizhou Bri-King Optronics Co., Ltd. In July 2010, AU Optronics (L) Corp. and TCL King Electrical Appliance (Huizhou) Co., Ltd. established Huizhou Bri-King Optronics Co., Ltd., in which AU Optronics (L) Corp. held 51% ownership interests. Huizhou Bri-King Optronics Co., Ltd. is mainly engaged in the assembly and sale of TFT-LCD modules.
|
·
|
AFPD Pte., Ltd. In July, 2010, AU Optronics (L) Corp. acquired 100% ownership interests of AFPD Pte., Ltd. that was formerly a subsidiary of Toshiba Mobile Display Co., Ltd. in Singapore. AFPD Pte., Ltd. is mainly engaged in the manufacturing of LCD panels based on low temperature polysilicon technology.
|
·
|
BriView (Xiamen) Corp. and BVCH Optronics (Sichuan) Corp. In July 2010, due to business structure reorganization, the holding companies of BriView (Xiamen) Corp. and BVCH Optronics (Sichuan) Corp. changed from AU Optronics (L) Corp. and BriView (L) Corp. to BriView (L) Corp. and AU Optronics (L) Corp., respectively.
|
·
|
Darwin Precisions (Dongguan) Corp. In August 2010, we established a wholly-owned subsidiary, Darwin Precisions (Dongguan) Corp., which is mainly engaged in the manufacture, assembly and sale of backlight modules and related components.
|
·
|
AUO Green Energy Europe B.V. In September 2010, we established a wholly-owned subsidiary, AUO Green Energy Europe B.V., which is a holding company for investments in clean energy business and provision of after-sale service in Europe.
|
·
|
AUO Green Energy America Corp. In October 2010, we established a wholly-owned subsidiary, AUO Green Energy America Corp., which is a holding company for investments in clean energy business and provision of after-sale service in the United States.
|
·
|
AUO Crystal (Malaysia) Sdn. Bhd. In November 2010, we established a wholly-owned subsidiary, AUO Crystal (Malaysia) Sdn. Bhd., which is mainly engaged in the manufacture and sale of single crystal silicon wafers.
|
·
|
Darwin Precisions (L) Corp. In November 2010, Darwin Precisions Corp.’s ownership interests in Darwin Precisions (L) Corp. increased from 75.88% to 100% when AU Optronics (L) Corp. transferred 24.12% ownership interests in common shares of Darwin Precisions (L) Corp. to Darwin Precisions Corp. due to group restructuring.
|
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)
|
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. 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(4)
|
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(2) 1,100x1,250/50,000(4) 1,100x1,300/70,000(4)
|
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
|
No. 228, Lungke St.,
Lungke Science Park,
Lungtan, 32542,
Taoyuan,
Taiwan, ROC*
|
867,955
|
1,500x1,850/120,000(5)
|
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(5)
1,100x1,300/120,000(4)
1,950x2,250/75,000(6)
1,950x2,250/60,000 (6)
2,200x2,500/40,000(7)
|
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)
|
10 Tampines Industrial
Avenue 3 Singapore
528798***
|
182,943
|
730x920/LTPS 45,000(3)
|
August 2002
|
Manufacturing of TFT-LCD panels
|
· Building is owned
· Land is leased (expires in December 2031)
|
No. 398, Suhong
Zhong Road
Suzhou
Industrial Park,
Suzhou, the PRC
|
413,035
|
N/A
|
July 2002
|
TFT-LCD 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*
|
54,417
|
N/A
|
October 2004
|
TFT-LCD 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
|
289,687
|
N/A
|
September 2007
|
TFT-LCD module and component assembly
|
· Building is owned
· Land is leased (expires in 2056)
|
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) **** |
||||
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)
|
Turanka 858/98a, Slatina,
627 00 Brno,
Czech Republic
|
9,312
|
N/A
|
August 2010
|
Solar module assembly
|
· Building is leased (expires in March 2014)
· Land is leased (expires in March 2014)
|
Brnianska 1, 91105 Trencin, Slovak Republic
|
124,819
|
N/A
|
April 2010
|
TFT-LCD module and TV set assembly
and related component
|
· Building is owned
l Land is owned
|
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
|
*
|
Facilities acquired through our merger with QDI.
|
**
|
Facilities acquired through our acquisition of M. Setek.
|
***
|
Facilities acquired through our acquisition of AFPD Pte., Ltd.
|
****
|
Not applicable to polysilicon, silicon wafer, ingot, solar cell and solar module products.
|
(1)
|
3.5-generation fab.
|
(2)
|
fourth-generation fab.
|
(3)
|
4.5-generation fab.
|
(4)
|
fifth-generation fab.
|
(5)
|
sixth-generation fab.
|
(6)
|
7.5-generation fab.
|
(7)
|
8.5-generation fab.
|
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Balance at beginning of year
|
1,255,033 | 1,145,135 | 118,329 | 4,061 | ||||||||||||
Provision charged to revenue
|
2,793,933 | 623,728 | 2,015,341 | 69,160 | ||||||||||||
Utilized
|
(2,903,831 | ) | (1,650,534 | ) | (1,351,663 | ) | (46,385 | ) | ||||||||
Balance at end of year
|
1,145,135 | 118,329 | 782,007 | 26,836 |
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Balance at beginning of year
|
317,183 | 99,333 | 95,998 | 3,294 | ||||||||||||
Provision charged to expense (reversed to income)
|
(187,011 | ) | (3,335 | ) | 20,534 | 705 | ||||||||||
Write-off
|
(30,839 | ) | – | (30,337 | ) | (1,041 | ) | |||||||||
Balance at end of year
|
99,333 | 95,998 | 86,195 | 2,958 |
Year Ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
%
|
%
|
%
|
||||||||||
Net sales
|
100.0 | 100.0 | 100.0 | |||||||||
Cost of goods sold
|
86.9 | 98.0 | 92.2 | |||||||||
Gross profit
|
13.1 | 2.0 | 7.8 | |||||||||
Operating expenses
|
5.3 | 6.2 | 5.6 | |||||||||
Selling
|
2.1 | 2.2 | 1.9 | |||||||||
General and administrative
|
1.9 | 2.3 | 2.3 | |||||||||
Research and development
|
1.3 | 1.7 | 1.4 | |||||||||
Operating income (loss)
|
7.8 | (4.2 | ) | 2.2 | ||||||||
Net non-operating expenses and losses
|
(1.6 | ) | (3.4 | ) | (0.4 | ) | ||||||
Earnings (loss) before income tax
|
6.2 | (7.6 | ) | 1.8 | ||||||||
Income tax expenses
|
1.1 | – | 0.2 | |||||||||
Net income (loss)
|
5.1 | (7.6 | ) | 1.6 |
For the year ended December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in millions)
|
||||||||||||
Net sales
|
||||||||||||
Display business
|
357,033.5 | 456,725.6 | 15,673.5 | |||||||||
Solar business
|
2,297.8 | 10,432.4 | 358.0 | |||||||||
Total
|
359,331.3 | 467,158.0 | 16,031.5 | |||||||||
Operating income (loss)
|
||||||||||||
Display business
|
(13,949.3 | ) | 13,102.7 | 449.6 | ||||||||
Solar business
|
(1,289.8 | ) | (2,606.0 | ) | (89.4 | ) | ||||||
Total
|
(15,239.1 | ) | 10,496.7 | 360.2 |
·
|
In July 2005, we entered into a NT$42.0 billion seven-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of funding the construction and purchase of machinery and equipment at our first 7.5-generation fab. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, 2010, NT$16.4 billion (US$0.6 billion) was outstanding under this credit facility. We issued NT$5.0 billion secured corporate bonds under this credit facility in March 2006.
|
·
|
In August 2006, we entered into a RMB2.8 billion and US$75.0 million seven-year syndicated credit facility, for which ABN AMRO Bank acted as the agent bank, for the purpose of funding the construction and purchase of machinery and equipment at our Suzhou and Xiamen module-assembly facilities. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. As of December 31, 2010, NT$6.6 billion (US$0.3 billion) was outstanding under this credit facility.
|
·
|
In September 2006, we entered into a NT$55.0 billion seven-year syndicated credit facility, for which Bank of Taiwan acted as the agent bank, for the purpose of funding the construction and purchase of machinery and equipment at our second 7.5-generation fab. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, 2010, NT$42.7 billion (US$1.5 billion) was outstanding under this credit facility. We issued NT$7.0 billion secured corporate bonds under this credit facility in August 2008.
|
·
|
In October 2008, we entered into a NT$58.0 billion seven-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of funding the construction and purchase of machinery and equipment at our first 8.5-generation fab. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, 2010, NT$15.0 billion (US$0.5 billion) was outstanding under this credit facility.
|
·
|
In July 2009, we entered into a NT$27.0 billion five-year syndicated credit facility, for which Mega International Commercial Bank acted as the agent bank, for the purpose of funding medium- and long- term working capital. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, 2010, NT$17.0 billion (US$0.6 billion) was outstanding under this credit facility.
|
·
|
In September 2010, our subsidiary, AFPD Pte., Ltd. (“AFPD”) entered into a US$0.36 billion five-year syndicated credit facility, for which the Credit Agricole Corporate and Investment Bank, Singapore Branch acted as the agent bank, for the purpose of repaying AFPD’s loan from Toshiba and funding working capital needs or capital expenditures. The syndication agreement for this facility is guaranteed by us. As of December 31, 2010, US$0.17 billion was outstanding under this credit facility and US$0.19 billion had not been drawn down.
|
·
|
In October 2010, we issued US$0.8 billion aggregate principal amount of zero coupon convertible bonds due 2015. We used the net proceeds to fund overseas equipment purchase. Please refer to note 15 for more detailed information.
|
·
|
In January 2011, we entered into a NT$45.0 billion five-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of funding medium-term working capital and repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our equipment and machinery. As of March 31, 2011, we had not drawn down any amount under this credit facility.
|
·
|
In January 2011, our subsidiary, AUSK entered into a EUR80.0 million five-year credit facility with Unicredit Bank Slovakia A.S. for the purpose of funding the construction and the procurement of machinery and equipment. The agreement for this credit facility has been guaranteed by us and requires us to maintain certain financial ratios. As of March 31, 2011, EUR25.0 million (US$33.3 million) was outstanding under this credit facility, and EUR55.0 million (US$73.3 million) had not been drawn down.
|
·
|
In July 2005, QDI issued an aggregate principal amount of NT$6.0 billion of zero-coupon convertible bonds due July 2010. The initial conversion price was NT$17.12 per share, subject to adjustment. The conversion price was adjusted to NT$44.10 per share in 2006 as a result of our merger. These bonds matured in July 2010.
|
·
|
In June 2006, QDI entered into a NT$27.0 billion seven-year syndicated credit facility, for which Mega International Commercial Bank acted as the agent bank for the purpose of funding the expansion of one of our sixth generation fabs. The syndication agreement for this facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, 2010, NT$16.2 billion (US$0.6 billion) was outstanding under this credit facility.
|
·
|
In July 2006, QDI entered into a NT$1.0 billion four-year credit facility with the Industrial Bank of Taiwan for working capital purposes. Our obligations under this credit facility are secured by certain of our equipment and machinery. We fully repaid this credit facility in August 2010.
|
·
|
In December 2009, M. Setek entered into a JPY21.0 billion five-year syndicated credit facility, for which Mizuho Corporate Bank acted as the agent bank. As of December 31, 2010, JPY21.0 billion was outstanding under this credit facility, of which JPY5.25 billion was classified as current liabilities and JPY15.75 billion as long-term liabilities.
|
·
|
In October 2010, M. Setek entered into a JPY6.0 billion five-year credit facility with the Bank of China Limited, Tokyo Branch for the purpose of financing the second phase expansion of Soma factory. The agreement for this credit facility has been guaranteed by us and it requires us to maintain certain financial
|
·
|
In October 2010, M. Setek entered into a JPY4.0 billion five-year credit facility with the Bank of China (Hong Kong) Limited for the purpose of financing the second phase expansion of Soma plant and general working capital needs. The agreement for this credit facility has been guaranteed by us and requires us to maintain certain financial ratios. As of December 31, 2010, JPY1.0 billion (US$0.01 billion) was outstanding and JPY3.0 billion (US$0.04 billion) had not been drawn down under this credit facility.
|
·
|
In November 2010, M. Setek entered into a JPY10.0 billion five-year credit facility with the ING Bank N.V., Tokyo Branch for the purpose of refinancing bank loan and financing capital expenditure needs. The agreement for this facility is guaranteed by us and requires us to maintain certain financial ratios. As of December 31, 2010, JPY10.0 billion (US$0.12 billion) was outstanding under this credit facility.
|
·
|
We also assumed three other credit facilities that M. Setek entered into in December 2005 (a JPY2.0 billion five-year credit facility), March 2006 (a JPY8.0 billion seven-year syndicated credit facility) and March 2006 (a JPY7.0 billion seven-year credit facility), respectively, under which M. Setek had breached certain financial covenants. On June 25, 2010, we repaid all outstanding amounts of JPY8,625.0 million under the three credit facilities and we do not expect any material impact on our financial position as a result of such financial covenant breach after our full repayment.
|
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in millions)
|
||||||||||||||||
Equipment purchases
|
101,326.1 | 49,018.0 | 57,240.8 | 1,964.3 | ||||||||||||
Land and building purchases
|
1,813.8 | 13,412.3 | 21,903.0 | 751.6 |
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)
|
180,566.1 | 35,929.8 | 77,831.8 | 66,117.7 | 686.8 | |||||||||||||||
Operating lease obligations(2)
|
6,363.7 | 1,012.2 | 1,742.9 | 619.1 | 2,989.5 | |||||||||||||||
Purchase obligations(3)
|
31,892.0 | 31,892.0 | – | – | – | |||||||||||||||
Total
|
218,821.8 | 68,834.0 | 79,574.7 | 66,736.8 | 3,676.3 |
Year Ended and as of December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in millions)
|
||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. in accordance with
|
||||||||||||||||
ROC GAAP
|
21,267.4 | (26,769.3 | ) | 6,692.7 | 229.7 | |||||||||||
US GAAP
|
13,089.7 | (28,670.3 | ) | 4,244.3 | 145.7 | |||||||||||
Equity attributable to stockholders of AU Optronics Corp. in accordance with
|
||||||||||||||||
ROC GAAP
|
290,059.0 | 262,087.1 | 268,160.9 | 9,202.5 | ||||||||||||
US GAAP
|
293,391.9 | 266,269.0 | 270,390.1 | 9,279.0 |
Name
|
Age
|
Position
|
Term
Expires
|
Years
with
Us
|
Principal Business Activities
Performed Outside Our Company
|
|||||
Kuen-Yao (K.Y.) Lee
|
59
|
Chairman
|
2013
|
15
|
· Chairman, Qisda Corporation
· Director, Darfon Corporation
· Director, BenQ Materials Corporation
|
|||||
Hsuan Bin (H.B.) Chen
|
60
|
Vice-Chairman
|
2013
|
14
|
· Chairman, Wellypower Optronics Corporation
|
|||||
Lai-Juh (L.J.) Chen
|
48
|
Director, Chief Executive Officer and President
|
2013
|
1
|
· Director, Darwin Precisions Corp.
|
|||||
Paul Peng
|
52
|
Director and Executive Vice President
|
2013
|
1
|
· Director, Darwin Precisions Corp.
· Director, Forhouse Corporation
· Director, SiPix Technology Inc.
|
|||||
Ko-Yung (Eric) Yu(1)
|
55
|
Director
|
2013
|
15
|
· Chairman, BenQ Materials Corporation
|
|||||
Hui Hsiung(2)
|
58
|
Director
|
2013
|
15
|
· Director and Chief Executive Officer, Qisda Corporation
· Chairman, SiPix Technology Inc.
|
|||||
Ronald Jen-Chuan Chwang(3)
|
63
|
Director
|
2013
|
3
|
· Chairman, iD Ventures America, Inc.
|
Chang-Hai Tsai(4)
|
62
|
Director
|
2013
|
1
|
· Chairman, China Medical University & Health Care System
· Founder and Chairman, Asia University
|
|||||
Vivien Huey-Juan Hsieh
|
58
|
Independent Director
|
2013
|
7
|
· Supervisor, Chief Telecom Inc.
· Independent Director, Gold East Paper (Jiangsu) Co., Ltd.
|
|||||
Mei-Yueh Ho
|
60
|
Independent Director
|
2013
|
1
|
· Independent Director, Bank of Kaohsiung, Ltd.
|
|||||
Ding-Yuan Yang
|
63
|
Independent Director
|
2013
|
1
|
· Chairman, UniSVR Global Information Technology Corp.
· Supervisor, Applied Vacuum Coating Technologies Co., Ltd.
· Independent Director, Goyatek Technology Inc.
|
(1)
|
Representing Qisda.
|
(2)
|
Representing Qisda.
|
(3)
|
Representing BenQ Foundation.
|
(4)
|
Representing An Ji Biomedical Corporation.
|
Name
|
Age
|
Position
|
Years with Us
|
|||
Lai-Juh (L.J.) Chen
|
48
|
Chief Executive Officer and President
|
12
|
|||
Max Cheng
|
48
|
Acting President
|
15
|
|||
Andy Yang
|
42
|
Chief Financial Officer
|
9
|
|||
Paul Peng
|
53
|
Executive Vice President of Display Business Operation
|
15
|
|||
F.C. Hsiang
|
52
|
Executive Vice President of Display Business Global Operation Unit
|
12
|
As of December 31,
|
||||||||||||
Function
|
2008
|
2009
|
2010
|
|||||||||
Production
|
31,381 | 39,312 | 43,405 | |||||||||
Technical(1)
|
9,279 | 9,218 | 10,210 | |||||||||
Sales and marketing
|
582 | 657 | 817 | |||||||||
Management and administration
|
2,025 | 2,191 | 2,964 | |||||||||
Total
|
43,267 | 51,378 | 57,396 |
(1)
|
Includes research and development personnel.
|
As of December 31,
|
||||||||||||
Location
|
2008
|
2009
|
2010
|
|||||||||
ROC
|
21,030 | 20,471 | 20,943 | |||||||||
PRC
|
22,077 | 29,994 | 34,658 | |||||||||
Others
|
160 | 913 | 1,795 | |||||||||
Total
|
43,267 | 51,378 | 57,396 |
Name
|
Number of Shares Owned
|
Percentage of Shares Owned
|
||
Kuen-Yao (K.Y.) Lee, Chairman
|
10,512,153
|
*
|
||
Hsuan Bin (H.B.) Chen, Vice-Chairman
|
5,947,633
|
*
|
||
Lai-Juh (L.J.) Chen, Director, Chief Executive Officer and President
|
2,419,118
|
*
|
||
Paul Peng, Director, Executive Vice President of Display Business Operation
|
2,473,660
|
*
|
||
Hui Hsiung, Director
|
663,598,620 (1)
|
7.52%
|
||
Ko-Yung (Eric) Yu, Director
|
663,598,620 (1)
|
7.52%
|
||
Ronald Jen-Chuan Chwang, Director
|
100,000 (2)
|
*
|
||
Chang-Hai Tsai, Director
|
200,000 (3)
|
*
|
||
Vivien Huey-Juan Hsieh, Independent Director
|
—
|
—
|
||
Mei-Yueh Ho, Independent Director
|
—
|
—
|
||
Ding-Yuan Yang, Independent Director
|
—
|
—
|
||
Max Cheng, Acting President
|
1,133,122
|
*
|
||
Andy Yang, Chief Financial Officer
|
427,259
|
*
|
||
F.C. Hsiang, Executive Vice President of Display Business 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 BenQ Foundation.
|
(3)
|
Represents shares held by An Ji Biomedical Corporation.
|
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
|
663,598,620
|
7.52%
|
7.52%
|
|||
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)
|
685,251,184
|
7.76%
|
7.76%
|
(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.
|
·
|
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 thousands of ADSs)
|
|||||||||||||||||||
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 | ||||||||||||||||||
2010
|
42.00 | 27.30 | 49,916.19 | 13.25 | 8.58 | 2,850.03 | ||||||||||||||||||
First Quarter
|
42.00 | 32.80 | 59,323.72 | 13.25 | 10.24 | 3,141.07 | ||||||||||||||||||
Second Quarter
|
37.75 | 28.60 | 48,305.02 | 12.51 | 8.88 | 3,882.97 | ||||||||||||||||||
Third Quarter
|
32.80 | 27.30 | 50,028.07 | 10.67 | 8.58 | 2,142.78 | ||||||||||||||||||
Fourth Quarter
|
32.70 | 29.00 | 43,219.27 | 10.57 | 9.46 | 2,263.09 | ||||||||||||||||||
October
|
32.70 | 29.10 | 51,867.11 | 10.57 | 9.58 | 2,878.22 | ||||||||||||||||||
November
|
31.15 | 29.00 | 39,033.98 | 10.42 | 9.46 | 2,104.81 | ||||||||||||||||||
December
|
31.40 | 30.00 | 39,326.74 | 10.48 | 10.01 | 1,827.01 | ||||||||||||||||||
2011 (through April 15)
|
30.35 | 24.35 | 39,393.19 | 10.44 | 8.17 | 2,565.25 | ||||||||||||||||||
First Quarter
|
30.35 | 24.35 | 39,554.88 | 10.44 | 8.17 | 2,681.31 | ||||||||||||||||||
January
|
30.35 | 28.55 | 36,681.12 | 10.44 | 9.58 | 2,644.13 | ||||||||||||||||||
February
|
28.20 | 25.80 | 42,499.72 | 10.07 | 8.72 | 3,152.88 | ||||||||||||||||||
March
|
27.25 | 24.35 | 40,261.28 | 9.28 | 8.17 | 2,324.09 | ||||||||||||||||||
April (through April 15)
|
26.00 | 25.05 | 38,369.17 | 8.94 | 8.57 | 1,911.06 |
(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.
|
·
|
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.
|
·
|
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.
|
·
|
an individual 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
|
||||||||||||||||||||||||||||||||
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
Fair Value at December 31, 2010
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||
Certificates of Deposit:
|
||||||||||||||||||||||||||||||||
Fixed rate (US$)
|
631,314 | — | — | — | — | — | 631,314 | 631,314 | ||||||||||||||||||||||||
Average interest rate
|
0.543 | % | — | — | — | — | — | 0.543 | % | 0.543 | % | |||||||||||||||||||||
Fixed rate (NT$)
|
12,515,256 | — | — | — | — | — | 12,515,256 | 12,515,256 | ||||||||||||||||||||||||
Average interest rate
|
0.333 | % | — | — | — | — | — | 0.333 | % | 0.333 | % | |||||||||||||||||||||
Fixed rate (JPY)
|
23,219,091 | — | — | — | — | — | 23,219,091 | 23,219,091 | ||||||||||||||||||||||||
Average interest rate
|
0.193 | % | — | — | — | — | — | 0.193 | % | 0.193 | % | |||||||||||||||||||||
Fixed rate (CNY)
|
1,076,200 | — | — | — | — | — | 1,076,200 | 1,076,200 | ||||||||||||||||||||||||
Average interest rate
|
1.350 | % | — | — | — | — | — | 1.350 | % | 1.350 | % | |||||||||||||||||||||
Fixed rate (CZK)
|
15,000 | — | — | — | — | — | 15,000 | 15,000 | ||||||||||||||||||||||||
Average interest rate
|
0.200 | % | — | — | — | — | — | 0.200 | % | 0.200 | % | |||||||||||||||||||||
Fixed rate (EUR)
|
16,000 | — | — | — | — | — | 16,000 | 16,000 | ||||||||||||||||||||||||
Average interest rate
|
0.327 | % | — | — | — | — | — | 0.327 | % | 0.327 | % | |||||||||||||||||||||
Liabilities Bonds:
|
||||||||||||||||||||||||||||||||
Secured (NT$)
|
6,000,000 | 3,500,000 | — | — | — | — | 9,500,000 | 9,684,385 | ||||||||||||||||||||||||
Fixed rate
|
2.649 | % | 2.900 | % | — | — | — | — | 2.717 | % | — | |||||||||||||||||||||
Unsecured (NT$)
|
105,621 | 61,149 | — | — | 24,173,600 | — | 24,340,370 | 24,344,837 |
Expected Maturity Date
|
||||||||||||||||||||||||||||||||
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
Fair Value at December 31, 2010
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Fixed rate
|
0.007 | % | 0.002 | % | — | — | 15.34 | %(1) | — | 3.064 | % | — | ||||||||||||||||||||
Long-term Loans:
|
||||||||||||||||||||||||||||||||
Fixed rate (NT$)
|
218,654 | 122,298 | 17,789 | — | — | — | 358,741 | 358,741 | ||||||||||||||||||||||||
Average interest rate
|
2.197 | % | 2.023 | % | 1.730 | % | — | — | — | 2.134 | % | — | ||||||||||||||||||||
Variable rate (NT$)
|
29,605,525 | 38,531,034 | 35,599,509 | 28,537,119 | 13,629,401 | 686,745 | 146,589,333 | 146,589,333 | ||||||||||||||||||||||||
Average interest rate
|
2.372 | % | 2.668 | % | 3.219 | % | 3.428 | % | 3.738 | % | 6.4 | % | 2.794 | % | — | |||||||||||||||||
Interest Rate Swaps (2)
|
||||||||||||||||||||||||||||||||
Variable to fixed (NT$)
|
7,777,778 | 6,888,889 | — | 28,444,444 | — | — | 43,111,111 | (361,889 | ) | |||||||||||||||||||||||
Pay rate
|
2.046 | % | 2.484 | % | — | 1.331 | % | — | — | 1.644 | % | — |
(in thousands)
|
|
Contracts to sell US$/Buy NT$:
|
|
Aggregate contract amount
|
US$203,000
|
Average contractual exchange rate
|
NT$30.01 per US$
|
Contracts to sell CZK/Buy JPY
|
|
Aggregate contract amount
|
CZK12,405
|
Average contractual exchange rate
|
JPY4.35 per CZK
|
Contracts to sell NT$/Buy USD$:
|
|
Aggregate contract amount
|
NT$12,117,800
|
Average contractual exchange rate
|
US$0.03 per NT$
|
Contracts to sell EUR/Buy JPY:
|
|
Aggregate contract amount
|
EUR173,000
|
Average contractual exchange rate
|
JPY111.27 per EUR
|
Contracts to sell CZK/Buy EUR:
|
|
Aggregate contract amount
|
CZK162,240
|
Average contractual exchange rate
|
EUR0.04 per CZK
|
Contracts to sell NT$/Buy JPY:
|
|
Aggregate contract amount
|
NT$203,922
|
Average contractual exchange rate
|
JPY2.68 per NT$
|
Contracts to sell US$/Buy JPY:
|
|
Aggregate contract amount
|
US$379,000
|
Average contractual exchange rate
|
JPY83.38 per US$
|
Contracts to sell US$/Buy CNY:
|
|
Aggregate contract amount
|
US$11,000
|
Average contractual exchange rate
|
CNY6.64 per US$
|
Contracts to sell CNY/Buy US$:
|
|
Aggregate contract amount
|
CNY19,886
|
Average contractual exchange rate
|
US$0.15 per CNY
|
Contracts to sell JPY/Buy US$:
|
Aggregate contract amount
|
JPY594,265
|
Average contractual exchange rate
|
US$0.01 per JPY
|
Fair value of all forward contracts(1)
|
NT$322,988
|
(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$105,708.6
|
Reimbursement of ADR holders identification expenses
|
US$27,324.8
|
Reimbursement of Legal Fees
|
US$62,645.0
|
Reimbursement to Issuer
|
US$1,481,715.0
|
Total payment received by us:
|
US$1,677,393.4
|
·
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets;
|
·
|
provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with ROC GAAP and US GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and
|
·
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
|
Year ended December 31,
|
||||
Services
|
2009
|
2010
|
||
NT$
|
NT$
|
|||
(in thousands)
|
||||
Audit Fees(1)
|
58,950
|
70,798
|
||
Audit-related Fees (2)
|
—
|
7,200
|
||
Tax Fees(3)
|
—
|
—
|
||
Other Fees (4)
|
7,800
|
—
|
||
Total
|
66,750
|
77,998
|
(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)
|
Audit-related Fees. This category includes fees and expenses relating to the offering of the convertible bonds in 2010.
|
(3)
|
Tax Fees. This category includes professional services for tax compliance.
|
(4)
|
Other Fees. This category includes professional services for IFRS adoption in 2009.
|
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 eleven-member board of directors.
|
NYSE Section 303A.02 establishes general
|
Our standards for determining director
|
NYSE Standards for US Listed Companies
under Listed Company Manual
Section 303A
|
Our Corporate Governance Practices
|
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).
|
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 required by the new regulations promulgated by the FSC in March 2011 to have a compensation committee by September 30, 2011. We plan to establish a compensation committee before September 30, 2011 to meet the requirements under the ROC law, including appointing at least one of our independent directors as member of the compensation committee who shall be the chairman of the compensation committee.
|
NYSE Section 303A.06 requires listed companies to have an audit committee that satisfies the requirements of Rule 10A-3 under the Exchange Act.
|
We have an audit committee that substantially conforms with the requirements of Rule 10A-3 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 Vivien Huey-Juan Hsieh, one of our Audit Committee members, meets applicable financial literacy requirements.
|
NYSE Section 303A.07(b) requires an audit committee to have a written charter establishing the
|
Our audit committee has a written charter that is substantially similar to the requirements of NYSE
|
NYSE Standards for US Listed Companies
under Listed Company Manual
Section 303A
|
Our Corporate Governance Practices
|
duties and responsibilities required, at a minimum, by Section 10A-3(b)(1) of the Exchange Act.
|
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.
|
There is no ROC mandatory requirement to adopt a code of business conduct and ethics. 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 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
|
NYSE Standards for US Listed Companies
under Listed Company Manual
Section 303A
|
Our Corporate Governance Practices
|
|
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, 2009 and 2010.
|
(c)
|
Consolidated Statements of Operations of AU Optronics Corp. and subsidiaries for the years ended December 31, 2008, 2009 and 2010.
|
(d)
|
Consolidated Statements of Stockholders’ Equity of AU Optronics Corp. and subsidiaries for the years ended December 31, 2008, 2009 and 2010.
|
(e)
|
Consolidated Statements of Cash Flows of AU Optronics Corp. and subsidiaries for the years ended December 31, 2008, 2009 and 2010.
|
(f)
|
Notes to Consolidated Financial Statements of AU Optronics Corp. and subsidiaries.
|
1.1
|
Articles of Incorporation (English translation) (incorporated herein by reference to Exhibit 1.1 to our annual report on Form 20-F as filed with the Commission on May 11, 2009).
|
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 Max Cheng, Acting President of AU Optronics Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
12.2
|
Certification of Andy Yang, Chief Financial Officer of AU Optronics Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
13.1
|
Certification of Max Cheng, Acting President 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/ MAX CHENG
|
||
Name:
|
Max Cheng
|
||
Title:
|
Acting President
|
Page
|
|
Consolidated Financial Statements of AU Optronics Corp. and Subsidiaries
|
|
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents (note 4)
|
85,443,311 | 89,498,491 | 3,071,328 | |||||||||
Notes and accounts receivable, net (note 8)
|
57,025,944 | 50,595,501 | 1,736,290 | |||||||||
Receivables from related parties, net (note 23)
|
5,272,388 | 9,320,432 | 319,850 | |||||||||
Other receivables from related parties (note 23)
|
47,168 | 72,696 | 2,495 | |||||||||
Other current financial assets (note 8)
|
1,791,637 | 2,169,281 | 74,443 | |||||||||
Inventories, net (notes 9 and 24)
|
39,229,916 | 44,568,106 | 1,529,448 | |||||||||
Prepayments and other current assets (notes 10 and 25)
|
1,355,863 | 2,958,200 | 101,517 | |||||||||
Equity investments held-for-sale (note 10)
|
707,175 | - | - | |||||||||
Deferred tax assets, net (note 20)
|
5,199,265 | 5,375,623 | 184,476 | |||||||||
Financial assets measured at fair value—current (note 7)
|
388,129 | 427,265 | 14,662 | |||||||||
Total current assets
|
196,460,796 | 204,985,595 | 7,034,509 | |||||||||
Long-term investments:
|
||||||||||||
Equity-method investments (note 10)
|
9,706,574 | 15,540,959 | 533,321 | |||||||||
Available-for-sale financial assets—noncurrent (notes 5 and 24)
|
2,012,265 | 1,373,687 | 47,141 | |||||||||
Hedging derivative financial assets—noncurrent (note 7)
|
3,829 | - | - | |||||||||
Financial assets carried at cost—noncurrent (note 6)
|
484,009 | 896,294 | 30,758 | |||||||||
Total long-term investments
|
12,206,677 | 17,810,940 | 611,220 | |||||||||
Property, plant and equipment (notes 11, 23 and 24):
|
||||||||||||
Land
|
7,780,680 | 8,052,370 | 276,334 | |||||||||
Buildings
|
90,379,997 | 113,542,262 | 3,896,440 | |||||||||
Machinery and equipment
|
621,880,340 | 661,815,861 | 22,711,594 | |||||||||
Other equipment
|
29,729,246 | 37,144,773 | 1,274,701 | |||||||||
749,770,263 | 820,555,266 | 28,159,069 | ||||||||||
Less: accumulated depreciation
|
(395,405,471 | ) | (493,695,739 | ) | (16,942,201 | ) | ||||||
Construction in progress
|
9,773,502 | 2,714,407 | 93,150 | |||||||||
Prepayments for purchases of land and equipment
|
26,611,776 | 54,293,812 | 1,863,206 | |||||||||
Net property, plant and equipment
|
390,750,070 | 383,867,746 | 13,173,224 | |||||||||
Intangible assets:
|
||||||||||||
Goodwill (note 12)
|
11,464,947 | 11,454,512 | 393,086 | |||||||||
Technology-related fees (notes 12 and 25)
|
2,828,307 | 2,607,455 | 89,480 | |||||||||
Total intangible assets
|
14,293,254 | 14,061,967 | 482,566 | |||||||||
Other assets:
|
||||||||||||
Idle assets, net (note 11)
|
1,797,158 | 1,760,638 | 60,420 | |||||||||
Deferred charges, net
|
2,765,980 | 2,593,372 | 88,997 | |||||||||
Deferred tax assets, net (note 20)
|
3,053,319 | 3,379,370 | 115,970 | |||||||||
Others (notes 17 and 24)
|
1,285,504 | 856,141 | 29,380 | |||||||||
Total other assets
|
8,901,961 | 8,589,521 | 294,767 | |||||||||
Total Assets
|
622,612,758 | 629,315,769 | 21,596,286 |
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Short-term borrowings (note 13)
|
1,945,227 | 1,183,248 | 40,606 | |||||||||
Notes payable and accounts payable
|
69,779,706 | 73,657,842 | 2,527,723 | |||||||||
Payables to related parties (note 23)
|
22,684,161 | 20,124,665 | 690,620 | |||||||||
Accrued expenses and other current liabilities (note 18)
|
36,528,777 | 38,233,627 | 1,312,067 | |||||||||
Financial liabilities measured at fair value—current
(note 7)
|
1,087,827 | 268,827 | 9,225 | |||||||||
Other payables to related parties (note 23)
|
66,617 | 98,601 | 3,384 | |||||||||
Equipment and construction in progress payable
|
23,788,714 | 19,881,973 | 682,291 | |||||||||
Current installments of long-term borrowings (notes 16
and 24)
|
38,537,926 | 29,824,179 | 1,023,479 | |||||||||
Current installments of bonds payable (notes 14, 15 and 24)
|
8,306,408 | 6,105,621 | 209,527 | |||||||||
Total current liabilities
|
202,725,363 | 189,378,583 | 6,498,922 | |||||||||
Long-term liabilities:
|
||||||||||||
Financial liabilities measured at fair value—noncurrent (note 7)
|
10,450 | 230,699 | 7,917 | |||||||||
Bonds payable, excluding current installments (notes 14 and 24)
|
9,655,160 | 3,561,149 | 122,208 | |||||||||
Convertible bonds payable (note 15)
|
- | 23,951,212 | 821,936 | |||||||||
Long-term borrowings, excluding current installments
(notes 16 and 24)
|
123,424,152 | 117,123,895 | 4,019,351 | |||||||||
Hedging derivative financial liabilities—noncurrent
(note 7)
|
505,372 | 287,706 | 9,873 | |||||||||
Long-term payables and capital lease liabilities—excluding current installments (notes 18 and 23)
|
1,611,653 | 1,766,626 | 60,626 | |||||||||
Unearned revenue (note 25)
|
9,622,370 | 10,365,760 | 355,723 | |||||||||
Total long-term liabilities
|
144,829,157 | 157,287,047 | 5,397,634 | |||||||||
Other liabilities (note 17)
|
139,246 | 325,582 | 11,173 | |||||||||
Total liabilities
|
347,693,766 | 346,991,212 | 11,907,729 | |||||||||
Stockholders’ equity (notes 5, 10 and 19):
|
||||||||||||
Capital stock:
|
||||||||||||
Common stock, NT$10 par value
|
88,270,455 | 88,270,455 | 3,029,185 | |||||||||
Capital surplus
|
114,972,148 | 115,947,805 | 3,978,991 | |||||||||
Retained earnings:
|
||||||||||||
Legal reserve
|
15,206,106 | 15,206,106 | 521,829 | |||||||||
Unappropriated retained earnings
|
40,863,051 | 47,116,043 | 1,616,886 | |||||||||
56,069,157 | 62,322,149 | 2,138,715 | ||||||||||
Others:
Cumulative translation adjustments
|
1,685,733 | 1,053,896 | 36,167 | |||||||||
Unrealized gains on financial instruments
|
1,089,644 | 566,628 | 19,445 | |||||||||
2,775,377 | 1,620,524 | 55,612 | ||||||||||
262,087,137 | 268,160,933 | 9,202,503 | ||||||||||
Minority interests
|
12,831,855 | 14,163,624 | 486,054 | |||||||||
Total stockholders’ equity
|
274,918,992 | 282,324,557 | 9,688,557 | |||||||||
Commitments and contingent liabilities (note 25)
|
||||||||||||
Total Liabilities and Stockholders’ Equity
|
622,612,758 | 629,315,769 | 21,596,286 |
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Net sales (note 23)
|
423,928,193 | 359,331,345 | 467,157,964 | 16,031,502 | ||||||||||||
Cost of goods sold (notes 9 and 23)
|
368,600,330 | 352,290,469 | 430,859,371 | 14,785,840 | ||||||||||||
Gross profit
|
55,327,863 | 7,040,876 | 36,298,593 | 1,245,662 | ||||||||||||
Operating expenses (note 23):
|
||||||||||||||||
Selling
|
8,992,831 | 8,000,028 | 8,641,453 | 296,549 | ||||||||||||
General and administrative
|
7,907,578 | 8,094,414 | 10,736,924 | 368,460 | ||||||||||||
Research and development
|
5,335,196 | 6,185,485 | 6,423,552 | 220,438 | ||||||||||||
22,235,605 | 22,279,927 | 25,801,929 | 885,447 | |||||||||||||
Operating income (loss)
|
33,092,258 | (15,239,051 | ) | 10,496,664 | 360,215 | |||||||||||
Non-operating income and gains:
|
||||||||||||||||
Interest income
|
1,845,712 | 265,975 | 286,798 | 9,842 | ||||||||||||
Investment gains recognized by equity method, net (note 10)
|
- | 139,635 | 681,331 | 23,381 | ||||||||||||
Foreign currency exchange gains, net
|
- | 236,909 | - | - | ||||||||||||
Gains on valuation of financial instruments, net (note 7)
|
3,902,317 | 813,152 | 3,986,083 | 136,791 | ||||||||||||
Gains on sale of investment securities, net
|
- | 384,186 | 1,527,229 | 52,410 | ||||||||||||
Other income (note 23)
|
1,709,071 | 1,569,449 | 2,302,755 | 79,024 | ||||||||||||
7,457,100 | 3,409,306 | 8,784,196 | 301,448 | |||||||||||||
Non-operating expenses and losses:
|
||||||||||||||||
Interest expenses
|
4,203,946 | 3,446,588 | 4,233,127 | 145,268 | ||||||||||||
Investment losses recognized by equity method, net (note 10)
|
313,621 | - | - | - | ||||||||||||
Foreign currency exchange losses, net
|
4,994,189 | - | 3,581,120 | 122,894 | ||||||||||||
Depreciation of idle assets
|
654,639 | 1,102,132 | 859,193 | 29,485 | ||||||||||||
Asset impairment losses (notes 5, 6, 10 and 12)
|
1,394,297 | 1,192,807 | - | - | ||||||||||||
Provisions for potential litigation losses and others (notes 23 and 25)
|
2,717,755 | 9,696,129 | 2,011,439 | 69,027 | ||||||||||||
14,278,447 | 15,437,656 | 10,684,879 | 366,674 | |||||||||||||
Earnings (loss) before income taxes
|
26,270,911 | (27,267,401 | ) | 8,595,981 | 294,989 | |||||||||||
Income tax (expense) benefit (note 20)
|
(4,629,066 | ) | 22,587 | (1,187,894 | ) | (40,765 | ) | |||||||||
Net income (loss)
|
21,641,845 | (27,244,814 | ) | 7,408,087 | 254,224 | |||||||||||
Attributable to:
|
||||||||||||||||
Equity holders of the parent company
|
21,267,386 | (26,769,335 | ) | 6,692,657 | 229,673 | |||||||||||
Minority interest
|
374,459 | (475,479 | ) | 715,430 | 24,551 | |||||||||||
Net income (loss)
|
21,641,845 | (27,244,814 | ) | 7,408,087 | 254,224 |
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Earnings (loss) per share—Basic (note 21):
|
||||||||||||||||
Basic (L) EPS—net income (loss)
|
2.50 | (3.04 | ) | 0.76 | 0.03 | |||||||||||
Basic EPS—retroactively adjusted
|
2.43 | |||||||||||||||
Earnings (loss) per share—Diluted (note 21):
|
||||||||||||||||
Diluted (L) EPS—net income (loss)
|
2.41 | (3.04 | ) | 0.70 | 0.02 | |||||||||||
Diluted EPS—retroactively adjusted
|
2.34 |
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 from conversion of bonds
|
48,829 | 488,289 | (460,668 | ) | 100,418 | - | - | - | - | - | - | 128,039 | ||||||||||||||||||||||||||||||||
Issuance of stock from exercise of employee stock option
|
2,049 | 20,490 | (14,283 | ) | 20,402 | - | - | - | - | - | - | 26,609 | ||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||
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 | - | - | - | 374,459 | 21,641,845 | |||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale financial assets, net
|
- | - | - | - | - | - | - | 1,637,350 | 135 | 1,637,485 | ||||||||||||||||||||||||||||||
Unrealized losses on cash flow hedges, net
|
- | - | - | - | - | - | - | 194,145 | 123 | 194,268 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments
|
- | - | - | - | - | (645,125 | ) | - | - | 658,348 | 13,223 | |||||||||||||||||||||||||||||
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 | (2,383,727 | ) | (4,270,900 | ) | ||||||||||||||||||||||||||
Net loss
|
- | - | - | - | (26,769,335 | ) | - | - | - | (475,479 | ) | (27,244,814 | ) | |||||||||||||||||||||||||||
Reversal of minimum pension liability
|
- | - | - | - | - | - | 40,252 | - | - | 40,252 | ||||||||||||||||||||||||||||||
Adjustments for changes in minority interests
|
- | - | - | - | - | - | - | - | 5,832,690 | 5,832,690 | ||||||||||||||||||||||||||||||
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 |
Capital stock
|
Retained earnings
|
Others
|
||||||||||||||||||||||||||||||||||
Number
of shares
|
Amount
|
Capital
surplus
|
Legal
reserve
|
Unappropriated
retained
earnings
|
Cumulative
translation
adjustments
|
Unrealized
gains (losses)
on financial
instruments
|
Minority
interests
|
Total
|
||||||||||||||||||||||||||||
Balance at January 1, 2010
|
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 | |||||||||||||||||||||||||||
Embedded conversion options derived from convertible bonds
|
- | - | 101,787 | - | - | - | - | - | 101,787 | |||||||||||||||||||||||||||
Unrealized gains (losses) on available-for-sales financial assets, net
|
- | - | - | - | - | - | (747,324 | ) | 592 | (746,732 | ) | |||||||||||||||||||||||||
Unrealized gains on cash flow hedges, net
|
- | - | - | - | - | - | 181,415 | 34 | 181,449 | |||||||||||||||||||||||||||
Foreign currency translation adjustments
|
- | - | - | - | - | (631,837 | ) | - | 12,458 | (619,379 | ) | |||||||||||||||||||||||||
Adjustments to capital surplus, retained earnings and unrealized gains (losses) on financial instruments for changes in investees’ equity
|
- | - | 873,870 | - | (439,665 | ) | - | 42,893 | 701,735 | 1,178,833 | ||||||||||||||||||||||||||
Net income
|
- | - | - | - | 6,692,657 | - | - | 715,430 | 7,408,087 | |||||||||||||||||||||||||||
Adjustments for changes in minority interests
|
- | - | - | - | - | - | - | (98,480 | ) | (98,480 | ) | |||||||||||||||||||||||||
Balance at December 31, 2010
|
8,827,046 | 88,270,455 | 115,947,805 | 15,206,106 | 47,116,043 | 1,053,896 | 566,628 | 14,163,624 | 282,324,557 | |||||||||||||||||||||||||||
Balance at December 31, 2010 (in US$)
|
- | 3,029,185 | 3,978,991 | 521,829 | 1,616,886 | 36,167 | 19,445 | 486,054 | 9,688,557 |
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income (loss)
|
21,641,845 | (27,244,814 | ) | 7,408,087 | 254,224 | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation
|
78,411,867 | 87,512,945 | 87,748,809 | 3,011,284 | ||||||||||||
Amortization of intangible assets and deferred charges
|
2,776,565 | 2,594,666 | 1,386,893 | 47,594 | ||||||||||||
Unrealized foreign currency exchange losses (gains), net
|
2,298,557 | (2,192,835 | ) | (940,903 | ) | (32,289 | ) | |||||||||
Asset impairment losses
|
1,394,297 | 1,192,807 | - | - | ||||||||||||
Losses (gains) on valuation of financial instruments, net
|
(1,075,326 | ) | 1,336,469 | (781,930 | ) | (26,834 | ) | |||||||||
Investment losses (gains) recognized by equity method, net
|
313,621 | (139,635 | ) | (681,331 | ) | (23,381 | ) | |||||||||
Proceeds from cash dividends
|
142,368 | 142,096 | 437,801 | 15,024 | ||||||||||||
Losses (gains) on disposal of investment securities
|
142,267 | (384,186 | ) | (1,527,229 | ) | (52,410 | ) | |||||||||
Losses from disposal and write-off of property, plant and equipment, and others
|
29,899 | 23,248 | 77,323 | 2,653 | ||||||||||||
Change in operating assets and liabilities:
|
||||||||||||||||
Decrease (increase) in accounts and notes receivable (including related parties)
|
51,485,303 | (38,532,393 | ) | 2,061,603 | 70,748 | |||||||||||
Decrease (increase) in inventories, net
|
11,831,747 | (12,708,862 | ) | (6,197,038 | ) | (212,664 | ) | |||||||||
Decrease (increase) in deferred tax assets, net
|
2,411,066 | (716,548 | ) | (535,267 | ) | (18,369 | ) | |||||||||
Decrease (increase) in prepayments and other current assets
|
1,625,308 | 4,535,738 | (2,017,877 | ) | (69,248 | ) | ||||||||||
Increase (decrease) in accounts and notes payable (including related parties)
|
(39,799,729 | ) | 32,455,076 | 2,732,480 | 93,771 | |||||||||||
Increase (decrease) in accrued expenses and other current liabilities
|
(1,453,395 | ) | 10,297,563 | 958,950 | 32,908 | |||||||||||
Increase (decrease) in unearned revenue
|
- | (1,032,123 | ) | 671,170 | 23,033 | |||||||||||
Increase in prepaid pension assets
|
(118,750 | ) | (98,193 | ) | (65,954 | ) | (2,263 | ) | ||||||||
Net cash provided by operating activities
|
132,057,510 | 57,041,019 | 90,735,587 | 3,113,781 | ||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Acquisition of property, plant and equipment
|
(98,355,181 | ) | (61,046,891 | ) | (84,620,951 | ) | (2,903,945 | ) | ||||||||
Proceeds from disposals of property, plant and equipment, and idle assets
|
1,344,356 | 235,562 | 73,958 | 2,538 | ||||||||||||
Purchase of convertible bonds
|
- | (500,002 | ) | - | - | |||||||||||
Proceeds from disposal of available-for-sale financial assets
|
270,250 | 854,849 | 716,751 | 24,597 | ||||||||||||
Purchase of long-term investments
|
(2,489,500 | ) | (5,763,950 | ) | (1,258,811 | ) | (43,199 | ) | ||||||||
Purchase of financial assets carried at cost
|
(399,516 | ) | (40,345 | ) | (658,959 | ) | (22,613 | ) | ||||||||
Proceeds from disposal of long-term investments
|
378 | 299,203 | 1,379,548 | 47,342 | ||||||||||||
Decrease (increase) in restricted cash in bank
|
7,999 | (425,799 | ) | 429,733 | 14,747 | |||||||||||
Increase in intangible assets and deferred charges
|
(1,502,092 | ) | (1,121,028 | ) | (1,414,472 | ) | (48,540 | ) | ||||||||
Decrease (increase) in refundable deposits
|
(134,105 | ) | 52,404 | 18,346 | 630 | |||||||||||
Cash increase (decrease) resulting from change in consolidated entity
|
- | 839,336 | (1,883,482 | ) | (64,636 | ) | ||||||||||
Net cash used in investing activities
|
(101,257,411 | ) | (66,616,661 | ) | (87,218,339 | ) | (2,993,079 | ) | ||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Increase (decrease) in short-term borrowings
|
4,720,666 | (4,901,690 | ) | (4,938,767 | ) | (169,484 | ) | |||||||||
Increase (decrease) in guarantee deposits
|
2,912 | (5,758 | ) | 164,757 | 5,654 | |||||||||||
Repayment of long-term borrowings and bonds payable
|
(57,993,509 | ) | (49,291,812 | ) | (60,610,911 | ) | (2,079,990 | ) | ||||||||
Proceeds from long-term borrowings, bonds payable and convertible bonds payable
|
37,299,393 | 66,844,430 | 62,609,918 | 2,148,590 | ||||||||||||
Proceeds from issuance of stock for employee stock options exercised
|
26,609 | - | - | - | ||||||||||||
Cash dividends
|
(19,670,577 | ) | (2,551,716 | ) | - | - | ||||||||||
Remuneration to directors and supervisors, and employees’ profit sharing
|
(1,763,436 | ) | - | - | - | |||||||||||
Proceeds from issuance of subsidiary shares to minority interests
|
40,000 | 2,445,262 | 4,338,348 | 148,880 | ||||||||||||
Cash dividends to minority interests and others
|
(97,667 | ) | (613,376 | ) | (685,129 | ) | (23,512 | ) | ||||||||
Net cash provided by (used in) financing activities
|
(37,435,609 | ) | 11,925,340 | 878,216 | 30,138 | |||||||||||
Effect of exchange rate change on cash
|
180,600 | (341,084 | ) | (340,284 | ) | (11,678 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents
|
(6,454,910 | ) | 2,008,614 | 4,055,180 | 139,162 | |||||||||||
Cash and cash equivalents at beginning of year
|
89,889,607 | 83,434,697 | 85,443,311 | 2,932,166 | ||||||||||||
Cash and cash equivalents at end of year
|
83,434,697 | 85,443,311 | 89,498,491 | 3,071,328 | ||||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||||||
Cash paid for interest expense (excluding interest capitalized)
|
4,112,907 | 3,459,032 | 4,260,269 | 146,200 | ||||||||||||
Cash paid for income taxes
|
5,179,223 | 2,127,321 | 803,775 | 27,583 | ||||||||||||
Supplementary disclosure of non-cash investing and financing activities:
|
||||||||||||||||
Current installments of long-term liabilities
|
43,585,254 | 46,844,334 | 35,929,800 | 1,233,006 | ||||||||||||
Issuance of common stock from exercise of bond conversion rights
|
128,039 | - | - | - | ||||||||||||
Conversion of convertible bonds into equity method investments
|
- | 618,065 | - | - | ||||||||||||
Reclassification of equity method investments from equity investments held-for-sale
|
- | - | 707,175 | 24,268 | ||||||||||||
Additions to property, plant and equipment:
|
||||||||||||||||
Increase in property, plant and equipment
|
103,289,880 | 62,430,334 | 79,143,746 | 2,715,983 | ||||||||||||
Decrease (increase) in equipment and construction-in-progress payables
|
(4,934,699 | ) | (1,383,443 | ) | 5,477,205 | 187,962 | ||||||||||
98,355,181 | 61,046,891 | 84,620,951 | 2,903,945 | |||||||||||||
Impact of change in consolidated entities:
|
||||||||||||||||
Cash
|
- | 839,336 | (1,883,482 | ) | (64,636 | ) | ||||||||||
Non-cash assets
|
- | 34,416,206 | (3,914,044 | ) | (134,319 | ) | ||||||||||
Liabilities
|
- | (30,541,846 | ) | (1,599,359 | ) | (54,885 | ) | |||||||||
Minority interests
|
- | (482,658 | ) | 3,982,504 | 136,668 | |||||||||||
- | 4,231,038 | (3,414,381 | ) | (117,172 | ) |
1.
|
Organization
|
Percentage of Ownership (%)
|
||||||||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December 31, 2009
|
December 31, 2010
|
||||||||
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.
|
68.43 | - | ||||||||
AUO, Konly and Ronly
|
Darwin Precisions Corp. (DPTW)
|
Manufacturing and sale of backlight modules.
|
62.08 | 61.35 | ||||||||
AUO
|
BriView Electronics Corp. (BVTW)
|
Manufacturing and sale of liquid crystal products and related parts
|
60.00 | 98.52 |
Percentage of Ownership (%)
|
||||||||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December 31, 2009
|
December 31, 2010
|
||||||||
AUO
|
AUO Crystal Corp. (ACTW)
|
Design and installation of solar modules
|
100.00 | 87.09 | ||||||||
Konly
|
Darshin Microelectronics Inc. (DSTW)
|
IC design and sales
|
66.67 | 66.67 | ||||||||
ACTW
|
AUO Crystal (Malaysia) Sdn. Bhd. (ACMK)
|
Manufacturing and sale of single crystal silicon wafers
|
- | 100.00 | ||||||||
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)
|
Holding and 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 Optronics (Slovakia) s.r.o. (AUSK)
|
Assembly of Optoelectronics LCD products in Slovakia and manufacturing and sale of related parts
|
100.00 | 100.00 | ||||||||
AULB
|
AFPD Pte., Ltd. (AUST)
|
Manufacturing LCD panels based on low temperature polysilicon technology
|
- | 100.00 |
Percentage of Ownership (%)
|
||||||||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December 31, 2009
|
December 31, 2010
|
||||||||
AULB and DPTW
|
Darwin Precisions (L) Corp. (DPLB)
|
Holding and trading company
|
100.00 | 100.00 | ||||||||
AULB
|
BriView (L) Corp. (BVLB)
|
Holding and trading company
|
100.00 | 100.00 | ||||||||
AULB and ACTW
|
M. Setek Co., Ltd.
(M. Setek)
|
Manufactures of single crystal silicon wafers and ingots and sales of solar modules
|
58.10 | 95.01 | ||||||||
AULB and BVLB
|
BVCH Optronics (Sichuan) Corp. (BVCH)
|
Assembly and sale of TFT-LCD modules in the PRC
|
51.00 | 51.00 | ||||||||
AULB and BVLB
|
BriView (Xiamen) Corp. (BVXM)
|
Manufacturing and sale of liquid crystal products and related parts
|
100.00 | 100.00 | ||||||||
AULB
|
Huizhou Bri-King Optronics Co., Ltd. (BKHZ)
|
Assembly and sale of TFT-LCD modules in the PRC
|
- | 51.00 | ||||||||
DPLB
|
Darwin Precisions (Hong Kong) Limited (DPHK)
|
Holding company
|
100.00 | 100.00 | ||||||||
DPHK
|
Darwin Precisions (Suzhou) Corp. (DPSZ)
|
Manufacturing, assembly and sale of backlight modules and related components in PRC
|
100.00 | 100.00 | ||||||||
DPHK
|
Darwin Precisions (Xiamen) Corp. (DPXM)
|
Manufacturing, assembly and sale of backlight modules and related components in PRC
|
100.00 | 100.00 | ||||||||
DPHK
|
Darwin Precisions (Chengdu) Corp. (DPCD)
|
Manufacturing, assembly and sale of backlight modules and related components in PRC
|
- | 100.00 | ||||||||
DPHK
|
Darwin Precisions
(Qingdao) Corp. (DPQD)
|
Manufacturing, assembly and sale of backlight modules and related components in PRC
|
- | 100.00 | ||||||||
DPHK
|
Darwin Precisions (Dongguan) Corp. (DPDG)
|
Manufacturing, assembly and sale of backlight modules and related components in PRC
|
- | 100.00 | ||||||||
BVLB
|
BriView (Kunshan) Co.,Ltd. (BVKS)
|
Manufacturing and sale of liquid crystal products and related parts
|
- | 100.00 |
Percentage of Ownership (%)
|
||||||||||||
Name of Investor
|
Subsidiary
|
Main Activities
|
December 31, 2009
|
December 31, 2010
|
||||||||
BVLB
|
BriView (Hefei) Co., Ltd. (BVHF)
|
Manufacturing and sale of liquid crystal products and related parts
|
- | 100.00 | ||||||||
AUSG
|
AUO Energy (Suzhou) Corp. (AESZ)
|
Design and installation of solar modules
|
- | 100.00 | ||||||||
AUSG
|
AUO Energy (Tianjin) Corp. (AETJ)
|
Design and installation of solar modules
|
- | 100.00 | ||||||||
AUSG
|
AUO Green Energy America Corp. (AEUS)
|
Holding and sales support in America
|
- | 100.00 | ||||||||
AUSG
|
AUO Green Energy Europe B.V. (AENL)
|
Holding and sales support in Europe
|
- | 100.00 | ||||||||
M. Setek
|
Ichijo Seisakusyo Co., Ltd. (Ichijo)
|
Manufacturing and sale of semiconductor products
|
38.46 | - |
2.
|
Pro Forma Information
|
For the year ended December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands, except for per share data)
|
||||||||||||
Net sales
|
366,661,919 | 471,612,696 | 16,184,375 | |||||||||
Consolidated net income (loss)-attributable to equity holders of the parent company
|
(29,068,924 | ) | 6,064,144 | 208,104 | ||||||||
Earnings (loss) per share-basic
|
(3.31 | ) | 0.69 | 0.02 | ||||||||
Earnings (loss) per share-diluted
|
(3.31 | ) | 0.67 | 0.02 |
3.
|
Summary of Significant Accounting Policies
|
|
(a)
|
Accounting principles and consolidation policy
|
(b)
|
Use of estimates
|
|
(c)
|
Foreign currency transactions and translation
|
|
(d)
|
Classification of current and noncurrent assets and liabilities
|
|
(e)
|
Asset impairment
|
|
(f)
|
Cash equivalents and restricted cash in bank
|
|
(g)
|
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. Cash dividends are recognized as investment income upon resolution of shareholders of an investee but are accounted for as a reduction to the original cost of investment if such dividends are declared prior to the purchase of the investment. Stock dividends are recorded as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the new total number of shares.
|
|
(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, which is determined by using an analysis of various factors. These factors include the private company’s current operating and future expected performance (based on evaluation of the latest available financial statements), as well as changes in the industry and market prospects (based on publicly available information). 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. The accounting treatment for cash dividends and stock dividends arising from financial assets carried at cost is the same that for cash and stock dividends arising from available-for-sale financial assets.
|
|
(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.
|
|
(h)
|
Derivative financial instruments and hedging activities
|
|
(i)
|
Allowance for doubtful accounts
|
|
(j)
|
Inventories
|
(k)
|
Equity-method investments
|
|
(l)
|
Property, plant and equipment
|
|
(m)
|
Leased Assets
|
(n)
|
Deferred charges
|
|
(o)
|
Goodwill and other intangible assets
|
|
(p)
|
Noncurrent assets held-for-sale
|
|
(q)
|
Convertible bonds
|
(r)
|
Retirement plans
|
(s)
|
Employee bonuses and remuneration to directors
|
|
(t)
|
Share-based payment transactions
|
|
(u)
|
Employee stock options
|
|
(v)
|
Revenue recognition and allowance for sales return and discounts
|
|
(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
|
4.
|
Cash and Cash Equivalents
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Cash and bank deposits
|
73,560,405 | 70,686,923 | 2,425,770 | |||||||||
Government bonds with reverse purchase agreements
|
11,882,906 | 18,811,568 | 645,558 | |||||||||
85,443,311 | 89,498,491 | 3,071,328 |
5.
|
Available-for-sale Financial Assets-noncurrent
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Publicly listed equity shares
|
2,012,265
|
1,373,687
|
47,141
|
6.
|
Financial Assets Carried at Cost—noncurrent
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Non-publicly listed stocks
|
484,009
|
896,294
|
30,758
|
7.
|
Derivative Financial Instruments and Hedging Policy
|
(a)
|
Derivative financial instruments
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Financial assets measured at fair value-current:
|
||||||||||||
Foreign currency forward contracts
|
378,252 | 425,443 | 14,600 | |||||||||
Options contracts
|
9,743 | 1,822 | 62 | |||||||||
Interest rate swap contracts
|
134 | - | - | |||||||||
388,129 | 427,265 | 14,662 | ||||||||||
Hedging derivative financial assets-noncurrent:
|
||||||||||||
Interest rate swap contracts
|
3,829 | - | - | |||||||||
Financial liabilities measured at fair value-current:
|
||||||||||||
Options contracts
|
154,513 | 180,020 | 6,177 | |||||||||
Foreign currency forward contracts
|
933,289 | 88,779 | 3,047 | |||||||||
Interest rate swap contracts
|
25 | 28 | 1 | |||||||||
1,087,827 | 268,827 | 9,225 | ||||||||||
Financial liabilities measured at fair value-noncurrent:
|
||||||||||||
Convertible bonds payable
|
- | 142,868 | 4,903 | |||||||||
Interest rate swap contracts
|
10,450 | 74,155 | 2,545 | |||||||||
Foreign currency forward contracts
|
- | 13,676 | 469 | |||||||||
10,450 | 230,699 | 7,917 | ||||||||||
Hedging derivative financial liabilities-noncurrent:
|
||||||||||||
Interest rate swap contracts
|
505,372 | 287,706 | 9,873 |
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, 2010
|
||||||
Contract item
|
Notional amount
|
Exercise rate/
Price range
|
Exercise period
|
|||
(in thousands)
|
||||||
Interest rate options
|
YEN1,800,000
|
1.00%
|
Jan. 2011 – Sep. 2011
|
|||
Foreign currency call options
|
USD9,050
|
YEN95.53 – 109.75
|
May. 2011 – Nov. 2013
|
|||
Foreign currency put options
|
USD18,100
|
YEN95.53 – 109.75
|
Jan. 2011 – Nov. 2013
|
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
|
December 31, 2010
|
||||
Contract item
|
Maturity date
|
Contract amount
|
||
(in thousands)
|
||||
Sell USD / Buy NTD
|
Jan. 2011 – Feb. 2011
|
USD203,000 / NTD6,092,923
|
||
Sell USD / Buy YEN
|
Jan. 2011 – Feb. 2011
|
USD379,000 / YEN31,601,485
|
||
Sell NTD / Buy YEN
|
Jan. 2011 – Feb. 2011
|
NTD203,922 / YEN546,442
|
||
Sell NTD / Buy USD
|
Jan. 2011 – Mar. 2011
|
NTD12,117,800 / USD400,000
|
||
Sell USD / Buy CNY
|
Jan. 2011
|
USD11,000 / CNY73,023
|
||
Sell CNY / Buy USD
|
Jan. 2011
|
CNY19,886 / USD3,000
|
||
Sell YEN / Buy USD
|
Jan. 2011 – Dec. 2011
|
YEN594,265 / USD5,500
|
||
Sell EUR / Buy YEN
|
Jan. 2011 – Mar. 2011
|
EUR173,000 / YEN19,249,930
|
||
Sell CZK / Buy YEN
|
Feb. 2011
|
CZK12,405 / YEN53,960
|
||
Sell CZK / Buy EUR
|
Jan. 2011
|
CZK162,240 / EUR6,500
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands) | ||||||||||||||||
Net gain arising from foreign exchange forward contract and options contract
|
4,015,043 | 640,250 | 4,049,932 | 138,982 | ||||||||||||
Net gain (loss) arising from interest rate swap contracts
|
(112,726 | ) | 58,652 | (63,849 | ) | (2,191 | ) | |||||||||
Gain arising from embedded derivative instrument
|
- | 114,250 | - | - | ||||||||||||
3,902,317 | 813,152 | 3,986,083 | 136,791 |
(b)
|
Hedge accounting
|
The Company entered into plain vanilla type interest rate swap contracts as the primary hedging instrument. The Company paid interest based on fixed rate and receives market floating-rate from the counterparty. The aforementioned hedging contracts are intended to protect the Company from the risk of future cash flow fluctuation of debt bearing floating interest rate. These contracts are designated as cash flow hedge and met the criteria for hedge accounting.
|
||||||||
As of December 31, 2009 and 2010, details of hedged items designated as cash flow hedges and their respective hedging derivative financial instruments were as follows:
|
||||||||
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 floating interest rate
|
Interest rate swap contracts
|
(501,543)
|
Jan. 2010–Sep. 2014
|
Jan. 2010–Sep. 2014
|
December 31, 2010
|
||||||||
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 floating interest rate
|
Interest rate swap contracts
|
(287,706)
|
Jan. 2011–Sep. 2014
|
Jan. 2011–Sep. 2014
|
8.
|
Notes and accounts receivable, net
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Notes receivable
|
3,512 | 262 | 9 | |||||||||
Accounts receivable
|
57,220,600 | 51,368,871 | 1,762,830 | |||||||||
Less: allowance for doubtful accounts
|
(91,294 | ) | (84,644 | ) | (2,905 | ) | ||||||
allowance for sales returns and discounts
|
(106,874 | ) | (688,988 | ) | (23,644 | ) | ||||||
57,025,944 | 50,595,501 | 1,736,290 |
For the year ended December 31, 2009
|
|||||||||||
Underwriting bank
|
Factoring limit
|
Amount advanced
|
Amount sold and derecognized
|
Principle terms
|
Promissory note as collateral
|
||||||
(in thousands)
|
|||||||||||
Taipei Fubon Bank
|
USD 15,000
|
- |
USD 21,583
|
See below
|
None
|
||||||
China Trust Commercial Bank
|
USD 30,000
|
- |
USD 93,733
|
See below
|
None
|
||||||
Standard Chartered Bank
|
USD 36,000
|
- |
USD 55,425
|
See below
|
None
|
||||||
Bank of China
|
USD 80,000
|
- |
USD 74,540
|
See below
|
None
|
||||||
Standard Chartered Bank
|
USD 165,000
|
USD154,606
|
USD266,883
|
See below
|
None
|
For the year ended December 31, 2010
|
|||||||||||
Underwriting bank
|
Factoring limit
|
Amount advanced
|
Amount sold and derecognized
|
Principle terms
|
Promissory note as collateral
|
||||||
(in thousands)
|
|||||||||||
Taipei Fubon Bank
|
USD 25,000
|
- |
USD 84,311
|
See below
|
None
|
||||||
China Trust Commercial Bank
|
USD 35,000
|
- |
USD 220,683
|
See below
|
None
|
||||||
First Commercial Bank
|
USD 170,000
|
USD 139,787
|
USD 139,787
|
See below
|
None
|
||||||
Standard Chartered Bank
|
USD 190,000
|
- |
USD 390,257
|
See below
|
None
|
||||||
China Construction Bank
|
CNY 140,000
|
- |
-
|
See below
|
None
|
||||||
Resona Bank
|
-
|
YEN2,536,870
|
YEN2,549,079
|
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, 2009 and 2010, total outstanding receivables resulting from the above transactions, net of fees charged by underwriting banks, of NT$1,436,061 thousand and NT$336,072 (US$11,533) thousand, respectively, were classified under other current financial assets.
|
9.
|
Inventories
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Finished goods
|
15,785,735 | 20,355,490 | 698,541 | |||||||||
Less: allowance for devaluation
|
(1,826,825 | ) | (2,548,047 | ) | (87,441 | ) | ||||||
13,958,910 | 17,807,443 | 611,100 | ||||||||||
Work-in-progress
|
18,728,109 | 21,631,505 | 742,330 | |||||||||
Less: allowance for devaluation
|
(1,618,679 | ) | (2,807,472 | ) | (96,344 | ) | ||||||
17,109,430 | 18,824,033 | 645,986 | ||||||||||
Raw materials and spare parts
|
9,075,322 | 8,627,715 | 296,078 | |||||||||
Less: allowance for devaluation
|
(913,746 | ) | (691,085 | ) | (23,716 | ) | ||||||
8,161,576 | 7,936,630 | 272,362 | ||||||||||
Total
|
39,229,916 | 44,568,106 | 1,529,448 |
10.
|
Equity-Method Investments
|
December 31,
|
||||||||||||||||||||
2009
|
2010
|
|||||||||||||||||||
Ownership interest
|
Amount
|
Ownership interest
|
Amount
|
|||||||||||||||||
%
|
NT$
|
%
|
NT$
|
US$
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Lextar
|
- | - | 46 | 3,638,618 | 124,867 | |||||||||||||||
Qisda Corporation (“Qisda”)
|
10 | 2,837,687 | 10 | 3,015,606 | 103,487 | |||||||||||||||
Forhouse Corporation (“Forhouse”)
|
25 | 1,709,468 | 23 | 2,738,620 | 93,981 | |||||||||||||||
AUO SunPower Sdn. Bhd. (“AUSP”)
|
- | - | 50 | 1,619,293 | 55,569 | |||||||||||||||
Cando Corporation Ltd. (“Cando”)
|
18 | 1,059,564 | 18 | 910,745 | 31,254 | |||||||||||||||
Sipix Technology Inc. (“STI”)
|
32 | 909,706 | 28 | 825,144 | 28,317 | |||||||||||||||
Ningjin Songgong Semiconductor Co., Ltd. (“Ningjin Songgong”)
|
- | - | 65 | 530,336 | 18,200 | |||||||||||||||
Raydium Semiconductor Corp. (“Raydium”)
|
15 | 429,561 | 15 | 498,524 | 17,108 | |||||||||||||||
Wellypower Optronics Corporation Ltd. (“Wellypower”)
|
9 | 465,871 | 9 | 485,415 | 16,658 | |||||||||||||||
Daxin Materials Corp. (“Daxin”)
|
33 | 268,126 | 31 | 332,419 | 11,408 | |||||||||||||||
Langfang Songgong Semiconductor Co., Ltd. (“Langfang Songgong”)
|
- | - | 56 | 229,754 | 7,884 | |||||||||||||||
Asia Pacific Genesis Venture Capital Fund L.P. (“Asia Pacific VC”)
|
11 | 245,297 | 11 | 224,403 | 7,701 | |||||||||||||||
Brivictory Display Technology (Labuan) Corp. (“BTLB”)
|
- | - | 51 | 210,326 | 7,218 | |||||||||||||||
Abakus Solar AG (“Abakus”)
|
45 | 125,686 | 45 | 130,607 | 4,482 | |||||||||||||||
Qingdao Haier Optronics Co., Ltd. (BHQD)
|
- | - | 30 | 59,126 | 2,029 | |||||||||||||||
Ichijo
|
- | - | 38 | 24,655 | 846 | |||||||||||||||
Dazzo Technology Corporation (“Dazzo”)
|
25 | 34,502 | 25 | 19,571 | 672 | |||||||||||||||
EcoLand Corporation (EcoLand)
|
- | - | 27 | 10,797 | 370 | |||||||||||||||
Taiwan Nano Electro-Optical Technology Co., Ltd. (“Nano”)
|
16 | 642,269 | - | - | - | |||||||||||||||
Light House Technology Co., Ltd. (“LHTC”)
|
45 | 604,182 | - | - | - | |||||||||||||||
Entire Technology Co., Ltd. (“Entire”)
|
10 | 341,425 | - | - | - | |||||||||||||||
Apower Optronics Corporation (“Apower”)
|
5 | 33,230 | - | - | - | |||||||||||||||
Patentop Ltd. (“Patentop”)
|
41 | - | 41 | - | - | |||||||||||||||
9,706,574 | 15,503,959 | 532,051 | ||||||||||||||||||
Prepaid investment
|
- | 37,000 | 1,270 | |||||||||||||||||
9,706,574 | 15,540,959 | 533,321 |
December 31, 2010
|
||||||||
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
Current assets
|
2,558,611 | 87,804 | ||||||
Non-current assets
|
5,359,086 | 183,908 | ||||||
Current liabilities
|
2,074,404 | 71,188 | ||||||
Non-current liabilities
|
5,056,766 | 173,533 | ||||||
Revenues
|
335,417 | 11,511 | ||||||
Expenses
|
639,480 | 21,945 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Forhouse
|
4,685,415 | 3,682,768 | 126,382 | |||||||||
Qisda
|
3,685,831 | 3,658,256 | 125,540 | |||||||||
Wellypower
|
610,170 | 485,085 | 16,647 | |||||||||
Entire
|
1,898,530 | - | - | |||||||||
Nano
|
821,701 | - | - | |||||||||
11,701,647 | 7,826,109 | 268,569 |
For the year ended December 31, 2009
|
||||||||||||||||||||
Beginning balance
|
Additions or deductions
|
Adjustments
|
Amortization or realization
|
Ending balance
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Amortizable assets
|
(525,538 | ) | 179,784 | 16,460 | 50,194 | (279,100 | ) | |||||||||||||
Goodwill
|
658,954 | 468,705 | - | - | 1,127,659 | |||||||||||||||
Other assets
|
162,665 | (3,836 | ) | (4,500 | ) | - | 154,329 | |||||||||||||
296,081 | 644,653 | 11,960 | 50,194 | 1,002,888 |
For the year ended December 31, 2010
|
||||||||||||||||||||||||
Beginning balance
|
Additions or deductions
|
Adjustments
|
Amortization or realization
|
Ending balance
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Amortizable assets
|
(279,100 | ) | 823,532 | 39,689 | (9,329 | ) | 574,792 | 19,725 | ||||||||||||||||
Goodwill
|
1,127,659 | 556,661 | - | (76,784 | ) | 1,607,536 | 55,166 | |||||||||||||||||
Other assets
|
154,329 | - | 3,836 | - | 158,165 | 5,428 | ||||||||||||||||||
1,002,888 | 1,380,193 | 43,525 | (86,113 | ) | 2,340,493 | 80,319 |
11.
|
Property, Plant and Equipment, and Idle Assets
|
For the years ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Buildings
|
351,979 | 185,281 | 288,879 | 9,914 | ||||||||||||
Machinery and equipment
|
1,010,719 | 1,021,530 | 604,173 | 20,733 | ||||||||||||
1,362,698 | 1,206,811 | 893,052 | 30,647 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Cost:
|
||||||||||||
Land
|
478,214 | 478,214 | 16,411 | |||||||||
Buildings
|
544,421 | 545,231 | 18,711 | |||||||||
Machinery
|
9,546,871 | 12,673,146 | 434,905 | |||||||||
Other equipment
|
279,373 | 359,712 | 12,344 | |||||||||
10,848,879 | 14,056,303 | 482,371 | ||||||||||
Less: accumulated depreciation
|
(8,327,043 | ) | (11,628,231 | ) | (399,047 | ) | ||||||
2,521,836 | 2,428,072 | 83,324 | ||||||||||
Less: allowance for devaluation of idle assets
|
(724,678 | ) | (667,434 | ) | (22,904 | ) | ||||||
1,797,158 | 1,760,638 | 60,420 |
12.
|
Intangible Assets
|
For the year ended December 31, 2009
|
||||||||||||||||
Beginning balance
|
Additions
|
Amortization
|
Ending balance
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Goodwill
|
11,280,595 | 184,352 | - | 11,464,947 | ||||||||||||
Core technologies
|
918,925 | - | (918,925 | ) | - | |||||||||||
Technology-related fees
|
3,339,120 | 268,131 | (778,944 | ) | 2,828,307 | |||||||||||
15,538,640 | 452,483 | (1,697,869 | ) | 14,293,254 |
For the year ended December 31, 2010
|
||||||||||||||||||||||||
Beginning balance
|
Additions
|
Adjustments
|
Amortization
|
Ending balance
|
||||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Goodwill
|
11,464,947 | 12,072 | (22,507 | ) | - | 11,454,512 | 393,086 | |||||||||||||||||
Core technologies
|
- | 17,083 | (15,120 | ) | (1,963 | ) | - | - | ||||||||||||||||
Technology-related fees
|
2,828,307 | 516,892 | (57,881 | ) | (679,863 | ) | 2,607,455 | 89,480 | ||||||||||||||||
14,293,254 | 546,047 | (95,508 | ) | (681,826 | ) | 14,061,967 | 482,566 |
13.
|
Short-term Borrowings
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Short-term borrowings
|
1,945,227 | 1,183,248 | 40,606 | |||||||||
Unused facility
|
28,711,185 | 28,742,102 | 986,345 |
14.
|
Bonds Payable
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Unsecured bonds payable:
|
270,668 | 166,770 | 5,723 | |||||||||
Secured bonds payable:
|
15,000,000 | 9,500,000 | 326,012 | |||||||||
Less: current portion
|
(5,615,508 | ) | (6,105,621 | ) | (209,527 | ) | ||||||
9,655,160 | 3,561,149 | 122,208 | ||||||||||
Interest payable
|
184,805 | 684,557 | 23,492 |
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
2011
|
6,105,621 | 209,527 | ||||||
2012
|
3,561,149 | 122,208 | ||||||
9,666,770 | 331,735 |
Secured Bond 2
|
Secured Bond 3
|
Secured Bond 4
|
|||
Issuer
|
AUO
|
AUO
|
AUO
|
||
Par value
|
NT$6,000,000 thousand
|
NT$5,000,000 thousand
|
NT$7,000,000 thousand
|
||
Issue date
|
Jun. 6 – 13, 2005
|
Mar. 21, 2006
|
Aug. 22, 2008
|
||
Issue price
|
At par value
|
At par value
|
At par value
|
||
Coupon rate
|
Bond I: 2.00%
Bond II: 1.9901%
|
Fixed rate 1.948%
|
Fixed rate 2.90%
|
||
Duration
|
Jun. 6, 2005 –
Jun. 13, 2010
|
Mar. 21, 2006 –
Mar. 21, 2011
|
Aug. 22, 2008 –
Aug. 22, 2012
|
||
Bank that provided guarantee
|
Bank of Taiwan and eight other banks
|
Mizuho Corporate Bank and six other banks
|
Mizuho Corporate Bank and three other banks
|
||
Redemption
|
As stated below
|
As stated below
|
As stated below
|
Unsecured Bond 2
|
Unsecured Bond 3
|
||
Issuer
|
M. Setek
|
M. Setek
|
|
Par value
|
YEN900,000 thousand
|
YEN900,000 thousand
|
|
Issue date
|
Apr. 28, 2005
|
Sep. 30, 2005
|
|
Issue price
|
At par value
|
At par value
|
|
Coupon rate
|
Floating interest
|
Fixed rate 1.01%
|
|
Duration
|
Apr. 28, 2005 – Apr. 25, 2012
|
Sep. 30, 2005 – Sep. 28, 2012
|
|
Bank that provided guarantee
|
Mizuho Corporate Bank
|
Mizuho Corporate Bank
|
|
Redemption
|
As stated below
|
As stated below
|
15.
|
Convertible Bonds Payable
|
December
31, 2009
|
December 31, 2010
|
|||||||||||
TCB 2
|
ECB 4
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Convertible bonds payable
|
2,690,900 | 23,951,212 | 821,936 | |||||||||
Less: current portion
|
(2,690,900 | ) | - | - | ||||||||
- | 23,951,212 | 821,936 |
(a)
|
Domestic convertible bond 2 (“TCB 2”)
|
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 bear the right to request AUO to repurchase the bonds on July 18, 2008, at par value.
|
Redemption terms
|
(a) |
Unless previously redeemed, purchased and cancelled, or converted, bonds are redeemable 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. |
(b)
|
Overseas convertible bond 3 (“ECB 3”)
|
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 bear the right to request AUO to repurchase the bonds on January 26, 2007, at par value. | ||
Redemption terms
|
(a) |
Unless previously redeemed, purchased and cancelled, or converted, bonds are redeemable 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.
|
(c)
|
Overseas convertible bond 4 (“ECB 4”)
|
Par value
|
US$800,000 thousand | ||
Original issue date
|
October 13, 2010 | ||
Original issue price
|
US$792,322 thousand | ||
Coupon rate
|
0% | ||
Maturity date
|
October 13, 2015 | ||
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
|
Original price at NT$40.74. For purposes of determining the number of converted shares, a fixed exchange rate of US$1=NT$30.778 is used. | ||
Put right
|
Bondholders bear the right to request AUO to repurchase the bonds on October 13, 2013, at par value. | ||
Redemption terms
|
(a) |
Unless previously redeemed, purchased and cancelled, or converted, bonds are redeemable on maturity at a redemption price equal to 115.34% of the unpaid principal amount thereof.
|
|
(b) | Effective from the third anniversary of issuance, AUO may, redeem the outstanding bonds at the early redemption amount, 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 130% of the conversion price for a period of 20 out of 30 consecutive trading days. | ||
(c) | AUO may redeem the total amount of outstanding bonds in whole at the early redemption amount in the event that 90% of the bonds have been previously redeemed, converted, or purchased and cancelled. | ||
(d) | AUO may redeem the total amount of outstanding bonds in whole at the early redemption amount if as a result of certain changes relating to the tax laws in the ROC or such other jurisdiction in which AUO is then organized, AUO is required to pay additional amounts. |
(e) |
Bondholders bear the right to request AUO to repurchase bonds, in whole or in part, at the early redemption amount in the event that AUO’s common shares cease to be listed or admitted to trading on the Taiwan Stock Exchange (for the avoidance of doubt, temporary suspension of trading of AUO’s common shares on the Taiwan Stock Exchange in accordance with the regulations of the Taiwan Stock Exchange is excluded.)
|
||
(f) | Bondholders bear the right to request AUO to repurchase bonds, in whole or in part, at the early redemption amount when there is a change of control with respect to AUO change of control occurs when one or more persons, acting in concert, acquire legal or beneficial ownership of over 50% of AUO’s capital stock. A “person” aforementioned does not include AUO’s directors and AUO’s majority-owned direct or indirect subsidiaries. |
16.
|
Long-term Borrowings
|
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
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.
|
47,750,000 | 42,662,400 | 1,464,049 | |||||||||||
Bank of Taiwan
|
As stated below, see note (a)
|
From Dec. 18, 2004, to Dec. 18, 2011, NT$49,000 million and US$150 million, repayable in 9 semi-annual installments starting from Dec. 2007. Early repayment in full was made in Dec. 2010.
|
23,910,912 | - | - |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
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.
|
24,664,200 | 16,442,800 | 564,269 | |||||||||||
Mega International Commercial Bank
|
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.
|
21,600,000 | 16,200,000 | 555,937 | |||||||||||
Industrial Bank of Taiwan
|
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.
|
475,000 | - | - | |||||||||||
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 | 15,000,000 | 514,756 | |||||||||||
Bank of Taiwan
|
As stated below, see note (b)
|
From Mar. 19, 2010, to Jan. 19, 2015, NT$2,000 million, repayable in 7 semi-annual installments starting from Mar. 2012.
|
- | 2,000,000 | 68,634 | |||||||||||
Mega International Commercial Bank
|
As stated below, see note (a)
|
From Jan. 19, 2010, to Jan. 19, 2015, NT$27,000 million, repayable in 7 semi-annual installments starting from Jan. 2012.
|
- | 17,000,000 | 583,390 | |||||||||||
Far Eastern International Bank
|
As stated below, see note (b)
|
From Sep. 27, 2010, to Sep. 27, 2013, NT$1,000 million and US$2.5 million, repayable installments starting from Sep. 2012.
|
- | 1,000,000 | 34,317 |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
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. Early repayment in full was made in Sep. 2010.
|
999,053 | - | - | |||||||||||
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.
|
2,079,993 | 1,476,255 | 50,661 | |||||||||||
ABN-AMRO Bank, Shanghai branch
|
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.
|
5,705,738 | 4,175,248 | 143,282 | |||||||||||
ABN-AMRO Bank, Shanghai branch
|
As stated below, see note (a)
|
From Aug. 2, 2006, to Aug. 2, 2013, RMB$200 million, RMB$20 million repayable in Aug. 2012, RMB$60 million repayable in Feb. 2013, and the remaining of RMB$120 million due in Aug. 2013.
|
1,876,960 | 915,660 | 31,423 | |||||||||||
Standard Chartered Bank (China) Limited, Shanghai branch
|
As stated below, see note (a)
|
From Jul. 31, 2008, to Nov. 27, 2012, US$33.6 million (formerly US$42.0 million), repayable in 5 semi-annual installments starting from Nov. 2010.
|
1,345,707 | 1,018,776 | 34,961 | |||||||||||
Agricultural 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 | - | - | |||||||||||
Agricultural Bank of China, Shanghai Songjiang branch
|
As stated below, see note (a)
|
From Mar. 5, 2009, to Jul. 11, 2012, RMB$500 million, repayable starting from Mar. 4, 2011.
|
- | 549,396 | 18,854 |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
Standard Chartered Bank, Shanghai branch
|
As stated below, see note (a)
|
From Nov. 27, 2007, to Nov. 27, 2012, RMB$60 million (formerly RMB$135 million), repayable in 3 semi-annual installments starting from Nov. 2011.
|
281,544 | 274,698 | 9,427 | |||||||||||
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.
|
422,316 | 54,024 | 1,854 | |||||||||||
Bank of China, Xiamen branch
|
As stated below, see note (a)
|
From Nov. 6, 2007, to Apr. 28, 2012, RMB$80 million, 25% repayable in Dec. 2010 and Dec. 2011 and the remaining principal due in Apr. 2012. Early repayment in full was made in Sep. 2010.
|
375,392 | - | - | |||||||||||
Agricultural Bank of China, Xiamen branch
|
As stated below, see note (a)
|
From Oct. 22, 2009, to Oct. 22, 2014, US$20 million, of which no less than US$5 million is repayable in Apr. 2012, no less than US$10 million is repayable in Apr. 2013, and the remaining principal is due in Apr. 2014.
|
- | 587,396 | 20,158 | |||||||||||
Hang Seng Bank, Fuzhou branch
|
As stated below, see note (b)
|
From Oct. 22, 2009, to Oct. 22, 2014, RMB$50 million, of which no less than US$5 million is repayable in Apr. 2012, no less than US$10 million is repayable in Apr. 2013, and the remaining principal is due in Apr. 2014.
|
- | 228,915 | 7,856 | |||||||||||
Bank of China, Xiamen branch
|
As stated below, see note (a)
|
From May 10, 2010, to May 10, 2015, RMB$200 million, of which RMB$60 million is repayable in May 2012 and 2013, and the remaining principal is due in May 2014.
|
- | 547,107 | 18,775 |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
China Construction Bank, Xiamen branch
|
As stated below, see note (a)
|
From Nov. 24, 2009, to Nov. 23, 2016, RMB$200 million, of which 20% principal repayable in Nov. 2013, 2014 and 2015, and 40% in Nov. 2016.
|
126,695 | 320,023 | 10,982 | |||||||||||
Agricultural 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, 25% principal repayable in 2012 and 2013, and 50% in 2014.
|
46,924 | 366,264 | 12,569 | |||||||||||
Bank of China, Xiamen branch
|
As stated below, see note (a)
|
From Jan. 13, 2010, to Jan. 12, 2015, RMB$280 million, 90 million repayable in 2012 and 2013, and the remaining due in 2014.
|
- | 398,312 | 13,669 | |||||||||||
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, and the remaining balance payable at final installment.
|
820,000 | - | - | |||||||||||
Bank of Xiamen
|
As stated below, see note (a)
|
From May 25, 2010, to Mar. 19, 2015, RMB$54 million, 30% principal repayable in Mar. 2013 and 2014, and 40% in Mar. 2015.
|
- | 146,506 | 5,028 | |||||||||||
Mizuho Corporate Bank
|
As stated below, see note (b)
|
From Dec. 26, 2005, to Dec. 25, 2010, YEN2,000 million, repayable in 16 quarterly installments starting from Mar. 2007.
|
172,400 | - | - |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
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. Early repayment in full was made in Jun. 2010.
|
1,792,960 | - | - | |||||||||||
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. Early repayment in full was made in Jun. 2010.
|
1,568,840 | - | - | |||||||||||
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 | 105,620 | 3,625 | |||||||||||
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 | 46,696 | 1,602 | |||||||||||
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 | 46,325 | 1,590 | |||||||||||
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 | 86,720 | 2,976 | |||||||||||
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 | 73,379 | 2,518 |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
Bank SinoPac
|
As stated below, see note (a)
|
From Dec. 11, 2009, to Dec. 9, 2014, YEN3, 000 million, repayable in 16 quarterly installments starting from Mar. 2010.
|
1,034,400 | 1,111,800 | 38,154 | |||||||||||
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 | 1,111,800 | 38,154 | |||||||||||
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. 2011.
|
7,240,801 | 7,782,600 | 267,076 | |||||||||||
Credit Agricole Corporate and Investment Bank (Formerly Calyon)
|
As stated below, see note (a)
|
From Jan. 2010, to Jan. 2013, YEN2,400 million, repayable in 2 annual installments starting from Jul. 2012.
|
- | 889,440 | 30,523 | |||||||||||
Bank of China (Tokyo)
|
As stated below, see note (a)
|
From Oct. 7, 2010, to Oct. 6, 2015, YEN6,000 million, repayable in 5 semi-annual installments starting from Oct. 2013.
|
- | 2,223,600 | 76,307 | |||||||||||
Bank of China (Hong Kong)
|
As stated below, see note (a)
|
From Oct. 7, 2010, to Oct. 6, 2015, YEN4,000 million, repayable in 5 semi-annual installments starting from Oct. 2013.
|
- | 370,600 | 12,718 | |||||||||||
ING
|
As stated below, see note (a)
|
From Nov. 24, 2010, to Nov. 24, 2015, YEN10,000 million, repayable in 5 semi-annual installments starting from Nov. 2013.
|
- | 3,706,000 | 127,179 |
Bank or
|
December 31,
|
|||||||||||||||
agent bank
|
Purpose
|
Line of credit and key terms
|
2009
|
2010
|
||||||||||||
NT$
|
NT$
|
US$
|
||||||||||||||
(in thousands)
|
DBS Bank
|
As stated below, see note (a)
|
From Mar. 2010, to Mar. 2013, EUR15 million, with 30% of principle repayable in Mar. and Sep. 2012, and 40% in Mar. 2013.
|
- | 600,839 | 20,619 | |||||||||||
Credit Agricole Corporate and Investment Bank (Formerly Calyon)
|
As stated below, see note (a)
|
From Jun. 2010, to Mar. 2013, EUR20 million, 50% repayable in Sep. 2012 and Mar. 2013, respectively.
|
- | 802,620 | 27,544 | |||||||||||
First Bank
|
As stated below, see note (a)
|
From Nov. 2010, to Nov. 2015, EUR20 million, repayable in 6 semi-annual installments starting from May 2013.
|
- | 802,620 | 27,544 | |||||||||||
Credit Agricole Corporate and Investment Bank (Formerly Calyon)
|
As stated below, see note (a)
|
US$360 million, repayable starting from the third anniversary for each debt-drawn, and in 5 semi-annual installments.
|
- | 5,136,890 | 176,283 | |||||||||||
Hefei Haiheng Group
|
As stated below, see note(a)
|
From Jun. 23, 2010, to Jun. 22, 2015, RMB 500 million, repayable in five years.
|
- | 686,745 | 23,567 | |||||||||||
161,962,078 | 146,948,074 | 5,042,830 | ||||||||||||||
Less: current portion
|
(38,537,926 | ) | (29,824,179 | ) | (1,023,479 | ) | ||||||||||
123,424,152 | 117,123,895 | 4,019,351 | ||||||||||||||
Unused credit facility
|
85,213,004 | 64,226,937 | 2,204,082 | |||||||||||||
Interest rate range
|
0.63%~5.76%
|
0.03%~5.53%
|
NT$ |
US$
|
|||||||
(in thousands)
|
||||||||
2011
|
29,824,179 | 1,023,479 | ||||||
2012
|
38,653,332 | 1,326,470 | ||||||
2013
|
35,617,298 | 1,222,282 | ||||||
2014
|
28,537,119 | 979,311 | ||||||
Thereafter
|
14,316,146 | 491,288 | ||||||
Total
|
146,948,074 | 5,042,830 |
17.
|
Retirement Plans
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Benefit obligation:
|
||||||||||||
Vested benefit obligation
|
(7,749 | ) | (11,387 | ) | (391 | ) | ||||||
Non-vested benefit obligation
|
(580,847 | ) | (778,122 | ) | (26,703 | ) | ||||||
Accumulated benefit obligation
|
(588,596 | ) | (789,509 | ) | (27,094 | ) | ||||||
Additional benefits based on future salary increase
|
(676,886 | ) | (904,769 | ) | (31,049 | ) | ||||||
Projected benefit obligation
|
(1,265,482 | ) | (1,694,278 | ) | (58,143 | ) | ||||||
Fair value of plan assets
|
1,254,680 | 1,386,818 | 47,592 | |||||||||
Funded status
|
(10,802 | ) | (307,460 | ) | (10,551 | ) | ||||||
Unrecognized net transition obligation
|
7,547 | 6,589 | 226 | |||||||||
Unrecognized pension loss
|
393,088 | 776,922 | 26,662 | |||||||||
Prepaid pension assets
|
389,833 | 476,051 | 16,337 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Benefit obligation:
|
||||||||||||
Vested benefit obligation
|
(131,959 | ) | (135,093 | ) | (4,636 | ) | ||||||
Non-vested benefit obligation
|
(13,122 | ) | (50,150 | ) | (1,721 | ) | ||||||
Accumulated benefit obligation
|
(145,081 | ) | (185,243 | ) | (6,357 | ) | ||||||
Additional benefits based on future salary increase
|
(19,584 | ) | - | - | ||||||||
Projected benefit obligation
|
(164,665 | ) | (185,243 | ) | (6,357 | ) | ||||||
Fair value of plan assets
|
31,871 | 36,965 | 1,269 | |||||||||
Funded status
|
(132,794 | ) | (148,278 | ) | (5,088 | ) | ||||||
Unrecognized net transition obligation
|
9,109 | - | - | |||||||||
Pension liabilities
|
(123,685 | ) | (148,278 | ) | (5,088 | ) |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Defined benefit pension plan:
|
||||||||||||||||
Service cost
|
8,116 | (958 | ) | 33,148 | 1,138 | |||||||||||
Interest cost
|
29,547 | 23,793 | 31,996 | 1,098 | ||||||||||||
Expected return on plan assets
|
(28,561 | ) | (27,669 | ) | (28,435 | ) | (976 | ) | ||||||||
Amortization
|
6,907 | 9,406 | 18,594 | 638 | ||||||||||||
Gain on curtailment
|
(1,630 | ) | - | - | - | |||||||||||
Net periodic pension cost
|
14,379 | 4,572 | 55,303 | 1,898 |
December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
Discount rate
|
2.50% | 2.00% – 2.25 | % | 2.00% – 2.25 | % | |||||||
Rate of increase in future compensation levels
|
2.50% – 3.00% | 1.20% – 3.00 | % | 1.20% – 5.55 | % | |||||||
Expected long-term rate of return on plan assets
|
2.50% | 0.75% – 2.25 | % | 0.75% –2.00 | % |
18.
|
Capital Lease Liability
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Capital lease liability
|
789,274 | 818,969 | 28,105 | |||||||||
Less: current portion
|
(194,685 | ) | (336,070 | ) | (11,533 | ) | ||||||
594,589 | 482,899 | 16,572 |
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
2011
|
336,070 | 11,533 | ||||||
2012
|
228,499 | 7,841 | ||||||
2013
|
198,905 | 6,826 | ||||||
2014
|
55,495 | 1,905 | ||||||
Total
|
818,969 | 28,105 |
19.
|
Stockholders’ Equity
|
(a)
|
Common stock
|
(b)
|
Capital surplus
|
(c)
|
Legal reserve
|
(d)
|
Distribution of earnings and dividend policy
|
2008
|
||||
NT$
|
||||
(in thousands, except for per share data)
|
||||
Dividends per share
|
||||
Cash
|
0.3 | |||
Stock (at par value)
|
0.3 | |||
0.6 | ||||
Employee bonuses-stock
|
2,009,768 | |||
Employee bonuses-cash
|
861,329 | |||
Remuneration to directors
|
57,422 | |||
2,928,519 |
(e)
|
Employee stock option plans
|
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, 2008
|
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% | 43.75 | ||||||
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) and Toppan CFI 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 and color filter production equipment and machinery.
|
Year of
investment
|
Tax incentive chosen
|
Tax exemption period
|
||
AUO:
|
||||
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
|
Exemption from corporate income taxes for five years
|
Jan. 1, 2010 – Dec. 31, 2014
|
||
2007, 2008
|
Exemption from corporate income taxes for five years
|
Pending designation
|
||
Toppan CFI:
|
||||
2004
|
Exemption from corporate income taxes for five years
|
Jun. 30, 2005 – Jun. 29, 2010
|
|
(b)
|
The components of income tax expense (benefit) were as follows:
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Current income tax expense
|
2,205,215 | 684,697 | 1,732,649 | 59,459 | ||||||||||||
Deferred income tax expense (benefit)
|
2,423,851 | (707,284 | ) | (544,755 | ) | (18,694 | ) | |||||||||
4,629,066 | (22,587 | ) | 1,187,894 | 40,765 |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
Expected income tax expense (benefit)
|
6,567,728 | (6,816,850 | ) | 1,461,317 | 50,148 | |||||||||||
Tax exemption
|
(2,975,267 | ) | - | (303,655 | ) | (10,421 | ) | |||||||||
Decrease (increase) in investment tax credits, including impact of amounts that expired unused (see Note 20(d))
|
(5,162,128 | ) | 3,387,963 | 4,250,789 | 145,875 | |||||||||||
Tax on undistributed retained earnings
|
2,297,061 | 1,404,104 | 63,852 | 2,191 | ||||||||||||
Increase (decrease) in valuation allowance
|
3,374,806 | 1,007,152 | (5,063,222 | ) | (173,755 | ) | ||||||||||
Effect of changes in statutory income tax rate
|
- | 1,872,338 | 1,176,427 | 40,372 | ||||||||||||
Permanent differences
|
327,415 | (380,862 | ) | (761,324 | ) | (26,126 | ) | |||||||||
Others
|
199,451 | (496,432 | ) | 363,710 | 12,481 | |||||||||||
Income tax expense (benefit)
|
4,629,066 | (22,587 | ) | 1,187,894 | 40,765 |
|
(c)
|
The components of deferred income tax assets (liabilities) were as follows:
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Current:
|
||||||||||||
Investment tax credits
|
5,545,151 | 2,308,078 | 79,207 | |||||||||
Net operating loss carryforwards
|
- | 172,656 | 5,925 | |||||||||
Unrealized losses and expenses
|
3,117,081 | 2,801,995 | 96,156 | |||||||||
Timing differences of revenue recognition between accounting and tax reporting
|
443,136 | 214,941 | 7,376 | |||||||||
Inventories devaluation
|
1,057,786 | 1,042,378 | 35,771 | |||||||||
Unrealized gains on financial assets
|
- | (38,862 | ) | (1,333 | ) | |||||||
Others
|
298,108 | 258,697 | 8,878 | |||||||||
10,461,262 | 6,759,883 | 231,980 | ||||||||||
Valuation allowance
|
(5,261,997 | ) | (1,384,260 | ) | (47,504 | ) | ||||||
Net deferred tax assets—current
|
5,199,265 | 5,375,623 | 184,476 | |||||||||
Noncurrent:
|
||||||||||||
Investment tax credits
|
12,212,776 | 12,023,328 | 412,606 | |||||||||
Net operating loss carryforwards
|
6,685,747 | 6,536,379 | 224,309 | |||||||||
Foreign investment gains under the equity method
|
(1,864,459 | ) | (1,687,155 | ) | (57,898 | ) | ||||||
Goodwill
|
(824,776 | ) | (865,881 | ) | (29,715 | ) | ||||||
Others
|
1,242,995 | 3,328,363 | 114,220 | |||||||||
17,452,283 | 19,335,034 | 663,522 | ||||||||||
Valuation allowance
|
(14,398,964 | ) | (15,955,664 | ) | (547,552 | ) | ||||||
Net deferred tax assets—noncurrent
|
3,053,319 | 3,379,370 | 115,970 | |||||||||
Total gross deferred tax assets
|
31,062,821 | 29,098,786 | 998,586 | |||||||||
Total gross deferred tax liabilities
|
(3,149,276 | ) | (3,003,869 | ) | (103,084 | ) | ||||||
Total valuation allowance
|
(19,660,961 | ) | (17,339,924 | ) | (595,056 | ) | ||||||
8,252,584 | 8,754,993 | 300,446 |
|
(d)
|
Investment tax credits
|
Year of assessment
|
Unused investment tax credits
|
Expiration year
|
||||||||||
NT$
|
US$
|
|||||||||||
(in thousands)
|
||||||||||||
2007
|
2,308,078 | 79,207 | 2011 | |||||||||
2008
|
6,711,219 | 230,309 | 2012 | |||||||||
2009
|
2,750,990 | 94,406 | 2013 | |||||||||
2010(estimated)
|
1,174,570 | 40,308 | 2014 | |||||||||
12,944,857 | 444,230 |
|
(e)
|
Net operating loss carryforwards
|
Year of assessment
|
Unused NOL
|
Expiration year
|
||||||||||
NT$
|
US$
|
|||||||||||
(in thousands)
|
||||||||||||
2006
|
502,275 | 17,237 | 2016 | |||||||||
2007
|
193,745 | 6,649 | 2017 | |||||||||
2008
|
64,151 | 2,201 | 2018 | |||||||||
2009
|
28,608,967 | 981,776 | 2019 | |||||||||
2009
|
4,017,959 | 137,885 | 2013 | |||||||||
2010 (estimated)
|
585,029 | 20,077 | 2020 | |||||||||
33,972,126 | 1,165,825 |
(f)
|
Assessments by the tax authorities
|
|
(g)
|
The integrated income tax system
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Unappropriated earnings:
|
||||||||||||
Earned in 1998 and thereafter
|
40,863,051 | 47,116,043 | 1,616,886 | |||||||||
ICA balance
|
5,369,104 | 5,160,950 | 177,109 |
For the year ended December 31,
|
|||
2009
|
2010
|
||
(actual)
|
(estimated)
|
||
Creditable ratio for earnings distribution to Republic of China resident stockholders
|
-
|
11.66%
|
21.
|
Earnings (loss) per Share (“(L) EPS”)
|
|
Basic (L) EPS for the years ended December 31, 2008, 2009 and 2010 were computed as follows:
|
For the year ended December 31,
|
||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||
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)
|
25,903,996 | 21,267,386 | (26,668,094 | ) | (26,769,335 | ) | 7,447,409 | 6,692,657 | ||||||||||||||||
Weighted-average number of shares outstanding during the year:
|
||||||||||||||||||||||||
Shares of common stock at beginning of year
|
7,865,201 | 7,865,201 | 8,505,720 | 8,505,720 | 8,827,046 | 8,827,046 | ||||||||||||||||||
Employee stock options
|
419 | 419 | - | - | - | - | ||||||||||||||||||
Convertible bonds
|
2,398 | 2,398 | - | - | - | - | ||||||||||||||||||
Issuance of shareholders’ stock dividends and employee stock bonus
|
637,136 | 637,136 | 291,005 | 291,005 | - | - | ||||||||||||||||||
8,505,154 | 8,505,154 | 8,796,725 | 8,796,725 | 8,827,046 | 8,827,046 | |||||||||||||||||||
Basic (L)EPS (NT$):
|
||||||||||||||||||||||||
Basic (L)EPS—net income (loss)
|
3.05 | 2.50 | (3.03 | ) | (3.04 | ) | 0.84 | 0.76 | ||||||||||||||||
Weighted-average number of shares outstanding during the year—retroactively adjusted
|
8,760,309 | 8,760,309 | ||||||||||||||||||||||
Basic EPS—net income —retroactively adjusted (NT$)
|
2.96 | 2.43 |
For the year ended December 31,
|
||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||
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
|
25,903,996 | 21,267,386 | (26,668,094 | ) | (26,769,335 | ) | 7,447,409 | 6,692,657 | ||||||||||||||||
Effects of potential common stock:
|
||||||||||||||||||||||||
Convertible bonds payable
|
53,055 | 39,792 | - | - | (507,514 | ) | (421,237 | ) | ||||||||||||||||
25,957,051 | 21,307,178 | (26,668,094 | ) | (26,769,335 | ) | 6,939,895 | 6,271,420 | |||||||||||||||||
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
|
8,505,154 | 8,505,154 | 8,796,725 | 8,796,725 | 8,827,046 | 8,827,046 | ||||||||||||||||||
Effects of potential common stock:
|
||||||||||||||||||||||||
Convertible bonds payable
|
204,708 | 204,708 | - | - | 132,467 | 132,467 | ||||||||||||||||||
Employee bonuses
|
135,795 | 135,795 | - | - | 31,027 | 31,027 | ||||||||||||||||||
Employee stock options
|
104 | 104 | - | - | - | - | ||||||||||||||||||
8,845,761 | 8,845,761 | 8,796,725 | 8,796,725 | 8,990,540 | 8,990,540 | |||||||||||||||||||
Diluted EPS (NT$)
|
2.93 | 2.41 | (3.03 | ) | (3.04 | ) | 0.77 | 0.70 |
For the year ended December 31,
|
||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
Pre-tax
|
After tax
|
|||||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||||||||
(in thousands, except for per share data)
|
||||||||||||||||||||||||
Weighted-average number of shares outstanding—retroactively adjusted
|
9,111,134 | 9,111,134 | ||||||||||||||||||||||
Diluted EPS—net income—retroactively adjusted (NT$)
|
2.85 | 2.34 |
22.
|
Additional Disclosure on Financial Instruments
|
|
(a)
|
Fair value information
|
December 31, 2009
|
||||||||
Carrying amount
|
Fair value
|
|||||||
NT$
|
NT$
|
|||||||
(in thousands)
|
Financial assets:
|
||||||||
Cash and cash equivalents
|
85,443,311 | 85,443,311 | ||||||
Receivables (including related parties)
|
62,345,500 | 62,345,500 | ||||||
Other financial assets—current
|
1,791,637 | 1,791,637 | ||||||
Foreign currency forward contracts
|
378,252 | 378,252 | ||||||
Interest rate swap contracts
|
3,963 | 3,963 | ||||||
Option contracts
|
9,743 | 9,743 | ||||||
Available-for-sale financial assets—noncurrent
|
2,012,265 | 2,012,265 | ||||||
Financial assets carried at cost—noncurrent
|
484,009 |
See (b) (3)
|
||||||
Refundable deposits
|
204,231 | 204,231 | ||||||
Restricted cash in bank
|
608,572 | 608,572 |
December 31, 2009
|
||||||||
Carrying amount
|
Fair value
|
|||||||
NT$
|
NT$
|
|||||||
(in thousands)
|
Financial liabilities:
|
||||||||
Short-term borrowings
|
1,945,227 | 1,945,227 | ||||||
Payables (including related parties)
|
92,530,484 | 92,530,484 | ||||||
Foreign currency forward contracts
|
933,289 | 933,289 | ||||||
Interest rate swap contracts
|
515,847 | 515,847 | ||||||
Option contracts
|
154,513 | 154,513 | ||||||
Equipment and construction in progress payables
|
23,788,714 | 23,788,714 | ||||||
Long-term borrowings (including current portion)
|
161,962,078 | 161,964,995 | ||||||
Convertible bonds payable (including current portion)
|
2,690,900 | 2,663,542 | ||||||
Bonds payable (including current portion)
|
15,270,668 | 15,659,771 | ||||||
Long-term payables and capital lease liabilities
|
1,611,653 | 1,611,653 |
December 31, 2010
|
||||||||||||||||
Carrying amount
|
Fair value
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
89,498,491 | 3,071,328 | 89,498,491 | 3,071,328 | ||||||||||||
Receivables (including related parties)
|
59,988,629 | 2,058,635 | 59,988,629 | 2,058,635 | ||||||||||||
Other financial assets—current
|
2,169,281 | 74,443 | 2,169,281 | 74,443 | ||||||||||||
Foreign currency forward contracts
|
425,443 | 14,600 | 425,443 | 14,600 | ||||||||||||
Option contracts
|
1,822 | 63 | 1,822 | 63 | ||||||||||||
Available-for-sale financial assets—noncurrent
|
1,373,687 | 47,141 | 1,373,687 | 47,141 | ||||||||||||
Financial assets carried at cost—noncurrent
|
896,294 | 30,758 |
See (b) (3)
|
See (b) (3)
|
||||||||||||
Refundable deposits
|
176,141 | 6,045 | 176,141 | 6,045 | ||||||||||||
Restricted cash in bank
|
162,221 | 5,567 | 162,221 | 5,567 |
December 31, 2010
|
||||||||||||||||
Carrying amount
|
Fair value
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial liabilities:
|
||||||||||||||||
Short-term borrowings
|
1,183,248 | 40,606 | 1,183,248 | 40,606 | ||||||||||||
Payables (including related parties)
|
93,881,108 | 3,221,727 | 93,881,108 | 3,221,727 | ||||||||||||
Foreign currency forward contracts
|
102,455 | 3,516 | 102,455 | 3,516 | ||||||||||||
Interest rate swap contracts
|
361,889 | 12,419 | 361,889 | 12,419 | ||||||||||||
Option contracts
|
180,020 | 6,178 | 180,020 | 6,178 | ||||||||||||
Equipment and construction in progress payables
|
19,881,973 | 682,291 | 19,881,973 | 682,291 | ||||||||||||
Long-term borrowings (including current portion)
|
146,948,074 | 5,042,830 | 146,948,074 | 5,042,830 | ||||||||||||
Convertible bonds payable
|
23,951,212 | 821,936 | 23,951,212 | 821,936 | ||||||||||||
Bonds payable (including current portion)
|
9,666,770 | 331,735 | 9,935,142 | 340,945 | ||||||||||||
Financial liabilities measured at fair value—convertible bonds payable
|
142,868 | 4,903 | 142,868 | 4,903 | ||||||||||||
Long-term payables and capital lease liabilities
|
972,633 | 33,378 | 972,633 | 33,378 |
|
(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, receivable/payable (including related parties), other current financial assets, restricted cash in bank, short-term borrowings, and equipment and construction-in-progress payables 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. The fair value of derivative financial instruments is based on the amount the Company expects to receive (positive) or to pay (negative) assuming that the contracts are settled in advance at the balance sheet date.
The fair value of foreign currency forward contracts is computed based on the spot rate and swap points provided by Reuters quotes system. The fair value of interest rate swap is estimated based on market price provided by financial institutions. Financial institutions use the evaluation models and assumptions to estimate the market price of the individual contract.
|
|
(3)
|
The fair value of investments in debt securities with no active market and financial assets carried at cost are unable to be estimated since there is no active market in trading those unlisted investments.
|
|
(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.
|
|
The discount rate adopted by the Company is the rate of return of a similar financial instrument in the market; the factors include the debtors’ credit rating and the remaining period for principal repayment, etc. The Company uses a discount rate of 0.6% to 1.9%. The fair value of convertible bonds payable is estimated based on Monte Carlo Simulation.
|
|
(7)
|
The fair value of long-term payables is estimated based on the present value of future discounted cash flows based on market interest rates for bank loans denominated in foreign currency.
|
|
(8)
|
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 closing 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, 2009
|
||||||
Publicly quoted
market prices
|
Fair value based on
valuation technique
|
|||||
NT$
|
NT$
|
|||||
(in thousands)
|
Financial assets:
|
||||||||
Cash and cash equivalents
|
85,443,311 | - | ||||||
Receivables (including related parties)
|
- | 62,345,500 | ||||||
Other current financial assets
|
- | 1,791,637 | ||||||
Foreign currency forward contracts
|
- | 378,252 | ||||||
Interest rate swap contracts
|
- | 3,963 | ||||||
Option contracts
|
- | 9,743 | ||||||
Available-for-sale financial assets—noncurrent
|
2,012,265 | - | ||||||
Refundable deposits
|
- | 204,231 | ||||||
Restricted cash in bank
|
608,572 | - | ||||||
December 31, 2009
|
||||||
Publicly quoted
market prices
|
Fair value based on
valuation technique
|
|||||
NT$
|
NT$
|
|||||
(in thousands)
|
Financial liabilities:
|
||||||||
Short-term borrowings
|
- | 1,945,227 | ||||||
Payables (including related parties)
|
- | 92,530,484 | ||||||
Foreign currency forward contracts
|
- | 933,289 | ||||||
Interest rate swap contracts
|
- | 515,847 | ||||||
Option contracts
|
- | 154,513 | ||||||
Equipment and construction-in-progress payables
|
- | 23,788,714 | ||||||
Long-term borrowings (including current portion)
|
- | 161,964,995 | ||||||
Convertible bonds payable (including current portion)
|
- | 2,663,542 | ||||||
Bonds payable (including current portion)
|
- | 15,659,771 | ||||||
Long-term payables and capital lease liabilities
|
- | 1,611,653 |
December 31, 2010
|
||||||||||||||||
Publicly quoted
market prices
|
Fair value based on
valuation technique
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial assets:
|
||||||||||||||||
Cash and cash equivalents
|
89,498,491 | 3,071,328 | - | - | ||||||||||||
Receivables (including related parties)
|
- | - | 59,988,629 | 2,058,635 | ||||||||||||
Other current financial assets
|
- | - | 2,169,281 | 74,443 | ||||||||||||
Foreign currency forward contracts
|
- | - | 425,443 | 14,600 | ||||||||||||
Option contracts
|
- | - | 1,822 | 62 | ||||||||||||
Available-for-sale financial assets—noncurrent
|
1,373,687 | 47,141 | - | - | ||||||||||||
Refundable deposits
|
- | - | 176,141 | 6,045 | ||||||||||||
Restricted cash in bank
|
162,221 | 5,567 | - | - | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Short-term borrowings
|
- | - | 1,183,248 | 40,606 | ||||||||||||
Payables (including related parties)
|
- | - | 93,881,108 | 3,221,727 | ||||||||||||
Foreign currency forward contracts
|
- | - | 102,455 | 3,516 | ||||||||||||
Equipment and construction-in-progress payables
|
- | - | 19,881,973 | 682,291 | ||||||||||||
Long-term borrowings (including current portion)
|
- | - | 146,948,074 | 5,042,830 | ||||||||||||
Convertible bonds payable (including current portion)
|
- | - | 23,951,212 | 821,936 | ||||||||||||
Bonds payable (including current portion)
|
- | - | 9,935,142 | 340,945 |
December 31, 2010
|
||||||||||||||||
Publicly quoted
market prices
|
Fair value based on
valuation technique
|
|||||||||||||||
NT$
|
US$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Interest rate swap contracts
|
- | - | 361,889 | 12,419 | ||||||||||||
Financial liabilities measured at fair value—convertible bonds payable
|
- | - | 142,868 | 4,903 | ||||||||||||
Option contracts
|
- | - | 180,020 | 6,178 | ||||||||||||
Long-term payables and capital lease liabilities
|
- | - | 972,633 | 33,378 |
|
(d)
|
As of December 31, 2009 and 2010, 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$3,902,317 thousand, NT$813,152 thousand and NT$3,986,083 (US$136,791) thousand for the years ended December 31, 2008, 2009 and 2010, respectively.
|
|
(f)
|
Financial liabilities exposed to cash flow risk resulting from change in interest rates were NT$123,198,156 thousand and NT$108,005,572 (US$3,706,437) thousand as of December 31, 2009 and 2010, respectively.
|
|
(g)
|
Financial risks relating to financial instruments
|
(1)
|
Market risk
|
|
(2)
|
Credit risk
The Company’s potential credit risk is derived primarily from cash in bank, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalent investments with various reputable financial institutions of high credit quality. The majority of these financial institutions are located in the ROC. Management performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any one institution. Management believes that there is a limited concentration of credit risk in cash and cash equivalent investments.
The majority of the Company’s customers are in the computer, consumer electronics and LCD TV industries. Management continuously evaluates the credit quality and financial strength of its customers. If necessary, the Company will request collateral from its customers. In 2008, 2009 and 2010, the Company’s five largest customers accounted for 39.4%, 37.3% and 39.02%, respectively, of the consolidated net sales.
|
|
(3)
|
Liquidity risk
The Company has sufficient working capital to meet its contractual obligations. Therefore, management believes that there is no significant liquidity risk.
As of December 31, 2010, the Company’s future cash flows for the outstanding forward exchange contracts were as follows:
|
Forward Exchange Contract Term
|
Outflow
|
Inflow
|
||
(in thousands)
|
(in thousands)
|
|||
From Jan. 2011 to Dec. 2011
|
US$ 184,500
EUR 166,500
CZK 174,645
NT $6,228,799
|
CNY 53,137
YEN 50,857,552
|
|
(4)
|
Cash flow risk resulting from change in interest rates
The Company’s long-term borrowings are primarily borrowings bearing floating-interest-rate. As a result, the Company is exposed to fluctuation in interest rates that affect cash flows for interest payments on these borrowings. At December 31, 2010, if the market interest rates on the Company’s floating-interest-rate borrowings had been 25 basis points higher with all other variables held constant, the future annual interest expense would have been NT$270,014 (US$9,266) thousand higher.
|
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
|
|
Daxon Technology Inc. (“Daxon”)
|
Subsidiary of Qisda
|
|
Qisda Co., Ltd. Suzhou (“QCSZ”)
|
Subsidiary of Qisda
|
|
BenQ Material Corp. (“BMC”) (Formerly “Daxon”)
|
Subsidiary of Qisda
|
|
Taiwan Nano Electro-Optical Technology (“Nano”)
|
Investee of Konly and Ronly; see note (i) below
|
|
Forhouse Corporation (“FH”)
|
Investee of DPTW
|
|
Fortech Optronics (Kunshan) Co., Ltd. (“FHSSKS”)
(Formerly “Nano-Kunshan”)
|
Subsidiary of FH
|
|
Fortech International Corp. (“Fortech”)
|
Subsidiary of FH
|
|
Fortress Optronics International Corporation (“Fortress”)
|
Subsidiary of FH
|
|
Fortech Optronics (Xiamen) Co., Ltd. (“FHSSXM”)
|
Subsidiary of FH
|
|
Forhouse International Holding Ltd. (“FHBVI”)
|
Subsidiary of FH
|
|
Changhong Electrics (Sichuan) Co., Ltd. (“Changhong Electrics”)
|
Joint investor of BVCH; see note (ii) below
|
|
TCL King Electrical Appliance (Huizhou) Co., Ltd. (“TCL Huizhou”)
|
Joint investor of BKHZ; see note (iii) below
|
|
TCL Corporation (“TCL”)
|
Related party of TCL Huizhou; see note (iii) below
|
|
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):
|
On September 15, 2010, Nano was merged into FH, with FH as the surviving entity. Accordingly, transactions with Nano have been disclosed as related-party transactions through September 15, 2010.
|
|
Note (ii):
|
On August 27, 2009, the Company jointly invested in BVCH with Changhong Electrics 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.
|
|
Note (iii):
|
On July 27, 2010, the Company jointly invested in BKHZ with TCL Huizhou through AULB. Accordingly, TCL Huizhou is considered as a related party of the Company, and related-party transactions were disclosed starting from July 27, 2010.
|
|
(1)
|
Sales
Net sales to related parties were as follows:
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Changhong Electrics
|
- | 6,827,504 | 15,676,929 | 537,987 | ||||||||||||
BenQ
|
360,951 | 8,945,171 | 9,750,242 | 334,600 | ||||||||||||
TCL Huizhou
|
- | - | 6,284,825 | 215,677 | ||||||||||||
QCSZ
|
14,250,810 | 1,887,418 | 3,260,601 | 111,894 | ||||||||||||
TCL
|
- | - | 2,998,896 | 102,913 | ||||||||||||
Others
|
4,910,953 | 3,225,511 | 8,478,196 | 290,947 | ||||||||||||
19,522,714 | 20,885,604 | 46,449,689 | 1,594,018 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Changhong Electrics
|
2,095,277 | 3,004,963 | 103,121 | |||||||||
TCL Huizhou
|
- | 2,228,630 | 76,480 | |||||||||
BenQ
|
1,910,070 | 1,211,755 | 41,584 | |||||||||
TCL
|
- | 895,806 | 30,741 | |||||||||
QCSZ
|
377,538 | 717,827 | 24,634 | |||||||||
FHSSXM
|
391,234 | 258,210 | 8,861 | |||||||||
Others
|
514,427 | 1,097,811 | 37,674 | |||||||||
Less: allowance for doubtful accounts
|
(4,703 | ) | (1,551 | ) | (53 | ) | ||||||
Less: allowance for sales returns and discounts
|
(11,455 | ) | (93,019 | ) | (3,192 | ) | ||||||
5,272,388 | 9,320,432 | 319,850 |
|
(2)
|
Disposal of property, plant and equipment, operating leases, and others
|
(3)
|
Purchases
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
FH
|
1,375,021 | 7,911,643 | 23,277,026 | 798,800 | ||||||||||||
BMC
|
8,903,819 | 11,136,574 | 13,995,913 | 480,299 | ||||||||||||
Raydium
|
6,331,750 | 7,534,212 | 8,488,130 | 291,288 | ||||||||||||
Cando
|
3,414,922 | 3,179,766 | 2,513,395 | 86,252 | ||||||||||||
FHSSKS
|
3,286,114 | 2,865,743 | 2,175,339 | 74,651 | ||||||||||||
Wellypower
|
880,226 | 2,861,898 | 1,793,100 | 61,534 | ||||||||||||
Fortech
|
1,248,284 | 6,057,071 | 467,437 | 16,041 | ||||||||||||
Fortress
|
848,435 | 4,360,141 | 446,513 | 15,323 | ||||||||||||
Others
|
5,649,956 | 10,414,681 | 19,296,062 | 662,185 | ||||||||||||
31,938,527 | 56,321,729 | 72,452,915 | 2,486,373 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
FH
|
3,261,661 | 5,639,312 | 193,525 | |||||||||
BMC
|
3,856,696 | 4,046,153 | 138,852 | |||||||||
Raydium
|
3,507,516 | 2,954,675 | 101,396 | |||||||||
FHBVI
|
- | 1,245,426 | 42,739 | |||||||||
TCL
|
- | 1,013,679 | 34,786 | |||||||||
Wellypower
|
1,241,353 | 669,014 | 22,959 | |||||||||
FHSSKS
|
1,360,294 | 497,292 | 17,066 | |||||||||
Fortech
|
2,585,496 | - | - | |||||||||
Fortress
|
2,160,210 | - | - | |||||||||
Others
|
4,710,935 | 4,059,114 | 139,297 | |||||||||
22,684,161 | 20,124,665 | 690,620 |
|
Transactions with FHBVI and other related parties are reversed in order not to double count the sales and purchase, if unrealized gain or losses is not realized though transactions with third parties. However, related accounts receivable and inventory are not reversed. The Company recognizes revenue upon the completion of transactions with third parties.
|
|
(4)
|
Acquisition of property, plant and equipment and others
In 2008, 2009 and 2010, the Company acquired property, plant, and equipment from related parties for a total consideration of NT$63,364 thousand, NT$59,326 thousand and NT$36,212 (US$1,243) thousand, respectively.
In 2008, 2009 and 2010, the Company paid commission and other expenses of NT$114,264 thousand, NT$386,237 thousand and NT$468,205 (US$16,067) thousand, respectively, to related parties.
As of December 31, 2009 and 2010, amounts due to related parties as a result of the aforementioned transactions amounted to NT$66,617 thousand and NT$98,601 (US$3,384) thousand, respectively.
|
|
(5)
|
In August 2007, M. Setek provided guarantees of YEN2,440,000 thousand for Matsumiya Semiconductor’s borrowings from Bank of Tokyo – Mitsubishi UFJ. In 2009, Matsumiya Semiconductor defaulted on the aforementioned loan as a result of its poor operating results. M. Setek, as guarantor of the loan, believes it is probable it will need to repay the loan on behalf of Matsumiya Semiconductor. As of December 31, 2009, the Company accrued a guarantee obligation of YEN2,074,000 thousand and recorded it under other current liabilities and long-term payables in accordance with the schedule of payments. The aforementioned obligation was actually paid in 2010.
|
|
(6)
|
Compensation to executive officers
In 2009 and 2010, compensation paid to the Company’s executive officers including directors, supervisors, president and vice-presidents was as follows:
|
For the year ended December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Salaries
|
144,612 | 155,504 | 5,336 | |||||||||
Compensation
|
25,698 | 68,216 | 2,341 | |||||||||
Service charges
|
3,317 | 23,270 | 799 | |||||||||
Employee bonuses
|
- | 41,878 | 1,437 |
24.
|
Pledged Assets
|
December 31,
|
||||||||||||||
Pledged assets
|
Pledged to secure
|
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||||
(in thousands)
|
||||||||||||||
Restricted cash in banks
|
R&D project, oil purchases, customs duties and guarantees for foreign workers
|
608,572 | 162,221 | 5,567 | ||||||||||
Inventories
|
Guarantees for unearned revenue
|
665,033 | - | - | ||||||||||
Building
|
Long-term borrowings
|
59,092,917 | 55,678,615 | 1,910,728 | ||||||||||
Machinery and equipment
|
Long-term borrowings and bonds payable
|
196,783,810 | 162,851,942 | 5,588,605 | ||||||||||
Available-for-sale financial assets
|
Long-term borrowings
|
2,404 | 5,142 | 176 | ||||||||||
Land
|
Long-term borrowings
|
1,540,247 | 7,124,284 | 244,485 | ||||||||||
258,692,983 | 225,822,204 | 7,749,561 |
25.
|
Commitments and Contingencies
|
December 31,
|
||||||||
Currency
|
2009
|
2010
|
||||||
(in thousands)
|
||||||||
USD
|
56,413 | 2,337 | ||||||
YEN
|
15,820,027 | 3,570,203 | ||||||
NTD
|
38,220 | - | ||||||
CNY
|
- | 18,725 |
(b)
|
Technology licensing agreements
|
(c)
|
Purchase commitments
|
(d)
|
Operating lease agreements
|
Year
|
Minimum lease commitments
|
||||||||
NT$
|
US$
|
||||||||
(in thousands)
|
|||||||||
2011
|
1,012,190 | 34,735 | |||||||
2012
|
927,779 | 31,839 | |||||||
2013
|
815,087 | 27,971 | |||||||
2014
|
619,142 | 21,247 | |||||||
Thereafter
|
2,989,504 | 102,591 |
|
(e)
|
Litigation
|
(1)
|
Alleged patent infringements
In December 2006, LG Display Co., Ltd. (“LGD”) filed a lawsuit in the United States District Court for the District of Delaware against AUO and other TFT-LCD manufacturers claiming patent infringement. AUO have retained legal counsel to handle this matter. LGD is seeking, among other things, monetary damages for willful infringement and an injunction against future infringement. In March 2007, AUO filed a suit in the United States District Court for the Western District of Wisconsin against LGD and LGD America, claiming infringement of certain of our patents in the United States relating to the manufacturing of TFT-LCD products. AUO is seeking, among other things, monetary damages and enhanced damage for willful infringement and an injunction against future infringement. The claims against the Company and the counterclaims filed by AUO were consolidated in June 2007 in the United States District Court for the District of Delaware (the “Delaware Court”). Trial for this case was held in June 2009. In February 2010, the Delaware Court found that LGD and LGD America have infringed AUO’s four patents asserted at trial and in April 2010, the Delaware Court further found that AUO did not infringe any of LGD’s patents as asserted at trial. Although the findings of the United States District Court for the District of Delaware were in favor of AUO, the Company cannot assure you that LGD and LGD America will not appeal this case to the superior courts. Moreover, as of April 22, 2011, the final judgment has not been rendered and the Delaware Court has not approved the permanent injunction toward LGD and LGD America. Therefore, while management intends to defend the suit vigorously, the ultimate outcome of the matter is uncertain, and the amount of possible loss, if any, is currently not estimable. Management is reviewing the merits of this suit on an ongoing basis.
|
|
(2)
|
Investigation for alleged violation of antitrust and competition laws
AUO and certain of its subsidiaries, along with various competitors in the TFT-LCD industry, are under investigation for alleged violation of antitrust and competition laws. Specifically, since December 2006, AUO and certain of its overseas subsidiaries have become involved in antitrust investigations by the United States Department of Justice (the “U.S. DOJ”), the Commission of the European Communities Directorate-General for Competition (the “DG COMP”), the Canada Competition Bureau, the Taiwan Fair Trade Commission, the Korea Fair Trade Commission and the Japan Fair Trade Commission, concerning the allegations of price fixing by manufacturers of TFT-LCD panels. In January 2009, the Taiwan Fair Trade Commission visited AUO’s office in Taiwan and requested certain information from AUO as part of its investigations into the TFT-LCD industry. In November 2009, the Taiwan Fair Trade Commission notified AUO of the termination of its investigation. The Japan Fair Trade Commission and the Korea Fair Trade Commission also requested certain information from AUO as part of their respective investigations in 2007 and 2009, respectively. In 2009, the DG COMP issued a “Statement of Objections” to a number of LCD manufacturers, including AUO, alleging anti-competitive activities. AUO received DG COMP’s Statement of Objections in May 2009 and submitted AUO’s reply in July 2009. AUO and certain LCD manufacturers attended the hearing held by the DG COMP regarding its investigation in September 2009. In December 2010, DG COMP announced the imposition of fines on five LCD manufacturers, including EUR116.8 million on AUO. AUO posted a bond in the full amount of the fine in March 2011 in compliance with the applicable rules and regulations for filing an appeal to the General Court of DG COMP to vigorously defend itself. The ultimate outcome of this case is still pending and it is anticipated to take at least two years. AUO has been in cooperation with the investigation in the past four years and AUO intends to continue to cooperate with these investigations as warranted as part of AUO’s ongoing defense of these matters. Management is reviewing the merits of this lawsuit on an on-going basis.
|
|
(3)
|
Antitrust civil actions lawsuits in the United States and Canada
There are also over 100 civil lawsuits filed against AUO and/or its subsidiaries in the United States and several civil lawsuits in Canada alleging, among other things, antitrust violations. The putative antitrust class actions filed in the United States have been consolidated for discovery in the Northern California Court. In the amended consolidated complaints, the plaintiffs are seeking, among other things, unspecified monetary damages and an enjoinment from the alleged antitrust conspiracy. The Court has issued an order certifying two types of classes that may proceed against AUO and other TFT-LCD companies: direct purchasers and indirect purchasers. The civil actions are expected to be tried in and after February 2012. While the management intends to defend the suit vigorously, the ultimate outcome of the matter is uncertain, and the amount of possible loss, if any, is currently not estimable. Management is reviewing the merits of this lawsuit on an on-going basis.
Since the fourth quarter of 2009, AT&T Corp and its affiliates (collectively, “AT&T”), Motorola Inc. (“Motorola”), Tracfone, Best Buy and Nokia Corporation (“Nokia”), filed civil lawsuits against a number of LCD manufacturers including AUO in the United States and, in the case of Nokia, in both the United States and the United Kingdom, claiming among other things, unspecified monetary damages and an enjoinment from the alleged antitrust conspiracy. AUO intends to defend these lawsuits vigorously, and at this stage, the final outcome of these matters is uncertain, and the amount of possible loss, if any, is currently not estimable.
Since August 2010, a number of states in the U.S, such as New York State, Illinois State, Florida State, Oregon State, Wisconsin State, Missouri State, Arkansas State, Michigan State, Washington State, West Virginia State, California State, South Carolina State, Mississippi State and several retailers and distributors also filed lawsuits against a number of LCD manufacturers including AUO. AUO has retained counsel to handle the related matters. The class actions are in the discovery phase and in the early stages. AUO intends to defend these lawsuits vigorously, and at this stage, the final outcome of these matters is uncertain, and the amount of possible loss, if any, is currently not estimable. Management is reviewing the merits of these civil lawsuits on an on-going basis.
The Company has not made provisions with respect to the civil lawsuits.
In addition to the matters described above, the Company is also a party to other litigations or proceedings that arise during the ordinary course of business. Except as mentioned above, the Company is not involved in any material litigation or proceeding which could be expected to have a material adverse effect on the Company’s business or results of operations.
|
|
(f)
|
Sales agreements
Since 2006, M. Setek entered into long-term sales agreements with five customers. The agreements provide that, from 2006 to 2016, M. Setek will sell certain silicon materials or wafers to these customers at certain quantities and prices, with the proportionate installment prepayments made to M. Setek. These customers may request M. Setek to terminate the agreements and to reimburse the remaining prepayments, if delivery schedule is not met. As of December 31, 2010, the remaining unearned revenue amounted to US$243,034 thousand.
|
|
(g)
|
Others
On January 21, 2010, the Taiwan Supreme Administrative Court dismissed an appeal by the Environmental Protection Administration of the Executive Yuan of Taiwan relating to the development of Central Taiwan Science Park located in Seven Star Farm. The Seven Star Farm is the location where the Company is building its new 8.5 generation manufacturing plants. As a result of the dismissal, the Central Taiwan Science Park Development Office was required to make supplemental submission of its environmental assessment for the construction of Seven Star Farm of the Central Taiwan Science Park. In response, on August 31, an updated environmental impact assessment was further reviewed and approved by the Environmental Protection Agency of the ROC Executive Yuan (“EPA”). The EPA issued its official announcement of the approval of such updated environmental impact assessment in favor of the continued development of the third phase expansion. On September 6, 2010, the Central Taiwan Science Park Development Office has received the new development approval from the National Science Council of the Executive Yuan to allow the third phase to continue. At present, the Company does not believe this event to have a material adverse effect on the Company’s operations under the preliminary presumption of administrative trust-protection principle between the government and people since the Company has obtained the development approval issued by the governmental authorities in due course.
|
26.
|
Segment Information
|
|
(a)
|
Industrial information
|
For the year ended December 31, 2010
|
||||||||||||||||
Display
|
Solar
|
Adjustment
and eliminations
|
Consolidated Total
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||
(in thousands)
|
||||||||||||||||
Net sales from external customers
|
456,725,565 | 10,432,399 | - | 467,157,964 | ||||||||||||
Intercompany sales
|
449,103,520 | 233,402 | (449,336,922 | ) | - | |||||||||||
Reportable segment sales
|
905,829,085 | 10,665,801 | (449,336,922 | ) | 467,157,964 | |||||||||||
Reportable segment profit (loss) (Note)
|
13,102,670 | (2,606,006 | ) | - | 10,496,664 | |||||||||||
Interest expense
|
(4,233,127 | ) | ||||||||||||||
Investment income
|
681,331 | |||||||||||||||
Other non-operating income and gains, net
|
1,651,113 | |||||||||||||||
Income before income tax
|
8,595,981 | |||||||||||||||
Identifiable assets
|
563,265,249 | 50,601,283 | (91,722 | ) | 613,774,810 | |||||||||||
Equity-method investments
|
15,540,959 | |||||||||||||||
Total assets
|
629,315,769 |
Note:
|
Reportable segment profit (loss) represents net sales minus cost of goods sold and operating expenses.
Identifiable assets comprised of current assets, property, plant and equipment, intangible assets, and other assets. An amount of NT$91,722 (US$3,148) thousand is adjusted and eliminated due to intercompany transactions.
|
|
(b)
|
Geographic information
|
For the year ended December 31, 2008
|
||||||||||||||||||||
Taiwan
|
Asia(Note 2)
|
Others
|
Adjustment
and
eliminations
|
Consolidated
Total
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Net sales from external customers
|
420,523,981 | 3,401,239 | 2,973 | - | 423,928,193 | |||||||||||||||
Intercompany sales
|
11,935,341 | 348,997,419 | 200,727 | (361,133,487 | ) | - | ||||||||||||||
Total net sales
|
432,459,322 | 352,398,658 | 203,700 | (361,133,487 | ) | 423,928,193 | ||||||||||||||
Geographic profit (loss) (Note1)
|
27,014,828 | 2,392,637 | (42,997 | ) | 1,424,010 | 30,788,478 | ||||||||||||||
Interest expense
|
(4,203,946 | ) | ||||||||||||||||||
Investment loss
|
(313,621 | ) | ||||||||||||||||||
Income before income tax
|
26,270,911 | |||||||||||||||||||
Tangible long-lived assets
|
355,977,902 | 35,804,080 | 178,597 | - | 391,960,579 | |||||||||||||||
Identifiable assets
|
510,036,149 | 95,113,656 | 578,295 | (45,444,063 | ) | 560,284,037 | ||||||||||||||
Equity-method investments
|
6,651,601 | |||||||||||||||||||
Total assets
|
566,935,638 |
For the year ended December 31, 2009
|
||||||||||||||||||||
Taiwan
|
Asia(Note 2)
|
Others
|
Adjustment
and
eliminations
|
Consolidated
Total
|
||||||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Net sales from external customers
|
350,519,833 | 8,811,512 | - | - | 359,331,345 | |||||||||||||||
Intercompany sales
|
32,084,220 | 336,126,006 | 409,759 | (368,619,985 | ) | - | ||||||||||||||
Total net sales
|
382,604,053 | 344,937,518 | 409,759 | (368,619,985 | ) | 359,331,345 | ||||||||||||||
Geographic profit (loss) (Note 1)
|
(28,172,394 | ) | (2,303,168 | ) | (95,762 | ) | 6,610,876 | (23,960,448 | ) | |||||||||||
Interest expense
|
(3,446,588 | ) | ||||||||||||||||||
Investment income
|
139,635 | |||||||||||||||||||
Loss before income tax
|
(27,267,401 | ) | ||||||||||||||||||
Tangible long-lived assets
|
332,233,758 | 60,098,966 | 214,504 | - | 392,547,228 | |||||||||||||||
Identifiable assets
|
531,478,229 | 180,442,766 | 1,168,450 | (100,183,261 | ) | 612,906,184 | ||||||||||||||
Equity-method investments
|
9,706,574 | |||||||||||||||||||
Total assets
|
622,612,758 |
For the year ended December 31, 2010
|
||||||||||||||||||||
Taiwan
|
Asia(Note 2)
|
Others
|
Adjustment
and
eliminations
|
Consolidated
Total
|
||||||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||||
(in thousands)
|
||||||||||||||||||||
Net sales from external customers
|
442,737,231 | 24,420,733 | - | - | 467,157,964 | |||||||||||||||
Intercompany sales
|
48,730,497 | 396,543,809 | 697,026 | (445,971,332 | ) | - | ||||||||||||||
Total net sales
|
491,467,728 | 420,964,542 | 697,026 | (445,971,332 | ) | 467,157,964 | ||||||||||||||
Geographic profit (loss) (Note1)
|
9,593,016 | 2,344,145 | (49,371 | ) | 259,987 | 12,147,777 | ||||||||||||||
Interest expense
|
(4,233,127 | ) | ||||||||||||||||||
Investment income
|
681,331 | |||||||||||||||||||
Income before income tax
|
8,595,981 | |||||||||||||||||||
Tangible long-lived assets
|
313,306,181 | 69,073,183 | 3,249,020 | - | 385,628,384 | |||||||||||||||
Identifiable assets
|
507,987,134 | 189,825,054 | 5,008,289 | (89,045,667 | ) | 613,774,810 | ||||||||||||||
Equity-method investments
|
15,540,959 | |||||||||||||||||||
Total assets
|
629,315,769 |
Note 1:
|
Geographic profit (loss) represents net sales minus cost of goods sold and operating and net non-operating income (expenses), excluding interest expense and investment income (loss).
|
Note 2:
|
Net sales attributed to the People’s Republic of China based upon the location of customers placing orders amounted to NT$82,626,965 thousand, NT$98,430,471 thousand and NT$140,976,452 (US$4,837,902) thousand for the years ended December 31, 2008, 2009 and 2010, respectively. Tangible long-lived assets located in the People’s Republic of China amounted to NT$35,798,587 thousand, NT$31,328,059 thousand and NT$31,883,762 (US$1,094,158) thousand as of December 31, 2008, 2009 and 2010, respectively. Tangible long-lived assets located in Japan amounted to NT$4,548 thousand, NT$28,769,429 thousand and NT$31,585,866 (US$1,083,935 thousand) as of December 31, 2008, 2009 and 2010, respectively.
|
|
(c)
|
Major customer information
|
For the year ended December 31,
|
||||||||||||||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||||||||||||||
Amount | % |
Amount
|
%
|
Amount
|
%
|
|||||||||||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Samsung
|
62,865,559 | 15 | 60,553,035 | 17 | 71,227,688 | 2,444,327 | 15 |
27.
|
Subsequent Events
|
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 | |||
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$
|
||||
(in thousands)
|
||||
Net sales
|
1,510,710 | |||
Loss attributable to equity holders of AU Optronics Corp.
|
(708,571 | ) |
For the year ended
December 31,
|
||||||||
2008
|
2009
|
|||||||
NT$
|
NT$
|
|||||||
(in thousands)
|
||||||||
Net sales
|
437,966,255 | 366,661,919 | ||||||
Income (loss) attributable to equity holders of AU Optronics Corp.
|
13,479,629 | (31,380,060 | ) |
|
(4)
|
Acquisition of AUST
|
NT$
|
||||
(in millions)
|
||||
Identifiable net assets acquired
|
1,300 | |||
Gain on bargain purchase
|
(11 | ) | ||
Total purchase consideration
|
1,289 |
|
(b)
|
Noncontrolling interests
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net income (loss) attributable to AU Optronics Corp., US GAAP
|
13,089,654 | (28,670,321 | ) | 4,244,323 | 145,653 | |||||||||||
Transfer (to) from noncontrolling interest
|
||||||||||||||||
Decrease in AUO’s paid-in capital due to purchase of common shares of DPTW and Lextar
|
- | (8,445 | ) | - | - | |||||||||||
Decrease in AUO’s paid-in capital due to purchase of common shares of BVTW
|
- | - | (17,961 | ) | (616 | ) | ||||||||||
Increase (decrease) in AUO’s paid-in capital for sale of DPTW’s common shares
|
- | (28,323 | ) | 17,497 | 600 | |||||||||||
Increase in AUO’s paid-in capital for sale of Lextar’s common shares
|
- | - | 107,348 | 3,684 | ||||||||||||
Increase in AUO’s paid-in capital for disproportionate participation in Lextar’s capital increase
|
- | 76,039 | 1,234,361 | 42,360 | ||||||||||||
Increase (decrease) in AUO’s paid-in capital for disproportionate participation in DPTW’s capital increase
|
- | (8,039 | ) | 562,689 | 19,310 | |||||||||||
Decrease in AUO’s paid-in capital for disproportionate participation in BVTW’s capital increase
|
- | - | (66,424 | ) | (2,280 | ) | ||||||||||
Increase in AUO’s paid-in capital for disproportionate participation in ACTW’s capital increase
|
- | - | 9,111 | 312 | ||||||||||||
Decrease in AUO’s paid-in capital for disproportionate participation in M. Setek’s capital increase
|
- | - | (703,387 | ) | (24,138 | ) | ||||||||||
Net transfer (to) from noncontrolling interest
|
- | 31,232 | 1,143,234 | 39,232 | ||||||||||||
Change from net income (loss) attributable to AU Optronics Corp. and transfers (to) from noncontrolling interest
|
13,089,654 | (28,639,089 | ) | 5,387,557 | 184,885 |
|
(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,
|
||||||||||||||||
2008
|
2009 | 2010 | ||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands, except for per share data)
|
||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp., ROC GAAP
|
21,267,386 | (26,769,335 | ) | 6,692,657 | 229,673 | |||||||||||
US GAAP adjustments:
|
||||||||||||||||
a) Purchase method of accounting for acquisition of Unipac
|
||||||||||||||||
-Amortization of intangible assets
|
(1,049,496 | ) | - | - | - | |||||||||||
-Depreciation
|
(22,266 | ) | (79,663 | ) | (36,311 | ) | (1,246 | ) |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009 | 2010 | ||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
(in thousands, except for per share data) | ||||||||||||||||
-Disposals of available-for-sale securities
|
14,030 | 136,731 | - | - | ||||||||||||
-Impairment of available-for-sale securities
|
(182,466 | ) | - | - | - | |||||||||||
Acquisition method of accounting for acquisition of M. Setek
|
||||||||||||||||
-Impairment loss
|
- | 653,609 | - | - | ||||||||||||
-Re-measurement loss
|
- | (1,445,660 | ) | - | - | |||||||||||
-Gain on bargain purchase
|
- | 162,682 | - | - | ||||||||||||
Acquisition method of accounting for others
|
- | 41,099 | 10,515 | 361 | ||||||||||||
b) Noncontrolling interests
|
||||||||||||||||
-Decrease in ownership not resulting in loss of control
|
- | 28,323 | (124,845 | ) | (4,284 | ) | ||||||||||
c) Compensation
|
||||||||||||||||
-Remuneration to directors and supervisors
|
13,397 | - | - | - | ||||||||||||
-Employee bonuses
|
||||||||||||||||
-Adjustment to fair value
|
(6,520,538 | ) | (216,324 | ) | - | - | ||||||||||
d) Long-term equity investments
|
||||||||||||||||
-Investment losses
|
(192,840 | ) | (36,241 | ) | 30,426 | 1,044 | ||||||||||
-Impairment loss
|
(1,928,709 | ) | - | - | - | |||||||||||
d) Deconsolidation of subsidiary
|
- | - | 362,842 | 12,452 | ||||||||||||
e) Convertible bonds
|
1,252,181 | - | (678,777 | ) | (23,294 | ) | ||||||||||
g) Pension expense
|
2,307 | 1,979 | 1,707 | 58 | ||||||||||||
h) Depreciation of buildings
|
(1,728,045 | ) | (2,209,816 | ) | (2,367,968 | ) | (81,262 | ) | ||||||||
i) Hedging derivative financial instruments
|
32,625 | (32,625 | ) | - | - | |||||||||||
j) Compensated absences expense
|
80,470 | (230,102 | ) | (41,294 | ) | (1,417 | ) | |||||||||
l) Escalation adjustment of rent expense
|
2,129 | 2,129 | 2,129 | 73 | ||||||||||||
m) Tax effect of the above US GAAP adjustments
|
430,476 | 1,031,220 | 920,039 | 31,573 | ||||||||||||
m) Valuation allowance for deferred tax assets related to the above US GAAP adjustments
|
(80,789 | ) | (96,163 | ) | (54,527 | ) | (1,871 | ) | ||||||||
m) 10% surtax on undistributed retained earnings and others
|
1,699,802 | 387,836 | (472,270 | ) | (16,207 | ) | ||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp., US GAAP
|
13,089,654 | (28,670,321 | ) | 4,244,323 | 145,653 |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009 | 2010 | ||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
Earnings (loss) per share:
|
||||||||||||||||
Basic
|
1.52 | (3.26 | ) | 0.48 | 0.02 | |||||||||||
Diluted
|
1.49 | (3.26 | ) | 0.48 | 0.02 | |||||||||||
Weighted-average number of shares outstanding (in thousands):
|
||||||||||||||||
Basic
|
8,606,669 | 8,785,178 | 8,827,046 | |||||||||||||
Diluted
|
8,817,625 | 8,785,178 | 8,827,046 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Equity attributable to stockholders of AU Optronics Corp., ROC GAAP
|
262,087,137 | 268,160,933 | 9,202,503 | |||||||||
a) Purchase method of accounting for acquisition of Unipac
|
||||||||||||
- Goodwill
|
10,946,732 | 10,946,732 | 375,660 | |||||||||
- Other assets
|
(106,890 | ) | (143,200 | ) | (4,914 | ) | ||||||
Acquisition method of accounting for acquisition of M. Setek
|
||||||||||||
- Impairment loss
|
653,609 | 653,609 | 22,430 | |||||||||
- Re-measurement loss
|
(1,445,660 | ) | (1,445,660 | ) | (49,611 | ) | ||||||
- Gain on bargain purchase
|
162,682 | 162,682 | 5,583 | |||||||||
Acquisition method of accounting for other
|
41,099 | 51,614 | 1,771 | |||||||||
d) Subsidiaries and long-term equity investments
|
||||||||||||
-Adjustment for changes in investees’ equity
|
756,923 | 1,540,365 | 52,861 | |||||||||
-Deconsolidation of subsidiary
|
- | 359,902 | 12,351 | |||||||||
d) Cumulative translation adjustments
|
38,603 | 38,346 | 1,316 | |||||||||
e) Convertible bonds
|
- | (780,564 | ) | (26,787 | ) | |||||||
g) Defined benefit plan
|
||||||||||||
- Accrued pension cost
|
(20,698 | ) | (19,002 | ) | (652 | ) | ||||||
- Recognition of funded status under FASB ASC Subtopic 715-60
|
(375,411 | ) | (756,028 | ) | (25,945 | ) | ||||||
h) Accumulated depreciation of buildings
|
(8,489,509 | ) | (10,857,477 | ) | (372,597 | ) | ||||||
j) Accrued compensated absences
|
(391,808 | ) | (433,102 | ) | (14,863 | ) |
l) Accrued rental expense and adjustment to land cost
|
(96,539 | ) | (94,410 | ) | (3,240 | ) | ||||||
m) Deferred income tax assets and liabilities
|
2,508,712 | 3,005,319 | 103,134 | |||||||||
Equity attributable to stockholders of AU Optronics Corp., US GAAP
|
266,268,982 | 270,390,059 | 9,279,000 |
(s)
|
US GAAP condensed consolidated financial statements
|
|
(1)
|
Condensed consolidated balance sheets
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Assets
|
||||||||||||
Current assets
|
195,902,913 | 205,289,002 | 7,044,921 | |||||||||
Long-term investments
|
12,505,585 | 17,995,672 | 617,559 | |||||||||
Property, plant and equipment, net
|
385,571,559 | 376,453,239 | 12,918,780 | |||||||||
Goodwill and intangible assets
|
25,036,528 | 24,834,781 | 852,257 | |||||||||
Other assets
|
7,125,197 | 7,481,711 | 256,751 | |||||||||
Total Assets
|
626,141,782 | 632,054,405 | 21,690,268 | |||||||||
Liabilities and Equity
|
||||||||||||
Current liabilities
|
203,120,887 | 190,887,914 | 6,550,718 | |||||||||
Long-term liabilities
|
145,004,401 | 157,792,751 | 5,414,988 | |||||||||
Equity attributable to stockholders of AU Optronics Corp.
|
266,268,982 | 270,390,059 | 9,279,000 | |||||||||
Noncontrolling interests
|
11,747,512 | 12,983,681 | 445,562 | |||||||||
Total Liabilities and Equity
|
626,141,782 | 632,054,405 | 21,690,268 |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net sales
|
423,928,193 | 358,732,803 | 467,157,964 | 16,031,502 | ||||||||||||
Cost of goods sold
|
380,968,342 | 357,966,412 | 435,549,584 | 14,946,794 | ||||||||||||
Gross profit
|
42,959,851 | 766,391 | 31,608,380 | 1,084,708 | ||||||||||||
Operating expenses
|
22,811,722 | 29,076,075 | 26,209,188 | 899,423 | ||||||||||||
Operating income (loss)
|
20,148,129 | (28,309,684 | ) | 5,399,192 | 185,285 | |||||||||||
Non-operating income (expenses), net
|
(4,061,975 | ) | (1,352,661 | ) | 69,188 | 2,374 | ||||||||||
Income (loss) before income taxes
|
16,086,154 | (29,662,345 | ) | 5,468,380 | 187,659 | |||||||||||
Income tax expense (benefit)
|
2,579,576 | (1,359,533 | ) | 745,015 | 25,567 | |||||||||||
Net income (loss)
|
13,506,578 | (28,302,812 | ) | 4,723,365 | 162,092 | |||||||||||
Less net income attributable to noncontrolling interests
|
416,924 | 367,509 | 479,042 | 16,439 | ||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp.
|
13,089,654 | (28,670,321 | ) | 4,244,323 | 145,653 |
For the year ended December 31, | ||||||||||||||||
2008 | 2009 | 2010 | ||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp.
|
13,089,654 | (28,670,321 | ) | 4,244,323 | 145,653 | |||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Derivative and hedging activities
|
(727,376 | ) | 226,874 | 186,593 | 6,403 | |||||||||||
Unrealized gains (losses) on securities
|
(1,693,174 | ) | 1,680,476 | (725,095 | ) | (24,883 | ) | |||||||||
Cumulative translation adjustments
|
1,277,232 | (611,237 | ) | (634,165 | ) | (21,763 | ) | |||||||||
Defined benefit plan
|
(18,548 | ) | (120,856 | ) | (298,456 | ) | (10,242 | ) | ||||||||
Other comprehensive income (loss), net of tax
|
(1,161,866 | ) | 1,175,257 | (1,471,123 | ) | (50,485 | ) | |||||||||
Comprehensive income (loss) attributable to stockholders of AU Optronics Corp.
|
11,927,788 | (27,495,064 | ) | 2,773,200 | 95,168 |
For the year ended December 31, | ||||||||||||||||
2008 | 2009 | 2010 | ||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net income attributable to noncontrolling interests
|
416,924 | 367,509 | 479,042 | 16,439 | ||||||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Derivative and hedging activities
|
- | 123 | 34 | 1 | ||||||||||||
Unrealized gains on securities
|
- | 135 | 592 | 21 | ||||||||||||
Cumulative translation adjustments
|
32,727 | (73,534 | ) | 33,342 | 1,144 | |||||||||||
Defined benefit plan
|
(1,432 | ) | (2,269 | ) | (3,965 | ) | (136 | ) | ||||||||
Other comprehensive income (loss), net of tax
|
31,295 | (75,545 | ) | 30,003 | 1,030 | |||||||||||
Comprehensive income attributable to noncontrolling interests
|
448,219 | 291,964 | 509,045 | 17,469 |
|
(4)
|
Changes in equity attributable to AU Optronics Corp., noncontrolling interests and total equity under US GAAP
|
Years ended December 31, 2008, 2009 and 2010
|
||||||||||||
Equity
attributable to AU Optronics Corp. |
Noncontrolling interests
|
Total equity
|
||||||||||
(in thousands)
|
||||||||||||
Balance at January 1, 2008
|
291,865,822 | 8,842,012 | 300,707,834 | |||||||||
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 | (458,651 | ) | 207,918 | ||||||||
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 | 123 | 226,997 | |||||||||
Unrealized gains on securities
|
1,680,476 | 135 | 1,680,611 | |||||||||
Cumulative translation adjustments
|
(611,237 | ) | (73,534 | ) | (684,771 | ) | ||||||
Defined benefit plan
|
(120,856 | ) | (2,269 | ) | (123,125 | ) | ||||||
Comprehensive income (loss)
|
(27,495,064 | ) | 291,964 | (27,203,100 | ) | |||||||
Balance at December 31, 2009
|
266,268,982 | 11,747,512 | 278,016,494 |
Years ended December 31, 2008, 2009 and 2010
|
||||||||||||
Equity
attributable to AU Optronics Corp. |
Noncontrolling interests
|
Total equity
|
||||||||||
(in thousands)
|
||||||||||||
Cash dividends
|
- | (238,860 | ) | (238,860 | ) | |||||||
Net transfer from noncontrolling interest
|
1,143,234 | (1,143,234 | ) | - | ||||||||
Proceeds from subsidiaries capital increase
|
- | 4,338,348 | 4,338,348 | |||||||||
Effect of deconsolidation of subsidiary
|
(2,940 | ) | (3,870,141 | ) | (3,873,081 | ) | ||||||
Other changes in equity
|
207,583 | 1,641,011 | 1,848,594 | |||||||||
Comprehensive income (loss):
|
||||||||||||
Net income
|
4,244,323 | 479,042 | 4,723,365 | |||||||||
Other comprehensive income, net of tax:
|
||||||||||||
Derivative and hedging activities
|
186,593 | 34 | 186,627 | |||||||||
Unrealized gains (losses) on securities
|
(725,095 | ) | 592 | (724,503 | ) | |||||||
Cumulative translation adjustments
|
(634,165 | ) | 33,342 | (600,823 | ) | |||||||
Defined benefit plan
|
(298,456 | ) | (3,965 | ) | (302,421 | ) | ||||||
Comprehensive income
|
2,773,200 | 509,045 | 3,282,245 | |||||||||
Balance at December 31, 2010
|
270,390,059 | 12,983,681 | 283,373,740 | |||||||||
Balance at December 31, 2010 (in US$)
|
9,279,000 | 445,562 | 9,724,562 |
(5)
|
Condensed consolidated statements of cash flows
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net cash provided by (used in):
|
||||||||||||||||
Operating activities
|
132,044,194 | 58,566,108 | 90,852,162 | 3,117,782 | ||||||||||||
Investing activities
|
(101,242,355 | ) | (68,550,309 | ) | (87,866,077 | ) | (3,015,308 | ) | ||||||||
Financing activities
|
(37,473,199 | ) | 11,467,617 | 1,393,867 | 47,833 | |||||||||||
Effect of exchange rate change on cash and cash equivalents
|
216,450 | 525,198 | (327,772 | ) | (11,248 | ) | ||||||||||
Net change in cash and cash equivalents
|
(6,454,910 | ) | 2,008,614 | 4,052,180 | 139,059 | |||||||||||
Cash and cash equivalents at beginning of year
|
89,889,607 | 83,434,697 | 85,443,311 | 2,932,166 | ||||||||||||
Cash and cash equivalents at end of year
|
83,434,697 | 85,443,311 | 89,495,491 | 3,071,225 |
(t)
|
Additional US GAAP disclosure
|
(1)
|
Available-for-sale securities
|
Cost
|
Fair value
|
Total unrealized
gains |
Total unrealized
losses |
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Long-term investments:
|
||||||||||||||||
As of December 31, 2009
|
539,292 | 2,012,265 | 1,473,354 | 381 | ||||||||||||
As of December 31, 2010
|
633,807 | 1,373,687 | 761,964 | 22,084 |
Proceeds
from sales |
Gross realized
gains |
Gross realized
losses |
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in thousands)
|
||||||||||||
For the year ended December 31, 2008
|
270,250 | 40,475 | 58 | |||||||||
For the year ended December 31, 2009
|
939,158 | 374,372 | - | |||||||||
For the year ended December 31, 2010
|
716,751 | 547,892 | - |
|
(2)
|
Allowance for doubtful accounts, and sales returns and discounts (including related parties)
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Allowance for doubtful accounts, and sales returns and discounts:
|
||||||||||||||||
Balance at beginning of year
|
1,572,215 | 1,244,468 | 214,327 | 7,355 | ||||||||||||
Provisions charged to earnings
|
2,606,923 | 620,393 | 2,035,875 | 69,865 | ||||||||||||
Write-offs
|
(2,934,670 | ) | (1,650,534 | ) | (1,382,000 | ) | (47,426 | ) | ||||||||
Balance at end of year
|
1,244,468 | 214,327 | 868,202 | 29,794 |
(3)
|
Pension-related benefits
|
(i)
|
Defined benefit pension plans in Taiwan
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Projected benefit obligation at beginning of year
|
1,057,377 | 1,265,483 | 43,428 | |||||||||
Service cost
|
8,077 | 7,596 | 261 | |||||||||
Interest cost
|
26,435 | 28,473 | 977 | |||||||||
Actuarial loss
|
173,594 | 392,726 | 13,477 | |||||||||
Projected benefit obligation at end of year
|
1,265,483 | 1,694,278 | 58,143 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Fair value of plan assets at beginning of year
|
1,111,106 | 1,254,680 | 43,057 | |||||||||
Actual return on plan assets
|
23,213 | 19,429 | 667 | |||||||||
Actual contributions
|
120,361 | 112,709 | 3,868 | |||||||||
Fair value of plan assets at end of year
|
1,254,680 | 1,386,818 | 47,592 |
The following table sets forth the amounts recognized related to AUO’s and Toppan CFI’s pension plans in the condensed consolidated balance sheets for US GAAP purposes:
|
||||||||||||
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Funded status-plan assets less than benefit obligations
|
(10,803 | ) | (307,460 | ) | (10,551 | ) | ||||||
Accrued liability
|
(10,803 | ) | (307,460 | ) | (10,551 | ) |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Prepaid pension cost (accrued liability) at beginning of year
|
53,730 | (10,803 | ) | (371 | ) | |||||||
Net periodic benefit cost
|
(14,409 | ) | (24,773 | ) | (850 | ) | ||||||
Actual contributions
|
120,361 | 112,709 | 3,868 | |||||||||
Pension liability adjustments under FASB Topic 715-60
|
(170,485 | ) | (384,593 | ) | (13,198 | ) | ||||||
Accrued liability at end of year
|
(10,803 | ) | (307,460 | ) | (10,551 | ) |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Service cost
|
8,116 | 8,077 | 7,596 | 261 | ||||||||||||
Interest cost
|
29,547 | 26,435 | 28,473 | 977 | ||||||||||||
Expected return on plan assets
|
(28,408 | ) | (27,881 | ) | (28,172 | ) | (967 | ) | ||||||||
Amortization of net transition cost
|
288 | 323 | 323 | 11 | ||||||||||||
Amortization of net loss
|
- | - | 83 | 3 | ||||||||||||
Recognized net actuarial loss
|
6,118 | 7,455 | 16,470 | 565 | ||||||||||||
Net periodic benefit cost
|
15,661 | 14,409 | 24,773 | 850 |
December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
Discount rate
|
2.50 | % | 2.25 | % | 2.00% – 2.25 | % | ||||||
Rate of increase in compensation levels
|
2.50% – 3.00 | % | 3.00 | % | 3.00% – 4.00 | % |
For the year ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
Discount rate
|
3.00 | % | 2.50 | % | 2.25 | % | ||||||
Rate of increase in compensation levels
|
2.00% – 3.50 | % | 2.50% – 3.00 | % | 3.00 | % | ||||||
Expected long-term rate of return on plan assets
|
2.50 | % | 2.25% – 2.50 | % | 2.00 | % |
Year
|
Retirement benefit payments
|
|||||||
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
2011
|
27,534 | 945 | ||||||
2012
|
6,566 | 225 | ||||||
2013
|
11,417 | 392 | ||||||
2014
|
55,760 | 1,914 | ||||||
2015
|
31,952 | 1,096 | ||||||
2016-2020
|
247,669 | 8,499 |
(ii)
|
Defined benefit pension plans in Japan
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Projected benefit obligation at October 1, 2009
|
157,667 | - | - | |||||||||
Projected benefit obligation at beginning of year
|
- | 163,842 | 5,623 | |||||||||
Service cost
|
5,936 | 25,552 | 877 | |||||||||
Interest cost
|
788 | 3,522 | 121 | |||||||||
Actuarial loss
|
(532 | ) | (2,772 | ) | (95 | ) | ||||||
Benefit paid
|
(17 | ) | (17,160 | ) | (589 | ) | ||||||
Effect of exchange rate
|
- | 12,259 | 420 | |||||||||
Projected benefit obligation at end of year
|
163,842 | 185,243 | 6,357 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Fair value of plan assets at October 1, 2009
|
31,870 | - | - | |||||||||
Fair value of plan assets at beginning of year
|
- | 32,635 | 1,120 | |||||||||
Actual return on plan assets
|
(403 | ) | 929 | 32 | ||||||||
Actual contributions
|
1,185 | 4,994 | 171 | |||||||||
Benefit paid
|
(17 | ) | (4,035 | ) | (138 | ) | ||||||
Effect of exchange rate
|
- | 2,443 | 84 | |||||||||
Fair value of plan assets at end of year
|
32,635 | 36,966 | 1,269 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Funded status—plan assets less than benefit obligations
|
(131,207 | ) | (148,278 | ) | (5,088 | ) | ||||||
Accrued liability
|
(131,207 | ) | (148,278 | ) | (5,088 | ) |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Accrued liability at October 1, 2009
|
(125,796 | ) | - | - | ||||||||
Accrued liability at beginning of year
|
- | (131,207 | ) | (4,503 | ) | |||||||
Net periodic benefit cost
|
(6,665 | ) | (28,811 | ) | (989 | ) | ||||||
Benefit paid
|
13,126 | 451 | ||||||||||
Actual contributions
|
1,185 | 4,994 | 172 | |||||||||
Pension liability adjustments under FASB Topic 715-60
|
69 | 3,438 | 118 | |||||||||
Effect of exchange rate
|
- | (9,818 | ) | (337 | ) | |||||||
Accrued liability at end of year
|
(131,207 | ) | (148,278 | ) | (5,088 | ) |
For the year ended December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Service cost
|
5,936 | 25,552 | 877 | |||||||||
Interest cost
|
788 | 3,522 | 121 | |||||||||
Expected return on plan assets
|
(59 | ) | (263 | ) | (9 | ) | ||||||
Net periodic benefit cost
|
6,665 | 28,811 | 989 |
December 31, | ||||||||
2009 | 2010 | |||||||
Discount rate
|
2.0 | % | 2.0 | % | ||||
Rate of increase in compensation levels
|
1.2% – 5.55 | % | 1.2% – 5.55 | % |
For the year ended December 31,
|
||||||||
2009 | 2010 | |||||||
Discount rate
|
2.0 | % | 2.0 | % | ||||
Rate of increase in compensation levels
|
1.2% – 5.55 | % | 1.2% – 5.55 | % | ||||
Expected long-term rate of return on plan assets
|
0.75 | % | 0.75 | % |
Year
|
Retirement benefit payments
|
|||||||
NT$
|
US$
|
|||||||
(in thousands)
|
||||||||
2011
|
2,004 | 69 | ||||||
2012
|
5,720 | 196 | ||||||
2013
|
8,933 | 307 | ||||||
2014
|
2,993 | 103 | ||||||
2015
|
17,678 | 607 | ||||||
2016 - 2020
|
50,567 | 1,735 |
|
(4)
|
Income taxes
|
(i)
|
The sources of income (loss) before taxes are summarized as follows:
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Domestic operations
|
13,629,712 | (34,957,294 | ) | 5,104,098 | 175,158 | |||||||||||
Foreign operations
|
2,456,442 | 5,294,949 | 364,282 | 12,501 | ||||||||||||
16,086,154 | (29,662,345 | ) | 5,468,380 | 187,659 |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Current income tax expense (benefit):
|
||||||||||||||||
Domestic
|
2,060,713 | (13,453 | ) | 1,092,315 | 37,485 | |||||||||||
Foreign
|
144,502 | 698,484 | 809,077 | 27,765 | ||||||||||||
Deferred income tax expense (benefit):
|
||||||||||||||||
Domestic
|
538,317 | (1,816,893 | ) | (749,520 | ) | (25,721 | ) | |||||||||
Foreign
|
(163,956 | ) | (227,671 | ) | (406,857 | ) | (13,962 | ) | ||||||||
Income tax expense (benefit)
|
2,579,576 | (1,359,533 | ) | 745,015 | 25,567 |
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Expected income tax expense (benefit)
|
4,021,538 | (7,415,586 | ) | 929,624 | 31,902 | |||||||||||
Decrease (increase) in investment tax credits, including amounts that expired unused (a)
|
(8,506,844 | ) | 2,664,946 | 3,581,523 | 122,908 | |||||||||||
Increase (decrease) in valuation allowance (a)
|
4,937,090 | 2,259,473 | (5,010,968 | ) | (171,962 | ) | ||||||||||
Tax exemption
|
(2,975,267 | ) | - | (303,655 | ) | (10,421 | ) | |||||||||
Employee bonuses
|
1,630,135 | - | - | - | ||||||||||||
Tax on undistributed retained earnings
|
2,126,739 | 667 | 876,762 | 30,088 | ||||||||||||
Effect of changes in statutory income tax rate
|
- | 2,321,716 | 1,552,898 | 53,291 | ||||||||||||
Effect of different subsidiary income tax rate
|
304,656 | 341,515 | 555,907 | 19,077 | ||||||||||||
Tax holiday (b)
|
(404,133 | ) | (832,894 | ) | (477,400 | ) | (16,383 | ) | ||||||||
Impairment loss on domestic marketable securities and domestic equity-method investee
|
723,837 | - | - | - | ||||||||||||
Permanent differences
|
478,850 | (284,628 | ) | (481,927 | ) | (16,538 | ) | |||||||||
Others
|
242,975 | (414,742 | ) | (477,749 | ) | (16,395 | ) | |||||||||
Income tax expense (benefit)
|
2,579,576 | (1,359,533 | ) | 745,015 | 25,567 |
(a)
|
For the years ended December 31, 2008, 2009 and 2010, investment tax credits that expired unused amount to NT$69,492 thousand, NT$6,680,020 thousand and NT$6,220,123 (US$213,457) thousand, respectively. Valuation allowances had previously been recognized for these deferred tax assets. Consequently, the subsequent write-off of these investment tax credits and the related reversals of the deferred tax asset valuation allowances had no impact on income tax expense in the period these investments tax credits expired unused.
|
(b)
|
Under preferential tax policies previously available to foreign-invested enterprises and foreign enterprises in China, some subsidiaries located in China were entitled to tax holidays. The Company will no longer be eligible for the abovementioned income tax holidays starting from 2013. The per share effect of the tax holidays for the years ended December 31, 2008, 2009 and 2010 were NT$0.05, NT$0.09 and NT$0.05 (US$0.002), respectively. |
(ii)
|
The components of deferred income tax assets and liabilities were as follows:
|
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Deferred tax assets:
|
||||||||||||
Inventories
|
1,061,836 | 1,042,378 | 35,771 | |||||||||
Unrealized loss and expenses
|
3,809,103 | 3,159,902 | 108,439 | |||||||||
Other current liabilities
|
601,826 | 492,195 | 16,891 | |||||||||
Investment tax credits
|
17,757,976 | 14,331,405 | 491,812 | |||||||||
Net operating loss carryforwards
|
6,685,747 | 6,709,035 | 230,235 | |||||||||
Convertible bonds
|
28,178 | 217,709 | 7,471 | |||||||||
Property, plant and equipment
|
2,628,148 | 4,846,254 | 166,309 | |||||||||
Others
|
1,137,926 | 1,594,440 | 54,717 | |||||||||
Gross deferred tax assets
|
33,710,740 | 32,393,318 | 1,111,645 | |||||||||
Valuation allowance
|
(19,855,487 | ) | (17,588,929 | ) | (603,601 | ) | ||||||
Net deferred tax assets
|
13,855,253 | 14,804,389 | 508,044 | |||||||||
Deferred tax liabilities:
|
||||||||||||
Long-term investment—equity method
|
(1,672,344 | ) | (1,560,617 | ) | (53,556 | ) | ||||||
Goodwill
|
(839,121 | ) | (865,881 | ) | (29,715 | ) | ||||||
Property, plant and equipment
|
(1,453,849 | ) | (1,087,019 | ) | (37,303 | ) | ||||||
Cumulative translation adjustments
|
(381,087 | ) | (264,676 | ) | (9,083 | ) | ||||||
Others
|
(283,602 | ) | (505,190 | ) | (17,337 | ) | ||||||
Total deferred tax liabilities
|
(4,630,003 | ) | (4,283,383 | ) | (146,994 | ) | ||||||
Net deferred tax assets
|
9,225,250 | 10,521,006 | 361,050 |
December 31,
|
||||||||||||
2009
|
2010
|
|||||||||||
NT$
|
NT$
|
US$
|
||||||||||
(in thousands)
|
||||||||||||
Deferred tax assets—current
|
5,365,909 | 5,909,322 | 202,790 | |||||||||
Deferred tax assets—noncurrent
|
8,294,282 | 8,705,191 | 298,737 | |||||||||
Deferred tax liabilities—current
|
(22,182 | ) | (219,309 | ) | (7,526 | ) | ||||||
Deferred tax liabilities—noncurrent
|
(4,412,759 | ) | (3,874,198 | ) | (132,951 | ) | ||||||
9,225,250 | 10,521,006 | 361,050 |
(iii)
|
Summary of total income taxes (benefit):
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Income tax expense (benefit) from continuing operations
|
2,579,576 | (1,359,533 | ) | 745,015 | 25,567 | |||||||||||
Other comprehensive income
|
183,268 | (179,004 | ) | (91,798 | ) | (3,150 | ) | |||||||||
Tax benefit allocated to reduce goodwill
|
(1,524,387 | ) | - | - | - | |||||||||||
Total income tax expense (benefit)
|
1,238,457 | (1,538,537 | ) | 653,217 | 22,417 |
(iv)
|
Accounting for uncertainty in income taxes:
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Balance at beginning of year
|
709,134 | - | 3,368 | 116 | ||||||||||||
Increase related to prior-year tax positions
|
- | 3,368 | 11,270 | 387 | ||||||||||||
Decrease related to prior-year tax positions
|
(309,327 | ) | - | - | - | |||||||||||
Settlements
|
(399,807 | ) | - | (3,368 | ) | (116 | ) | |||||||||
Balance at end of year
|
- | 3,368 | 11,270 | 387 |
(5)
|
Property, plant and equipment
|
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 |
December 31, 2010
|
||||||||||||
Cost
|
Accumulated depreciation
|
Carrying amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in thousands)
|
||||||||||||
Land
|
8,071,084 | - | 8,071,084 | |||||||||
Buildings
|
112,993,562 | (27,428,557 | ) | 85,565,005 | ||||||||
Machinery and equipment
|
659,723,809 | (442,656,492 | ) | 217,067,317 | ||||||||
Other equipment and general assets
|
54,108,133 | (45,352,643 | ) | 8,755,490 | ||||||||
Construction in progress
|
2,718,857 | - | 2,718,857 | |||||||||
Prepayments for purchases of land and equipment
|
54,275,486 | - | 54,275,486 | |||||||||
891,890,931 | (515,437,692 | ) | 376,453,239 |
|
(6)
|
The changes in the components of accumulated other comprehensive income (loss) attributable to AU Optronics Corp. 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, 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 | |||||||||||||
Net current-period change
|
186,593 | (725,095 | ) | (634,165 | ) | (298,456 | ) | (1,471,123 | ) | |||||||||||
Balance at December 31, 2010
|
(128,623 | ) | 844,372 | 1,077,895 | (561,379 | ) | 1,232,265 |
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 gains 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 losses 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 |
For the year ended December 31, 2010
|
||||||||||||
Before tax amount
|
Tax (expense) benefit
|
Net-of-tax amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
Derivative and hedging activities
|
218,750 | (32,157 | ) | 186,593 | ||||||||
Unrealized gains on securities
|
(177,203 | ) | - | (177,203 | ) | |||||||
Less: reclassification adjustment for gains realized in income
|
(547,892 | ) | - | (547,892 | ) | |||||||
Cumulative translation adjustments
|
(655,625 | ) | 21,460 | (634,165 | ) | |||||||
Defined benefit plan
|
(400,951 | ) | 102,495 | (298,456 | ) | |||||||
Net current-period changes
|
(1,562,921 | ) | 91,798 | (1,471,123 | ) |
|
(7)
|
Operating segment information
|
(i)
|
Net sales and segment operating income (loss) for the years ended December 31, 2008, 2009 and 2010 were as follows:
|
For the year December 31, 2008
|
||||||||||||||||
Display
|
Solar
|
Adjustments and eliminations
|
Consolidated
Total
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net sales
|
423,928,193 | - | - | 423,928,193 | ||||||||||||
Segment operating income
|
33,092,258 | - | - | 33,092,258 | ||||||||||||
Other non-operating loss, net
|
(6,821,347 | ) | ||||||||||||||
Consolidated income before income tax
|
26,270,911 | |||||||||||||||
Depreciation and amortization
|
81,188,432 | - | - | 81,188,432 |
For the year December 31, 2009
|
||||||||||||||||
Display
|
Solar
|
Adjustments and eliminations
|
Consolidated
Total
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net sales from external customers
|
357,033,516 | 2,297,829 | - | 359,331,345 | ||||||||||||
Sales from transactions with other operating segments
|
- | 33,799 | (33,799 | ) | - | |||||||||||
Total segment sales
|
357,033,516 | 2,331,628 | (33,799 | ) | 359,331,345 | |||||||||||
Segment operating loss
|
(13,949,232 | ) | (1,289,819 | ) | - | (15,239,051 | ) | |||||||||
Other non-operating loss, net
|
(12,028,350 | ) | ||||||||||||||
Consolidated loss before income tax
|
(27,267,401 | ) | ||||||||||||||
Depreciation and amortization
|
88,590,459 | 1,517,152 | - | 90,107,611 |
For the year December 31, 2010
|
||||||||||||||||
Display
|
Solar
|
Adjustments and eliminations
|
Consolidated
Total
|
|||||||||||||
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Net sales from external customers
|
456,725,565 | 10,432,399 | - | 467,157,964 | ||||||||||||
Sales from transactions with other operating segments
|
- | 233,402 | (233,402 | ) | - | |||||||||||
Total segment sales
|
456,725,565 | 10,665,801 | (233,402 | ) | 467,157,964 | |||||||||||
Segment operating income (loss)
|
13,102,670 | (2,606,006 | ) | - | 10,496,664 | |||||||||||
Other non-operating loss, net
|
(1,900,683 | ) | ||||||||||||||
Consolidated income before income tax
|
8,595,981 | |||||||||||||||
Depreciation and amortization
|
86,656,429 | 2,479,273 | - | 89,135,702 |
|
(ii)
|
The sales for principal products comprised the follows:
|
For the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in millions)
|
||||||||||||||||
Panels for computer products:
|
||||||||||||||||
Panels for notebook computers
|
81,101 | 60,432 | 70,390 | 2,415 | ||||||||||||
Panels for desktop monitors
|
93,097 | 68,431 | 77,942 | 2,675 | ||||||||||||
Total panels for computer products
|
174,198 | 128,863 | 148,332 | 5,090 | ||||||||||||
Panels for LCD televisions
|
188,846 | 166,407 | 228,644 | 7,847 | ||||||||||||
Panels for consumer electronics products
|
55,579 | 46,940 | 56,402 | 1,936 | ||||||||||||
Others(1)
|
5,305 | 17,121 | 33,780 | 1,159 | ||||||||||||
Total
|
423,928 | 359,331 | 467,158 | 16,032 |
(1)
|
Includes sales generated from panels for solar modules, from sales of raw materials, components, single crystal silicon wafers and ingots, and from service charges.
|
(8)
|
Basic and diluted (L) EPS
|
For the year ended December 31,
|
||||||||||||
2008
|
2009
|
2010
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in thousands, except for per share data)
|
||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp.
|
13,089,654 | (28,670,321 | ) | 4,244,323 | ||||||||
Weighted-average number of shares outstanding during the year—retroactively adjusted:
|
||||||||||||
Shares of common stock at beginning of year
|
7,865,201 | 8,505,720 | 8,827,046 | |||||||||
Employee stock options
|
419 | - | - | |||||||||
Issuance of common stock for conversion of bonds
|
2,398 | - | - | |||||||||
Issuance of shareholders’ stock dividends and employee stock bonus
|
487,971 | 279,458 | - | |||||||||
Retroactive adjustment for capitalization of retained earnings
|
250,680 | - | - | |||||||||
8,606,669 | 8,785,178 | 8,827,046 | ||||||||||
Basic (L) EPS:
|
||||||||||||
Net income (loss)
|
1.52 | (3.26 | ) | 0.48 |
For the year ended December 31,
|
||||||||||||
2008
|
2009
|
2010 | ||||||||||
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)
|
13,089,654 | (28,670,321 | ) | 4,244,323 | ||||||||
Effect of dilutive potential common stock related to convertible bonds
|
39,792 | - | - | |||||||||
13,129,446 | (28,670,321 | ) | 4,244,323 |
For the year ended December 31,
|
||||||||||||
2008
|
2009
|
2010 | ||||||||||
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
|
7,865,201 | 8,505,720 | 8,827,046 | |||||||||
Employee stock options
|
419 | - | - | |||||||||
Issuance of common stock for conversion of bonds
|
2,398 | - | - | |||||||||
Issuance of shareholders’ stock dividends and employee stock bonus
|
487,971 | 279,458 | - | |||||||||
Effect of dilutive potential common stock related to stock options
|
104 | - | - | |||||||||
Effect of dilutive potential common stock related to convertible bonds
|
204,708 | - | - | |||||||||
Retroactive adjustment of capitalization of retained earnings
|
256,824 | - | - | |||||||||
8,817,625 | 8,785,178 | 8,827,046 | ||||||||||
Diluted (L)EPS:
|
||||||||||||
Net income (loss)
|
1.49 | (3.26 | ) | 0.48 |
|
(9)
|
Goodwill and other intangible assets
|
(i)
|
Goodwill
|
(ii)
|
Other intangible assets
|
December 31, 2009
|
||||||||||||
Cost
|
Accumulated amortization
|
Carrying amount
|
||||||||||
NT$
|
NT$
|
NT$
|
||||||||||
(in thousands)
|
||||||||||||
Amortizable intangible assets:
|
||||||||||||
Patents and licensing fees
|
23,110,842 | 20,301,641 | 2,809,201 | |||||||||
Core technologies
|
3,675,700 | 3,675,700 | - | |||||||||
26,786,542 | 23,977,341 | 2,809,201 |
December 31, 2010
|
||||||||||||||||
Cost
|
Accumulated amortization
|
Carrying amount
|
||||||||||||||
NT$
|
NT$
|
NT$
|
US$
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Amortizable intangible assets:
|
||||||||||||||||
Patents and licensing fees
|
23,563,620 | 20,956,166 | 2,607,454 | 89,480 | ||||||||||||
Core technologies
|
3,675,700 | 3,675,700 | - | - | ||||||||||||
27,239,320 | 24,631,866 | 2,607,454 | 89,480 |
Year
|
NT$
|
US$
|
||||||
(in thousands)
|
||||||||
2011
|
412,346 | 14,151 | ||||||
2012
|
397,183 | 13,630 | ||||||
2013
|
362,672 | 12,446 | ||||||
2014
|
263,266 | 9,034 | ||||||
2015
|
240,996 | 8,270 | ||||||
Thereafter
|
930,991 | 31,949 | ||||||
Total
|
2,607,454 | 89,480 |
(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, 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 | - | - | ||||||||||||
Financial assets carried at cost-noncurrent
|
484,009 | - | - | 484,009 | ||||||||||||
Liabilities:
|
||||||||||||||||
Foreign currency forward contracts
|
933,289 | - | 933,289 | - | ||||||||||||
Interest rate swap contracts
|
515,847 | - | 515,847 | - | ||||||||||||
Options contracts
|
154,513 | - | 154,513 | - |
Fair value measurements at reporting date using
|
||||||||||||||||
December 31, 2010
|
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
|
425,443 | - | 425,443 | - | ||||||||||||
Options contracts
|
1,822 | - | 1,822 | - | ||||||||||||
Available-for-sale financial assets-noncurrent
|
1,373,687 | 1,373,687 | - | - | ||||||||||||
Financial assets carried at cost-noncurrent
|
896,294 | - | - | 896,294 | ||||||||||||
Liabilities:
|
||||||||||||||||
Foreign currency forward contracts
|
102,455 | - | 102,455 | - | ||||||||||||
Interest rate swap contracts
|
361,889 | - | 361,889 | - | ||||||||||||
Options contracts
|
180,020 | - | 180,020 | - | ||||||||||||
Embedded derivative instrument liabilities
|
142,868 | - | 142,868 | - |
Assets
|
||||
NT$
(in thousands)
|
||||
Financial asset carried at cost-noncurrent:
|
||||
Balance at December 31, 2008
|
583,197 | |||
Total realized and unrealized losses
|
(95,573 | ) | ||
Purchases
|
40,000 | |||
Sales
|
(4,293 | ) | ||
Transfer out
|
(39,322 | ) | ||
Balance at December 31, 2009
|
484,009 | |||
Purchases
|
658,959 | |||
Sales
|
(445 | ) | ||
Transfer out
|
(246,229 | ) | ||
Balance at December 31, 2010
|
896,294 |
|
(11)
|
Summarized US GAAP financial information about equity-method investees:
|
As of and for the year ended December 31, 2008
|
||||
NT$
(in millions)
|
||||
Current assets
|
92,391 | |||
Noncurrent assets
|
80,219 | |||
Current liabilities
|
85,029 | |||
Long-term liabilities
|
30,836 | |||
Noncontrolling interests
|
7,737 | |||
Stockholders’ equity
|
49,008 | |||
Net sales
|
210,901 | |||
Gross profit
|
16,667 | |||
Net loss
|
(7,524 | ) |