¨ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
AU OPTRONICS CORP. | TAIWAN, REPUBLIC OF CHINA |
(Translation of Registrant’s name into English) | (Jurisdiction of incorporation or organization) |
Title of each class | Name of each exchange on which registered | |
Common Shares of par value NT$10.00 each | The New York Stock Exchange, Inc.* |
* | Not for trading, but only in connection with the listing on the New York Stock Exchange, Inc. of American Depositary Shares representing such Common Shares |
Large accelerated filer x | Accelerated filer ¨ |
· | the cyclical nature of our industry; |
· | further declines in average selling prices; |
· | our ability to comply with the applicable covenants under the terms of our debt instruments; |
· | litigation and regulatory investigations against us; |
· | our dependence on introducing new products on a timely basis; |
· | our dependence on growth in the demand for our products; |
· | our continued ability to achieve high capacity utilization rates; |
· | our ability to effectively manage inventories; |
· | our dependence on a small number of customers for a substantial portion of our net sales; |
· | our ability to allocate capacity efficiently and in a timely manner; |
· | implementation of our expansion plans and our ability to obtain capital resources for our planned growth; |
· | our ability to compete effectively; |
· | our dependence on the outsourcing of manufacturing by brand companies to original equipment manufacturing service providers; |
· | our ability to expand into new businesses, industries or internationally and to undertake mergers, acquisitions, investments or divestments; |
· | changes in the accounting standard as required by the ROC government; |
· | our dependence on key personnel; |
· | our relationship with our affiliates; |
· | our ability to acquire sufficient raw materials and key components and obtain equipment and services from our suppliers in suitable quantity and quality; |
· | changes in technology and competing products; |
· | possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; |
· | general political, economic, financial and regulatory conditions; |
· | fluctuations in foreign currency exchange rates; and |
· | other factors in the “Risk Factors” section in this annual report. Please see “Item 3. Key Information—3.D. Risk Factors.” |
“Acer Display” | Acer Display Technology, Inc. | |
“AC” or “Alternative Current” | A high-efficiency AC module with integrated microinverter | |
“ADSs” | American Depositary Shares | |
“ | ||
AFPD Pte., Ltd. | ||
“AHVA” | Advanced hyper-viewing angle technology | |
“AMOLED” | Active-matrix organic light emitting diode | |
“AMVA” | AUO Advanced Multi-domain Vertical Alignment | |
“Anvik” | Anvik Corporation | |
“Apeldyn” | Apeldyn Corporation | |
“AT&T” | AT&T Corporation and its affiliates | |
“AUSP” | AUO SunPower Sdn. Bhd. | |
“BenQ” | BenQ Corporation | |
“BMC” | BenQ Materials Corp. | |
“BTA” | The basic tax amount | |
“China” | The People’s Republic of China, excluding Taiwan and the special administrative regions of Hong Kong and Macau | |
“Code” | The Internal Revenue Code of 1986, as amended | |
“Convertible Securities” | Bonds with warrants, preferred shares with warrants, convertible bonds, convertible preferred shares or certificates of warrants | |
“CTSP” | The Central Taiwan Science Park Development Office | |
“Delaware Court” | The United States District Court for the District of Delaware | |
“DG COMP” | The Commission of the European Communities Directorate-General for Competition | |
“DTC” | The Depository Trust Company | |
“Eidos” | Eidos Display, LLC and Eidos III, LLC | |
“EPA” | The Environmental Protection Administration of the Executive Yuan of the Taiwan | |
“eTP” | The embedded touch panel technology | |
“fabs” | Fabrication plants | |
“FDTC” | Fujitsu Display Technologies Corporation (which was merged into Fujitsu Limited) | |
“Federal Reserve Board” | The Federal Reserve System of the United States | |
“FMM” | The fine metal mask technology |
“Forhouse” | Forhouse Corporation | |
“FSC” | The ROC Financial Supervisory Commission | |
“GOA” | Our Gate On Array technology | |
“Hyper-LCD” | The LCD technology of AUO, which adopted the core technologies of staggered structure, GOA and image management which provides higher resolutions, slim module, high brightness, and low power consumption | |
“ | ||
The Statute of Income Basic Tax Amount | ||
Inorganic electroluminescent | ||
“IFRS” | The International Financial Reporting Standards as issued by the International Accounting Standards Board | |
“ | ||
The United States International Trade Commission | ||
“Investment Regulations” | The ROC Regulations Governing Securities Investment by Overseas Chinese and Foreign Nationals | |
“KFTC” | The Korea Fair Trade Commission | |
“large-size panels” | Panels ten inches and above in diagonal length | |
“LED” | Light emitting diodes | |
“Lextar” | Lextar Electronics Corp. | |
“LTPS” | Low temperature poly-silicon method | |
“LG Display” or “LGD” | LG Display Co., Ltd. | |
“M. Setek” | M. Setek Co., Ltd. | |
“ | ||
Millimeters | ||
“MOEAIC” | Investment Commission of Ministry of Economic Affairs | |
“mobile PC” | Primarily includes notebooks, tablets, etc. | |
“Motorola” | Motorola Inc. | |
“Nokia” | Nokia Corporation | |
“NYSE” | The New York Stock Exchange | |
“non-ROC resident” | You are not a resident of the ROC | |
“Northern California Court” | The United States District Court for the Northern District of California | |
“NSC” | National Science Counsel of the ROC Executive Yuan | |
“ODM” | Original Design Manufacturing | |
“OEM” | Original Equipment Manufacturing | |
“OGS” | One glass solution | |
“OLED” | An organic light emitting diode | |
“our” | AU Optronics Corp. and its consolidated subsidiaries, unless the context suggests otherwise | |
“our company” | AU Optronics Corp. and its consolidated subsidiaries, unless the context suggests otherwise | |
“ | Oxide Thin Film Transistor Technology | |
“PFIC” | A passive foreign investment company | |
“PRC” | The People’s Republic of China, excluding Taiwan and the special administrative regions of Hong Kong and Macau | |
“QDI” | Quanta Display Inc. | |
“QDIIs” | Qualified domestic institutional investors | |
“ | ||
Qisda Corporation | ||
“Raydium” | Raydium Semiconductor Corporation | |
“ROC” | The island of Taiwan and the areas under the effective control of the Republic of China | |
“ROC GAAP” | The generally accepted accounting principles in the ROC | |
“ROC government” | The government of the Republic of China | |
“Samsung” | Samsung Electronics Co., Ltd. | |
“Samsung Group” | Samsung Electronics Co., Ltd. and its subsidiaries | |
“SEC” | The United States Securities and Exchange Commission | |
“SED” | Surface-conduction electron-emitter | |
“Sharp” | Sharp Corporation | |
“Small to medium size panels” | Panels which are under ten inches in diagonal length | |
“subsidiary” | Companies owned directly or indirectly by AU Optronics Corp., unless the context suggests otherwise |
“ | ||
SunPower Technology, Ltd., a subsidiary of SunPower Corporation | ||
“Taiwan” | The island of Taiwan and the areas under the effective control of the Republic of China | |
“Taiwan IFRS” | The International Financial Reporting Standards as issued by the International Accounting Standards Board and endorsed by the FSC, which are required to be adopted by applicable companies in the ROC pursuant to the Framework for Adoption of International Financial Reporting Standards by Companies in the ROC promulgated by the FSC on May 14, 2009 | |
“TCL Huizhou” | TCL King Electrical Appliance (Huizhou) Co., Ltd. | |
“Thomson” or “Thomson Licensing” | Thomson Licensing SAS and Thomson Licensing LLC | |
“Toppan CFI” | Toppan CFI (Taiwan) Co., Ltd. | |
“ | ||
AU Optronics Corp. and its consolidated subsidiaries, unless the context suggests otherwise | ||
“U.S. DOJ” | The United States Department of Justice | |
“ | Unipac Optoelectronics Corp. | |
“ | The wide color gamut technology | |
“we” | AU Optronics Corp. and its consolidated subsidiaries, unless the context suggests otherwise |
Year Ended and As of December 31, | ||||||||||||
2012 | 2013 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in millions, except percentages and earnings per share and per ADS data) | ||||||||||||
Consolidated Statements of Comprehensive Income (Loss) Data: | ||||||||||||
Net revenue | 378,470.9 | 416,363.0 | 13,957.9 | |||||||||
Gross profit (loss) | (13,122.9 | ) | 33,984.1 | 1,139.3 | ||||||||
Selling and distribution expenses | (6,377.2 | ) | (7,470.0 | ) | (250.4 | ) | ||||||
General and administrative expenses | (9,203.9 | ) | (9,691.1 | ) | (324.9 | ) | ||||||
Research and development expenses | (9,904.3 | ) | (8,530.5 | ) | (286.0 | ) | ||||||
Profit (loss) before income tax | (51,494.1 | ) | 5,236.0 | 175.6 | ||||||||
Income tax expense | 1,124.0 | 1,359.1 | 45.6 | |||||||||
Profit (loss) for the year | (52,618.1 | ) | 3,876.9 | 130.0 | ||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | 6,875.4 | 230.5 | ||||||||
Profit (loss) for the year attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | (51,327.1 | ) | 3,804.2 | 127.6 | ||||||||
Non-controlling interests | (1,291.0 | ) | 72.7 | 2.4 | ||||||||
Total comprehensive income (loss) for the year attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | (52,751.7 | ) | 6,367.5 | 213.5 | ||||||||
Non-controlling interests | (1,450.2 | ) | 507.9 | 17.0 | ||||||||
Earnings (loss) per share—Basic | (5.81 | ) | 0.41 | 0.01 | ||||||||
Earnings (loss) per share—Diluted(1) | (5.81 | ) | 0.40 | 0.01 | ||||||||
Earnings (loss) per ADS equivalent—Basic | (58.15 | ) | 4.07 | 0.14 | ||||||||
Earnings (loss) per ADS equivalent—Diluted(1) | (58.15 | ) | 4.04 | 0.14 | ||||||||
Consolidated Statements of Financial Position Data: | ||||||||||||
Total current assets | 174,072.2 | 169,604.1 | 5,685.7 | |||||||||
Property, plant and equipment, net | 315,518.2 | 270,269.0 | 9,060.3 | |||||||||
Total assets | 515,008.5 | 464,835.9 | 15,582.8 | |||||||||
Total current liabilities | 192,221.7 | 181,338.6 | 6,079.1 | |||||||||
Total noncurrent liabilities | 186,638.0 | 130,507.1 | 4,375.0 | |||||||||
Total liabilities | 378,859.7 | 311,845.7 | 10,454.1 | |||||||||
Common stock | 88,270.5 | 96,242.5 | 3,226.4 | |||||||||
Non-controlling interests in subsidiaries | 14,062.6 | 14,036.5 | 470.5 | |||||||||
Total equity attributable to stockholders of AU Optronics Corp. | 122,086.2 | 138,953.7 | 4,658.2 | |||||||||
Other Financial Data: | ||||||||||||
Gross margin(2) | (3.5 | %) | 8.2 | % | 8.2 | % | ||||||
Net margin(3) | (13.9 | %) | 0.9 | % | 0.9 | % | ||||||
Capital expenditures | 43,332.6 | 25,457.8 | 853.4 | |||||||||
Depreciation and amortization | 75,276.4 | 63,637.7 | 2,133.3 | |||||||||
Net cash flows provided by operating activities | 35,747.9 | 49,642.4 | 1,664.2 | |||||||||
Net cash flows used in investing activities | (43,181.7 | ) | (23,223.8 | ) | (778.5 | ) | ||||||
Net cash flows used in financing activities | (5,940.4 | ) | (26,785.4 | ) | (897.9 | ) | ||||||
Segment Data: | ||||||||||||
Net revenue | ||||||||||||
Display business | 367,120.3 | 398,836.2 | 13,370.3 | |||||||||
Solar business | 11,350.6 | 17,526.8 | 587.6 | |||||||||
Segment profit (loss) (4) | ||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 402.9 | ||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (124.9 | ) |
Year Ended and As of December 31, | ||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions, except percentages and earnings per share and per ADS data) | ||||||||||||||||||||||||
Consolidated Statements of Operations: | ||||||||||||||||||||||||
ROC GAAP | ||||||||||||||||||||||||
Net sales | 423,928.2 | 359,331.3 | 467,158.0 | 379,711.9 | 378,470.9 | 13,028.3 | ||||||||||||||||||
Gross profit (loss) | 55,327.9 | 7,040.9 | 36,298.6 | (28,187.3 | ) | (8,675.1 | ) | (298.6 | ) | |||||||||||||||
Operating expenses | 22,235.6 | 22,279.9 | 25,801.9 | 29,471.2 | 29,189.6 | 1,004.8 | ||||||||||||||||||
Operating income (loss) | 33,092.3 | (15,239.1 | ) | 10,496.7 | (57,658.5 | ) | (37,864.7 | ) | (1,303.4 | ) | ||||||||||||||
Earnings (loss) before income taxes | 26,270.9 | (27,267.4 | ) | 8,596.0 | (65,652.1 | ) | (55,270.6 | ) | (1,902.6 | ) | ||||||||||||||
Income tax (expense) benefit | (4,629.1 | ) | 22.6 | (1,187.9 | ) | 4,205.1 | (636.4 | ) | (21.9 | ) | ||||||||||||||
Net income (loss) | 21,641.8 | (27,244.8 | ) | 7,408.1 | (61,447.0 | ) | (55,907.0 | ) | (1,924.5 | ) | ||||||||||||||
Weighted average shares outstanding—Basic | 8,760.3 | 8,796.7 | 8,827.0 | 8,827.0 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Weighted average shares outstanding—Diluted(1) | 9,111.1 | 8,796.7 | 8,990.5 | 8,827.0 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Earnings (loss) per share—Basic | 2.43 | (3.04 | ) | 0.76 | (6.94 | ) | (6.19 | ) | (0.21 | ) | ||||||||||||||
Earnings (loss) per share—Diluted(1) | 2.34 | (3.04 | ) | 0.70 | (6.94 | ) | (6.19 | ) | (0.21 | ) | ||||||||||||||
Earnings (loss) per ADS equivalent—Basic | 24.28 | (30.43 | ) | 7.58 | (69.40 | ) | (61.9 | ) | (2.13 | ) | ||||||||||||||
Earnings (loss) per ADS equivalent—Diluted(1) | 23.39 | (30.43 | ) | 6.98 | (69.40 | ) | (61.9 | ) | (2.13 | ) | ||||||||||||||
Consolidated Balance Sheets: | ||||||||||||||||||||||||
ROC GAAP | ||||||||||||||||||||||||
Current assets | 146,293.1 | 196,460.8 | 204,985.6 | 202,673.9 | 175,736.0 | 6,049.4 | ||||||||||||||||||
Property, plant and equipment, net | 389,348.3 | 390,750.1 | 383,867.7 | 358,479.0 | 313,992.8 | 10,808.7 | ||||||||||||||||||
Goodwill and intangible assets | 15,548.1 | 14,293.3 | 14,062.0 | 15,428.1 | 14,932.9 | 514.0 | ||||||||||||||||||
Total assets | 566,935.6 | 622,612.8 | 629,315.8 | 612,778.1 | 539,802.5 | 18,581.8 | ||||||||||||||||||
Current liabilities | 152,484.7 | 202,725.4 | 189,378.6 | 203,224.9 | 191,594.3 | 6,595.3 | ||||||||||||||||||
Long-term liabilities | 115,170.9 | 144,829.2 | 157,287.0 | 186,158.7 | 175,549.5 | 6,043.0 | ||||||||||||||||||
Total liabilities | 267,676.9 | 347,693.8 | 346,991.2 | 391,501.2 | 376,567.0 | 12,962.7 | ||||||||||||||||||
Capital stock | 85,057.2 | 88,270.5 | 88,270.5 | 88,270.5 | 88,270.5 | 3,038.6 | ||||||||||||||||||
Total stockholders’ equity | 299,258.7 | 274,919.0 | 282,324.6 | 221,276.9 | 163,235.5 | 5,619.1 | ||||||||||||||||||
Other Financial Data: | ||||||||||||||||||||||||
ROC GAAP | ||||||||||||||||||||||||
Gross margin(2) | 13.1 | % | 2.0 | % | 7.8 | % | (7.4 | %) | (2.3 | %) | (2.3 | %) | ||||||||||||
Operating margin(3) | 7.8 | % | (4.2 | )% | 2.2 | % | (15.2 | %) | (10.0 | %) | (10.0 | %) | ||||||||||||
Net margin(4) | 5.1 | % | (7.6 | )% | 1.6 | % | (16.2 | %) | (14.8 | %) | (14.8 | %) | ||||||||||||
Capital expenditures | 98,355.2 | 61,046.9 | 84,621.0 | 56,919.6 | 43,104.2 | 1,483.8 | ||||||||||||||||||
Depreciation and amortization | 81,188.4 | 90,107.6 | 89,135.7 | 88,752.4 | 75,586.7 | 2,602.0 | ||||||||||||||||||
Cash dividend paid | 19,670.6 | 2,551.7 | — | 3,530.8 | — | — | ||||||||||||||||||
Cash flows from operating activities | 132,057.5 | 57,041.0 | 90,735.6 | 14,515.1 | 35,713.2 | 1,229.4 | ||||||||||||||||||
Cash flows from investing activities | (101,257.4 | ) | (66,616.7 | ) | (87,218.3 | ) | (57,829.0 | ) | (43,230.4 | ) | (1,488.1 | ) | ||||||||||||
Cash flows from financing activities | (37,435.6 | ) | 11,925.3 | 878.2 | 45,835.9 | (5,964.5 | ) | (205.3 | ) | |||||||||||||||
Segment Data: | ||||||||||||||||||||||||
ROC GAAP | ||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||
Display business | 423,928.2 | 357,033.5 | 456,725.6 | 366,482.6 | 367,120.3 | 12,637.6 | ||||||||||||||||||
Solar business | — | 2,297.8 | 10,432.4 | 13,229.3 | 11,350.6 | 390.7 | ||||||||||||||||||
Operating income (loss) | ||||||||||||||||||||||||
Display business | 33,092.3 | (13,949.3 | ) | 13,102.7 | (54,433.2 | ) | (29,587.3 | ) | (1,018.5 | ) | ||||||||||||||
Solar business | — | (1,289.8 | ) | (2,606.0 | ) | (3,225.3 | ) | (8,277.4 | ) | (284.9 | ) |
Year Ended and As of December 31, | ||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions, except percentages and earnings per share and per ADS data) | ||||||||||||||||||||||||
Consolidated Statements of Operations: | ||||||||||||||||||||||||
US GAAP | ||||||||||||||||||||||||
Net sales | 423,928.2 | 358,732.8 | 467,158.0 | 379,711.9 | 378,470.9 | 13,028.3 | ||||||||||||||||||
Gross profit (loss) | 42,959.9 | 766.4 | 31,608.4 | (34,317.7 | ) | (12,529.7 | ) | (431.3 | ) | |||||||||||||||
Operating expenses | 22,811.7 | 29,076.1 | 26,209.2 | 33,450.6 | 37,682.1 | 1,297.2 | ||||||||||||||||||
Operating income (loss) | 20,148.1 | (28,309.7 | ) | 5,399.2 | (67,768.3 | ) | (50,211.8 | ) | (1,728.5 | ) | ||||||||||||||
Earnings (loss) before income taxes and non-controlling interests | 16,086.2 | (29,662.3 | ) | 5,468.4 | (69,623.8 | ) | (52,982.0 | ) | (1,823.8 | ) | ||||||||||||||
Income tax (expense) benefit | (2,579.6 | ) | 1,359.5 | (745.0 | ) | (11,492.4 | ) | (2,328.7 | ) | (80.2 | ) | |||||||||||||
Non-controlling interests in (loss) income | 416.9 | 367.5 | 479.0 | (167.9 | ) | (838.8 | ) | (28.9 | ) | |||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. | 13,089.7 | (28,670.3 | ) | 4,244.3 | (80,948.2 | ) | (54,471.9 | ) | (1,875.1 | ) | ||||||||||||||
Weighted average shares outstanding— | ||||||||||||||||||||||||
Basic | 8,606.7 | 8,785.2 | 8,827.0 | 8,827.0 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Weighted average shares outstanding-Diluted(1) | 8,817.6 | 8,785.2 | 8,827.0 | 8,827.0 | 8,827.0 | 8,827.0 | ||||||||||||||||||
Earnings (loss) per share—Basic | 1.52 | (3.26 | ) | 0.48 | (9.17 | ) | (6.17 | ) | (0.21 | ) | ||||||||||||||
Earnings (loss) per share—Diluted(1) | 1.49 | (3.26 | ) | 0.48 | (9.17 | ) | (6.17 | ) | (0.21 | ) | ||||||||||||||
Earnings (loss) per ADS equivalent— | ||||||||||||||||||||||||
Basic | 15.21 | (32.63 | ) | 4.81 | (91.70 | ) | (61.71 | ) | (2.12 | ) | ||||||||||||||
Earnings (loss) per ADS equivalent—Diluted(1) | 14.89 | (32.63 | ) | 4.81 | (91.70 | ) | (61.71 | ) | (2.12 | ) | ||||||||||||||
Consolidated Balance Sheets: | ||||||||||||||||||||||||
US GAAP | ||||||||||||||||||||||||
Current assets | 145,522.3 | 195,902.9 | 205,289.0 | 200,534.2 | 174,252.5 | 5,998.4 | ||||||||||||||||||
Property, plant and equipment, net | 383,958.1 | 385,571.6 | 376,453.2 | 348,452.7 | 306,270.5 | 10,542.9 | ||||||||||||||||||
Goodwill and intangible assets | 26,399.4 | 25,036.5 | 24,834.8 | 26,199.3 | 25,879.6 | 890.9 | ||||||||||||||||||
Total assets | 568,985.6 | 626,141.8 | 631,122.3 | 595,060.7 | 523,693.0 | 18,027.3 | ||||||||||||||||||
Current liabilities | 152,647.2 | 203,120.9 | 190,887.9 | 205,026.8 | 192,297.7 | 6,619.5 | ||||||||||||||||||
Long-term liabilities | 115,209.3 | 145,004.4 | 156,860.7 | 187,559.2 | 186,849.9 | 6,432.0 | ||||||||||||||||||
Total liabilities | 267,856.5 | 348,125.3 | 347,748.6 | 392,586.0 | 379,147.6 | 13,051.5 | ||||||||||||||||||
Non-controlling interests in subsidiaries | 7,737.2 | 11,747.5 | 12,983.6 | 14,816.0 | 13,196.9 | 454.3 | ||||||||||||||||||
Total equity attributable to stockholders of AU Optronics Corp. | 293,391.9 | 266,269.0 | 270,390.1 | 187,658.7 | 131,348.5 | 4,521.5 | ||||||||||||||||||
Other Financial Data:. | ||||||||||||||||||||||||
US GAAP | ||||||||||||||||||||||||
Gross margin(2) | 10.1 | % | 0.2 | % | 6.8 | % | (9.0 | %) | (3.3 | %) | (3.3 | %) | ||||||||||||
Operating margin(3) | 4.8 | % | (7.9 | )% | 1.2 | % | (17.8 | %) | (13.3 | %) | (13.3 | %) | ||||||||||||
Net margin(4) | 3.1 | % | (8.0 | )% | 0.9 | % | (21.3 | %) | (14.6 | %) | (14.6 | %) | ||||||||||||
Capital expenditures | 98,330.6 | 61,331.5 | 85,427.7 | 57,488.0 | 43,085.6 | 1,483.2 | ||||||||||||||||||
Depreciation and amortization | 83,680.4 | 91,506.9 | 91,420.9 | 91,314.5 | 75,524.1 | 2,599.8 | ||||||||||||||||||
Cash flows from operating activities | 132,044.2 | 58,566.1 | 90,852.2 | 14,429.3 | 34,463.6 | 1,186.4 | ||||||||||||||||||
Cash flows from investing activities | (101,242.4 | ) | (68,550.3 | ) | (87,866.1 | ) | (58,072.7 | ) | (42,864.1 | ) | (1,475.5 | ) | ||||||||||||
Cash flows from financing activities | (37,473.2 | ) | 11,467.6 | 1,393.9 | 45,850.0 | (5,977.9 | ) | (205.8 | ) |
(1) | Diluted earnings per share in |
(2) | Gross margin is calculated by dividing gross profit (loss) by net |
(3) |
Net margin is calculated by dividing |
(4) | Segment profit (loss) represents gross profit (loss) minus selling and distribution expenses, general and administrative expenses and research and development expenses. |
Exchange Rate | ||||||||||||||||
Average | High | Low | Period-End | |||||||||||||
(or month-end rates for years) | ||||||||||||||||
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 | ||||||||||||
2011 | 29.38 | 30.67 | 28.50 | 30.27 | ||||||||||||
2012 | 29.56 | 30.28 | 28.96 | 29.05 | ||||||||||||
September | 29.48 | 29.83 | 29.27 | 29.29 | ||||||||||||
October | 29.24 | 29.31 | 29.15 | 29.20 | ||||||||||||
November | 29.11 | 29.26 | 28.96 | 29.07 | ||||||||||||
December | 29.04 | 29.10 | 29.00 | 29.05 | ||||||||||||
2013 | ||||||||||||||||
January | 29.10 | 29.54 | 28.93 | 29.54 | ||||||||||||
February | 29.63 | 29.73 | 29.52 | 29.67 | ||||||||||||
March (through March 8, 2013) | 29.66 | 29.70 | 29.63 | 29.68 | ||||||||||||
· | 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 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 display 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. |
· | rapid changes from month to month, including shipment volume and product mix change; |
· | the cyclical nature of the 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; 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; |
· | market conditions for financing activities of display panel manufacturers; |
· | interest rates and foreign exchange rates; and |
· | social, economic, financial, political and other conditions in Taiwan and elsewhere. |
· | 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, including the ability to develop in the new display technology, such as AMOLED; |
· | 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 effect 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; and/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. |
· | the evaluation standards for |
· | the requirements for non-management directors to meet regularly without management; |
· | the requirement to have nominating/corporate governance committee; |
· | the requirement to have a compensation committee set up pursuant to NYSE rules; |
· | the requirement for shareholders’ approval on all equity based compensation and material revisions thereto; |
· | the requirement to adopt NYSE corporate governance guidelines; and |
· | the requirement to adopt a code of business conducts and ethics. |
· | Mobile PCs, which typically utilize display panels ranging from |
· | Monitors, which typically utilize display panels ranging from 17 inches to 27 inches, primarily for use in products such as desktop monitors. |
· | Consumer electronics products, which typically utilize display panels ranging from |
· | LCD televisions, which typically utilize display panels ranging in size from 18.5 inches to 65 inches. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||
(Panels in thousands) | (Panels in thousands) | |||||||||||||||||||
Panels for Mobile PCs | 44,825.9 | 49,246.9 | 56,759.0 | 56,759.0 | 59,325.0 | |||||||||||||||
Panels for Monitors | 31,525.0 | 28,160.3 | 28,599.7 | 28,599.7 | 30,983.9 | |||||||||||||||
Panels for Consumer Electronics Products | 225,787.1 | 192,600.3 | 159,808.1 | 159,808.1 | 145,664.4 | |||||||||||||||
Panels for LCD Televisions | 32,293.8 | 31,954.6 | 32,575.1 | 32,575.1 | 33,521.0 | |||||||||||||||
Total | 334,431.8 | 301,962.1 | 277,741.9 | 277,741.9 | 269,494.3 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | NT$ | NT$ | US$ | ||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||
Panels for Mobile PCs | 70,390.3 | 67,530.0 | 72,373.6 | 2,491.4 | 72,373.6 | 78,376.8 | 2,627.4 | |||||||||||||||||||||
Panels for Monitors | 77,942.3 | 58,406.8 | 59,576.0 | 2,050.8 | 59,576.0 | 59,564.2 | 1,996.8 | |||||||||||||||||||||
Panels for Consumer Electronics Products | 56,401.7 | 62,832.2 | 57,746.5 | 1,987.8 | 57,746.5 | 63,271.8 | 2,121.1 | |||||||||||||||||||||
Panels for LCD Televisions(1) | 237,262.6 | 165,275.4 | 168,892.2 | 5,813.9 | 168,892.2 | 188,428.2 | 6,316.7 | |||||||||||||||||||||
Others(2) | 25,161.1 | 25,667.5 | 19,882.6 | 684.4 | 19,882.6 | 26,722.0 | 895.9 | |||||||||||||||||||||
Total | 467,158.0 | 379,711.9 | 378,470.9 | 13,028.3 | 378,470.9 | 416,363.0 | 13,957.9 |
(1) | Includes sales from panels, TV sets and other related products for LCD televisions. |
(2) | Includes sales |
Year Ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Region | Net Sales | % | Net Sales | % | ||||||||||||
(in NT$ millions, except percentages) | ||||||||||||||||
Taiwan | 150,790.4 | 39.8 | % | 143,549.4 | 34.5 | % | ||||||||||
PRC | 114,469.5 | 30.2 | % | 141,951.3 | 34.1 | % | ||||||||||
Japan | 14,864.2 | 3.9 | % | 42,562.6 | 10.2 | % | ||||||||||
Singapore | 31,397.4 | 8.3 | % | 23,280.8 | 5.6 | % | ||||||||||
United States | 15,852.5 | 4.2 | % | 13,751.4 | 3.3 | % | ||||||||||
Korea | 18,864.2 | 5.0 | % | 12,574.1 | 3.0 | % | ||||||||||
Others(1) | 32,232.7 | 8.6 | % | 38,693.4 | 9.3 | % | ||||||||||
Total | 378,470.9 | 100.0 | % | 416,363.0 | 100.0 | % |
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||||||||||
Region | Net Sales | % | Net Sales | % | Net Sales | % | ||||||||||||||||||
(in NT$ millions, except percentages) | ||||||||||||||||||||||||
Taiwan | 178,396.6 | 38.2 | % | 145,497.8 | 38.3 | % | 150,790.4 | 39.8 | % | |||||||||||||||
PRC | 147,491.9 | 31.6 | % | 107,117.7 | 28.2 | % | 114,469.5 | 30.2 | % | |||||||||||||||
Singapore | 27,369.3 | 5.8 | % | 23,670.5 | 6.3 | % | 31,397.4 | 8.3 | % | |||||||||||||||
Korea | 45,300.1 | 9.7 | % | 30,797.3 | 8.1 | % | 18,864.2 | 5.0 | % | |||||||||||||||
Asia(1) | 34,965.1 | 7.5 | % | 36,484.7 | 9.6 | % | 29,220.1 | 7.7 | % | |||||||||||||||
Europe | 16,199.1 | 3.5 | % | 13,580.0 | 3.6 | % | 9,646.6 | 2.6 | % | |||||||||||||||
United States | 11,698.9 | 2.5 | % | 13,956.2 | 3.7 | % | 15,854.3 | 4.2 | % | |||||||||||||||
Others | 5,737.0 | 1.2 | % | 8,607.7 | 2.2 | % | 8,228.4 | 2.2 | % | |||||||||||||||
Total | 467,158.0 | 100.0 | % | 379,711.9 | 100.0 | % | 378,470.9 | 100.0 | % | |||||||||||||||
(1) |
Glass Substrates | Liquid Crystals | Color Filters | Polarizer | Backlight Units | Driver-integrated Circuits | |||||
Asahi Glass | Dai Nippon Printing | BenQ | Novatek | |||||||
Corning Taiwan | Toray Industries, Inc. | LG Chem | Orise | |||||||
Nippon Electric Glass | Nitto Denko | Forhouse | Raydium Semiconductor | |||||||
Sumika Technology Co., Ltd. | Radiant Opto-Electronics | Renesas SP Drivers |
(1) |
BenQ |
Forhouse is our investee. See “Item 7. Major Shareholder and Related Party Transactions—Item 7.B. Related Party Transactions.” |
Radium Semiconductor is our investee. See “Item 7. Major Shareholder and Related Party Transactions—Item 7.B. Related Party Transactions.” |
· | price, based in large part on the ability to ramp-up lower cost, advanced technology 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. |
· | We have a license agreement with FDTC (subsequently assumed by Fujitsu Limited), effective as of March 31, 2003, which provides for the non-transferable and non-exclusive license under certain patents to manufacture certain TFT-LCD panels at our facilities. |
· | In connection with the settlement of a lawsuit with Sharp Corporation (“Sharp”), we entered into a cross-license agreement with Sharp, effective as of January 1, 2011, under which each party granted to the other non-transferable and non-exclusive licenses under certain patents to manufacture certain TFT-LCD panels and modules. |
· | In connection with the settlement of a lawsuit with LG Display Co., Ltd., (“LGD”) we entered into a cross-license agreement with LGD, effective as of August 8, 2011, under which each party granted to the other non-transferable and non-exclusive licenses under certain patents to manufacture certain TFT-LCD panels and modules. |
· | In connection with the settlement of a lawsuit with Samsung Electronics Co., Ltd. (“Samsung”), we entered into a cross-license agreement with Samsung, effective as of January 1, 2012, under which each party granted to the other non-transferable and non-exclusive licenses under certain patents to manufacture certain TFT-LCD panels and modules. |
· | We have a cross-license agreement with Hitachi Displays, Ltd and IPS Alpha Technology, Ltd., effective as of July 1, 2009 (“2009 Agreement”) and addendum thereof with Japan Display |
· | We have a license agreement with Semiconductor Energy Laboratory Co., Ltd., effective as of January 1, 2009, which provides for the non-transferable and non-exclusive license under certain patents to manufacture certain LCD and certain OLED products. |
· | We have a cross-license agreement with Toshiba Mobile Display Co., Ltd., effective as of April 26, 2010, under which each party granted to the other non-transferrable and non-exclusive licenses under certain patents to manufacture certain TFT-LCD and OLED panels and modules. |
· | We have a cross-license agreement with E Ink Holding Inc. (“E Ink”), effective as of August 1, 2012, under which AUO granted to E Ink non-transferrable and non-exclusive licenses under certain patents involving LCD-related and certain other technologies, and E Ink granted to AUO a non-transferrable and non-exclusive licenses under certain patents involving LCD-related technologies. |
· | We have a cross-license agreement with Hydis Technologies Co., Ltd. (“Hydis”), E Ink’s Korean subsidiary, effective as of August 1, 2012, under which each party granted to the other non-transferrable and non-exclusive licenses under certain patents involving LCD related technologies. |
· | We have a cross-license agreement with Seiko Epson Corporation (“Seiko Epson”), effective as of August 15, 2013, under which AUO granted to Epson non-transferrable and non-exclusive licenses under certain patents involving certain technologies, and Epson granted to AUO a non-transferrable and non-exclusive license under certain patents involving LCD related technologies. |
· | We have a trademark licensing agreement with |
Subsidiary | Main Activities | Jurisdiction of Incorporation | Percentage of Ownership Interest | ||
AU Optronics (L) Corp. | Holding and trading company | Malaysia | 100.00% | ||
AU Optronics Corporation America | Sales and sales support of TFT-LCD modules | United States | 100.00%(1) | ||
AU Optronics Corporation Japan | Sales and sales support of TFT-LCD modules | Japan | 100.00%(1) | ||
AU Optronics Europe B.V. | Sales support of TFT-LCD modules | Netherlands | 100.00%(1) | ||
AU Optronics Korea Ltd. | Sales support of TFT-LCD modules | South Korea | 100.00%(1) | ||
AU Optronics Singapore Pte. Ltd. | Holding company and sales support of TFT-LCD modules | Singapore | 100.00%(1) | ||
AU Optronics (Shanghai) Co., Ltd. | Sales support of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Xiamen) Corp. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Suzhou) Corp., Ltd. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Czech) s.r.o. | Assembly of solar PV modules | Czech Republic | 100.00%(1) | ||
AU Optronics Manufacturing (Shanghai) Corp. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Slovakia) s.r.o. | Sale and repair of TFT-LCD panels and related parts; leasing premise | Slovakia Republic | 100.00%(1) | ||
AUO Energy (Tianjin) Corp. | Design, manufacturing and sale of solar modules | PRC | 100.00%(13) | ||
AUO Green Energy America Corp. | Holding company, sale and sales support of solar modules | United States | 100.00%(13) | ||
AUO Green Energy Europe B.V. | Holding company and sales support of solar modules | Netherlands | 100.00%(13) | ||
BriView (Xiamen) Corp. | Manufacturing and sale of liquid crystal products, TV sets and related parts | PRC | 100.00%(5) | ||
Darwin Precisions (L) Corp. | Holding and trading company | Malaysia | 100.00%(2) | ||
Darwin Precisions (Hong Kong) Limited | Holding company | Hong Kong | 100.00%(3) | ||
Darwin Precisions (Suzhou) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) | ||
Darwin Precisions (Xiamen) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) | ||
Darwin Precisions (Chengdu) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) | ||
Darwin Precisions (Dongguan) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) |
Subsidiary | Main Activities | ||||
Jurisdiction of Incorporation | Percentage of Interest | ||||
Assembly and | PRC | ||||
Manufacturing and sale of liquid crystal products, TV sets and related parts | PRC | ||||
Manufacturing and sale of liquid crystal products, TV sets and related parts | |||||
PRC | |||||
Konly Venture Corp. | Venture capital investment | ROC | |||
Ronly Venture Corp. | Venture capital investment | ROC | |||
BriView Corp. | Manufacturing, design and sale of TFT-LCD modules, TV sets, backlight modules and related | ROC | 68.86%(6) | ||
Toppan CFI (Taiwan) Co., Ltd. | Manufacturing and sale of color filters | ROC | |||
BriView (L) Corp. | Holding and trading company | Malaysia | |||
AUO Crystal Corp. | Design, manufacture and sale of | ROC | 90.84%(11) | ||
AUO Crystal (Malaysia) Sdn. Bhd. | Manufacturing and sale of single crystal silicon wafers | Malaysia | |||
M. Setek Co., Ltd. | Manufacturing and sale of solar silicon poly, single crystal silicon | Japan | |||
Darshin Microelectronics Inc. | IC design and sales | ROC | 66.68%(8) | ||
AFPD Pte., Ltd. | Manufacturing LCD panels based on low temperature polysilicon technology | Singapore | |||
AU Optronics (Kunshan) Co., Ltd. | Manufacturing, assembly and sale of TFT-LCD panels | PRC | |||
AUO Green Energy Germany GmbH | Sales support | Germany | |||
Sungen Power Corporation | Solar power generation | ROC |
(1) | Indirectly, through our 100% ownership of AU Optronics (L) Corp. |
(2) | Indirectly, through our 68.86% ownership of BriView 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) | 50.97% held directly by us, 10.88% held indirectly by Konly Venture Corp. and 7.01% held indirectly by Ronly Venture Corp., respectively. |
(7) | We exercise de facto control over the operating and financial policies of Toppan CFI (Taiwan) Co., Ltd. and AU Optronics (Kunshan) Co., Ltd. As a result, we consolidated Toppan CFI (Taiwan) Co., Ltd. |
(8) | Indirectly, through our 100% ownership of Konly Venture Corp. |
(9) | Indirectly, through our 90.84% ownership of AUO Crystal Corp. AUO Crystal Corp. directly holds 99.92% ownership of M. Setek Co., Ltd. |
(10) | Indirectly, through our 100% ownership of AUO Green Energy Europe B.V. |
(11) | 75.46% held directly by us, 12.83% held indirectly through Konly Venture Corp. and 2.55% held indirectly through Ronly Venture Corp., respectively. |
(12) | 70.29% held indirectly through AU Optronics (L) Corp. and 29.71% held indirectly through BriView Corp., respectively. We hold 68.86% ownership of BriView Corp. |
(13) | Indirectly, through our 100% ownership of AU Optronics Singapore Pte. Ltd. |
· |
· | BriView Corp. In March 2014, the respective boards of directors of BriView Corp., our subsidiary and Forhouse Corporation, our investee, approved a merger with Forhouse Corporation as the surviving company and BriView Corp. as the dissolved company, in order to integrate resources and to increase competitiveness through the merger. The merger will be subject to shareholders’ approvals of both companies. |
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. 23, Li-Hsin Rd. Hsinchu Science Park, Hsinchu 30078, Taiwan, ROC | 105,127 | 600x720/50,000(1) | July 1999 | Manufacturing of TFT-LCD panels | • Building is owned • Land is leased (expires in January 2017) | |||||
No. 189, Hwaya Rd. 2, Kueishan Hwaya Science Park, Kueishan 33383, Taoyuan, ROC | 162,826 | 620x750/20,000(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) | November 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; module and component assembly; manufacturing of color filters | • Building is owned • Land is leased (expires in December 2027) |
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. 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) N/A N/A | March 2005 August 2005 June 2006 March 2009 March 2009 April 2010 November 2011 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters Solar module assembly Solar cell manufacturing | • Building is owned • Land is leased (expires in December 2022) | |||||
No. 1, Machang Rd. Central Taiwan Science Park Houli Dist Taichung City 42147, Taiwan, R.O.C. | 587,810 | 2,200x2,500/20,000(7) | June 2011 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters | • Building is owned • Land is leased (expires in December 2025) | |||||
10 Tampines Industrial Avenue 3 Singapore 528798 | 183,341 | 730x920/45,000(3) | August 2002 | Manufacturing of TFT-LCD panels | • Building is owned • Land is leased (expires in June 2059) | |||||
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 2054) | |||||
No. 3, Lane 58, San-Zhuang Rd., Songjiang Export Processing Zone, Shanghai, the PRC | 83,508 | 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 | 289,744 | N/A | April 2007 | TFT-LCD module and component assembly | • Building is owned • Land is leased (expires in 2056) | |||||
Turanka 859/98d, Slatina, 627 00 Brno, Czech Republic | 17,765 | N/A | July 2010 | Solar module assembly | • Building is leased (expires in December 2016) • Land is leased (expires in December 2016) |
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) * | |||||||||
Bratislavska 517, 91105 Trencin, Slovak Republic | 115,678 | N/A | May 2011 | TFT-LCD module assembly and production of TFT-LCD components; repair of TFT-LCD related | ||||||
• 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 | 36,586.92 (including Kochi Site 1 and Kochi Site 2) | Ingot 300 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 | 47,596.14 (including Soma Site 1 and Soma Site 2) | Polysilicon 530 ton per month | Soma Site 1: October 2007 Soma Site 2: February 2011 | Production of polysilicon | • Building is owned • Land is owned | |||||
No.2, Jian 7th Rd., Wuqi Dist., Taichung City 435, Taiwan, ROC | 9,559 | Wafer 10,000 kpcs per month | June 2011 | Production of wafer | • Building is leased • Land is leased | |||||
No.1, Zhongke Rd., Xitun Dist., Taichung City 407, Taiwan, ROC | 19,510 | Ingot 115 ton per month | October 2011 | Production of ingot | • Building is owned • Land is leased | |||||
No.335, SEC.2, Houke Rd., Houli Dist, Taichung City 421,Taiwan, ROC | 44,225 | Ingot 100 ton per month | June 2012 | Production of ingot and wafer | • Building is owned • Land is leased | |||||
Wafer 9,000 kpcs per month | ||||||||||
Bhd.Melaka World Solar Valley, 78000 Alor Gajah, Melaka, Malaysia | 8,578 | Wafer 7,000 kpcs per month | March 2011 | Production of wafer | • Building is leased • Land is leased |
* | Not applicable to polysilicon, silicon wafer, ingot, solar cell and solar module products. Installed capacity might differ from actual production capacity due to differences in factors such as product mix and platform transition. |
(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. |
2010 | 2011 | 2012 | 2012 | 2013 | ||||||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | NT$ | NT$ | US$ | ||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||
Balance at beginning of year | 118,329 | 782,007 | 451,026 | 15,525.9 | ||||||||||||||||||||||||
Balance beginning of year | 451,026 | 458,081 | 15,356.4 | |||||||||||||||||||||||||
Provision charged to revenue | 2,015,341 | 2,474,726 | 1,677,914 | 57,759.5 | 1,677,914 | 2,387,916 | 80,050.8 | |||||||||||||||||||||
Utilized | (1,351,663 | ) | (2,805,707 | ) | (1,670,859 | ) | (57,516.7 | ) | (1,670,859 | ) | (2,250,230 | ) | (75,435.1 | ) | ||||||||||||||
Balance at end of year | 782,007 | 451,026 | 458,081 | 15,768.7 | 458,081 | 595,767 | 19,972.1 |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of year | 95,998 | 86,195 | 81,925 | 2,820.1 | ||||||||||||
Provision charged to expense (reversed to income) | 20,534 | (4,270 | ) | (12,017 | ) | (413.6 | ) | |||||||||
Write-off | (30,337 | ) | — | (1,758 | ) | (60.5 | ) | |||||||||
Balance at end of year | 86,195 | 81,925 | 68,150 | 2,346.0 |
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||||||||||
NT$ | % | NT$ | % | NT$ | % | |||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Net sales | 467,158.0 | 100.0 | 379,711.9 | 100.0 | 378,470.9 | 100.0 | ||||||||||||||||||
Cost of goods sold | 430,859.4 | 92.2 | 407,899.2 | 107.4 | 387,146.0 | 102.3 | ||||||||||||||||||
Gross profit (loss) | 36,298.6 | 7.8 | (28,187.3 | ) | (7.4 | ) | (8,675.1 | ) | (2.3 | ) | ||||||||||||||
Operating expenses | 25,801.9 | 5.6 | 29,471.2 | 7.8 | 29,189.6 | 7.7 | ||||||||||||||||||
Selling | 8,641.5 | 1.9 | 9,636.6 | 2.5 | 9,802.2 | 2.6 | ||||||||||||||||||
General and administrative | 10,736.9 | 2.3 | 11,208.8 | 3.0 | 9,216.4 | 2.4 | ||||||||||||||||||
Research and development | 6,423.6 | 1.4 | 8,625.8 | 2.3 | 10,171.0 | 2.7 | ||||||||||||||||||
Operating income (loss) | 10,496.7 | 2.2 | (57,658.5 | ) | (15.2 | ) | (37,864.7 | ) | (10.0 | ) | ||||||||||||||
Net non-operating expenses and losses | (1,900.7 | ) | (0.4 | ) | (7,993.6 | ) | (2.1 | ) | (17,405.9 | ) | (4.6 | ) | ||||||||||||
Earnings (loss) before income taxes | 8,596.0 | 1.8 | (65,652.1 | ) | (17.3 | ) | (55,270.6 | ) | (14.6 | ) | ||||||||||||||
Income tax (expense) benefit | (1,187.9 | ) | (0.2 | ) | 4,205.1 | 1.1 | (636.4 | ) | (0.2 | ) | ||||||||||||||
Net income (loss) | 7,408.1 | 1.6 | (61,447.0 | ) | (16.2 | ) | (55,907.0 | ) | (14.8 | ) |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
NT$ | % | NT$ | US$ | % | ||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||
Net revenue | 378,470.9 | 100.0 | 416,363.0 | 13,957.9 | 100.0 | |||||||||||||||
Cost of sales | (391,593.8 | ) | (103.5 | ) | (382,378.9 | ) | (12,818.6 | ) | (91.8 | ) | ||||||||||
Gross profit (loss) | (13,122.9 | ) | (3.5 | ) | 33,984.1 | 1,139.3 | 8.2 | |||||||||||||
Selling and distribution expenses | (6,377.2 | ) | (1.7 | ) | (7,470.0 | ) | (250.4 | ) | (1.8 | ) | ||||||||||
General and administrative expenses | (9,203.9 | ) | (2.4 | ) | (9,691.1 | ) | (324.9 | ) | (2.4 | ) | ||||||||||
Research and development expenses | (9,904.3 | ) | (2.6 | ) | (8,530.5 | ) | (286.0 | ) | (2.0 | ) |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
NT$ | % | NT$ | US$ | % | ||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||
Other income | 3,191.5 | 0.8 | 2,448.5 | 82.1 | 0.6 | |||||||||||||||
Other gains and losses | (10,665.1 | ) | (2.8 | ) | (1,176.4 | ) | (39.4 | ) | (0.3 | ) | ||||||||||
Finance costs | (5,731.2 | ) | (1.5 | ) | (4,782.8 | ) | (160.3 | ) | (1.1 | ) | ||||||||||
Share of profit of equity-accounted investees | 319.0 | 0.1 | 454.2 | 15.2 | 0.1 | |||||||||||||||
Profit (loss) before income tax | (51,494.1 | ) | (13.6 | ) | 5,236.0 | 175.6 | 1.3 | |||||||||||||
Income tax expense | 1,124.0 | 0.3 | 1,359.1 | 45.6 | 0.3 | |||||||||||||||
Profit (loss) for the year | (52,618.1 | ) | (13.9 | ) | 3,876.9 | 130.0 | 1.0 | |||||||||||||
Other comprehensive income (loss) for the year, net of taxes | (1,583.8 | ) | (0.4 | ) | 2,998.5 | 100.5 | 0.7 | |||||||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | (14.3 | ) | 6,875.4 | 230.5 | 1.7 |
For the Year Ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net sales | ||||||||||||||||
Display business | 456,725.6 | 366,482.6 | 367,120.3 | 12,637.6 | ||||||||||||
Solar business | 10,432.4 | 13,229.3 | 11,350.6 | 390.7 | ||||||||||||
Total | 467,158.0 | 379,711.9 | 378,470.9 | 13,028.3 | ||||||||||||
Operating income (loss) | ||||||||||||||||
Display business | 13,102.7 | (54,433.2 | ) | (29,587.3 | ) | (1,018.5 | ) | |||||||||
Solar business | (2,606.0 | ) | (3,225.3 | ) | (8,277.4 | ) | (284.9 | ) | ||||||||
Total | 10,496.7 | (57,658.5 | ) | (37,864.7 | ) | (1,303.4 | ) | |||||||||
For the Year Ended December 31 | ||||||||||||
2012 | 2013 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in millions) | ||||||||||||
Net revenue | ||||||||||||
Display business | 367,120.3 | 398,836.2 | 13,370.3 | |||||||||
Solar business | 11,350.6 | 17,526.8 | 587.6 | |||||||||
Total | 378,470.9 | 416,363.0 | 13,957.9 | |||||||||
Segment profit (loss) | ||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 402.9 | ||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (124.9 | ) | ||||||
Total | (38,608.3 | ) | 8,292.5 | 278.0 | ||||||||
· | 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 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, |
· | 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 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, |
· | 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 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, |
· | In September 2010, our subsidiary, AFPD Pte., Ltd. entered into a US$360 million five-year syndicated credit facility, for which the Credit Agricole Corporate and Investment Bank, Singapore Branch (“CACIB”) acted as the agent bank, for the purpose of repaying AFPD’s loan from Toshiba and funding working capital needs or capital expenditures. The agreement for this facility is guaranteed by us. As of December 31, |
· | In October 2010, we issued US$800 million aggregate principal amount of zero coupon convertible bonds due 2015. We used the net proceeds to fund overseas equipment purchases. In |
53 |
· | 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 December 31, |
· | In April 2011, M. Setek entered into a JPY55.0 billion five-year syndicated credit facility, for which Mizuho |
· | In October 2011, our subsidiary AUO Crystal Corp. entered into a NT$8.0 billion five-year syndicated credit facility, for which First Commercial Bank acted as the agent bank, for the purpose of funding the construction and the procurement of machinery and equipment for the solar and sapphire wafer factory. The agreement for this syndicate facility contains covenants that requires AUO Crystal Corp. to maintain certain financial ratios. Following a request by us in June 2013 to reduce the amount of this credit facility, the syndicated banks cancelled NT$1.1 billion under the five-year syndicated credit facility effective June 25, 2013. As of December 31, |
· | In January 2013, we entered into a NT$17.3 billion four-and-a-half-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our building, equipment and machinery. As of |
· | In |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Equipment purchases | 57,240.8 | 45,934.4 | 36,481.7 | 1,255.8 | ||||||||||||
Land and building purchases | 21,903.0 | 8,949.5 | 2,058.2 | 70.9 |
· | Showcased the 56-inch UHD 4K OLED TV Panel, which is among the world’s first and largest OLED TV panels in terms of size, and to have achieved 4K resolution. Having successfully strengthened our 4K Ultra HD technology; |
· | Revealed our 65-inch |
· | Showcased of our 65 and 55-inch UHD 4K |
· | Showcased of |
· | Presented 5 to 6.5-inch large-sized smartphone display with HD720 and Full HD ultra-high resolution; |
· | Presented 5-inch Full HD AMOLED smartphone display with resolutions as high as 443 ppi (pixel per inch); |
· |
· | Continuous research and development of AMOLED, Oxide TFT, WCG, eTP and AHVA technologies to proactively meet the customer demands for ultra-high resolution, ultra-wide viewing angle and super-narrow border display technologies. |
Payments Due by Period | ||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||
Long-term debt obligations: | ||||||||||||||||||||
Convertible bonds payable(1) | 23,454.4 | — | 23,454.4 | — | — | |||||||||||||||
Long-term borrowings(2) | 192,908.4 | 45,490.6 | 106,170.6 | 41,247.2 | — | |||||||||||||||
Subtotal | 216,362.8 | 45,490.6 | 129,625.0 | 41,247.2 | — | |||||||||||||||
Operating lease obligations(3) | 6,147.8 | 856.0 | 1,123.4 | 900.5 | 3,267.9 | |||||||||||||||
Purchase obligations(4) | 15,933.7 | 15,933.7 | — | — | — | |||||||||||||||
Other obligations(5) | 22,627.4 | 14,212.9 | 7,717.3 | 697.2 | — | |||||||||||||||
Total | 261,071.7 | 76,493.2 | 138,465.7 | 42,844.9 | 3,267.9 | |||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||
Long-term debt obligations: | ||||||||||||||||||||
Convertible bonds payable(1) | 20,608.8 | — | 20,608.8 | — | — | |||||||||||||||
Long-term borrowings(1) | 167,114.9 | 65,261.1 | 90,953.6 | 10,791.4 | 108.8 | |||||||||||||||
Subtotal | 187,723.7 | 65,261.1 | 111,562.4 | 10,791.4 | 108.8 | |||||||||||||||
Operating lease obligations(2) | 7,776.1 | 930.8 | 1,476.6 | 1,264.9 | 4,103.8 | |||||||||||||||
Purchase obligations(3) | 13,698.8 | 13,698.8 | — | — | — | |||||||||||||||
Other obligations(4) | 9,399.5 | 4,587.1 | 4,316.9 | 495.5 | — | |||||||||||||||
Total | 218,598.1 | 84,477.8 | 117,355.9 | 12,551.8 | 4,212.6 | |||||||||||||||
(1) |
Includes |
Represents our obligations to make lease payments to use the land on which our fabs and module-assembly facilities are located. |
Represents our significant outstanding purchase commitments for the machinery and equipment at our fabs. We have placed orders primarily related to the technological upgrade and the enhancement of value of capacity. |
Includes the U.S. DOJ |
Year Ended and As of December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. in accordance with | ||||||||||||||||
ROC GAAP | 6,692.7 | (61,263.8 | ) | (54,614.7 | ) | (1,880.0 | ) | |||||||||
US GAAP | 4,244.3 | (80,948.2 | ) | (54,471.9 | ) | (1,875.1 | ) | |||||||||
Equity attributable to stockholders of AU Optronics Corp. in accordance with | ||||||||||||||||
ROC GAAP | 268,160.9 | 205,388.7 | 149,150.9 | 5,134.3 | ||||||||||||
US GAAP | 270,390.1 | 187,658.7 | 131,348.5 | 4,521.5 |
Name | Age | Position | Term Expires | Years On Our Board | Principal Business Activities Performed Outside Our Company |
Kuen-Yao (K.Y.) Lee | 61 | Chairman | 2013 | 17 | · Chairman, Qisda Corporation · Director, Darfon Corporation · Director, BenQ Materials Corporation |
Lai-Juh (L.J.) Chen | 50 | Director | 2013 | 3 | · N/A |
Shuang-Lang (Paul) Peng | 54 | Director and President | 2013 | 3 | · N/A |
Ko-Yung (Eric) Yu(1) | 57 | Director | 2013 | 17 | · Chief Executive Officer, BenQ Materials Corporation |
Cheng-Yih Lin(2) | 61 | Director | 2013 | 1 | · Chairman, Daxin Materials Corporation |
Ronald Jen-Chuan Chwang(3) | 65 | Director | 2013 | 5 | · Chairman, iD Ventures America, Inc. · Director, CoAdna Holding, Inc. · Director, LuxNet Corporation |
Chang-Hai Tsai(4) | 64 | Director | 2013 | 3 | · Chairman, China Medical University & Health Care System · Founder and Chairman, Asia University · Consultant, Department of Health, Executive Yuan, R.O.C. (Taiwan) · Director, Taiwan Fertilizer Co., Ltd. · Director, Mega Securities. · Chairman, The Foundation of Children Philanthropy · National Policy Advisor, Office of the President of the R.O.C. |
Vivien Huey-Juan Hsieh | 60 | Independent Director | 2013 | 9 | · Supervisor, Chief Telecom Inc. |
Mei-Yueh Ho | 62 | Independent Director | 2013 | 3 | · Independent Director and member of Compensation Committee, Bank of Kaohsiung, Ltd. · Member of Compensation Committee, Taiwan Pelican Express Co., Ltd. |
Ding-Yuan Yang | 65 | Independent Director | 2013 | 3 | · Chairman, UniSVR Global Information Technology Corp. · Supervisor, Applied Vacuum Coating Technologies Co., Ltd. · Member of Compensation Committee, Opnet Technologies Co., Ltd. |
Name | Age | Position | Term Expires | Years On Our Board | Principal Business Activities Performed Outside Our Company | |||||
Kuen-Yao (K.Y.) Lee | 62 | Chairman | 2016 | 18 | · Chairman, Qisda Corporation · Director, Darfon Corporation · Director, BenQ Materials Corporation | |||||
Shuang-Lang (Paul) Peng | 55 | Director and President | 2016 | 4 | · N/A | |||||
Cheng-Yih Lin | 62 | Director | 2016 | 2 | · Chairman, Daxin Materials Corporation | |||||
Ronald Jen-Chuan Chwang(1) | 66 | Director | 2016 | 6 | · Chairman, iD Ventures America, Inc. · Director, CoAdna Holding, Inc. | |||||
Vivien Huey-Juan Hsieh | 61 | Independent Director | 2016 | 10 | · Supervisor, Chief Telecom Inc. | |||||
Mei-Yueh Ho | 63 | Independent Director | 2016 | 4 | · Independent Director and member of Compensation Committee, Bank of Kaohsiung, Ltd. · Independent Director and member of Compensation Committee, Taiwan Pelican Express Co., Ltd. · Independent Director and member of Compensation Committee, KINPO Electronics Inc. | |||||
Ding-Yuan Yang | 66 | Independent Director | 2016 | 4 | · Chairman, UniSVR Global Information Technology Corp. · Member of Compensation Committee, Opnet Technologies Co., Ltd. | |||||
Tain-Jy Chen | 61 | Independent Director | 2016 | 1 | · Professor, National Taiwan University · Independent Director and member of Compensation Committee, TECO Electric & Machinery Co., Ltd. · Independent Director and member of Compensation Committee, Chunghwa Telecom Co., Ltd. | |||||
Chin-Bing (Philip) Peng | 61 | Independent Director | 2016 | 1 | · Director and President, iD SoftCapital · Director, ACER Incorporated. · Director, Wistron NeWeb Corporation · Director, AOPEN Inc. · Director, Wistron Information Technology & Services Corp. |
(1) | Representing Qisda. |
Name | Name | Age | Position | Years With Us | Age | Position | Years With Us | |||||||
Shuang-Lang (Paul) Peng | Shuang-Lang (Paul) Peng | 54 | President | 17 | 55 | President | 18 | |||||||
Andy Yang | Andy Yang | 44 | Chief Financial Officer | 11 | 45 | Chief Financial Officer | 12 | |||||||
F.C. Hsiang | F.C. Hsiang | 54 | Executive Vice President and General Manager of the Mobile Solution Business Group | 11 | 55 | Executive Vice President and General Manager of the Mobile Solution Business Group | 12 | |||||||
Kuo-Hsin (Michael) Tsai | Kuo-Hsin (Michael) Tsai | 49 | Vice President and General Manager of the Video Solution Business Group | 15 | 50 | Senior Vice President and General Manager of the Video Solution Business Group | 16 | |||||||
Chien-Pin (James) Chen | Chien-Pin (James) Chen | 42 | Vice President and General Manager of the Solar Business Group | 13 | 43 | Vice President and General Manager of the Solar Business Group | 14 |
As of December 31, | As of December 31, | |||||||||||||||||||
Function | 2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||
Production | 43,405 | 45,402 | 48,053 | 48,822 | 49,851 | |||||||||||||||
Technical(1) | 10,210 | 9,310 | 9,553 | 8,987 | 8,707 | |||||||||||||||
Sales and marketing | 817 | 1,662 | 2,185 | 971 | 992 | |||||||||||||||
Management and administration | 2,964 | 3,637 | 3,056 | 3,777 | 3,949 | |||||||||||||||
Total | 57,396 | 60,011 | 62,847 | 62,557 | 63,499 | |||||||||||||||
(1) | Includes research and development personnel. |
As of December 31, | As of December 31, | |||||||||||||||||||
Location | 2010 | 2011 | 2012 | 2012 | 2013 | |||||||||||||||
ROC | 20,943 | 21,452 | 22,936 | 22,936 | 23,835 | |||||||||||||||
PRC | 34,658 | 36,195 | 38,020 | 37,730 | 37,347 | |||||||||||||||
Others | 1,795 | 2,364 | 1,891 | 1,891 | 2,317 | |||||||||||||||
Total | 57,396 | 60,011 | 62,847 | 62,557 | 63,499 |
Name | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||||
Kuen-Yao (K.Y.) Lee, Chairman | 11,963,918 | (1) | * | |||||
Lai-Juh (L.J.) Chen, Director | 2,429,758 | (2) | * | |||||
Shuang-Lang (Paul) Peng, Director, President | 2,875,439 | (3) | * | |||||
Cheng-Yih Lin, Director** | 665,369,405 | (4) | 7.5% | |||||
Ko-Yung (Eric) Yu, Director** | 665,344,692 | (5) | 7.5% | |||||
Ronald Jen-Chuan Chwang, Director*** | 224,950 | (6) | * | |||||
Chang-Hai Tsai, Director**** | 200,000 | (7) | * | |||||
Vivien Huey-Juan Hsieh, Independent Director | — | — | ||||||
Mei-Yuen Ho, Independent Director | — | — | ||||||
Ding-Yuan Yang, Independent Director | — | — | ||||||
Andy Yang, Chief Financial Officer | 427,259 | * | ||||||
F.C. Hsiang, Executive Vice President and General Manager of the Mobile Solution Business Group | 4,641,733 | (8) | * | |||||
Kuo-Hsin (Michael) Tsai, Vice President and General Manager of the Video Solution Business Group | 1,845,516 | (9) | * | |||||
Chien-Pin (James) Chen, Vice President and General Manager of the Solar Business Group | 255,759 | * |
Name | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | |||||
Kuen-Yao (K.Y.) Lee, Chairman | 11,963,918 | (1) | * | ||||
Shuang-Lang (Paul) Peng, Director, President | 2,875,439 | (2) | * | ||||
Cheng-Yih Lin, Director | 1,770,785 | * | |||||
Ronald Jen-Chuan Chwang, Director** | 663,723,570 | (3) | 6.9% | ||||
Vivien Huey-Juan Hsieh, Independent Director | — | — | |||||
Mei-Yuen Ho, Independent Director | — | — | |||||
Ding-Yuan Yang, Independent Director | — | — | |||||
Tain-Jy Chen, Independent Director | — | — | |||||
Chin-Bing (Philip) Peng, Independent Director | 96,670 | * | |||||
Andy Yang, Chief Financial Officer | 427,259 | * | |||||
F.C. Hsiang, Executive Vice President and General Manager of the Mobile Solution Business Group | 4,641,733 | (4) | * | ||||
Kuo-Hsin (Michael) Tsai, Senior Vice President and General Manager of the Video Solution Business Group | 1,842,516 | (5) | * | ||||
Chien-Pin (James) Chen, Vice President and General Manager of the Solar Business Group | 255,759 | * |
* | The number of common shares beneficially held is less than 1% of our total outstanding common shares. |
** | Representative of Qisda. |
(1) | Including 10,512,153 shares directly held and 1,451,765 shares beneficially owned through spouse and minor children. |
(2) | Including |
Including |
Including 1,484,330 shares directly held and 3,157,403 shares beneficially owned through spouse and minor children. |
Including |
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* | 7.5% | 7.5% | |||
Quanta Computer Inc. 211, Wen Hwa 2nd Road, Kuei Shan, Taoyuan 33377, Taiwan, ROC | 443,930,307** | 5.0% | 5.0% | |||
All directors as a group(1) | 684,809,542 | 7.8% | 7.8% |
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* | 6.9% | 6.9% | |||
Quanta Computer Inc. 211, Wen Hwa 2nd Road, Kuei Shan, Taoyuan 33377, Taiwan, ROC | 443,930,307** | 4.6% | 4.6% | |||
All directors as a group(1) | 680,430,382 | 7.1% | 7.1% |
* | According to the Schedule 13G filed with the SEC on |
** | According to the Schedule 13G filed with the SEC on February |
(1) | Calculated as the sum of: (a) with respect to directors who are serving in their personal capacity, the number of shares beneficially 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 and the number of shares beneficially held by such director in personal capacity. This information is as of February 28, |
Net Sales | Accounts Receivables | |||||||||||||||||||||||
For the Year Ended December 31, | As of December 31, | |||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||
(NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | |||||||||||||||||||||
Associates | 33,927.3 | 28,397.7 | 952.0 | 5,805.5 | 2,591.0 | 86.9 | ||||||||||||||||||
Joint Ventures | 4,162.4 | 4,116.5 | 138.0 | 385.6 | 441.9 | 14.8 | ||||||||||||||||||
38,089.7 | 32,514.2 | 1,090.0 | 6,191.1 | 3,032.9 | 101.7 |
Net Purchases | Accounts Payables | |||||||||||||||||||||||
For the Year Ended December 31, | As of December 31, | |||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||
(NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | |||||||||||||||||||||
Associates | 54,358.3 | 53,673.9 | 1,799.3 | 15,725.4 | 14,861.1 | 498.2 | ||||||||||||||||||
Joint Ventures | 531.3 | 730.1 | 24.5 | 89.5 | 91.5 | 3.1 | ||||||||||||||||||
54,889.6 | 54,404.0 | 1,823.8 | 15,814.9 | 14,952.6 | 501.3 |
· | BenQ Corporation (“BenQ”) |
· | Changhong (Hongkong) Trading Ltd. (“Changhong Trading”) |
· | TCL King Electrical Appliance (Huizhou) Co., Ltd. (“TCL Huizhou”) |
· | Sichuan Changhong Opto-electrical Co., Ltd. (“Changhong Opto-electrical”) |
· | Forhouse Corporation (“Forhouse”) |
· | BenQ Materials Corp. (“BMC”) |
· | Qisda Corporation (“Qisda”) |
· | Raydium Semiconductor Corporation (“Raydium”) |
· | 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 Common Share | Average Daily Trading Volume | Closing Price per ADS | Average Daily Trading Volume | |||||||||||||||||||||
High | Low | High | Low | |||||||||||||||||||||
(NT$) | (NT$) | (in thousands of Common Shares) | (US$) | (US$) | (in thousands of ADSs) | |||||||||||||||||||
2009 | 38.90 | 23.05 | 62,016.6 | 12.12 | 6.66 | 3,999.6 | ||||||||||||||||||
2010 | 42.00 | 27.30 | 49,916.2 | 13.25 | 8.58 | 2,850.0 | ||||||||||||||||||
2011 | 30.35 | 11.90 | 50,191.7 | 10.44 | 3.77 | 2,528.8 | ||||||||||||||||||
2012 | 17.40 | 8.21 | 77,985.9 | 5.89 | 2.74 | 1,190.7 | ||||||||||||||||||
First Quarter | 17.40 | 12.85 | 81,200.6 | 5.89 | 4.25 | 1,459.0 | ||||||||||||||||||
Second Quarter | 15.20 | 11.10 | 41,134.6 | 5.03 | 3.67 | 1,013.9 | ||||||||||||||||||
Third Quarter | 12.15 | 8.21 | 80,767.0 | 4.07 | 2.74 | 999.1 | ||||||||||||||||||
Fourth Quarter | 14.15 | 10.20 | 108,096.5 | 4.81 | 3.35 | 1,297.0 | ||||||||||||||||||
2013 | 14.00 | 8.44 | 81,594.3 | 4.89 | 2.82 | 1,146.2 | ||||||||||||||||||
First Quarter | 13.95 | 11.10 | 112,756.4 | 4.78 | 3.81 | 1,262.5 | ||||||||||||||||||
Second Quarter | 14.00 | 10.10 | 96,666.5 | 4.89 | 3.29 | 1,429.2 | ||||||||||||||||||
Third Quarter | 11.85 | 10.35 | 60,700.6 | 3.89 | 3.35 | 874.0 | ||||||||||||||||||
Fourth Quarter | 11.10 | 8.44 | 61,174.4 | 3.71 | 2.82 | 1,028.3 | ||||||||||||||||||
September | 11.85 | 11.10 | 47,284.0 | 3.89 | 3.65 | 569.4 | ||||||||||||||||||
October | 11.10 | 9.60 | 62,291.8 | 3.71 | 3.16 | 1,742.1 | ||||||||||||||||||
November | 9.60 | 8.44 | 82,157.7 | 3.19 | 2.82 | 840.8 | ||||||||||||||||||
December | 9.52 | 8.96 | 40,027.4 | 3.12 | 2.97 | 452.5 | ||||||||||||||||||
2014 (through March 14, 2014) | 10.30 | 8.80 | 57,826.9 | 3.40 | 2.73 | 370.1 | ||||||||||||||||||
January | 9.58 | 9.01 | 44,824.1 | 3.15 | 2.76 | 345.7 | ||||||||||||||||||
February | 10.30 | 8.80 | 72,458.6 | 3.33 | 2.73 | 408.4 | ||||||||||||||||||
March (through March 14, 2014) | 10.20 | 9.89 | 56,358.1 | 3.40 | 3.18 | 348.4 |
Taiwan Stock Exchange | New York Stock Exchange(1) | |||||||||||||||||||||||
Closing price per Common Share | Average Daily Trading Volume | Closing Price per ADS | Average Daily Trading Volume | |||||||||||||||||||||
High | Low | High | Low | |||||||||||||||||||||
(NT$) | (NT$) | (in thousands of Common Shares) | (US$) | (US$) | (in thousands of ADSs) | |||||||||||||||||||
2008 | 62.70 | 18.30 | 70,171.9 | 20.66 | 5.02 | 3,343.9 | ||||||||||||||||||
2009 | 38.90 | 23.05 | 62,016.6 | 12.12 | 6.66 | 3,999.6 | ||||||||||||||||||
2010 | 42.00 | 27.30 | 49,916.2 | 13.25 | 8.58 | 2,850.0 | ||||||||||||||||||
2011 | 30.35 | 11.90 | 50,191.7 | 10.44 | 3.77 | 2,528.8 | ||||||||||||||||||
First Quarter | 30.35 | 24.35 | 39,554.9 | 10.44 | 8.17 | 2,681.3 | ||||||||||||||||||
Second Quarter | 26.00 | 19.35 | 43,873.7 | 8.94 | 6.72 | 2,749.2 | ||||||||||||||||||
Third Quarter | 19.55 | 12.00 | 53,705.7 | 6.91 | 3.96 | 2,615.4 | ||||||||||||||||||
Fourth Quarter | 15.00 | 11.90 | 62,117.9 | 5.04 | 3.77 | 2,070.4 | ||||||||||||||||||
2012 | 17.40 | 8.21 | 77,985.9 | 5.89 | 2.74 | 1,190.7 | ||||||||||||||||||
First Quarter | 17.40 | 12.85 | 81,200.6 | 5.89 | 4.25 | 1,459.0 | ||||||||||||||||||
Second Quarter | 15.20 | 11.10 | 41,134.6 | 5.03 | 3.67 | 1,013.9 | ||||||||||||||||||
Third Quarter | 12.15 | 8.21 | 80,767.0 | 4.07 | 2.74 | 999.1 | ||||||||||||||||||
Fourth Quarter | 14.15 | 10.20 | 108,096.5 | 4.81 | 3.35 | 1,297.0 | ||||||||||||||||||
September | 11.65 | 9.20 | 121,624.9 | 3.93 | 3.11 | 1,096.3 | ||||||||||||||||||
October | 11.90 | 10.20 | 72,620.0 | 3.98 | 3.35 | 1,141.2 | ||||||||||||||||||
November | 12.35 | 11.00 | 93,355.1 | 4.12 | 3.79 | 1,303.3 | ||||||||||||||||||
December | 14.15 | 12.50 | 160,705.9 | 4.81 | 4.30 | 1,453.8 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||
January | 13.75 | 11.50 | 119,129.5 | 4.78 | 3.91 | 1,940.7 | ||||||||||||||||||
February | 13.15 | 11.10 | 105,720.2 | 4.34 | 3.81 | 1,134.1 | ||||||||||||||||||
March (through March 8, 2013) | 13.35 | 12.70 | 101,674.2 | 4.48 | 4.19 | 849.3 |
(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 or properties of another company which would have a significant impact on our operations; |
· | execution, modification or termination of any contracts regarding leasing of all business or joint operations or mandate of our business to other persons; |
· | 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 institute an action against a director on our behalf. In case the audit committee 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 fails 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. |
· | a citizen or individual 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 state or any political subdivision thereof; |
· | an estate the income of which is subject to U.S. federal income taxation regardless of its source; or |
· | a trust, if (1) a U.S. court can exercise primary supervision over the trust’s administration and one or more United States persons (within the meaning of the Code, as defined below) are authorized to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. |
· | dealers and traders in securities who use a mark-to-market method of tax 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; |
· | persons holding ADSs or shares through a partnership or other pass-through entity; or |
· | persons holding ADSs or shares in connection with a trade or business conducted outside of the United States. |
Expected Maturity Date | Fair Value at December 31, 2013 | |||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 392,565 | — | — | — | — | — | 392,565 | 392,565 | ||||||||||||||||||||||||
Average interest rate | 0.955 | % | — | — | — | — | — | 0.955 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 2,320,000 | — | — | — | — | — | 2,320,000 | 2,320,000 | ||||||||||||||||||||||||
Average interest rate | 0.419 | % | — | — | — | — | — | 0.419 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 28,530,170 | — | — | — | — | — | 28,530,170 | 28,530,170 | ||||||||||||||||||||||||
Average interest rate | 0.419 | % | — | — | — | — | — | 0.419 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,429,437 | — | — | — | — | — | 1,429,437 | 1,429,437 | ||||||||||||||||||||||||
Average interest rate | 1.834 | % | — | — | — | — | — | 1.834 | % | — | ||||||||||||||||||||||
Fixed rate (SGD) | 450 | — | — | — | — | — | 450 | 450 | ||||||||||||||||||||||||
Average interest rate | 0.220 | % | — | — | — | — | — | 0.220 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | — | 17,867,850 | — | — | — | — | 17,867,850 | 18,477,322 | ||||||||||||||||||||||||
Fixed rate | — | 15.34 | %(1) | — | — | — | — | — | — | |||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | 571,429 | 323,808 | 3,373 | — | — | — | 898,610 | 903,821 | ||||||||||||||||||||||||
Average interest rate | 2.809 | % | 2.695 | % | 1.450 | % | — | — | — | 2.775 | % | — | ||||||||||||||||||||
Variable rate (NT$) | 62,191,595 | 44,033,168 | 44,138,347 | 10,215,229 | 414,732 | 106,296 | 161,099,367 | 161,099,367 | ||||||||||||||||||||||||
Average interest rate | 2.049 | % | 2.270 | % | 2.490 | % | 3.306 | % | 4.730 | % | 3.274 | % | 2.228 | % | — | |||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | 7,111,111 | 960,000 | 1,280,000 | 1,760,000 | — | — | 11,111,111 | (17,062 | ) | |||||||||||||||||||||||
Pay rate | 1.244 | % | 1.090 | % | 1.090 | % | 1.090 | % | — | — | 1.244 | % | — |
(1) | Unless previously redeemed, purchased and cancelled, or converted, the interest rate of ECB4 on maturity is 15.34%. |
(2) | 90 days Taipei Money Market Secondary fixing rate settled quarterly (0.9% on December 31, 2013). |
Expected Maturity Date | Fair Value at December 31, 2012 | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 609,924 | — | — | — | — | — | 609,924 | 609,924 | ||||||||||||||||||||||||
Average interest rate | 0.479 | % | — | — | — | — | — | 0.479 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 2,500,000 | — | — | — | — | — | 2,500,000 | 2,500,000 | ||||||||||||||||||||||||
Average interest rate | 0.575 | % | — | — | — | — | — | 0.575 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 33,336,478 | — | — | — | — | — | 33,336,478 | 33,336,478 | ||||||||||||||||||||||||
Average interest rate | 0.380 | % | — | — | — | — | — | 0.380 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,477,677 | — | — | — | — | — | 1,477,677 | 1,477,677 | ||||||||||||||||||||||||
Average interest rate | 1.880 | % | — | — | — | — | — | 1.880 | % | — | ||||||||||||||||||||||
Fixed rate (EUR) | 53,000 | — | — | — | — | — | 53,000 | 53,000 | ||||||||||||||||||||||||
Average interest rate | 0.050 | % | — | — | — | — | — | 0.050 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | — | — | 20,388,200 | — | — | — | 20,388,200 | 21,598,083 | ||||||||||||||||||||||||
Fixed rate | — | — | 15.34 | %(1) | — | — | — | 5.113 | % | — | ||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Average interest rate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Variable rate (NT$) | 45,490,589 | 60,902,594 | 45,268,005 | 39,127,792 | 2,119,432 | — | 192,908,412 | 192,908,412 | ||||||||||||||||||||||||
Average interest rate | 2.276 | % | 2.284 | % | 2.377 | % | 2.460 | % | 4.087 | % | — | 2.322 | % | — | ||||||||||||||||||
Interest Rate Swaps(2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | — | 14,222,222 | — | — | — | — | 14,222,222 | (58,547 | ) | |||||||||||||||||||||||
Pay rate | — | 1.331 | % | — | — | — | — | 1.331 | % | — |
Expected Maturity Date | Fair Value at December 31, 2012 | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 609,924 | — | — | — | — | — | 609,924 | 609,924 | ||||||||||||||||||||||||
Average interest rate | 0.479 | % | — | — | — | — | — | 0.479 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 2,500,000 | — | — | — | — | — | 2,500,000 | 2,500,000 | ||||||||||||||||||||||||
Average interest rate | 0.575 | % | — | — | — | — | — | 0.575 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 33,336,478 | — | — | — | — | — | 33,336,478 | 33,336,478 | ||||||||||||||||||||||||
Average interest rate | 0.380 | % | — | — | — | — | — | 0.380 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,477,677 | — | — | — | — | — | 1,477,677 | 1,477,677 | ||||||||||||||||||||||||
Average interest rate | 1.880 | % | — | — | — | — | — | 1.880 | % | — | ||||||||||||||||||||||
Fixed rate (EUR) | 53,000 | — | — | — | — | — | 53,000 | 53,000 | ||||||||||||||||||||||||
Average interest rate | 0.050 | % | — | — | — | — | — | 0.050 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | — | — | 20,388,200 | — | — | — | 20,388,200 | 18,292,497 | ||||||||||||||||||||||||
Fixed rate | — | — | 15.34 | %(1) | — | — | — | 5.113 | % | — | ||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Average interest rate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Variable rate (NT$) | 45,490,589 | 60,902,594 | 45,268,005 | 39,127,792 | 2,119,432 | — | 192,908,412 | 192,932,107 | ||||||||||||||||||||||||
Average interest rate | 2.276 | % | 2.284 | % | 2.377 | % | 2.460 | % | 4.087 | % | — | 2.322 | % | — | ||||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | — | 14,222,222 | — | — | — | — | 14,222,222 | (58,547 | ) | |||||||||||||||||||||||
Pay rate | — | 1.331 | % | — | — | — | — | 1.331 | % | — |
(1) | Unless previously redeemed, purchased and cancelled, or converted, the interest rate of ECB4 on maturity is 15.34%. |
(2) | 90 days Taipei Money Market Secondary fixing rate settled quarterly (0.9% on December 28, 2012). |
Expected Maturity Date | Fair Value at December 31, 2011 | |||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 639,250 | — | — | — | — | — | 639,250 | 639,250 | ||||||||||||||||||||||||
Average interest rate | 1.085 | % | — | — | — | — | — | 1.085 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 10,690,940 | — | — | — | — | — | 10,690,940 | 10,690,940 | ||||||||||||||||||||||||
Average interest rate | 0.575 | % | — | — | — | — | — | 0.575 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 29,002,208 | — | — | — | — | — | 29,002,208 | 29,002,208 | ||||||||||||||||||||||||
Average interest rate | 0.430 | % | — | — | — | — | — | 0.430 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,363,700 | — | — | — | — | — | 1,363,700 | 1,363,700 | ||||||||||||||||||||||||
Average interest rate | 1.589 | % | — | — | — | — | — | 1.589 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Secured (NT$) | 3,500,000 | — | — | — | — | — | 3,500,000 | 3,574,268 | ||||||||||||||||||||||||
Fixed rate | 2.900 | % | — | — | — | — | — | 2.900 | % | — | ||||||||||||||||||||||
Unsecured (NT$) | 64,383 | — | — | 21,203,000 | — | — | 21,267,383 | 21,851,511 | ||||||||||||||||||||||||
Fixed rate | 0.003 | % | — | — | 15.34 | %(1) | — | — | 3.833 | % | — | |||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | 131,107 | 18,730 | — | — | 231,607 | — | 381,444 | 381,444 | ||||||||||||||||||||||||
Average interest rate | 1.676 | % | 1.471 | % | — | — | 1.450 | % | — | 2.334 | % | — | ||||||||||||||||||||
Variable rate (NT$) | 42,737,182 | 47,476,931 | 51,107,608 | 33,622,286 | 23,631,618 | — | 198,575,625 | 198,575,625 | ||||||||||||||||||||||||
Average interest rate | 2.325 | % | 2.381 | % | 2.428 | % | 2.597 | % | 2.542 | % | — | 2.400 | % | — | ||||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | 3,444,445 | — | 21,333,333 | — | — | — | 24,777,778 | (198,398 | ) | |||||||||||||||||||||||
Pay rate | 2.484 | % | — | 1.331 | % | — | — | — | 1.492 | % | — |
December 31, 2013 | ||
(in thousands) | ||
Contracts to sell | ||
Aggregate contract amount | EUR88,000 | |
Average contractual exchange rate | JPY136.09 per | |
Contracts to sell | ||
Aggregate contract amount | EUR2,600 | |
Average contractual exchange rate | CZK27.37 per | |
Contracts to sell NT$/Buy JPY | ||
Aggregate contract amount | NT$ | |
Average contractual exchange rate | JPY3.44 per NT$ | |
Contracts to sell US$/Buy JPY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | JPY101.64 per US$ | |
Contracts to sell US$/Buy CNY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | CNY6.11 per US$ | |
Contracts to sell US$/Buy SGD | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | SGD1.25 per US$ | |
Contracts to sell US$/Buy MYR | ||
Aggregate contract amount | US$1,675 | |
Average contractual exchange rate | MYR3.25 per US$ | |
Fair value of all forward contracts(1) | NT$ |
(1) | Fair value represents the amount of the receivable from or payable to the counter-parties if the contracts were terminated on the |
December 31, | ||
(in thousands) | ||
Contracts to sell US$/Buy NT$ | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | NT$ | |
Contracts to sell NT$/Buy US$ | ||
Aggregate contract amount | NT$ | |
Average contractual exchange rate | US$0.03 per NT$ | |
Contracts to sell EUR/Buy JPY | ||
Aggregate contract amount | EUR105,000 | |
Average contractual exchange rate | JPY103.80 per EUR | |
Contracts to sell CZK/Buy EUR | ||
Aggregate contract amount | CZK40,448 | |
Average contractual exchange rate | EUR0.04 per CZK | |
Contracts to sell NT$/Buy JPY | ||
Aggregate contract amount | NT$ | |
Average contractual exchange rate | JPY2.87 per NT$ | |
Contracts to sell US$/Buy JPY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | JPY82.25 per US$ | |
Contracts to sell US$/Buy CNY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | CNY6.27 per US$ | |
Contracts to sell CNY/Buy US$ | ||
Aggregate contract amount | CNY162,677 | |
Average contractual exchange rate | US$0.16 per CNY | |
Contracts to sell JPY/Buy US$ | ||
Aggregate contract amount | JPY65,850 | |
Average contractual exchange rate | US$0.01 per JPY | |
Contracts to sell US$/Buy SGD | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | SGD1.22 per US$ | |
Fair value of all forward contracts(1) | NT$ |
(1) | Fair value represents the amount of the receivable from or payable to the counter-parties if the contracts were terminated on the |
Service | Fees | ||
(1) | Issuance of ADSs | Up to US$0.05 per ADS issued | |
(2) | Cancellation of ADSs | Up to US$0.05 per ADSs cancelled | |
(3) | Distribution of cash dividends or other cash distributions | Up to US$0.05 per ADSs held | |
(4) | Distributions of ADSs pursuant to stock dividends, free stock distributions or other exercises of rights | Up to US$0.05 per ADSs held | |
(5) | Distribution of securities other than ADSs or rights to purchase additional ADSs | Up to US$0.05 per ADSs held | |
(6) | Depository services | Up to US$0.05 per ADSs held on the applicable record date(s) established by the Depositary. |
· | fees for the transfer and registration of ADSs charged by the registrar and transfer agent for the ADSs; |
· | the expenses and charges incurred by the depositary in the conversion of foreign currency into U.S. dollars; |
· | such cable, telex and facsimile transmission and delivery expenses; |
· | taxes and duties upon the transfer ADSs; and |
· | the fees and expenses incurred by the depositary in connection with the delivery of ADSs. |
Reimbursement of Proxy Process Expenses | US$ | 69,992.4 | ||
Reimbursement of ADR holders identification expenses | US$ | |||
Reimbursement to Issuer | US$ | 2,923,549.1 | ||
Tax Payment to the IRS | US$ | 1,292,173.7 | ||
Total | US$ | 4,307,728.6 | ||
· | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; |
· | provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with |
· | 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 | 2011 | 2012 | ||||||
NT$ | NT$ | |||||||
(in thousands) | ||||||||
Audit Fees (1) | 70,362 | 69,621 |
Year Ended December 31, | ||||||||
Services | 2012 | 2013 | ||||||
NT$ | NT$ | |||||||
(in thousands) | ||||||||
Audit Fees (1) | 69,621 | 75,761 |
(1) | Audit Fees. This category includes the audit of our annual 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. |
NYSE Standards for US Listed Companies under Listed Company Manual Section 303A | Our Corporate Governance Practices | |
NYSE Section 303A.02 establishes general standards to evaluate directors’ independence (no director qualifies as independent unless the board of directors affirmatively determines that the director has no material relationship with the listed company either directly or as a partner, shareholder or officer of an organization that has a relationship with the listed company). | Our standards for determining director independence, which comply with ROC requirements for director 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 has affirmatively determined that our |
NYSE Standards for US Listed Companies under Listed Company Manual Section 303A | Our Corporate Governance Practices | |
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. ROC law does not allow separate board meetings to be held by part but not all of the directors of the board. | |
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 established a compensation committee on August 30, 2011 to meet the requirements under the ROC | |
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 (i) the distribution of employee bonuses, (ii) any issuance of restricted stocks to employees, and (iii) employee stock option plans with exercise price lower than the closing price of the company’s stocks as of the issuance date. Other than the above, under ROC law, the board of directors has authority to approve employee stock option plans with exercise price equal to or higher than the closing price of the company’s stocks as of the issuance date, and to grant options to employees pursuant to such plans, subject to the approval of the FSC , 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. We have adopted a code of business conduct and ethics, which applies to officers and employees but not directors and does not include any waiver of the code for executive officers or directors that may be made only by the board or a board committee. Our code of business conduct and ethics contains provisions covering conflicts of interest, corporate opportunities, confidentiality, fair dealing, protection and proper use of company assets, compliance with laws, rules and regulations (including insider trading laws) and encouraging the reporting of any illegal or unethical behavior, as well as compliance standards and procedures that will facilitate the operation of the code and ensure the prompt and consistent action against violations of the code. | |
(a) | Report of Independent Registered Public Accounting Firm. |
(b) | Consolidated |
(c) | Consolidated Statements of |
(d) | Consolidated Statements of |
(e) | Consolidated Statements of Cash Flows of AU Optronics Corp. and subsidiaries for the years ended December 31, |
(f) | Notes to Consolidated Financial Statements of AU Optronics Corp. and subsidiaries. |
1.1 | Articles of Incorporation (English translation). |
2.1 | Deposit Agreement, dated May 29, 2002, among AU Optronics Corp., Citibank, N.A. as depositary, and Holders and Beneficial Owners of American depositary shares evidenced by American depositary receipts issued thereunder, including the form of American depositary receipt (incorporated herein by reference to Exhibit 2(A) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
2.2 | Amendment No. 1 to the Deposit Agreement, dated February 15, 2006, among AU Optronics Corp., Citibank, N.A. as depositary, and Holders and Beneficial Owners of American depositary shares evidenced by American depositary receipts issued thereunder, including the amended form of American depositary receipt (incorporated herein by reference to Exhibit 2.2 to our annual report on Form 20-F as filed with the Commission on June 29, 2007). |
4.1 | Patent and Technology License Agreement by and between FDTC and AU Optronics Corp., for TFT-LCD technologies, dated March 31, 2003 (incorporated herein by reference to Exhibit 4(g) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.2 | Stock Purchase Agreement by and among FDTC, Fujitsu and AU Optronics Corp., for purchase certain amount of stocks of FDTC, dated March 25, 2003 (incorporated herein by reference to Exhibit 4(i) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.3 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, No. 76-6 Small Section, Hsinchu, Taiwan, Republic of China, with respect to part of the site of our previous L1 fab (incorporated herein by reference to Exhibit 4(j) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.4 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, No. 77 Small Section, Hsinchu, Taiwan, Republic of China, with respect to part of the site of L1 fab (incorporated herein by reference to Exhibit 4(k) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.5 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 255-46 Gin-Shan Section, Hsinchu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(l) to ours annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.6 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 114-4 Gin-Shan Section, Hsin-Chu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(m) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.7 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 472 etc., Gin-Shan Section, Hsinchu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(n) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.8 | Lease Agreement by and between Acer Display Technology, Inc. and Min-Tour Inc. for No. 1 Xinhe Road Aspire Park, 325 Lungtan, Taoyuan, Taiwan, Republic of China, the site of our fourth-generation fab and module-assembly plant (in Chinese, with English summary translation) (incorporated herein by reference to Exhibit 10.12 to our Registration Statement on Form F-1 (Registration No. 333-87418) as filed with Commission on May 1, 2002). |
4.9 | Lease Agreement by and between AU Optronics Corp. and UMC for No. 1, Gin-Shan Section 7 of Hsinchu Science Park, Hsinchu, Taiwan, Republic of China, the site of one of our fourth-generation fab module-assembly plant (in Chinese, with English summary translation) (incorporated herein by reference to Exhibit 10.13 to our Registration Statement on Form F-1 (Registration No. 333-87418) as filed with the Commission on May 1, 2002). |
4.10 | Lease Agreement by and between AU Optronics (Suzhou) Corp., Ltd. 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 Shuang-Lang (Paul) Peng, 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 Shuang-Lang (Paul) Peng, 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. |
15.1 | Consent of Independent Registered Certified Accounting Firm. |
AU OPTRONICS CORP. | |||
By: | /s/ Shuang-Lang (Paul) Peng | ||
Name: | Shuang-Lang (Paul) Peng | ||
Title: | President |
Page | |
Consolidated Financial Statements of AU Optronics Corp. and Subsidiaries | |
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents (note 4) | 90,836,668 | 77,425,691 | 2,665,256 | |||||||||
Notes and accounts receivable, net (note 8) | 44,747,926 | 36,357,450 | 1,251,547 | |||||||||
Receivables from related parties, net (note 22) | 6,783,605 | 6,191,079 | 213,118 | |||||||||
Other receivables from related parties (note 22) | 191,499 | 91,185 | 3,139 | |||||||||
Other current financial assets (notes 8 and 23) | 1,280,078 | 1,615,510 | 55,611 | |||||||||
Inventories, net (note 9) | 47,881,948 | 42,585,982 | 1,465,955 | |||||||||
Prepayments and other current assets (notes 23 and 24) | 8,562,426 | 9,665,336 | 332,714 | |||||||||
Equity investment held for sale (note 10) | - | 116,390 | 4,007 | |||||||||
Deferred tax assets-current (note 19) | 2,304,158 | 1,663,795 | 57,274 | |||||||||
Financial assets measured at fair value-current (note 7) | 85,621 | 23,621 | 813 | |||||||||
Total current assets | 202,673,929 | 175,736,039 | 6,049,434 | |||||||||
Long-term investments: | ||||||||||||
Equity-method investments (note 10) | 15,917,335 | 13,811,600 | 475,442 | |||||||||
Available-for-sale financial assets-noncurrent (notes 5 and 23) | 436,774 | 235,134 | 8,094 | |||||||||
Financial assets measured at fair value-noncurrent (note 7) | 175 | 66 | 2 | |||||||||
Financial assets carried at cost-noncurrent (notes 6 and 10) | 1,487,795 | 1,341,890 | 46,193 | |||||||||
Total long-term investments | 17,842,079 | 15,388,690 | 529,731 | |||||||||
Property, plant and equipment (notes 11, 22 and 23): | ||||||||||||
Land | 9,365,481 | 9,144,050 | 314,769 | |||||||||
Buildings | 123,995,592 | 126,275,265 | 4,346,825 | |||||||||
Machinery and equipment | 730,389,859 | 736,512,889 | 25,353,284 | |||||||||
Other equipment | 39,394,042 | 36,975,216 | 1,272,813 | |||||||||
903,144,974 | 908,907,420 | 31,287,691 | ||||||||||
Less: Accumulated depreciation | (572,623,757 | ) | (616,709,587 | ) | (21,229,246 | ) | ||||||
Accumulated impairment | - | (2,453,916 | ) | (84,472 | ) | |||||||
Construction in progress | 8,259,938 | 9,314,590 | 320,640 | |||||||||
Prepayments for purchases of land and equipment | 19,697,808 | 14,934,259 | 514,088 | |||||||||
Net property, plant and equipment | 358,478,963 | 313,992,766 | 10,808,701 | |||||||||
Intangible assets: | ||||||||||||
Goodwill (note 12) | 11,456,176 | 11,280,595 | 388,316 | |||||||||
Technology-related fees (notes 12 and 24) | 3,971,926 | 3,652,303 | 125,725 | |||||||||
Total intangible assets | 15,428,102 | 14,932,898 | 514,041 | |||||||||
Other assets: | ||||||||||||
Idle assets, net (note 11) | 1,697,615 | 2,364,803 | 81,405 | |||||||||
Refundable deposit | 404,751 | 297,692 | 10,248 | |||||||||
Deferred charges | 3,321,469 | 2,955,729 | 101,746 | |||||||||
Deferred tax assets-noncurrent (note 19) | 11,064,101 | 12,341,891 | 424,850 | |||||||||
Restricted cash in bank (note 23) | 158,509 | 390,592 | 13,445 | |||||||||
Long-term prepayments for materials and others (notes 17 and 24) | 1,708,626 | 1,401,413 | 48,241 | |||||||||
Total other assets | 18,355,071 | 19,752,120 | 679,935 | |||||||||
Total Assets | 612,778,144 | 539,802,513 | 18,581,842 |
Note | December 31, 2013 | December 31, 2012 | January 1, 2012 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | 6 | $ | 76,312,272 | 76,655,675 | 90,053,268 | |||||||||||
Financial assets measured at fair value through profit or loss-current | 7 | 48,850 | 23,621 | 85,621 | ||||||||||||
Notes and accounts receivable, net | 9 | 40,600,855 | 36,357,450 | 44,747,926 | ||||||||||||
Accounts receivables from related parties, net | 9, 34 | 3,032,906 | 6,191,079 | 6,783,605 | ||||||||||||
Other receivables from related parties | 34 | 93,418 | 91,185 | 191,499 | ||||||||||||
Income taxes receivable | 47,849 | 65,832 | 72,413 | |||||||||||||
Inventories | 10 | 37,597,994 | 42,585,982 | 47,881,948 | ||||||||||||
Other current financial assets | 6, 9, 35 | 6,800,097 | 2,385,526 | 2,083,478 | ||||||||||||
Noncurrent assets held for sale | 11, 12 | 732,879 | 116,390 | - | ||||||||||||
Other current assets | 15, 35 | 4,336,937 | 9,599,504 | 8,490,013 | ||||||||||||
Total current assets | 169,604,057 | 174,072,244 | 200,389,771 | |||||||||||||
Noncurrent assets: | ||||||||||||||||
Financial assets measured at fair value through profit or loss-noncurrent | 7 | - | 66 | 175 | ||||||||||||
Available-for-sale financial assets-noncurrent | 8, 35 | 700,730 | 1,577,024 | 1,924,569 | ||||||||||||
Investments in equity-accounted investees | 11 | 13,353,861 | 13,819,181 | 15,921,825 | ||||||||||||
Property, plant and equipment, net | 12, 34, 35 | 270,269,007 | 315,518,217 | 359,360,902 | ||||||||||||
Investment property, net | 13, 21, 35 | 1,255,214 | 1,265,584 | 1,275,954 | ||||||||||||
Intangible assets | 14 | 4,432,542 | 3,652,303 | 4,147,507 | ||||||||||||
Deferred tax assets | 23 | 1,078,630 | 1,065,850 | 841,274 | ||||||||||||
Other noncurrent assets | 15, 35 | 4,141,894 | 4,037,990 | 4,583,524 | ||||||||||||
Total noncurrent assets | 295,231,878 | 340,936,215 | 388,055,730 | |||||||||||||
Total Assets | $ | 464,835,935 | 515,008,459 | 588,445,501 |
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Current liabilities: | ||||||||||||
Short-term borrowings (note 13) | 7,850,793 | 8,620,050 | 296,731 | |||||||||
Notes payable and accounts payable | 65,244,893 | 65,695,688 | 2,261,469 | |||||||||
Payables to related parties (note 22) | 17,454,179 | 15,814,928 | 544,404 | |||||||||
Accrued expenses and other current liabilities (notes 10, 14 and 24) | 47,295,070 | 40,495,553 | 1,393,995 | |||||||||
Financial liabilities measured at fair value-current (note 7) | 17,523 | 804,001 | 27,676 | |||||||||
Other payables to related parties (note 22) | 168,004 | 76,011 | 2,617 | |||||||||
Equipment and construction in progress payable (note 22) | 18,761,731 | 14,597,502 | 502,496 | |||||||||
Current installments of long-term borrowings (notes 16 and 23) | 42,868,289 | 45,490,589 | 1,565,941 | |||||||||
Current installments of bonds payable (notes 14 and 23) | 3,564,383 | - | - | |||||||||
Total current liabilities | 203,224,865 | 191,594,322 | 6,595,329 | |||||||||
Long-term liabilities: | ||||||||||||
Financial liabilities measured at fair value-noncurrent (note 7) | 176,226 | 54,000 | 1,859 | |||||||||
Convertible bonds payable (note 15) | 21,787,128 | 21,598,083 | 743,480 | |||||||||
Long-term borrowings, excluding current installments (notes 16 and 23) | 156,088,780 | 147,417,823 | 5,074,624 | |||||||||
Hedging derivative financial liabilities-noncurrent (note 7) | 198,360 | 58,547 | 2,015 | |||||||||
Long-term payables-excluding current installments and others (notes 10 and 24) | 1,290,740 | 1,082,109 | 37,250 | |||||||||
Unearned revenue (note 24) | 6,617,500 | 5,338,926 | 183,784 | |||||||||
Total long-term liabilities | 186,158,734 | 175,549,488 | 6,043,012 | |||||||||
Other liabilities (notes 17 and 24) | 2,117,607 | 9,423,221 | 324,379 | |||||||||
Total liabilities | 391,501,206 | 376,567,031 | 12,962,720 | |||||||||
Stockholders’ equity (notes 5, 7, 10, 15 and 18): | ||||||||||||
Capital stock: | ||||||||||||
Common stock, NT$10 par value | 88,270,455 | 88,270,455 | 3,038,570 | |||||||||
Capital surplus | 117,709,063 | 114,384,422 | 3,937,502 | |||||||||
Retained earnings: | ||||||||||||
Legal reserve | 15,875,372 | - | - | |||||||||
Accumulated deficits | (18,347,855 | ) | (54,614,704 | ) | (1,880,024 | ) | ||||||
(2,472,483 | ) | (54,614,704 | ) | (1,880,024 | ) | |||||||
Others: | ||||||||||||
Cumulative translation adjustments | 2,021,571 | 1,101,768 | 37,927 | |||||||||
Minimum pension liability | (1,316 | ) | (1,933 | ) | (67 | ) | ||||||
Unrealized gains (losses) on financial instruments | (138,574 | ) | 10,847 | 373 | ||||||||
1,881,681 | 1,110,682 | 38,233 | ||||||||||
205,388,716 | 149,150,855 | 5,134,281 | ||||||||||
Minority interests | 15,888,222 | 14,084,627 | 484,841 | |||||||||
Total stockholders’ equity | 221,276,938 | 163,235,482 | 5,619,122 | |||||||||
Commitments and contingent liabilities (note 24) | ||||||||||||
Total Liabilities and Stockholders’ Equity | 612,778,144 | 539,802,513 | 18,581,842 |
Note | December 31, 2013 | December 31, 2012 | January 1, 2012 | |||||||||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Short-term borrowings | 16 | $ | 3,457,174 | 8,620,050 | 7,850,793 | |||||||||||
Current installments of bonds payable | 17 | - | - | 3,564,383 | ||||||||||||
Current installments of long-term borrowings | 19 | 62,763,024 | 45,490,589 | 42,868,289 | ||||||||||||
Financial liabilities measured at fair value through profit or loss-current | 7 | 420,861 | 804,001 | 17,523 | ||||||||||||
Notes and accounts payable | 63,410,426 | 65,695,688 | 65,244,893 | |||||||||||||
Accounts payables to related parties | 34 | 14,952,576 | 15,814,928 | 17,454,179 | ||||||||||||
Equipment and construction payable | 34 | 7,468,055 | 14,597,502 | 18,761,731 | ||||||||||||
Other payables to related parties | 34 | 70,552 | 76,011 | 168,004 | ||||||||||||
Current income tax liabilities | 990,983 | 246,548 | 415,122 | |||||||||||||
Provisions-current | 20 | 6,344,114 | 20,452,981 | 25,406,821 | ||||||||||||
Other current liabilities | 11, 12 | 21,460,893 | 20,423,425 | 25,816,231 | ||||||||||||
Total current liabilities | 181,338,658 | 192,221,723 | 207,567,969 | |||||||||||||
Noncurrent liabilities: | ||||||||||||||||
Financial liabilities measured at fair value through profit or loss-noncurrent | 7 | - | 54,000 | 176,226 | ||||||||||||
Hedging derivative financial liabilities-noncurrent | 7 | 17,062 | 58,547 | 198,360 | ||||||||||||
Convertible bonds payable | 18 | 19,513,820 | 21,598,083 | 21,787,128 | ||||||||||||
Long-term borrowings, excluding current installments | 19 | 98,974,151 | 147,417,823 | 156,088,780 | ||||||||||||
Provisions-noncurrent | 20 | 5,129,403 | 8,658,360 | 1,183,461 | ||||||||||||
Deferred tax liabilities | 23 | 820,130 | 816,402 | 446,194 | ||||||||||||
Other noncurrent liabilities | 11, 22, 34 | 6,052,491 | 8,034,722 | 9,446,800 | ||||||||||||
Total noncurrent liabilities | 130,507,057 | 186,637,937 | 189,326,949 | |||||||||||||
Total liabilities | 311,845,715 | 378,859,660 | 396,894,918 | |||||||||||||
Equity | 24 | |||||||||||||||
Common stock, $10 par value | 96,242,451 | 88,270,455 | 88,270,455 | |||||||||||||
Capital surplus | 60,503,012 | 112,515,983 | 114,987,788 | |||||||||||||
Accumulated deficit | (21,897,673 | ) | (80,204,451 | ) | (30,144,451 | ) | ||||||||||
Other components of equity | 4,105,910 | 1,504,200 | 2,566,027 | |||||||||||||
Equity attributable to stockholders of AU Optronics Corp. | 138,953,700 | 122,086,187 | 175,679,819 | |||||||||||||
Non-controlling interests | 24 | 14,036,520 | 14,062,612 | 15,870,764 | ||||||||||||
Total equity | 152,990,220 | 136,148,799 | 191,550,583 | |||||||||||||
Total Liabilities and Equity | $ | 464,835,935 | 515,008,459 | 588,445,501 |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Net sales (note 22) | 467,157,964 | 379,711,878 | 378,470,935 | 13,028,260 | ||||||||||||
Cost of goods sold (notes 9 and 22) | 430,859,371 | 407,899,195 | 387,145,972 | 13,326,884 | ||||||||||||
Gross profit (loss) | 36,298,593 | (28,187,317 | ) | (8,675,037 | ) | (298,624 | ) | |||||||||
Operating expenses (note 22): | ||||||||||||||||
Selling | 8,641,453 | 9,636,557 | 9,802,235 | 337,427 | ||||||||||||
General and administrative | 10,736,924 | 11,208,846 | 9,216,436 | 317,261 | ||||||||||||
Research and development | 6,423,552 | 8,625,812 | 10,170,966 | 350,119 | ||||||||||||
25,801,929 | 29,471,215 | 29,189,637 | 1,004,807 | |||||||||||||
Operating income (loss) | 10,496,664 | (57,658,532 | ) | (37,864,674 | ) | (1,303,431 | ) | |||||||||
Non-operating income and gains: | ||||||||||||||||
Interest income | 286,798 | 403,538 | 476,117 | 16,390 | ||||||||||||
Investment gains recognized by equity method, net (note 10) | 681,331 | - | 347,211 | 11,952 | ||||||||||||
Gains on sale of investment securities, net (note 10) | 1,527,229 | 3,080,716 | 455,531 | 15,681 | ||||||||||||
Foreign currency exchange gains, net | - | - | 1,988,284 | 68,443 | ||||||||||||
Gains on valuation of financial instruments, net (note 7) | 3,986,083 | 744,072 | - | - | ||||||||||||
Other income (notes 15 and 22) | 2,302,755 | 3,262,032 | 2,924,416 | 100,668 | ||||||||||||
8,784,196 | 7,490,358 | 6,191,559 | 213,134 | |||||||||||||
Non-operating expenses and losses: | ||||||||||||||||
Interest expenses (notes 14 and 15) | 4,233,127 | 4,876,254 | 5,731,213 | 197,288 | ||||||||||||
Foreign currency exchange losses, net | 3,581,120 | 94,732 | - | - | ||||||||||||
Depreciation of idle assets | 859,193 | 1,002,771 | 594,364 | 20,460 | ||||||||||||
Investment losses recognized by equity method, net (note 10) | - | 63,943 | - | - | ||||||||||||
Asset impairment losses (notes 5, 10, 11 and 12) | - | 479,966 | 4,799,673 | 165,221 | ||||||||||||
Losses on valuation of financial instruments, net (note 7) | - | - | 1,260,588 | 43,394 | ||||||||||||
Provisions for potential litigation losses and others (notes 22 and 24) | 2,011,439 | 8,966,289 | 11,211,629 | 385,942 | ||||||||||||
10,684,879 | 15,483,955 | 23,597,467 | 812,305 | |||||||||||||
Earnings (loss) before income taxes | 8,595,981 | (65,652,129 | ) | (55,270,582 | ) | (1,902,602 | ) | |||||||||
Income tax (expense) benefit (note 19) | (1,187,894 | ) | 4,205,079 | (636,422 | ) | (21,908 | ) | |||||||||
Net income (loss) | 7,408,087 | (61,447,050 | ) | (55,907,004 | ) | (1,924,510 | ) | |||||||||
Attributable to: | ||||||||||||||||
Equity holders of the parent company | 6,692,657 | (61,263,814 | ) | (54,614,704 | ) | (1,880,024 | ) | |||||||||
Minority interest | 715,430 | (183,236 | ) | (1,292,300 | ) | (44,486 | ) | |||||||||
Net income (loss) | 7,408,087 | (61,447,050 | ) | (55,907,004 | ) | (1,924,510 | ) |
Note | 2013 | 2012 | ||||||||||
Net revenue | 26, 34 | $ | 416,363,005 | 378,470,935 | ||||||||
Cost of sales | 10, 27, 34 | (382,378,938 | ) | (391,593,831 | ) | |||||||
Gross profit (loss) | 33,984,067 | (13,122,896 | ) | |||||||||
Selling and distribution expenses | 27 | (7,470,014 | ) | (6,377,179 | ) | |||||||
General and administrative expenses | 27 | (9,691,071 | ) | (9,203,940 | ) | |||||||
Research and development expenses | 27 | (8,530,461 | ) | (9,904,299 | ) | |||||||
Other income | 28, 34 | 2,448,464 | 3,191,543 | |||||||||
Other gains and losses | 7, 8, 11, 12, 13, 18, 29, 34 | (1,176,393 | ) | (10,665,140 | ) | |||||||
Finance costs | 30 | (4,782,832 | ) | (5,731,213 | ) | |||||||
Share of profit of equity-accounted investees | 11 | 454,268 | 319,061 | |||||||||
Profit (loss) before income tax | 5,236,028 | (51,494,063 | ) | |||||||||
Income tax expense | 23 | 1,359,164 | 1,123,984 | |||||||||
Profit (loss) for the year | 3,876,864 | (52,618,047 | ) | |||||||||
Other comprehensive income (loss) | 22, 23, 24 | |||||||||||
Items that will never be reclassified to profit or loss | ||||||||||||
Actuarial loss in defined benefit plans | (35,283 | ) | (369,539 | ) | ||||||||
Related tax | 467 | 1,029 | ||||||||||
Items that are or may be reclassified to profit or loss | ||||||||||||
Foreign operations - foreign currency translation differences | 3,011,724 | (1,174,931 | ) | |||||||||
Net change in fair value of available-for-sale financial assets | 449,043 | 191,474 | ||||||||||
Effective portion of changes in fair value of cash flow hedges | 41,485 | 140,576 | ||||||||||
Equity-accounted investees – share of other comprehensive income (loss) | 131,926 | (282,016 | ) | |||||||||
Realized gain on sales of securities transferred to profit or loss | (524,690 | ) | (122,987 | ) | ||||||||
Related tax | (76,097 | ) | 32,575 | |||||||||
Other comprehensive income (loss), net of taxes | 2,998,575 | (1,583,819 | ) | |||||||||
Total comprehensive income (loss) for the year | $ | 6,875,439 | (54,201,866 | ) | ||||||||
Profit (loss) attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | $ | 3,804,142 | (51,327,071 | ) | ||||||||
Non-controlling interests | 72,722 | (1,290,976 | ) | |||||||||
Profit (loss) for the year | $ | 3,876,864 | (52,618,047 | ) | ||||||||
Total comprehensive income (loss) attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | $ | 6,367,518 | (52,751,685 | ) | ||||||||
Non-controlling interests | 507,921 | (1,450,181 | ) | |||||||||
Total comprehensive income (loss) for the year | $ | 6,875,439 | (54,201,866 | ) | ||||||||
Earnings (loss) per share | 25 | |||||||||||
Basic earnings (loss) per share | $ | 0.41 | (5.81 | ) | ||||||||
Diluted earnings per share | $ | 0.40 | - |
Equity attributable to stockholders of AU Optronics Corp. | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated deficit | Other components of equity | Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital surplus | Legal reserve | Accumulated deficit | Subtotal | Cumulative translation differences | Unrealized gains (losses) on financial instruments | Unrealized gains (losses) on cash flow hedges | Subtotal | attributable to stockholders of AU Optronics Corp. | Non-controlling interests | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $88,270,455 | 114,987,788 | 15,875,372 | (46,019,823 | ) | (30,144,451 | ) | 2,768,971 | (29,354 | ) | (173,590 | ) | 2,566,027 | 175,679,819 | 15,870,764 | 191,550,583 | ||||||||||||||||||||||||||||||||
Appropriation for capital surplus and legal reserve | - | (2,472,483 | ) | (15,875,372 | ) | 18,347,855 | 2,472,483 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Loss for the year | - | - | - | (51,327,071 | ) | (51,327,071 | ) | - | - | - | - | (51,327,071 | ) | (1,290,976 | ) | (52,618,047 | ) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | - | - | - | (362,787 | ) | (362,787 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (1,424,614 | ) | (159,205 | ) | (1,583,819 | ) | |||||||||||||||||||||||||||||
Total comprehensive income (loss) for the year | - | - | - | (51,689,858 | ) | (51,689,858 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (52,751,685 | ) | (1,450,181 | ) | (54,201,866 | ) | |||||||||||||||||||||||||||||
Adjustments to capital surplus and accumulated deficit for changes in investees’ equity | - | 678 | - | (842,625 | ) | (842,625 | ) | - | - | - | - | (841,947 | ) | 464,052 | (377,895 | ) | ||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (822,023 | ) | (822,023 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 88,270,455 | 112,515,983 | - | (80,204,451 | ) | (80,204,451 | ) | 1,517,468 | 19,746 | (33,014 | ) | 1,504,200 | 122,086,187 | 14,062,612 | 136,148,799 | |||||||||||||||||||||||||||||||||
Appropriation for capital surplus | - | (54,614,704 | ) | - | 54,614,704 | 54,614,704 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Issuance of common stock | 7,971,996 | 2,308,654 | - | - | - | - | - | - | - | 10,280,650 | - | 10,280,650 | ||||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | 3,804,142 | 3,804,142 | - | - | - | - | 3,804,142 | 72,722 | 3,876,864 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | - | - | - | (38,334 | ) | (38,334 | ) | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 2,563,376 | 435,199 | 2,998,575 | ||||||||||||||||||||||||||||||||||
Total comprehensive income for the year | - | - | - | 3,765,808 | 3,765,808 | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 6,367,518 | 507,921 | 6,875,439 | ||||||||||||||||||||||||||||||||||||
Adjustments to capital surplus and accumulated deficit for changes in investees’ equity | - | 293,079 | - | (73,734 | ) | (73,734 | ) | - | - | - | - | 219,345 | 45,969 | 265,314 | ||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (579,982 | ) | (579,982 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $96,242,451 | 60,503,012 | - | (21,897,673 | ) | (21,897,673 | ) | 3,836,530 | 260,909 | 8,471 | 4,105,910 | 138,953,700 | 14,036,520 | 152,990,220 |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Earnings (loss) per share-Basic (note 20): | ||||||||||||||||
Basic EPS-net income (loss) | 0.76 | (6.94 | ) | (6.19 | ) | (0.21 | ) | |||||||||
Earnings (loss) per share-Diluted (note 20): | ||||||||||||||||
Diluted EPS-net income (loss) | 0.70 | (6.94 | ) | (6.19 | ) | (0.21 | ) |
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-sale 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 |
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Profit (loss) before income tax | $ | 5,236,028 | (51,494,063 | ) | ||||
Adjustments for: | ||||||||
Depreciation | 62,763,514 | 74,511,463 | ||||||
Amortization | 874,233 | 764,976 | ||||||
Interest expense | 4,782,832 | 5,731,213 | ||||||
Interest income | (329,360 | ) | (476,117 | ) | ||||
Dividend income | (2,855 | ) | (422,727 | ) | ||||
Equity-accounted investees – share of profit | (454,268 | ) | (319,061 | ) | ||||
Losses (gains) on disposals of property, plant and equipment | (70,569 | ) | 389,008 | |||||
Gains on disposals of investment securities | (1,813,751 | ) | (614,285 | ) | ||||
Gains on disposals of investment in subsidiaries | (23,744 | ) | - | |||||
Write-downs of inventories | 5,106,531 | 4,880,410 | ||||||
Impairment losses on assets | 755,634 | 4,952,058 | ||||||
Unrealized foreign currency exchange losses (gains) | 1,598,293 | (2,932,596 | ) | |||||
Gain on purchase of convertible bonds payable | (222,192 | ) | - | |||||
Effect of exchange rates on purchase of convertible bonds payable | (134,210 | ) | - | |||||
Changes in fair values of financial instruments | (462,303 | ) | 726,361 | |||||
Changes in deferred taxes | (12,393 | ) | (997 | ) | ||||
Difference between pension costs and contributions for the year | (91,707 | ) | (78,588 | ) | ||||
72,263,685 | 87,111,118 | |||||||
Change in operating assets and liabilities: | ||||||||
-notes and accounts receivable | (3,019,995 | ) | 8,549,423 | |||||
-receivables from related parties | 1,949,337 | 692,840 | ||||||
-inventories | (718,448 | ) | 341,572 | |||||
-other current assets | 462,182 | (695,340 | ) | |||||
-notes and accounts payable | (3,999,188 | ) | 2,353,411 | |||||
-accounts payables to related parties | 162,081 | (1,731,244 | ) | |||||
-provisions | (17,915,214 | ) | 2,707,610 | |||||
-other current liabilities | (530,671 | ) | (7,058,420 | ) | ||||
(23,609,916 | ) | 5,159,852 | ||||||
Cash generated from operating activities | 53,889,797 | 40,776,907 | ||||||
Cash received from interest income | 345,215 | 455,457 | ||||||
Cash received from dividend income | 233,302 | 607,715 | ||||||
Cash paid for interest | (4,148,281 | ) | (5,091,772 | ) | ||||
Cash paid for income taxes | (677,589 | ) | (1,000,359 | ) | ||||
Net cash provided by operating activities | 49,642,444 | 35,747,948 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from disposals of available-for-sale financial assets | 1,688,342 | 356,790 | ||||||
Acquisitions of available-for-sale financial assets | (209,478 | ) | - | |||||
Acquisitions of equity-accounted investees | (939 | ) | (239,795 | ) | ||||
Proceeds from disposals of equity-accounted investees | 1,729,729 | 523,544 | ||||||
Cash decrease resulting from disposals of subsidiaries | (260,210 | ) | - | |||||
Acquisitions of property, plant and equipment | (25,457,759 | ) | (43,332,613 | ) | ||||
Proceeds from disposals of property, plant and equipment | 587,337 | 82,241 | ||||||
Deposits refunded | 160,295 | 105,501 | ||||||
Acquisitions of intangible assets | (1,654,318 | ) | (445,292 | ) | ||||
Decrease (increase) in other financial assets | 193,209 | (232,083 | ) | |||||
Net cash used in investing activities | (23,223,792 | ) | (43,181,707 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of short-term borrowings | (5,162,876 | ) | (579,923 | ) | ||||
Repurchase of convertible bonds payable | (3,147,405 | ) | - | |||||
Repayments of bonds payable | - | (3,555,819 | ) | |||||
Proceeds from long-term borrowings | 19,629,576 | 46,323,730 | ||||||
Repayments of long-term borrowings | (48,378,183 | ) | (47,160,810 | ) | ||||
Decrease in guarantee deposits | (145,746 | ) | (23,806 | ) | ||||
Proceeds from issuance of common stock | 10,280,650 | - | ||||||
Proceeds from issuance of subsidiary shares to non-controlling interests and others | 138,548 | (943,817 | ) | |||||
Net cash used in financing activities | (26,785,436 | ) | (5,940,445 | ) | ||||
Effect of exchange rate change on cash held | 23,381 | (23,389 | ) | |||||
Net decrease in cash and cash equivalents | (343,403 | ) | (13,397,593 | ) | ||||
Cash and cash equivalents at January 1 | 76,655,675 | 90,053,268 | ||||||
Cash and cash equivalents at December 31 | $ | 76,312,272 | 76,655,675 |
Capital stock | Retained earnings | Others | ||||||||||||||||||||||||||||||||||||||
Number of shares | Amount | Capital surplus | Legal reserve | Unappropriated retained earnings (Accumulated deficits) | Cumulative translation adjustments | Minimum pension liability | Unrealized gains (losses) on financial instruments | Minority interests | Total | |||||||||||||||||||||||||||||||
Balance at January 1, 2011 | 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 | ||||||||||||||||||||||||||||||
Appropriation for legal reserve | - | - | - | 669,266 | (669,266 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Cash dividends | - | - | - | - | (3,530,818 | ) | - | - | - | - | (3,530,818 | ) | ||||||||||||||||||||||||||||
Unrealized losses on available-for-sale financial assets, net | - | - | - | - | - | - | - | (750,395 | ) | (431 | ) | (750,826 | ) | |||||||||||||||||||||||||||
Unrealized gains on cash flow hedges, net | - | - | - | - | - | - | - | 76,863 | 376 | 77,239 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | 967,675 | - | - | 332,925 | 1,300,600 | ||||||||||||||||||||||||||||||
Adjustments to capital surplus, minimum pension liability and unrealized losses on financial instruments for changes in investees’ equity | - | - | 1,761,258 | - | - | - | (1,316 | ) | (31,670 | ) | (1,270,657 | ) | 457,615 | |||||||||||||||||||||||||||
Net loss | - | - | - | - | (61,263,814 | ) | - | - | - | (183,236 | ) | (61,447,050 | ) | |||||||||||||||||||||||||||
Adjustments for changes in minority interests | - | - | - | - | - | - | - | - | 2,845,621 | 2,845,621 | ||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 8,827,046 | 88,270,455 | 117,709,063 | 15,875,372 | (18,347,855 | ) | 2,021,571 | (1,316 | ) | (138,574 | ) | 15,888,222 | 221,276,938 |
Capital stock | Retained earnings (Accumulative deficits) | Others | ||||||||||||||||||||||||||||||||||||||
Number of shares | Amount | Capital surplus | Legal reserve | Unappro -priated retained earnings (Accumulated deficits) | Cumulative translation adjustments | Minimum pension liability | Unrealized gains (losses) on financial instruments | Minority interests | Total | |||||||||||||||||||||||||||||||
Balance at January 1, 2012 | 8,827,046 | 88,270,455 | 117,709,063 | 15,875,372 | (18,347,855 | ) | 2,021,571 | (1,316 | ) | (138,574 | ) | 15,888,222 | 221,276,938 | |||||||||||||||||||||||||||
Appropriation for capital surplus and legal reserve | - | - | (2,472,483 | ) | (15,875,372 | ) | 18,347,855 | - | - | - | - | - | ||||||||||||||||||||||||||||
Unrealized gains on available-for-sales financial assets, net | - | - | - | - | - | - | - | 68,345 | 66 | 68,411 | ||||||||||||||||||||||||||||||
Unrealized gains on cash flow hedges, net | - | - | - | - | - | - | - | 116,918 | - | 116,918 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | - | - | - | - | - | (919,803 | ) | - | - | (153,654 | ) | (1,073,457 | ) | |||||||||||||||||||||||||||
Adjustments to capital surplus, minimum pension liability and unrealized losses on financial instruments for changes in investees’ equity | - | - | (852,158 | ) | - | - | - | (617 | ) | (35,842 | ) | 464,422 | (424,195 | ) | ||||||||||||||||||||||||||
Net loss | - | - | - | - | (54,614,704 | ) | - | - | - | (1,292,300 | ) | (55,907,004 | ) | |||||||||||||||||||||||||||
Adjustments for changes in minority interests | - | - | - | - | - | - | - | - | (822,129 | ) | (822,129 | ) | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | 8,827,046 | 88,270,455 | 114,384,422 | - | (54,614,704 | ) | 1,101,768 | (1,933 | ) | 10,847 | 14,084,627 | 163,235,482 | ||||||||||||||||||||||||||||
Balance at December 31, 2012 (in US$) | - | 3,038,570 | 3,937,502 | - | (1,880,024 | ) | 37,927 | (67 | ) | 373 | 484,841 | 5,619,122 |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | 7,408,087 | (61,447,050 | ) | (55,907,004 | ) | (1,924,510 | ) | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 87,748,809 | 87,361,532 | 74,242,523 | 2,555,681 | ||||||||||||
Amortization of intangible assets and deferred charges | 1,386,893 | 1,390,901 | 1,344,133 | 46,270 | ||||||||||||
Amortization on discount of bonds payable and others | 156,020 | 581,880 | 699,122 | 24,066 | ||||||||||||
Unrealized foreign currency exchange losses (gains), net | (940,903 | ) | 929,297 | (2,932,596 | ) | (100,950 | ) | |||||||||
Asset impairment losses | - | 479,966 | 4,799,673 | 165,221 | ||||||||||||
Losses (gains) on valuation of financial instruments, net | (781,930 | ) | 178,560 | 726,361 | 25,004 | |||||||||||
Investment losses (gains) recognized by equity method, net | (681,331 | ) | 63,943 | (347,211 | ) | (11,952 | ) | |||||||||
Proceeds from cash dividends | 437,801 | 651,486 | 184,988 | 6,368 | ||||||||||||
Gains on disposal of investment securities | (1,527,229 | ) | (3,080,716 | ) | (455,531 | ) | (15,681 | ) | ||||||||
Losses (gains) from disposal and write-off of property, plant and equipment and idle assets | (78,697 | ) | 115,533 | 388,638 | 13,378 | |||||||||||
Gain on purchase of convertible bonds payable | - | (686,972 | ) | - | - | |||||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Decrease in accounts and notes receivable (including related parties) | 2,061,603 | 8,596,428 | 9,242,263 | 318,150 | ||||||||||||
Decrease (increase) in inventories, net | (6,197,038 | ) | (3,301,713 | ) | 5,221,982 | 179,758 | ||||||||||
Increase in deferred tax assets, net | (535,267 | ) | (4,492,695 | ) | (341,102 | ) | (11,742 | ) | ||||||||
Increase in prepayments and other current assets | (2,017,877 | ) | (5,814,751 | ) | (1,054,295 | ) | (36,292 | ) | ||||||||
Increase (decrease) in accounts and notes payable (including related parties) | 2,732,480 | (11,393,855 | ) | 622,167 | 21,417 | |||||||||||
Increase in accrued expenses, other current liabilities and other liabilities | 958,950 | 5,198,466 | 607,265 | 20,904 | ||||||||||||
Increase (decrease) in unearned revenue | 671,170 | (704,701 | ) | (1,278,574 | ) | (44,013 | ) | |||||||||
Increase in prepaid pension assets | (65,954 | ) | (110,419 | ) | (49,562 | ) | (1,706 | ) | ||||||||
Net cash provided by operating activities | 90,735,587 | 14,515,120 | 35,713,240 | 1,229,371 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property, plant and equipment, including interest capitalized | (84,620,951 | ) | (56,919,591 | ) | (43,104,164 | ) | (1,483,792 | ) | ||||||||
Proceeds from disposal of property, plant and equipment, and idle assets | 73,958 | 51,268 | 82,241 | 2,831 | ||||||||||||
Proceeds from disposal of available-for-sale financial assets and financial assets carried at cost | 717,175 | 155,091 | 356,790 | 12,282 | ||||||||||||
Purchase of equity-method investments | (1,258,811 | ) | (2,467,442 | ) | (239,795 | ) | (8,254 | ) | ||||||||
Purchase of financial assets carried at cost | (658,959 | ) | (30,000 | ) | - | - | ||||||||||
Capital return of equity-method investment | 18,677 | 95,389 | - | - | ||||||||||||
Proceeds from disposal of equity-method investments | 1,360,447 | 3,840,423 | 523,544 | 18,022 | ||||||||||||
Decrease (increase) in restricted cash in bank | 429,733 | 3,712 | (232,083 | ) | (7,989 | ) | ||||||||||
Increase in intangible assets and deferred charges | (1,414,472 | ) | (2,419,657 | ) | (753,051 | ) | (25,923 | ) | ||||||||
Decrease (increase) in refundable deposits | 18,346 | (224,489 | ) | 105,501 | 3,632 | |||||||||||
Cash increase (decrease) resulting from change in consolidated entity | (1,883,482 | ) | 86,262 | 30,626 | 1,054 | |||||||||||
Net cash used in investing activities | (87,218,339 | ) | (57,829,034 | ) | (43,230,391 | ) | (1,488,137 | ) |
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Increase (decrease) in short-term borrowings | (4,938,767 | ) | 3,104,515 | (579,923 | ) | (19,963 | ) | |||||||||
Increase (decrease) in guarantee deposits | 164,757 | 915,055 | (23,806 | ) | (819 | ) | ||||||||||
Repayment of long-term borrowings, bonds payable and convertible bonds payable | (60,610,911 | ) | (47,654,567 | ) | (50,716,629 | ) | (1,745,839 | ) | ||||||||
Proceeds from long-term borrowings and convertible bonds payable | 62,609,918 | 89,647,542 | 46,323,730 | 1,594,621 | ||||||||||||
Cash dividends | - | (3,530,818 | ) | - | - | |||||||||||
Proceeds from issuance of subsidiary shares to minority interests | 4,338,348 | 3,252,346 | 2,452,704 | 84,430 | ||||||||||||
Return of subsidiary’s capital to minority interests | - | - | (3,060,000 | ) | (105,336 | ) | ||||||||||
Cash dividends to minority interests and others | (685,129 | ) | 101,867 | (360,607 | ) | (12,414 | ) | |||||||||
Net cash provided by (used in) financing activities | 878,216 | 45,835,940 | (5,964,531 | ) | (205,320 | ) | ||||||||||
Effect of exchange rate change on cash | (340,284 | ) | (1,183,849 | ) | 70,705 | 2,434 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 4,055,180 | 1,338,177 | (13,410,977 | ) | (461,652 | ) | ||||||||||
Cash and cash equivalents at beginning of year | 85,443,311 | 89,498,491 | 90,836,668 | 3,126,908 | ||||||||||||
Cash and cash equivalents at end of year | 89,498,491 | 90,836,668 | 77,425,691 | 2,665,256 | ||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash paid for interest expense (excluding interest capitalized) | 4,260,269 | 4,892,384 | 5,091,772 | 175,276 | ||||||||||||
Cash paid for income taxes | 803,775 | 1,172,641 | 1,000,359 | 34,436 | ||||||||||||
Supplementary disclosure of non-cash investing and financing activities: | ||||||||||||||||
Current installments of long-term liabilities | 35,929,800 | 46,432,672 | 45,490,589 | 1,565,941 | ||||||||||||
Reclassification between equity-method investments and equity investment held for sale | 707,175 | - | (116,390 | ) | (4,007 | ) | ||||||||||
Additions to property, plant and equipment: | ||||||||||||||||
Increase in property, plant and equipment | 79,143,746 | 54,883,840 | 38,539,904 | 1,326,675 | ||||||||||||
Decrease in equipment and construction-in-progress payables | 5,477,205 | 2,035,751 | 4,564,260 | 157,117 | ||||||||||||
84,620,951 | 56,919,591 | 43,104,164 | 1,483,792 | |||||||||||||
Impact of change in consolidated entities: | ||||||||||||||||
Cash | 594,832 | (86,262 | ) | (67,626 | ) | (2,328 | ) | |||||||||
Non-cash assets | 499,663 | (5,810,609 | ) | (4,952 | ) | (170 | ) | |||||||||
Liabilities | 1,599,359 | 5,845,935 | 40 | 1 | ||||||||||||
Minority interests | (3,982,504 | ) | 50,936 | 35,538 | 1,223 | |||||||||||
(1,288,650 | ) | - | (37,000 | ) | (1,274 | ) | ||||||||||
Cash received from subsidiaries | 199,243 | 86,262 | 67,626 | 2,328 | ||||||||||||
Cash decrease due to deconsolidation of subsidiary | (794,075 | ) | - | - | - | |||||||||||
(1,883,482 | ) | 86,262 | 30,626 | 1,054 |
1. | Organization |
2. | Basis of Accounting and Financial Statement Presentation |
3. | Summary of Significant Accounting Policies |
(a) | Basis of consolidation |
(1) | Principle of preparation of the consolidated financial statements |
(i) | The aggregate of: |
a. | the far value of the consideration received, and |
b. | the fair value of any retained non-controlling investment in the former subsidiary at the date when the Company losses control |
(ii) | The aggregate of the carrying amount of the former subsidiary’s assets (including goodwill), liabilities and non-controlling interests at the date when the Company losses control. |
(2) | List of subsidiaries in the consolidated financial statements |
Percentage of Ownership (%) | ||||||||
Name of Investor | Subsidiary | Main Activities | December 31, 2011 | December 31, 2012 | ||||
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 | Sungen Power Corporation (SGPC) | Solar power generation | - | 100.00 | ||||
AUO, Konly and Ronly | BriView Corp. (BVTW) | Manufacturing, design and sale of TFT-LCD modules, TV set, backlight modules and related parts | 68.86 | 68.86 |
Percentage of Ownership (%) | ||||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | |||||||||||
AUO | AU Optronics (L) Corp. (AULB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | |||||||||||
AUO | Konly Venture Corp. (Konly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 | 100.00 |
Percentage of Ownership (%) | Percentage of Ownership (%) | ||||||||||||||||||||||
Name of Investor | Subsidiary | Main Activities | December 31, 2011 | December 31, 2012 | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | ||||||||||||||
AUO | Ronly Venture Corp. (Ronly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 | 100.00 | ||||||||||||||||||
AUO | Toppan CFI (Taiwan) Co., Ltd. (Toppan CFI) | Manufacturing and sale of color filters (Taiwan ROC) | 49.00 | (1) | 49.00 | (1) | 49.00 | (1) | |||||||||||||||
AUO | Sungen Power Corporation (SGPC) | Solar power generation (Taiwan ROC) | 100.00 | 100.00 | - | ||||||||||||||||||
AUO, Konly and Ronly | AUO Crystal Corp. (ACTW) | Design, manufacture and sale of the solar modules | 86.40 | 90.84 | BriView Corp. (BVTW) | Manufacturing, design and sale of TFT-LCD modules, TV set, backlight modules and related parts (Taiwan ROC) | 68.86 | 68.86 | 68.86 | ||||||||||||||
AUO, Konly and Ronly | AUO Crystal Corp. (ACTW) | Design, manufacture and sale of solar modules (Taiwan ROC) | 90.84 | 90.84 | 86.40 | ||||||||||||||||||
Konly | Darshin Microelectronics Inc. (DSTW) | IC design and sales | 66.67 | 66.68 | Darshin Microelectronics Inc. (DSTW) | IC design and sales (Taiwan ROC) | 66.68 | (2) | 66.68 | (2) | 66.67 | ||||||||||||
ACTW | AUO Crystal (Malaysia) Sdn. Bhd. (ACMK) | Manufacturing and sale of single crystal silicon wafers | 100.00 | 100.00 | AUO Crystal (Malaysia) Sdn. Bhd. (ACMK) | Manufacturing and sale of single crystal silicon wafers (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||||||
ACTW | M. Setek | Manufacturing of single crystal silicon wafers and ingots and sales of solar modules | 93.49 | 99.35 | M. Setek Co., Ltd. (M. Setek) | Manufacturing and sales of solar silicon poly, single crystal silicon ingots and solar wafers (Japan) | 99.92 | 99.35 | 93.49 | ||||||||||||||
AULB | AU Optronics Corporation America (AUUS) | Sales and sales support in the United States | 100.00 | 100.00 | |||||||||||||||||||
AULB | AU Optronics Corporation Japan (AUJP) | Sales and 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 company and sales support in South Asia | 100.00 | 100.00 | |||||||||||||||||||
AULB | AU Optronics (Czech) s.r.o. (AUCZ) | Assembly of solar PV modules in the Czech Republic | 100.00 | 100.00 | AU Optronics Corporation America (AUUS) | Sales and sales support of TFT-LCD modules (United States) | 100.00 | 100.00 | 100.00 | ||||||||||||||
AULB | AU Optronics (Shanghai) Co., Ltd. (AUSH) | Sales support in the PRC | 100.00 | 100.00 | AU Optronics Corporation Japan (AUJP) | Sales and sales support of TFT-LCD modules (Japan) | 100.00 | 100.00 | 100.00 | ||||||||||||||
AULB | AU Optronics (Xiamen) Corp. (AUXM) | Assembly of TFT-LCD modules in the PRC | 100.00 | 100.00 | AU Optronics Europe B.V. (AUNL) | Sales support of TFT-LCD modules (Netherlands) | 100.00 | 100.00 | 100.00 | ||||||||||||||
AULB | AU Optronics (Suzhou) Corp., Ltd. (AUSZ) | Assembly of TFT-LCD modules in the PRC | 100.00 | 100.00 | AU Optronics Korea Ltd. (AUKR) | Sales support of TFT-LCD modules (South Korea) | 100.00 | 100.00 | 100.00 | ||||||||||||||
AULB | AU Optronics Manufacturing (Shanghai) Corp. (AUSJ) | Assembly of TFT-LCD modules in the PRC | 100.00 | 100.00 | AU Optronics Singapore Pte. Ltd. (AUSG) | Holding company and sales support of TFT-LCD modules (Singapore) | 100.00 | 100.00 | 100.00 | ||||||||||||||
AULB | AU Optronics (Czech) s.r.o. (AUCZ) | Assembly of solar PV modules (Czech Republic) | 100.00 | 100.00 | 100.00 | ||||||||||||||||||
AULB | AU Optronics (Shanghai) Co., Ltd. (AUSH) | Sales support of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||||||||||
AULB | AU Optronics (Xiamen) Corp. (AUXM) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 |
Percentage of Ownership (%) | |||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | ||||||||||
AULB | AU Optronics (Suzhou) Corp., Ltd. (AUSZ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Manufacturing (Shanghai) Corp. (AUSJ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics (Slovakia) s.r.o. (AUSK) | Sale and repair of TFT-LCD panels and related parts; leasing premise (Slovakia Republic) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AFPD Pte., Ltd. (AUST) | Manufacturing LCD panels based on low temperature polysilicon technology (Singapore) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | BVCH Optronics (Sichuan) Corp.(BVCH) | Assembly and sale of TFT-LCD modules (PRC) | - | (4) | 51.00 | 51.00 | |||||||||
AULB | Huizhou Bri-King Optronics Co., Ltd. (BKHZ) | Assembly and sale of TFT-LCD modules (PRC) | 51.00 | 51.00 | 51.00 | ||||||||||
AULB | AU Optronics (Kunshan) Co., Ltd. (AUKS) | Manufacturing, assembly and sale of TFT-LCD panels (PRC) | 49.00 | (1) | 49.00 | (1) | 49.00 | (1) | |||||||
AULB and BVTW | BriView (L) Corp. (BVLB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||
BVTW | Darwin Precisions (L) Corp. (DPLB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||
DPLB | Darwin Precisions (Hong Kong) Limited (DPHK) | Holding company (Hong Kong) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Suzhou) Corp. (DPSZ) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Xiamen) Corp.(DPXM) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Chengdu) Corp. (DPCD) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | (3) | 100.00 | (3) | 100.00 | ||||||||
DPHK | Darwin Precisions (Qingdao) Corp. (DPQD) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | - | (3) | 100.00 | (3) | 100.00 | ||||||||
DPHK | Darwin Precisions (Dongguan) Corp. (DPDG) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | (3) | 100.00 | (3) | 100.00 |
Percentage of Ownership (%) | ||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | |||||||||
BVLB | BriView (Kunshan) Co., Ltd. (BVKS) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | (3) | 100.00 | 100.00 | ||||||||
BVLB | BriView (Hefei) Co., Ltd. (BVHF) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
BVLB | BriView (Xiamen) Corp. (BVXM) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Energy (Suzhou) Corp. (AESZ) | Sale of solar modules (PRC) | - | - | 100.00 | (3) | ||||||||
AUSG | AUO Energy (Tianjin) Corp. (AETJ) | Design, manufacture and sale of solar modules (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Green Energy America Corp. (AEUS) | Holding company, sale and sales support of solar modules (United States) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Green Energy Europe B.V. (AENL) | Holding company and sales support of solar modules (Netherlands) | 100.00 | 100.00 | 100.00 | |||||||||
AENL | AUO Green Energy Germany GmbH (AEDE) | Sales support of solar modules (Germany) | 100.00 | (5) | 100.00 | 100.00 |
Note 1: | The Company has the power to govern or de facto control over the financial and operating policies of AUKS, although it does not own more than 50% ownership interests. As a result, AUKS is included in the Company’s consolidated financial statements. Although the Company does not own more than 50% ownership interests in Toppan CFI, through certain arrangement, the Company owns the power over relevant activities in operation, which strongly affect financial returns of Toppan CFI. Therefore, Toppan CFI is included in the Company’s consolidated financial statements. |
Note 2: | DSTW decided to commence liquidation and the dissolution date was March 4, 2013. As of December 31, 2013, the liquidation process is still in progress. |
Note 3: | Due to business structure reorganization, AESZ, DPDG, DPQD, DPCD and BVKS, respectively, decided to commence liquidation pursuant to the resolutions of their boards of directors. Except that AESZ and DPQD completed its liquidation in November 2012 and December 2013, respectively, the others’ liquidation processes are still in progress. |
Note 4: | Due to the loss of control in June 2013, BVCH was deconsolidated from AUO’s consolidated financial statements. Please refer to note 11 for further information. |
Note 5: | In October 2013, AEDE decided to commence liquidation and the dissolution date was December 31, 2013 pursuant to the resolutions of its shareholders’ meeting. |
(b) | Basis of preparation |
(1) | Basis of measurement |
(i) | Financial instruments measured at fair value through profit or loss (including derivative financial instruments) (note 7); |
(ii) | Available-for-sale financial assets are measured at fair value (note 8); |
(iii) | Hedging derivative financial instruments are measured at fair value (note 7); and |
(iv) | The defined benefit asset (liability) is recognized as the net total of the plan assets, plus unrecognized past service cost and the present value of the defined benefit obligation (note 22). |
(2) | Functional and presentation currency |
(c) | Foreign currency |
(1) | Foreign currency transactions |
(i) | Available-for-sale equity instruments; |
(ii) | Qualifying cash flow hedges. |
(2) | Foreign operations |
(d) | Classification of current and non-current assets and liabilities |
(1) | The asset expected to realize, or intends to sell or consume, in its normal operating cycle; |
(2) | The asset primarily held for the purpose of trading; |
(3) | The asset expected to realize within twelve months after the reporting date; or |
(4) | Cash and cash equivalent (as defined in IAS 7) excluding the asset restricted to be exchanged or used to settle a liability for at least twelve months after the reporting date. |
(1) | The liability expected to settle in its normal operating cycle; |
(2) | The liability primarily held for the purpose of trading; |
(3) | The liability is due to be settled within twelve months after the reporting date; or |
(4) | The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments, do not affect its classification. |
Percentage of Ownership (%) | ||||||||
Name of Investor | Subsidiary | Main Activities | December 31,2011 | December 31,2012 | ||||
AULB | AU Optronics (Slovakia) s.r.o. (AUSK) | Manufacturing, assembly and repair of TFT-LCD panels and related parts in Slovakia Republic | 100.00 | 100.00 | ||||
AULB | AFPD Pte., Ltd. (AUST) | Manufacturing LCD panels based on low temperature polysilicon technology | 100.00 | 100.00 | ||||
BVTW | Darwin Precisions (L) Corp. (DPLB) | Holding and trading company | 100.00 | 100.00 | ||||
AULB and BVTW | BriView (L) Corp. (BVLB) | Holding and trading company | 100.00 | 100.00 | ||||
AULB | BVCH Optronics (Sichuan) Corp. (BVCH) | Assembly and sale of TFT-LCD modules in the PRC | 51.00 | 51.00 | ||||
AULB | Huizhou Bri-King Optronics Co., Ltd. (BKHZ) | Assembly and sale of TFT-LCD modules in the PRC | 51.00 | 51.00 | ||||
AULB | AU Optronics (Kunshan) Co., Ltd. (AUKS) | Manufacturing, assembly and sale of TFT-LCD panels in the PRC | 49.00 | 49.00 | ||||
DPLB | Darwin Precisions (Hong Kong) Limited (DPHK) | Holding company | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Suzhou) Corp. (DPSZ) | Manufacturing and sale of TFT-LCD modules backlight modules and related parts in the PRC | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Xiamen) Corp. (DPXM) | Manufacturing and sale of TFT-LCD modules backlight modules and related parts in the PRC | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Chengdu) Corp. (DPCD) | Manufacturing and sale of TFT-LCD modules backlight modules and related parts in the PRC | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Qingdao) Corp. (DPQD) | Manufacturing and sale of TFT-LCD modules backlight modules and related parts in the PRC | 100.00 | 100.00 |
Percentage of Ownership (%) | ||||||||
Name of Investor | Subsidiary | Main Activities | December 31,2011 | December 31,2012 | ||||
DPHK | Darwin Precisions (Dongguan) Corp. (DPDG) | Manufacturing and sale of TFT-LCD modules backlight modules and related parts in the PRC | 100.00 | 100.00 | ||||
BVLB | BriView (Kunshan) Co., Ltd. (BVKS) | Manufacturing and sale of liquid crystal products, TV set and related parts | 100.00 | 100.00 | ||||
BVLB | BriView (Hefei) Co., Ltd. (BVHF) | Manufacturing and sale of liquid crystal products, TV set and related parts | 100.00 | 100.00 | ||||
BVLB | BriView (Xiamen) Corp. (BVXM) | Manufacturing and sale of liquid crystal products, TV set and related parts | 100.00 | 100.00 | ||||
AUSG | AUO Energy (Suzhou) Corp. (AESZ) | Design, manufacture and sale of solar modules | 100.00 | - | ||||
AUSG | AUO Energy (Tianjin) Corp. (AETJ) | Design, manufacture and sale of solar modules | 100.00 | 100.00 | ||||
AUSG | AUO Green Energy America Corp. (AEUS) | Holding company and sale of solar products in America | 100.00 | 100.00 | ||||
AUSG | AUO Green Energy Europe B.V. (AENL) | Holding company and sales support in Europe | 100.00 | 100.00 | ||||
AENL | AUO Green Energy Germany GmbH (AEDE) | Sales support in Europe | 100.00 | 100.00 |
(e) | Cash and cash equivalents |
(f) | Financial Instruments |
(1) | Financial assets |
(i) | Financial assets measured at fair value through profit or loss |
(ii) | Available-for-sale financial assets |
(iii) | Receivables |
(iv) | Impairment of financial assets |
(v) | De-recognition of financial assets |
(i) | Financial liabilities measured at fair value through profit or loss |
a. | Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different basis; |
b. | Performance of the financial liabilities is evaluated on a fair value basis; |
c. | Hybrid instrument contains one or more embedded derivatives. |
(iii) | De-recognition of financial liabilities |
(iv) | Offsetting of financial assets and liabilities |
(3) | Derivative financial instruments and hedge accounting |
Inventories |
(j) | Interests in jointly controlled entity |
(k) | Investment property |
Property, plant and equipment |
(2) | Reclassification to investment property |
(4) | Depreciation |
(ii) | Machinery and equipment: 3~10 years |
(iii) | Other equipment: 3~6 years |
(m) | Long-term prepaid rent |
(n) | Leases |
(1) | Lessor |
(2) | Lessee |
(o) | Intangible assets |
(1) | Goodwill |
(2) | Research and development |
(3) | Other intangible assets |
(4) | Subsequent expenditure |
(5) | Amortization |
(p) | Impairment– non-financial assets |
(q) | Provisions |
(1) | Warranties |
(2) | Decommissioning obligation |
(3) | Onerous contracts |
(4) | Loss contingencies |
(1) | Goods sold |
(2) | Government grants |
(1) | Defined contribution plans |
(2) | Defined benefit |
(1) | Current income taxes |
(2) | Deferred income taxes |
· | temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and |
(u) | Business Combinations |
Earnings (loss) per |
Operating segments |
4. |
(b) | Impairment of long-term non-financial assets, including goodwill (notes 12 and 14) |
(c) | Defined benefit obligation (note 22) |
(d) | Recognition and measurement of deferred tax assets (note 23) |
(a) | Key assumptions used in discounted cash flow projections (notes 12 and 14) |
(b) | The reliability of financial forecasts (note 12 and 14) |
(c) | Judgment in legal obligation and constructive obligation (note 20 and 22) |
5. |
IFRS 9, Financial Instruments (2010); IFRS 9, Financial Instruments (2009) |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Cash and bank deposits | 74,592,942 | 72,117,531 | 2,482,531 | |||||||||
Government bonds with reverse repurchase agreements | 16,243,726 | 5,308,160 | 182,725 | |||||||||
90,836,668 | 77,425,691 | 2,665,256 |
(ii) | Amended IAS 39, |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Noncurrent | ||||||||||||
Publicly listed equity shares | 436,774 | 235,134 | 8,094 |
(iii) | IFRIC Interpretation 21, Levies |
(iv) | IAS 19, Employee Benefits |
6. |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Non-publicly listed stocks | 1,487,795 | 1,341,890 | 46,193 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash, demand deposits and checking accounts | $ | 39,073,951 | 31,604,836 | 26,686,581 | ||||||||
Time deposits within three months maturity date | 29,369,113 | 39,742,679 | 47,122,961 | |||||||||
Government bonds with reverse repurchase agreements | 7,869,208 | 5,308,160 | 16,243,726 | |||||||||
$ | 76,312,272 | 76,655,675 | 90,053,268 |
7. | Derivative Financial Instruments and Hedging |
Derivative |
December 31, | December 31, 2013 | December 31, 2012 | January 1, 2012 | |||||||||||||||||||||
2011 | 2012 | (in thousands) | ||||||||||||||||||||||
NT$ | NT$ | US$ | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Financial assets measured at fair value-current: | ||||||||||||||||||||||||
Financial assets measured at fair value through profit or loss Current: | ||||||||||||||||||||||||
Foreign currency forward contracts | 85,621 | 23,621 | 813 | $ | 48,850 | 23,621 | 85,621 | |||||||||||||||||
Financial assets measured at fair value-noncurrent: | ||||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||
Interest rate swap contracts | 3 | - | - | $ | - | - | 3 | |||||||||||||||||
Options contracts | 172 | 66 | 2 | - | 66 | 172 | ||||||||||||||||||
175 | 66 | 2 | $ | - | 66 | 175 | ||||||||||||||||||
Financial liabilities measured at fair value-current: | ||||||||||||||||||||||||
Financial liabilities measured at fair value through profit or loss Current: | ||||||||||||||||||||||||
Foreign currency forward contracts | 17,523 | 804,001 | 27,676 | $ | 420,861 | 804,001 | 17,523 | |||||||||||||||||
Financial liabilities measured at fair value-noncurrent: | ||||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||
Interest rate swap contracts | 41 | - | - | $ | - | - | 41 | |||||||||||||||||
Options contracts | 176,185 | 54,000 | 1,859 | - | 54,000 | 176,185 | ||||||||||||||||||
176,226 | 54,000 | 1,859 | $ | - | 54,000 | 176,226 | ||||||||||||||||||
Hedging derivative financial liabilities-noncurrent: | ||||||||||||||||||||||||
Interest rate swap contracts | 198,360 | 58,547 | 2,015 |
Hedging derivative financial liabilities | ||||||||||||
Noncurrent: | ||||||||||||
Interest rate swap contracts | $ | 17,062 | 58,547 | 198,360 |
December 31, | ||||||
Contract item | Notional amount | Exercise rate/ Price range | Exercise period | |||
(in thousands) | ||||||
Foreign currency call options | USD 3,300 | JPY 109.75 | Jan. | |||
Foreign currency put options | USD 6,600 | JPY 109.75 | Jan. |
Contract item | Notional amount | Exercise rate/ Price range | Exercise period | |||
(in thousands) | ||||||
Foreign currency call options | USD 6,900 | JPY 109.75 | Jan. | |||
Foreign currency put options | USD 13,800 | JPY 109.75 | Jan. |
December 31, | ||||
Contract item | Maturity date | Contract amount | ||
(in thousands) | ||||
Sell USD / Buy JPY | Jan. 2014 – May 2014 | USD180,199 / JPY18,315,188 | ||
Sell NTD / Buy JPY | Jan. 2014 – Mar. 2014 | NTD435,439 / JPY1,496,285 | ||
Sell USD / Buy CNY | Jan. 2014 – Jun. 2014 | USD239,000 / CNY1,460,592 | ||
Sell EUR / Buy JPY | Jan. 2014 – Feb. 2014 | EUR88,000 / JPY11,976,340 | ||
Sell EUR / Buy CZK | Jan. 2014 | EUR2,600 / CZK71,162 | ||
Sell USD / Buy SGD | Jan. 2014 – Feb. 2014 | USD14,765 / SGD18,479 | ||
Sell USD / Buy MYR | Jan. 2014 – Feb. 2014 | USD1,675 / MYR5,446 |
December 31, 2012 | ||||
Contract item | Maturity date | Contract amount | ||
(in thousands) | ||||
Sell USD / Buy NTD | Jan. 2013 | USD64,000 / NTD1,858,455 | ||
Sell USD / Buy JPY | Jan. 2013 – May 2013 | USD222,000 / JPY18,259,332 | ||
Sell NTD / Buy JPY | Jan. 2013 – Apr. 2013 | NTD3,664,557 / JPY10,516,180 | ||
Sell USD / Buy CNY | Jan. 2013 – Jun. 2013 | USD194,000 / CNY1,216,328 | ||
Sell NTD / Buy USD | Jan. 2013 – Feb. 2013 | NTD6,862,600 / USD236,400 | ||
Sell JPY / Buy USD | Jan. 2013 | JPY65,850 / USD600 | ||
Sell EUR / Buy JPY | Jan. 2013 – Apr. 2013 | EUR105,000 / JPY10,898,636 | ||
Sell CZK / Buy EUR | Jan. 2013 | CZK40,448 / EUR1,600 | ||
Sell CNY / Buy USD | Jan. 2013 – Mar. 2013 | CNY162,677 / USD26,000 | ||
Sell USD / Buy SGD | �� | Jan. 2013 – Feb. 2013 | USD12,100 / SGD14,781 |
January 1, 2012 | ||||
Contract item | Maturity date | Contract amount | ||
(in thousands) | ||||
Sell USD / Buy NTD | Jan. 2012 | USD39,500 / NTD1,195,430 | ||
Sell USD / Buy JPY | Jan. 2012 – Mar. 2012 | USD310,846 / JPY24,166,935 | ||
Sell NTD / Buy JPY | Jan. 2012 – Mar. 2012 | NTD392,175 / JPY1,010,306 | ||
Sell NTD / Buy USD | Jan. 2012 | NTD181,677 / USD6,000 | ||
Sell USD / Buy CNY | Jan. 2012 – Mar. 2012 | USD71,500 / CNY454,268 | ||
Sell JPY / Buy USD | Jan. 2012 | JPY32,925 / USD600 | ||
Sell EUR / Buy JPY | Jan. 2012 – Mar. 2012 | EUR72,000 / JPY7,344,025 | ||
Sell CZK / Buy EUR | Jan. 2012 | CZK47,747 / EUR1,900 | ||
Sell USD / Buy SGD | Feb. 2012 | USD6,000 / SGD7,803 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net gain (loss) arising from foreign exchange forward contract and options contract | 4,049,932 | 669,917 | (1,260,588 | ) | (43,394 | ) | ||||||||||
Net gain (loss) arising from interest rate swap contracts | (63,849 | ) | 74,155 | - | - | |||||||||||
3,986,083 | 744,072 | (1,260,588 | ) | (43,394 | ) |
Hedge accounting |
December 31, 2013 | ||||||||
Hedged item | Hedging instrument | Fair value of hedging instrument | Expected period of cash flows | Expected period of recognition in | ||||
income | ||||||||
(in thousands) | ||||||||
Long-term borrowings with floating interest rate | Interest rate swap contracts | Jan. | Jan. |
December 31, 2012 | ||||||||
Hedged item | Hedging instrument | Fair value of hedging instrument | Expected period of cash flows | Expected period of recognition in | ||||
income | ||||||||
(in thousands) | ||||||||
Long-term borrowings with floating interest rate | Interest rate swap contracts | $ (58,547) | Jan. 2013–Sep. 2014 | Jan. 2013–Sep. 2014 |
January 1, 2012 | ||||||||
Hedged item | Hedging instrument | instrument | Expected period of cash flows | Expected period of recognition in comprehensive income | ||||
(in thousands) | ||||||||
Long-term borrowings with floating interest rate | Interest rate swap contracts | $ (198,360) | Jan. 2012–Sep. 2014 | Jan. 2012–Sep. 2014 |
8. | Available-for-sale Financial Assets-noncurrent |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Equity securities | $ | 700,730 | 1,577,024 | 1,924,569 |
Notes and |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Notes receivable | 122,361 | 66,862 | 2,302 | |||||||||
Accounts receivable | 44,917,212 | 36,688,035 | 1,262,927 | |||||||||
Less: allowance for doubtful accounts | (81,925 | ) | (68,150 | ) | (2,346 | ) | ||||||
allowance for sales returns and discounts | �� | (209,722 | ) | (329,297 | ) | (11,336 | ) | |||||
44,747,926 | 36,357,450 | 1,251,547 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Notes receivable | $ | 70,377 | 66,862 | 122,361 | ||||||||
Accounts receivable | 44,222,803 | 43,007,898 | 51,942,121 | |||||||||
Less: allowance for doubtful accounts | (63,652 | ) | (68,150 | ) | (81,925 | ) | ||||||
allowance for sales returns and discounts | (595,767 | ) | (458,081 | ) | (451,026 | ) | ||||||
$ | 43,633,761 | 42,548,529 | 51,531,531 | |||||||||
Notes and accounts receivable, net | $ | 40,600,855 | 36,357,450 | 44,747,926 | ||||||||
Receivables from related parties, net | $ | 3,032,906 | 6,191,079 | 6,783,605 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Current | $ | 41,811,006 | 35,622,852 | 43,094,120 | ||||||||
Past due 0~60 days | 1,670,551 | 6,829,065 | 7,771,668 | |||||||||
Past due 61~180 days | 139,456 | 78,066 | 569,602 | |||||||||
Past due over 180 days | 76,400 | 86,696 | 178,066 | |||||||||
$ | 43,697,413 | 42,616,679 | 51,613,456 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at beginning of the year | $ | 68,150 | 81,925 | |||||
Provisions charged to expense | 38,602 | 66,997 | ||||||
Reversals | (37,399 | ) | (72,484 | ) | ||||
Write-offs | - | (1,758 | ) | |||||
Effects of changes in foreign currency exchange rates | (5,701 | ) | (6,530 | ) | ||||
Balance at end of the year | $ | 63,652 | 68,150 |
December 31, 2011 | |||||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | |||||||
(in thousands) | |||||||||||
Taipei Fubon Bank | USD | 48,000 | - | USD | 14,604 | See notes(a)~(d) | |||||
China Trust Commercial Bank | USD | 65,000 | - | USD | 17,740 | See notes(a)~(d) | |||||
Mizuho Corporate Bank | USD | 500,000 | USD | 65,002 | USD | 65,002 | See notes(a)~(d) | ||||
The Export-Import Bank | USD | 11,000 | USD | 5,296 | USD | 5,951 | See notes(a)~(d) | ||||
First Commercial Bank | USD | 250,000 | USD | 189,019 | USD | 189,019 | See notes(a)~(d) and (f) | ||||
China Construction Bank | CNY | 100,000 | - | - | See notes(a)~(b) |
December 31, 2013 | ||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | ||||
(in thousands) | ||||||||
China Trust Commercial Bank | USD280,000 | NTD2,750,000 | USD102,782 | See notes(a)~(c) and (e) | ||||
Citi Bank | USD120,000 | - | USD80,885 | See notes(a)~(d) | ||||
Mizuho Corporate Bank | USD180,000 | USD14,139 | USD14,139 | See notes(a)~(d) | ||||
Taishin Bank | USD180,000 | NTD950,000 | USD35,372 | See notes(a)~(c) and (e) | ||||
Bank of Taiwan | USD250,000 | USD97,687 | USD107,456 | See notes(a)~(d) | ||||
EUR25,990 | EUR28,589 | |||||||
Taipei Fubon Bank | USD50,000 | NTD1,325,000 | USD49,790 | See notes(a)~(c) and (e) | ||||
E.Sun Bank | USD60,000 | USD18,863 | USD20,959 | See notes(a)~(c) and (e) | ||||
DBS Bank | USD120,000 | USD20,029 | USD20,029 | See notes(a)~(c) and (e) | ||||
First Commercial Bank | USD120,000 | USD38,646 | USD38,646 | See notes(a)~(d) and (f) | ||||
China Development Industrial Bank | USD60,000 | - | USD32,926 | See notes(a)~(d) and (f) |
December 31, 2012 | ||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | ||||
(in thousands) | ||||||||
China Trust Commercial Bank | USD200,000 | NTD3,800,000 | USD144,462 | See notes(a)~(c) and (e) | ||||
Citi Bank | USD120,000 | USD72,024 | USD82,913 | See notes(a)~(d) | ||||
Mizuho Corporate Bank | USD180,000 | USD35,020 | USD35,020 | See notes(a)~(d) | ||||
Taishin Bank | USD150,000 | NTD 850,000 | USD30,006 | See notes(a)~(c) and (e) | ||||
Bank of Taiwan | USD250,000 | USD170,000 | USD188,210 | See notes(a)~(d) | ||||
EUR60,887 | EUR69,624 | |||||||
First Commercial Bank | USD250,000 | USD71,019 | USD71,019 | See notes(a)~(d) and (f) | ||||
China Development Industrial Bank | NTD550,000 | NTD142,436 | NTD645,725 | See notes(a)~(d) and (f) |
December 31, 2012 | |||||||||||
Underwriting bank | Factoring limit | Amountadvanced | Amount sold and derecognized | Principle terms | |||||||
(in thousands) | |||||||||||
China Trust Commercial Bank | USD | 200,000 | NTD | 3,800,000 | USD | 144,462 | See notes(a)~(c) and (e) | ||||
Citi Bank | USD | 120,000 | USD | 72,024 | USD | 82,913 | See notes(a)~(d) | ||||
Mizuho Corporate Bank | USD | 180,000 | USD | 35,020 | USD | 35,020 | See notes(a)~(d) | ||||
Taishin Bank | USD | 150,000 | NTD | 850,000 | USD | 30,006 | See notes(a)~(c) and (e) | ||||
Bank of Taiwan | USD | 250,000 | USD | 170,000 | USD | 188,210 | See notes(a)~(d) | ||||
EUR | 60,887 | EUR | 69,624 | ||||||||
First Commercial Bank | USD | 250,000 | USD | 71,019 | USD | 71,019 | See notes(a)~(d) and (f) | ||||
China Development Industrial Bank | NTD | 550,000 | NTD | 142,436 | NTD | 645,725 | See notes(a)~(d) and (f) |
January 1, 2012 | ||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | ||||
(in thousands) | ||||||||
Taipei Fubon Bank | USD48,000 | - | USD14,604 | See notes(a)~(d) | ||||
China Trust Commercial Bank | USD65,000 | - | USD17,740 | See notes(a)~(d) | ||||
Mizuho Corporate Bank | USD500,000 | USD65,002 | USD65,002 | See notes(a)~(d) | ||||
The Export-Import Bank | USD11,000 | USD5,296 | USD5,951 | See notes(a)~(d) | ||||
First Commercial Bank | USD250,000 | USD189,019 | USD189,019 | See notes(a)~(d) and (f) | ||||
China Construction Bank | CNY100,000 | - | - | See notes(a)~(b) |
Note (a): | Under these facilities, the Company transferred accounts receivable to the respective underwriting banks, which |
Note (b): | The Company informed its customers pursuant to the respective facilities to make payment directly to the respective underwriting banks. |
Note (c): | As of December 31, |
Note (d): | To the extent of the amount transferred to the underwriting banks, risks of |
Note (e): | To the extent of the amount sold to the underwriting banks, risks of non-collection or default by customers in the event of insolvency are |
Note (f): | The aforementioned terms are applicable to the respective underwriting banks, and the Company |
Inventories |
December 31, | ||||||||||||||||||||||||
2011 | 2012 | |||||||||||||||||||||||
NT$ | NT$ | US$ | ||||||||||||||||||||||
(in thousands) | December 31, 2013 | December 31, 2012 | January 1, 2012 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Finished goods | 19,842,427 | 16,710,153 | 575,221 | $ | 15,244,321 | 16,710,153 | 19,842,427 | |||||||||||||||||
Work-in-progress | 20,699,320 | 17,849,827 | 614,452 | 14,372,565 | 17,849,827 | 20,699,320 | ||||||||||||||||||
Raw materials | 7,340,201 | 8,026,002 | 276,282 | 7,981,108 | 8,026,002 | 7,340,201 | ||||||||||||||||||
47,881,948 | 42,585,982 | 1,465,955 | $ | 37,597,994 | 42,585,982 | 47,881,948 |
December 31, | ||||||||||||||||||||
2011 | 2012 | |||||||||||||||||||
Ownership interest | Amount | Ownership interest | Amount | |||||||||||||||||
% | NT$ | % | NT$ | US$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
AUO SunPower Sdn. Bhd. (“AUSP”) | 50 | 3,894,560 | 50 | 3,790,739 | 130,490 | |||||||||||||||
Lextar Electronics Corp. (“Lextar”) | 43 | 3,409,067 | 42 | 3,574,410 | 123,043 | |||||||||||||||
Forhouse Corporation (“Forhouse”) | 26 | 2,808,039 | 26 | 2,617,705 | 90,110 | |||||||||||||||
Qisda Corporation (“Qisda”) | 10 | 3,326,423 | 10 | 2,364,108 | 81,381 | |||||||||||||||
Raydium Semiconductor Corporation (“Raydium”) | 15 | 515,827 | 15 | 558,560 | 19,228 | |||||||||||||||
Daxin Materials Corp. (“Daxin”) | 28 | 360,358 | 25 | 423,987 | 14,595 | |||||||||||||||
Wellypower Optronics Corporation Ltd. (“Wellypower”) | 9 | 413,470 | 9 | 180,763 | 6,222 | |||||||||||||||
Sipix Technology Inc. (“STI”) | 28 | 621,808 | - | - | - | |||||||||||||||
Others | 567,783 | 301,328 | 10,373 | |||||||||||||||||
15,917,335 | 13,811,600 | 475,442 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 9,238,504 | 10,028,442 | 11,895,620 | ||||||||
Joint ventures | 4,115,357 | 3,790,739 | 4,026,205 | |||||||||
$ | 13,353,861 | 13,819,181 | 15,921,825 |
(a) | Associates |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||||||||||||||
Ownership interest | Amount | Ownership interest | Amount | Ownership interest | Amount | |||||||||||||||||||
% | (in thousands) | % | (in thousands) | % | (in thousands) | |||||||||||||||||||
Lextar Electronics Corp. (“Lextar”) | 26 | $ | 3,081,111 | 42 | 3,565,029 | 43 | 3,400,754 | |||||||||||||||||
Forhouse Corporation (“Forhouse”) | 27 | 2,443,215 | 26 | 2,611,416 | 26 | 2,802,253 | ||||||||||||||||||
Qisda Corporation (“Qisda”) | 10 | 2,550,521 | 10 | 2,391,667 | 10 | 3,349,934 | ||||||||||||||||||
Raydium Semiconductor Corporation (“Raydium”) | 15 | 593,629 | 15 | 556,739 | 15 | 514,885 | ||||||||||||||||||
Daxin Materials Corp. (“Daxin”) | 25 | 460,229 | 25 | 422,111 | 28 | 358,719 | ||||||||||||||||||
Wellypower Optronics Corporation Ltd. (“Wellypower”) | - | - | 9 | 180,763 | 9 | 411,286 | ||||||||||||||||||
Sipix Technology Inc. (“STI”) | - | - | - | - | 28 | 621,855 | ||||||||||||||||||
Others | 109,799 | 300,717 | 435,934 | |||||||||||||||||||||
$ | 9,238,504 | 10,028,442 | 11,895,620 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Lextar | $ | 4,361,130 | 4,267,478 | 3,664,269 | ||||||||
Forhouse | 1,408,300 | 1,937,971 | 2,043,905 | |||||||||
Qisda | 1,374,438 | 1,368,813 | 1,170,054 | |||||||||
Daxin | 1,472,716 | 1,129,302 | - | |||||||||
Wellypower | - | 180,763 | 224,237 | |||||||||
$ | 8,616,584 | 8,884,327 | 7,102,465 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Current assets | $ | 76,841,831 | 74,788,434 | �� | 82,582,687 | |||||||
Noncurrent assets | 63,829,269 | 68,110,168 | 72,664,923 | |||||||||
Total assets | 140,671,100 | 142,898,602 | 155,247,610 | |||||||||
Current liabilities | 64,091,307 | 60,923,301 | 64,982,446 | |||||||||
Noncurrent liabilities | 23,979,761 | 31,236,657 | 34,519,192 | |||||||||
Total liabilities | 88,071,068 | 92,159,958 | 99,501,638 | |||||||||
Net assets | $ | 52,600,032 | 50,738,644 | 55,745,972 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | $ | 168,795,026 | 176,569,116 | |||||
Net profit (loss) | $ | 2,638,994 | (2,915,181 | ) | ||||
Other comprehensive income (loss) | $ | 4,049,767 | (575,545 | ) |
(b) | Joint ventures |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
AUO SunPower Sdn. Bhd. (“AUSP”) | $ | 4,006,593 | 3,790,739 | 3,894,560 | ||||||||
Others | 108,764 | - | 131,645 | |||||||||
$ | 4,115,357 | 3,790,739 | 4,026,205 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Current assets | $ | 4,494,503 | 8,669,669 | 8,813,358 | ||||||||
Noncurrent assets | 22,155,684 | 19,628,906 | 21,995,637 | |||||||||
Total assets | 26,650,187 | 28,298,575 | 30,808,995 | |||||||||
Current liabilities | 7,925,470 | 2,715,063 | 4,505,492 | |||||||||
Noncurrent liabilities | 12,694,972 | 19,153,708 | 19,176,371 | |||||||||
Total liabilities | 20,620,442 | 21,868,771 | 23,681,863 | |||||||||
Net assets | $ | 6,029,745 | 6,429,804 | 7,127,132 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | $ | 10,129,676 | 10,621,369 | |||||
Net profit | $ | 415,174 | 102,402 | |||||
Other comprehensive income | $ | - | 11,866 |
12. | Property, Plant and Equipment |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Net carrying amounts: | ||||||||||||
Land | $ | 7,556,116 | 8,516,638 | 8,899,614 | ||||||||
Buildings | 99,233,949 | 100,986,291 | 102,447,476 | |||||||||
Machinery and equipment | 138,871,520 | 175,804,026 | 214,340,373 | |||||||||
Other equipment | 5,188,373 | 5,962,502 | 5,715,693 | |||||||||
Prepayments for purchase of land and equipment, and construction in progress | 19,419,049 | 24,248,760 | 27,957,746 | |||||||||
$ | 270,269,007 | 315,518,217 | 359,360,902 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Current assets | 4,412,015 | 4,335,692 | 149,249 | |||||||||
Non–current assets | 10,999,893 | 9,814,646 | 337,854 | |||||||||
Current liabilities | 2,254,953 | 1,358,325 | 46,758 | |||||||||
Non–current liabilities | 9,588,185 | 9,576,854 | 329,668 | |||||||||
Revenues | 4,522,873 | 5,399,789 | 185,879 | |||||||||
Expenses | 4,808,604 | 5,349,288 | 184,141 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Lextar | 3,664,269 | 4,267,478 | 146,901 | |||||||||
Forhouse | 2,043,905 | 1,937,971 | 66,712 | |||||||||
Qisda | 1,170,054 | 1,368,813 | 47,119 | |||||||||
Daxin | - | 1,129,302 | 38,874 | |||||||||
Wellypower | 224,237 | 180,763 | 6,223 | |||||||||
7,102,465 | 8,884,327 | 305,829 |
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of disposal of subsidiaries | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Land | $ | 8,678,182 | - | (41,471 | ) | - | (959,028 | ) | 7,677,683 | |||||||||||||||
Buildings | 126,351,407 | 92,407 | (28,783 | ) | - | 1,687,588 | 128,102,619 | |||||||||||||||||
Machinery and equipment | 766,254,302 | 3,228,421 | (3,902,329 | ) | (114,549 | ) | 13,961,962 | 779,427,807 | ||||||||||||||||
Other equipment | 39,238,456 | 3,303,448 | (6,374,720 | ) | (188,288 | ) | 1,983,097 | 37,961,993 | ||||||||||||||||
940,522,347 | 6,624,276 | (10,347,303 | ) | (302,837 | ) | 16,673,619 | 953,170,102 | |||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||
Land | 161,544 | - | - | - | (39,977 | ) | 121,567 | |||||||||||||||||
Buildings | 25,365,116 | 3,585,528 | (28,009 | ) | - | (53,965 | ) | 28,868,670 | ||||||||||||||||
Machinery and equipment | 590,450,276 | 54,044,997 | (3,761,872 | ) | (68,239 | ) | (108,875 | ) | 640,556,287 | |||||||||||||||
Other equipment | 33,275,954 | 5,282,152 | (6,218,961 | ) | (124,525 | ) | 559,000 | 32,773,620 | ||||||||||||||||
649,252,890 | 62,912,677 | (10,008,842 | ) | (192,764 | ) | 356,183 | 702,320,144 | |||||||||||||||||
Prepayments for purchase of land and equipment, and construction in progress | 24,248,760 | 11,727,517 | (178,307 | ) | - | (16,378,921 | ) | 19,419,049 | ||||||||||||||||
Net carrying amounts | $ | 315,518,217 | 270,269,007 |
For the year ended December 31, 2012 | ||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of disposal of subsidiaries | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Land | $ | 8,899,614 | 1,448 | (68 | ) | - | (222,812 | ) | 8,678,182 | |||||||||||||||
Buildings | 124,039,128 | 1,390,023 | (13,119 | ) | - | 935,375 | 126,351,407 | |||||||||||||||||
Machinery and equipment | 748,342,262 | 9,893,362 | (7,578,334 | ) | - | 15,597,012 | 766,254,302 | |||||||||||||||||
Other equipment | 41,469,424 | 3,497,182 | (7,267,374 | ) | - | 1,539,224 | 39,238,456 | |||||||||||||||||
922,750,428 | 14,782,015 | (14,858,895 | ) | - | 17,848,799 | 940,522,347 | ||||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||
Land | - | 175,676 | - | - | (14,132 | ) | 161,544 | |||||||||||||||||
Buildings | 21,591,652 | 4,168,791 | (8,665 | ) | - | (386,662 | ) | 25,365,116 | ||||||||||||||||
Machinery and equipment | 534,001,889 | 65,719,053 | (7,150,538 | ) | - | (2,120,128 | ) | 590,450,276 | ||||||||||||||||
Other equipment | 35,753,731 | 7,431,633 | (7,228,443 | ) | - | (2,680,967 | ) | 33,275,954 | ||||||||||||||||
591,347,272 | 77,495,153 | (14,387,646 | ) | - | (5,201,889 | ) | 649,252,890 | |||||||||||||||||
Prepayments for purchase of land and equipment, and construction in progress | 27,957,746 | 23,986,337 | - | - | (27,695,323 | ) | 24,248,760 | |||||||||||||||||
Net carrying amounts | $ | 359,360,902 | 315,518,217 |
For the year ended December 31, 2011 | ||||||||||||||||||||
Beginning balance | Additions | Adjustments | Amortization or realization | Ending balance | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Amortizable assets | 574,792 | - | 10,533 | (116,035 | ) | 469,290 | ||||||||||||||
Goodwill | 1,607,536 | 2,638 | (17,298 | ) | - | 1,592,876 | ||||||||||||||
Other assets | 158,165 | - | 19,670 | - | 177,835 | |||||||||||||||
2,340,493 | 2,638 | 12,905 | (116,035 | ) | 2,240,001 |
For the year ended December 31, 2012 | ||||||||||||||||||||||||
Beginning balance | Additions (deductions) | Adjustments | Amortization or realization | Ending balance | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Amortizable assets | 469,290 | - | 14,678 | (189,477 | ) | 294,491 | 10,137 | |||||||||||||||||
Goodwill | 1,592,876 | (956,571 | ) | 12,504 | - | 648,809 | 22,334 | |||||||||||||||||
Other assets | 177,835 | (280,845 | ) | - | 17,685 | (85,325 | ) | (2,937 | ) | |||||||||||||||
2,240,001 | (1,237,416 | ) | 27,182 | (171,792 | ) | 857,975 | 29,534 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Cost: | ||||||||||||
Land | 478,214 | 478,214 | 16,462 | |||||||||
Buildings | 545,231 | 545,231 | 18,769 | |||||||||
Machinery | 17,251,275 | 28,394,355 | 977,430 | |||||||||
Other equipment | 1,432,618 | 2,123,528 | 73,099 | |||||||||
19,707,338 | 31,541,328 | 1,085,760 | ||||||||||
Less: accumulated depreciation | (17,253,478 | ) | (28,208,226 | ) | (971,023 | ) | ||||||
2,453,860 | 3,333,102 | 114,737 | ||||||||||
Less: allowance for devaluation of idle assets | (756,245 | ) | (968,299 | ) | (33,332 | ) | ||||||
1,697,615 | 2,364,803 | 81,405 |
For the years ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Buildings | 288,879 | 30,232 | 90,064 | 3,100 | ||||||||||||
Machinery and equipment | 604,173 | 474,529 | 226,023 | 7,781 | ||||||||||||
893,052 | 504,761 | 316,087 | 10,881 |
13. | Investment Property |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Net carrying amounts: | ||||||||||||
Land | $ | 836,960 | 836,960 | 836,960 | ||||||||
Buildings | 418,254 | 428,624 | 438,994 | |||||||||
$ | 1,255,214 | 1,265,584 | 1,275,954 |
For the year ended December 31, 2013 | ||||||||||||
Balance, Beginning of Year | Additions | Balance, End of Year | ||||||||||
(in thousands) | ||||||||||||
Cost: | ||||||||||||
Land | $ | 836,960 | - | 836,960 | ||||||||
Buildings | 544,421 | - | 544,421 | |||||||||
1,381,381 | - | 1,381,381 | ||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||
Buildings | 115,797 | 10,370 | 126,167 | |||||||||
Net carrying amounts | $ | 1,265,584 | 1,255,214 | |||||||||
Fair Value | $ | 1,461,855 | 2,406,058 |
For the year ended December 31, 2012 | ||||||||||||
Balance, Beginning of Year | Additions | Balance, End of Year | ||||||||||
(in thousands) | ||||||||||||
Cost: | ||||||||||||
Land | $ | 836,960 | - | 836,960 | ||||||||
Buildings | 544,421 | - | 544,421 | |||||||||
1,381,381 | - | 1,381,381 | ||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||
Buildings | 105,427 | 10,370 | 115,797 | |||||||||
Net carrying amounts | $ | 1,275,954 | 1,265,584 | |||||||||
Fair value | $ | 1,502,640 | 1,461,855 |
Intangible Assets |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Net carrying amounts: | ||||||||||||
Goodwill | $ | - | - | 175,581 | ||||||||
Patent and technology fee | 4,432,542 | 3,652,303 | 3,971,926 | |||||||||
$ | 4,432,542 | 3,652,303 | 4,147,507 |
For the year ended December 31, 2011 | For the year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Beginning balance | Additions | Adjustments | Amortization | Ending balance | Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | (in thousands) | |||||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 175,581 | - | - | - | 175,581 | ||||||||||||||||||||||||||||||||||
Patent and technology fee | 9,659,452 | 1,654,318 | (11,419 | ) | 3,787 | 11,306,138 | ||||||||||||||||||||||||||||||||||
(in thousands) | 9,835,033 | 1,654,318 | (11,419 | ) | 3,787 | 11,481,719 | ||||||||||||||||||||||||||||||||||
Accumulated amortization and impairment loss: | ||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,454,512 | - | 1,664 | - | 11,456,176 | 175,581 | - | - | - | 175,581 | ||||||||||||||||||||||||||||||
Technology-related fees | 2,607,455 | 1,944,361 | (3,211 | ) | (576,679 | ) | 3,971,926 | |||||||||||||||||||||||||||||||||
Patent and technology fee | 6,007,149 | 874,233 | (11,419 | ) | 3,633 | 6,873,596 | ||||||||||||||||||||||||||||||||||
14,061,967 | 1,944,361 | (1,547 | ) | (576,679 | ) | 15,428,102 | 6,182,730 | 874,233 | (11,419 | ) | 3,633 | 7,049,177 | ||||||||||||||||||||||||||||
Net carrying amounts | $ | 3,652,303 | 4,432,542 |
For the year ended December 31, 2012 | |||||||||||||||||||||||||
Beginning balance | Additions (deductions) | Adjustments | Amortization | Ending balance | |||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Goodwill | 11,456,176 | (175,581 | ) | - | - | 11,280,595 | 388,316 | ||||||||||||||||||
Technology-related fees | 3,971,926 | 445,292 | 52 | (764,967 | ) | 3,652,303 | 125,725 | ||||||||||||||||||
15,428,102 | 269,711 | 52 | (764,967 | ) | 14,932,898 | 514,041 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Short-term borrowings | 7,850,793 | 8,620,050 | 296,731 | |||||||||
Unused facility | 23,901,952 | 21,147,309 | 727,962 |
For the year ended December 31, 2012 | ||||||||||||||||||||
Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
Goodwill | $ | 175,581 | - | - | - | 175,581 | ||||||||||||||
Patent and technology fee | 9,214,031 | 445,292 | - | 129 | 9,659,452 | |||||||||||||||
9,389,612 | 445,292 | - | 129 | 9,835,033 | ||||||||||||||||
Accumulated amortization and impairment loss: | ||||||||||||||||||||
Goodwill | - | 175,581 | - | - | 175,581 | |||||||||||||||
Patent and technology fee | 5,242,105 | 764,976 | - | 68 | 6,007,149 | |||||||||||||||
5,242,105 | 940,557 | - | 68 | 6,182,730 | ||||||||||||||||
Net carrying amounts | $ | 4,147,507 | 3,652,303 |
Other Assets |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Refundable and overpaid tax | $ | 3,142,553 | 3,030,402 | 2,477,953 | ||||||||
Long-term prepaid rents | 2,034,542 | 1,960,446 | 2,065,934 | |||||||||
Prepayments for purchases | 1,203,100 | 1,215,718 | 1,435,237 | |||||||||
Refundable deposits | 140,386 | 5,075,980 | 5,183,039 | |||||||||
Others | 1,958,250 | 2,354,948 | 1,911,374 | |||||||||
8,478,831 | 13,637,494 | 13,073,537 | ||||||||||
Less: current | (4,336,937 | ) | (9,599,504 | ) | (8,490,013 | ) | ||||||
Noncurrent | $ | 4,141,894 | 4,037,990 | 4,583,524 |
16. | Short-term Borrowings |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Unsecured borrowings | $ | 3,457,174 | 8,620,050 | 7,850,793 | ||||||||
Unused facility | $ | 24,271,139 | 21,147,309 | 23,901,952 | ||||||||
Interest rate | 1.06%~ 2.31% | 1.04%~ 2.00% | 1.20%~ 7.93% |
17. | Bonds Payable |
January 1, 2012 | ||||
(in thousands) | ||||
Secured bonds payable | $ | 3,500,000 | ||
Unsecured bonds payable | 64,383 | |||
3,564,383 | ||||
Less: current portion | (3,564,383 | ) | ||
Noncurrent | $ | - | ||
For the year ended December 31, 2012 | ||||
Interest expense | $ | 65,467 |
Secured Bond 4 | ||
Issuer | AUO | |
Par value | NT$7,000,000 thousand | |
Issue date | Aug. 22, 2008 | |
Issue price | At par value | |
Coupon rate | Fixed rate 2.90% | |
Duration | Aug. 22, 2008 –Aug. 22, 2012 | |
Bank that provided guarantee | Mizuho Corporate Bank and three other banks | |
Redemption | As stated below |
Unsecured Bond 2 | Unsecured Bond 3 | ||
Issuer | M. Setek | M. Setek | |
Par value | JPY900,000 thousand | JPY900,000 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 |
Convertible Bonds Payable |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Par value of ECB 4 | $ | 24,840,000 | 24,840,000 | 24,840,000 | ||||||||
Unamortized discount | (63,734 | ) | (116,720 | ) | (158,377 | ) | ||||||
Accrued interest payable | 1,707,610 | 1,319,370 | 738,628 | |||||||||
Accumulated purchase amount | (6,365,250 | ) | (3,105,000 | ) | (3,105,000 | ) | ||||||
Effect of change in exchange rates | (604,806 | ) | (1,339,567 | ) | (528,123 | ) | ||||||
Convertible bonds payable | $ | 19,513,820 | 21,598,083 | 21,787,128 | ||||||||
Embedded derivative- conversion rights classified as fair value recognized through profit or loss | $ | - | - | - |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest expense (including amortization of discount) | $ | 641,437 | 659,836 |
December 31, | |||||||||||||
2011 | 2012 | ||||||||||||
ECB 4 | ECB 4 | ||||||||||||
NT$ | NT$ | US$ | |||||||||||
(in thousands) | |||||||||||||
Convertible bonds payable | 21,787,128 | 21,598,083 | 743,480 |
Conversion method | Bondholders may, at any time from 41 days after issuance to 10 days before maturity, convert ECB4 into common shares or ADSs of the Company. | |
Conversion price | Original price at NT$40.74. The conversion price was adjusted to NT$39.90 as a result of earnings distributions, as approved by | |
Exchange rate | US$:NT$ exchange rate of NT$30.778 / US$1.00 |
Redemption terms | 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 (redemption rate on maturity is 2.875%, calculated semi-annually). | |
(a) | 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. | |
(b) | 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. | |
(c) | 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. | |
Repurchase terms | (a) | 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). |
(b) | Bondholders bear the right to request AUO to repurchase bonds, in whole or in part, at the early redemption amount 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. |
Long-term Borrowings |
December 31, | ||||||||||||||
Bank or agent bank | Durations | 2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||||
(in thousands) | ||||||||||||||
Syndicated loans: | ||||||||||||||
Bank of Taiwan and twenty-two other banks | From Dec. 29, 2009 to Oct. 15, 2016 | 58,000,000 | 51,600,800 | 1,776,275 | ||||||||||
Bank of Taiwan and thirty-five other banks | From Sep. 13, 2006 to Sep. 13, 2014 | 31,996,800 | 21,331,200 | 734,293 | ||||||||||
Mega International Commercial Bank and fifteen other banks | From Jan. 19, 2010 to Jan. 19, 2015 | 27,000,000 | 19,080,000 | 656,799 | ||||||||||
Bank of Taiwan and twenty-eight other banks | From Sep. 30, 2011 to Sep. 30, 2016 | 12,000,000 | 45,000,000 | 1,549,053 | ||||||||||
Credit Agricole Corporate and Investment Bank and ten other banks | From Nov. 2010 to Nov. 2015 | 10,904,400 | 10,485,360 | 360,942 | ||||||||||
Mega International Commercial Bank and twenty-one other banks | From Jul. 14, 2006 to Jul. 14, 2013 | 10,800,000 | 5,400,000 | 185,886 | ||||||||||
Bank of Taiwan and twenty-seven other banks | From Dec. 29, 2005 to Dec. 29, 2012 | 8,221,400 | - | - | ||||||||||
Mizuho Corporate Bank and eight other banks | From Jun. 27, 2011 to Jun. 27, 2016 | 7,804,000 | 11,840,500 | 407,590 | ||||||||||
Mizuho Corporate Bank and seven other banks | From Jun. 27, 2011 to Jun. 27, 2016 | 6,828,500 | 6,766,000 | 232,909 | ||||||||||
ABN-AMRO Bank and twenty-one other banks | From Aug. 2, 2006 to Aug. 2, 2013 | 4,779,194 | 2,543,434 | 87,554 | ||||||||||
First Bank and five other banks | From Feb. 10, 2012 to Feb. 10, 2017 | - | 4,400,000 | 151,463 | ||||||||||
Unsecured loans | From Mar. 2007 to Nov. 28, 2017 | 14,214,885 | 10,647,559 | 366,525 | ||||||||||
Mortgage loans | From Feb. 28, 2006 to Nov. 2015 | 6,407,890 | 3,813,559 | 131,276 | ||||||||||
198,957,069 | 192,908,412 | 6,640,565 | ||||||||||||
Less: current portion | (42,868,289 | ) | (45,490,589 | ) | (1,565,941 | ) | ||||||||
156,088,780 | 147,417,823 | 5,074,624 | ||||||||||||
Unused credit facility | 45,881,909 | 7,232,213 | 248,957 | |||||||||||
Interest rate range | 0.645%~ 7.935% | 0.658%~ 7.315% |
NT$ | US$ | |||||||
(in thousands) | ||||||||
2013 | 45,490,589 | 1,565,941 | ||||||
2014 | 60,902,594 | 2,096,475 | ||||||
2015 | 45,268,005 | 1,558,279 | ||||||
2016 | 39,127,792 | 1,346,912 | ||||||
Thereafter | 2,119,432 | 72,958 | ||||||
Total | 192,908,412 | 6,640,565 |
Bank or agent bank | Durations | December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||||
Syndicated loans: | ||||||||||||||
Bank of Taiwan and others | From Dec. 2009 to Oct. 2016 | $ | 38,813,100 | 51,600,800 | 58,000,000 | |||||||||
Bank of Taiwan and others | From Sep. 2011 to Sep. 2016 | 44,878,550 | 45,000,000 | 12,000,000 | ||||||||||
Bank of Taiwan and others | From Sep. 2006 to Sep. 2014 | 10,665,600 | 21,331,200 | 31,996,800 | ||||||||||
Mega International Commercial Bank and others | From Jan. 2010 to Jan. 2014 | 11,211,980 | 19,080,000 | 27,000,000 | ||||||||||
Mizuho Corporate Bank and others | From Jun. 2011 to Jun. 2016 | 9,996,000 | 11,840,500 | 7,804,000 | ||||||||||
Credit Agricole Corporate and Investment Bank and others | From Nov. 2010 to Nov. 2015 | 8,648,640 | 10,485,360 | 10,904,400 | ||||||||||
Mizuho Corporate Bank and others | From Jun. 2011 to Jun. 2016 | 5,712,000 | 6,766,000 | 6,828,500 | ||||||||||
Mega International Commercial Bank and others | From Jul. 2006 to Jul. 2013 | - | 5,400,000 | 10,800,000 | ||||||||||
First Bank and others | From Feb. 2012 to Feb. 2017 | 4,770,000 | 4,400,000 | - | ||||||||||
ABN-AMRO Bank and others | From Aug. 2006 to Aug. 2013 | - | 2,543,434 | 4,779,194 | ||||||||||
Bank of Taiwan and others | From Feb. 2013 to Aug. 2017 | 17,300,000 | - | - | ||||||||||
Bank of Taiwan and others | From Dec. 2005 to Dec. 2012 | - | - | 8,221,400 | ||||||||||
Unsecured loans | From Mar. 2007 to Dec. 2018 | 6,654,601 | 10,647,559 | 14,214,885 | ||||||||||
Mortgage loans | From Feb. 2006 to Aug. 2020 | 3,347,506 | 3,813,559 | 6,407,890 | ||||||||||
$ | 161,997,977 | 192,908,412 | 198,957,069 | |||||||||||
Less: transaction costs | (260,802 | ) | - | - | ||||||||||
161,737,175 | 192,908,412 | 198,957,069 | ||||||||||||
Less: current portion | (62,763,024 | ) | (45,490,589 | ) | (42,868,289 | ) | ||||||||
$ | 98,974,151 | 147,417,823 | 156,088,780 | |||||||||||
Unused credit facility | $ | 34,653,389 | 7,232,213 | 45,881,909 | ||||||||||
Interest rate range | 1.40%~ 6.77% | 0.658%~ 7.315% | 0.645%~ 7.935% |
20. | Provisions |
Warranties | Litigation and claims | Others | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2012 | $ | 2,685,337 | 23,812,513 | 92,432 | 26,590,282 | |||||||||||
Additions | 648,785 | 6,879,138 | 173,683 | 7,701,606 | ||||||||||||
Usage | (547,503 | ) | (4,117,800 | ) | - | (4,665,303 | ) | |||||||||
Reversals | (104,798 | ) | (223,895 | ) | - | (328,693 | ) | |||||||||
Effect of change in exchange rate | (1,098 | ) | (181,901 | ) | (3,552 | ) | (186,551 | ) | ||||||||
Balance at December 31, 2012 | 2,680,723 | 26,168,055 | 262,563 | 29,111,341 | ||||||||||||
Less: current | (1,566,426 | ) | (18,886,555 | ) | - | (20,452,981 | ) | |||||||||
Noncurrent | $ | 1,114,297 | 7,281,500 | 262,563 | 8,658,360 | |||||||||||
Balance at January 1, 2013 | $ | 2,680,723 | 26,168,055 | 262,563 | 29,111,341 | |||||||||||
Additions | 348,608 | 3,458,751 | - | 3,807,359 | ||||||||||||
Usage | (353,633 | ) | (21,226,890 | ) | - | (21,580,523 | ) | |||||||||
Reversals | (152,824 | ) | - | - | (152,824 | ) | ||||||||||
Effect of change in exchange rate | 1,261 | 278,754 | 8,149 | 288,164 | ||||||||||||
Balance at December 31, 2013 | 2,524,135 | 8,678,670 | 270,712 | 11,473,517 | ||||||||||||
Less: current | (1,531,807 | ) | (4,812,307 | ) | - | (6,344,114 | ) | |||||||||
Noncurrent | $ | 992,328 | 3,866,363 | 270,712 | 5,129,403 | |||||||||||
Current | $ | 1,594,308 | 23,812,513 | - | 25,406,821 | |||||||||||
Noncurrent | 1,091,029 | - | 92,432 | 1,183,461 | ||||||||||||
Balance at January 1, 2012 | $ | 2,685,337 | 23,812,513 | 92,432 | 26,590,282 |
Provisions for warranties |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Benefit obligation: | ||||||||||||
Vested benefit obligation | (15,137 | ) | (21,106 | ) | (727 | ) | ||||||
Non-vested benefit obligation | (862,317 | ) | (1,086,008 | ) | (37,384 | ) | ||||||
Accumulated benefit obligation | (877,454 | ) | (1,107,114 | ) | (38,111 | ) | ||||||
Additional benefits based on future salary increase | (968,612 | ) | (1,172,807 | ) | (40,372 | ) | ||||||
Projected benefit obligation | (1,846,066 | ) | (2,279,921 | ) | (78,483 | ) | ||||||
Fair value of plan assets | 1,500,839 | 1,599,329 | 55,054 | |||||||||
Funded status | (345,227 | ) | (680,592 | ) | (23,429 | ) | ||||||
Unrecognized net transition obligation | 5,630 | 4,672 | 161 | |||||||||
Unrecognized pension loss | 872,502 | 1,257,125 | 43,275 | |||||||||
Prepaid pension assets | 532,905 | 581,205 | 20,007 |
(b) | Provisions for litigation and claims |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Benefit obligation: | ||||||||||||
Vested benefit obligation | (92,690 | ) | (105,543 | ) | (3,633 | ) | ||||||
Non-vested benefit obligation | (17,433 | ) | (9,367 | ) | (323 | ) | ||||||
Accumulated benefit obligation | (110,123 | ) | (114,910 | ) | (3,956 | ) | ||||||
Additional benefits based on future salary increase | - | - | - | |||||||||
Projected benefit obligation | (110,123 | ) | (114,910 | ) | (3,956 | ) | ||||||
Fair value of plan assets | - | - | - | |||||||||
Funded status | (110,123 | ) | (114,910 | ) | (3,956 | ) | ||||||
Pension liabilities | (110,123 | ) | (114,910 | ) | (3,956 | ) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Defined benefit pension plan: | ||||||||||||||||
Service cost | 33,148 | 32,126 | 23,098 | 795 | ||||||||||||
Interest cost | 31,996 | 37,475 | 38,967 | 1,341 | ||||||||||||
Expected return on plan assets | (28,435 | ) | (28,459 | ) | (30,017 | ) | (1,033 | ) | ||||||||
Amortization | 18,594 | 34,526 | 33,906 | 1,167 | ||||||||||||
Net periodic pension cost | 55,303 | 75,668 | 65,954 | 2,270 |
December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Discount rate | 2.00% – 2.25% | 1.75% – 2.00% | 0.594% – 1.75% | |||||||||
Rate of increase in future compensation levels | 1.20% – 5.55% | 1.20% – 5.55% | 1.19% – 3.00% | |||||||||
Expected long-term rate of return on plan assets | 0.75% – 2.00% | 0.75% – 2.00% | 0.00% – 1.75% |
(a) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
Current income tax expense | 1,732,649 | 680,686 | 966,658 | 33,276 | ||||||||||||
Deferred income tax benefit | (544,755 | ) | (4,885,765 | ) | (330,236 | ) | (11,368 | ) | ||||||||
1,187,894 | (4,205,079 | ) | 636,422 | 21,908 |
For the year ended December 31, | |||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||
NT$ | NT$ | NT$ | US$ | ||||||||||||||
(in thousands) | |||||||||||||||||
Expected income tax expense (benefit) | 1,461,317 | (11,160,862 | ) | (9,395,999 | ) | (323,442 | ) | ||||||||||
Decrease in investment tax credits, including tax credits expired (see Note 19(d)) | 4,250,789 | 752,041 | 6,662,508 | 229,346 | |||||||||||||
Effect of different tax rate of subsidiaries | 82,732 | (2,040,199 | ) | (3,876,057 | ) | (133,427 | ) |
For the year ended December 31, | |||||||||||||||||
2010 | 2011 | 2012 | |||||||||||||||
NT$ | NT$ | NT$ | US$ | ||||||||||||||
(in thousands) | |||||||||||||||||
Tax on undistributed retained earnings | 63,852 | 65,656 | 64,031 | 2,204 | |||||||||||||
Increase (decrease) in valuation allowance | (5,063,222 | ) | 7,867,649 | 4,626,319 | 159,254 | ||||||||||||
Effect of changes in statutory income tax rate | 1,176,427 | 544,351 | 172,942 | 5,953 | |||||||||||||
Permanent differences | (761,324 | ) | (319,475 | ) | 1,619,548 | 55,750 | |||||||||||
Others | (22,677 | ) | 85,760 | 763,130 | 26,270 | ||||||||||||
Income tax expense (benefit) | 1,187,894 | (4,205,079 | ) | 636,422 | 21,908 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Investment tax credits | 6,705,473 | 2,693,740 | 92,728 | |||||||||
Net operating loss carryforwards | 51,174 | 24,800 | 854 | |||||||||
Unrealized losses and expenses | 3,915,517 | 2,531,706 | 87,150 | |||||||||
Timing differences of revenue recognition between accounting and tax reporting | 364,694 | 646,223 | 22,245 | |||||||||
Inventories devaluation | 1,196,603 | 735,483 | 25,318 | |||||||||
Others | 397,338 | 235,700 | 8,113 | |||||||||
12,630,799 | 6,867,652 | 236,408 | ||||||||||
Valuation allowance | (10,326,641 | ) | (5,203,857 | ) | (179,134 | ) | ||||||
Net deferred tax assets—current | 2,304,158 | 1,663,795 | 57,274 | |||||||||
Noncurrent: | ||||||||||||
Investment tax credits | 6,863,058 | 4,213,484 | 145,043 | |||||||||
Net operating loss carryforwards | 17,917,187 | 26,833,961 | 923,716 | |||||||||
Foreign investment gains under the equity method | (265,375 | ) | (333,543 | ) | (11,482 | ) | ||||||
Goodwill | (1,042,495 | ) | (1,219,110 | ) | (41,966 | ) | ||||||
Others | 2,745,749 | 6,850,560 | 235,820 | |||||||||
26,218,124 | 36,345,352 | 1,251,131 | ||||||||||
Valuation allowance | (15,154,023 | ) | (24,003,461 | ) | (826,281 | ) | ||||||
Net deferred tax assets—noncurrent | 11,064,101 | 12,341,891 | 424,850 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Total gross deferred tax assets | 40,708,712 | 45,466,831 | 1,565,123 | |||||||||
Total gross deferred tax liabilities | (1,859,789 | ) | (2,253,827 | ) | (77,584 | ) | ||||||
Total valuation allowance | (25,480,664 | ) | (29,207,318 | ) | (1,005,415 | ) | ||||||
13,368,259 | 14,005,686 | 482,124 |
Year of assessment | Unused investment tax credits | Expiration year | ||||||||||
NT$ | US$ | |||||||||||
(in thousands) | ||||||||||||
2009 | 2,693,740 | 92,728 | 2013 | |||||||||
2010 | 2,758,033 | 94,941 | 2014 | |||||||||
2011 | 73,518 | 2,531 | 2015 | |||||||||
5,525,291 | 190,200 |
Year of assessment | Unused NOL | Expiration year | ||||||||||
NT$ | US$ | |||||||||||
(in thousands) | ||||||||||||
2006 | 227,430 | 7,829 | 2016 | |||||||||
2007 | 193,745 | 6,669 | 2017 | |||||||||
2008 | 64,151 | 2,208 | 2018 | |||||||||
2009 | 30,047,723 | 1,034,345 | 2014~2019 | |||||||||
2010 | 2,495,936 | 85,919 | 2015~2020 | |||||||||
2011 | 55,522,856 | 1,911,286 | 2016~2021 | |||||||||
2012 (estimated) | 55,288,893 | 1,903,232 | 2017~2022 | |||||||||
143,840,734 | 4,951,488 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Unappropriated earnings (accumulated deficits): | ||||||||||||
Earned in 1998 and thereafter | (18,347,855 | ) | (54,614,704 | ) | (1,880,024 | ) | ||||||
ICA balance | 5,148,354 | 5,307,823 | 182,713 |
For the year ended December 31, | |||
2011 | 2012 | ||
(actual) | (estimated) | ||
Creditable ratio for earnings distribution to Republic of China resident stockholders | - | - |
For the year ended December 31, | ||||||||||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||||||||||
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) | 7,447,409 | 6,692,657 | (65,585,890 | ) | (61,263,814 | ) | (54,119,004 | ) | (54,614,704 | ) | ||||||||||||||
Weighted-average number of shares outstanding during the year | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | ||||||||||||||||||
Basic EPS (NT$): | ||||||||||||||||||||||||
Basic EPS—net income (loss) | 0.84 | 0.76 | (7.43 | ) | (6.94 | ) | (6.13 | ) | (6.19 | ) |
For the year ended December 31, | ||||||||||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||||||||||
Pre-tax | After tax | Pre-tax | After tax | Pre-tax | After tax | |||||||||||||||||||
NT$ | 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 (loss) attributable to equity holders of the parent company | 7,447,409 | 6,692,657 | (65,585,890 | ) | (61,263,814 | ) | (54,119,004 | ) | (54,614,704 | ) | ||||||||||||||
Effects of potential common stock: | ||||||||||||||||||||||||
Convertible bonds payable | (507,514 | ) | (421,237 | ) | - | - | - | - | ||||||||||||||||
6,939,895 | 6,271,420 | (65,585,890 | ) | (61,263,814 | ) | (54,119,004 | ) | (54,614,704 | ) | |||||||||||||||
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 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | ||||||||||||||||||
Effects of potential common stock: | ||||||||||||||||||||||||
Convertible bonds payable | 132,467 | 132,467 | - | - | - | - | ||||||||||||||||||
Employee bonuses | 31,027 | 31,027 | - | - | - | - | ||||||||||||||||||
8,990,540 | 8,990,540 | 8,827,046 | 8,827,046 | 8,827,046 | 8,827,046 | |||||||||||||||||||
Diluted EPS (NT$) | 0.77 | 0.70 | (7.43 | ) | (6.94 | ) | (6.13 | ) | (6.19 | ) |
December 31, 2011 | ||||||||
Carrying amount | Fair value | |||||||
NT$ | NT$ | |||||||
(in thousands) | ||||||||
Financial assets: | ||||||||
Foreign currency forward contracts | 85,621 | 85,621 | ||||||
Options contracts | 172 | 172 | ||||||
Available-for-sale financial assets-noncurrent | 436,774 | 436,774 | ||||||
Interest rate swap contracts | 3 | 3 | ||||||
Refundable deposits | 404,751 | 404,751 | ||||||
Financial liabilities: | ||||||||
Long-term borrowings (including current portion) | 198,957,069 | 198,957,069 | ||||||
Convertible bonds payable | 21,787,128 | 21,787,128 | ||||||
Bonds payable (including current portion) | 3,564,383 | 3,638,651 | ||||||
Foreign currency forward contracts | 17,523 | 17,523 | ||||||
Interest rate swap contracts | 198,401 | 198,401 | ||||||
Options contracts | 176,185 | 176,185 |
December 31, 2012 | ||||||||||||||||
Carrying amount | Fair value | |||||||||||||||
NT$ | US$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Foreign currency forward contracts | 23,621 | 813 | 23,621 | 813 | ||||||||||||
Options contracts | 66 | 2 | 66 | 2 | ||||||||||||
Available-for-sale financial assets-noncurrent | 235,134 | 8,094 | 235,134 | 8,094 | ||||||||||||
Refundable deposits | 297,692 | 10,248 | 297,692 | 10,248 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Long-term borrowings (including current portion) | 192,908,412 | 6,640,565 | 192,908,412 | 6,640,565 | ||||||||||||
Convertible bonds payable | 21,598,083 | 743,480 | 21,598,083 | 743,480 | ||||||||||||
Foreign currency forward contracts | 804,001 | 27,676 | 804,001 | 27,676 | ||||||||||||
Interest rate swap contracts | 58,547 | 2,015 | 58,547 | 2,015 | ||||||||||||
Options contracts | 54,000 | 1,859 | 54,000 | 1,859 |
December 31, 2012 | ||||||||||||||||
Publicly quoted market prices | Fair value based on valuation technique | |||||||||||||||
NT$ | US$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Foreign currency forward contracts | - | - | 23,621 | 813 | ||||||||||||
Options contracts | - | - | 66 | 2 | ||||||||||||
Available-for-sale financial assets-noncurrent | 235,134 | 8,094 | - | - | ||||||||||||
Refundable deposits | - | - | 297,692 | 10,248 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Long-term borrowings (including current portion) | - | - | 192,908,412 | 6,640,565 | ||||||||||||
Convertible bonds payable | - | - | 21,598,083 | 743,480 | ||||||||||||
Foreign currency forward contracts | - | - | 804,001 | 27,676 | ||||||||||||
Interest rate swap contracts | - | - | 58,547 | 2,015 | ||||||||||||
Options contracts | - | - | 54,000 | 1,859 |
Forward Exchange Contract Term | Outflow | Inflow | ||||||
(in thousands) | (in thousands) | |||||||
From Jan. 2013 to Jun. 2013 | USD | 229,100 | JPY | 39,608,298 | ||||
NTD | 8,668,702 | SGD | 14,781 | |||||
EUR | 103,400 | CNY | 1,053,651 | |||||
CZK | 40,448 | |||||||
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Changhong Trading | 245,940 | 4,761,272 | 7,466,133 | 257,010 | ||||||||||||
BenQ | 9,750,242 | 6,400,096 | 7,169,652 | 246,804 | ||||||||||||
TCL Huizhou | 6,284,825 | 10,292,276 | 7,115,218 | 244,930 | ||||||||||||
AUSP | 76,623 | 2,568,666 | 4,152,238 | 142,934 | ||||||||||||
Changhong Opto-electrical | - | 509,357 | 3,269,248 | 112,538 | ||||||||||||
QCSZ | 3,260,601 | 2,628,576 | 2,935,247 | 101,041 | ||||||||||||
Changhong Electrics | 15,676,929 | 7,377,695 | 1,865,034 | 64,201 | ||||||||||||
TCL (HK) | 2,572,268 | 2,152,528 | 1,000,830 | 34,452 | ||||||||||||
TCL | 2,998,896 | 486,003 | 101,666 | 3,500 | ||||||||||||
Others | 5,583,365 | 4,799,830 | 3,014,428 | 103,767 | ||||||||||||
46,449,689 | 41,976,299 | 38,089,694 | 1,311,177 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Changhong Trading | 558,702 | 1,941,109 | 66,819 | |||||||||
Changhong Opto-electrical | 1,467,690 | 1,198,487 | 41,256 | |||||||||
BenQ | 1,052,761 | 1,189,094 | 40,933 | |||||||||
TCL Huizhou | 725,488 | 748,826 | 25,777 | |||||||||
AUSP | 770,705 | 385,575 | 13,273 | |||||||||
QCSZ | 828,581 | 326,489 | 11,239 | |||||||||
Changhong Electrics | 544,697 | 163,177 | 5,617 | |||||||||
Others | 1,076,285 | 367,106 | 12,637 | |||||||||
Less: allowance for sales returns and discounts | (241,304 | ) | (128,784 | ) | (4,433 | ) | ||||||
6,783,605 | 6,191,079 | 213,118 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Forhouse | 23,277,026 | 19,294,675 | 18,964,246 | 652,814 | ||||||||||||
BMC | 13,995,913 | 14,453,146 | 12,298,164 | 423,345 | ||||||||||||
Raydium | 8,488,130 | 8,350,319 | 8,193,723 | 282,056 | ||||||||||||
QCSZ | 2,571,423 | 3,037,687 | 4,767,809 | 164,124 | ||||||||||||
Changhong Electrics | 3,247,996 | 7,092,431 | 449,381 | 15,469 | ||||||||||||
Others | 20,872,427 | 16,263,085 | 10,216,276 | 351,679 | ||||||||||||
72,452,915 | 68,491,343 | 54,889,599 | 1,889,487 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Forhouse | 6,207,655 | 4,173,347 | 143,661 | |||||||||
BMC | 3,385,151 | 3,349,572 | 115,304 | |||||||||
Raydium | 3,048,366 | 3,034,575 | 104,460 | |||||||||
QCSZ | 1,253,681 | 1,846,303 | 63,556 | |||||||||
Daxin | 683,268 | 900,727 | 31,006 | |||||||||
Others | 2,876,058 | 2,510,404 | 86,417 | |||||||||
17,454,179 | 15,814,928 | 544,404 |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Salaries | 143,208 | 134,351 | 4,625 | |||||||||
Compensation | 85,143 | 60,007 | 2,066 | |||||||||
Service charges | 14,735 | 2,862 | 99 | |||||||||
Employee bonuses | 15,900 | 3,422 | 118 |
December 31, | |||||||||||||
Pledged assets | Pledged to secure | 2011 | 2012 | ||||||||||
NT$ | NT$ | US$ | |||||||||||
(in thousands) | |||||||||||||
Restricted cash in banks and other financial assets - current | R&D project, oil purchases and guarantees for customs duties | 158,509 | 410,592 | 14,134 | |||||||||
Secured deposit (classified as other current assets) | Guarantees for lawsuit | 4,778,288 | 4,778,288 | 164,485 | |||||||||
Land and building | Long-term borrowings | 92,496,496 | 79,807,136 | 2,747,234 | |||||||||
Machinery and equipment | Long-term borrowings and bonds payable | 162,782,620 | 110,411,432 | 3,800,738 | |||||||||
Available-for-sale financial assets (Note) | Long-term borrowings | 3,309 | 2,829 | 97 | |||||||||
260,219,222 | 195,410,277 | 6,726,688 |
December 31, | ||||||||
Currency | 2011 | 2012 | ||||||
(in thousands) | ||||||||
USD | 6,273 | 14,097 | ||||||
JPY | 2,819,360 | 644,970 | ||||||
EUR | 6,173 | 1,427 |
December 31, | ||||||||
Currency | 2011 | 2012 | ||||||
(in thousands) | ||||||||
CNY | 900 | - | ||||||
NTD | 10,800 | - | ||||||
FRF | - | 143 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Less than one year | $ | 930,764 | 855,996 | 1,009,189 | ||||||||
Between one and five years | 2,741,583 | 1,608,999 | 1,885,667 | |||||||||
More than five years | 4,103,809 | 3,682,790 | 4,078,436 | |||||||||
$ | 7,776,156 | 6,147,785 | 6,973,292 |
Year | Minimum lease commitments | |||||||
NT$ | US$ | |||||||
(in thousands) | ||||||||
2013 | 855,996 | 29,466 | ||||||
2014 | 598,444 | 20,600 | ||||||
2015 | 524,937 | 18,070 | ||||||
2016 | 485,618 | 16,717 | ||||||
Thereafter | 3,682,790 | 126,774 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Less than one year | $ | 31,167 | 60,607 | 29,941 | ||||||||
Between one and five years | 32,208 | 52,034 | 27,776 | |||||||||
More than five years | 111,386 | 119,438 | 13,888 | |||||||||
$ | 174,761 | 232,079 | 71,605 |
(a) |
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 | ||||||||||||
Intersegment sales | - | 233,402 | (233,402 | ) | - | |||||||||||
Total segment sales | 456,725,565 | 10,665,801 | (233,402 | ) | 467,157,964 | |||||||||||
Operating profit (loss) (Note) | 13,102,670 | (2,612,622 | ) | 6,616 | 10,496,664 | |||||||||||
Non-operating expenses and losses, net | (1,900,683 | ) | ||||||||||||||
Income before income tax | 8,595,981 | |||||||||||||||
Depreciation and amortization | 86,656,429 | 2,479,273 | - | 89,135,702 |
For the year ended December 31, 2011 | ||||||||||||||||
Display | Solar | Adjustment and eliminations | Consolidated Total | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net sales from external customers | 366,482,597 | 13,229,281 | - | 379,711,878 | ||||||||||||
Intersegment sales | - | 38,887 | (38,887 | ) | - | |||||||||||
Total segment sales | 366,482,597 | 13,268,168 | (38,887 | ) | 379,711,878 | |||||||||||
Operating loss (Note) | (54,433,233 | ) | (3,220,521 | ) | (4,778 | ) | (57,658,532 | ) | ||||||||
Non-operating expenses and losses, net | (7,993,597 | ) | ||||||||||||||
Loss before income tax | (65,652,129 | ) | ||||||||||||||
Depreciation and amortization | 84,999,490 | 3,752,943 | - | 88,752,433 |
For the year ended December 31, 2012 | ||||||||||||||||
Display | Solar | Adjustment and eliminations | Consolidated Total | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net sales from external customers | 367,120,352 | 11,350,583 | - | 378,470,935 | ||||||||||||
Intersegment sales | - | - | - | - | ||||||||||||
Total segment sales | 367,120,352 | 11,350,583 | - | 378,470,935 | ||||||||||||
Operating loss (Note) | (29,587,263 | ) | (8,277,411 | ) | - | (37,864,674 | ) | |||||||||
Non-operating expenses and losses, net | (17,405,908 | ) | ||||||||||||||
Loss before income tax | (55,270,582 | ) | ||||||||||||||
Depreciation and amortization | 70,939,638 | 4,647,018 | - | 75,586,656 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Taiwan | 178,396,594 | 145,497,812 | 150,790,438 | 5,190,721 | ||||||||||||
PRC | 147,491,931 | 107,117,722 | 114,469,451 | 3,940,429 | ||||||||||||
Singapore | 27,369,287 | 23,670,480 | 31,397,387 | 1,080,805 | ||||||||||||
Korea | 45,300,140 | 30,797,262 | 18,864,208 | 649,370 | ||||||||||||
Other foreign countries | 68,600,012 | 72,628,602 | 62,949,451 | 2,166,935 | ||||||||||||
Consolidated net sales | 467,157,964 | 379,711,878 | 378,470,935 | 13,028,260 |
December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Taiwan | 327,784,022 | 290,196,184 | 248,284,493 | 8,546,798 | ||||||||||||
PRC | 34,608,643 | 40,874,169 | 42,893,682 | 1,476,547 | ||||||||||||
Other foreign countries | 40,271,148 | 49,594,776 | 44,576,513 | 1,534,475 | ||||||||||||
Total consolidated non-current assets | 402,663,813 | 380,665,129 | 335,754,688 | 11,557,820 |
December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Taiwan | 313,306,181 | 273,047,594 | 232,350,302 | 7,998,289 | ||||||||||||
PRC | 31,883,762 | 37,612,226 | 39,894,917 | 1,373,319 | ||||||||||||
Other foreign countries | 40,438,441 | 49,516,758 | 44,112,350 | 1,518,498 | ||||||||||||
Total consolidated tangible long-lived assets | 385,628,384 | 360,176,578 | 316,357,569 | 10,890,106 |
For the year ended December 31, | |||||||||||||||
2010 | 2011 | 2012 | |||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||
NT$ | NT$ | NT$ | US$ | ||||||||||||
(in thousands) | |||||||||||||||
Customer A | 71,227,688 | 15 | 50,400,074 | 13 | 58,022,522 | 1,997,333 | 15 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Panels for Mobile PCs | 70,390 | 67,530 | 72,374 | 2,491 | ||||||||||||
Panels for Monitors | 77,942 | 58,407 | 59,576 | 2,051 | ||||||||||||
Panels for Consumer Electronics Products | 56,402 | 62,832 | 57,746 | 1,988 | ||||||||||||
Panels for LCD Televisions(1) | 237,263 | 165,275 | 168,892 | 5,814 | ||||||||||||
Others(2) | 25,161 | 25,668 | 19,883 | 684 | ||||||||||||
Total | 467,158 | 379,712 | 378,471 | 13,028 | ||||||||||||
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) attributable to AU Optronics Corp., US GAAP | 4,244,323 | (80,948,225 | ) | (54,471,882 | ) | (1,875,108 | ) | |||||||||
Transfer (to) from noncontrolling interest | ||||||||||||||||
Decrease in AUO’s paid-in capital due to purchase of common shares of former BVTW | (17,961 | ) | - | - | - |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Decrease in AUO’s paid-in capital due to purchase of common shares of ACTW | - | (480,250 | ) | (141,762 | ) | (4,880 | ) | |||||||||
Increase in AUO’s paid-in capital for sale of BVTW’s common shares | 17,497 | - | - | - | ||||||||||||
Increase in AUO’s paid-in capital for sale of Lextar’s common shares | 107,348 | - | - | - | ||||||||||||
Increase in AUO’s paid-in capital for disproportionate participation in Lextar’s capital increase | 1,234,361 | - | - | - | ||||||||||||
Increase in AUO’s paid-in capital for disproportionate participation in BVTW’s capital increase | 562,689 | 214,119 | - | - | ||||||||||||
Decrease in AUO’s paid-in capital for disproportionate participation in former BVTW’s capital increase | (66,424 | ) | - | - | - | |||||||||||
Increase (decrease) in AUO’s paid-in capital for disproportionate participation in ACTW’s capital increase | 9,111 | 402,394 | (75,082 | ) | (2,584 | ) | ||||||||||
Increase (decrease) in AUO’s paid-in capital for disproportionate participation in M. Setek’s capital increase | (703,387 | ) | 943,314 | - | - | |||||||||||
Net transfer (to) from noncontrolling interest | 1,143,234 | 1,079,577 | (216,844 | ) | (7,464 | ) | ||||||||||
Change from net income (loss) attributable to AU Optronics Corp. and transfers (to) from noncontrolling interest | 5,387,557 | (79,868,648 | ) | (54,688,726 | ) | (1,882,572 | ) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp., ROC GAAP | 6,692,657 | (61,263,814 | ) | (54,614,704 | ) | (1,880,024 | ) | |||||||||
US GAAP adjustments: | ||||||||||||||||
a) Purchase method of accounting for acquisition of Unipac | ||||||||||||||||
-Depreciation | (36,311 | ) | (59,405 | ) | (391,544 | ) | (13,478 | ) | ||||||||
Acquisition method of accounting for others | 10,515 | 37,875 | 1,462 | 50 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands, except for per share data) | ||||||||||||||||
b) Noncontrolling interests | ||||||||||||||||
-Decrease in ownership not resulting in loss of control | (124,845 | ) | - | - | - | |||||||||||
c) Long-term equity investments | ||||||||||||||||
-Investment gains (losses) | 30,426 | (17,494 | ) | (47,061 | ) | (1,620 | ) | |||||||||
-Disposal gain | - | 31,189 | 9,101 | 313 | ||||||||||||
- Impairment loss | - | (1,801,856 | ) | 388,145 | 13,361 | |||||||||||
c) Deconsolidation of subsidiary | 362,842 | - | - | - | ||||||||||||
d) Convertible bonds | (678,777 | ) | 780,564 | - | - | |||||||||||
e) Pension expense | 1,707 | 1,466 | 1,306 | 45 | ||||||||||||
f) Depreciation of buildings | (2,367,968 | ) | (2,835,733 | ) | (56,919 | ) | (1,959 | ) | ||||||||
g) Compensated absences expense | (41,294 | ) | (31,974 | ) | (243,053 | ) | (8,367 | ) | ||||||||
i) Escalation adjustment of rent expense | 2,129 | 2,129 | 4,250 | 146 | ||||||||||||
j) Reversal of impairment of long-lived assets | - | - | 2,335,243 | 80,387 | ||||||||||||
m) Tax effect of the above US GAAP adjustments | 977,603 | 1,859,382 | 2,575,562 | 88,660 | ||||||||||||
m) Valuation allowance for deferred tax assets related to the above US GAAP adjustments | (112,091 | ) | (17,691,596 | ) | (4,455,726 | ) | (153,381 | ) | ||||||||
m) 10% surtax on undistributed retained earnings and others | (472,270 | ) | 41,042 | 22,056 | 759 | |||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp., US GAAP | 4,244,323 | (80,948,225 | ) | (54,471,882 | ) | (1,875,108 | ) | |||||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | 0.48 | (9.17 | ) | (6.17 | ) | (0.21 | ) | |||||||||
Diluted | 0.48 | (9.17 | ) | (6.17 | ) | (0.21 | ) | |||||||||
Weighted-average number of shares outstanding (in thousands): | ||||||||||||||||
Basic | 8,827,046 | 8,827,046 | 8,827,046 | |||||||||||||
Diluted | 8,827,046 | 8,827,046 | 8,827,046 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Equity attributable to stockholders of AU Optronics Corp., ROC GAAP | 205,388,716 | 149,150,855 | 5,134,280 | |||||||||
a) Purchase method of accounting for acquisition of Unipac | ||||||||||||
- Goodwill | 10,946,732 | 10,946,732 | 376,824 | |||||||||
- Other assets | (202,605 | ) | (594,149 | ) | (20,453 | ) | ||||||
Acquisition method of accounting for acquisition of M. Setek | ||||||||||||
- Impairment loss | 653,609 | 653,609 | 22,499 | |||||||||
- Re-measurement loss | (1,445,660 | ) | (1,445,660 | ) | (49,765 | ) | ||||||
- Gain on bargain purchase | 162,682 | 162,682 | 5,600 | |||||||||
Acquisition method of accounting for other | 89,489 | 90,951 | 3,131 | |||||||||
c) Subsidiaries and long-term equity investments | ||||||||||||
-Adjustment for changes in investees’ equity | 3,313,811 | 3,517,202 | 121,074 | |||||||||
-Deconsolidation of subsidiary | 359,902 | 359,902 | 12,389 | |||||||||
-Impairment of equity investee | (3,730,565 | ) | (3,342,420 | ) | (115,057 | ) | ||||||
c) Cumulative translation adjustments | (4,161 | ) | (173,226 | ) | (5,963 | ) | ||||||
e) Defined benefit plan | ||||||||||||
- Accrued pension cost | (17,546 | ) | (16,251 | ) | (559 | ) | ||||||
- Recognition of funded status under FASB ASC Subtopic 715-60 | (852,552 | ) | (1,234,543 | ) | (42,497 | ) | ||||||
f) Accumulated depreciation of buildings | (13,693,210 | ) | (13,750,129 | ) | (473,326 | ) | ||||||
g) Accrued compensated absences | (465,076 | ) | (708,129 | ) | (24,376 | ) | ||||||
i) Accrued rental expense and adjustment to land cost | (92,281 | ) | (88,031 | ) | (3,030 | ) | ||||||
j) Reversal of impairment of long-lived assets | - | 2,335,243 | 80,387 | |||||||||
m) Income tax assets and liabilities | (12,752,604 | ) | (14,516,152 | ) | (499,695 | ) | ||||||
Equity attributable to stockholders of AU Optronics Corp., US GAAP | 187,658,681 | 131,348,486 | 4,521,463 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Assets | ||||||||||||
Current assets | 200,534,190 | 174,252,472 | 5,998,364 | |||||||||
Long-term investments | 15,314,850 | 13,273,376 | 456,915 | |||||||||
Property, plant and equipment, net | 348,452,734 | 306,270,495 | 10,542,874 | |||||||||
Goodwill and intangible assets | 26,199,253 | 25,879,630 | 890,865 | |||||||||
Other assets | 4,559,681 | 4,017,012 | 138,279 | |||||||||
Total Assets | 595,060,708 | 523,692,985 | 18,027,297 | |||||||||
Liabilities and Equity | ||||||||||||
Current liabilities | 205,026,818 | 192,297,732 | 6,619,543 | |||||||||
Long-term liabilities | 187,559,221 | 186,849,844 | 6,432,008 | |||||||||
Equity attributable to stockholders of AU Optronics Corp. | 187,658,681 | 131,348,486 | 4,521,463 | |||||||||
Non-controlling interests | 14,815,988 | 13,196,923 | 454,283 | |||||||||
Total Liabilities and Equity | 595,060,708 | 523,692,985 | 18,027,297 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net sales | 467,157,964 | 379,711,877 | 378,470,935 | 13,028,259 | ||||||||||||
Cost of goods sold | 435,549,584 | 414,029,624 | 391,000,686 | 13,459,576 | ||||||||||||
Gross profit (loss) | 31,608,380 | (34,317,747 | ) | (12,529,751 | ) | (431,317 | ) | |||||||||
Operating expenses | 26,209,188 | 33,450,570 | 37,682,075 | 1,297,145 | ||||||||||||
Operating income (loss) | 5,399,192 | (67,768,317 | ) | (50,211,826 | ) | (1,728,462 | ) | |||||||||
Non-operating income (expenses), net | 69,188 | (1,855,493 | ) | (2,770,143 | ) | (95,358 | ) | |||||||||
Income (loss) before income taxes | 5,468,380 | (69,623,810 | ) | (52,981,969 | ) | (1,823,820 | ) | |||||||||
Income tax expense | 745,015 | 11,492,354 | 2,328,708 | 80,162 | ||||||||||||
Net income (loss) | 4,723,365 | (81,116,164 | ) | (55,310,677 | ) | (1,903,982 | ) | |||||||||
Less net income (loss) attributable to noncontrolling interests | 479,042 | (167,939 | ) | (838,795 | ) | (28,874 | ) | |||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. | 4,244,323 | (80,948,225 | ) | (54,471,882 | ) | (1,875,108 | ) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. | 4,244,323 | (80,948,225 | ) | (54,471,882 | ) | (1,875,108 | ) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Derivative and hedging activities | 186,593 | 64,742 | 111,781 | 3,848 | ||||||||||||
Unrealized gains (losses) on securities | (725,095 | ) | (769,842 | ) | 37,640 | 1,296 | ||||||||||
Cumulative translation adjustments | (634,165 | ) | 934,721 | (1,087,083 | ) | (37,421 | ) | |||||||||
Defined benefit plan | (298,456 | ) | (63,557 | ) | (289,902 | ) | (9,980 | ) | ||||||||
Other comprehensive income (loss), net of tax | (1,471,123 | ) | 166,064 | (1,227,564 | ) | (42,257 | ) | |||||||||
Comprehensive income (loss) attributable to stockholders of AU Optronics Corp. | 2,773,200 | (80,782,161 | ) | (55,699,446 | ) | (1,917,365 | ) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 479,042 | (167,939 | ) | (838,795 | ) | (28,874 | ) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Derivative and hedging activities | 34 | 411 | - | - | ||||||||||||
Unrealized gains on securities | 592 | 815 | 331 | 11 | ||||||||||||
Cumulative translation adjustments | 33,342 | 334,696 | (163,986 | ) | (5,645 | ) | ||||||||||
Defined benefit plan | (3,965 | ) | 435 | (2,981 | ) | (102 | ) | |||||||||
Other comprehensive income (loss), net of tax | 30,003 | 336,357 | (166,636 | ) | (5,736 | ) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 509,045 | 168,418 | (1,005,431 | ) | (34,610 | ) |
Years ended December 31, 2010, 2011 and 2012 | ||||||||||||
Equity attributable to AU Optronics Corp. | Noncontrolling interests | Total equity | ||||||||||
(in thousands) | ||||||||||||
Balance at January 1, 2010 | 266,268,982 | 11,747,512 | 278,016,494 | |||||||||
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: | ||||||||||||
Net income | 4,244,323 | 479,042 | 4,723,365 | |||||||||
Other comprehensive income (loss), 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 | ) | ||||||
Total comprehensive income | 2,773,200 | 509,045 | 3,282,245 | |||||||||
Balance at December 31, 2010 | 270,390,059 | 12,983,681 | 283,373,740 | |||||||||
Cash dividends | (3,530,818 | ) | (406,427 | ) | (3,937,245 | ) | ||||||
Net transfer from noncontrolling interest | 1,079,577 | (1,079,577 | ) | - | ||||||||
Proceeds from subsidiaries capital increase | - | 3,230,026 | 3,230,026 | |||||||||
Other changes in equity | 502,024 | (80,133 | ) | 421,891 | ||||||||
Comprehensive income (loss): | ||||||||||||
Net loss | (80,948,225 | ) | (167,939 | ) | (81,116,164 | ) | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Derivative and hedging activities | 64,742 | 411 | 65,153 | |||||||||
Unrealized gains (losses) on securities | (769,842 | ) | 815 | (769,027 | ) | |||||||
Cumulative translation adjustments | 934,721 | 334,696 | 1,269,417 | |||||||||
Defined benefit plan | (63,557 | ) | 435 | (63,122 | ) | |||||||
Total comprehensive income (loss) | (80,782,161 | ) | 168,418 | (80,613,743 | ) | |||||||
Balance at December 31, 2011 | 187,658,681 | 14,815,988 | 202,474,669 |
Years ended December 31, 2010, 2011 and 2012 | ||||||||||||
Equity attributable to AU Optronics Corp. | Noncontrolling interests | Total equity | ||||||||||
(in thousands) | ||||||||||||
Cash dividends | - | (214,829 | ) | (214,829 | ) | |||||||
Net transfer to noncontrolling interest | (216,844 | ) | 216,844 | - | ||||||||
Proceeds from subsidiaries capital increase | - | 2,452,704 | 2,452,704 | |||||||||
Return of subsidiaries capital | - | (3,060,000 | ) | (3,060,000 | ) | |||||||
Other changes in equity | (393,905 | ) | (8,353 | ) | (402,258 | ) | ||||||
Comprehensive loss: | ||||||||||||
Net loss | (54,471,882 | ) | (838,795 | ) | (55,310,677 | ) | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Derivative and hedging activities | 111,781 | - | 111,781 | |||||||||
Unrealized gains on securities | 37,640 | 331 | 37,971 | |||||||||
Cumulative translation adjustments | (1,087,083 | ) | (163,986 | ) | (1,251,069 | ) | ||||||
Defined benefit plan | (289,902 | ) | (2,981 | ) | (292,883 | ) | ||||||
Total comprehensive loss | (55,699,446 | ) | (1,005,431 | ) | (56,704,877 | ) | ||||||
Balance at December 31, 2012 | 131,348,486 | 13,196,923 | 144,545,409 | |||||||||
Balance at December 31, 2012 (in US$) | 4,521,463 | 454,283 | 4,975,746 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||
Operating activities | 90,852,162 | 14,429,301 | 34,463,595 | 1,186,354 | ||||||||||||
Investing activities | (87,866,077 | ) | (58,072,742 | ) | (42,864,149 | ) | (1,475,530 | ) | ||||||||
Financing activities | 1,393,867 | 45,849,997 | (5,977,851 | ) | (205,778 | ) | ||||||||||
Effect of exchange rate change on cash and cash equivalents | (327,772 | ) | (868,379 | ) | 200,412 | 6,899 | ||||||||||
Net change in cash and cash equivalents | 4,052,180 | 1,338,177 | (14,177,993 | ) | (488,055 | ) | ||||||||||
Cash and cash equivalents at beginning of year | 85,443,311 | 89,495,491 | 90,833,668 | 3,126,805 | ||||||||||||
Cash and cash equivalents at end of year | 89,495,491 | 90,833,668 | 76,655,675 | 2,638,750 |
Cost* | Fair value | Total unrealized gains | Total unrealized losses | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(in thousands) | ||||||||||||||||
Long-term investments: | ||||||||||||||||
As of December 31, 2011 | 447,318 | 436,774 | 124,913 | 135,457 | ||||||||||||
As of December 31, 2012 | 196,410 | 235,134 | 39,119 | 395 |
Proceeds from sales | Gross realized gains | Gross realized losses | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(in thousands) | ||||||||||||
For the year ended December 31, 2010 | 716,751 | 547,892 | - | |||||||||
For the year ended December 31, 2011 | 135,433 | 54,317 | 12,008 | |||||||||
For the year ended December 31, 2012 | 291,236 | 146,487 | - |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of year | 214,327 | 868,202 | 532,951 | 18,346 | ||||||||||||
Provisions charged to earnings | 2,035,875 | 2,362,481 | 1,665,897 | 57,346 | ||||||||||||
Write-offs | (1,382,000 | ) | (2,697,732 | ) | (1,672,617 | ) | (57,577 | ) | ||||||||
Balance at end of year | 868,202 | 532,951 | 526,231 | 18,115 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of year | 2,313,590 | 2,870,895 | 2,685,337 | 92,439 | ||||||||||||
Provisions charged to earnings | 651,953 | 289,179 | 555,199 | 19,112 | ||||||||||||
Utilization | (94,648 | ) | (474,737 | ) | (559,813 | ) | (19,271 | ) | ||||||||
Balance at end of year | 2,870,895 | 2,685,337 | 2,680,723 | 92,280 |
(1) | Recognized liabilities for defined benefit obligations at the reporting date were as follows: |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Present value of defined benefit obligations | $ | (2,490,854 | ) | (2,468,402 | ) | (2,075,995 | ) | |||||
Fair value of plan assets | 1,707,081 | 1,599,329 | 1,500,839 | |||||||||
Net defined benefit liability | $ | (783,773 | ) | (869,073 | ) | (575,156 | ) |
(2) | Movement in net defined benefit liability |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Projected benefit obligation at beginning of year | 1,694,278 | 1,846,066 | 63,548 | |||||||||
Service cost | 8,954 | 7,211 | 248 | |||||||||
Interest cost | 33,938 | 36,870 | 1,269 | |||||||||
Actuarial loss | 114,537 | 400,141 | 13,775 | |||||||||
Benefit paid | (5,641 | ) | (10,367 | ) | (357 | ) | ||||||
Projected benefit obligation at end of year | 1,846,066 | 2,279,921 | 78,483 |
Defined benefit obligation | Fair value of plan assets | Net defined benefit liability | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance at January 1, | $ | (2,468,402 | ) | (2,075,995 | ) | 1,599,329 | 1,500,839 | (869,073 | ) | (575,156 | ) | |||||||||||||
Included in profit or loss | ||||||||||||||||||||||||
Service cost | (21,205 | ) | (23,395 | ) | - | - | (21,205 | ) | (23,395 | ) | ||||||||||||||
Interest cost | (38,832 | ) | (36,500 | ) | - | - | (38,832 | ) | (36,500 | ) | ||||||||||||||
Expected return on plan assets | - | - | 27,988 | 26,325 | 27,988 | 26,325 | ||||||||||||||||||
(60,037 | ) | (59,895 | ) | 27,988 | 26,325 | (32,049 | ) | (33,570 | ) | |||||||||||||||
Included in OCI | ||||||||||||||||||||||||
Remeasurements (loss) gain: | ||||||||||||||||||||||||
Actuarial (loss) gain arising from: | ||||||||||||||||||||||||
- demographic assumptions | (498,012 | ) | (296,456 | ) | - | - | (498,012 | ) | (296,456 | ) | ||||||||||||||
- financial assumptions | 359,705 | (76,014 | ) | - | - | 359,705 | (76,014 | ) | ||||||||||||||||
- experience adjustment | 111,095 | 16,395 | - | - | 111,095 | 16,395 | ||||||||||||||||||
Return on plan assets excluding interest income | - | - | (8,071 | ) | (13,464 | ) | (8,071 | ) | (13,464 | ) | ||||||||||||||
(27,212 | ) | (356,075 | ) | (8,071 | ) | (13,464 | ) | (35,283 | ) | (369,539 | ) | |||||||||||||
Other | ||||||||||||||||||||||||
Contributions paid by the employer | - | - | 105,289 | 95,996 | 105,289 | 95,996 | ||||||||||||||||||
Benefits paid | 28,860 | 17,930 | (17,454 | ) | (10,367 | ) | 11,406 | 7,563 | ||||||||||||||||
Effect of changes in exchange rates and others | 35,937 | 5,633 | - | - | 35,937 | 5,633 | ||||||||||||||||||
64,797 | 23,563 | 87,835 | 85,629 | 152,632 | 109,192 | |||||||||||||||||||
Balance at December 31, | $ | (2,490,854 | ) | (2,468,402 | ) | 1,707,081 | 1,599,329 | (783,773 | ) | (869,073 | ) |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Fair value of plan assets at beginning of year | 1,386,818 | 1,500,839 | 51,664 | |||||||||
Actual return on plan assets | 13,126 | 12,860 | 443 | |||||||||
Actual contributions | 106,536 | 95,997 | 3,304 | |||||||||
Benefit paid | (5,641 | ) | (10,367 | ) | (357 | ) | ||||||
Fair value of plan assets at end of year | 1,500,839 | 1,599,329 | 55,054 |
(3) | Plan assets |
(4) | Defined benefit obligation |
(i) | Principal actuarial assumptions (expressed as weighted averages) |
2013 | 2012 | |||
Discount rate | 0.48%~2.00% | 0.594%~1.75% | ||
Expected long-term rate of return on plan assets | 0.00%~2.00% | 0.00%~1.75% | ||
Rate of increase in future compensation levels | 1.19%~3.79% | 1.19%~3.00% |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Funded status-plan assets less than benefit obligations | (345,227 | ) | (680,592 | ) | (23,429 | ) | ||||||
Accrued liability | (345,227 | ) | (680,592 | ) | (23,429 | ) |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Accrued liability at beginning of year | (307,460 | ) | (345,227 | ) | (11,884 | ) | ||||||
Net periodic benefit cost | (48,204 | ) | (46,380 | ) | (1,597 | ) | ||||||
Actual contributions | 106,536 | 95,997 | 3,304 | |||||||||
Pension liability adjustments under FASB Topic 715-60 | (96,099 | ) | (384,982 | ) | (13,252 | ) | ||||||
Accrued liability at end of year | (345,227 | ) | (680,592 | ) | (23,429 | ) |
(ii) | Sensitivity analysis |
December 31, 2013 | ||||||||
Changes in assumptions | ||||||||
+ 0.25% | - 0.25% | |||||||
(in thousands) | ||||||||
Discount rate | (142,249 | ) | 151,840 | |||||
Rate of compensation increase | 150,060 | (141,333 | ) |
(b) | Defined contribution plans |
23. | Income Taxes |
(a) | The components of income tax expense (benefit) for the years ended December 31, 2013 and 2012 were as follows: |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Current income tax expense: | ||||||||
Current year | $ | 1,293,445 | 846,477 | |||||
Adjustment to prior years and others | 124,659 | 107,943 | ||||||
1,418,104 | 954,420 | |||||||
Deferred income tax expense (benefit): | ||||||||
Temporary differences | (126,932 | ) | 114,685 | |||||
Investment tax credit and income tax loss carryforwards | 67,992 | 54,879 | ||||||
(58,940 | ) | 169,564 | ||||||
Total income tax expense | $ | 1,359,164 | 1,123,984 |
(b) | Income taxes recognized directly in other comprehensive income for the years ended December 31, 2013 and 2012 were as follows: |
For the year ended December 31, 2013 | ||||||||||||
Before tax | Tax (expense)benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations - foreign currency translation differences | $ | 3,011,724 | (76,097 | ) | 2,935,627 | |||||||
Unrealized gains on available-for-sale financial assets | 449,043 | - | 449,043 | |||||||||
Cash flow hedges | 41,485 | - | 41,485 | |||||||||
Defined benefit plan actuarial losses | (35,283 | ) | 467 | (34,816 | ) | |||||||
Equity-accounted investees – share of other comprehensive income | 131,926 | - | 131,926 | |||||||||
Realized gain on sales of securities transferred to profit or loss | (524,690 | ) | - | (524,690 | ) | |||||||
Net current-year changes | $ | 3,074,205 | (75,630 | ) | 2,998,575 |
For the year ended December 31, 2012 | ||||||||||||
Before tax | Tax benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations - foreign currency translation differences | $ | (1,174,931 | ) | 32,575 | (1,142,356 | ) | ||||||
Unrealized gains on available-for-sale financial assets | 191,474 | - | 191,474 | |||||||||
Cash flow hedges | 140,576 | - | 140,576 | |||||||||
Defined benefit plan actuarial losses | (369,539 | ) | 1,029 | (368,510 | ) | |||||||
Equity-accounted investees – share of other comprehensive loss | (282,016 | ) | - | (282,016 | ) | |||||||
Realized gain on sales of securities transferred to profit or loss | (122,987 | ) | - | (122,987 | ) | |||||||
Net current-year changes | $ | (1,617,423 | ) | 33,604 | (1,583,819 | ) |
(c) | Reconciliation of the expected income tax expense (benefit) calculated based on the Republic of China statutory income tax rate compared with the actual income tax expense (benefit) as reported in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2013 and 2012, was as follows: |
For the years ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Rate | Amount | Rate | Amount | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Profit (loss) before income taxes | $ | 5,236,038 | (51,494,063 | ) | ||||||||||||
Expected income tax expense (benefit) | 17.00% | $ | 890,125 | 17.00% | (8,753,991 | ) | ||||||||||
Tax on repatriation of subsidiaries’ earnings | 2.06% | 108,002 | (0.99%) | 511,750 | ||||||||||||
Effect of different subsidiaries income tax rate | (8.38%) | (438,738 | ) | 7.53% | (3,876,803 | ) | ||||||||||
Effect of changes in statutory income tax rate | (1.45%) | (75,763 | ) | (0.36%) | 184,516 | |||||||||||
Effect of change of unrecognized deductible temporary differences, net operating loss carryforwards, and investment tax credits | 8.75% | 458,390 | (22.38%) | 11,523,405 | ||||||||||||
Permanent differences | (2.47%) | (129,316 | ) | (0.02%) | 11,963 | |||||||||||
Loss from domestic long-term investment | 1.42% | 74,377 | (2.84%) | 1,464,036 | ||||||||||||
Tax holiday | 0% | - | 0.38% | (193,401 | ) | |||||||||||
Tax on undistributed retained earnings | 7.19% | 376,234 | (0.12%) | 64,031 | ||||||||||||
Adjustments to prior year | 1.77% | 92,565 | (0.27%) | 140,212 | ||||||||||||
Others | 0.06% | 3,288 | (0.09%) | 48,266 | ||||||||||||
Actual income tax expense | $ | 1,359,164 | 1,123,984 | |||||||||||||
Actual effective tax rate | 25.96% | (2.18%) |
(d) | The components of deferred tax assets and liabilities were as follows: |
Deferred tax assets | Deferred tax liabilities | Total | ||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Investment tax credits | $ | - | 4,039 | 5,694 | - | - | - | - | 4,039 | 5,694 | ||||||||||||||||||||||||||
Net operating loss carryforwards-regular tax | 150,694 | 211,512 | 265,348 | - | - | - | 150,694 | 211,512 | 265,348 | |||||||||||||||||||||||||||
Unrealized loss and expenses | 147,034 | 160,750 | 69,416 | (9,638 | ) | (9,379 | ) | (4,001 | ) | 137,396 | 151,371 | 65,415 | ||||||||||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 2,243 | 905 | 579 | - | - | - | 2,243 | 905 | 579 | |||||||||||||||||||||||||||
Inventories | 3,264 | 4,446 | 2,469 | - | - | - | 3,264 | 4,446 | 2,469 | |||||||||||||||||||||||||||
Foreign investment losses (gains) under the equity method | - | - | - | (275,452 | ) | (365,490 | ) | (318,494 | ) | (275,452 | ) | (365,490 | ) | (318,494 | ) | |||||||||||||||||||||
Actuarial loss on defined benefit plans | 1,496 | 1,029 | - | - | - | - | 1,496 | 1,029 | - | |||||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | - | - | - | (90,722 | ) | (14,625 | ) | (47,200 | ) | (90,722 | ) | (14,625 | ) | (47,200 | ) | |||||||||||||||||||||
Others | 773,899 | 683,169 | 497,768 | (444,318 | ) | (426,908 | ) | (76,499 | ) | 329,581 | 256,261 | 421,269 | ||||||||||||||||||||||||
Deferred tax assets (liabilities) | $ | 1,078,630 | 1,065,850 | 841,274 | (820,130 | ) | (816,402 | ) | (446,194 | ) | 258,500 | 249,448 | 395,080 |
(e) | Changes in deferred tax assets and liabilities were as follows: |
January 1, 2012 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of exchange rate and others | December 31, 2012 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of exchange rate and others | December 31, 2013 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Investment tax credits | $ | 5,694 | (1,655 | ) | - | - | 4,039 | (4,039 | ) | - | - | - | ||||||||||||||||||||||||
Net operating loss carryforwards-regular tax | 265,348 | (53,223 | ) | - | (613 | ) | 211,512 | (63,953 | ) | - | 3,135 | 150,694 | ||||||||||||||||||||||||
Unrealized loss and expenses | 65,415 | 87,624 | - | (1,668 | ) | 151,371 | (18,994 | ) | - | 5,019 | 137,396 | |||||||||||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 579 | 326 | - | - | 905 | 1,338 | - | - | 2,243 | |||||||||||||||||||||||||||
Inventories | 2,469 | 2,013 | - | (36 | ) | 4,446 | (802 | ) | - | (380 | ) | 3,264 | ||||||||||||||||||||||||
Foreign investment losses (gains) under the equity method | (318,494 | ) | (46,996 | ) | - | - | (365,490 | ) | 90,038 | - | - | (275,452 | ) | |||||||||||||||||||||||
Actuarial loss on defined benefit plans | - | - | 1,029 | - | 1,029 | - | 467 | - | 1,496 | |||||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | (47,200 | ) | - | 32,575 | - | (14,625 | ) | - | (76,097 | ) | - | (90,722 | ) | |||||||||||||||||||||||
Others | 421,269 | (157,653 | ) | - | (7,355 | ) | 256,261 | 55,352 | - | 17,968 | 329,581 | |||||||||||||||||||||||||
Total | $ | 395,080 | (169,564 | ) | 33,604 | (9,672 | ) | 249,448 | 58,940 | (75,630 | ) | 25,742 | 258,500 |
(f) | Unrecognized Deferred Tax Assets |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Unused investment tax credits | $ | 4,102,544 | 6,903,184 | 13,564,037 | ||||||||
Unused income tax loss carryforwards | 27,646,756 | 26,672,557 | 17,074,649 | |||||||||
Goodwill | 485,601 | 662,305 | 838,919 | |||||||||
Others | 9,865,548 | 11,067,008 | 9,656,760 | |||||||||
$ | 42,100,449 | 45,305,054 | 41,134,365 |
Unused investment tax credits | Unused income tax loss carryforwards | |||||||
(in thousands) | ||||||||
Expiration at the year: | ||||||||
2014 | $ | 2,756,462 | - | |||||
2015 | 73,518 | - | ||||||
2018 | - | - | ||||||
2019 | - | 5,279,673 | ||||||
2020 | - | 745,181 | ||||||
2021 | - | 10,019,791 | ||||||
2022 | - | 10,345,495 | ||||||
2023 | 30,453 | 1,256,616 | ||||||
No expiration | 1,242,111 | - | ||||||
$ | 4,102,544 | 27,646,756 |
(g) | Assessments by the tax authorities |
(h) | The integrated income tax system |
24. | Capital and Other Components of Equity |
(a) | Common stock |
(b) | Capital surplus |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
From common stock | $ | 54,103,486 | 51,794,831 | 51,794,831 | ||||||||
From convertible bonds | 6,049,862 | 6,797,012 | 6,797,012 | |||||||||
From merger and others | 349,664 | 53,924,140 | 56,395,945 | |||||||||
$ | 60,503,012 | 112,515,983 | 114,987,788 |
(c) | Legal reserve |
(d) | Distribution of earnings and dividend policy |
(1) | at least 5 percent as employee bonuses; |
(2) | at most 1 percent as remuneration to directors; and |
(3) | the remaining portion, in whole or in part, as dividends to common stockholders. |
For Fiscal Year 2013 | ||||||||
Appropriation of Earnings | Dividends Per Share | |||||||
(in thousands, except for per share data) | ||||||||
Legal capital reserve | $ | 401,749 | ||||||
Cash dividends to shareholders | 1,443,637 | $ | 0.15 | |||||
$ | 1,845,386 |
(e) | Other components of equity |
(1) | Cumulative translation differences |
(2) | Unrealized gains and losses on cash flow hedges |
(3) | Unrealized gains and losses on financial instruments |
(f) | Non-controlling interests |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | 7,596 | 8,954 | 7,211 | 248 | ||||||||||||
Interest cost | 28,473 | 33,938 | 36,870 | 1,269 | ||||||||||||
Expected return on plan assets | (28,172 | ) | (27,736 | ) | (30,017 | ) | (1,033 | ) | ||||||||
Amortization of net transition cost | 323 | 323 | 323 | 11 | ||||||||||||
Amortization of net loss | 83 | 378 | 352 | 12 | ||||||||||||
Recognized net actuarial loss | 16,470 | 32,347 | 31,641 | 1,090 | ||||||||||||
Net periodic benefit cost | 24,773 | 48,204 | 46,380 | 1,597 |
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at the beginning of the year | $ | 14,062,612 | 15,870,764 | |||||
Equity attributable to non-controlling interests: | ||||||||
Profit (loss) for the year | 72,722 | (1,290,976 | ) | |||||
Adjustment of changes in ownership of subsidiaries | 45,969 | 464,052 | ||||||
Unrealized gains (losses) on available-for-sale financial assets | (387 | ) | 331 | |||||
Actuarial losses of defined benefit plans, net of tax | (1,160 | ) | (2,560 | ) | ||||
Proceeds from subsidiaries capital increase | - | 2,452,786 | ||||||
Cash dividends from subsidiaries | (174,208 | ) | (214,829 | ) | ||||
Foreign currency translation differences, net of tax | 436,746 | (156,976 | ) | |||||
Return of subsidiaries capital | (114,948 | ) | (3,060,000 | ) | ||||
Loss of control of subsidiaries and others | (290,826 | ) | 20 | |||||
Balance at the end of the year | $ | 14,036,520 | 14,062,612 |
25. | Earnings (Loss) per Share |
December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Discount rate | 2.00% – 2.25% | 1.75% – 2.00% | 1.75% | |||||||||
Rate of increase in compensation levels | 3.00% – 4.00% | 2.00% – 3.00% | 2.00% –3.00% |
(a) | Basic earnings (loss) per share for the years ended December 31, 2013 and 2012 were calculated as follows: |
For the year ended December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
Discount rate | 2.25% | 2.00% – 2.25% | 1.75% – 2.00% | |||||||||
Rate of increase in compensation levels | 3.00% | 3.00% – 4.00% | 2.00% –3.00% | |||||||||
Expected long-term rate of return on plan assets | 2.00% | 2.00% | 1.75% |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except for per share data) | ||||||||
Profit (loss) attributable to AUO’s stockholders | $ | 3,804,142 | (51,327,071 | ) | ||||
Weighted-average number of common shares outstanding during the year: | ||||||||
Issued common shares at beginning of year | 8,827,046 | 8,827,046 | ||||||
Effect of ADSs issued in May 2013 | 522,001 | - | ||||||
Weighted-average number of common shares (basic) | 9,349,047 | 8,827,046 | ||||||
Basic earnings (loss) per share | $ | 0.41 | (5.81 | ) |
(b) | Diluted earnings per share for the year ended December 31, 2013 was calculated as follows: |
Year | Retirement benefit payments | |||||||
NT$ | US$ | |||||||
(in thousands) | ||||||||
2013 | 27,466 | 945 | ||||||
2014 | 46,457 | 1,599 | ||||||
2015 | 25,040 | 862 | ||||||
2016 | 14,895 | 513 | ||||||
2017 | 38,821 | 1,336 | ||||||
2018-2022 | 527,096 | 18,144 |
For the year ended December 31, 2013 | ||||
(in thousands, except for per share data) | ||||
Profit attributable to AUO’s stockholders | $ | 3,804,142 | ||
Weighted-average number of common shares outstanding during the year (including the effect of dilutive potential common stock): | ||||
Weighted-average number of common shares (basic) | 9,349,047 | |||
Effect of employee stock bonus | 61,881 | |||
Weighted-average number of common shares (diluted) | 9,410,928 | |||
Diluted earnings per share | $ | 0.40 |
26. |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Sale of goods | $ | 407,629,049 | 370,718,257 | |||||
Other operating revenue | 8,733,956 | 7,752,678 | ||||||
$ | 416,363,005 | 378,470,935 |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Projected benefit obligation at beginning of year | 185,243 | 110,123 | 3,791 | |||||||||
Service cost | 24,397 | 14,467 | 498 | |||||||||
Interest cost | 3,725 | 1,910 | 66 | |||||||||
Actuarial loss | 19,288 | 10,621 | 366 | |||||||||
Benefit paid | (132,327 | ) | (7,563 | ) | (261 | ) | ||||||
Effect of exchange rate | 9,797 | (14,648 | ) | (504 | ) | |||||||
Projected benefit obligation at end of year | 110,123 | 114,910 | 3,956 |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Fair value of plan assets at beginning of year | 36,966 | - | - | |||||||||
Actual return on plan assets | (1,469 | ) | - | - | ||||||||
Actual contributions | 24,573 | - | - | |||||||||
Benefit paid | (62,025 | ) | - | - | ||||||||
Effect of exchange rate | 1,955 | - | - | |||||||||
Fair value of plan assets at end of year | - | - | - |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Funded status-plan assets less than benefit obligations | (110,123 | ) | (114,910 | ) | (3,956 | ) | ||||||
Accrued liability | (110,123 | ) | (114,910 | ) | (3,956 | ) |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Accrued liability at beginning of year | (148,278 | ) | (110,123 | ) | (3,791 | ) | ||||||
Net periodic benefit cost | (27,361 | ) | (16,625 | ) | (572 | ) | ||||||
Benefit paid | 70,302 | 7,563 | 260 | |||||||||
Actual contributions | 24,573 | - | - | |||||||||
Pension liability adjustments under FASB Topic 715-60 | (21,516 | ) | (10,372 | ) | (357 | ) | ||||||
Effect of exchange rate | (7,843 | ) | 14,647 | 504 | ||||||||
Accrued liability at end of year | (110,123 | ) | (114,910 | ) | (3,956 | ) |
For the year ended December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Service cost | 24,397 | 14,467 | 498 | |||||||||
Interest cost | 3,725 | 1,910 | 66 | |||||||||
Expected return on plan assets | (243 | ) | - | - | ||||||||
Gain on settlement | (518 | ) | 248 | 8 | ||||||||
Net periodic benefit cost | 27,361 | 16,625 | 572 |
December 31, | ||||||||
2011 | 2012 | |||||||
Discount rate | 2.0% | 0.594% | ||||||
Rate of increase in compensation levels | 1.2% – 5.55% | 1.19% |
For the year ended | ||||||||
2011 | 2012 | |||||||
Discount rate | 2.0% | 0.594% | ||||||
Rate of increase in compensation levels | 1.2% – 5.55% | 1.19% | ||||||
Expected long-term rate of return on plan assets | 0.75% | 0% |
Year | Retirement benefit payments | |||||||
NT$ | US$ | |||||||
(in thousands) | ||||||||
2013 | 9,464 | 326 | ||||||
2014 | 9,482 | 326 | ||||||
2015 | 15,595 | 537 | ||||||
2016 | 9,304 | 320 | ||||||
2017 | 9,723 | 335 | ||||||
2018-2022 | 54,319 | 1,870 |
27. |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Changes in inventories | $ | 4,987,988 | 5,295,965 | |||||
Purchase of raw materials, merchandise and others | 246,263,207 | 256,750,838 | ||||||
Depreciation and amortization(1) | 63,627,377 | 75,266,069 | ||||||
Labor costs | 36,848,221 | 34,938,264 | ||||||
Utility expense | 14,037,928 | 14,312,194 | ||||||
Repairs & maintenance | 10,950,079 | 8,308,521 | ||||||
Rental and local tax expense | 3,045,216 | 2,696,178 | ||||||
Shipping costs | 2,970,313 | 3,105,088 | ||||||
Professional service fee | 2,019,584 | 2,612,537 | ||||||
Safety and environmental protection fee | 1,158,229 | 941,127 | ||||||
Supplies and others | 994,138 | 1,142,481 | ||||||
Miscellaneous expense | 614,790 | 777,637 | ||||||
Insurance expense | 554,825 | 463,421 | ||||||
Science Park management fee | 427,554 | 379,989 | ||||||
Others | 19,571,035 | 10,088,940 | ||||||
Total | $ | 408,070,484 | 417,079,249 |
28. |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Domestic operations | 5,104,098 | (60,223,738 | ) | (49,303,818 | ) | (1,697,205 | ) | |||||||||
Foreign operations | 364,282 | (9,400,072 | ) | (3,678,151 | ) | (126,615 | ) | |||||||||
5,468,380 | (69,623,810 | ) | (52,981,969 | ) | (1,823,820 | ) |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest income on bank deposits | $ | 285,404 | 390,919 | |||||
Interest income on government bonds with reverse repurchase agreements and others | 43,956 | 85,198 | ||||||
Rental income | 331,015 | 408,521 | ||||||
Compensation income | 404,371 | 460,975 | ||||||
Dividend income | 2,855 | 422,727 | ||||||
Grants | 637,386 | 583,752 | ||||||
Others | 743,477 | 839,451 | ||||||
$ | 2,448,464 | 3,191,543 |
29. | Other Gains and Losses |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Current income tax expense: | ||||||||||||||||
Domestic-regular tax | 944,513 | 88,635 | 107,708 | 3,708 | ||||||||||||
Domestic-surtax on undistributed earnings | 147,802 | (2,351 | ) | (35,664 | ) | (1,228 | ) | |||||||||
Foreign | 809,077 | 323,408 | 639,390 | 22,010 | ||||||||||||
Deferred income tax expense (benefit): | ||||||||||||||||
Domestic-regular tax | (596,891 | ) | 11,159,558 | 1,668,147 | 57,423 | |||||||||||
Domestic-surtax on undistributed earnings | (152,629 | ) | 62,579 | (132,641 | ) | (4,566 | ) | |||||||||
Foreign | (406,857 | ) | (139,475 | ) | 81,768 | 2,815 | ||||||||||
Income tax expense | 745,015 | 11,492,354 | 2,328,708 | 80,162 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Foreign exchange gains, net | $ | 2,642,219 | 1,988,284 | |||||
Losses on valuation of financial assets and liabilities measured at fair value through profit or loss, net | (1,723,574 | ) | (1,260,588 | ) | ||||
Gains on disposals of investments and financial assets, net | 1,813,751 | 614,285 | ||||||
Gains on disposals of investments in subsidiaries | 23,744 | - | ||||||
Gains (losses) on disposals of property, plant and equipment, net | 70,569 | (389,008 | ) | |||||
Impairment losses on investments and financial assets, net | (596,102 | ) | (1,782,414 | ) | ||||
Impairment losses on property, plant and equipment and investment property, net | (159,532 | ) | (3,169,644 | ) | ||||
Litigation expenses and other losses | (3,247,468 | ) | (6,666,055 | ) | ||||
$ | (1,176,393 | ) | (10,665,140 | ) |
30. | Finance Costs |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Expected income tax expense (benefit) | 929,624 | (11,836,048 | ) | (9,006,935 | ) | (310,049 | ) | |||||||||
Increase in investment tax credits (a) | (2,638,600 | ) | (1,556,038 | ) | (31,250 | ) | (1,076 | ) | ||||||||
Increase in valuation allowance (a) | 1,266,719 | 27,893,400 | 14,570,193 | 501,555 | ||||||||||||
Tax on undistributed retained earnings | 819,198 | (1,588,538 | ) | (3,172,350 | ) | (109,203 | ) | |||||||||
Effect of changes in statutory income tax rate | 1,552,898 | 544,351 | (98,914 | ) | (3,405 | ) | ||||||||||
Effect of different subsidiary income tax rate | 555,907 | (1,770,110 | ) | (2,375,253 | ) | (81,764 | ) | |||||||||
Tax holiday (b) | (477,400 | ) | (196,860 | ) | (189,813 | ) | (6,534 | ) | ||||||||
Losses (gains) from domestic long-term investment | (707,058 | ) | 92,648 | 1,080,343 | 37,189 | |||||||||||
Others | (556,273 | ) | (90,451 | ) | 1,552,687 | 53,449 | ||||||||||
Actual income tax expense | 745,015 | 11,492,354 | 2,328,708 | 80,162 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest expense on bonds | $ | 641,437 | 725,303 | |||||
Interest expense on long-term borrowings | 3,951,168 | 4,734,927 | ||||||
Interest expense on short-term borrowings | 190,227 | 270,983 | ||||||
$ | 4,782,832 | 5,731,213 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Inventories | 1,196,603 | 735,483 | 25,318 | |||||||||
Unrealized loss and expenses | 4,138,775 | 4,212,515 | 145,009 | |||||||||
Other current liabilities | 577,308 | 912,019 | 31,395 | |||||||||
Investment tax credits | 13,568,531 | 6,907,224 | 237,770 | |||||||||
Net operating loss carryforwards-regular tax | 17,987,690 | 26,904,340 | 926,139 | |||||||||
Net operating loss carryforwards-surtax on undistributed earnings | 1,647,445 | 4,848,981 | 166,918 | |||||||||
Convertible bonds | 131,770 | 217,679 | 7,493 | |||||||||
Property, plant and equipment | 5,793,902 | 6,236,678 | 214,688 | |||||||||
Others | 1,182,694 | 1,321,618 | 45,495 | |||||||||
Gross deferred tax assets | 46,224,718 | 52,296,537 | 1,800,225 | |||||||||
Valuation allowance | (43,513,482 | ) | (50,569,508 | ) | (1,740,775 | ) | ||||||
Net deferred tax assets | 2,711,236 | 1,727,029 | 59,450 |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Deferred tax liabilities: | ||||||||||||
Long-term investment—equity method | (402,314 | ) | (312,532 | ) | (10,758 | ) | ||||||
Goodwill | (1,042,495 | ) | (1,219,110 | ) | (41,966 | ) | ||||||
Property, plant and equipment | (875,354 | ) | (653,292 | ) | (22,489 | ) | ||||||
Cumulative translation adjustments | (542,961 | ) | (181,684 | ) | (6,254 | ) | ||||||
Unrealized exchange net gain | (20,860 | ) | (519,347 | ) | (17,878 | ) | ||||||
Others | (427,273 | ) | (416,309 | ) | (14,330 | ) | ||||||
Total deferred tax liabilities | (3,311,257 | ) | (3,302,274 | ) | (113,675 | ) | ||||||
Net deferred tax liabilities | (600,021 | ) | (1,575,245 | ) | (54,225 | ) |
December 31, | ||||||||||||
2011 | 2012 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in thousands) | ||||||||||||
Deferred tax assets-current | 190,116 | 736,201 | 25,343 | |||||||||
Deferred tax assets-noncurrent | 2,358,761 | 1,278,500 | 44,010 | |||||||||
Deferred tax liabilities-current | (30,079 | ) | (555,972 | ) | (19,138 | ) | ||||||
Deferred tax liabilities-noncurrent | (3,118,819 | ) | (3,033,974 | ) | (104,440 | ) | ||||||
(600,021 | ) | (1,575,245 | ) | (54,225 | ) |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of year | 19,855,487 | 17,646,493 | 43,513,482 | 1,497,882 | ||||||||||||
Net provisions charged to comprehensive income | 4,011,129 | 28,175,067 | 13,749,784 | 473,315 | ||||||||||||
Write-offs of deferred tax assets | (6,220,123 | ) | (2,308,078 | ) | (6,693,758 | ) | (230,422 | ) | ||||||||
Balance at end of year | 17,646,493 | 43,513,482 | 50,569,508 | 1,740,775 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Income tax expense from continuing operations | 745,015 | 11,492,354 | 2,328,708 | 80,162 | ||||||||||||
Other comprehensive income | (91,798 | ) | 184,554 | (390,885 | ) | (13,456 | ) | |||||||||
Total income taxes | 653,217 | 11,676,908 | 1,937,823 | 66,706 |
For the year ended December 31, | ||||||||||||||||
2010 | 2011 | 2012 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of year | 3,368 | 11,270 | - | - | ||||||||||||
Increase related to prior-year tax positions | 11,270 | - | - | - | ||||||||||||
Decrease related to prior-year tax positions | - | - | - | - | ||||||||||||
Settlements | (3,368 | ) | (11,270 | ) | - | - | ||||||||||
Balance at end of year | 11,270 | - | - | - |
31. | Financial Instruments |
(1) | The carrying amount of financial assets recognized in the consolidated statements of financial position. |
(2) | The amount of contingent liabilities as a result from the Company providing financial guarantee to its customers. |
December 31, 2011 | ||||||||||||
Cost | Accumulated depreciation | Carrying amount | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(in thousands) | ||||||||||||
Land | 9,385,200 | - | 9,385,200 | |||||||||
Buildings | 123,369,332 | (34,948,752 | ) | 88,420,580 | ||||||||
Machinery and equipment | 728,308,445 | (512,883,397 | ) | 215,425,048 | ||||||||
Other equipment and general assets | 61,679,902 | (54,723,053 | ) | 6,956,849 | ||||||||
Construction in progress | 8,279,012 | - | 8,279,012 | |||||||||
Prepayments for purchases of land and equipment | 19,986,045 | - | 19,986,045 | |||||||||
951,007,936 | (602,555,202 | ) | 348,452,734 |
December 31, 2012 | ||||||||||||
Cost | Accumulated depreciation | Carrying amount | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(in thousands) | ||||||||||||
Land | 9,163,769 | - | 9,163,769 | |||||||||
Buildings | 125,644,049 | (37,825,410 | ) | 87,818,639 | ||||||||
Machinery and equipment | 734,790,323 | (557,482,143 | ) | 177,308,180 | ||||||||
Other equipment and general assets | 70,176,203 | (62,533,169 | ) | 7,643,034 | ||||||||
Construction in progress | 9,332,931 | - | 9,332,931 | |||||||||
Prepayments for purchases of land and equipment | 15,003,942 | - | 15,003,942 | |||||||||
964,111,217 | (657,840,722 | ) | 306,270,495 |
(b) | Liquidity risk |
Contractual cash flows | 2014.1.1~ 2014.12.31 | 2015.1.1~ 2015.12.31 | 2016.1.1~ 2018.12.31 | 2019 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 3,457,174 | 3,457,174 | - | - | - | ||||||||||||||
Convertible bonds payable | 20,608,778 | - | 20,608,778 | - | - | |||||||||||||||
Long-term borrowings (including current installments) | 167,114,922 | 65,261,130 | 42,062,383 | 59,682,614 | 108,795 | |||||||||||||||
Refundable deposits | 950,958 | 36,671 | 240 | - | 914,047 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (16,909,871 | ) | (16,909,871 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 17,273,048 | 17,273,048 | - | - | - | |||||||||||||||
Interest rate swap contracts | 38,243 | 24,157 | 7,281 | 6,805 | - | |||||||||||||||
$ | 192,533,252 | 69,142,309 | 62,678,682 | 59,689,419 | 1,022,842 |
Contractual cash flows | 2013.1.1~ 2013.12.31 | 2014.1.1~ 2014.12.31 | 2015.1.1~ 2017.12.31 | 2018 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 8,620,050 | 8,620,050 | - | - | - | ||||||||||||||
Convertible bonds payable | 23,515,750 | - | - | 23,515,750 | - | |||||||||||||||
Long-term borrowings (including current installments) | 200,988,563 | 51,293,526 | 63,444,168 | 86,250,869 | - | |||||||||||||||
Refundable deposits | 1,033,644 | 10,684 | 3,791 | 17,586 | 1,001,583 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (18,673,156 | ) | (18,673,156 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 19,389,553 | 19,389,553 | - | - | - | |||||||||||||||
Interest rate swap contracts | 100,571 | 62,202 | 38,369 | - | - | |||||||||||||||
Options contracts | 62,208 | 62,208 | - | - | - | |||||||||||||||
$ | 235,037,183 | 60,765,067 | 63,486,328 | 109,784,205 | 1,001,583 |
Contractual cash flows | 2012.1.1~ 2012.12.31 | 2013.1.1~ 2013.12.31 | 2014.1.1~ 2016.12.31 | 2017 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
January 1, 2012 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 7,850,793 | 7,850,793 | - | - | - | ||||||||||||||
Bonds payable (including current installments) | 3,629,781 | 3,629,781 | - | - | - | |||||||||||||||
Convertible bonds payable | 24,455,540 | - | - | 24,455,540 | - | |||||||||||||||
Long-term borrowings (including current installments) | 209,567,304 | 49,006,279 | 50,447,029 | 110,113,996 | - | |||||||||||||||
Refundable deposits | 1,072,900 | 54,187 | - | - | 1,018,713 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (15,657,963 | ) | (15,657,963 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 15,584,516 | 15,584,516 | - | - | - | |||||||||||||||
Interest rate swap contracts | 292,136 | 121,642 | 100,343 | 70,151 | - | |||||||||||||||
Options contracts | 176,013 | 90,753 | 85,260 | - | - | |||||||||||||||
$ | 246,971,020 | 60,679,988 | 50,632,632 | 134,639,687 | 1,018,713 |
(c) | Currency risk |
(1) | The Company’s significant exposure to foreign currency risk was as follows: |
Foreign currence amounts | Exchange rate | NTD | ||||||||||
(in thousands) | ||||||||||||
December 31, 2013 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | $ | 2,328,517 | 30.03 | 69,925,366 | ||||||||
JPY | 21,032,926 | 0.2856 | 6,007,004 | |||||||||
EUR | 45,289 | 41.45 | 1,877,229 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,619,975 | 30.03 | 48,647,849 | |||||||||
JPY | 35,677,985 | 0.2856 | 10,189,633 | |||||||||
EUR | 756 | 41.45 | 31,336 | |||||||||
December 31, 2012 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | 2,664,861 | 29.126 | 77,616,741 | |||||||||
JPY | 26,173,221 | 0.3383 | 8,854,401 | |||||||||
EUR | 126,319 | 38.548 | 4,869,345 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,981,322 | 29.126 | 57,707,985 | |||||||||
JPY | 42,469,046 | 0.3383 | 14,367,278 | |||||||||
EUR | 10,341 | 38.548 | 398,625 | |||||||||
January 1, 2012 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | 2,476,516 | 30.29 | 75,013,670 | |||||||||
JPY | 32,197,451 | 0.3902 | 12,563,445 | |||||||||
EUR | 95,619 | 39.259 | 3,753,906 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,539,705 | 30.29 | 46,637,664 | |||||||||
JPY | 35,237,397 | 0.3902 | 13,749,632 | |||||||||
EUR | 15,458 | 39.259 | 606,866 |
(2) | Sensitivity analysis |
(d) | Interest rate analysis |
(e) | Fair value |
(1) | Fair value and carrying amount |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 700,730 | 700,730 | 1,577,024 | 1,577,024 | 1,924,569 | 1,924,569 | |||||||||||||||||
Foreign currency forward contracts | 48,850 | 48,850 | 23,621 | 23,621 | 85,621 | 85,621 | ||||||||||||||||||
Interest rate swap contracts | - | - | - | - | 3 | 3 | ||||||||||||||||||
Options contracts | - | - | 66 | 66 | 172 | 172 | ||||||||||||||||||
Refundable deposits (excluding guarantee for lawsuits) | 140,386 | 140,386 | 297,692 | 297,692 | 404,751 | 404,751 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Long-term borrowings (including current installments) | 161,737,175 | 161,742,386 | 192,908,412 | 192,932,107 | 198,957,069 | 198,972,893 | ||||||||||||||||||
Convertible bonds payable | 19,513,820 | 18,477,322 | 21,598,083 | 18,292,497 | 21,787,128 | 16,649,444 | ||||||||||||||||||
Current installments of bonds payable | - | - | - | - | 3,564,383 | 3,638,651 | ||||||||||||||||||
Foreign currency forward contracts | 420,861 | 420,861 | 804,001 | 804,001 | 17,523 | 17,523 | ||||||||||||||||||
Interest rate swap contracts | 17,062 | 17,062 | 58,547 | 58,547 | 198,401 | 198,401 | ||||||||||||||||||
Options contracts | - | - | 54,000 | 54,000 | 176,185 | 176,185 | ||||||||||||||||||
Guarantee deposits received | 950,958 | 950,958 | 1,033,644 | 1,033,644 | 1,072,900 | 1,072,900 |
Derivative and hedging activities | Unrealized gains (losses) on securities | Cumulative translation djustments | Defined benefit plan | Accumulated other comprehensive income (loss) | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
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 | |||||||||||||
Net current-period change | 64,742 | (769,842 | ) | 934,721 | (63,557 | ) | 166,064 | |||||||||||||
Balance at December 31, 2011 | (63,881 | ) | 74,530 | 2,012,616 | (624,936 | ) | 1,398,329 | |||||||||||||
Net current-period change | 111,781 | 37,640 | (1,087,083 | ) | (289,902 | ) | (1,227,564 | ) | ||||||||||||
Balance at December 31, 2012 | 47,900 | 112,170 | 925,533 | (914,838 | ) | 170,765 |
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 | ) |
For the year ended December 31, 2011 | ||||||||||||
Before tax amount | Tax (expense) benefit | Net-of-tax amount | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Derivative and hedging activities | 78,002 | (13,260 | ) | 64,742 | ||||||||
Unrealized gains on securities | (877,897 | ) | - | (877,897 | ) | |||||||
Less: reclassification adjustment for gains realized in income | 108,055 | - | 108,055 | |||||||||
Cumulative translation adjustments | 1,129,739 | (195,018 | ) | 934,721 | ||||||||
Defined benefit plan | (87,281 | ) | 23,724 | (63,557 | ) | |||||||
Net current-period changes | 350,618 | (184,554 | ) | 166,064 |
For the year ended December 31, 2012 | ||||||||||||
Before tax amount | Tax (expense) benefit | Net-of-tax amount | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Derivative and hedging activities | 134,676 | (22,895 | ) | 111,781 | ||||||||
Unrealized gains on securities | 164,987 | (4,298 | ) | 160,689 | ||||||||
Less: reclassification adjustment for gains realized in income | (123,049 | ) | - | (123,049 | ) | |||||||
Cumulative translation adjustments | (1,412,386 | ) | 325,303 | (1,087,083 | ) | |||||||
Defined benefit plan | (382,677 | ) | 92,775 | (289,902 | ) | |||||||
Net current-period changes | (1,618,449 | ) | 390,885 | (1,227,564 | ) |
For the year ended December 31, | ||||||||||||
2010 | 2011 | 2012 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(in thousands, except for per share data) | ||||||||||||
Net income (loss) attributable to stockholders of AU Optronics Corp. | 4,244,323 | (80,948,225 | ) | (54,471,882 | ) | |||||||
Weighted-average number of shares outstanding during the year | 8,827,046 | 8,827,046 | 8,827,046 | |||||||||
Basic earnings (loss) per share: | ||||||||||||
Net income (loss) | 0.48 | (9.17 | ) | (6.17 | ) |
December 31, 2011 | ||||||||||||||||
Cost | Accumulated amortization | Carrying amount | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents and licensing fees | 25,505,115 | 21,533,189 | 3,971,926 | 131,217 | ||||||||||||
Core technologies | 3,675,700 | 3,675,700 | - | - | ||||||||||||
29,180,815 | 25,208,889 | 3,971,926 | 131,217 |
December 31, 2012 | ||||||||||||||||
Cost | Accumulated amortization | Carrying amount | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in thousands) | ||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Patents and licensing fees | 25,950,251 | 22,297,948 | 3,652,303 | 125,725 | ||||||||||||
Core technologies | 3,675,700 | 3,675,700 | - | - | ||||||||||||
29,625,951 | 25,973,648 | 3,652,303 | 125,725 |
Year | NT$ | US$ | ||||||
(in thousands) | ||||||||
2013 | 762,198 | 26,238 | ||||||
2014 | 670,343 | 23,075 | ||||||
2015 | 637,261 | 21,937 | ||||||
2016 | 623,327 | 21,457 | ||||||
2017 | 434,413 | 14,954 | ||||||
Thereafter | 524,761 | 18,064 | ||||||
Total | 3,652,303 | 125,725 |
Fair value |
Level 1 inputs: Unadjusted quoted prices for identical assets or liabilities in active markets accessible to the entity at the measurement date. |
Level 2 inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 400,011 | - | 300,719 | 700,730 | |||||||||||
Foreign currency forward contracts | - | 48,850 | - | 48,850 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 420,861 | - | 420,861 | ||||||||||||
Interest rate swap contracts | - | 17,062 | - | 17,062 | ||||||||||||
Long-term borrowings (including current installments) | - | 161,742,386 | - | 161,742,386 | ||||||||||||
Convertible bonds payable | 18,477,322 | - | - | 18,477,322 | ||||||||||||
December 31, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 235,134 | - | 1,341,890 | 1,577,024 | |||||||||||
Foreign currency forward contracts | - | 23,621 | - | 23,621 | ||||||||||||
Options contracts | - | 66 | - | 66 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 804,001 | - | 804,001 | ||||||||||||
Interest rate swap contracts | - | 58,547 | - | 58,547 | ||||||||||||
Options contracts | - | 54,000 | - | 54,000 | ||||||||||||
Long-term borrowings (including current installments) | - | 192,932,107 | - | 192,932,107 | ||||||||||||
Convertible bonds payable | 18,292,497 | - | - | 18,292,497 | ||||||||||||
January 1, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 436,774 | - | 1,487,795 | 1,924,569 | |||||||||||
Foreign currency forward contracts | - | 85,621 | - | 85,621 | ||||||||||||
Interest rate swap contracts | - | 3 | - | 3 | ||||||||||||
Options contracts | - | 172 | - | 172 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 17,523 | - | 17,523 | ||||||||||||
Interest rate swap contracts | - | 198,401 | - | 198,401 | ||||||||||||
Options contracts | - | 176,185 | - | 176,185 | ||||||||||||
Long-term borrowings (including current installments) | - | 198,972,893 | - | 198,972,893 |
Convertible bonds payable | 16,649,444 | - | - | 16,649,444 | ||||||||||||
Current installments of bonds payable | - | 3,638,651 | - | 3,638,651 |
Determination of |
(4) | Reconciliation for recurring fair value measurements categorized within Level 3 |
Available-for- sale financial assets without quoted market prices | ||||
(in thousands) | ||||
Balance at January 1, 2012 | $ | 1,487,795 | ||
Net realized/unrealized losses included in: | ||||
Profit or loss | (11,512 | ) | ||
Other comprehensive income | - | |||
Sales | (65,554 | ) | ||
Effect of change in exchange rate | (68,839 | ) | ||
Balance at December 31, 2012 | 1,341,890 | |||
Net realized/unrealized gains included in: | ||||
Profit or loss | 282,558 | |||
Other comprehensive income | - | |||
Purchases | 209,478 | |||
Sales | (1,063,157 | ) | ||
Transfer out (i) | (349,799 | ) | ||
Effect of change in exchange rate | (120,251 | ) | ||
Balance at December 31, 2013 | $ | 300,719 |
(i) | Investment in securities with a fair value of $353,836 thousand were transferred from Level 3 to Level 1 during the year of 2013 as a result of increased activity in the market for securities that were not being actively traded in the prior year. |
(ii) | Change in unrealized losses, which were included in profit or loss, relating to those available-for-sale assets without quoted market prices held at December 31, 2013 and 2012 were $(412,563) thousand and $(23,108) thousand, respectively. |
Fair value measurements at reporting date using | ||||||||||||||||
December 31, 2011 | Quoted prices in active market for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Foreign currency forward contracts | 85,621 | - | 85,621 | - | ||||||||||||
Options contracts | 172 | - | 172 | - | ||||||||||||
Interest rate swap contracts | 3 | - | 3 | - | ||||||||||||
Available-for-sale financial assets-noncurrent | 436,774 | 436,774 | - | - |
Fair value measurements at reporting date using | ||||||||||||||||
December 31, 2011 | 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) | ||||||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | 17,523 | - | 17,523 | - | ||||||||||||
Interest rate swap contracts | 198,401 | - | 198,401 | - | ||||||||||||
Options contracts | 176,185 | - | 176,185 | - | ||||||||||||
Fair value measurements at reporting date using | ||||||||||||||||
December 31, 2012 | 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 | 23,621 | - | 23,621 | - | ||||||||||||
Options contracts | 66 | - | 66 | - | ||||||||||||
Available-for-sale financial assets-noncurrent | 235,134 | 235,134 | - | - | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | 804,001 | - | 804,001 | - | ||||||||||||
Interest rate swap contracts | 58,547 | - | 58,547 | - | ||||||||||||
Options contracts | 54,000 | - | 54,000 | - |
Fair value measurements at reporting date using | ||||||||||||||||||||
December 31, 2011 | Quoted prices in active market for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | For the Year Ended December 31, 2011 Impairment Loss | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Financial assets carried at cost-noncurrent | 1,481,390 | - | - | 1,481,390 | 43,759 | |||||||||||||||
Equity-method investments | 1,185,244 | 1,185,244 | - | - | 2,161,723 |
Fair value measurements at reporting date using | ||||||||||||||||||||
December 31, 2012 | Quoted prices in active market for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | For the Year Ended December 31, 2012 Impairment Loss | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Financial assets carried at cost-noncurrent | 1,341,523 | - | - | 1,341,523 | 23,108 | |||||||||||||||
Equity-method investments | 2,218,694 | 2,218,694 | - | - | 699,891 |
Description of |
(a) | Risk management framework |
(b) | Financial risk information |
(1) | Credit risk |
(2) | Liquidity risk |
(3) | Market risk |
(i) | Currency risk |
(ii) | Interest rate risk |
(iii) | Equity price risk |
33. | Capital Management |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Total liabilities | $ | 311,845,715 | 378,859,660 | 396,894,918 | ||||||||
Total equity | 152,990,220 | 136,148,799 | 191,550,583 | |||||||||
Interest-bearing debts | 184,708,169 | 223,126,545 | 232,159,373 | |||||||||
Debt-to-equity ratio | 204% | 278% | 207% | |||||||||
Interest-bearing debt-to-equity ratio | 121% | 164% | 121% |
34. | Related-party Transactions |
(a) | Compensation to executive officers |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Short-term employee benefits | $ | 232,064 | 198,077 | |||||
Post-employment benefit | 3,062 | 3,139 | ||||||
Termination benefits | - | 895 | ||||||
$ | 235,126 | 202,111 |
(b) | Except as disclosed in the consolidated financial statements and other footnotes, the significant related party transactions were as follows: |
(1) | Sales |
Sales | Receivables from related parties | |||||||||||||||||||
For the years ended December 31, | December 31, | December 31, | January 1, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Associates | $ | 28,397,655 | 33,927,270 | 2,591,012 | 5,805,498 | 5,869,246 | ||||||||||||||
Joint ventures | 4,116,521 | 4,162,424 | 441,894 | 385,581 | 914,359 | |||||||||||||||
$ | 32,514,176 | 38,089,694 | 3,032,906 | 6,191,079 | 6,783,605 |
(2) | Purchases |
Purchases | Payables to related parties | |||||||||||||||||||
For the years ended December 31, | December 31, | December 31, | January 1, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Associates | $ | 53,673,936 | 54,358,330 | 14,861,035 | 15,725,450 | 17,428,741 | ||||||||||||||
Joint ventures | 730,107 | 531,269 | 91,541 | 89,478 | 25,438 | |||||||||||||||
$ | 54,404,043 | 54,889,599 | 14,952,576 | 15,814,928 | 17,454,179 |
(3) | Disposal of property, plant and equipment, operating leases, and others |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Associates | $ | 16,815 | 30,571 | |||||
Joint ventures | 16,291 | 49,639 | ||||||
$ | 33,106 | 80,210 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 86,442 | 68,528 | 114,383 | ||||||||
Joint ventures | 6,976 | 22,657 | 77,116 | |||||||||
$ | 93,418 | 91,185 | 191,499 |
(4) | Acquisition of property, plant and equipment and others |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 70,552 | 76,065 | 179,254 | ||||||||
Joint ventures | - | - | 981 | |||||||||
$ | 70,552 | 76,065 | 180,235 |
35. | Pledged Assets |
Pledged assets | Pledged to secure | December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||||
Restricted cash in banks (classified as other financial assets)(1) | R&D projects, oil purchases and guarantees for customs duties | $ | 217,383 | 410,592 | 158,509 | |||||||||
Secured deposit (classified as other current assets) | Guarantees for lawsuit | - | 4,778,288 | 4,778,288 | ||||||||||
Land and building (including investment property) | Long-term borrowings | 75,986,659 | 79,807,136 | 92,496,496 | ||||||||||
Machinery, equipment and prepayments for equipment | Long-term borrowings and bonds payable | 84,579,427 | 110,411,432 | 162,782,620 | ||||||||||
Available-for-sale financial assets | Long-term borrowings | - | 2,829 | 3,309 | ||||||||||
$ | 160,783,469 | 195,410,277 | 260,219,222 |
36. | Commitments and Contingencies |
(a) | Outstanding letters of credit |
Currency | December 31, 2013 | |||
(in thousands) | ||||
USD | 15,718 | |||
JPY | 822,330 |
(b) | Technology licensing agreements |
(c) | Purchase commitments |
(d) | Litigation |
(1) | Alleged patent infringements |
(2) | Investigation for alleged violation of antitrust and competition laws |
(3) | Antitrust civil actions lawsuits in the United States and Canada |
(e) | Sales agreements |
(f) | Others |
(1) | On January 28, 2013, Copytele Inc. (“Copytele”), filed a complaint against AUO, AUUS, E Ink Holdings Inc and E Ink Corporation in the Northern District of California Court, claiming breach of contract, fraud and other alleged anti-competitive acts. Copytele is seeking, among other things, unspecified monetary damages. The parties have agreed to arbitration and the case is proceeding to arbitration. The final outcome of the arbitration will depend on further court proceedings. |
(2) | There have been environmental proceedings relating to the development project of the Central Taiwan Science Park in Houli, Taichung, which AUO’s second 8.5-generation fab is located at and which has been established since 2010. On September 2, 2010, the Environmental Protection Administration of the Executive Yuan of Taiwan (“EPA”) issued its official announcement of the review conclusion of the environmental impact statement (“2010 conclusion of environmental assessment”) regarding the third phase development area in the Central Taiwan Science Park (Houli base-the portion of Seven Star Farm) (“Project”). On September 6, 2010, the National Science Council of the ROC Executive Yuan (“NSC”) issued the development approval (“2010 development approval”) to the developer, i.e., the Central Taiwan Science Park Development Office (“CTSP”). Six residents in Houli District, Taichung City objected to the administrative dispositions of the 2010 conclusion of the environmental assessment and 2010 development approval and then filed an administrative appeal, but it was overruled and then they filed an administrative litigation, but it was also overruled by the Taipei High Administrative Court (Case No. Taipei High Administrative Court Year 100 Su-Tzu No. 118). Subsequently, the plaintiffs lodged an appeal to the Supreme Administrative Court and the Supreme Administrative Court reversed the judgment of the Taipei High Administrative Court (Case No. Supreme Administrative Court Year 102 Pan-Tsu No. 120) and remanded the case to the Taipei High Administrative Court. The case is pending in the Taipei High Administrative Court. On January 22, 2014, the EPA announced that, in light of the showing respect to the above mentioned judgment of the Supreme Administrative Court, it revokes the 2010 conclusion of environmental assessment and the effective date of revocation will be determined separately based on the principle of protection of reliance. The Project was sent to the environmental impact assessment review commission of the EPA and the review commission concluded that the Project shall proceed to the second phase environmental impact assessment and the 2010 conclusion of environmental assessment will cease to be effective as of the day at which EPA issues its official announcement of the environmental impact assessment report of the Project and serves the review conclusion summary of the second phase environmental impact assessment. Until EPA’s official announcement of the environmental impact assessment report and the review conclusion summary, the developer, i.e. the CTSP shall implement strictly in accordance with the 2010 conclusion of the environmental assessment. Preliminarily based on the principle of protection of reliance under the Administrative law and in light of the relevant approvals issued by the government to us, currently management does not believe that this event will have a material adverse effect on company’s operations but will continue to monitor if there will be any material adverse effect on company’s operations as the event develops. |
37. | Segment, Geographic and Revenue Information |
(a) | Operating segment information |
For the year ended December 31, 2013 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 398,836,176 | 17,526,829 | 416,363,005 | ||||||||
Depreciation and amortization | $ | 59,650,081 | 3,987,666 | 63,637,747 | ||||||||
Inventory write-down | $ | 5,051,554 | 54,977 | 5,106,531 | ||||||||
Segment profit (loss) (1) | $ | 12,017,876 | (3,725,355 | ) | 8,292,521 | |||||||
Other income | 2,448,464 | |||||||||||
Other gains and losses | (1,176,393 | ) | ||||||||||
Finance costs | (4,782,832 | ) | ||||||||||
Share of profit of equity-accounted investees | 454,268 | |||||||||||
Consolidated profit before income tax | $ | 5,236,028 | ||||||||||
For the year ended December 31, 2012 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 367,120,352 | 11,350,583 | 378,470,935 | ||||||||
Depreciation and amortization | $ | 70,655,321 | 4,621,118 | 75,276,439 | ||||||||
Inventory write-down | $ | 4,766,239 | 114,171 | 4,880,410 | ||||||||
Segment loss (1) | $ | (30,330,814 | ) | (8,277,500 | ) | (38,608,314 | ) | |||||
Other income | 3,191,543 | |||||||||||
Other gains and losses | (10,665,140 | ) | ||||||||||
Finance costs | (5,731,213 | ) | ||||||||||
Share of profit of equity-accounted investees | 319,061 | |||||||||||
Consolidated loss before income tax | $ | (51,494,063 | ) |
(1) | There were no intersegment revenues or other transactions between operating segments for the years ended December 31, 2013 and 2012. |
(b) | Geographic information |
(1) | Net revenue |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Taiwan | $ | 143,549,414 | 150,790,438 | |||||
PRC | 141,951,316 | 114,469,451 | ||||||
Japan | 42,562,624 | 14,864,249 | ||||||
Singapore | 23,280,753 | 31,397,387 | ||||||
United States of America | 13,751,386 | 15,852,540 | ||||||
Korea | 12,574,058 | 18,864,208 | ||||||
Other foreign countries | 38,693,454 | 32,232,662 | ||||||
$ | 416,363,005 | 378,470,935 |
(2) | Consolidated noncurrent assets (1) |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
Taiwan | $ | 211,496,964 | 248,284,493 | 290,176,184 | ||||||||
PRC | 42,556,298 | 42,893,682 | 40,874,169 | |||||||||
Other foreign countries | 37,325,991 | 44,576,514 | 49,594,776 | |||||||||
$ | 291,379,253 | 335,754,689 | 380,645,129 |
(1) | Noncurrent assets are not inclusive of financial instruments, deferred tax assets, and pension-related assets. |
(c) | Major customer information |
For the years ended December 31, | ||||||||||||||||
2013 | % | 2012 | % | |||||||||||||
(in thousands) | ||||||||||||||||
Customer A | $ | 57,460,634 | 14 | 58,022,522 | 15 | |||||||||||
Customer B | 45,662,754 | 11 | 4,326,294 | 1 |
$ | 103,123,388 | 25 | 62,348,816 | 16 |
(d) | The consolidated net revenue by principal products was as follows: |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Panels for LCD Televisions(1) | $ | 188,428,209 | 168,892,202 | |||||
Panels for Mobile PCs | 78,376,753 | 72,373,580 | ||||||
Panels for Consumer Electronics Products | 63,271,788 | 57,746,542 | ||||||
Panels for Monitors | 59,564,195 | 59,575,998 | ||||||
Others(2) | 26,722,060 | 19,882,613 | ||||||
Total | $ | 416,363,005 | 378,470,935 |
(1) | Includes sales from panels, TV sets and other related products for LCD televisions. |
(2) | Includes sales from solar business unit, from sales of raw materials, components and from service charges. |
38. | Subsequent event |
39. | Explanation of transition to IFRS |
(a) | Reconciliation of equity |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 77,425,691 | (770,016 | ) | 76,655,675 | Cash and cash equivalents | 1. | ||||||||||
Financial assets measured at fair value-current | 23,621 | - | 23,621 | Financial assets measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts receivable, net | 36,357,450 | - | 36,357,450 | Notes and accounts receivable, net | |||||||||||||
Receivables from related parties, net | 6,191,079 | - | 6,191,079 | Receivables from related parties, net | |||||||||||||
Other receivables from related parties | 91,185 | - | 91,185 | Other receivables from related parties | |||||||||||||
- | - | 65,832 | 65,832 | Income taxes receivable | |||||||||||||
Inventories, net | 42,585,982 | - | 42,585,982 | Inventories | |||||||||||||
Other current financial assets | 1,615,510 | 770,016 | 2,385,526 | Other current financial assets | 1.8. | ||||||||||||
Equity investment held for sales | 116,390 | - | 116,390 | Noncurrent assets held for sale | |||||||||||||
Prepayments and other current assets | 9,665,336 | (65,832 | ) | 9,599,504 | Other current assets | ||||||||||||
Deferred tax assets – current | 1,663,795 | (1,663,795 | ) | - | - | 2. | |||||||||||
Total current assets | 175,736,039 | (1,663,795 | ) | 174,072,244 | Total current assets | ||||||||||||
Long-term investments: | |||||||||||||||||
Financial assets measured at fair value-noncurrent | 66 | - | 66 | Financial assets measured at fair value through profit or loss -noncurrent | |||||||||||||
Available-for-sale financial assets-noncurrent | 235,134 | 1,341,890 | 1,577,024 | Available-for-sale financial assets-noncurrent | |||||||||||||
Financial assets carried at cost-noncurrent | 1,341,890 | (1,341,890 | ) | - | - | ||||||||||||
Equity-method investments | 13,811,600 | 7,581 | 13,819,181 | Investment in equity-accounted investees | 3. | ||||||||||||
Property, plant and equipment, net | 313,992,766 | 1,525,451 | 315,518,217 | Property, plant and equipment, net | 5.7. | ||||||||||||
- | - | 1,265,584 | 1,265,584 | Investment property, net | 5. | ||||||||||||
Intangible assets | 14,932,898 | (11,280,595 | ) | 3,652,303 | Intangible assets | 15. | |||||||||||
Other assets: | |||||||||||||||||
Deferred tax assets-noncurrent | 12,341,891 | (11,276,041 | ) | 1,065,850 | Deferred tax assets | 2.16. | |||||||||||
Deferred charges | 2,955,729 | (2,955,729 | ) | - | - | 6.7. | |||||||||||
Idle assets, net | 2,364,803 | (2,364,803 | ) | - | - | 5. | |||||||||||
Long-term prepayments for materials and others | 2,089,697 | 1,948,293 | 4,037,990 | Other noncurrent assets | 6.7.8.10. |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Total noncurrent assets | 364,066,474 | (23,130,259 | ) | 340,936,215 | Total noncurrent assets | ||||||||||||
Total Assets | $ | 539,802,513 | (24,794,054 | ) | 515,008,459 | Total Assets | |||||||||||
Current liabilities: | |||||||||||||||||
Short-term borrowings | 8,620,050 | - | 8,620,050 | Short-term borrowings | |||||||||||||
Financial liabilities measured at fair value-current | 804,001 | - | 804,001 | Financial liabilities measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts payable | 65,695,688 | - | 65,695,688 | Notes and accounts payable | |||||||||||||
Accounts payables to related parties | 15,814,928 | - | 15,814,928 | Accounts payables to related parties | |||||||||||||
Equipment and construction in progress payable | 14,597,502 | - | 14,597,502 | Equipment and construction payable | |||||||||||||
Other payables to related parties | 76,011 | - | 76,011 | Other payables to related parties | |||||||||||||
- | - | 246,548 | 246,548 | Current income tax liabilities | |||||||||||||
- | - | 20,452,981 | 20,452,981 | Provisions-current | |||||||||||||
Accrued expenses and other current liabilities | 40,495,553 | (20,072,128 | ) | 20,423,425 | Other current liabilities | 9. | |||||||||||
Current installments of long- term borrowings | 45,490,589 | - | 45,490,589 | Current installments of long- term borrowings | |||||||||||||
Total current liabilities | 191,594,322 | 627,401 | 192,221,723 | Total current liabilities | |||||||||||||
Long-term liabilities: | |||||||||||||||||
Financial liabilities measured at fair value-noncurrent | 54,000 | - | 54,000 | Financial liabilities measured at fair value through profit or loss-noncurrent | |||||||||||||
Hedging derivative financial liabilities-noncurrent | 58,547 | - | 58,547 | Hedging derivative financial liabilities-noncurrent | |||||||||||||
Convertible bonds payable | 21,598,083 | - | 21,598,083 | Convertible bonds payable | |||||||||||||
Long-term borrowings, excluding current installments | 147,417,823 | - | 147,417,823 | Long-term borrowings, excluding current installments | |||||||||||||
- | - | 8,658,360 | 8,658,360 | Provisions-noncurrent | |||||||||||||
- | - | 816,402 | 816,402 | Deferred tax liabilities | 2.16. | ||||||||||||
Long-term collection in advance and others | 6,421,035 | 1,613,687 | 8,034,722 | Other noncurrent liabilities | 10. | ||||||||||||
Total long-term liabilities | 175,549,488 | 11,088,449 | 186,637,937 | Total noncurrent liabilities | |||||||||||||
Other liabilities | 9,423,221 | (9,423,221 | ) | - | - | ||||||||||||
Total liabilities | 376,567,031 | 2,292,629 | 378,859,660 | Total liabilities | |||||||||||||
Equity: | |||||||||||||||||
Capital Stock: | |||||||||||||||||
Common stock, $10 par value | 88,270,455 | - | 88,270,455 | Common stock, $10 par value | |||||||||||||
Capital surplus | 114,384,422 | (1,868,439 | ) | 112,515,983 | Capital surplus | 3.4.11. | |||||||||||
Retained earnings: |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Accumulated deficit | (54,614,704 | ) | (25,589,747 | ) | (80,204,451 | ) | Accumulated deficit | 17. | |||||||||
Others | 1,110,682 | 393,518 | 1,504,200 | Other components of equity | 3. | ||||||||||||
149,150,855 | (27,064,668 | ) | 122,086,187 | ||||||||||||||
Minority interests | 14,084,627 | (22,015 | ) | 14,062,612 | Non-controlling interests | ||||||||||||
Total stockholders’ equity | 163,235,482 | (27,086,683 | ) | 136,148,799 | Total equity | ||||||||||||
Total liabilities and stockholders’ equity | $ | 539,802,513 | (24,794,054 | ) | 515,008,459 | Total liabilities and equity |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 90,836,668 | (783,400 | ) | 90,053,268 | Cash and cash equivalents | 1. | ||||||||||
Financial assets measured at fair value -current | 85,621 | - | 85,621 | Financial assets measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts receivable, net | 44,747,926 | - | 44,747,926 | Notes and accounts receivable, net | |||||||||||||
Receivables from related parties, net | 6,783,605 | - | 6,783,605 | Receivables from related parties, net | |||||||||||||
Other receivables from related parties | 191,499 | - | 191,499 | Other receivables from related parties | |||||||||||||
- | - | 72,413 | 72,413 | Income taxes receivable | |||||||||||||
Inventories, net | 47,881,948 | - | 47,881,948 | Inventories | |||||||||||||
Other current financial assets | 1,280,078 | 803,400 | 2,083,478 | Other current financial assets | 1.8. | ||||||||||||
Prepayments and other current assets | 8,562,426 | (72,413 | ) | 8,490,013 | Other current assets | ||||||||||||
Deferred tax assets – current | 2,304,158 | (2,304,158 | ) | - | - | 2. | |||||||||||
Total current assets | 202,673,929 | (2,284,158 | ) | 200,389,771 | Total current assets | ||||||||||||
Long-term investments: | |||||||||||||||||
Financial assets measured at fair value -noncurrent | 175 | - | 175 | Financial assets measured at fair value through profit or loss-noncurrent | |||||||||||||
Available-for-sale financial assets- noncurrent | 436,774 | 1,487,795 | 1,924,569 | Available-for-sale financial assets-noncurrent | |||||||||||||
Financial assets carried at cost-noncurrent | 1,487,795 | (1,487,795 | ) | - | - | ||||||||||||
Equity-method investments | 15,917,335 | 4,490 | 15,921,825 | Investment in equity-accounted investees | 3. | ||||||||||||
Property, plant and equipment, net | 358,478,963 | 881,939 | 359,360,902 | Property, plant and equipment, net | 5.7. | ||||||||||||
- | - | 1,275,954 | 1,275,954 | Investment property, net | 5. | ||||||||||||
Intangible assets | 15,428,102 | (11,280,595 | ) | 4,147,507 | Intangible assets | 15. | |||||||||||
Other assets: | |||||||||||||||||
Deferred tax assets-noncurrent | 11,064,101 | (10,222,827 | ) | 841,274 | Deferred tax assets | 2.16. | |||||||||||
Deferred charges | 3,321,469 | (3,321,469 | ) | - | - | 6.7. | |||||||||||
Idle assets, net | 1,697,615 | (1,697,615 | ) | - | - | 5. |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Long-term prepayments for materials and others | 2,271,886 | 2,311,638 | 4,583,524 | Other noncurrent assets | 6.7.8.10. | ||||||||||||
Total noncurrent assets | 410,104,215 | (22,048,485 | ) | 388,055,730 | Total noncurrent assets | ||||||||||||
Total Assets | $ | 612,778,144 | (24,332,643 | ) | 588,445,501 | Total Assets | |||||||||||
Current liabilities: | |||||||||||||||||
Short-term borrowings | 7,850,793 | - | 7,850,793 | Short-term borrowings | |||||||||||||
Financial liabilities measured at fair value -current | 17,523 | - | 17,523 | Financial liabilities measured at fair value through profit or loss -current | |||||||||||||
Notes and accounts payable | 65,244,893 | - | 65,244,893 | Notes and accounts payable | |||||||||||||
Accounts payables to related parties | 17,454,179 | - | 17,454,179 | Accounts payables to related parties | |||||||||||||
Equipment and construction in progress payable | 18,761,731 | - | 18,761,731 | Equipment and construction payable | |||||||||||||
Other payables to related parties | 168,004 | - | 168,004 | Other payables to related parties | |||||||||||||
- | - | 415,122 | 415,122 | Current income tax liabilities | |||||||||||||
- | - | 25,406,821 | 25,406,821 | Provisions-current | 14. | ||||||||||||
Accrued expenses and other current liabilities | 47,295,070 | (21,478,839 | ) | 25,816,231 | Other current liabilities | 9. | |||||||||||
Current installments of bonds payable | 3,564,383 | - | 3,564,383 | Current installments of bonds payable | |||||||||||||
Current installments of long-term borrowings | 42,868,289 | - | 42,868,289 | Current installments of long-term borrowings | |||||||||||||
Total current liabilities | 203,224,865 | 4,343,104 | 207,567,969 | Total current liabilities | |||||||||||||
Long-term liabilities: | |||||||||||||||||
Financial liabilities measured at fair value -noncurrent | 176,226 | - | 176,226 | Financial liabilities measured at fair value through profit or loss-noncurrent | |||||||||||||
Hedging derivative financial liabilities- noncurrent | 198,360 | - | 198,360 | Hedging derivative financial liabilities-noncurrent | |||||||||||||
Convertible bonds payable | 21,787,128 | - | 21,787,128 | Convertible bonds payable | |||||||||||||
Long-term borrowings, excluding current installments | 156,088,780 | - | 156,088,780 | Long-term borrowings, excluding current installments | |||||||||||||
- | - | 1,183,461 | 1,183,461 | Provisions-noncurrent |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
- | - | 446,194 | 446,194 | Deferred tax liabilities | 2.16. | ||||||||||||
Long-term collection in advance and others | 7,908,240 | 1,538,560 | 9,446,800 | Other noncurrent liabilities | 10. | ||||||||||||
Total long-term liabilities | 186,158,734 | 3,168,215 | 189,326,949 | Total noncurrent liabilities | |||||||||||||
Other liabilities | 2,117,607 | (2,117,607 | ) | - | - | ||||||||||||
Total liabilities | 391,501,206 | 5,393,712 | 396,894,918 | Total liabilities | |||||||||||||
Equity: | |||||||||||||||||
Capital Stock: | |||||||||||||||||
Common stock, $10 par value | 88,270,455 | - | 88,270,455 | Common stock, $10 par value | |||||||||||||
Capital surplus | 117,709,063 | (2,721,275 | ) | 114,987,788 | Capital surplus | 4.11. | |||||||||||
Retained earnings: | |||||||||||||||||
Accumulated deficit | (2,472,483 | ) | (27,671,968 | ) | (30,144,451 | ) | Accumulated deficit | 17. | |||||||||
Others | 1,881,681 | 684,346 | 2,566,027 | Other components of equity | 3. | ||||||||||||
205,388,716 | (29,708,897 | ) | 175,679,819 | ||||||||||||||
Minority interests | 15,888,222 | (17,458 | ) | 15,870,764 | Non-controlling interests | ||||||||||||
Total stockholders’ equity | 221,276,938 | (29,726,355 | ) | 191,550,583 | Total equity | ||||||||||||
Total liabilities and stockholders’ equity | $ | 612,778,144 | (24,332,643 | ) | 588,445,501 | Total liabilities and equity |
(b) | Reconciliation of comprehensive income for the year ended December 31, 2012. |
For the year ended December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Net sales | $ | 378,470,935 | - | 378,470,935 | Net revenue | ||||||||||||
Cost of goods sold | (387,145,972 | ) | (4,447,859 | ) | (391,593,831 | ) | Cost of sales | 5.9.10.12.13. | |||||||||
Gross loss | (8,675,037 | ) | (4,447,859 | ) | (13,122,896 | ) | Gross loss | ||||||||||
Selling expenses | (9,802,235 | ) | 3,425,056 | (6,377,179 | ) | Selling and distribution expenses | 5.9.10.12.13. | ||||||||||
General and administrative expenses | (9,216,436 | ) | 12,496 | (9,203,940 | ) | General and administrative expenses | 5.9.10.13. | ||||||||||
Research and development expenses | (10,170,966 | ) | 266,667 | (9,904,299 | ) | Research and development expenses | 5.9.10.13. | ||||||||||
(29,189,637 | ) | - | - | - | |||||||||||||
Operating loss | (37,864,674 | ) | - | - | - |
For the year ended December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | 476,117 | - | 476,117 | Other income | |||||||||||||
Investment gains recognized by equity method, net | 347,211 | (28,150 | ) | 319,061 | Share of profit of equity-accounted investees | 3. | |||||||||||
Gains on sale of investment securities, net | 455,531 | 158,754 | 614,285 | Other gains and losses | |||||||||||||
Foreign currency exchange gains, net | 1,988,284 | - | 1,988,284 | Other gains and losses | |||||||||||||
Other income | 2,924,416 | (2,924,416 | ) | - | - | ||||||||||||
Interest expenses | (5,731,213 | ) | - | (5,731,213 | ) | Finance costs | |||||||||||
Depreciation of idle assets | (594,364 | ) | 594,364 | - | - | 5. | |||||||||||
Asset impairment losses | (4,799,673 | ) | (152,385 | ) | (4,952,058 | ) | Other gains and losses | ||||||||||
Loss on valuation of financial instruments, net | (1,260,588 | ) | - | (1,260,588 | ) | Other gains and losses | |||||||||||
Provisions for potential litigation losses and others | (11,211,629 | ) | 11,211,629 | - | - | ||||||||||||
- | - | 2,715,426 | 2,715,426 | Other income | |||||||||||||
- | - | (7,055,063 | ) | (7,055,063 | ) | Other gains and losses | |||||||||||
Non-operating income and expenses | (17,405,908 | ) | - | - | - | ||||||||||||
Loss before income taxes | (55,270,582 | ) | 3,776,519 | (51,494,063 | ) | Loss before income tax | |||||||||||
Income tax expense | 636,422 | 487,562 | 1,123,984 | Income tax expense | |||||||||||||
Net loss | $ | (55,907,004 | ) | 3,288,957 | (52,618,047 | ) | Loss for the year | ||||||||||
(369,539 | ) | Actuarial loss in defined benefit plans | |||||||||||||||
(1,174,931 | ) | Foreign operations – foreign currency translation differences | |||||||||||||||
191,474 | Net change in fair value of available-for-sale financial assets | ||||||||||||||||
140,576 | Effective portion of changes in fair value of cash flow hedges | ||||||||||||||||
(282,016 | ) | Equity-accounted investees – share of other comprehensive loss | |||||||||||||||
(122,987 | ) | Realized gain on sales of securities transferred to profit or loss | |||||||||||||||
33,604 | Tax effect on other comprehensive loss | ||||||||||||||||
(1,583,819 | ) | Other comprehensive loss for the year, net of taxes | |||||||||||||||
$ | (54,201,866 | ) | Total comprehensive loss |
(c) | Material adjustments to the statement of cash flows |
(d) | Notes to the reconciliation |
(1) | Under previous GAAP, time deposits are classified as cash and cash equivalents when they can be converted to cash at any time before maturity without paying a penalty. However under IFRS, for an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subjected to an insignificant risk of changes in value. Therefore, an investment generally qualifies as a cash equivalent only when it has a short maturity, say three months or less from the date of acquisition. Thus, the Company reclassified the time deposits with maturity over three months of $770,016 thousand and $783,400 thousand at December 31, 2012 and January 1, 2012, respectively, to other current financial assets. |
(2) | Under previous GAAP, deferred tax asset or liability is classified as either current or non-current according to the classification of the related asset or liability giving rise to the temporary difference and under IFRS, deferred tax asset or liability is classified as non-current in statement of financial position. Deferred tax assets and liabilities are offset only when there is a legally enforceable right of offset and when other related conditions are met. Under previous GAAP, a deferred tax asset is recognized and a valuation allowance is recorded to the extent that it is more likely than not that the deferred tax asset will not be realized. However, under IFRS, a deferred tax asset is recognized if it is probable that it will be realized, and an allowance method is not used. According to the aforementioned rules and considering the tax effects described in note 39 (d) (16), at December 31, 2012 and January 1, 2012, the Company made adjustments to deferred tax assets-current of $(1,663,795) thousand and $(2,304,158) thousand, deferred tax assets-noncurrent of $(11,276,041) thousand and $(10,222,827) thousand, and deferred tax liabilities-noncurrent of $816,402 thousand and $446,194 thousand, respectively. |
(3) | All equity-accounted associates and joint ventures have aligned their accounting policies with those of the Company’s and made related adjustments to conform with IFRS. Therefore, the Company made corresponding adjustments in the consolidated financial statements. The adjustments to decrease the Company’s investments in equity-accounted investees at December 31, 2012 and January 1, 2012 were $7,581 thousand and $4,490 thousand, respectively. In addition, an adjustment of $(7,070) thousand is made to retained earnings, and an adjustment of $(210,497) thousand is made to other equity at January 1, 2012. |
(4) | Under previous GAAP, when the Company does not acquire new shares in proportion to its original ownership percentage when an investee company issues new shares, the Company adjusts the variances generated in capital surplus and long term investments. Due to the first time adoption of IFRS, the Company is not required to adjust retrospectively, so the Company reclassified capital surplus of $2,632,211 thousand to retained earnings at January 1, 2012. |
(5) | Under IFRS, idle assets are classified as property, plant and equipments or investment property by the nature and purpose. Thus the Company transferred idle assets under previous GAAP to property, plant, and equipment and investment properties in accordance with IFRS. Some lands and buildings of the Company were held to earn rentals or for capital appreciation or both, and therefore, were reclassified from property, plant, and equipment and idle assets into investment properties. The adjustment from idle assets to property, plant and equipment and investment properties were $1,099,219 thousand and $1,265,584 thousand at December 31, 2012, and $421,661 thousand and $1,275,954 thousand at January 1, 2012, respectively. The Company also reclassified $594,364 thousand of depreciation expenses on idle assets to cost of sales, selling expenses, administrative expenses and research and development expenses for the year ended December 31, 2012. |
(6) | The cost of land use rights is recorded as deferred charges under previous GAAP but is treated as long-term prepaid expenses under IFRS. Therefore the Company made such adjustment. Either under previous GAAP or IFRS, the cost of land use rights is amortized over the lease term. The amounts of $1,960,446 thousand and $2,065,934 thousand were reclassified from deferred charges to long-term prepaid rent at December 31, 2012 and January 1, 2012, respectively. |
(7) | Under previous GAAP, deferred charges are recorded as other assets. Under IFRS, deferred charges except for land use rights shall be reclassified into property, plant and equipment, and long-term prepaid expense according to their nature. The Company made an adjustment of $426,232 thousand and $460,278 thousand to property, plant and equipment at December 31, 2012 and January 1, 2012, respectively. The amounts of $569,051 thousand and $795,257 thousand were also adjusted to long-term prepaid expense at December 31, 2012 and January 1, 2012, respectively. |
(8) | Under previous GAAP, the Company presents in a separate line item for restricted cash in bank in consolidated statement of financial position. Under IFRS, there is no need for this presentation. Therefore the Company removed the line item of restricted cash in bank and presented the amounts of $410,592 thousand and $158,509 thousand under other non-current assets in consolidated statement of financial position at December 31, 2012 and January 1, 2012, respectively. |
(9) | Under IFRS, the Company recognizes legal or constructive obligation arising from employees’ rendered services and accumulating compensated absences. The expected cost of accumulating compensated absences is recognized as accrued expenses. As of January 1, 2012, the Company made an adjustment of $(519,034) thousand to retained earnings. The expected cost of accumulating compensated absences is recorded as payroll expense for the amount of $191,757 thousand for the year ended December 31, 2012. |
(10) | Under previous GAAP, the Company recognized defined benefit obligations using actuarial techniques and recognized actuarial gains and losses in the profit or loss over the employees’ remaining service period due to changes in actuarial assumptions or experience adjustments. In accordance with IFRS 1, the Company recognized actuarial gains and losses in equity of $(997,940) thousand at the date of transition. The Company adjusted pension expense by $(32,110) thousand and retained earnings by $(369,539) thousand for the year ended December 31, 2012, according to actuarial report. |
(11) | Under IFRS, at the conversion of foreign convertible bonds denominated in a foreign currency, if the conversion is based on a fixed number of equity instruments in exchange for a variable amount of cash (resulted from a fixed amount of cash in foreign currency exchanged in the issuer’s functional currency using a variable exchange rate), the right to convert for such instrument is considered as a derivative financial liability, which is revalued using fair value periodically with any difference being recognized in profit or loss. Under previous GAAP, such conversion is considered a fixed number of equity instruments in exchange for a fixed number of cash. Adjustment of $89,064 thousand was made to retained earnings at January 1, 2012. |
(12) | Under previous GAAP, a provision for product warranties is classified as operating expense, rather than cost of sales. Under IFRS, the Company made a reclassification of $952,989 thousand to cost of sales for the year ended December 31, 2012. |
(13) | Under previous GAAP, a provision for patent technology is classified as operating expense, rather than cost of sales under IFRS. The Company made a reclassification of $2,924,258 thousand to cost of sales for the year ended December 31, 2012. |
(14) | Under previous GAAP, when it was probable an unfavorable outcome would occur with respect to pending ligation or claims, and a range of loss could be estimated, the lowest amount of this range would be recognized as an accrued liability if no amount within the range represented management’s best estimate of probable loss. However, under IFRS for similar situations, the mid-point of the range is used for purposes of recognizing a provision. In addition, provisions are presented as a separate line item the consolidated statements of financial position. As of January 1, 2012, the Company made an adjustment of $3,948,625 thousand to increase the provisions for certain litigation and claims with a resulting increase to the accumulated deficit. At December 31 and January 1, 2012, the Company adjusted provisions-current of $20,452,981 thousand and $25,406,821 thousand, respectively, and provisions-noncurrent of $8,658,360 thousand and $1,183,461 thousand, respectively. |
(15) | Under IFRS, the Company is required to apply IAS 36 in testing the goodwill for impairment as at the date of transition and recognizes any resulting impairment loss. The impairment test is based on the conditions on the date of transition. Therefore, the Company performed the non-recurring fair value measurement categorized in Level 3 over the process of the goodwill impairment test for the display CGU. The recoverable amount of display CGU was determined by fair value less cost to sell, which was based on the discounted future cash flows to be generated from the continuing use of the display CGU by considering market participant’s view. The cash flow projections were determined using specific estimates for five years and extrapolated with stable or declining growth rates for subsequent years, after which a terminal value was calculated. |
Change in assumptions | Resulting % of fair value exceeding the carrying amount | |||||||
Discount Rate | +0.25% | 7.8% | ||||||
+0.75% | 2.5% | |||||||
Terminal year growth rate | -0.25% | 9.9% | ||||||
-0.50% | 9.3% |
Under IFRS, the |
Note | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Investments in equity-accounted investees | 3, 4 | $ | (1,086 | ) | 104,393 | |||||||
Accumulated compensated absences | 9 | 120,878 | 88,479 | |||||||||
Defined benefit obligations | 10 | 226,529 | 169,146 | |||||||||
Convertible bonds and others | 11 | (15,141 | ) | (15,141 | ) | |||||||
Goodwill | 15 | 1,881,415 | 1,881,415 | |||||||||
Increase in deferred tax asset | $ | 2,212,595 | 2,228,292 |
(17) | Under IFRS, the accumulated deficit increased (decreased) as a result of the aforementioned adjustments were as follows: |
Note | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Investments in equity-accounted investees | 3, 4 | $ | (1,770,055 | ) | (2,625,141 | ) | ||||||
Accumulated compensated absences | 9 | 709,039 | 519,034 | |||||||||
Defined benefit obligations | 10 | 1,327,026 | 992,566 | |||||||||
Convertible bonds and others | 11 | (89,064 | ) | (89,064 | ) | |||||||
Deferred income taxes | 2 | 14,132,206 | 13,645,353 | |||||||||
Litigation provisions | 14 | - | 3,948,625 | |||||||||
Goodwill | 15 | 11,280,595 | 11,280,595 | |||||||||
Increase in accumulated deficit | $ | 25,589,747 | 27,671,968 |
(e) | According to IFRS 1, the Company prepares its first IFRS financial statements based on the effective IFRS standards and |
(1) | Business combinations occurred; subsidiaries, associates and joint ventures acquired before January 1, 2012 are not adjusted retrospectively. |
(2) | Any cumulative actuarial gains and losses arising from changes in actuarial assumptions or experience adjustments for defined benefit plans are recognized in equity on transition date, and calculation of the gains and losses are not performed retrospectively. |
(3) | The compensation cost is not recalculated retrospectively for any share-based payments that were vested or settled before January 1, 2012. |