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## D. Trend Information 

See “—Overview” for a discussion of the most significant recent trends that have had, and in the future may have, a material impact on our results of operations, financial condition and capital expenditures. In addition, see discussions included in this Item for a discussion of known trends, uncertainties, demands, commitments or events that we believe are reasonably likely to have a material effect on our net operating revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition. 

## E. Off-Balance Sheet Arrangements 

Note 30 and 31 to our consolidated financial statements included elsewhere in this annual report provide descriptions of the pledged assets, and significant commitments and contingencies. There are no off-balance sheet arrangements that are material to investors. 

## F. Tabular Disclosure of Contractual Obligations 

Set forth below are our total contractual obligations as of December 31, 2011. 

<img src='content_image/138089.jpg'>

(1) Accrued pension liabilities of NT$1.4 billion (US$47.7 million) as of December 31, 2011 have not been included in the table above. 

(2) Operating leases obligations are described in note 31 to our consolidated financial statements included elsewhere in the annual report. 

As of December 31, 2011, we had remaining commitments under non-cancelable contracts with various parties, including acquisition of lands and buildings of NT$ 0.05 billion (US$ 1.7 million), acquisition of telecommunications equipment of NT$ 20.0 billion (US$ 660.5 million), unused letters of credit of NT$0.3 billion (U$9.9 million) and contracts for printing bills, envelopes and marketing gifts of NT$ 34.7  million (US$ 1.1 million). Light Era Development has already contracted to advance sale of lands and buildings for NT$ 1.1 billion (US$ 36.7 million), and collected NT$ 0.2 billion (US$ 7.9 million) in advance according to the contracts. 

## G. Foreign Exchange 

Our revenues and costs and expenses are largely denominated in NT dollars. Our principal expenses denominated in foreign currencies are capital expenditures on telecommunications equipment and settlement payments for the use of networks of carriers in foreign countries for outgoing international calls. Settlement receipts have been a principal source of foreign currency for us. While future fluctuations of the NT dollar against foreign currencies could impact our financial condition and results of operations, we have not been materially affected by the fluctuation of the NT dollar against foreign currencies. 

