PART I Our Financial Reporting Obligations  A. Operating Results  The following table sets forth our revenues, operating costs and expenses, income from operations and  other financial data as a percentage of our total revenues for the periods indicated.  The following table sets forth our revenues, operating costs and expenses, income from operations and  other financial data for the periods indicated.  Our ongoing financial reporting in our Form 20-F annual reports and interim financial reporting furnished  to the SEC on Form 6-K had been based on U.S. GAAP through fiscal year 2007. Beginning with our first  quarter interim financial report furnished on Form 6-K and our Form 20-F annual report for fiscal year 2008, we  prepared our financial statements under R.O.C. GAAP, with reconciliations to U.S. GAAP.  For the year ended December 31, 2008 2009 2010 NT$ NT$ NT$ US$ (in billions) Revenues: Domestic fixed communications 73.1  71.5  70.7  2.4  Mobile communications 88.8  86.5  89.0  3.1  Internet 23.0  23.7  24.5  0.8  International fixed communications 15.9  15.2  15.5  0.5  Others 0.8  1.5  2.7  0.1  Net revenues 201.7  198.4  202.4  6.9  Operating costs and expenses: Operating costs 113.5  112.7  115.3  3.9  Operating expenses: Marketing 22.7  22.3  22.5  0.8  General and administrative 3.7  3.8  4.0  0.1  Research and development 3.2  3.2  3.2  Total operating costs and expenses 143.1  142.0  145.0  4.9  Income from operations 58.6  56.4  57.4  2.0  Other income, net 1.1  0.8  0.3  — Income before income tax expense 59.7  57.2  57.7  2.0  Income tax expense 13.9  12.7  9.1  0.3  Consolidated net income 45.8  44.5  48.6  1.7  Attributable to: Stockholders of the parent 45.0  43.8  47.6  1.6  Minority interests 0.8  0.7  1.0  0.1  For the year ended December 31, 2008 2009 2010 (as percentages of total revenues) Revenues: Domestic fixed communications 36.2% 36.0% 34.9% Mobile communications 44.0  43.6  44.0  Internet 11.4  11.9  12.1  International fixed communications 7.9  7.7  7.7  Others 0.4  0.7  1.3  Total revenues 100.0% 100.0% 100.0% Operating costs and expenses: Operating costs 56.3% 56.8% 57.0% Operating expenses: Marketing 11.3  11.2  11.1  General and administrative 1.8  1.9  2.0  Research and development 1.6  1.6  1.6  Total operating costs and expenses 71.0  71.5  71.7  73