P AR T I In 2010, our net cash used in financing activities totaled NT$47.0 billion, which mainly reflected NT$39.4 billion of payment  of dividends during that period and NT$9.7 billion of cash distribution to our stockholders for a capital reduction plan.  We have historically financed our capital expenditure requirements with our cash flows from operations. In future years,  we expect to have capital expenditure requirements for the ongoing expansion and upgrade of our networks, including 3G/HSPA/ HSPA+,FTTx, Wi-Fi/femtocell and service platforms, and future construction of LTE to migrate mobile and data service customers to  higher contribution platforms. We also expect to make dividend payments on an ongoing basis. See “Item 8. Financial Information— A. Consolidated Statements and Other Financial Information.” Furthermore, we may require working capital from time to time to  finance purchases of materials for our maintenance and other overhead expenses. We expect to primarily rely on cash generated from  operations and, to a lesser extent, loans from commercial banks to meet our planned capital expenditures, make our planned dividend  payments, repay debts and fulfill other commitments over the next twelve months.  As of December 31, 2011, our primary source of liquidity was NT$67.4 billion (US$2.2 billion) in cash and cash equivalents.  Our subsidiary, Spring House Entertainment Inc. applied for a secured loan from the Industrial Development Bureau of the  Ministry of Economic Affairs for research and development purposes and obtained the loan from Taiwan Business Bank. This secured  loan was early repaid in full in April 2010.  As of December 31, 2009, 2010 and 2011, our subsidiary Chief Telecom had short-term unsecured loans in the amount of  NT$235 million, NT$75 million, and NT$70 million (US$2.3 million) at interest rates at 1.15%, 1.10% and 1.25%, respectively. As  of December 31, 2009, 2010 and 2011, Chief Telecom had long-term unsecured loans in the amount of NT$310 million, NT$209  million and NT$109 million (US$3.6 million), respectively, all with interest rates ranging from 2.01% to 2.04%.  As of December 31, 2009, our subsidiary Light Era Development Co., Ltd. had a short-term secured loan from First  Commercial Bank in the amount of NT$488 million at an interest rate of 0.81%. In September 2010, Light Era Development renewed  this short-term loan to a long-term secured loan, and obtained another long-term secured loan in the amount of NT$2,750 million  from Chang Hwa Bank. As of December 31, 2010 and 2011, Light Era Development Co., Ltd. had secured loans in the amount of  NT$3,238 million with interest rates ranging from 0.80% to 1.01%, and NT$1,650 million (US$54.5 million) with interest rate at  1.10%, respectively.  As of December 31, 2010 and 2011, Chunghwa Precision Test Technology Co., Ltd., a subsidiary of Chunghwa Investment  Co., Ltd. had short-term unsecured loans of NT$40 million and NT$5 million(US$0.17 million) at interest rates ranging from 1.29%  to 1.33% and 1.53% from the Bank of Taiwan and E.SUN Bank, respectively, and a long-term secured loan of NT$10 million and  NT$1.42 million (US$0.05 million) from E.SUN Bank at an interest rate of 1.60% and 1.83%, respectively.  As part of the government’s effort to upgrade the existing telecommunication infrastructure, we and other public utility  companies were required by the R.O.C. government to contribute a total of NT$1.0 billion to a Piping Fund, administered by the  Taipei City Government. This fund is used to finance various telecommunications infrastructure projects. We accounted for the  contribution as other monetary assets on our consolidated balance sheets.  Note 30 to our audited consolidated financial statements included elsewhere in this annual report provides a description of the  assets are pledged as collateral for short-term and long-term bank loans and contract deposits.  The following table sets forth a summary of our capital expenditures for the periods indicated.  Capital Expenditures  Capital Resources  86