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borne by Compaq Asia that were not borne by the unrelated
subcontractors. The parties stipulated that, during 1991 and
1992, Compaq Asia incurred $4.6 million in expenses related to
cancellation of raw material contracts and component
obsolescence. Of that amount, $4.2 million is attributable to
PCA cancellation and obsolescence costs with the remaining
$400,000 attributable to CPU cancellation and obsolescence costs.
The price adjustments asserted and quantified by petitioner
are summarized in the following table:
Compaq Asia Price
Increase/(Decrease)
PCA price adjustment ($6.4 million)
Transactional adjustments
Add:
Payment terms $8.9 million
Advance purchase costs $4.2 million
Setup & cancellation charges $2.9 million
Less:
Freight ($2.6 million)
Duties ($1.2 million)
Defective PCA costs ($1.3 million)
Overall PCA price adjustment $4.5 million
These adjustments would indicate that Compaq U.S. paid prices to
Compaq Asia that were less than the comparable prices paid by
Compaq U.S. to the unrelated subcontractors for nearly identical
PCA's, adjusted for physical and transactional differences.
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