| 15. | PROPERTY, PLANT AND EQUIPMENT |
| Land and Land Improvements |
Buildings | Machinery and Equipment |
Office Equipment | Assets under Finance Leases |
Equipment under Installation and Construction in Progress |
Total | ||||||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||||||||
| (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||||||||
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Cost |
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Balance at January 1, 2015 |
$ | 4,036.8 | $ | 269,163.9 | $ | 1,754,170.2 | $ | 27,960.8 | $ | 841.2 | $ | 109,334.7 | $ | 2,165,507.6 | ||||||||||||||
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Additions |
— | 26,960.5 | 142,090.4 | 3,428.6 | — | 82,595.3 | 255,074.8 | |||||||||||||||||||||
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Disposals or retirements |
— | (75.0 | ) | (5,923.0 | ) | (1,170.0 | ) | — | — | (7,168.0 | ) | |||||||||||||||||
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Lease agreement modification |
— | — | — | — | (824.1 | ) | — | (824.1 | ) | |||||||||||||||||||
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Effect of acquisition of subsidiary |
— | 624.7 | 1,402.0 | 447.9 | — | 176.6 | 2,651.2 | |||||||||||||||||||||
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Effect of exchange rate changes |
30.6 | 127.8 | 1,750.0 | 32.7 | (10.0 | ) | 4.9 | 1,936.0 | ||||||||||||||||||||
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Balance at December 31, 2015 |
$ | 4,067.4 | $ | 296,801.9 | $ | 1,893,489.6 | $ | 30,700.0 | $ | 7.1 | $ | 192,111.5 | $ | 2,417,177.5 | ||||||||||||||
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Accumulated depreciation and impairment |
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Balance at January 1, 2015 |
$ | 459.2 | $ | 141,245.9 | $ | 1,188,388.4 | $ | 16,767.9 | $ | 447.4 | $ | — | $ | 1,347,308.8 | ||||||||||||||
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Additions |
28.9 | 16,312.6 | 199,185.0 | 3,751.7 | 25.2 | — | 219,303.4 | |||||||||||||||||||||
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Disposals or retirements |
— | (74.0 | ) | (5,585.4 | ) | (1,125.2 | ) | — | — | (6,784.6 | ) | |||||||||||||||||
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Lease agreement modification |
— | — | — | — | (460.4 | ) | — | (460.4 | ) | |||||||||||||||||||
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Impairment |
— | 278.1 | 2,256.8 | 10.7 | — | — | 2,545.6 | |||||||||||||||||||||
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Effect of exchange rate changes |
18.1 | 147.6 | 1,612.9 | 20.9 | (5.1 | ) | — | 1,794.4 | ||||||||||||||||||||
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Balance at December 31, 2015 |
$ | 506.2 | $ | 157,910.2 | $ | 1,385,857.7 | $ | 19,426.0 | $ | 7.1 | $ | — | $ | 1,563,707.2 | ||||||||||||||
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Carrying amounts at December 31, 2015 |
$ | 3,561.2 | $ | 138,891.7 | $ | 507,631.9 | $ | 11,274.0 | $ | — | $ | 192,111.5 | $ | 853,470.3 | ||||||||||||||
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Cost |
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Balance at January 1, 2016 |
$ | 4,067.4 | $ | 296,801.9 | $ | 1,893,489.6 | $ | 30,700.0 | $ | 7.1 | $ | 192,111.5 | $ | 2,417,177.5 | ||||||||||||||
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Additions |
— | 9,113.3 | 156,874.2 | 4,584.1 | — | 195,256.0 | 365,827.6 | |||||||||||||||||||||
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Disposals or retirements |
— | (13.4 | ) | (3,094.2 | ) | (469.2 | ) | — | — | (3,576.8 | ) | |||||||||||||||||
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Reclassification |
— | — | — | 7.1 | (7.1 | ) | — | — | ||||||||||||||||||||
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Effect of exchange rate changes |
(18.1 | ) | (1,497.3 | ) | (4,401.9 | ) | (92.4 | ) | — | (167.8 | ) | (6,177.5 | ) | |||||||||||||||
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Balance at December 31, 2016 |
$ | 4,049.3 | $ | 304,404.5 | $ | 2,042,867.7 | $ | 34,729.6 | $ | — | $ | 387,199.7 | $ | 2,773,250.8 | ||||||||||||||
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Accumulated depreciation and impairment |
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Balance at January 1, 2016 |
$ | 506.2 | $ | 157,910.2 | $ | 1,385,857.7 | $ | 19,426.0 | $ | 7.1 | $ | — | $ | 1,563,707.2 | ||||||||||||||
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Additions |
29.4 | 17,540.5 | 198,189.4 | 4,325.7 | — | — | 220,085.0 | |||||||||||||||||||||
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Disposals or retirements |
— | (7.3 | ) | (3,049.5 | ) | (468.4 | ) | — | — | (3,525.2 | ) | |||||||||||||||||
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Reclassification |
— | — | — | 7.1 | (7.1 | ) | — | — | ||||||||||||||||||||
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Effect of exchange rate changes |
(10.8 | ) | (1,094.3 | ) | (3,620.1 | ) | (68.7 | ) | — | — | (4,793.9 | ) | ||||||||||||||||
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Balance at December 31, 2016 |
$ | 524.8 | $ | 174,349.1 | $ | 1,577,377.5 | $ | 23,221.7 | $ | — | $ | — | $ | 1,775,473.1 | ||||||||||||||
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Carrying amounts at December 31, 2016 |
$ | 3,524.5 | $ | 130,055.4 | $ | 465,490.2 | $ | 11,507.9 | $ | — | $ | 387,199.7 | $ | 997,777.7 | ||||||||||||||
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| Land and Land Improvements |
Buildings | Machinery and Equipment |
Office Equipment | Assets under Finance Leases |
Equipment under Installation and Construction in Progress |
Total | ||||||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||||||||
| (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||||||||
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Cost |
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Balance at January 1, 2017 |
$ | 4,049.3 | $ | 304,404.5 | $ | 2,042,867.7 | $ | 34,729.6 | $ | — | $ | 387,199.7 | $ | 2,773,250.8 | ||||||||||||||
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Additions (Deductions) |
— | 75,594.7 | 458,605.8 | 8,195.9 | — | (219,902.5 | ) | 322,493.9 | ||||||||||||||||||||
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Disposals or retirements |
— | (37.0 | ) | (9,553.0 | ) | (377.8 | ) | — | — | (9,967.8 | ) | |||||||||||||||||
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Reclassification |
— | — | 8.8 | 1.5 | — | — | 10.3 | |||||||||||||||||||||
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Effect of disposal of subsidiary |
— | — | (51.2 | ) | (14.8 | ) | — | (0.5 | ) | (66.5 | ) | |||||||||||||||||
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Effect of exchange rate changes |
(66.1 | ) | (827.6 | ) | (4,125.8 | ) | (142.9 | ) | — | 56.8 | (5,105.6 | ) | ||||||||||||||||
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Balance at December 31, 2017 |
$ | 3,983.2 | $ | 379,134.6 | $ | 2,487,752.3 | $ | 42,391.5 | $ | — | $ | 167,353.5 | $ | 3,080,615.1 | ||||||||||||||
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Accumulated depreciation and impairment |
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Balance at January 1, 2017 |
$ | 524.8 | $ | 174,349.1 | $ | 1,577,377.5 | $ | 23,221.7 | $ | — | $ | — | $ | 1,775,473.1 | ||||||||||||||
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Additions |
27.8 | 20,844.6 | 229,985.6 | 4,938.0 | — | — | 255,796.0 | |||||||||||||||||||||
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Disposals or retirements |
— | (28.8 | ) | (8,114.3 | ) | (377.5 | ) | — | — | (8,520.6 | ) | |||||||||||||||||
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Reclassification |
— | — | 8.2 | 1.5 | — | — | 9.7 | |||||||||||||||||||||
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Effect of disposal of subsidiary |
— | — | (42.8 | ) | (13.9 | ) | — | — | (56.7 | ) | ||||||||||||||||||
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Effect of exchange rate changes |
(42.1 | ) | (718.4 | ) | (3,765.3 | ) | (102.9 | ) | — | — | (4,628.7 | ) | ||||||||||||||||
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Balance at December 31, 2017 |
$ | 510.5 | $ | 194,446.5 | $ | 1,795,448.9 | $ | 27,666.9 | $ | — | $ | — | $ | 2,018,072.8 | ||||||||||||||
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Carrying amounts at December 31, 2017 |
$ | 3,472.7 | $ | 184,688.1 | $ | 692,303.4 | $ | 14,724.6 | $ | — | $ | 167,353.5 | $ | 1,062,542.3 | ||||||||||||||
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The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
In August 2015, TSMC Solar Ltd. (TSMC Solar) ceased its manufacturing operations. In the third quarter of 2015, the Company recognized an impairment loss of NT$2,286.0 million since the carrying amounts of certain machinery and equipment, office equipment and mechanical and electrical power equipment were not expected to be recoverable. The recoverable amount determined on the basis of value in use is nil. Such impairment loss was included in other operating income and expenses.
For the year ended December 31, 2015, the Company recognized an impairment loss of NT$259.6 million under foundry segment since the carrying amount of some of property, plant and equipment, mostly from termination of a project, was expected to be unrecoverable. Their recoverable amount determined on the basis of value in use was nil. Such impairment loss was included in other operating income and expenses.
The Company had a building lease agreement with leasing terms from December 2003 to November 2018 and such lease was accounted for as a finance lease. In August 2015, the lease was determined to be an operating lease due to a modification on lease conditions; as such, the Company recognized a gain of NT$430.0 million from the modification. Such gain was included in other operating income and expenses.