|
43. |
SEGMENT INFORMATION |
The Company has the following reportable segments that provide different products or services. The reportable segments are managed separately because each segment represents a strategic business unit that serves different markets. Segment information is provided to CEO who allocates resources and assesses segment performance. The Company’s measure of segment performance is mainly based on revenues and income before income tax. The Company’s reportable segments are as follows:
|
|
a. |
Domestic fixed communications business - the provision of local telephone services, domestic long distance telephone services, broadband access, and related services; |
|
|
b. |
Mobile communications business - the provision of mobile services, sales of mobile handsets and data cards, and related services; |
|
|
c. |
Internet business - the provision of HiNet services and related services; |
|
|
d. |
International fixed communications business - the provision of international long distance telephone services and related services; |
|
|
e. |
Others - the provision of non-telecom services and the corporate related items not allocated to reportable segments. |
Some operating segments have been aggregated into a single operating segment taking into account the following factors: (a) similar economic characteristics such as long-term gross profit margins; (b) the nature of the telecommunications products and services are similar; (c) the nature of production processes of the telecommunications products and services are similar; (d) the type or class of customer for the telecommunications products and services are similar; and (e) the methods used to provide the services to the customers are similar.
There was no material differences between the accounting policies of the operating segments and the accounting policies described in Note 3.
|
|
a. |
Segment revenues and operating results |
Analysis by reportable segment of revenue and operating results of continuing operations was as follows:
|
|
|
Domestic Fixed Communi- cations Business |
|
|
Mobile Communi- cations Business |
|
|
Internet Business |
|
|
International Fixed Communi- cations Business |
|
|
Others |
|
|
Total |
|
||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||
|
Year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From external customers |
|
$ |
72,535 |
|
|
$ |
114,877 |
|
|
$ |
25,777 |
|
|
$ |
15,460 |
|
|
$ |
3,146 |
|
|
$ |
231,795 |
|
|
Intersegment revenues |
|
|
21,401 |
|
|
|
3,475 |
|
|
|
4,701 |
|
|
|
2,120 |
|
|
|
3,214 |
|
|
|
34,911 |
|
|
Segment revenues |
|
$ |
93,936 |
|
|
$ |
118,352 |
|
|
$ |
30,478 |
|
|
$ |
17,580 |
|
|
$ |
6,360 |
|
|
|
266,706 |
|
|
Intersegment elimination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34,911 |
) |
|
Consolidated revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
231,795 |
|
|
Segment income before income tax |
|
$ |
23,231 |
|
|
$ |
19,394 |
|
|
$ |
9,918 |
|
|
$ |
1,120 |
|
|
$ |
(1,710 |
) |
|
$ |
51,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From external customers |
|
$ |
72,784 |
|
|
$ |
110,801 |
|
|
$ |
28,100 |
|
|
$ |
14,434 |
|
|
$ |
3,872 |
|
|
$ |
229,991 |
|
|
Intersegment revenues |
|
|
22,669 |
|
|
|
2,530 |
|
|
|
4,734 |
|
|
|
2,680 |
|
|
|
4,122 |
|
|
|
36,735 |
|
|
Segment revenues |
|
$ |
95,453 |
|
|
$ |
113,331 |
|
|
$ |
32,834 |
|
|
$ |
17,114 |
|
|
$ |
7,994 |
|
|
|
266,726 |
|
|
Intersegment elimination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,735 |
) |
|
Consolidated revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
229,991 |
|
|
Segment income before income tax |
|
$ |
25,658 |
|
|
$ |
13,926 |
|
|
$ |
10,729 |
|
|
$ |
1,098 |
|
|
$ |
(1,998 |
) |
|
$ |
49,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From external customers |
|
$ |
71,137 |
|
|
$ |
109,376 |
|
|
$ |
28,917 |
|
|
$ |
13,552 |
|
|
$ |
4,532 |
|
|
$ |
227,514 |
|
|
Intersegment revenues |
|
|
22,515 |
|
|
|
2,031 |
|
|
|
4,209 |
|
|
|
2,375 |
|
|
|
4,600 |
|
|
|
35,730 |
|
|
Segment revenues |
|
$ |
93,652 |
|
|
$ |
111,407 |
|
|
$ |
33,126 |
|
|
$ |
15,927 |
|
|
$ |
9,132 |
|
|
|
263,244 |
|
|
Intersegment elimination |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,730 |
) |
|
Consolidated revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
227,514 |
|
|
Segment income before income tax |
|
$ |
24,888 |
|
|
$ |
12,433 |
|
|
$ |
11,118 |
|
|
$ |
1,029 |
|
|
$ |
(1,459 |
) |
|
$ |
48,009 |
|
|
|
b. |
Other segment information |
Other information reviewed by the chief operating decision maker or regularly provided to the chief operating decision maker was as follows:
For the year ended December 31, 2015
|
|
|
Domestic Fixed Communi-cations Business |
|
|
Mobile Communi-cations Business |
|
|
Internet Business |
|
|
International Fixed Communi-cations Business |
|
|
Others |
|
|
Total |
|
||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||
|
Share of the profit of associates and joint ventures accounted for using equity method |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
897 |
|
|
$ |
897 |
|
|
Interest income |
|
$ |
19 |
|
|
$ |
19 |
|
|
$ |
11 |
|
|
$ |
2 |
|
|
$ |
255 |
|
|
$ |
306 |
|
|
Interest expenses |
|
$ |
— |
|
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23 |
|
|
$ |
33 |
|
|
Operating costs and expenses |
|
$ |
64,960 |
|
|
$ |
81,213 |
|
|
$ |
12,062 |
|
|
$ |
14,411 |
|
|
$ |
8,683 |
|
|
$ |
181,329 |
|
|
Depreciation and amortization |
|
$ |
17,487 |
|
|
$ |
10,444 |
|
|
$ |
3,611 |
|
|
$ |
1,536 |
|
|
$ |
370 |
|
|
$ |
33,448 |
|
|
Capital expenditure |
|
$ |
10,196 |
|
|
$ |
8,596 |
|
|
$ |
4,795 |
|
|
$ |
968 |
|
|
$ |
529 |
|
|
$ |
25,084 |
|
|
Impairment loss on property, plant and equipment |
|
$ |
22 |
|
|
$ |
116 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
138 |
|
|
Reversal of impairment loss on investment properties |
|
$ |
142 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
142 |
|
For the year ended December 31, 2016
|
|
|
Domestic Fixed Communi- cations Business |
|
|
Mobile Communi- cations Business |
|
|
Internet Business |
|
|
International Fixed Communi- cations Business |
|
|
Others |
|
|
Total |
|
||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||
|
Share of the profit of associates and joint ventures accounted for using equity method |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
515 |
|
|
$ |
515 |
|
|
Interest income |
|
$ |
15 |
|
|
$ |
11 |
|
|
$ |
7 |
|
|
$ |
6 |
|
|
$ |
150 |
|
|
$ |
189 |
|
|
Interest expenses |
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18 |
|
|
$ |
20 |
|
|
Operating costs and expenses |
|
$ |
64,230 |
|
|
$ |
79,593 |
|
|
$ |
13,160 |
|
|
$ |
14,313 |
|
|
$ |
10,094 |
|
|
$ |
181,390 |
|
|
Depreciation and amortization |
|
$ |
16,414 |
|
|
$ |
10,620 |
|
|
$ |
3,626 |
|
|
$ |
1,451 |
|
|
$ |
374 |
|
|
$ |
32,485 |
|
|
Capital expenditure |
|
$ |
9,846 |
|
|
$ |
8,981 |
|
|
$ |
2,718 |
|
|
$ |
1,136 |
|
|
$ |
836 |
|
|
$ |
23,517 |
|
|
Impairment loss on property, plant and equipment |
|
$ |
— |
|
|
$ |
596 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
596 |
|
|
Reversal of impairment loss on investment properties |
|
$ |
148 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
148 |
|
For the year ended December 31, 2017
|
|
|
Domestic Fixed Communi- cations Business |
|
|
Mobile Communi- cations Business |
|
|
Internet Business |
|
|
International Fixed Communi- cations Business |
|
|
Others |
|
|
Total |
|
||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||
|
Share of the profit of associates and joint ventures accounted for using equity method |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
419 |
|
|
$ |
419 |
|
|
Interest income |
|
$ |
21 |
|
|
$ |
15 |
|
|
$ |
9 |
|
|
$ |
15 |
|
|
$ |
145 |
|
|
$ |
205 |
|
|
Interest expenses |
|
$ |
— |
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
16 |
|
|
$ |
22 |
|
|
Operating costs and expenses |
|
$ |
62,795 |
|
|
$ |
80,275 |
|
|
$ |
13,288 |
|
|
$ |
13,385 |
|
|
$ |
10,963 |
|
|
$ |
180,706 |
|
|
Depreciation and amortization |
|
$ |
15,614 |
|
|
$ |
11,001 |
|
|
$ |
3,385 |
|
|
$ |
1,477 |
|
|
$ |
453 |
|
|
$ |
31,930 |
|
|
Capital expenditure |
|
$ |
11,647 |
|
|
$ |
9,742 |
|
|
$ |
2,779 |
|
|
$ |
1,580 |
|
|
$ |
1,127 |
|
|
$ |
26,875 |
|
|
Impairment loss on property, plant and equipment |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Reversal of impairment loss on investment properties |
|
$ |
11 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11 |
|
|
|
c. |
Main products and service revenues |
The following is an analysis of the Company’s revenue from its major products and services.
|
|
|
Year Ended December 31 |
|
|||||||||
|
|
|
2015 |
|
|
2016 |
|
|
2017 |
|
|||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|||
|
|
|
(In Millions) |
|
|||||||||
|
Mobile services revenue |
|
$ |
80,867 |
|
|
$ |
78,788 |
|
|
$ |
75,823 |
|
|
Local telephone and domestic long distance telephone services revenue |
|
|
36,690 |
|
|
|
34,531 |
|
|
|
32,247 |
|
|
Sales of product |
|
|
36,509 |
|
|
|
35,377 |
|
|
|
37,649 |
|
|
Broadband access and domestic leased line services revenue |
|
|
23,711 |
|
|
|
23,315 |
|
|
|
22,950 |
|
|
Data communications internet services revenue |
|
|
17,455 |
|
|
|
20,906 |
|
|
|
21,143 |
|
|
International network and leased telephone services revenue |
|
|
11,319 |
|
|
|
10,634 |
|
|
|
9,328 |
|
|
Others |
|
|
25,244 |
|
|
|
26,440 |
|
|
|
28,374 |
|
|
|
|
$ |
231,795 |
|
|
$ |
229,991 |
|
|
$ |
227,514 |
|
|
|
d. |
Geographic information |
The users of the Company’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues was as follows:
|
|
|
Year Ended December 31 |
|
|||||||||
|
|
|
2015 |
|
|
2016 |
|
|
2017 |
|
|||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|||
|
|
|
(In Millions) |
|
|||||||||
|
Taiwan, ROC |
|
$ |
220,917 |
|
|
$ |
218,933 |
|
|
$ |
217,568 |
|
|
Overseas |
|
|
10,878 |
|
|
|
11,058 |
|
|
|
9,946 |
|
|
|
|
$ |
231,795 |
|
|
$ |
229,991 |
|
|
$ |
227,514 |
|
The Company has long-lived assets in U.S., Singapore, Hong Kong, China, Vietnam, Japan, and Thailand and except for $3,947 million and $4,445 million as of December 31, 2016 and 2017, respectively, in the aforementioned areas, the other long-lived assets are located in Taiwan, ROC.
|
|
e. |
Major customers |
For the years ended December 31, 2015, 2016 and 2017, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.