| 11. | HEDGING DERIVATIVE FINANCIAL INSTRUMENTS |
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December 31, 2016 |
December 31, 2017 |
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| NT$ | NT$ | |||||||
| (In Millions) | (In Millions) | |||||||
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Financial assets - current |
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Fair value hedges |
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Interest rate futures contracts |
$ | 5.6 | $ | 27.0 | ||||
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Cash flow hedges |
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Forward exchange contracts |
— | 7.4 | ||||||
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| $ | 5.6 | $ | 34.4 | |||||
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Financial liabilities- current |
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Cash flow hedges |
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Forward exchange contracts |
$ | — | $ | 15.6 | ||||
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The Company entered into interest rate futures contracts, which are used to hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities.
The outstanding interest rate futures contracts consisted of the following:
| Maturity Period |
Contract Amount (US$ in Millions) |
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| December 31, 2016 | ||||
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March 2017 |
US$ | 53.6 | ||
| December 31, 2017 | ||||
|
March 2018 |
US$ | 169.4 | ||
The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions, such as capital expenditures. These contracts have maturities of 12 months or less.
Outstanding forward exchange contracts consisted of the following:
| Contract Amount | ||||||
| Maturity Date | (In Millions) | |||||
|
December 31, 2017 |
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| Sell NT$/Buy EUR | February 2018 to May 2018 | NT$2,649.1/EUR75.0 | ||||