| 9. |
Property and Equipment |
| (1) |
Changes in property and equipment for the year ended December 31, 2016 are as follows: |
| (In millions of yen) | ||||||||||||||||||||||||
| Furniture and fixtures |
Equipment | Land(1) | Construction- in-progress |
Others | Total | |||||||||||||||||||
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Acquisition cost |
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Balance at January 1, 2016 |
2,950 | 12,253 | 2,584 | 60 | 356 | 18,203 | ||||||||||||||||||
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Acquisitions |
1,144 | 4,012 | — | 179 | 401 | 5,736 | ||||||||||||||||||
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Disposals |
(74 | ) | (665 | ) | (2,584 | ) | — | (13 | ) | (3,336 | ) | |||||||||||||
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Deconsolidation of LINE BIZ Plus Ltd. |
— | (27 | ) | — | — | (3 | ) | (30 | ) | |||||||||||||||
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Exchange differences |
(3 | ) | (44 | ) | — | — | 14 | (33 | ) | |||||||||||||||
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Other |
(200 | ) | 0 | — | (55 | ) | — | (255 | ) | |||||||||||||||
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Balance at December 31, 2016 |
3,817 | 15,529 | — | 184 | 755 | 20,285 | ||||||||||||||||||
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Accumulated depreciation and impairment |
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Balance at January 1, 2016 |
1,479 | 6,121 | — | — | 102 | 7,702 | ||||||||||||||||||
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Disposals |
(57 | ) | (471 | ) | — | — | (5 | ) | (533 | ) | ||||||||||||||
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Depreciation |
680 | 3,333 | — | — | 121 | 4,134 | ||||||||||||||||||
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Deconsolidation of LINE BIZ Plus Ltd. |
— | (4 | ) | — | — | (1 | ) | (5 | ) | |||||||||||||||
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Exchange differences |
(3 | ) | (13 | ) | — | — | 2 | (14 | ) | |||||||||||||||
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Other |
(17 | ) | (11 | ) | — | — | — | (28 | ) | |||||||||||||||
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Balance at December 31, 2016 |
2,082 | 8,955 | — | — | 219 | 11,256 | ||||||||||||||||||
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Carrying amounts |
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Balance at January 1, 2016 |
1,471 | 6,132 | 2,584 | 60 | 254 | 10,501 | ||||||||||||||||||
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Balance at December 31, 2016 |
1,735 | 6,574 | — | 184 | 536 | 9,029 | ||||||||||||||||||
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| (1) |
On June 29, 2016, the Group sold its land in Fukuoka. Refer to Note 22 (1) Other Income and Expenses for more details. |
| (2) |
Changes in property and equipment for the year ended December 31, 2017 are as follows: |
| (In millions of yen) | ||||||||||||||||||||
| Furniture and fixtures |
Equipment | Construction- in-progress |
Others | Total | ||||||||||||||||
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Acquisition cost |
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Balance at January 1, 2017 |
3,817 | 15,529 | 184 | 755 | 20,285 | |||||||||||||||
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Acquisitions |
4,156 | 7,038 | 42 | 361 | 11,597 | |||||||||||||||
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Disposals |
(1,305 | ) | (911 | ) | — | (174 | ) | (2,390 | ) | |||||||||||
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Acquisition through business combinations |
12 | 184 | — | 297 | 493 | |||||||||||||||
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Exchange differences |
1 | 152 | — | 43 | 196 | |||||||||||||||
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Other |
(180 | ) | 204 | (184 | ) | 61 | (99 | ) | ||||||||||||
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Balance at December 31, 2017 |
6,501 | 22,196 | 42 | 1,343 | 30,082 | |||||||||||||||
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Accumulated depreciation and impairment |
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Balance at January 1, 2017 |
2,082 | 8,955 | — | 219 | 11,256 | |||||||||||||||
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Disposals |
(1,291 | ) | (810 | ) | — | (3 | ) | (2,104 | ) | |||||||||||
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Depreciation |
1,146 | 4,111 | — | 266 | 5,523 | |||||||||||||||
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Acquisition through business combinations |
4 | 125 | — | 171 | 300 | |||||||||||||||
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Exchange differences |
1 | 53 | — | 15 | 69 | |||||||||||||||
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Other |
(63 | ) | (32 | ) | — | 8 | (87 | ) | ||||||||||||
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Balance at December 31, 2017 |
1,879 | 12,402 | — | 676 | 14,957 | |||||||||||||||
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Carrying amounts |
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Balance at January 1, 2017 |
1,735 | 6,574 | 184 | 536 | 9,029 | |||||||||||||||
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Balance at December 31, 2017 |
4,622 | 9,794 | 42 | 667 | 15,125 | |||||||||||||||
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| (3) |
Contractual commitments for the acquisition of property and equipment: |
| (In millions of yen) | ||||
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December 31, 2016 |
December 31, 2017 | |||
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1,464 |
527 | |||
The carrying amounts of property and equipment held under finance leases contracts were nil as of December 31, 2016 and 2017. Additions during the year included nil in 2016 and 2017 of property and equipment under finance leases and installment payment contracts.
Construction-in-progress as of December 31, 2016 was mainly related to capital expenditures for the building where the Company’s new headquarter office would be located. Construction-in-progress as of December 31, 2017 was mainly related to capital expenditures for the molds to be used for mass production for Gatebox Inc.’s products.