| 14. | PROPERTY, PLANT AND EQUIPMENT |
The carrying amounts of each class of property, plant and equipment were as follows:
| December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| Land | $ | 3,365,013 | $ | 3,258,518 | $ | 109,937 | ||||||
| Buildings and improvements | 58,028,631 | 58,272,864 | 1,966,021 | |||||||||
| Machinery and equipment | 72,700,762 | 66,185,198 | 2,232,969 | |||||||||
| Other equipment | 2,089,581 | 1,588,113 | 53,580 | |||||||||
| Construction in progress and machinery in transit | 7,696,254 | 5,863,713 | 197,831 | |||||||||
| $ | 143,880,241 | $ | 135,168,406 | $ | 4,560,338 | |||||||
For the year ended December 31, 2015
| Land | Buildings and improvements | Machinery and equipment | Other equipment |
Construction in progress and machinery
in transit |
Total | |||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
| Cost | ||||||||||||||||||||||||
| Balance at January 1, 2015 | $ | 3,348,018 | $ | 86,725,254 | $ | 233,669,627 | $ | 7,182,574 | $ | 5,862,217 | $ | 336,787,690 | ||||||||||||
| Additions | 132,584 | 553,496 | 401,417 | 27,193,324 | 28,280,821 | |||||||||||||||||||
| Disposals | - | (405,040 | ) | (8,041,933 | ) | (232,555 | ) | (20,711 | ) | (8,700,239 | ) | |||||||||||||
| Reclassification | - | 8,579,472 | 18,054,712 | 389,783 | (26,893,158 | ) | 130,809 | |||||||||||||||||
| Effect of foreign currency exchange differences | 33,282 | (584,338 | ) | (952,295 | ) | (18,811 | ) | 256,088 | (1,266,074 | ) | ||||||||||||||
| Balance at December 31, 2015 | $ | 3,381,300 | $ | 94,447,932 | $ | 243,283,607 | $ | 7,722,408 | $ | 6,397,760 | $ | 355,233,007 | ||||||||||||
| Accumulated depreciation and impairment | ||||||||||||||||||||||||
| Balance at January 1, 2015 | $ | - | $ | 30,329,544 | $ | 149,497,980 | $ | 5,365,887 | $ | 7,164 | $ | 185,200,575 | ||||||||||||
| Depreciation expense | - | 4,790,646 | 23,372,408 | 775,716 | - | 28,938,770 | ||||||||||||||||||
| Impairment losses recognized | - | 120,424 | 31,116 | - | 106,589 | 258,129 | ||||||||||||||||||
| Disposals | - | (308,895 | ) | (7,838,937 | ) | (224,509 | ) | - | (8,372,341 | ) | ||||||||||||||
| Reclassification | - | 5,704 | (11,920 | ) | 3,008 | - | (3,208 | ) | ||||||||||||||||
| Effect of foreign currency exchange differences | - | (290,545 | ) | (482,349 | ) | (12,688 | ) | (411 | ) | (785,993 | ) | |||||||||||||
| Balance at December 31, 2015 | $ | - | $ | 34,646,878 | $ | 164,568,298 | $ | 5,907,414 | $ | 113,342 | $ | 205,235,932 | ||||||||||||
For the year ended December 31, 2016
| Land | Buildings and improvements | Machinery and equipment | Other equipment |
Construction in progress and machinery
in transit
|
Total | |||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
| Cost | ||||||||||||||||||||||||
| Balance at January 1, 2016 | $ | 3,381,300 | $ | 94,447,932 | $ | 243,283,607 | $ | 7,722,408 | $ | 6,397,760 | $ | 355,233,007 | ||||||||||||
| Additions | - | 22,341 | 94,480 | 470,901 | 27,093,140 | 27,680,862 | ||||||||||||||||||
| Disposals | - | (684,698 | ) | (5,956,179 | ) | (159,822 | ) | (268,782 | ) | (7,069,481 | ) | |||||||||||||
| Reclassification | - | 5,110,102 | 19,661,732 | 691,276 | (25,463,285 | ) | (175 | ) | ||||||||||||||||
| Acquisitions through business combinations | - | - | - | 1,159 | - | 1,159 | ||||||||||||||||||
| Effect of foreign currency exchange differences | (16,287 | ) | (2,637,502 | ) | (8,882,884 | ) | (251,261 | ) | (45,291 | ) | (11,833,225 | ) | ||||||||||||
| Balance at December 31, 2016 | $ | 3,365,013 | $ | 96,258,175 | $ | 248,200,756 | $ | 8,474,661 | $ | 7,713,542 | $ | 364,012,147 | ||||||||||||
| Accumulated depreciation and impairment | ||||||||||||||||||||||||
| Balance at January 1, 2016 | $ | - | $ | 34,646,878 | $ | 164,568,298 | $ | 5,907,414 | $ | 113,342 | $ | 205,235,932 | ||||||||||||
| Depreciation expense | - | 5,114,263 | 22,983,290 | 864,061 | - | 28,961,614 | ||||||||||||||||||
| Impairment losses recognized | - | 620 | 876,123 | 5,564 | 5,924 | 888,231 | ||||||||||||||||||
| Disposals | - | (449,198 | ) | (5,544,489 | ) | (151,875 | ) | (100,049 | ) | (6,245,611 | ) | |||||||||||||
| Reclassification | - | (5,123 | ) | 9,660 | (4,537 | ) | - | - | ||||||||||||||||
| Acquisitions through business combinations | - | - | - | 824 | - | 824 | ||||||||||||||||||
| Effect of foreign currency exchange differences | - | (1,077,896 | ) | (7,392,888 | ) | (236,371 | ) | (1,929 | ) | (8,709,084 | ) | |||||||||||||
| Balance at December 31, 2016 | $ | - | $ | 38,229,544 | $ | 175,499,994 | $ | 6,385,080 | $ | 17,288 | $ | 220,131,906 | ||||||||||||
For the year ended December 31, 2017
| Land | Buildings and improvements | Machinery and equipment | Other equipment |
Construction in progress and machinery
in transit
|
Total | |||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
| Cost | ||||||||||||||||||||||||
| Balance at January 1, 2017 | $ | 3,365,013 | $ | 96,258,175 | $ | 248,200,756 | $ | 8,474,661 | $ | 7,713,542 | $ | 364,012,147 | ||||||||||||
| Additions | - | 350,434 | 102,301 | 130,659 | 23,094,288 | 23,677,682 | ||||||||||||||||||
| Disposals | - | (609,294 | ) | (8,449,949 | ) | (763,937 | ) | (73,248 | ) | (9,896,428 | ) | |||||||||||||
| Reclassification | (35,965 | ) | 6,483,392 | 18,331,738 | 174,947 | (25,428,464 | ) | (474,352 | ) | |||||||||||||||
| Effect of foreign currency exchange differences | (70,530 | ) | (2,294,779 | ) | (4,986,843 | ) | (204,250 | ) | 557,595 | (6,998,807 | ) | |||||||||||||
| Balance at December 31, 2017 | $ | 3,258,518 | $ | 100,187,928 | $ | 253,198,003 | $ | 7,812,080 | $ | 5,863,713 | $ | 370,320,242 | ||||||||||||
| Accumulated depreciation and impairment | ||||||||||||||||||||||||
| Balance at January 1, 2017 | $ | - | $ | 38,229,544 | $ | 175,499,994 | $ | 6,385,080 | $ | 17,288 | $ | 220,131,906 | ||||||||||||
| Depreciation expense | - | 5,156,558 | 22,722,307 | 746,422 | - | 28,625,287 | ||||||||||||||||||
| Impairment losses recognized | - | 2,310 | 286,880 | 368 | - | 289,558 | ||||||||||||||||||
| Disposals | - | (478,903 | ) | (7,540,654 | ) | (720,319 | ) | (17,288 | ) | (8,757,164 | ) | |||||||||||||
| Reclassification | - | (210,080 | ) | 34,452 | (24,117 | ) | - | (199,745 | ) | |||||||||||||||
| Effect of foreign currency exchange differences | - | (784,365 | ) | (3,990,174 | ) | (163,467 | ) | - | (4,938,006 | ) | ||||||||||||||
| Balance at December 31, 2017 | $ | - | $ | 41,915,064 | $ | 187,012,805 | $ | 6,223,967 | $ | - | $ | 235,151,836 | ||||||||||||
| Land | Buildings and improvements | Machinery and equipment | Other equipment |
Construction in progress and machinery
in transit
|
Total | |||||||||||||||||||
| US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | |||||||||||||||||||
| Cost | ||||||||||||||||||||||||
| Balance at January 1,2017 | $ | 113,529 | $ | 3,247,577 | $ | 8,373,845 | $ | 285,920 | $ | 260,241 | $ | 12,281,112 | ||||||||||||
| Additions | - | 11,823 | 3,451 | 4,408 | 779,160 | 798,842 | ||||||||||||||||||
| Disposals | - | (20,556 | ) | (285,086 | ) | (25,774 | ) | (2,471 | ) | (333,887 | ) | |||||||||||||
| Reclassification | (1,212 | ) | 218,738 | 618,480 | 5,902 | (857,911 | ) | (16,003 | ) | |||||||||||||||
| Effect of foreign currency exchange differences | (2,380 | ) | (77,422 | ) | (168,247 | ) | (6,891 | ) | 18,812 | (236,128 | ) | |||||||||||||
| Balance at December 31, 2017 | $ | 109,937 | $ | 3,380,160 | $ | 8,542,443 | $ | 263,565 | $ | 197,831 | $ | 12,493,936 | ||||||||||||
| Accumulated depreciation and impairment | ||||||||||||||||||||||||
| Balance at January 1, 2017 | $ | - | $ | 1,289,796 | $ | 5,921,052 | $ | 215,421 | $ | 583 | $ | 7,426,852 | ||||||||||||
| Depreciation expense | - | 173,973 | 766,610 | 25,183 | - | 965,766 | ||||||||||||||||||
| Impairment losses recognized | - | 78 | 9,679 | 12 | - | 9,769 | ||||||||||||||||||
| Disposals | - | (16,157 | ) | (254,408 | ) | (24,302 | ) | (583 | ) | (295,450 | ) | |||||||||||||
| Reclassification | - | (7,088 | ) | 1,162 | (814 | ) | - | (6,740 | ) | |||||||||||||||
| Effect of foreign currency exchange differences | - | (26,463 | ) | (134,621 | ) | (5,515 | ) | - | (166,599 | ) | ||||||||||||||
| Balance at December 31,2017 | $ | - | $ | 1,414,139 | $ | 6,309,474 | $ | 209,985 | $ | - | $ | 7,933,598 | ||||||||||||
Due to the Group’s future operation plans and capacity evaluation or production demands in segment of packaging and testing, the Group believed that a portion of property, plant and equipment does not qualify for the production needs and therefore recognized an impairment loss of NT$258,129 thousand, NT$888,231 thousand and NT$289,558 thousand (US$9,769 thousand) under the line item of other operating income and expenses in the consolidated statements of comprehensive income for the years ended December 31, 2015, 2016 and 2017, respectively. The recoverable amount of the impaired property, plant and equipment is determined on the basis of its value in use and the Group expects to derive zero future cash flows from these assets.
Each class of property, plant and equipment was depreciated on a straight-line basis over the following useful lives:
| Buildings and improvements | ||
| Main plant buildings | 10-40 years | |
| Cleanrooms | 10-20 years | |
| Others | 3-20 years | |
| Machinery and equipment | 2-10 years | |
| Other equipment | 2-20 years |
The capitalized borrowing costs for the years ended December 31, 2015, 2016 and 2017 are disclosed in Note 24