(a) Changes in property, plant and equipment for the year ended December 31, 2016 are as follows:
| (In millions of won) | ||||||||||||||||||||||||||||
| Land | Buildings and structures |
Machinery and equipment |
Furniture and fixtures |
Construction- in-progress (*1) |
Others | Total | ||||||||||||||||||||||
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Acquisition cost as of January 1, 2016 |
462,787 | 5,998,384 | 36,450,747 | 794,894 | 1,268,946 | 216,044 | 45,191,802 | |||||||||||||||||||||
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Accumulated depreciation as of January 1, 2016 |
— | (2,117,951 | ) | (31,694,483 | ) | (663,331 | ) | — | (164,257 | ) | (34,640,022 | ) | ||||||||||||||||
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Accumulated impairment loss as of January 1, 2016 |
— | — | (5,760 | ) | — | — | — | (5,760 | ) | |||||||||||||||||||
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Book value as of January 1, 2016 |
462,787 | 3,880,433 | 4,750,504 | 131,563 | 1,268,946 | 51,787 | 10,546,020 | |||||||||||||||||||||
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Additions |
— | — | — | — | 4,562,263 | — | 4,562,263 | |||||||||||||||||||||
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Business combinations (*3) |
— | 16,023 | 655 | 449 | — | 663 | 17,790 | |||||||||||||||||||||
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Depreciation |
— | (288,891 | ) | (2,283,482 | ) | (57,130 | ) | — | (13,942 | ) | (2,643,445 | ) | ||||||||||||||||
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Impairment loss |
— | (1,610 | ) | — | — | — | — | (1,610 | ) | |||||||||||||||||||
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Disposals |
(1,303 | ) | (3,204 | ) | (284,855 | ) | (1,746 | ) | — | (862 | ) | (291,970 | ) | |||||||||||||||
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Others (*2) |
— | 313,404 | 2,461,635 | 52,471 | (2,846,180 | ) | 18,670 | — | ||||||||||||||||||||
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Effect of movements in exchange rates |
— | (30,357 | ) | (118,060 | ) | (1,349 | ) | (1,179 | ) | (261 | ) | (151,206 | ) | |||||||||||||||
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Government grants received |
— | (638 | ) | (3,869 | ) | — | (1,886 | ) | — | (6,393 | ) | |||||||||||||||||
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Book value as of December 31, 2016 |
461,484 | 3,885,160 | 4,522,528 | 124,258 | 2,981,964 | 56,055 | 12,031,449 | |||||||||||||||||||||
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Acquisition cost as of December 31, 2016 |
461,484 | 6,284,778 | 37,472,177 | 775,682 | 2,981,964 | 202,306 | 48,178,391 | |||||||||||||||||||||
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Accumulated depreciation as of December 31, 2016 |
— | (2,397,967 | ) | (32,947,359 | ) | (651,424 | ) | — | (146,251 | ) | (36,143,001 | ) | ||||||||||||||||
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Accumulated impairment loss as of December 31, 2016 |
— | (1,651 | ) | (2,290 | ) | — | — | — | (3,941 | ) | ||||||||||||||||||
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| (*1) | As of December 31, 2016, construction-in-progress mainly relates to construction of manufacturing facilities. |
| (*2) | Others are mainly amounts transferred from construction-in-progress. |
| (*3) | Business combinations include property, plant and equipment related to Suzhou Lehui Display Co., Ltd. as its control was transferred to the Controlling Company by exchanging equity interests. |
(b) Changes in property, plant and equipment for the year ended December 31, 2017 are as follows:
| (In millions of won) | ||||||||||||||||||||||||||||
| Land | Buildings and structures |
Machinery and equipment |
Furniture and fixtures |
Construction- in-progress (*1) |
Others | Total | ||||||||||||||||||||||
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Acquisition cost as of January 1, 2017 |
461,484 | 6,284,778 | 37,472,177 | 775,682 | 2,981,964 | 202,306 | 48,178,391 | |||||||||||||||||||||
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Accumulated depreciation as of January 1, 2017 |
— | (2,397,967 | ) | (32,947,359 | ) | (651,424 | ) | — | (146,251 | ) | (36,143,001 | ) | ||||||||||||||||
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Accumulated impairment loss as of January 1, 2017 |
— | (1,651 | ) | (2,290 | ) | — | — | — | (3,941 | ) | ||||||||||||||||||
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Book value as of January 1, 2017 |
461,484 | 3,885,160 | 4,522,528 | 124,258 | 2,981,964 | 56,055 | 12,031,449 | |||||||||||||||||||||
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Additions |
— | — | — | — | 7,272,476 | — | 7,272,476 | |||||||||||||||||||||
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Depreciation |
— | (295,045 | ) | (2,416,202 | ) | (66,963 | ) | — | (13,673 | ) | (2,791,883 | ) | ||||||||||||||||
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Disposals |
(1,042 | ) | (7,206 | ) | (75,275 | ) | (52 | ) | — | (3,133 | ) | (86,708 | ) | |||||||||||||||
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Others (*2) |
69 | 339,640 | 3,825,155 | 87,186 | (4,270,210 | ) | 18,160 | — | ||||||||||||||||||||
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Effect of movements in exchange rates |
— | (63,222 | ) | (140,306 | ) | (3,087 | ) | (14,213 | ) | (687 | ) | (221,515 | ) | |||||||||||||||
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Government grants received |
— | (548 | ) | (3,150 | ) | — | 1,839 | — | (1,859 | ) | ||||||||||||||||||
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Book value as of December 31, 2017 |
460,511 | 3,858,779 | 5,712,750 | 141,342 | 5,971,856 | 56,722 | 16,201,960 | |||||||||||||||||||||
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Acquisition cost as of December 31, 2017 |
460,511 | 6,539,506 | 38,901,158 | 772,824 | 5,971,856 | 205,475 | 52,851,330 | |||||||||||||||||||||
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Accumulated depreciation as of December 31, 2017 |
— | (2,678,970 | ) | (33,186,118 | ) | (631,482 | ) | — | (148,753 | ) | (36,645,323 | ) | ||||||||||||||||
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Accumulated impairment loss as of December 31, 2017 |
— | (1,757 | ) | (2,290 | ) | — | — | — | (4,047 | ) | ||||||||||||||||||
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| (*1) | As of December 31, 2017, construction-in-progress relates to construction of manufacturing facilities. |
| (*2) | Others are mainly amounts transferred from construction-in-progress. |
(c) The capitalized borrowing costs and capitalization rate for the years ended December 31, 2015, 2016 and 2017 are as follows:
| (In millions of won) | ||||||||||||
| 2015 | 2016 | 2017 | ||||||||||
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Capitalized borrowing costs |
13,696 | 16,909 | 47,686 | |||||||||
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Capitalization rate |
3.73 | % | 2.91 | % | 1.92 | % | ||||||