|
17. |
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
December 31 |
|
|||||
|
|
|
2016 |
|
|
2017 |
|
||
|
|
|
NT$ |
|
|
NT$ |
|
||
|
|
|
(In Millions) |
|
|||||
|
Carrying amount |
|
|
|
|
|
|
|
|
|
Land |
|
$ |
103,872 |
|
|
$ |
104,079 |
|
|
Land improvements |
|
|
333 |
|
|
|
302 |
|
|
Buildings |
|
|
42,147 |
|
|
|
45,895 |
|
|
Computer equipment |
|
|
2,713 |
|
|
|
2,374 |
|
|
Telecommunications equipment |
|
|
119,195 |
|
|
|
114,900 |
|
|
Transportation equipment |
|
|
629 |
|
|
|
321 |
|
|
Miscellaneous equipment |
|
|
2,140 |
|
|
|
2,310 |
|
|
Construction in progress and equipment to be accepted |
|
|
20,141 |
|
|
|
18,527 |
|
|
|
|
$ |
291,170 |
|
|
$ |
288,708 |
|
|
|
|
Land |
|
|
Land Improvements |
|
|
Buildings |
|
|
Computer Equipment |
|
|
Telecommuni- cations Equipment |
|
|
Transportation Equipment |
|
|
Miscellaneous Equipment |
|
|
Construction in Progress and Equipment to be Accepted |
|
|
Total |
|
|||||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|||||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||||||||||||||
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2015 |
|
$ |
102,774 |
|
|
$ |
1,558 |
|
|
$ |
67,600 |
|
|
$ |
15,318 |
|
|
$ |
695,076 |
|
|
$ |
3,824 |
|
|
$ |
8,643 |
|
|
$ |
20,930 |
|
|
$ |
915,723 |
|
|
Additions |
|
|
— |
|
|
|
— |
|
|
|
59 |
|
|
|
37 |
|
|
|
159 |
|
|
|
— |
|
|
|
203 |
|
|
|
23,993 |
|
|
|
24,451 |
|
|
Disposal |
|
|
— |
|
|
|
— |
|
|
|
(11 |
) |
|
|
(1,073 |
) |
|
|
(13,047 |
) |
|
|
(69 |
) |
|
|
(511 |
) |
|
|
— |
|
|
|
(14,711 |
) |
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69 |
|
|
Acquisitions through business combinations |
|
|
19 |
|
|
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
|
|
65 |
|
|
Others |
|
|
(46 |
) |
|
|
17 |
|
|
|
135 |
|
|
|
714 |
|
|
|
23,115 |
|
|
|
60 |
|
|
|
363 |
|
|
|
(24,521 |
) |
|
|
(163 |
) |
|
Balance on December 31, 2015 |
|
$ |
102,747 |
|
|
$ |
1,575 |
|
|
$ |
67,790 |
|
|
$ |
14,996 |
|
|
$ |
705,372 |
|
|
$ |
3,815 |
|
|
$ |
8,737 |
|
|
$ |
20,402 |
|
|
$ |
925,434 |
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2015 |
|
$ |
— |
|
|
$ |
(1,145 |
) |
|
$ |
(23,202 |
) |
|
$ |
(11,308 |
) |
|
$ |
(568,767 |
) |
|
$ |
(2,208 |
) |
|
$ |
(6,443 |
) |
|
$ |
— |
|
|
$ |
(613,073 |
) |
|
Depreciation expenses |
|
|
— |
|
|
|
(53 |
) |
|
|
(1,269 |
) |
|
|
(1,467 |
) |
|
|
(26,291 |
) |
|
|
(599 |
) |
|
|
(671 |
) |
|
|
— |
|
|
|
(30,350 |
) |
|
Disposal |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
1,061 |
|
|
|
13,033 |
|
|
|
69 |
|
|
|
425 |
|
|
|
— |
|
|
|
14,598 |
|
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(138 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(138 |
) |
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14 |
) |
|
Acquisitions through business combinations |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28 |
) |
|
|
— |
|
|
|
(29 |
) |
|
Others |
|
|
— |
|
|
|
(5 |
) |
|
|
41 |
|
|
|
(1 |
) |
|
|
(28 |
) |
|
|
(12 |
) |
|
|
(24 |
) |
|
|
— |
|
|
|
(29 |
) |
|
Balance on December 31, 2015 |
|
$ |
— |
|
|
$ |
(1,203 |
) |
|
$ |
(24,421 |
) |
|
$ |
(11,715 |
) |
|
$ |
(582,205 |
) |
|
$ |
(2,750 |
) |
|
$ |
(6,741 |
) |
|
$ |
— |
|
|
$ |
(629,035 |
) |
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2016 |
|
$ |
102,747 |
|
|
$ |
1,575 |
|
|
$ |
67,790 |
|
|
$ |
14,996 |
|
|
$ |
705,372 |
|
|
$ |
3,815 |
|
|
$ |
8,737 |
|
|
$ |
20,402 |
|
|
$ |
925,434 |
|
|
Additions |
|
|
791 |
|
|
|
— |
|
|
|
36 |
|
|
|
42 |
|
|
|
171 |
|
|
|
1 |
|
|
|
255 |
|
|
|
23,295 |
|
|
|
24,591 |
|
|
Disposal |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
(35 |
) |
|
|
(1,546 |
) |
|
|
(11,542 |
) |
|
|
(54 |
) |
|
|
(625 |
) |
|
|
— |
|
|
|
(13,810 |
) |
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
(35 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(42 |
) |
|
Others |
|
|
336 |
|
|
|
12 |
|
|
|
(53 |
) |
|
|
806 |
|
|
|
21,726 |
|
|
|
104 |
|
|
|
580 |
|
|
|
(23,556 |
) |
|
|
(45 |
) |
|
Balance on December 31, 2016 |
|
$ |
103,872 |
|
|
$ |
1,581 |
|
|
$ |
67,738 |
|
|
$ |
14,295 |
|
|
$ |
715,692 |
|
|
$ |
3,866 |
|
|
$ |
8,943 |
|
|
$ |
20,141 |
|
|
$ |
936,128 |
|
(Continued)
|
|
|
Land |
|
|
Land Improvements |
|
|
Buildings |
|
|
Computer Equipment |
|
|
Telecommuni- cations Equipment |
|
|
Transportation Equipment |
|
|
Miscellaneous Equipment |
|
|
Construction in Progress and Equipment to be Accepted |
|
|
Total |
|
|||||||||
|
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|
NT$ |
|
|||||||||
|
|
|
(In Millions) |
|
|||||||||||||||||||||||||||||||||
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2016 |
|
$ |
— |
|
|
$ |
(1,203 |
) |
|
$ |
(24,421 |
) |
|
$ |
(11,715 |
) |
|
$ |
(582,205 |
) |
|
$ |
(2,750 |
) |
|
$ |
(6,741 |
) |
|
$ |
— |
|
|
$ |
(629,035 |
) |
|
Depreciation expenses |
|
|
— |
|
|
|
(51 |
) |
|
|
(1,269 |
) |
|
|
(1,332 |
) |
|
|
(25,280 |
) |
|
|
(529 |
) |
|
|
(626 |
) |
|
|
— |
|
|
|
(29,087 |
) |
|
Disposal |
|
|
— |
|
|
|
6 |
|
|
|
34 |
|
|
|
1,529 |
|
|
|
11,512 |
|
|
|
54 |
|
|
|
583 |
|
|
|
— |
|
|
|
13,718 |
|
|
Impairment losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(596 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(596 |
) |
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
7 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
12 |
|
|
Others |
|
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
(65 |
) |
|
|
65 |
|
|
|
(12 |
) |
|
|
(23 |
) |
|
|
— |
|
|
|
30 |
|
|
Balance on December 31, 2016 |
|
$ |
— |
|
|
$ |
(1,248 |
) |
|
$ |
(25,591 |
) |
|
$ |
(11,582 |
) |
|
$ |
(596,497 |
) |
|
$ |
(3,237 |
) |
|
$ |
(6,803 |
) |
|
$ |
— |
|
|
$ |
(644,958 |
) |
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2017 |
|
$ |
103,872 |
|
|
$ |
1,581 |
|
|
$ |
67,738 |
|
|
$ |
14,295 |
|
|
$ |
715,692 |
|
|
$ |
3,866 |
|
|
$ |
8,943 |
|
|
$ |
20,141 |
|
|
$ |
936,128 |
|
|
Additions |
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
78 |
|
|
|
193 |
|
|
|
1 |
|
|
|
193 |
|
|
|
25,574 |
|
|
|
26,069 |
|
|
Disposal |
|
|
(158 |
) |
|
|
(5 |
) |
|
|
(108 |
) |
|
|
(974 |
) |
|
|
(13,739 |
) |
|
|
(62 |
) |
|
|
(402 |
) |
|
|
— |
|
|
|
(15,448 |
) |
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(172 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(176 |
) |
|
Others |
|
|
365 |
|
|
|
19 |
|
|
|
5,034 |
|
|
|
764 |
|
|
|
20,080 |
|
|
|
29 |
|
|
|
784 |
|
|
|
(27,188 |
) |
|
|
(113 |
) |
|
Balance on December 31, 2017 |
|
$ |
104,079 |
|
|
$ |
1,595 |
|
|
$ |
72,694 |
|
|
$ |
14,162 |
|
|
$ |
722,054 |
|
|
$ |
3,834 |
|
|
$ |
9,515 |
|
|
$ |
18,527 |
|
|
$ |
946,460 |
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance on January 1, 2017 |
|
$ |
— |
|
|
$ |
(1,248 |
) |
|
$ |
(25,591 |
) |
|
$ |
(11,582 |
) |
|
$ |
(596,497 |
) |
|
$ |
(3,237 |
) |
|
$ |
(6,803 |
) |
|
$ |
— |
|
|
$ |
(644,958 |
) |
|
Depreciation expenses |
|
|
— |
|
|
|
(50 |
) |
|
|
(1,402 |
) |
|
|
(1,192 |
) |
|
|
(24,492 |
) |
|
|
(330 |
) |
|
|
(677 |
) |
|
|
— |
|
|
|
(28,143 |
) |
|
Disposal |
|
|
— |
|
|
|
4 |
|
|
|
47 |
|
|
|
967 |
|
|
|
13,712 |
|
|
|
63 |
|
|
|
389 |
|
|
|
— |
|
|
|
15,182 |
|
|
Effect of foreign exchange differences |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
47 |
|
|
Others |
|
|
— |
|
|
|
1 |
|
|
|
147 |
|
|
|
19 |
|
|
|
78 |
|
|
|
(9 |
) |
|
|
(116 |
) |
|
|
— |
|
|
|
120 |
|
|
Balance on December 31, 2017 |
|
$ |
— |
|
|
$ |
(1,293 |
) |
|
$ |
(26,799 |
) |
|
$ |
(11,788 |
) |
|
$ |
(607,154 |
) |
|
$ |
(3,513 |
) |
|
$ |
(7,205 |
) |
|
$ |
— |
|
|
$ |
(657,752 |
) |
(Concluded)
Due to technology upgrade, some telecommunications equipment became obsolete in 2015. The Company determined that some telecommunications equipment was impaired in 2016 due to the expiration of 2G license in June 2017 which will lead to the termination of the related service. The Company evaluated and concluded the recoverable amount determined on the basis of value in use of aforementioned telecommunications equipment was lower than the carrying value, and recognized impairment losses of $138 million and $596 million for the years ended December 31, 2015 and 2016, respectively. In addition, the Company evaluated and concluded the recoverable amount of partial computer and miscellaneous equipment was nil and recognized impairment losses of $0.4 million for the year ended December 31, 2016. The impairment loss was included in other income and expenses in the statements of comprehensive income. There was no indication that property, plant and equipment was impaired so the Company did not recognize any impairment loss for the year ended December 31, 2017.
Depreciation expense is computed using the straight-line method over the following estimated service lives:
|
Land improvements |
|
8-30 years |
|
Buildings |
|
|
|
Main buildings |
|
35-60 years |
|
Other building facilities |
|
3-20 years |
|
Computer equipment |
|
2-8 years |
|
Telecommunications equipment |
|
|
|
Telecommunication circuits |
|
2-30 years |
|
Telecommunication machinery and antennas equipment |
|
2-30 years |
|
Transportation equipment |
|
3-10 years |
|
Miscellaneous equipment |
|
|
|
Leasehold improvements |
|
1-6 years |
|
Mechanical and air conditioner equipment |
|
3-16 years |
|
Others |
|
1-10 years |