| 41. | OPERATING SEGMENTS INFORMATION |
The Group has the following reportable segments: Packaging, Testing, EMS and Estate. The Group packages bare semiconductors into finished semiconductors with enhanced electrical and thermal characteristics; provides testing services, including front-end engineering testing, wafer probing and final testing services; engages in the designing, assembling, manufacturing and sale of electronic components and telecommunications equipment motherboards, real estate business in development, sale and leasing. Information about other business activities and operating segments that are not reportable are combined and disclosed in “Others.” The Group engages in other activities such as substrate production.
The accounting policies for segments are the same as those described in Note 4. The measurement basis for resources allocation and performance evaluation is based on profit before income tax.
Segment information for the years ended December 31, 2015, 2016 and 2017 was as follows:
| a. | Segment revenues and operation results |
| Adjustments | ||||||||||||||||||||||||||||
| Packaging | Testing | EMS | Estate | Others | and Eliminations | Total | ||||||||||||||||||||||
| NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||||||||
| For the year ended December 31, 2015 | ||||||||||||||||||||||||||||
| Revenue from external customers | $ | 116,607,314 | $ | 25,191,916 | $ | 138,242,100 | $ | 1,340 | $ | 3,259,866 | $ | - | $ | 283,302,536 | ||||||||||||||
| Inter-segment revenues (Note) | 9,454,671 | 191,608 | 58,451,996 | - | 7,659,282 | (75,757,557 | ) | - | ||||||||||||||||||||
| Segment revenues | 126,061,985 | 25,383,524 | 196,694,096 | 1,340 | 10,919,148 | - | 359,060,093 | |||||||||||||||||||||
| Interest income | 53,235 | 12,536 | 149,385 | 54,876 | 13,445 | (41,393 | ) | 242,084 | ||||||||||||||||||||
| Interest expense | (1,520,118 | ) | (5,821 | ) | (147,792 | ) | - | (636,448 | ) | 41,393 | (2,268,786 | ) | ||||||||||||||||
| Depreciation and amortization | (18,946,460 | ) | (6,516,912 | ) | (2,738,722 | ) | (24,074 | ) | (1,292,496 | ) | - | (29,518,664 | ) | |||||||||||||||
| Share of the profit of associates and joint ventures | 126,265 | - | - | - | - | - | 126,265 | |||||||||||||||||||||
| Impairment loss | (139,397 | ) | - | (102,389 | ) | - | (16,343 | ) | - | (258,129 | ) | |||||||||||||||||
| Segment profit before income tax | 15,479,868 | 6,354,140 | 2,874,944 | (172,521 | ) | 475,357 | - | 25,011,788 | ||||||||||||||||||||
| Expenditures for segment assets | 19,691,068 | 4,754,481 | 2,917,939 | 143,436 | 773,897 | - | 28,280,821 | |||||||||||||||||||||
| December 31, 2015 | ||||||||||||||||||||||||||||
| Investments accounted for using the equity method | 37,122,244 | - | - | - | - | - | 37,122,244 | |||||||||||||||||||||
| Segment assets | 193,323,304 | 42,652,569 | 79,997,341 | 30,000,273 | 19,013,405 | - | 364,986,892 | |||||||||||||||||||||
| For the year ended December 31, 2016 | ||||||||||||||||||||||||||||
| Revenue from external customers | 125,282,829 | 27,031,750 | 115,395,130 | 3,909,580 | 3,264,818 | - | 274,884,107 | |||||||||||||||||||||
| Inter-segment revenues (Note) | 4,929,897 | 243,980 | 47,721,424 | - | 9,186,359 | (62,081,660 | ) | - | ||||||||||||||||||||
| Segment revenues | 130,212,726 | 27,275,730 | 163,116,554 | 3,909,580 | 12,451,177 | - | 336,965,767 | |||||||||||||||||||||
| Interest income | 32,499 | 41,405 | 130,659 | 29,131 | 8,166 | (11,793 | ) | 230,067 | ||||||||||||||||||||
| Interest expense | (1,727,127 | ) | (5,980 | ) | (44,433 | ) | - | (451,790 | ) | 11,793 | (2,217,537 | ) | ||||||||||||||||
| Depreciation and amortization (After retrospectively adjusted) | (18,706,891 | ) | (6,566,936 | ) | (2,759,298 | ) | (55,271 | ) | (1,382,041 | ) | - | (29,470,437 | ) | |||||||||||||||
| Share of the profit of associates and joint ventures (After retrospectively adjusted) | 1,513,394 | (9,484 | ) | - | - | - | - | 1,503,910 | ||||||||||||||||||||
| Impairment loss | (974,095 | ) | (4,136 | ) | (1,886 | ) | - | - | - | (980,117 | ) | |||||||||||||||||
| Segment profit before income tax | 13,921,640 | 7,226,531 | 4,626,263 | 1,546,326 | 647,945 | - | 27,968,705 | |||||||||||||||||||||
| Expenditures for segment assets | 17,561,135 | 8,247,003 | 906,042 | 114,462 | 852,220 | - | 27,680,862 | |||||||||||||||||||||
| December 31, 2016 | ||||||||||||||||||||||||||||
| Investments accounted for using the equity method (After retrospectively adjusted) | 49,597,195 | 227,495 | - | - | - | - | 49,824,690 | |||||||||||||||||||||
| Segment assets (After retrospectively adjusted) | 200,604,111 | 42,962,643 | 73,915,639 | 28,468,242 | 11,979,941 | - | 357,930,576 | |||||||||||||||||||||
| For the year ended December 31, 2017 | ||||||||||||||||||||||||||||
| Revenue from external customers | 126,225,119 | 26,157,277 | 133,948,016 | 412,863 | 3,697,933 | - | 290,441,208 | |||||||||||||||||||||
| Inter-segment revenues (Note) | 4,911,026 | 184,707 | 47,119,404 | 23,943 | 8,359,697 | (60,598,777 | ) | - | ||||||||||||||||||||
| Segment revenues | 131,136,145 | 26,341,984 | 181,067,420 | 436,806 | 12,057,630 | - | 351,039,985 | |||||||||||||||||||||
| Interest income | 43,744 | 48,532 | 269,640 | 30,441 | 183,824 | (269,310 | ) | 306,871 | ||||||||||||||||||||
| Interest expense | (1,969,562 | ) | (11,920 | ) | - | (62,714 | ) | - | 269,310 | (1,774,886 | ) | |||||||||||||||||
| Depreciation and amortization | (19,105,457 | ) | (6,476,743 | ) | (2,133,253 | ) | (180,792 | ) | (1,308,939 | ) | - | (29,205,184 | ) | |||||||||||||||
| Share of the profit or loss of associates and joint ventures | 568,291 | (42,509 | ) | - | - | - | - | 525,782 | ||||||||||||||||||||
| Impairment loss | (218,214 | ) | (72,798 | ) | - | - | (473,869 | ) | - | (764,881 | ) | |||||||||||||||||
| Segment profit before income tax | 12,065,304 | 6,904,067 | 6,883,327 | 5,120,301 | 47,664 | - | 31,020,663 | |||||||||||||||||||||
| Expenditures for segment assets | 17,769,612 | 4,507,097 | 850,235 | 169,559 | 381,179 | - | 23,677,682 | |||||||||||||||||||||
| December 31, 2017 | ||||||||||||||||||||||||||||
| Investments accounted for using the equity method | 48,566,333 | 187,418 | - | - | - | - | 48,753,751 | |||||||||||||||||||||
| Segment assets | 195,503,889 | 43,383,691 | 81,588,691 | 33,080,694 | 10,365,307 | - | 363,922,272 | |||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||||||
| Packaging | Testing | EMS | Estate | Others | and Eliminations | Total | ||||||||||||||||||||||
| US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | US$ (Note 4) | ||||||||||||||||||||||
| For the year ended December 31, 2017 | ||||||||||||||||||||||||||||
| Revenue from external customers | $ | 4,258,607 | $ | 882,499 | $ | 4,519,164 | $ | 13,929 | $ | 124,762 | $ | - | $ | 9,798,961 | ||||||||||||||
| Inter-segment revenues (Note) | 165,689 | 6,232 | 1,589,723 | 808 | 282,041 | (2,044,493 | ) | - | ||||||||||||||||||||
| Segment revenues | 4,424,296 | 888,731 | 6,108,887 | 14,737 | 406,803 | - | 11,843,454 | |||||||||||||||||||||
| Interest income | 1,476 | 1,637 | 9,097 | 1,027 | 6,202 | (9,086 | ) | 10,353 | ||||||||||||||||||||
| Interest expense | (66,450 | ) | (402 | ) | - | (2,116 | ) | - | 9,086 | (59,882 | ) | |||||||||||||||||
| Depreciation and amortization | (644,584 | ) | (218,514 | ) | (71,972 | ) | (6,100 | ) | (44,161 | ) | - | (985,331 | ) | |||||||||||||||
| Share of the profit or loss of associates and joint ventures | 19,173 | (1,434 | ) | - | - | - | - | 17,739 | ||||||||||||||||||||
| Impairment loss | (7,362 | ) | (2,456 | ) | - | - | (15,988 | ) | - | (25,806 | ) | |||||||||||||||||
| Segment profit before income tax | 407,061 | 232,931 | 232,231 | 172,750 | 1,608 | - | 1,046,581 | |||||||||||||||||||||
| Expenditures for segment assets | 599,515 | 152,061 | 28,685 | 5,721 | 12,860 | - | 798,842 | |||||||||||||||||||||
| December 31, 2017 | ||||||||||||||||||||||||||||
| Investments accounted for using the equity method | $ | 1,638,540 | $ | 6,323 | $ | - | $ | - | $ | - | $ | - | $ | 1,644,863 | ||||||||||||||
| Segment assets | 6,595,947 | 1,463,687 | 2,752,655 | 1,116,083 | 349,707 | - | 12,278,079 | |||||||||||||||||||||
| Note: | Inter-segment revenues were eliminated upon consolidation. |
(Concluded)
| b. | Revenue from major products and services |
| For the Year Ended December 31 | ||||||||||||||||
| 2015 | 2016 | 2017 | ||||||||||||||
| NT$ | NT$ | NT$ | US$ (Note 4) | |||||||||||||
| Packaging service | $ | 116,607,314 | $ | 125,282,829 | $ | 126,225,119 | $ | 4,258,607 | ||||||||
| Testing service | 25,191,916 | 27,031,750 | 26,157,277 | 882,499 | ||||||||||||
| Electronic components manufacturing service | 138,242,100 | 115,395,130 | 133,948,016 | 4,519,164 | ||||||||||||
| Others | 3,261,206 | 7,174,398 | 4,110,796 | 138,691 | ||||||||||||
| $ | 283,302,536 | $ | 274,884,107 | $ | 290,441,208 | $ | 9,798,961 | |||||||||
| c. | Geographical information |
Geographical information about revenue from external customers and noncurrent assets are reported based on the country where the external customers are headquartered and noncurrent assets are located, respectively.
| 1) | Net revenues from external customers |
| For the Year Ended December 31 | ||||||||||||||||
| 2015 | 2016 | 2017 | ||||||||||||||
| NT$ | NT$ | NT$ | US$ (Note 4) | |||||||||||||
| United States | $ | 205,730,670 | $ | 180,745,837 | $ | 196,462,345 | $ | 6,628,284 | ||||||||
| Taiwan | 32,631,149 | 38,868,679 | 35,413,647 | 1,194,792 | ||||||||||||
| Asia | 22,885,128 | 29,896,304 | 30,201,332 | 1,018,938 | ||||||||||||
| Europe | 20,577,069 | 23,275,732 | 26,445,240 | 892,215 | ||||||||||||
| Others | 1,478,520 | 2,097,555 | 1,918,644 | 64,732 | ||||||||||||
| $ | 283,302,536 | $ | 274,884,107 | $ | 290,441,208 | $ | 9,798,961 | |||||||||
| 2) | Noncurrent assets, excluding financial instruments, post-employment benefit assets and deferred tax assets |
| December 31 | ||||||||||||
| 2016 | 2017 | |||||||||||
| NT$ | NT$ | US$ (Note 4) | ||||||||||
| Taiwan | $ | 97,337,094 | $ | 93,350,839 | $ | 3,149,489 | ||||||
| China | 34,142,577 | 45,376,164 | 1,530,910 | |||||||||
| Others | 26,935,370 | 25,025,498 | 844,315 | |||||||||
| $ | 158,415,041 | $ | 163,752,501 | $ | 5,524,714 | |||||||
| d. | Major customers |
Except one customer from which the operating revenues generated from packaging and EMS segments was NT$88,311,697 thousand, NT$66,554,659 thousand and NT$83,873,393 thousand (US$2,829,737 thousand) in 2015, 2016 and 2017, respectively, the Group did not have other single customer to which the operating revenues exceeded 10% of operating revenues for the years ended December 31, 2015, 2016 and 2017.