(Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F
or Form
40-F.)
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of 1934.)
(If Yes is marked, indicated below the file number assigned to the registrant in connection with Rule
12g3-2(b):
82: .)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE
THREE MONTHS ENDED MARCH 31, 2017 and 2016
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
(Reviewed, Not Audited)
Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China
(R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and
other semiconductor devices and the manufacturing of masks.
On September 5, 1994, TSMCs shares were listed on the Taiwan Stock
Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8,
Li-Hsin
Rd. 6,
Hsinchu Science Park, Taiwan. The principal operating activities of TSMCs subsidiaries are described in Note 4.
2.
|
THE AUTHORIZATION OF FINANCIAL STATEMENTS
|
The accompanying consolidated financial
statements were reported to the Board of Directors and issued on May 9, 2017.
3.
|
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS
|
|
a.
|
Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting
Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) for application starting from 2017
|
Rule No. 1050050021 and Rule No. 1050026834 issued by the FSC stipulated that starting January 1, 2017, TSMC and its
subsidiaries (collectively as the Company) should apply the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC and SIC issued by the International Accounting
Standards Board (IASB) (collectively, IFRSs) and endorsed and issued into effect by the FSC for application starting from 2017.
Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by
Securities Issuers and the IFRSs endorsed and issued into effect by the FSC for application starting from 2017 would not have a significant effect on the Companys accounting policies:
|
1)
|
Amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers
|
The amendments stipulate that other companies or institutions of which the chairman of the board of directors or president serves as the
chairman of the board of directors or the president, or is the spouse or second immediate family of the chairman of the board of directors or president of the Company are deemed to have a substantive related party relationship, unless it can be
demonstrated that no control, joint control, or significant influence exists. Furthermore, the amendments require the disclosure of the names of the related parties and the relationship with whom the Company has significant transaction. If the
transaction or balance with a specific related party is 10% or more of the Companys respective total transaction or balance, such transaction should be separately disclosed by the name of each related party.
- 8 -
When the amendments are applied retrospectively from January 1, 2017, the disclosure of
related party transactions is enhanced, please refer to Note 29.
|
b.
|
The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC
|
The Company has
not applied the following IFRSs issued by the IASB but not endorsed and issued into effect by the FSC. The FSC announced that the Company should apply IFRS 9 and IFRS 15 starting January 1, 2018. As of the date the consolidated financial
statements were issued, the FSC has not announced the effective dates of other new IFRSs.
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued by IASB (Note 1)
|
|
|
|
Annual Improvements to IFRSs 2014-2016 Cycle
|
|
Note 2
|
Amendment to IFRS 2 Classification and Measurement of Share-based Payment
Transactions
|
|
January 1, 2018
|
IFRS 9 Financial Instruments
|
|
January 1, 2018
|
Amendments to IFRS 9 and IFRS 7 Mandatory Effective Date of IFRS 9 and Transition
Disclosure
|
|
January 1, 2018
|
Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
|
|
To be determined by IASB
|
IFRS 15 Revenue from Contracts with Customers
|
|
January 1, 2018
|
Amendment to IFRS 15 Clarifications to IFRS 15
|
|
January 1, 2018
|
IFRS 16 Leases
|
|
January 1, 2019
|
Amendment to IAS 7 Disclosure Initiative
|
|
January 1, 2017
|
Amendment to IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses
|
|
January 1, 2017
|
IFRIC 22 Foreign Currency Transactions and Advance Consideration
|
|
January 1, 2018
|
|
Note 1:
|
The aforementioned new, revised or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates, unless specified otherwise.
|
|
Note 2:
|
The amendment to IFRS 12 is retrospectively applied for annual periods beginning on or after January 1, 2017; the amendment to IAS 28 is retrospectively applied for annual periods beginning on or after
January 1, 2018.
|
Except for the following items, the Company believes that the adoption of aforementioned standards or
interpretations will not have a significant effect on the Companys accounting policies.
- 9 -
|
1)
|
IFRS 9, Financial Instruments
|
All recognized financial assets currently in the
scope of IAS 39, Financial Instruments: Recognition and Measurement, will be subsequently measured at either the amortized cost or the fair value. The classification and measurement requirements in IFRS 9 are stated as follows:
For the debt instruments invested by the Company, if the contractual cash flows that are solely for payments of principal and interest on the
principal amount outstanding, the classification and measurement requirements are stated as follows:
|
a)
|
If the objective of the Companys business model is to hold the financial asset to collect the contractual cash flows, such assets are measured at the amortized cost. Interest revenue should be recognized in profit
or loss by using the effective interest method, continuously assessed for impairment and the impairment loss or reversal of impairment loss should be recognized in profit and loss.
|
|
b)
|
If the objective of the Companys business model is to hold the financial asset both to collect the contractual cash flows and to sell the financial assets, such assets are measured at fair value through other
comprehensive income and are continuously assessed for impairment. Interest revenue should be recognized in profit or loss by using the effective interest method. A gain or loss on a financial asset measured at fair value through other comprehensive
income should be recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses. When such financial asset is derecognized or reclassified, the cumulative gain or loss previously recognized in
other comprehensive income is reclassified from equity to profit or loss.
|
The other financial assets which do not meet the
aforementioned criteria should be measured at the fair value through profit or loss. However, the Company may irrevocably designate an investment in equity instruments that is not held for trading as measured at fair value through other
comprehensive income. All relevant gains and losses shall be recognized in other comprehensive income, except for dividends which are recognized in profit or loss. No subsequent impairment assessment is required, and the cumulative gain or loss
previously recognized in other comprehensive income cannot be reclassified from equity to profit or loss.
IFRS 9 adds a new expected loss
impairment model to measure the impairment of financial assets. A loss allowance for expected credit losses should be recognized on financial assets measured at amortized cost and financial assets mandatorily measured at fair value through other
comprehensive income. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company should measure the loss allowance for that financial instrument at an amount equal to
12-month
expected credit losses. If the credit risk on a financial instrument has increased significantly since initial recognition and is not deemed to be a low credit risk, the Company should measure the loss
allowance for that financial instrument at an amount equal to the lifetime expected credit losses. The Company should always measure the loss allowance at an amount equal to lifetime expected credit losses for trade receivables.
The main changes in hedge accounting amended the application requirements for hedge accounting to better reflect the entitys risk
management activities. Compared with IAS 39, the main changes include: (1) enhancing types of transactions eligible for hedge accounting, specifically broadening the risks eligible for hedge accounting of
non-financial
items; (2) changing the way hedging derivative instruments are accounted for to reduce profit or loss volatility; and (3) replacing retrospective effectiveness assessment with the
principle of economic relationship between the hedging instrument and the hedged item.
When IFRS 9 becomes effective, the Company may
elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application. However, the
requirements for general hedge accounting shall be applied prospectively.
- 10 -
|
2)
|
IFRS 15, Revenue from Contracts with Customers and related amendment
|
IFRS 15
establishes principles for recognizing revenue that apply to all contracts with customers, and will supersede IAS 18, Revenue, IAS 11, Construction Contracts, and a number of revenue-related interpretations.
When applying IFRS 15, the Company shall recognize revenue by applying the following steps:
|
|
|
Identify the contract with the customer;
|
|
|
|
Identify the performance obligations in the contract;
|
|
|
|
Determine the transaction price;
|
|
|
|
Allocate the transaction price to the performance obligations in the contracts; and
|
|
|
|
Recognize revenue when the entity satisfies a performance obligation.
|
When IFRS 15 and
related amendment are effective, the Company may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this Standard recognized at the date of
initial application.
IFRS 16 sets out the accounting standards for leases that will
supersede IAS 17 and a number of related interpretations.
Under IFRS 16, if the Company is a lessee, it shall recognize
right-of-use
assets and lease liabilities for all leases on the consolidated balance sheets except for
low-value
and short-term leases.
The Company may elect to apply the accounting method similar to the accounting for operating lease under IAS 17 to the
low-value
and short-term leases. On the consolidated statements of comprehensive income,
the Company should present the depreciation expense charged on the
right-of-use
asset separately from interest expense accrued on the lease liability; interest is
computed by using effective interest method. On the consolidated statements of cash flows, cash payments for both the principal and interest portion of the lease liability are classified within financing activities.
When IFRS 16 becomes effective, the Company may elect to apply this Standard either retrospectively to each prior reporting period presented
or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application.
Except for the aforementioned impact, as of the date that the accompanying consolidated financial statements were issued, the Company continues
in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the other standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.
4.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Except for the following, the accounting
policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2016.
For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese
version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall
prevail.
- 11 -
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial
Reports by Securities Issuers and IAS 34, Interim Financial Reporting, endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual
consolidated financial statements prepared under the IFRSs endorsed and issued into effect by the FSC (collectively, Taiwan-IFRSs) for application starting from 2017.
Basis of Consolidation
The basis of preparation and the basis for the consolidated financial statements
The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are
consistent with those applied in the consolidated financial statements for the year ended December 31, 2016.
The subsidiaries in
the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Establishment
and Operating
Location
|
|
Percentage of Ownership
|
|
|
|
|
Name of Investor
|
|
Name of Investee
|
|
Main Businesses and Products
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Selling and marketing of integrated circuits and other semiconductor devices
|
|
San Jose, California, U.S.A.
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
TSMC Japan Limited (TSMC Japan)
|
|
Customer service and supporting activities
|
|
Yokohama, Japan
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Partners, Ltd. (TSMC Partners)
|
|
Investing in companies involved in the design, manufacture, and other related business in the
semiconductor industry and other investment activities
|
|
Tortola, British Virgin Islands
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Korea Limited (TSMC Korea)
|
|
Customer service and supporting activities
|
|
Seoul, Korea
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Europe B.V. (TSMC Europe)
|
|
Customer service and supporting activities
|
|
Amsterdam, the Netherlands
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Global, Ltd. (TSMC Global)
|
|
Investment activities
|
|
Tortola, British Virgin Islands
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
TSMC China Company Limited (TSMC China)
|
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other
semiconductor devices
|
|
Shanghai, China
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
TSMC Nanjing Company Limited (TSMC Nanjing)
|
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other
semiconductor devices
|
|
Nanjing, China
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
b)
|
|
|
|
VentureTech Alliance Fund III, L.P. (VTAF III)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
98%
|
|
|
|
98%
|
|
|
|
98%
|
|
|
|
a)
|
|
|
|
VentureTech Alliance Fund II, L.P. (VTAF II)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
98%
|
|
|
|
98%
|
|
|
|
98%
|
|
|
|
a)
|
|
|
|
Emerging Alliance Fund, L.P. (Emerging Alliance)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
|
|
|
|
|
|
|
|
99.5%
|
|
|
|
a),
c)
|
|
|
|
TSMC Solar Europe GmbH
|
|
Selling of solar related products and providing customer service
|
|
Hamburg, Germany
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a),
d)
|
|
|
|
Chi Cherng Investment Co., Ltd. (Chi Cherng)
|
|
Investment activities
|
|
Taipei, Taiwan
|
|
|
|
|
|
|
|
|
|
|
100%
|
|
|
|
e)
|
|
|
|
VisEra Technologies Company Ltd. (VisEra Tech)
|
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing,
manufacturing, selling, packaging and testing of color filter
|
|
Hsin-Chu,
Taiwan
|
|
|
87%
|
|
|
|
87%
|
|
|
|
|
|
|
|
f)
|
|
(Continued)
- 12 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Establishment
and Operating
Location
|
|
Percentage of Ownership
|
|
|
|
|
Name of Investor
|
|
Name of Investee
|
|
Main Businesses and Products
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
TSMC Design Technology Canada Inc. (TSMC Canada)
|
|
Engineering support activities
|
|
Ontario, Canada
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Technology, Inc. (TSMC Technology)
|
|
Engineering support activities
|
|
Delaware, U.S.A.
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
|
|
TSMC Development, Inc. (TSMC Development)
|
|
Investing in companies involved in the manufacturing related business in the semiconductor
industry
|
|
Delaware, U.S.A.
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
InveStar Semiconductor Development Fund, Inc. (ISDF)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
97%
|
|
|
|
97%
|
|
|
|
97%
|
|
|
|
a), g)
|
|
|
|
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
97%
|
|
|
|
97%
|
|
|
|
97%
|
|
|
|
a), g)
|
|
|
|
VisEra Holding Company (VisEra Holding)
|
|
Investing in companies involved in the design, manufacturing and other related businesses in the
semiconductor industry
|
|
Cayman Islands
|
|
|
|
|
|
|
|
|
|
|
98%
|
|
|
|
a), f)
|
|
TSMC Development
|
|
WaferTech, LLC (WaferTech)
|
|
Manufacturing, selling and testing of integrated circuits and other semiconductor devices
|
|
Washington, U.S.A.
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
VTAF III
|
|
Mutual-Pak
Technology Co., Ltd.
(Mutual-Pak)
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and
researching, developing and testing of RFID
|
|
New Taipei, Taiwan
|
|
|
58%
|
|
|
|
58%
|
|
|
|
58%
|
|
|
|
a)
|
|
|
|
Growth Fund Limited (Growth Fund)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
|
100%
|
|
|
|
100%
|
|
|
|
100%
|
|
|
|
a)
|
|
VTAF III, VTAF II and Emerging Alliance
|
|
VentureTech Alliance Holdings, LLC (VTA Holdings)
|
|
Investing in new
start-up
technology companies
|
|
Delaware, U.S.A.
|
|
|
|
|
|
|
|
|
|
|
100%
|
|
|
|
a), c), h)
|
|
VTAF III, VTAF II and TSMC
|
|
VTA Holdings
|
|
Investing in new
start-up
technology companies
|
|
Delaware, U.S.A.
|
|
|
100%
|
|
|
|
100%
|
|
|
|
|
|
|
|
a), c), h)
|
|
VisEra Holding
|
|
VisEra Tech
|
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing,
manufacturing, selling, packaging and testing of color filter
|
|
Hsin-Chu,
Taiwan
|
|
|
|
|
|
|
|
|
|
|
87%
|
|
|
|
f)
|
|
(Concluded)
|
Note a:
|
This is an immaterial subsidiary for which the consolidated financial statements are not reviewed by the Companys independent accountants.
|
|
Note b:
|
Under the investment agreement entered into with the municipal government of Nanjing, China on March 28, 2016, the Company will make an investment in Nanjing in the amount of approximately US$3 billion to
establish a subsidiary operating a 300mm wafer fab with the capacity of 20,000
12-inch
wafers per month, and a design service center. TSMC Nanjing was established in May 2016.
|
|
Note c:
|
Due to the expiration of the investment agreement between Emerging Alliance and TSMC, Emerging Alliance completed the liquidation procedures in April 2016. Emerging Alliances ownership in VTA Holdings was held
directly by TSMC.
|
|
Note d:
|
TSMC Solar Europe GmbH has started the liquidation procedures.
|
|
Note e:
|
Chi Cherng was incorporated into TSMC in December 2016.
|
|
Note f:
|
To simplify investment structure, VisEra Tech owned by VisEra Holding was transferred to TSMC in the third quarter of 2016. In October 2016, VisEra Holding was incorporated into TSMC Partners, the subsidiary of TSMC.
|
|
Note g:
|
ISDF and ISDF II have started the liquidation procedures.
|
|
Note h:
|
VTA Holdings completed the liquidation procedures in April 2017.
|
Retirement Benefits
Pension cost for an interim period is calculated on a
year-to-date
basis by using the actuarially determined pension cost rate at the end of the prior financial year.
Taxation
Income tax
expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective
income tax rate applied to the
pre-tax
income of the interim period.
- 13 -
5.
|
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY
|
The same
critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Companys consolidated financial statements for the year ended
December 31, 2016.
6.
|
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits in banks
|
|
$
|
564,224,428
|
|
|
$
|
536,895,344
|
|
|
$
|
610,578,696
|
|
Repurchase agreements collateralized by corporate bonds
|
|
|
500,838
|
|
|
|
2,361,250
|
|
|
|
7,005,622
|
|
Commercial paper
|
|
|
|
|
|
|
1,997,239
|
|
|
|
|
|
Repurchase agreements collateralized by government bonds
|
|
|
|
|
|
|
|
|
|
|
400,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
564,725,266
|
|
|
$
|
541,253,833
|
|
|
$
|
617,984,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of
cash and were subject to an insignificant risk of changes in value.
7.
|
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
23,432
|
|
|
$
|
142,406
|
|
|
$
|
618,810
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
10,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,432
|
|
|
|
153,382
|
|
|
|
618,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
5,344,256
|
|
|
|
6,297,708
|
|
|
|
|
|
Forward exchange contracts
|
|
|
6,315
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,350,571
|
|
|
|
6,297,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,374,003
|
|
|
$
|
6,451,112
|
|
|
$
|
618,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
80,795
|
|
|
$
|
91,585
|
|
|
$
|
16
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
44,140
|
|
|
|
99,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
124,935
|
|
|
$
|
191,135
|
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange
rates. The derivative contracts entered into by the Company did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for derivative contracts.
- 14 -
Outstanding forward exchange contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
Maturity Date
|
|
(In Thousands)
|
|
|
|
|
|
|
|
March
31, 2017
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
April 2017 to May 2017
|
|
|
NT$3,147,552/EUR96,000
|
|
Sell NT$/Buy JPY
|
|
April 2017 to May 2017
|
|
|
NT$12,846,853/JPY47,100,000
|
|
Sell US$/Buy EUR
|
|
April 2017
|
|
|
US$109,848/EUR101,270
|
|
Sell US$/Buy JPY
|
|
April 2017
|
|
|
US$129,021/JPY14,339,800
|
|
Sell US$/Buy NT$
|
|
April 2017 to May 2017
|
|
|
US$8,000/NT$245,033
|
|
Sell US$/Buy RMB
|
|
April 2017 to June 2017
|
|
|
US$469,482/RMB3,233,987
|
|
|
|
|
December
31, 2016
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
January 2017
|
|
|
NT$5,393,329/EUR159,400
|
|
Sell NT$/Buy JPY
|
|
January 2017
|
|
|
NT$7,314,841/JPY26,501,800
|
|
Sell US$/Buy EUR
|
|
January 2017
|
|
|
US$4,180/EUR4,000
|
|
Sell US$/Buy JPY
|
|
January 2017
|
|
|
US$428/JPY50,000
|
|
Sell US$/Buy NT$
|
|
January 2017 to February 2017
|
|
|
US$439,000/NT$14,138,202
|
|
Sell US$/Buy RMB
|
|
January 2017 to June 2017
|
|
|
US$421,750/RMB2,908,380
|
|
|
|
|
March
31, 2016
|
|
|
|
|
|
|
|
|
|
Sell US$/Buy JPY
|
|
April 2016
|
|
|
US$500/JPY56,125
|
|
Sell US$/Buy RMB
|
|
April 2016
|
|
|
US$193,000/RMB1,255,743
|
|
Sell US$/Buy NT$
|
|
April 2016 to May 2016
|
|
|
US$1,092,000/NT$35,729,464
|
|
Outstanding cross currency swap contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity Date
|
|
Contract Amount
(In Thousands)
|
|
|
Range of
Interest Rates
Paid
|
|
|
Range of
Interest Rates
Received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 2017
|
|
|
US$170,000/NT$5,487,600
|
|
|
|
3.98%
|
|
|
|
|
|
8.
|
AVAILABLE-FOR-SALE
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
31,423,219
|
|
|
$
|
29,999,508
|
|
|
$
|
9,343,220
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
17,234,724
|
|
|
|
14,880,482
|
|
|
|
5,507,441
|
|
Asset-backed securities
|
|
|
11,252,756
|
|
|
|
11,254,757
|
|
|
|
5,618,046
|
|
Government bonds
|
|
|
7,831,260
|
|
|
|
8,457,362
|
|
|
|
508,705
|
|
Publicly traded stocks
|
|
|
2,849,231
|
|
|
|
3,196,658
|
|
|
|
1,255,493
|
|
Commercial paper
|
|
|
492,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
71,083,797
|
|
|
$
|
67,788,767
|
|
|
$
|
22,232,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 15 -
9.
|
HELD-TO-MATURITY
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
22,241,885
|
|
|
$
|
23,849,701
|
|
|
$
|
16,860,145
|
|
Commercial paper
|
|
|
10,323,947
|
|
|
|
8,628,176
|
|
|
|
399,338
|
|
Negotiable certificate of deposit
|
|
|
4,555,500
|
|
|
|
4,829,850
|
|
|
|
4,827,000
|
|
Structured product
|
|
|
1,518,500
|
|
|
|
1,609,950
|
|
|
|
3,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,639,832
|
|
|
$
|
38,917,677
|
|
|
$
|
25,086,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
18,140,374
|
|
|
$
|
16,610,116
|
|
|
$
|
7,561,182
|
|
Noncurrent portion
|
|
|
20,499,458
|
|
|
|
22,307,561
|
|
|
|
17,525,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
38,639,832
|
|
|
$
|
38,917,677
|
|
|
$
|
25,086,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.
|
HEDGING DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
|
|
|
$
|
5,550
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
3,908
|
|
|
$
|
|
|
|
$
|
458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company entered into interest rate futures contracts, which are used to hedge against price risk
caused by changes in interest rates in the Companys investments in fixed income securities.
The outstanding interest rate futures
contracts consisted of the following:
|
|
|
|
|
Maturity Period
|
|
Contract Amount
(US$ in Thousands)
|
|
|
|
|
|
March
31, 2017
|
|
|
|
|
|
|
June 2017
|
|
US$
|
52,400
|
|
|
|
December
31, 2016
|
|
|
|
|
|
|
March 2017
|
|
US$
|
53,600
|
|
|
|
March
31, 2016
|
|
|
|
|
|
|
June 2016
|
|
US$
|
8,000
|
|
- 16 -
11.
|
NOTES AND ACCOUNTS RECEIVABLE, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Notes and accounts receivable
|
|
$
|
109,010,938
|
|
|
$
|
128,815,389
|
|
|
$
|
96,761,458
|
|
Allowance for doubtful receivables
|
|
|
(478,109
|
)
|
|
|
(480,118
|
)
|
|
|
(488,188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and accounts receivable, net
|
|
$
|
108,532,829
|
|
|
$
|
128,335,271
|
|
|
$
|
96,273,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from
the end of the month of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition
of customers.
Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the
reporting period is summarized in the following table. Notes and accounts receivable include amounts that are past due but for which the Company has not recognized a specific allowance for doubtful receivables after the assessment since there has
not been a significant change in the credit quality of its customers and the amounts are still considered recoverable. In addition, the Company has obtained guarantee to certain receivables.
Aging analysis of notes and accounts receivable, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Neither past due nor impaired
|
|
$
|
94,790,800
|
|
|
$
|
108,411,408
|
|
|
$
|
83,871,066
|
|
Past due but not impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due within 30 days
|
|
|
9,682,935
|
|
|
|
15,017,824
|
|
|
|
10,181,534
|
|
Past due
31-60
days
|
|
|
550,853
|
|
|
|
1,844,726
|
|
|
|
1,815,102
|
|
Past due
61-120
days
|
|
|
3,508,241
|
|
|
|
3,061,313
|
|
|
|
405,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
108,532,829
|
|
|
$
|
128,335,271
|
|
|
$
|
96,273,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movements of the allowance for doubtful receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
Assessed for
Impairment
|
|
|
Collectively
Assessed for
Impairment
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
1,848
|
|
|
$
|
478,270
|
|
|
$
|
480,118
|
|
Reversal/Write-off
|
|
|
(1,848
|
)
|
|
|
|
|
|
|
(1,848
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(161
|
)
|
|
|
(161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2017
|
|
$
|
|
|
|
$
|
478,109
|
|
|
$
|
478,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
10,241
|
|
|
$
|
478,010
|
|
|
$
|
488,251
|
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(63
|
)
|
|
|
(63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2016
|
|
$
|
10,241
|
|
|
$
|
477,947
|
|
|
$
|
488,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 17 -
Aging analysis of accounts receivable that is individually determined as impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Past due over 121 days
|
|
$
|
|
|
|
$
|
1,848
|
|
|
$
|
10,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Finished goods
|
|
$
|
8,024,042
|
|
|
$
|
8,521,873
|
|
|
$
|
5,812,241
|
|
Work in process
|
|
|
34,535,606
|
|
|
|
33,330,870
|
|
|
|
46,429,187
|
|
Raw materials
|
|
|
5,239,223
|
|
|
|
4,012,190
|
|
|
|
2,716,815
|
|
Supplies and spare parts
|
|
|
2,590,151
|
|
|
|
2,817,300
|
|
|
|
2,284,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
50,389,022
|
|
|
$
|
48,682,233
|
|
|
$
|
57,242,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of the reserve for inventory write-downs resulting from the increase in net realizable value in
the amount of NT$942,343 thousand and NT$544,672 thousand (excluding earthquake losses), respectively, were included in the cost of revenue for the three months ended March 31, 2017 and 2016. Please refer to related earthquake losses
in Note 33.
13.
|
FINANCIAL ASSETS CARRIED AT COST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Non-publicly
traded stocks
|
|
$
|
2,791,642
|
|
|
$
|
2,944,859
|
|
|
$
|
3,204,088
|
|
Mutual funds
|
|
|
1,287,650
|
|
|
|
1,157,608
|
|
|
|
889,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,079,292
|
|
|
$
|
4,102,467
|
|
|
$
|
4,093,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since there is a wide range of estimated fair values of the Companys investments in
non-publicly
traded stocks, the Company concludes that the fair value cannot be reliably measured and therefore should be measured at the cost less any impairment.
The stock of Impinj, Inc. was listed in July 2016. Accordingly, the Company reclassified the aforementioned investments from financial assets
carried at cost to
available-for-sale
financial assets.
14.
|
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
Associates consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Place of
|
|
Carrying Amount
|
|
|
% of Ownership and Voting Rights
Held by the Company
|
Name of Associate
|
|
Principal
Activities
|
|
Incorporation
and Operation
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vanguard International Semiconductor Corporation (VIS)
|
|
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and
other semiconductor devices and the manufacturing and design service of masks
|
|
Hsinchu, Taiwan
|
|
$
|
9,072,232
|
|
|
$
|
8,806,384
|
|
|
$
|
8,846,336
|
|
|
28%
|
|
28%
|
|
28%
|
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
|
|
Manufacturing and selling of integrated circuits and other semiconductor devices
|
|
Singapore
|
|
|
7,153,964
|
|
|
|
7,163,516
|
|
|
|
9,649,635
|
|
|
39%
|
|
39%
|
|
39%
|
(Continued)
- 18 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Place of
|
|
Carrying Amount
|
|
|
% of Ownership and Voting Rights
Held by the Company
|
|
Name of Associate
|
|
Principal
Activities
|
|
Incorporation
and Operation
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xintec Inc. (Xintec)
|
|
Wafer level chip size packaging and wafer level post passivation interconnection service
|
|
Taoyuan, Taiwan
|
|
$
|
2,488,903
|
|
|
$
|
2,599,807
|
|
|
$
|
2,896,364
|
|
|
|
41%
|
|
|
|
41%
|
|
|
|
41%
|
|
Global Unichip Corporation (GUC)
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
Hsinchu, Taiwan
|
|
|
1,224,963
|
|
|
|
1,174,181
|
|
|
|
1,174,917
|
|
|
|
35%
|
|
|
|
35%
|
|
|
|
35%
|
|
Motech Industries, Inc. (Motech)
|
|
Manufacturing and selling of solar cells, crystalline silicon solar wafer, solar module, solar
inverter and design and construction of solar power systems
|
|
New Taipei, Taiwan
|
|
|
|
|
|
|
|
|
|
|
2,148,431
|
|
|
|
|
|
|
|
|
|
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,940,062
|
|
|
$
|
19,743,888
|
|
|
$
|
24,715,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
Starting June 2016, the Company has no longer served as Motechs board of director. As a result, the Company exercises no significant
influence over Motech. Therefore, Motech is no longer accounted for using the equity method. Further, such investment was reclassified to
available-for-sale
financial
assets and the Company recognized a disposal loss of NT$259,960 thousand.
The market prices of the investments accounted for using
the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Associate
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
VIS
|
|
$
|
26,832,118
|
|
|
$
|
26,089,360
|
|
|
$
|
23,350,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xintec
|
|
$
|
5,007,687
|
|
|
$
|
3,622,227
|
|
|
$
|
3,204,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUC
|
|
$
|
4,738,818
|
|
|
$
|
3,664,997
|
|
|
$
|
3,926,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motech
|
|
|
|
|
|
|
|
|
|
$
|
2,128,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 19 -
15.
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and Land
Improvements
|
|
|
Buildings
|
|
|
Machinery and
Equipment
|
|
|
Office
Equipment
|
|
|
Assets under
Finance Leases
|
|
|
Equipment under
Installation and
Construction in
Progress
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
4,049,292
|
|
|
$
|
304,404,474
|
|
|
$
|
2,042,867,744
|
|
|
$
|
34,729,640
|
|
|
$
|
|
|
|
$
|
387,199,675
|
|
|
$
|
2,773,250,825
|
|
Additions (Deductions)
|
|
|
|
|
|
|
22,844,918
|
|
|
|
107,830,782
|
|
|
|
2,280,174
|
|
|
|
|
|
|
|
(33,261,906
|
)
|
|
|
99,693,968
|
|
Disposals or retirements
|
|
|
|
|
|
|
(18,994
|
)
|
|
|
(1,466,833
|
)
|
|
|
(4,993
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,490,820
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
8,791
|
|
|
|
1,507
|
|
|
|
|
|
|
|
|
|
|
|
10,298
|
|
Effect of exchange rate changes
|
|
|
(47,560
|
)
|
|
|
(1,124,646
|
)
|
|
|
(4,261,654
|
)
|
|
|
(129,570
|
)
|
|
|
|
|
|
|
(176,397
|
)
|
|
|
(5,739,827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2017
|
|
$
|
4,001,732
|
|
|
$
|
326,105,752
|
|
|
$
|
2,144,978,830
|
|
|
$
|
36,876,758
|
|
|
$
|
|
|
|
$
|
353,761,372
|
|
|
$
|
2,865,724,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
524,845
|
|
|
$
|
174,349,077
|
|
|
$
|
1,577,377,509
|
|
|
$
|
23,221,707
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,775,473,138
|
|
Additions
|
|
|
7,106
|
|
|
|
4,600,837
|
|
|
|
53,350,352
|
|
|
|
1,175,066
|
|
|
|
|
|
|
|
|
|
|
|
59,133,361
|
|
Disposals or retirements
|
|
|
|
|
|
|
(18,994
|
)
|
|
|
(1,336,213
|
)
|
|
|
(4,974
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,360,181
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
8,195
|
|
|
|
1,466
|
|
|
|
|
|
|
|
|
|
|
|
9,661
|
|
Effect of exchange rate changes
|
|
|
(29,992
|
)
|
|
|
(910,592
|
)
|
|
|
(3,861,614
|
)
|
|
|
(93,480
|
)
|
|
|
|
|
|
|
|
|
|
|
(4,895,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2017
|
|
$
|
501,959
|
|
|
$
|
178,020,328
|
|
|
$
|
1,625,538,229
|
|
|
$
|
24,299,785
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,828,360,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2017
|
|
$
|
3,524,447
|
|
|
$
|
130,055,397
|
|
|
$
|
465,490,235
|
|
|
$
|
11,507,933
|
|
|
$
|
|
|
|
$
|
387,199,675
|
|
|
$
|
997,777,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at March 31, 2017
|
|
$
|
3,499,773
|
|
|
$
|
148,085,424
|
|
|
$
|
519,440,601
|
|
|
$
|
12,576,973
|
|
|
$
|
|
|
|
$
|
353,761,372
|
|
|
$
|
1,037,364,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
4,067,391
|
|
|
$
|
296,801,864
|
|
|
$
|
1,893,489,604
|
|
|
$
|
30,700,049
|
|
|
$
|
7,113
|
|
|
$
|
192,111,548
|
|
|
$
|
2,417,177,569
|
|
Additions
|
|
|
|
|
|
|
2,448,970
|
|
|
|
16,972,797
|
|
|
|
883,459
|
|
|
|
|
|
|
|
25,824,137
|
|
|
|
46,129,363
|
|
Disposals or retirements
|
|
|
|
|
|
|
|
|
|
|
(998,529
|
)
|
|
|
(61,741
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,060,270
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
(18,593
|
)
|
|
|
(442,618
|
)
|
|
|
(1,584,024
|
)
|
|
|
(39,858
|
)
|
|
|
|
|
|
|
(5,747
|
)
|
|
|
(2,090,840
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2016
|
|
$
|
4,048,798
|
|
|
$
|
298,808,216
|
|
|
$
|
1,907,879,848
|
|
|
$
|
31,489,022
|
|
|
$
|
|
|
|
$
|
217,929,938
|
|
|
$
|
2,460,155,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
506,185
|
|
|
$
|
157,910,155
|
|
|
$
|
1,385,857,655
|
|
|
$
|
19,426,069
|
|
|
$
|
7,113
|
|
|
$
|
|
|
|
$
|
1,563,707,177
|
|
Additions
|
|
|
7,557
|
|
|
|
4,382,978
|
|
|
|
49,527,167
|
|
|
|
1,033,027
|
|
|
|
|
|
|
|
|
|
|
|
54,950,729
|
|
Disposals or retirements
|
|
|
|
|
|
|
|
|
|
|
(983,846
|
)
|
|
|
(61,680
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,045,526
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
(11,222
|
)
|
|
|
(341,013
|
)
|
|
|
(1,380,339
|
)
|
|
|
(29,434
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,762,008
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2016
|
|
$
|
502,520
|
|
|
$
|
161,952,120
|
|
|
$
|
1,433,020,637
|
|
|
$
|
20,375,095
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,615,850,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at March 31, 2016
|
|
$
|
3,546,278
|
|
|
$
|
136,856,096
|
|
|
$
|
474,859,211
|
|
|
$
|
11,113,927
|
|
|
$
|
|
|
|
$
|
217,929,938
|
|
|
$
|
844,305,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The significant part of the Companys buildings includes main plants, mechanical and electrical
power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
- 20 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
Technology
License
Fees
|
|
|
Software and
System Design
Costs
|
|
|
Patent and
Others
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
6,007,975
|
|
|
$
|
9,546,007
|
|
|
$
|
22,243,595
|
|
|
$
|
5,386,435
|
|
|
$
|
43,184,012
|
|
Additions
|
|
|
|
|
|
|
233,977
|
|
|
|
528,188
|
|
|
|
195,537
|
|
|
|
957,702
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(75,237
|
)
|
|
|
|
|
|
|
(75,237
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
7,662
|
|
|
|
(17,960
|
)
|
|
|
(10,298
|
)
|
Effect of exchange rate changes
|
|
|
(249,171
|
)
|
|
|
(2,607
|
)
|
|
|
(6,197
|
)
|
|
|
(6,275
|
)
|
|
|
(264,250
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2017
|
|
$
|
5,758,804
|
|
|
$
|
9,777,377
|
|
|
$
|
22,698,011
|
|
|
$
|
5,557,737
|
|
|
$
|
43,791,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
|
|
|
$
|
6,147,200
|
|
|
$
|
18,144,428
|
|
|
$
|
4,277,538
|
|
|
$
|
28,569,166
|
|
Additions
|
|
|
|
|
|
|
385,022
|
|
|
|
525,031
|
|
|
|
128,771
|
|
|
|
1,038,824
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(75,237
|
)
|
|
|
|
|
|
|
(75,237
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
7,409
|
|
|
|
(17,070
|
)
|
|
|
(9,661
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(2,607
|
)
|
|
|
(5,125
|
)
|
|
|
(1,867
|
)
|
|
|
(9,599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2017
|
|
$
|
|
|
|
$
|
6,529,615
|
|
|
$
|
18,596,506
|
|
|
$
|
4,387,372
|
|
|
$
|
29,513,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2017
|
|
$
|
6,007,975
|
|
|
$
|
3,398,807
|
|
|
$
|
4,099,167
|
|
|
$
|
1,108,897
|
|
|
$
|
14,614,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at March 31, 2017
|
|
$
|
5,758,804
|
|
|
$
|
3,247,762
|
|
|
$
|
4,101,505
|
|
|
$
|
1,170,365
|
|
|
$
|
14,278,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
6,104,784
|
|
|
$
|
8,454,304
|
|
|
$
|
19,474,428
|
|
|
$
|
4,879,026
|
|
|
$
|
38,912,542
|
|
Additions
|
|
|
|
|
|
|
454,622
|
|
|
|
230,629
|
|
|
|
235,392
|
|
|
|
920,643
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(1,800
|
)
|
|
|
|
|
|
|
(1,800
|
)
|
Effect of exchange rate changes
|
|
|
(98,616
|
)
|
|
|
2,607
|
|
|
|
(2,667
|
)
|
|
|
(2,478
|
)
|
|
|
(101,154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2016
|
|
$
|
6,006,168
|
|
|
$
|
8,911,533
|
|
|
$
|
19,700,590
|
|
|
$
|
5,111,940
|
|
|
$
|
39,730,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
|
|
|
$
|
4,779,388
|
|
|
$
|
16,431,666
|
|
|
$
|
3,635,608
|
|
|
$
|
24,846,662
|
|
Additions
|
|
|
|
|
|
|
314,356
|
|
|
|
409,156
|
|
|
|
172,820
|
|
|
|
896,332
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(1,800
|
)
|
|
|
|
|
|
|
(1,800
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
2,607
|
|
|
|
(2,430
|
)
|
|
|
(653
|
)
|
|
|
(476
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2016
|
|
$
|
|
|
|
$
|
5,096,351
|
|
|
$
|
16,836,592
|
|
|
$
|
3,807,775
|
|
|
$
|
25,740,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at March 31, 2016
|
|
$
|
6,006,168
|
|
|
$
|
3,815,182
|
|
|
$
|
2,863,998
|
|
|
$
|
1,304,165
|
|
|
$
|
13,989,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Companys goodwill has been tested for impairment at the end of the annual reporting period and
the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 8.40% in
its test of impairment for December 31, 2016 to reflect the relevant specific risk in the cash-generating unit.
- 21 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Tax receivable
|
|
$
|
1,921,963
|
|
|
$
|
2,325,825
|
|
|
$
|
1,534,342
|
|
Prepaid expenses
|
|
|
1,037,963
|
|
|
|
1,007,026
|
|
|
|
1,151,672
|
|
Net Input VAT
|
|
|
465,526
|
|
|
|
333,140
|
|
|
|
|
|
Long-term receivable
|
|
|
|
|
|
|
|
|
|
|
365,000
|
|
Others
|
|
|
1,223,847
|
|
|
|
1,219,863
|
|
|
|
1,044,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,649,299
|
|
|
$
|
4,885,854
|
|
|
$
|
4,095,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
3,025,168
|
|
|
$
|
3,385,422
|
|
|
$
|
2,695,531
|
|
Noncurrent portion
|
|
|
1,624,131
|
|
|
|
1,500,432
|
|
|
|
1,399,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,649,299
|
|
|
$
|
4,885,854
|
|
|
$
|
4,095,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
$
|
54,666,000
|
|
|
$
|
57,958,200
|
|
|
$
|
34,690,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Original loan content
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ (in thousands)
|
|
$
|
1,800,000
|
|
|
$
|
1,800,000
|
|
|
$
|
1,078,000
|
|
Annual interest rate
|
|
|
1.08%-1.23%
|
|
|
|
0.87%-1.07%
|
|
|
|
0.62%-0.70%
|
|
Maturity date
|
|
|
Due by
April 2017
|
|
|
|
Due by
January 2017
|
|
|
|
Due in
April 2016
|
|
The Companys current provisions were provisions for sales returns and
allowances.
|
|
|
|
|
|
|
Sales Returns
and Allowances
|
|
|
|
|
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
18,037,789
|
|
Provision
|
|
|
8,556,743
|
|
Payment
|
|
|
(15,250,080
|
)
|
Effect of exchange rate changes
|
|
|
(46,132
|
)
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
11,298,320
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2016
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
10,163,536
|
|
Provision
|
|
|
6,999,654
|
|
Payment
|
|
|
(7,060,305
|
)
|
Effect of exchange rate changes
|
|
|
(12,722
|
)
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
10,090,163
|
|
|
|
|
|
|
- 22 -
Provisions for sales returns and allowances are estimated based on historical experience and the
consideration of varying contractual terms, and are recognized as a reduction of revenue in the same period of the related product sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Domestic unsecured bonds
|
|
$
|
144,200,000
|
|
|
$
|
154,200,000
|
|
|
$
|
166,200,000
|
|
Overseas unsecured bonds
|
|
|
34,925,500
|
|
|
|
37,028,850
|
|
|
|
48,270,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179,125,500
|
|
|
|
191,228,850
|
|
|
|
214,470,000
|
|
Less: Discounts on bonds payable
|
|
|
(26,731
|
)
|
|
|
(35,293
|
)
|
|
|
(56,041
|
)
|
Less: Current portion
|
|
|
(44,900,000
|
)
|
|
|
(38,100,000
|
)
|
|
|
(33,262,901
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
134,198,769
|
|
|
$
|
153,093,557
|
|
|
$
|
181,151,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The major terms of overseas unsecured bonds are as follows:
|
|
|
|
|
|
|
|
|
|
|
Issuance Period
|
|
Total Amount
(US$
in Thousands)
|
|
|
Coupon Rate
|
|
|
Repayment and Interest Payment
|
|
|
|
|
|
|
|
|
|
April 2013 to April 2016
|
|
$
|
350,000
|
|
|
|
0.95%
|
|
|
Bullet repayment; interest payable semi-annually
|
April 2013 to April 2018
|
|
|
1,150,000
|
|
|
|
1.625%
|
|
|
The same as above
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Capacity guarantee
|
|
$
|
18,222,000
|
|
|
$
|
20,929,350
|
|
|
$
|
25,744,000
|
|
Receivables guarantee
|
|
|
4,900,473
|
|
|
|
5,559,960
|
|
|
|
|
|
Others
|
|
|
173,876
|
|
|
|
181,312
|
|
|
|
185,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,296,349
|
|
|
$
|
26,670,622
|
|
|
$
|
25,929,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion (classified under accrued expenses and other current liabilities)
|
|
$
|
10,974,881
|
|
|
$
|
12,000,189
|
|
|
$
|
6,437,085
|
|
Noncurrent portion
|
|
|
12,321,468
|
|
|
|
14,670,433
|
|
|
|
19,492,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,296,349
|
|
|
$
|
26,670,622
|
|
|
$
|
25,929,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Authorized shares (in thousands)
|
|
|
28,050,000
|
|
|
|
28,050,000
|
|
|
|
28,050,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Authorized capital
|
|
$
|
280,500,000
|
|
|
$
|
280,500,000
|
|
|
$
|
280,500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued and paid shares (in thousands)
|
|
|
25,930,380
|
|
|
|
25,930,380
|
|
|
|
25,930,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital
|
|
$
|
259,303,805
|
|
|
$
|
259,303,805
|
|
|
$
|
259,303,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 23 -
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to
receive dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
As of March 31, 2017, 1,072,185 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs
was 5,360,926 thousand shares (one ADS represents five common shares).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in
capital
|
|
$
|
24,184,939
|
|
|
$
|
24,184,939
|
|
|
$
|
24,184,939
|
|
From merger
|
|
|
22,804,510
|
|
|
|
22,804,510
|
|
|
|
22,804,510
|
|
From convertible bonds
|
|
|
8,892,847
|
|
|
|
8,892,847
|
|
|
|
8,892,847
|
|
From share of changes in equities of subsidiaries
|
|
|
107,798
|
|
|
|
107,798
|
|
|
|
100,761
|
|
From share of changes in equities of associates
|
|
|
291,969
|
|
|
|
282,155
|
|
|
|
334,263
|
|
Donations
|
|
|
55
|
|
|
|
55
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,282,118
|
|
|
$
|
56,272,304
|
|
|
$
|
56,317,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under the relevant laws, the capital surplus generated from donations and the excess of the issuance
price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash
dividends or stock dividends up to a certain percentage of TSMCs
paid-in
capital. The capital surplus from share of changes in equities of subsidiaries and associates may be used to offset a deficit;
however, when generated from issuance of restricted shares for employees, such capital surplus may not be used for any purpose.
|
c.
|
Retained earnings and dividend policy
|
In accordance with the amendments to the R.O.C. Company
Act in May 2015, the recipients of dividends and bonuses are limited to shareholders and do not include employees. The amendments to TSMCs Articles of Incorporation on earnings distribution policy had been approved by TSMCs shareholders
in its meeting held on June 7, 2016. For policy about the profit sharing bonus to employees, please refer to Note 27.
TSMCs amended Articles of Incorporation provide that, when allocating the net profits for each fiscal year, TSMC shall first offset its
losses in previous years and then set aside the following items accordingly:
|
1)
|
Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve equals TSMCs
paid-in
capital;
|
|
2)
|
Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge;
|
|
3)
|
Any balance left over shall be allocated according to the resolution of the shareholders meeting.
|
TSMCs Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend.
However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend; provided that the ratio for stock dividend shall not exceed 50% of the total distribution.
Any appropriations of the profits are subject to shareholders approval in the following year.
The appropriation for legal capital reserve shall be made until the reserve equals the Companys
paid-in
capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the
paid-in
capital if
the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve
equivalent to the net debit balance of the other components of stockholders equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain/loss from
available-for-sale
financial assets, gain/loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders equity, any
special reserve appropriated may be reversed to the extent that the net debit balance reverses.
- 24 -
The appropriations of 2016 and 2015 earnings have been approved by TSMCs Board of Directors
in its meeting held on February 14, 2017 and by TSMCs shareholders in its meeting held on June 7, 2016, respectively. The appropriations and dividends per share were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriation
of Earnings
|
|
|
Dividends Per
Share (NT$)
|
|
|
For Fiscal
|
|
|
For Fiscal
|
|
|
For Fiscal
|
|
For Fiscal
|
|
|
Year 2016
|
|
|
Year 2015
|
|
|
Year 2016
|
|
Year 2015
|
|
|
|
|
|
|
|
|
|
|
|
Legal capital reserve
|
|
$
|
33,424,718
|
|
|
$
|
30,657,384
|
|
|
|
|
|
Cash dividends to shareholders
|
|
|
181,512,663
|
|
|
|
155,582,283
|
|
|
$7.0
|
|
$6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
214,937,381
|
|
|
$
|
186,239,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The appropriations of earnings for 2016 are to be presented for approval in the TSMCs
shareholders meeting to be held on June 8, 2017 (expected).
Under the Integrated Income Tax System that became effective on
January 1, 1998, the R.O.C. resident shareholders are allowed a tax credit for their proportionate share of the income tax paid by TSMC on earnings generated since January 1, 1998.
Changes in others were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2017
|
|
|
|
Foreign
Currency
Translation
Reserve
|
|
|
Unrealized
Gain/Loss from
Available-for-
sale Financial
Assets
|
|
|
Cash Flow
Hedges Reserve
|
|
|
Unearned
Stock-Based
Employee
Compensation
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
1,661,237
|
|
|
$
|
2,641
|
|
|
$
|
105
|
|
|
$
|
|
|
|
$
|
1,663,983
|
|
Exchange differences arising on translation of foreign operations
|
|
|
(21,242,411
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,242,411
|
)
|
Changes in fair value of
available-for-sale
financial assets
|
|
|
|
|
|
|
(106,236
|
)
|
|
|
|
|
|
|
|
|
|
|
(106,236
|
)
|
Cumulative (gain)/loss reclassified to profit or loss upon disposal of
available-for-sale
financial assets
|
|
|
|
|
|
|
9,796
|
|
|
|
|
|
|
|
|
|
|
|
9,796
|
|
Share of other comprehensive income (loss) of associates
|
|
|
(61,681
|
)
|
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
(61,657
|
)
|
Share of unearned stock-based employee compensation of associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,502
|
)
|
|
|
(19,502
|
)
|
Income tax effect
|
|
|
|
|
|
|
46,400
|
|
|
|
|
|
|
|
|
|
|
|
46,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(19,642,855
|
)
|
|
$
|
(47,375
|
)
|
|
$
|
105
|
|
|
$
|
(19,502
|
)
|
|
$
|
(19,709,627
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 25 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
|
Foreign
Currency
Translation
Reserve
|
|
|
Unrealized
Gain/Loss from
Available-for-
sale Financial
Assets
|
|
|
Cash Flow
Hedges Reserve
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
11,039,949
|
|
|
$
|
734,771
|
|
|
$
|
(607
|
)
|
|
$
|
11,774,113
|
|
Exchange differences arising on translation of foreign operations
|
|
|
(6,591,873
|
)
|
|
|
|
|
|
|
|
|
|
|
(6,591,873
|
)
|
Changes in fair value of
available-for-sale
financial assets
|
|
|
|
|
|
|
40,182
|
|
|
|
|
|
|
|
40,182
|
|
Cumulative (gain)/loss reclassified to profit or loss upon disposal of
available-for-sale
financial assets
|
|
|
|
|
|
|
10,829
|
|
|
|
|
|
|
|
10,829
|
|
Share of other comprehensive income of associates
|
|
|
4,579
|
|
|
|
21,487
|
|
|
|
91
|
|
|
|
26,157
|
|
Income tax effect
|
|
|
|
|
|
|
17,440
|
|
|
|
|
|
|
|
17,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
4,452,655
|
|
|
$
|
824,709
|
|
|
$
|
(516
|
)
|
|
$
|
5,276,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The aforementioned other equity includes the changes in other equities of TSMC and TSMCs share of
its subsidiaries and associates.
The exchange differences arising on translation of foreign operations net assets from its
functional currency to TSMCs presentation currency are recognized directly in other comprehensive income and also accumulated in the foreign currency translation reserve.
Unrealized gain/loss on
available-for-sale
financial assets
represents the cumulative gains or losses arising from the fair value measurement on
available-for-sale
financial assets that are recognized in other comprehensive
income, excluding the amounts recognized in profit or loss for the effective portion from changes in fair value of the hedging instruments. When those
available-for-sale
financial assets have been disposed of or are determined to be impaired subsequently, the related cumulative gains or losses in other comprehensive income are reclassified to profit or loss.
The cash flow hedges reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of the hedging
instruments entered into as cash flow hedges. The cumulative gains or losses arising on changes in fair value of the hedging instruments that are recognized and accumulated in cash flow hedges reserve will be reclassified to profit or loss only when
the hedge transaction affects profit or loss.
Unearned stock-based employee compensation is the fair value of the restricted shares for
employees based on the best estimates at the grant date of the number of shares that are expected to ultimately vest, which is debited to equity. Unearned stock-based employee compensation is reclassified to profit or loss over the vesting period.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
$
|
233,755,177
|
|
|
$
|
203,383,417
|
|
Net revenue from royalties
|
|
|
159,223
|
|
|
|
111,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
233,914,400
|
|
|
$
|
203,495,361
|
|
|
|
|
|
|
|
|
|
|
- 26 -
24.
|
OTHER GAINS AND LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Gain (loss) on disposal of financial assets, net
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
$
|
(8,982
|
)
|
|
$
|
(10,829
|
)
|
Financial assets carried at cost
|
|
|
|
|
|
|
14,381
|
|
Other gains
|
|
|
36,095
|
|
|
|
37,428
|
|
Net gain on financial instruments at FVTPL
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
373,140
|
|
|
|
1,532,135
|
|
Designated as at FVTPL
|
|
|
50,134
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
Loss from hedging instruments
|
|
|
(15,780
|
)
|
|
|
(11,870
|
)
|
Gain (loss) arising from changes in fair value of
available-for-sale
financial assets in hedge effective portion
|
|
|
(3,707
|
)
|
|
|
10,625
|
|
Impairment loss of financial assets
|
|
|
|
|
|
|
|
|
Financial assets carried at cost
|
|
|
(12,032
|
)
|
|
|
|
|
Other losses
|
|
|
(3,679
|
)
|
|
|
(12,571
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
415,189
|
|
|
$
|
1,559,299
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Income tax expense recognized in profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Current income tax expense
|
|
|
|
|
|
|
|
|
Current tax expense recognized in the current period
|
|
$
|
12,642,088
|
|
|
$
|
8,646,510
|
|
Other income tax adjustments
|
|
|
36,356
|
|
|
|
35,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,678,444
|
|
|
|
8,682,350
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax benefit
|
|
|
|
|
|
|
|
|
The origination and reversal of temporary differences
|
|
|
(1,039,536
|
)
|
|
|
(246,750
|
)
|
Investment tax credits and operating loss carryforward
|
|
|
(1,437,317
|
)
|
|
|
(972,298
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,476,853
|
)
|
|
|
(1,219,048
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense recognized in profit or loss
|
|
$
|
10,201,591
|
|
|
$
|
7,463,302
|
|
|
|
|
|
|
|
|
|
|
|
b.
|
Income tax expense recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Deferred income tax benefit
|
|
|
|
|
|
|
|
|
Related to unrealized gain/loss on
available-for-sale
financial assets
|
|
$
|
46,400
|
|
|
$
|
17,440
|
|
|
|
|
|
|
|
|
|
|
|
c.
|
Integrated income tax information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Balance of the Imputation
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Account - TSMC
|
|
$
|
82,200,040
|
|
|
$
|
82,072,562
|
|
|
$
|
59,973,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 27 -
The estimated and actual creditable ratio for distribution of TSMCs earnings of 2016 and
2015 were 13.96% and 12.57%, respectively; however, the creditable ratio for individual shareholders residing in the R.O.C. is half of the original creditable ratio according to the R.O.C. Income Tax Law.
The imputation credit allocated to shareholders is based on its balance as of the date of the dividend distribution. The estimated creditable
ratio may change when the actual distribution of the imputation credit is made.
All of TSMCs earnings generated prior to
December 31, 1997 have been appropriated.
|
d.
|
Income tax examination
|
The tax authorities have examined income tax returns of TSMC through
2014. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
3.38
|
|
|
$
|
2.50
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
3.38
|
|
|
$
|
2.50
|
|
|
|
|
|
|
|
|
|
|
EPS is computed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
(Numerator)
|
|
|
Number of
Shares
(Denominator)
(In Thousands)
|
|
|
EPS (NT$)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
87,628,898
|
|
|
|
25,930,380
|
|
|
$
|
3.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
$
|
64,781,493
|
|
|
|
25,930,380
|
|
|
$
|
2.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.
|
ADDITIONAL INFORMATION OF EXPENSES BY NATURE
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
a. Depreciation of property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
54,492,962
|
|
|
$
|
50,829,281
|
|
Recognized in operating expenses
|
|
|
4,634,177
|
|
|
|
4,115,030
|
|
Recognized in other operating income and expenses
|
|
|
6,222
|
|
|
|
6,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,133,361
|
|
|
$
|
54,950,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b. Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
527,908
|
|
|
$
|
489,677
|
|
Recognized in operating expenses
|
|
|
510,916
|
|
|
|
406,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,038,824
|
|
|
$
|
896,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c. Research and development costs expensed as incurred
|
|
$
|
19,412,393
|
|
|
$
|
15,618,963
|
|
|
|
|
|
|
|
|
|
|
- 28 -
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
d. Employee benefits expenses
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits
|
|
|
|
|
|
|
|
|
Defined contribution plans
|
|
$
|
575,760
|
|
|
$
|
526,473
|
|
Defined benefit plans
|
|
|
67,875
|
|
|
|
68,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
643,635
|
|
|
|
594,498
|
|
Other employee benefits
|
|
|
25,289,182
|
|
|
|
21,499,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,932,817
|
|
|
$
|
22,094,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee benefits expense summarized by function
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
15,228,900
|
|
|
$
|
13,105,421
|
|
Recognized in operating expenses
|
|
|
10,703,917
|
|
|
|
8,988,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,932,817
|
|
|
$
|
22,094,122
|
|
|
|
|
|
|
|
|
|
|
In accordance with the amendments to the R.O.C. Company Act in May 2015 and the amended TSMCs
Articles of Incorporation approved by TSMCs shareholders in its meeting held on June 7, 2016, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual
profits during the period, respectively.
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income
tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$5,877,094 thousand and NT$4,344,524 thousand for the three months ended March 31, 2017 and 2016, respectively; compensation
to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
The Board of Directors of TSMC held on February 14, 2017 approved the profit sharing bonus to employees and compensation to directors
in the amounts of NT$22,418,339 thousand and NT$376,432 thousand in cash for 2016, respectively. There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2016.
TSMCs profit sharing bonus to employees and compensation to directors in the amounts of NT$20,556,888 thousand and
NT$356,186 thousand in cash for 2015, respectively, had been approved by the Board of Directors on February 2, 2016. The profit sharing bonus to employees and compensation to directors in cash for 2015 had been reported to TSMCs
shareholders in its meeting held on June 7, 2016, after the amended TSMCs Articles of Incorporation had been approved. The aforementioned approved amount has no difference with the one recognized in the consolidated financial statements
for the year ended December 31, 2015.
The information about the appropriations of TSMCs profit sharing bonus to employees and
compensation to directors is available at the Market Observation Post System website.
- 29 -
28.
|
FINANCIAL INSTRUMENTS
|
|
a.
|
Categories of financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
23,432
|
|
|
$
|
153,382
|
|
|
$
|
618,810
|
|
Designated as at FVTPL
|
|
|
5,350,571
|
|
|
|
6,297,730
|
|
|
|
|
|
Available-for-sale
financial assets (Note)
|
|
|
75,163,089
|
|
|
|
71,891,234
|
|
|
|
26,326,473
|
|
Held-to-maturity
financial assets
|
|
|
38,639,832
|
|
|
|
38,917,677
|
|
|
|
25,086,483
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
|
|
|
|
5,550
|
|
|
|
|
|
Loans and receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
564,725,266
|
|
|
|
541,253,833
|
|
|
|
617,984,318
|
|
Notes and accounts receivable (including related parties)
|
|
|
109,027,668
|
|
|
|
129,304,830
|
|
|
|
96,957,088
|
|
Other receivables
|
|
|
3,896,535
|
|
|
|
2,626,401
|
|
|
|
3,741,675
|
|
Refundable deposits
|
|
|
572,005
|
|
|
|
407,874
|
|
|
|
443,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
797,398,398
|
|
|
$
|
790,858,511
|
|
|
$
|
771,158,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
80,795
|
|
|
$
|
91,585
|
|
|
$
|
16
|
|
Designated as at FVTPL
|
|
|
44,140
|
|
|
|
99,550
|
|
|
|
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
3,908
|
|
|
|
|
|
|
|
458
|
|
Amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
54,666,000
|
|
|
|
57,958,200
|
|
|
|
34,690,040
|
|
Accounts payable (including related parties)
|
|
|
24,252,762
|
|
|
|
27,324,525
|
|
|
|
19,629,025
|
|
Payables to contractors and equipment suppliers
|
|
|
57,671,953
|
|
|
|
63,154,514
|
|
|
|
33,953,061
|
|
Accrued expenses and other current liabilities
|
|
|
19,353,790
|
|
|
|
20,713,259
|
|
|
|
19,366,919
|
|
Bonds payable (including long-term liabilities-current portion)
|
|
|
179,098,769
|
|
|
|
191,193,557
|
|
|
|
214,413,959
|
|
Long-term bank loans (including long-term liabilities-current portion)
|
|
|
29,040
|
|
|
|
31,460
|
|
|
|
40,000
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
23,296,349
|
|
|
|
26,670,622
|
|
|
|
25,929,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
358,497,506
|
|
|
$
|
387,237,272
|
|
|
$
|
348,022,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
Including financial assets carried at cost.
|
- 30 -
|
b.
|
Financial risk management objectives
|
The Company seeks to ensure sufficient cost-efficient
funding readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market
uncertainties may have on its financial performance.
The plans for material treasury activities are reviewed by Audit Committees and/or
Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, Corporate Treasury function must comply with certain treasury procedures that provide guiding principles
for overall financial risk management and segregation of duties.
The Company is exposed to the financial market risks, primarily changes in foreign
currency exchange rates, interest rates and equity investment prices.
Foreign currency risk
Most of the Companys operating activities are denominated in foreign currencies. Consequently, the Company is exposed to foreign currency
risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Company utilizes derivative financial instruments, such as currency forward contracts and cross currency swaps, and
non-derivative
financial instruments, such as foreign currency-denominated debt, to partially hedge its currency exposure.
The Companys sensitivity analysis of foreign currency risk mainly focuses on the foreign currency monetary items at the end of the
reporting period. Assuming an unfavorable 10% movement in the levels of foreign exchanges relative to the New Taiwan dollar, the net income for the three months ended March 31, 2017 and 2016 would have decreased by NT$878,838 thousand and
NT$300,909 thousand, respectively, after taking into consideration of the hedging contracts and the hedged items.
Interest rate
risk
The Company is exposed to interest rate risk primarily related to its outstanding debt and investments in fixed income
securities. All of the Companys bonds payable have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. On the other hand, because interest rates of the
Companys long-term bank loans are floating, changes in interest rates would affect the future cash flows but not the fair value.
Assuming the amount of the long-term bank loans at the end of the reporting period had been outstanding for the entire period and all other
variables were held constant, a hypothetical 100 basis point (1.00%) increase in interest rates would have resulted in an increase in the interest expense, net of tax, by approximately NT$60 thousand and NT$83 thousand for the three months
ended March 31, 2017 and 2016, respectively.
The Company classified its investments in fixed income securities as
held-to-maturity
and
available-for-sale
financial assets. Because
held-to-maturity
fixed income securities are measured at amortized cost, changes in interest rates would not affect the fair value. On the other hand,
available-for-sale
fixed income securities are exposed to fair value fluctuations caused by changes in interest rates. The Company utilized interest rate futures to partially
hedge the interest rate risk on its
available-for-sale
fixed income investments. These hedges may offset only a portion of, but do not eliminate, the financial impact
from movements in interest rates.
- 31 -
Based on a sensitivity analysis performed for the three months ended March 31, 2017 and
2016, a hypothetical 100 basis points (1.00%) increase in interest rates across all maturities would have resulted in a decrease in other comprehensive income by NT$1,778,761 thousand and NT$455,802 thousand, respectively.
Other price risk
The
Company is exposed to equity price risk arising from
available-for-sale
equity investments.
Assuming a hypothetical decrease of 5% in prices of the equity investments at the end of the reporting period for the three months ended
March 31, 2017 and 2016, the other comprehensive income would have decreased by NT$327,239 thousand and NT$260,202 thousand, respectively.
|
d.
|
Credit risk management
|
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from operating activities, primarily trade receivables, and from investing activities, primarily deposits, fixed-income investments and other
financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Companys maximum credit risk exposure is mainly from the carrying amount of
financial assets.
Business related credit risk
The Company has considerable trade receivables outstanding with its customers worldwide. A substantial majority of the Companys
outstanding trade receivables are not covered by collateral or credit insurance. While the Company has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively limit its
credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen.
As of March 31, 2017,
December 31, 2016 and March 31, 2016, the Companys ten largest customers accounted for 73%, 74% and 71% of accounts receivable, respectively. The Company believes the concentration of credit risk is not material for the remaining
accounts receivable.
Financial credit risk
The Company regularly monitors and reviews the concentration limit applied to counterparties and adjusts the concentration limit according to
market conditions and the credit standing of the counterparties. The Company mitigates its exposure by limiting the exposure to any individual counterparty and by selecting counterparties with investment-grade credit ratings.
|
e.
|
Liquidity risk management
|
The objective of liquidity risk management is to ensure the Company
has sufficient liquidity to fund its business requirements associated with existing operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalent, short-term
available-for-sale
financial assets and short-term
held-to-maturity
financial assets.
- 32 -
The table below summarizes the maturity profile of the Companys financial liabilities based
on contractual undiscounted payments, including principal and interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
2-3
Years
|
|
|
4-5
Years
|
|
|
5+ Years
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
54,687,875
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
54,687,875
|
|
Accounts payable (including related parties)
|
|
|
24,252,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,252,762
|
|
Payables to contractors and equipment suppliers
|
|
|
57,671,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,671,953
|
|
Accrued expenses and other current liabilities
|
|
|
19,353,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,353,790
|
|
Bonds payable
|
|
|
47,013,779
|
|
|
|
101,618,771
|
|
|
|
13,673,294
|
|
|
|
22,881,721
|
|
|
|
185,187,565
|
|
Long-term bank loans
|
|
|
10,463
|
|
|
|
19,954
|
|
|
|
|
|
|
|
|
|
|
|
30,417
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
10,974,881
|
|
|
|
12,235,825
|
|
|
|
85,643
|
|
|
|
|
|
|
|
23,296,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
213,965,503
|
|
|
|
113,874,550
|
|
|
|
13,758,937
|
|
|
|
22,881,721
|
|
|
|
364,480,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
36,386,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,386,668
|
|
Inflows
|
|
|
(36,341,820
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,341,820
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
214,010,351
|
|
|
$
|
113,874,550
|
|
|
$
|
13,758,937
|
|
|
$
|
22,881,721
|
|
|
$
|
364,525,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
57,974,562
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
57,974,562
|
|
Accounts payable (including related parties)
|
|
|
27,324,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,324,525
|
|
Payables to contractors and equipment suppliers
|
|
|
63,154,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,154,514
|
|
Accrued expenses and other current liabilities
|
|
|
20,713,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,713,259
|
|
Bonds payable
|
|
|
40,669,468
|
|
|
|
99,161,486
|
|
|
|
35,340,742
|
|
|
|
22,979,426
|
|
|
|
198,151,122
|
|
Long-term bank loans
|
|
|
10,543
|
|
|
|
20,116
|
|
|
|
2,423
|
|
|
|
|
|
|
|
33,082
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
12,000,189
|
|
|
|
13,060,483
|
|
|
|
1,609,950
|
|
|
|
|
|
|
|
26,670,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
221,847,060
|
|
|
|
112,242,085
|
|
|
|
36,953,115
|
|
|
|
22,979,426
|
|
|
|
394,021,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
40,571,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,571,841
|
|
Inflows
|
|
|
(40,586,344
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(40,586,344
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,503
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,503
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
5,478,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,478,066
|
|
Inflows
|
|
|
(5,487,600
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,487,600
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
221,823,023
|
|
|
$
|
112,242,085
|
|
|
$
|
36,953,115
|
|
|
$
|
22,979,426
|
|
|
$
|
393,997,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 33 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
2-3
Years
|
|
|
4-5
Years
|
|
|
5+ Years
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
34,704,042
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
34,704,042
|
|
Accounts payable (including related parties)
|
|
|
19,629,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,629,025
|
|
Payables to contractors and equipment suppliers
|
|
|
33,953,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,953,061
|
|
Accrued expenses and other current liabilities
|
|
|
19,366,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,366,919
|
|
Bonds payable
|
|
|
36,133,767
|
|
|
|
101,672,799
|
|
|
|
62,362,560
|
|
|
|
23,272,541
|
|
|
|
223,441,667
|
|
Long-term bank loans
|
|
|
11,191
|
|
|
|
21,336
|
|
|
|
10,145
|
|
|
|
|
|
|
|
42,672
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
6,437,085
|
|
|
|
13,056,280
|
|
|
|
6,436,000
|
|
|
|
|
|
|
|
25,929,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150,235,090
|
|
|
|
114,750,415
|
|
|
|
68,808,705
|
|
|
|
23,272,541
|
|
|
|
357,066,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
34,065,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,065,842
|
|
Inflows
|
|
|
(34,689,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34,689,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(623,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(623,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
149,611,121
|
|
|
$
|
114,750,415
|
|
|
$
|
68,808,705
|
|
|
$
|
23,272,541
|
|
|
$
|
356,442,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
f.
|
Fair value of financial instruments
|
|
1)
|
Fair value measurements recognized in the consolidated balance sheets
|
Fair value measurements
are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
|
|
|
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
|
|
|
|
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices); and
|
|
|
|
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
|
2)
|
Fair value of financial instruments that are measured at fair value on a recurring basis
|
Fair value hierarchy
The following table presents the Companys financial assets and liabilities measured at fair value on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
23,432
|
|
|
$
|
|
|
|
$
|
23,432
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
|
|
|
|
5,344,256
|
|
|
|
|
|
|
|
5,344,256
|
|
Forward exchange contracts
|
|
|
|
|
|
|
6,315
|
|
|
|
|
|
|
|
6,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
5,374,003
|
|
|
$
|
|
|
|
$
|
5,374,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 34 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
31,423,219
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
31,423,219
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
17,234,724
|
|
|
|
|
|
|
|
|
|
|
|
17,234,724
|
|
Asset-backed securities
|
|
|
|
|
|
|
11,252,756
|
|
|
|
|
|
|
|
11,252,756
|
|
Government bonds
|
|
|
7,831,260
|
|
|
|
|
|
|
|
|
|
|
|
7,831,260
|
|
Publicly traded stocks
|
|
|
2,849,231
|
|
|
|
|
|
|
|
|
|
|
|
2,849,231
|
|
Commercial paper
|
|
|
|
|
|
|
492,607
|
|
|
|
|
|
|
|
492,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
59,338,434
|
|
|
$
|
11,745,363
|
|
|
$
|
|
|
|
$
|
71,083,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
80,795
|
|
|
$
|
|
|
|
$
|
80,795
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
44,140
|
|
|
|
|
|
|
|
44,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
124,935
|
|
|
$
|
|
|
|
$
|
124,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
3,908
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
3,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
142,406
|
|
|
$
|
|
|
|
$
|
142,406
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
10,976
|
|
|
|
|
|
|
|
10,976
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
|
|
|
|
6,297,708
|
|
|
|
|
|
|
|
6,297,708
|
|
Forward exchange contracts
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
6,451,112
|
|
|
$
|
|
|
|
$
|
6,451,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
29,999,508
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
29,999,508
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
14,880,482
|
|
|
|
|
|
|
|
|
|
|
|
14,880,482
|
|
Asset-backed securities
|
|
|
|
|
|
|
11,254,757
|
|
|
|
|
|
|
|
11,254,757
|
|
Government bonds
|
|
|
8,457,362
|
|
|
|
|
|
|
|
|
|
|
|
8,457,362
|
|
Publicly traded stocks
|
|
|
3,196,658
|
|
|
|
|
|
|
|
|
|
|
|
3,196,658
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,534,010
|
|
|
$
|
11,254,757
|
|
|
$
|
|
|
|
$
|
67,788,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
5,550
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
5,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
91,585
|
|
|
$
|
|
|
|
$
|
91,585
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
99,550
|
|
|
|
|
|
|
|
99,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
191,135
|
|
|
$
|
|
|
|
$
|
191,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 35 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
618,810
|
|
|
$
|
|
|
|
$
|
618,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
9,343,220
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
9,343,220
|
|
Asset-backed securities
|
|
|
|
|
|
|
5,618,046
|
|
|
|
|
|
|
|
5,618,046
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
5,507,441
|
|
|
|
|
|
|
|
|
|
|
|
5,507,441
|
|
Publicly traded stocks
|
|
|
1,255,493
|
|
|
|
|
|
|
|
|
|
|
|
1,255,493
|
|
Government bonds
|
|
|
508,705
|
|
|
|
|
|
|
|
|
|
|
|
508,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,614,859
|
|
|
$
|
5,618,046
|
|
|
$
|
|
|
|
$
|
22,232,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
16
|
|
|
$
|
|
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
458
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no transfers between Level 1 and Level 2 for the three months ended March 31,
2017 and 2016, respectively.
There were no purchases and disposals for assets classified as Level 3 for the three months ended
March 31, 2017 and 2016, respectively.
Valuation techniques and assumptions used in fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
|
|
|
The fair values of interest rate futures contracts, publicly traded stocks, government bonds, agency bonds, agency mortgage-backed securities and corporate bonds are determined by quoted market prices in active markets.
|
|
|
|
Forward exchange contracts and cross currency swap contracts are measured using forward exchange rates and the discounted curves that are derived from quoted market prices. For investments in asset-backed securities,
the fair values are determined by quoted market prices. For investments in commercial paper and time deposit designated as FVTPL, the fair values are determined by the present value of future cash flows based on the discounted curves that are
derived from the quoted market prices.
|
- 36 -
|
3)
|
Fair value of financial instruments that are not measured at fair value
|
Except as detailed in
the following table, the Company considers that the carrying amounts of financial instruments that are not measured at fair value recognized in the consolidated financial statements approximate their fair values.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
March 31, 2016
|
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
22,241,885
|
|
|
$
|
22,431,579
|
|
|
$
|
23,849,701
|
|
|
$
|
23,996,429
|
|
|
$
|
16,860,145
|
|
|
$
|
16,885,477
|
|
Commercial paper
|
|
|
10,323,947
|
|
|
|
10,343,339
|
|
|
|
8,628,176
|
|
|
|
8,630,769
|
|
|
|
399,338
|
|
|
|
398,928
|
|
Negotiable certificate of deposit
|
|
|
4,555,500
|
|
|
|
4,568,438
|
|
|
|
4,829,850
|
|
|
|
4,847,785
|
|
|
|
4,827,000
|
|
|
|
4,854,916
|
|
Structured product
|
|
|
1,518,500
|
|
|
|
1,513,549
|
|
|
|
1,609,950
|
|
|
|
1,609,738
|
|
|
|
3,000,000
|
|
|
|
2,996,985
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
|
179,098,769
|
|
|
|
180,786,416
|
|
|
|
191,193,557
|
|
|
|
192,845,296
|
|
|
|
214,413,959
|
|
|
|
216,343,027
|
|
Fair value hierarchy
The table below sets out the fair value hierarchy for the Companys assets and liabilities which are not required to measure at fair
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
22,431,579
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
22,431,579
|
|
Commercial paper
|
|
|
|
|
|
|
10,343,339
|
|
|
|
|
|
|
|
10,343,339
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
4,568,438
|
|
|
|
|
|
|
|
4,568,438
|
|
Structured product
|
|
|
|
|
|
|
1,513,549
|
|
|
|
|
|
|
|
1,513,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,431,579
|
|
|
$
|
16,425,326
|
|
|
$
|
|
|
|
$
|
38,856,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
180,786,416
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
180,786,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
23,996,429
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
23,996,429
|
|
Commercial paper
|
|
|
|
|
|
|
8,630,769
|
|
|
|
|
|
|
|
8,630,769
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
4,847,785
|
|
|
|
|
|
|
|
4,847,785
|
|
Structured product
|
|
|
|
|
|
|
1,609,738
|
|
|
|
|
|
|
|
1,609,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,996,429
|
|
|
$
|
15,088,292
|
|
|
$
|
|
|
|
$
|
39,084,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
192,845,296
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
192,845,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 37 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
16,885,477
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
16,885,477
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
4,854,916
|
|
|
|
|
|
|
|
4,854,916
|
|
Structured product
|
|
|
|
|
|
|
2,996,985
|
|
|
|
|
|
|
|
2,996,985
|
|
Commercial paper
|
|
|
|
|
|
|
398,928
|
|
|
|
|
|
|
|
398,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,885,477
|
|
|
$
|
8,250,829
|
|
|
$
|
|
|
|
$
|
25,136,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
216,343,027
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
216,343,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value measurement
For investments in bonds, the fair value is determined using active market prices.
For investments in negotiable certificate of deposit and structured product, the fair values are determined by quoted market prices. For
investment in commercial paper, the fair value is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.
The fair value of the Companys bonds payable is determined using active market prices.
29.
|
RELATED PARTY TRANSACTIONS
|
Intercompany balances and transactions between TSMC and its
subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties:
|
a.
|
Related party name and categories
|
|
|
|
Related Party Name
|
|
Related Party Categories
|
|
|
|
GUC
|
|
Associates
|
VIS
|
|
Associates
|
SSMC
|
|
Associates
|
Xintec
|
|
Associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
Associates
|
|
$
|
1,524,150
|
|
|
$
|
1,605,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from royalties
|
|
Associates
|
|
$
|
117,775
|
|
|
$
|
111,944
|
|
|
|
|
|
|
|
|
|
|
|
|
- 38 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
|
|
$
|
2,628,068
|
|
|
$
|
2,345,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d.
|
Receivables from related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Name
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
GUC
|
|
$
|
494,839
|
|
|
$
|
969,136
|
|
|
$
|
683,114
|
|
|
|
Others
|
|
|
|
|
|
|
423
|
|
|
|
704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
494,839
|
|
|
$
|
969,559
|
|
|
$
|
683,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
VIS
|
|
$
|
84,321
|
|
|
$
|
86,038
|
|
|
$
|
97,647
|
|
|
|
SSMC
|
|
|
50,474
|
|
|
|
60,641
|
|
|
|
40,521
|
|
|
|
Others
|
|
|
256
|
|
|
|
109
|
|
|
|
2,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
135,051
|
|
|
$
|
146,788
|
|
|
$
|
141,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e.
|
Payables to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Name
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
VIS
|
|
$
|
604,897
|
|
|
$
|
587,407
|
|
|
$
|
531,477
|
|
|
|
SSMC
|
|
|
383,246
|
|
|
|
506,121
|
|
|
|
258,813
|
|
|
|
Xintec
|
|
|
171,524
|
|
|
|
124,541
|
|
|
|
289,995
|
|
|
|
Others
|
|
|
11,528
|
|
|
|
44,105
|
|
|
|
34,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,171,195
|
|
|
$
|
1,262,174
|
|
|
$
|
1,115,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f.
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advance receipts
|
|
Associates
|
|
$
|
384,778
|
|
|
$
|
210,791
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 39 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing expenses
|
|
Associates
|
|
$
|
256,657
|
|
|
$
|
386,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
Associates
|
|
$
|
14,489
|
|
|
$
|
41,092
|
|
|
|
|
|
|
|
|
|
|
|
|
The sales prices and payment terms to related parties were not significantly different from those of
sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The
Company leased factory and office from Xintec and VIS. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to Xintec and VIS monthly; the related expenses were both classified under
manufacturing expenses.
The Company deferred the disposal gain/loss derived from sales of property, plant and equipment to related parties
(transactions with associates), and then recognized such gain/loss over the depreciable lives of the disposed assets.
|
h.
|
Compensation of key management personnel
|
The compensation to directors and other key
management personnel for the three months ended March 31, 2017 and 2016 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term employee benefits
|
|
|
|
$
|
527,053
|
|
|
$
|
374,776
|
|
Post-employment benefits
|
|
|
|
|
1,146
|
|
|
|
1,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
528,199
|
|
|
$
|
375,814
|
|
|
|
|
|
|
|
|
|
|
|
|
The compensation to directors and other key management personnel were determined by the Compensation
Committee of TSMC in accordance with the individual performance and the market trends.
The Company provided certificate of deposits recorded in other financial
assets as collateral mainly for building lease agreements. As of March 31, 2017, December 31, 2016 and March 31, 2016, the aforementioned other financial assets amounted to NT$157,244 thousand, NT$185,698 thousand and
NT$154,406 thousand, respectively.
- 40 -
31.
|
SIGNIFICANT OPERATING LEASE ARRANGEMENTS
|
The Companys major significant operating
leases are arrangements on several parcels of land, office premises and certain office equipment.
Future minimum lease payments under the
above
non-cancellable
operating leases are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
March 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Not later than 1 year
|
|
$
|
1,272,661
|
|
|
$
|
1,321,546
|
|
|
$
|
1,311,773
|
|
Later than 1 year and not later than 5 years
|
|
|
3,639,334
|
|
|
|
3,677,432
|
|
|
|
3,997,732
|
|
Later than 5 years
|
|
|
6,727,624
|
|
|
|
6,623,957
|
|
|
|
8,021,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,639,619
|
|
|
$
|
11,622,935
|
|
|
$
|
13,331,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.
|
SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
|
Significant contingent
liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
|
a.
|
Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMCs capacity provided TSMCs outstanding
commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one
year prior notice. As of March 31, 2017, the R.O.C. Government did not invoke such right.
|
|
b.
|
Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore.
TSMCs equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips
spun-off
its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC
shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V.
are required, in the aggregate, to purchase at least 70% of SSMCs capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a
specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of March 31, 2017.
|
|
c.
|
TSMC joined the Customer
Co-Investment
Program of ASML and entered into the investment agreement in August 2012. The agreement includes an investment of EUR837,816 thousand
by TSMC Global to acquire 5% of ASMLs equity with a
lock-up
period of 2.5 years. TSMC Global has acquired the aforementioned equity on October 31, 2012. The
lock-up
period expired on May 1, 2015 and as of October 8, 2015, all ASML shares had been disposed.
|
Both parties also signed the research and development funding agreement whereby TSMC shall provide EUR276,000 thousand to ASMLs
research and development programs from 2013 to 2017. As of March 31, 2017, TSMC has paid EUR244,402 thousand to ASML under the research and development funding agreement.
|
d.
|
Amounts available under unused letters of credit as of March 31, 2017, December 31, 2016 and March 31, 2016 were NT$97,184 thousand, NT$122,356 thousand and NT$122,284 thousand,
respectively.
|
- 41 -
33.
|
SIGNIFICANT LOSS FROM DISASTER
|
On February 6, 2016, an earthquake struck Taiwan.
The resulting damage was mostly to inventories and equipment. The Company recognized earthquake losses of NT$2,492,138 thousand, net of insurance claim, for the year ended December 31, 2016. Such losses were primarily included in cost of
revenue. The related insurance claim was finalized in the first quarter of 2017, and the accumulated earthquake losses were NT$2,386,824 thousand, net of insurance claim. The Company recognized a reduction of such losses of
NT$105,314 thousand for the three months ended March 31, 2017.
34.
|
EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES
|
The
following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant
financial assets and liabilities denominated in foreign currencies were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currencies
(In Thousands)
|
|
|
Exchange Rate
(Note 1)
|
|
|
Carrying
Amount
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
4,344,232
|
|
|
|
30.370
|
|
|
$
|
131,934,327
|
|
USD
|
|
|
305,563
|
|
|
|
6.891
|
(Note 2)
|
|
|
9,279,956
|
|
EUR
|
|
|
12,694
|
|
|
|
32.61
|
|
|
|
413,957
|
|
JPY
|
|
|
418,699
|
|
|
|
0.2731
|
|
|
|
114,347
|
|
Non-monetary
items
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
203,027
|
|
|
|
3.91
|
|
|
|
793,837
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
4,228,469
|
|
|
|
30.370
|
|
|
|
128,418,618
|
|
EUR
|
|
|
211,843
|
|
|
|
32.61
|
|
|
|
6,908,184
|
|
JPY
|
|
|
53,477,096
|
|
|
|
0.2731
|
|
|
|
14,604,595
|
|
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
5,042,715
|
|
|
|
32.199
|
|
|
|
162,370,381
|
|
EUR
|
|
|
19,556
|
|
|
|
34.30
|
|
|
|
670,767
|
|
JPY
|
|
|
37,024,347
|
|
|
|
0.2775
|
|
|
|
10,274,256
|
|
Non-monetary
items
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
257,056
|
|
|
|
4.15
|
|
|
|
1,066,780
|
|
(Continued)
- 42 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currencies
(In Thousands)
|
|
|
Exchange Rate
(Note 1)
|
|
|
Carrying
Amount
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
4,000,930
|
|
|
|
32.199
|
|
|
$
|
128,825,952
|
|
EUR
|
|
|
183,922
|
|
|
|
34.30
|
|
|
|
6,308,513
|
|
JPY
|
|
|
61,062,114
|
|
|
|
0.2775
|
|
|
|
16,944,737
|
|
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
3,627,139
|
|
|
|
32.180
|
|
|
|
116,721,336
|
|
USD
|
|
|
210,246
|
|
|
|
6.468
|
(Note 2)
|
|
|
6,765,720
|
|
EUR
|
|
|
75,403
|
|
|
|
36.50
|
|
|
|
2,752,202
|
|
JPY
|
|
|
37,639,213
|
|
|
|
0.2862
|
|
|
|
10,772,343
|
|
Non-monetary
items
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
145,623
|
|
|
|
4.15
|
|
|
|
604,334
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
2,884,882
|
|
|
|
32.180
|
|
|
|
92,835,508
|
|
EUR
|
|
|
78,424
|
|
|
|
36.50
|
|
|
|
2,862,461
|
|
JPY
|
|
|
37,648,450
|
|
|
|
0.2862
|
|
|
|
10,774,987
|
|
(Concluded)
|
Note 1:
|
Except as otherwise noted, exchange rate represents the number of N.T. dollars for which one foreign currency could be exchanged.
|
|
Note 2:
|
The exchange rate represents the number of RMB for which one USD dollars could be exchanged.
|
Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for
the three months ended March 31, 2017 and 2016, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain
(loss) towards each foreign currency with significant impact.
35.
|
OPERATING SEGMENTS INFORMATION
|
From 2016, the Company has only one operating segment,
the foundry segment. The foundry segment engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.
The Company uses the income from operations as the measurement for the basis of performance assessment. The basis for such measurement is the
same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results.
- 43 -
36.
|
ADDITIONAL DISCLOSURES
|
Following are the additional disclosures required by the
Securities and Futures Bureau for TSMC:
|
a.
|
Financings provided: Please see Table 1 attached;
|
|
b.
|
Endorsement/guarantee provided: Please see Table 2 attached;
|
|
c.
|
Marketable securities held (excluding investments in subsidiaries and associates): Please see Table 3 attached;
|
|
d.
|
Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the
paid-in
capital: Please see Table 4 attached;
|
|
e.
|
Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the
paid-in
capital: Please see Table 5 attached;
|
|
f.
|
Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the
paid-in
capital: None;
|
|
g.
|
Total purchases from or sales to related parties of at least NT$100 million or 20% of the
paid-in
capital: Please see Table 6 attached;
|
|
h.
|
Receivables from related parties amounting to at least NT$100 million or 20% of the
paid-in
capital: Please see Table 7 attached;
|
|
i.
|
Information about the derivative financial instruments transaction: Please see Notes 7 and 10;
|
|
j.
|
Others: The business relationship between the parent and the subsidiaries and significant transactions between them: Please see Table 8 attached;
|
|
k.
|
Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): Please see Table 9 attached;
|
|
l.
|
Information on investment in mainland China
|
|
1)
|
The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the
investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 10 attached.
|
|
2)
|
Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland
China on financial reports: Please see Table 8 attached.
|
- 44 -
TABLE 1
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FINANCINGS PROVIDED
FOR THE THREE MONTHS ENDED
MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Financing
Company
|
|
Counter-party
|
|
Financial
Statement
Account
|
|
Related
Party
|
|
Maximum
Balance for the
Period (foreign
currencies in
Thousands)
(Note 3)
|
|
|
Ending Balance
(foreign
currencies in
Thousands)
(Note 3)
|
|
|
Amount
Actually
Drawn
(foreign
currencies in
Thousands)
|
|
|
Interest
Rate
|
|
|
Nature for
Financing
|
|
Transaction
Amounts
|
|
|
Reason for
Financing
(Note 4)
|
|
Allowance
for Bad
Debt
|
|
|
Collateral
|
|
|
Financing
Limits for
Each
Borrowing
Company
(Note 1
and 2)
|
|
|
Financing
Companys
Total
Financing
Amount
Limits
(Note 1
and 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
Other receivables from related parties
|
|
Yes
|
|
$
(RMB
|
20,271,740
4,600,000
|
)
|
|
$
(RMB
|
20,271,740
4,600,000
|
)
|
|
$
(RMB
|
5,508,625
1,250,000
|
)
|
|
|
1.5%
|
|
|
The need for
long-term
financing (Note 4)
|
|
$
|
|
|
|
Operating capital
|
|
$
|
|
|
|
|
|
$
|
|
|
|
$
|
42,872,278
|
|
|
$
|
42,872,278
|
|
2
|
|
TSMC Global
|
|
TSMC
|
|
Other receivables from related parties
|
|
Yes
|
|
(US$
|
45,555,000
1,500,000
|
)
|
|
(US$
|
45,555,000
1,500,000
|
)
|
|
(US$
|
6,074,000
200,000
|
)
|
|
|
1.08%
|
|
|
The need for
short-term
financing
|
|
|
|
|
|
Operating capital
|
|
|
|
|
|
|
|
|
|
|
|
|
251,749,192
|
|
|
|
251,749,192
|
|
Note 1:
|
The total amount available for lending purpose shall not exceed the net worth of TSMC China. The total amount for lending to a company for funding for a short-term period shall not exceed ten percent (10%) of the net
worth of TSMC China. In addition, the total amount lendable to any one borrower shall be no more than thirty percent (30%) of the borrowers net worth. The above restriction does not apply to the subsidiaries whose voting shares are 100% owned,
directly or indirectly, by TSMC. However, the total amount lendable to any such subsidiary of TSMC shall not exceed forty percent (40%) of the net worth of TSMC China. When there is a lending for funding needs by TSMC China to TSMC, or to the
subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC, which are not located in Taiwan, the lending will not be subject to the restriction set forth in the above paragraph of this Article. Notwithstanding the foregoing,
the aggregate amount available for lending to such borrowers and the total amount lendable to each of such borrowers still shall not exceed the net worth of TSMC China.
|
Note 2:
|
The total amount available for lending purpose shall not exceed the net worth of TSMC Global. The total amount for lending to a company for funding for a short-term period shall not exceed ten percent (10%) of the net
worth of TSMC Global. In addition, the total amount lendable to any one borrower shall be no more than thirty percent (30%) of the borrowers net worth. While TSMC, or foreign subsidiaries whose voting shares are 100% owned, directly or
indirectly, by TSMC will not be subject to this restriction, their total borrowing amount still shall not exceed the net worth of TSMC Global. Notwithstanding the foregoing, the aggregate amount for lending to Taiwan companies other than TSMC shall
not exceed forty percent (40%) of the net worth of TSMC Global.
|
Note 3:
|
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.
|
Note 4:
|
The restriction of the term of each loan for funding not exceeding one year shall not apply to inter-company loans for funding between offshore subsidiaries in which the Company holds, directly or indirectly, 100% of
the voting shares.
|
- 45 -
TABLE 2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE THREE MONTHS
ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Endorsement/
Guarantee Provider
|
|
Guaranteed Party
|
|
Limits on
Endorsement/
Guarantee
Amount
Provided to Each
Guaranteed
Party
(Notes 1 and
2)
|
|
|
Maximum
Balance
for the Period
(US$ in
Thousands)
(Note 3)
|
|
|
Ending
Balance
(US$ in
Thousands)
(Note 3)
|
|
|
Amount
Actually
Drawn
(US$ in
Thousands)
|
|
|
Amount of
Endorsement/
Guarantee
Collateralized
by Properties
|
|
|
Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity
per Latest
Financial
Statements
|
|
|
Maximum
Endorsement/
Guarantee
Amount
Allowable
(Note 2)
|
|
|
Guarantee
Provided
by Parent
Company
|
|
|
Guarantee
Provided by
A Subsidiary
|
|
|
Guarantee
Provided to
Subsidiaries
in Mainland
China
|
|
|
|
Name
|
|
Nature of
Relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0
|
|
TSMC
|
|
TSMC Global
|
|
Subsidiary
|
|
$
|
363,878,341
|
|
|
$
(US$
|
34,925,500
1,150,000
|
)
|
|
$
(US$
|
34,925,500
1,150,000
|
)
|
|
$
(US$
|
34,925,500
1,150,000
|
)
|
|
$
|
|
|
|
|
2.40%
|
|
|
$
|
363,878,341
|
|
|
|
Yes
|
|
|
|
No
|
|
|
|
No
|
|
|
|
|
|
TSMC North America
|
|
Subsidiary
|
|
|
363,878,341
|
|
|
(US$
|
2,527,188
83,213
|
)
|
|
(US$
|
2,527,188
83,213
|
)
|
|
(US$
|
2,527,188
83,213
|
)
|
|
|
|
|
|
|
0.17%
|
|
|
|
363,878,341
|
|
|
|
Yes
|
|
|
|
No
|
|
|
|
No
|
|
Note 1:
|
The total amount of the guarantee provided by TSMC to any individual entity shall not exceed ten percent (10%) of TSMCs net worth, or the net worth of such entity. However, subsidiaries whose voting shares are
100% owned, directly or indirectly, by TSMC are not subject to the above restrictions after the approval of the Board of Directors.
|
Note 2:
|
The total amount of guarantee shall not exceed twenty-five percent (25%) of TSMCs net worth.
|
Note 3:
|
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.
|
- 46 -
TABLE 3
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES HELD
MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPC Corporation, Taiwan
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
$
|
1,964,419
|
|
|
|
N/A
|
|
|
$
|
1,965,654
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
|
|
|
|
|
|
|
|
|
200,336
|
|
|
|
N/A
|
|
|
|
200,350
|
|
|
|
|
|
|
|
Nan Ya Plastics Corporation
|
|
|
|
|
|
|
|
|
|
|
150,472
|
|
|
|
N/A
|
|
|
|
150,486
|
|
|
|
|
|
|
|
Formosa Petrochemical Corporation
|
|
|
|
|
|
|
|
|
|
|
100,101
|
|
|
|
N/A
|
|
|
|
100,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
|
|
Held-to-maturity
financial assets
|
|
|
1,035
|
|
|
|
10,323,947
|
|
|
|
N/A
|
|
|
|
10,343,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motech
|
|
|
|
Available-for-sale
financial assets
|
|
|
58,320
|
|
|
|
1,632,954
|
|
|
|
12
|
|
|
|
1,632,954
|
|
|
|
|
|
|
|
Semiconductor Manufacturing International Corporation
|
|
|
|
|
|
|
21,105
|
|
|
|
793,837
|
|
|
|
|
|
|
|
793,837
|
|
|
|
|
|
|
|
United Industrial Gases Co., Ltd.
|
|
|
|
Financial assets carried at cost
|
|
|
21,230
|
|
|
|
193,584
|
|
|
|
10
|
|
|
|
193,584
|
|
|
|
|
|
|
|
Shin-Etsu Handotai Taiwan Co., Ltd.
|
|
|
|
|
|
|
10,500
|
|
|
|
105,000
|
|
|
|
7
|
|
|
|
105,000
|
|
|
|
|
|
|
|
Global Investment Holding Inc.
|
|
|
|
|
|
|
11,124
|
|
|
|
99,041
|
|
|
|
6
|
|
|
|
99,041
|
|
|
|
|
|
|
|
W.K. Technology Fund IV
|
|
|
|
|
|
|
2,560
|
|
|
|
18,121
|
|
|
|
2
|
|
|
|
18,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Horizon Ventures Fund
|
|
|
|
Financial assets carried at cost
|
|
|
|
|
|
|
9,031
|
|
|
|
12
|
|
|
|
9,031
|
|
|
|
|
|
|
|
Crimson Asia Capital
|
|
|
|
|
|
|
|
|
|
|
8,263
|
|
|
|
1
|
|
|
|
8,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tela Innovations
|
|
|
|
Financial assets carried at cost
|
|
|
10,440
|
|
|
US$
|
65,000
|
|
|
|
25
|
|
|
US$
|
65,000
|
|
|
|
|
|
|
|
Mcube Inc.
|
|
|
|
|
|
|
6,333
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Walden Venture Investments II, L.P.
|
|
|
|
Financial assets carried at cost
|
|
|
|
|
|
US$
|
8,101
|
|
|
|
9
|
|
|
US$
|
8,101
|
|
|
|
|
|
|
|
Shanghai Walden Venture Capital Enterprise
|
|
|
|
|
|
|
|
|
|
US$
|
4,270
|
|
|
|
6
|
|
|
US$
|
4,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
33,760
|
|
|
|
N/A
|
|
|
US$
|
33,760
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
|
|
|
|
|
|
US$
|
30,911
|
|
|
|
N/A
|
|
|
US$
|
30,911
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
|
|
|
|
|
|
|
|
US$
|
30,498
|
|
|
|
N/A
|
|
|
US$
|
30,498
|
|
|
|
|
|
|
|
Goldman Sachs Group Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
24,427
|
|
|
|
N/A
|
|
|
US$
|
24,427
|
|
|
|
|
|
|
|
Verizon Communications
|
|
|
|
|
|
|
|
|
|
US$
|
20,024
|
|
|
|
N/A
|
|
|
US$
|
20,024
|
|
|
|
|
|
|
|
Citigroup Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
18,933
|
|
|
|
N/A
|
|
|
US$
|
18,933
|
|
|
|
|
|
|
|
AT&T Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
18,774
|
|
|
|
N/A
|
|
|
US$
|
18,774
|
|
|
|
|
|
|
|
Abbvie Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
15,024
|
|
|
|
N/A
|
|
|
US$
|
15,024
|
|
|
|
|
|
|
|
Ford Motor Credit Co LLC
|
|
|
|
|
|
|
|
|
|
US$
|
13,529
|
|
|
|
N/A
|
|
|
US$
|
13,529
|
|
|
|
|
|
|
|
Microsoft Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
13,288
|
|
|
|
N/A
|
|
|
US$
|
13,288
|
|
|
|
|
|
|
|
Gilead Sciences Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
11,886
|
|
|
|
N/A
|
|
|
US$
|
11,886
|
|
|
|
|
|
|
|
PNC Bank NA
|
|
|
|
|
|
|
|
|
|
US$
|
11,619
|
|
|
|
N/A
|
|
|
US$
|
11,619
|
|
|
|
|
|
|
|
Anheuser Busch InBev Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
11,286
|
|
|
|
N/A
|
|
|
US$
|
11,286
|
|
|
|
|
|
|
|
Apple Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
11,224
|
|
|
|
N/A
|
|
|
US$
|
11,224
|
|
|
|
|
|
|
|
Capital One NA
|
|
|
|
|
|
|
|
|
|
US$
|
11,067
|
|
|
|
N/A
|
|
|
US$
|
11,067
|
|
|
|
|
|
|
|
BP Capital Markets PLC
|
|
|
|
|
|
|
|
|
|
US$
|
10,286
|
|
|
|
N/A
|
|
|
US$
|
10,286
|
|
|
|
|
|
|
|
BMW US Capital LLC
|
|
|
|
|
|
|
|
|
|
US$
|
10,226
|
|
|
|
N/A
|
|
|
US$
|
10,226
|
|
|
|
|
|
(Continued)
- 47 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Oracle Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
10,148
|
|
|
|
N/A
|
|
|
US$
|
10,148
|
|
|
|
|
|
|
|
Westpac Banking Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
9,975
|
|
|
|
N/A
|
|
|
US$
|
9,975
|
|
|
|
|
|
|
|
Svenska Handelsbanken AB
|
|
|
|
|
|
|
|
|
|
US$
|
9,870
|
|
|
|
N/A
|
|
|
US$
|
9,870
|
|
|
|
|
|
|
|
CVS Health Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
9,746
|
|
|
|
N/A
|
|
|
US$
|
9,746
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
US$
|
9,182
|
|
|
|
N/A
|
|
|
US$
|
9,182
|
|
|
|
|
|
|
|
Analog Devices, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
8,914
|
|
|
|
N/A
|
|
|
US$
|
8,914
|
|
|
|
|
|
|
|
Southern Co.
|
|
|
|
|
|
|
|
|
|
US$
|
8,528
|
|
|
|
N/A
|
|
|
US$
|
8,528
|
|
|
|
|
|
|
|
Duke Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
8,100
|
|
|
|
N/A
|
|
|
US$
|
8,100
|
|
|
|
|
|
|
|
Aviation Capital Group
|
|
|
|
|
|
|
|
|
|
US$
|
8,087
|
|
|
|
N/A
|
|
|
US$
|
8,087
|
|
|
|
|
|
|
|
Rockwell Collins, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
8,055
|
|
|
|
N/A
|
|
|
US$
|
8,055
|
|
|
|
|
|
|
|
ERAC USA Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
7,600
|
|
|
|
N/A
|
|
|
US$
|
7,600
|
|
|
|
|
|
|
|
Ventas Realty LP/Cap Crp.
|
|
|
|
|
|
|
|
|
|
US$
|
7,531
|
|
|
|
N/A
|
|
|
US$
|
7,531
|
|
|
|
|
|
|
|
Credit Suisse New York
|
|
|
|
|
|
|
|
|
|
US$
|
7,267
|
|
|
|
N/A
|
|
|
US$
|
7,267
|
|
|
|
|
|
|
|
Pricoa Global Funding I
|
|
|
|
|
|
|
|
|
|
US$
|
7,151
|
|
|
|
N/A
|
|
|
US$
|
7,151
|
|
|
|
|
|
|
|
HSBC Holdings PLC
|
|
|
|
|
|
|
|
|
|
US$
|
6,872
|
|
|
|
N/A
|
|
|
US$
|
6,872
|
|
|
|
|
|
|
|
Dow Chemical Co/The
|
|
|
|
|
|
|
|
|
|
US$
|
6,571
|
|
|
|
N/A
|
|
|
US$
|
6,571
|
|
|
|
|
|
|
|
Teva Pharmaceuticals Netherlands
|
|
|
|
|
|
|
|
|
|
US$
|
6,198
|
|
|
|
N/A
|
|
|
US$
|
6,198
|
|
|
|
|
|
|
|
Dominion Resources Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,195
|
|
|
|
N/A
|
|
|
US$
|
6,195
|
|
|
|
|
|
|
|
Suntrust Banks Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,193
|
|
|
|
N/A
|
|
|
US$
|
6,193
|
|
|
|
|
|
|
|
Welltower Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,122
|
|
|
|
N/A
|
|
|
US$
|
6,122
|
|
|
|
|
|
|
|
Sumitomo Mitsui Trust Bank, Limited
|
|
|
|
|
|
|
|
|
|
US$
|
6,039
|
|
|
|
N/A
|
|
|
US$
|
6,039
|
|
|
|
|
|
|
|
Skandinaviska Enskilda Banken AB
|
|
|
|
|
|
|
|
|
|
US$
|
6,018
|
|
|
|
N/A
|
|
|
US$
|
6,018
|
|
|
|
|
|
|
|
Berkshire Hathaway Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
6,016
|
|
|
|
N/A
|
|
|
US$
|
6,016
|
|
|
|
|
|
|
|
BB&T Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
5,981
|
|
|
|
N/A
|
|
|
US$
|
5,981
|
|
|
|
|
|
|
|
Royal Bank of Canada
|
|
|
|
|
|
|
|
|
|
US$
|
5,935
|
|
|
|
N/A
|
|
|
US$
|
5,935
|
|
|
|
|
|
|
|
Nextera Energy Capital
|
|
|
|
|
|
|
|
|
|
US$
|
5,877
|
|
|
|
N/A
|
|
|
US$
|
5,877
|
|
|
|
|
|
|
|
Mizuho Financial Group
|
|
|
|
|
|
|
|
|
|
US$
|
5,868
|
|
|
|
N/A
|
|
|
US$
|
5,868
|
|
|
|
|
|
|
|
Toronto Dominion Bank
|
|
|
|
|
|
|
|
|
|
US$
|
5,835
|
|
|
|
N/A
|
|
|
US$
|
5,835
|
|
|
|
|
|
|
|
Huntington National Bank
|
|
|
|
|
|
|
|
|
|
US$
|
5,807
|
|
|
|
N/A
|
|
|
US$
|
5,807
|
|
|
|
|
|
|
|
Groupe Danone S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
5,762
|
|
|
|
N/A
|
|
|
US$
|
5,762
|
|
|
|
|
|
|
|
Shell International Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
5,732
|
|
|
|
N/A
|
|
|
US$
|
5,732
|
|
|
|
|
|
|
|
Citizens Bank NA/RI
|
|
|
|
|
|
|
|
|
|
US$
|
5,718
|
|
|
|
N/A
|
|
|
US$
|
5,718
|
|
|
|
|
|
|
|
Toyota Motor Credit Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,649
|
|
|
|
N/A
|
|
|
US$
|
5,649
|
|
|
|
|
|
|
|
ABN AMRO Bank N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
5,597
|
|
|
|
N/A
|
|
|
US$
|
5,597
|
|
|
|
|
|
|
|
Protective Life Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
5,561
|
|
|
|
N/A
|
|
|
US$
|
5,561
|
|
|
|
|
|
|
|
Key Bank N.A.
|
|
|
|
|
|
|
|
|
|
US$
|
5,551
|
|
|
|
N/A
|
|
|
US$
|
5,551
|
|
|
|
|
|
|
|
Mitsubishi UFJ Fin Grp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,550
|
|
|
|
N/A
|
|
|
US$
|
5,550
|
|
|
|
|
|
|
|
Bank of Ny Mellon Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,519
|
|
|
|
N/A
|
|
|
US$
|
5,519
|
|
|
|
|
|
|
|
Cisco Systems Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,514
|
|
|
|
N/A
|
|
|
US$
|
5,514
|
|
|
|
|
|
|
|
New York Life Global FDG
|
|
|
|
|
|
|
|
|
|
US$
|
5,454
|
|
|
|
N/A
|
|
|
US$
|
5,454
|
|
|
|
|
|
|
|
Walgreens Boots Alliance
|
|
|
|
|
|
|
|
|
|
US$
|
5,413
|
|
|
|
N/A
|
|
|
US$
|
5,413
|
|
|
|
|
|
|
|
Siemens Financieringsmat
|
|
|
|
|
|
|
|
|
|
US$
|
5,381
|
|
|
|
N/A
|
|
|
US$
|
5,381
|
|
|
|
|
|
|
|
Hyundai Capital America
|
|
|
|
|
|
|
|
|
|
US$
|
5,362
|
|
|
|
N/A
|
|
|
US$
|
5,362
|
|
|
|
|
|
|
|
Deutsche Telekom International Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
5,350
|
|
|
|
N/A
|
|
|
US$
|
5,350
|
|
|
|
|
|
|
|
Sempra Energy
|
|
|
|
|
|
|
|
|
|
US$
|
5,158
|
|
|
|
N/A
|
|
|
US$
|
5,158
|
|
|
|
|
|
|
|
Intl. Bank Recon. & Development
|
|
|
|
|
|
|
|
|
|
US$
|
5,146
|
|
|
|
N/A
|
|
|
US$
|
5,146
|
|
|
|
|
|
|
|
Jackson Natl Life Global
|
|
|
|
|
|
|
|
|
|
US$
|
5,077
|
|
|
|
N/A
|
|
|
US$
|
5,077
|
|
|
|
|
|
|
|
Voya Financial, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,046
|
|
|
|
N/A
|
|
|
US$
|
5,046
|
|
|
|
|
|
|
|
UBS AG Stamford CT
|
|
|
|
|
|
|
|
|
|
US$
|
5,027
|
|
|
|
N/A
|
|
|
US$
|
5,027
|
|
|
|
|
|
|
|
Macquarie Group Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
5,009
|
|
|
|
N/A
|
|
|
US$
|
5,009
|
|
|
|
|
|
|
|
Reliance Stand Life II
|
|
|
|
|
|
|
|
|
|
US$
|
4,952
|
|
|
|
N/A
|
|
|
US$
|
4,952
|
|
|
|
|
|
|
|
CA, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,939
|
|
|
|
N/A
|
|
|
US$
|
4,939
|
|
|
|
|
|
|
|
Daimler Finance NA LLC.
|
|
|
|
|
|
|
|
|
|
US$
|
4,811
|
|
|
|
N/A
|
|
|
US$
|
4,811
|
|
|
|
|
|
|
|
UBS Group Funding
|
|
|
|
|
|
|
|
|
|
US$
|
4,733
|
|
|
|
N/A
|
|
|
US$
|
4,733
|
|
|
|
|
|
|
|
American Honda Finance
|
|
|
|
|
|
|
|
|
|
US$
|
4,725
|
|
|
|
N/A
|
|
|
US$
|
4,725
|
|
|
|
|
|
(Continued)
- 48 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Air Liquide Finance
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
4,717
|
|
|
|
N/A
|
|
|
US$
|
4,717
|
|
|
|
|
|
|
|
Fifth Third Bank
|
|
|
|
|
|
|
|
|
|
US$
|
4,712
|
|
|
|
N/A
|
|
|
US$
|
4,712
|
|
|
|
|
|
|
|
ING Bank N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
4,693
|
|
|
|
N/A
|
|
|
US$
|
4,693
|
|
|
|
|
|
|
|
Nordea Bank AB
|
|
|
|
|
|
|
|
|
|
US$
|
4,676
|
|
|
|
N/A
|
|
|
US$
|
4,676
|
|
|
|
|
|
|
|
Sumitomo Mitsui Financial Group
|
|
|
|
|
|
|
|
|
|
US$
|
4,400
|
|
|
|
N/A
|
|
|
US$
|
4,400
|
|
|
|
|
|
|
|
Enel Finance Intl N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
4,394
|
|
|
|
N/A
|
|
|
US$
|
4,394
|
|
|
|
|
|
|
|
US Bank NA Cincinnati
|
|
|
|
|
|
|
|
|
|
US$
|
4,379
|
|
|
|
N/A
|
|
|
US$
|
4,379
|
|
|
|
|
|
|
|
Oaktree Capital Management, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
4,302
|
|
|
|
N/A
|
|
|
US$
|
4,302
|
|
|
|
|
|
|
|
Marriott International, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,291
|
|
|
|
N/A
|
|
|
US$
|
4,291
|
|
|
|
|
|
|
|
U.S. Bancorp
|
|
|
|
|
|
|
|
|
|
US$
|
4,277
|
|
|
|
N/A
|
|
|
US$
|
4,277
|
|
|
|
|
|
|
|
Twenty-First Century Fox Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,267
|
|
|
|
N/A
|
|
|
US$
|
4,267
|
|
|
|
|
|
|
|
Lloyds Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
4,226
|
|
|
|
N/A
|
|
|
US$
|
4,226
|
|
|
|
|
|
|
|
Exelon Generation Co. LLC
|
|
|
|
|
|
|
|
|
|
US$
|
4,176
|
|
|
|
N/A
|
|
|
US$
|
4,176
|
|
|
|
|
|
|
|
Schlumberger Hldgs Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
4,150
|
|
|
|
N/A
|
|
|
US$
|
4,150
|
|
|
|
|
|
|
|
Keycorp Pty Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
4,065
|
|
|
|
N/A
|
|
|
US$
|
4,065
|
|
|
|
|
|
|
|
American Express Credit
|
|
|
|
|
|
|
|
|
|
US$
|
4,054
|
|
|
|
N/A
|
|
|
US$
|
4,054
|
|
|
|
|
|
|
|
Cadillac Fairview Corp. Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
4,042
|
|
|
|
N/A
|
|
|
US$
|
4,042
|
|
|
|
|
|
|
|
Pepsico Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,010
|
|
|
|
N/A
|
|
|
US$
|
4,010
|
|
|
|
|
|
|
|
Mondelez International
|
|
|
|
|
|
|
|
|
|
US$
|
3,974
|
|
|
|
N/A
|
|
|
US$
|
3,974
|
|
|
|
|
|
|
|
Fortive Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
3,951
|
|
|
|
N/A
|
|
|
US$
|
3,951
|
|
|
|
|
|
|
|
Wells Fargo Bank NA
|
|
|
|
|
|
|
|
|
|
US$
|
3,908
|
|
|
|
N/A
|
|
|
US$
|
3,908
|
|
|
|
|
|
|
|
American Intl. Group
|
|
|
|
|
|
|
|
|
|
US$
|
3,809
|
|
|
|
N/A
|
|
|
US$
|
3,809
|
|
|
|
|
|
|
|
Fifth Third Bancorp
|
|
|
|
|
|
|
|
|
|
US$
|
3,789
|
|
|
|
N/A
|
|
|
US$
|
3,789
|
|
|
|
|
|
|
|
Autozone Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,781
|
|
|
|
N/A
|
|
|
US$
|
3,781
|
|
|
|
|
|
|
|
Husky Energy Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,765
|
|
|
|
N/A
|
|
|
US$
|
3,765
|
|
|
|
|
|
|
|
Anheuser Busch InBev Worldwide Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,648
|
|
|
|
N/A
|
|
|
US$
|
3,648
|
|
|
|
|
|
|
|
SES GLOBAL-Americas Holdings
|
|
|
|
|
|
|
|
|
|
US$
|
3,517
|
|
|
|
N/A
|
|
|
US$
|
3,517
|
|
|
|
|
|
|
|
BAT Intl Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
3,496
|
|
|
|
N/A
|
|
|
US$
|
3,496
|
|
|
|
|
|
|
|
Credit Agricole London
|
|
|
|
|
|
|
|
|
|
US$
|
3,326
|
|
|
|
N/A
|
|
|
US$
|
3,326
|
|
|
|
|
|
|
|
Lam Research Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
3,252
|
|
|
|
N/A
|
|
|
US$
|
3,252
|
|
|
|
|
|
|
|
Ryder System Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,233
|
|
|
|
N/A
|
|
|
US$
|
3,233
|
|
|
|
|
|
|
|
Time Warner Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,043
|
|
|
|
N/A
|
|
|
US$
|
3,043
|
|
|
|
|
|
|
|
Canadian Imperial Bank
|
|
|
|
|
|
|
|
|
|
US$
|
3,013
|
|
|
|
N/A
|
|
|
US$
|
3,013
|
|
|
|
|
|
|
|
Express Scripts Holding
|
|
|
|
|
|
|
|
|
|
US$
|
2,996
|
|
|
|
N/A
|
|
|
US$
|
2,996
|
|
|
|
|
|
|
|
Suncorp Metway Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
2,991
|
|
|
|
N/A
|
|
|
US$
|
2,991
|
|
|
|
|
|
|
|
Rabobank Nederland NY
|
|
|
|
|
|
|
|
|
|
US$
|
2,861
|
|
|
|
N/A
|
|
|
US$
|
2,861
|
|
|
|
|
|
|
|
Principal Life Global Funding II
|
|
|
|
|
|
|
|
|
|
US$
|
2,781
|
|
|
|
N/A
|
|
|
US$
|
2,781
|
|
|
|
|
|
|
|
PartnerRe Finance B LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,732
|
|
|
|
N/A
|
|
|
US$
|
2,732
|
|
|
|
|
|
|
|
Barclays PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,705
|
|
|
|
N/A
|
|
|
US$
|
2,705
|
|
|
|
|
|
|
|
Sprint Spectrum L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
2,693
|
|
|
|
N/A
|
|
|
US$
|
2,693
|
|
|
|
|
|
|
|
Chevron Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,645
|
|
|
|
N/A
|
|
|
US$
|
2,645
|
|
|
|
|
|
|
|
LyondellBasell Industries N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
2,570
|
|
|
|
N/A
|
|
|
US$
|
2,570
|
|
|
|
|
|
|
|
TIAA Asset Management Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,567
|
|
|
|
N/A
|
|
|
US$
|
2,567
|
|
|
|
|
|
|
|
MetLife Global Funding I
|
|
|
|
|
|
|
|
|
|
US$
|
2,527
|
|
|
|
N/A
|
|
|
US$
|
2,527
|
|
|
|
|
|
|
|
Sumitomo Mitsui Banking
|
|
|
|
|
|
|
|
|
|
US$
|
2,483
|
|
|
|
N/A
|
|
|
US$
|
2,483
|
|
|
|
|
|
|
|
Eastman Chemical Company
|
|
|
|
|
|
|
|
|
|
US$
|
2,452
|
|
|
|
N/A
|
|
|
US$
|
2,452
|
|
|
|
|
|
|
|
Xylem Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,443
|
|
|
|
N/A
|
|
|
US$
|
2,443
|
|
|
|
|
|
|
|
Commonwealth Bank Australia NY
|
|
|
|
|
|
|
|
|
|
US$
|
2,410
|
|
|
|
N/A
|
|
|
US$
|
2,410
|
|
|
|
|
|
|
|
HSBC USA Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,374
|
|
|
|
N/A
|
|
|
US$
|
2,374
|
|
|
|
|
|
|
|
NBCUniversal Media, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,363
|
|
|
|
N/A
|
|
|
US$
|
2,363
|
|
|
|
|
|
|
|
Biogen Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,347
|
|
|
|
N/A
|
|
|
US$
|
2,347
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ
|
|
|
|
|
|
|
|
|
|
US$
|
2,307
|
|
|
|
N/A
|
|
|
US$
|
2,307
|
|
|
|
|
|
|
|
Air Lease Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
2,288
|
|
|
|
N/A
|
|
|
US$
|
2,288
|
|
|
|
|
|
(Continued)
- 49 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Mckesson Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
2,259
|
|
|
|
N/A
|
|
|
US$
|
2,259
|
|
|
|
|
|
|
|
Cintas Corporation No. 2
|
|
|
|
|
|
|
|
|
|
US$
|
2,226
|
|
|
|
N/A
|
|
|
US$
|
2,226
|
|
|
|
|
|
|
|
ING Groep N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
2,203
|
|
|
|
N/A
|
|
|
US$
|
2,203
|
|
|
|
|
|
|
|
Allied World Assurance
|
|
|
|
|
|
|
|
|
|
US$
|
2,184
|
|
|
|
N/A
|
|
|
US$
|
2,184
|
|
|
|
|
|
|
|
Celgene Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,126
|
|
|
|
N/A
|
|
|
US$
|
2,126
|
|
|
|
|
|
|
|
HCP Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,096
|
|
|
|
N/A
|
|
|
US$
|
2,096
|
|
|
|
|
|
|
|
Enterprise Products Operating, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,044
|
|
|
|
N/A
|
|
|
US$
|
2,044
|
|
|
|
|
|
|
|
Johnson Controls International PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,025
|
|
|
|
N/A
|
|
|
US$
|
2,025
|
|
|
|
|
|
|
|
Sysco Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
2,014
|
|
|
|
N/A
|
|
|
US$
|
2,014
|
|
|
|
|
|
|
|
British Telecommunications PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,011
|
|
|
|
N/A
|
|
|
US$
|
2,011
|
|
|
|
|
|
|
|
Nordic Investment Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,998
|
|
|
|
N/A
|
|
|
US$
|
1,998
|
|
|
|
|
|
|
|
Asian Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,997
|
|
|
|
N/A
|
|
|
US$
|
1,997
|
|
|
|
|
|
|
|
Wm. Wrigley Jr. Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,997
|
|
|
|
N/A
|
|
|
US$
|
1,997
|
|
|
|
|
|
|
|
Lloyds Banking Group PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,989
|
|
|
|
N/A
|
|
|
US$
|
1,989
|
|
|
|
|
|
|
|
The Bear Stearns Companies LLC.
|
|
|
|
|
|
|
|
|
|
US$
|
1,986
|
|
|
|
N/A
|
|
|
US$
|
1,986
|
|
|
|
|
|
|
|
State Street Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,986
|
|
|
|
N/A
|
|
|
US$
|
1,986
|
|
|
|
|
|
|
|
Credit Suisse Group Funding Limited
|
|
|
|
|
|
|
|
|
|
US$
|
1,980
|
|
|
|
N/A
|
|
|
US$
|
1,980
|
|
|
|
|
|
|
|
Danske Bank A/S
|
|
|
|
|
|
|
|
|
|
US$
|
1,964
|
|
|
|
N/A
|
|
|
US$
|
1,964
|
|
|
|
|
|
|
|
Magellan Midstream Partners LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,958
|
|
|
|
N/A
|
|
|
US$
|
1,958
|
|
|
|
|
|
|
|
Stryker Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,955
|
|
|
|
N/A
|
|
|
US$
|
1,955
|
|
|
|
|
|
|
|
Unitedhealth Group Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,952
|
|
|
|
N/A
|
|
|
US$
|
1,952
|
|
|
|
|
|
|
|
National Australia Bank/NY
|
|
|
|
|
|
|
|
|
|
US$
|
1,948
|
|
|
|
N/A
|
|
|
US$
|
1,948
|
|
|
|
|
|
|
|
BPCE SA
|
|
|
|
|
|
|
|
|
|
US$
|
1,912
|
|
|
|
N/A
|
|
|
US$
|
1,912
|
|
|
|
|
|
|
|
Branch Banking & Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,884
|
|
|
|
N/A
|
|
|
US$
|
1,884
|
|
|
|
|
|
|
|
Suntrust Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,846
|
|
|
|
N/A
|
|
|
US$
|
1,846
|
|
|
|
|
|
|
|
WestRock RKT Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,841
|
|
|
|
N/A
|
|
|
US$
|
1,841
|
|
|
|
|
|
|
|
Orange S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
1,829
|
|
|
|
N/A
|
|
|
US$
|
1,829
|
|
|
|
|
|
|
|
Stancorp Financial Group
|
|
|
|
|
|
|
|
|
|
US$
|
1,825
|
|
|
|
N/A
|
|
|
US$
|
1,825
|
|
|
|
|
|
|
|
Regency Centers, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
1,804
|
|
|
|
N/A
|
|
|
US$
|
1,804
|
|
|
|
|
|
|
|
Aust. & NZ Banking Grp. NY
|
|
|
|
|
|
|
|
|
|
US$
|
1,801
|
|
|
|
N/A
|
|
|
US$
|
1,801
|
|
|
|
|
|
|
|
Southern Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,788
|
|
|
|
N/A
|
|
|
US$
|
1,788
|
|
|
|
|
|
|
|
Dominion Gas Holdings, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,772
|
|
|
|
N/A
|
|
|
US$
|
1,772
|
|
|
|
|
|
|
|
Cardinal Health Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,755
|
|
|
|
N/A
|
|
|
US$
|
1,755
|
|
|
|
|
|
|
|
Kimco Realty Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,730
|
|
|
|
N/A
|
|
|
US$
|
1,730
|
|
|
|
|
|
|
|
Amgen Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,717
|
|
|
|
N/A
|
|
|
US$
|
1,717
|
|
|
|
|
|
|
|
Tyson Foods, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,709
|
|
|
|
N/A
|
|
|
US$
|
1,709
|
|
|
|
|
|
|
|
Penske Truck Leasing (PTL)
|
|
|
|
|
|
|
|
|
|
US$
|
1,679
|
|
|
|
N/A
|
|
|
US$
|
1,679
|
|
|
|
|
|
|
|
Pacific Gas & Electric
|
|
|
|
|
|
|
|
|
|
US$
|
1,618
|
|
|
|
N/A
|
|
|
US$
|
1,618
|
|
|
|
|
|
|
|
Aetna Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,604
|
|
|
|
N/A
|
|
|
US$
|
1,604
|
|
|
|
|
|
|
|
Trans Canada Pipelines
|
|
|
|
|
|
|
|
|
|
US$
|
1,569
|
|
|
|
N/A
|
|
|
US$
|
1,569
|
|
|
|
|
|
|
|
African Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,565
|
|
|
|
N/A
|
|
|
US$
|
1,565
|
|
|
|
|
|
|
|
Capital One Bank (USA), NA
|
|
|
|
|
|
|
|
|
|
US$
|
1,553
|
|
|
|
N/A
|
|
|
US$
|
1,553
|
|
|
|
|
|
|
|
Simon Property Group LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,504
|
|
|
|
N/A
|
|
|
US$
|
1,504
|
|
|
|
|
|
|
|
Standard Chartered PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,493
|
|
|
|
N/A
|
|
|
US$
|
1,493
|
|
|
|
|
|
|
|
HSBC Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,479
|
|
|
|
N/A
|
|
|
US$
|
1,479
|
|
|
|
|
|
|
|
Suncor Energy, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,474
|
|
|
|
N/A
|
|
|
US$
|
1,474
|
|
|
|
|
|
|
|
Procter & Gamble Co/The
|
|
|
|
|
|
|
|
|
|
US$
|
1,472
|
|
|
|
N/A
|
|
|
US$
|
1,472
|
|
|
|
|
|
|
|
Guardian Life Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
1,466
|
|
|
|
N/A
|
|
|
US$
|
1,466
|
|
|
|
|
|
|
|
Oesterreichische Kontrollbank
|
|
|
|
|
|
|
|
|
|
US$
|
1,454
|
|
|
|
N/A
|
|
|
US$
|
1,454
|
|
|
|
|
|
|
|
Walt Disney Company/The
|
|
|
|
|
|
|
|
|
|
US$
|
1,398
|
|
|
|
N/A
|
|
|
US$
|
1,398
|
|
|
|
|
|
|
|
ConocoPhillips
|
|
|
|
|
|
|
|
|
|
US$
|
1,391
|
|
|
|
N/A
|
|
|
US$
|
1,391
|
|
|
|
|
|
|
|
PacifiCorp
|
|
|
|
|
|
|
|
|
|
US$
|
1,374
|
|
|
|
N/A
|
|
|
US$
|
1,374
|
|
|
|
|
|
|
|
Swedbank AB
|
|
|
|
|
|
|
|
|
|
US$
|
1,347
|
|
|
|
N/A
|
|
|
US$
|
1,347
|
|
|
|
|
|
(Continued)
- 50 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
IBM Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
1,310
|
|
|
|
N/A
|
|
|
US$
|
1,310
|
|
|
|
|
|
|
|
Eaton Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,296
|
|
|
|
N/A
|
|
|
US$
|
1,296
|
|
|
|
|
|
|
|
Santander UK PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,294
|
|
|
|
N/A
|
|
|
US$
|
1,294
|
|
|
|
|
|
|
|
Equifax Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,290
|
|
|
|
N/A
|
|
|
US$
|
1,290
|
|
|
|
|
|
|
|
Philip Morris Intl Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,290
|
|
|
|
N/A
|
|
|
US$
|
1,290
|
|
|
|
|
|
|
|
Comcast Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,287
|
|
|
|
N/A
|
|
|
US$
|
1,287
|
|
|
|
|
|
|
|
Visa Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,279
|
|
|
|
N/A
|
|
|
US$
|
1,279
|
|
|
|
|
|
|
|
Nissan Motor Acceptance
|
|
|
|
|
|
|
|
|
|
US$
|
1,261
|
|
|
|
N/A
|
|
|
US$
|
1,261
|
|
|
|
|
|
|
|
The Western Union Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,259
|
|
|
|
N/A
|
|
|
US$
|
1,259
|
|
|
|
|
|
|
|
Kroger Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,252
|
|
|
|
N/A
|
|
|
US$
|
1,252
|
|
|
|
|
|
|
|
CSX Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,227
|
|
|
|
N/A
|
|
|
US$
|
1,227
|
|
|
|
|
|
|
|
Consolidated Edison, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,219
|
|
|
|
N/A
|
|
|
US$
|
1,219
|
|
|
|
|
|
|
|
American Airlines
2013-2
|
|
|
|
|
|
|
|
|
|
US$
|
1,214
|
|
|
|
N/A
|
|
|
US$
|
1,214
|
|
|
|
|
|
|
|
UBS Group Funding (Switzerland) AG
|
|
|
|
|
|
|
|
|
|
US$
|
1,203
|
|
|
|
N/A
|
|
|
US$
|
1,203
|
|
|
|
|
|
|
|
Banque Fed Cred Mutuel
|
|
|
|
|
|
|
|
|
|
US$
|
1,176
|
|
|
|
N/A
|
|
|
US$
|
1,176
|
|
|
|
|
|
|
|
ONEOK Partners LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,156
|
|
|
|
N/A
|
|
|
US$
|
1,156
|
|
|
|
|
|
|
|
Corning Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,143
|
|
|
|
N/A
|
|
|
US$
|
1,143
|
|
|
|
|
|
|
|
Public Service Enterprise Group Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,143
|
|
|
|
N/A
|
|
|
US$
|
1,143
|
|
|
|
|
|
|
|
KfW
|
|
|
|
|
|
|
|
|
|
US$
|
1,139
|
|
|
|
N/A
|
|
|
US$
|
1,139
|
|
|
|
|
|
|
|
Everett SpinCo, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,124
|
|
|
|
N/A
|
|
|
US$
|
1,124
|
|
|
|
|
|
|
|
ERP Operating LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,122
|
|
|
|
N/A
|
|
|
US$
|
1,122
|
|
|
|
|
|
|
|
Berkshire Hathaway Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,119
|
|
|
|
N/A
|
|
|
US$
|
1,119
|
|
|
|
|
|
|
|
Medtronic Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,098
|
|
|
|
N/A
|
|
|
US$
|
1,098
|
|
|
|
|
|
|
|
Wesfarmers Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
1,096
|
|
|
|
N/A
|
|
|
US$
|
1,096
|
|
|
|
|
|
|
|
Marsh & Mclennan Cos Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,090
|
|
|
|
N/A
|
|
|
US$
|
1,090
|
|
|
|
|
|
|
|
International Paper Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,086
|
|
|
|
N/A
|
|
|
US$
|
1,086
|
|
|
|
|
|
|
|
Cigna Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
1,077
|
|
|
|
N/A
|
|
|
US$
|
1,077
|
|
|
|
|
|
|
|
BNP Paribas
|
|
|
|
|
|
|
|
|
|
US$
|
1,069
|
|
|
|
N/A
|
|
|
US$
|
1,069
|
|
|
|
|
|
|
|
Merck & Co Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,057
|
|
|
|
N/A
|
|
|
US$
|
1,057
|
|
|
|
|
|
|
|
EOG Resources, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,055
|
|
|
|
N/A
|
|
|
US$
|
1,055
|
|
|
|
|
|
|
|
Lincoln National Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,047
|
|
|
|
N/A
|
|
|
US$
|
1,047
|
|
|
|
|
|
|
|
Berkshire Hathaway Energy Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,039
|
|
|
|
N/A
|
|
|
US$
|
1,039
|
|
|
|
|
|
|
|
Realty Income Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,031
|
|
|
|
N/A
|
|
|
US$
|
1,031
|
|
|
|
|
|
|
|
Statoil ASA
|
|
|
|
|
|
|
|
|
|
US$
|
1,024
|
|
|
|
N/A
|
|
|
US$
|
1,024
|
|
|
|
|
|
|
|
Amazon.com Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,020
|
|
|
|
N/A
|
|
|
US$
|
1,020
|
|
|
|
|
|
|
|
Altera Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,015
|
|
|
|
N/A
|
|
|
US$
|
1,015
|
|
|
|
|
|
|
|
HP Enterprise Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,012
|
|
|
|
N/A
|
|
|
US$
|
1,012
|
|
|
|
|
|
|
|
Home Depot Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,008
|
|
|
|
N/A
|
|
|
US$
|
1,008
|
|
|
|
|
|
|
|
Manuf & Traders Trust Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,007
|
|
|
|
N/A
|
|
|
US$
|
1,007
|
|
|
|
|
|
|
|
John Deere Capital Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,006
|
|
|
|
N/A
|
|
|
US$
|
1,006
|
|
|
|
|
|
|
|
Harley-Davidson Financial Services, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,005
|
|
|
|
N/A
|
|
|
US$
|
1,005
|
|
|
|
|
|
|
|
Macquarie Bank Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
1,004
|
|
|
|
N/A
|
|
|
US$
|
1,004
|
|
|
|
|
|
|
|
Nisource Finance Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
993
|
|
|
|
N/A
|
|
|
US$
|
993
|
|
|
|
|
|
|
|
Georgia-Pacific LLC
|
|
|
|
|
|
|
|
|
|
US$
|
989
|
|
|
|
N/A
|
|
|
US$
|
989
|
|
|
|
|
|
|
|
National Retail Properties, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
979
|
|
|
|
N/A
|
|
|
US$
|
979
|
|
|
|
|
|
|
|
Duke Realty LP
|
|
|
|
|
|
|
|
|
|
US$
|
970
|
|
|
|
N/A
|
|
|
US$
|
970
|
|
|
|
|
|
|
|
Texas Eastern Transmission, LP
|
|
|
|
|
|
|
|
|
|
US$
|
968
|
|
|
|
N/A
|
|
|
US$
|
968
|
|
|
|
|
|
|
|
Duke Energy Progress Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
957
|
|
|
|
N/A
|
|
|
US$
|
957
|
|
|
|
|
|
|
|
Exxon Mobil Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
953
|
|
|
|
N/A
|
|
|
US$
|
953
|
|
|
|
|
|
|
|
Glaxosmithkline Cap. Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
942
|
|
|
|
N/A
|
|
|
US$
|
942
|
|
|
|
|
|
|
|
PPL Capital Funding, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
932
|
|
|
|
N/A
|
|
|
US$
|
932
|
|
|
|
|
|
|
|
Southern Electric Generating Company
|
|
|
|
|
|
|
|
|
|
US$
|
906
|
|
|
|
N/A
|
|
|
US$
|
906
|
|
|
|
|
|
|
|
Lockheed Martin Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
902
|
|
|
|
N/A
|
|
|
US$
|
902
|
|
|
|
|
|
(Continued)
- 51 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
CNOOC Finance (2011) Ltd.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
890
|
|
|
|
N/A
|
|
|
US$
|
890
|
|
|
|
|
|
|
|
Federal Realty Invs Trust
|
|
|
|
|
|
|
|
|
|
US$
|
878
|
|
|
|
N/A
|
|
|
US$
|
878
|
|
|
|
|
|
|
|
Mastercard Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
856
|
|
|
|
N/A
|
|
|
US$
|
856
|
|
|
|
|
|
|
|
Metlife Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
850
|
|
|
|
N/A
|
|
|
US$
|
850
|
|
|
|
|
|
|
|
Alterra Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
844
|
|
|
|
N/A
|
|
|
US$
|
844
|
|
|
|
|
|
|
|
Nucor Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
837
|
|
|
|
N/A
|
|
|
US$
|
837
|
|
|
|
|
|
|
|
Huntington Bancshares
|
|
|
|
|
|
|
|
|
|
US$
|
828
|
|
|
|
N/A
|
|
|
US$
|
828
|
|
|
|
|
|
|
|
AXIS Specialty Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
825
|
|
|
|
N/A
|
|
|
US$
|
825
|
|
|
|
|
|
|
|
Pacific LifeCorp
|
|
|
|
|
|
|
|
|
|
US$
|
821
|
|
|
|
N/A
|
|
|
US$
|
821
|
|
|
|
|
|
|
|
Bank Of Montreal
|
|
|
|
|
|
|
|
|
|
US$
|
815
|
|
|
|
N/A
|
|
|
US$
|
815
|
|
|
|
|
|
|
|
Aon PLC
|
|
|
|
|
|
|
|
|
|
US$
|
813
|
|
|
|
N/A
|
|
|
US$
|
813
|
|
|
|
|
|
|
|
Societe Generale Group
|
|
|
|
|
|
|
|
|
|
US$
|
807
|
|
|
|
N/A
|
|
|
US$
|
807
|
|
|
|
|
|
|
|
Manulife Financial Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
804
|
|
|
|
N/A
|
|
|
US$
|
804
|
|
|
|
|
|
|
|
State Grid Overseas Investment Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
797
|
|
|
|
N/A
|
|
|
US$
|
797
|
|
|
|
|
|
|
|
Spectra Energy Partners, LP
|
|
|
|
|
|
|
|
|
|
US$
|
790
|
|
|
|
N/A
|
|
|
US$
|
790
|
|
|
|
|
|
|
|
Cox Communications, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
785
|
|
|
|
N/A
|
|
|
US$
|
785
|
|
|
|
|
|
|
|
Sinopec Capital (2013) Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
778
|
|
|
|
N/A
|
|
|
US$
|
778
|
|
|
|
|
|
|
|
CMS Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
764
|
|
|
|
N/A
|
|
|
US$
|
764
|
|
|
|
|
|
|
|
Crown Castle Towers LLC
|
|
|
|
|
|
|
|
|
|
US$
|
758
|
|
|
|
N/A
|
|
|
US$
|
758
|
|
|
|
|
|
|
|
Norfolk Southern Railway Co.
|
|
|
|
|
|
|
|
|
|
US$
|
735
|
|
|
|
N/A
|
|
|
US$
|
735
|
|
|
|
|
|
|
|
Coca Cola Femsa S.A.B. de C.V.
|
|
|
|
|
|
|
|
|
|
US$
|
734
|
|
|
|
N/A
|
|
|
US$
|
734
|
|
|
|
|
|
|
|
DTE Electric Company
|
|
|
|
|
|
|
|
|
|
US$
|
719
|
|
|
|
N/A
|
|
|
US$
|
719
|
|
|
|
|
|
|
|
Baker Hughes Incorporated
|
|
|
|
|
|
|
|
|
|
US$
|
717
|
|
|
|
N/A
|
|
|
US$
|
717
|
|
|
|
|
|
|
|
Regions Financial Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
712
|
|
|
|
N/A
|
|
|
US$
|
712
|
|
|
|
|
|
|
|
Total Capital International S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
705
|
|
|
|
N/A
|
|
|
US$
|
705
|
|
|
|
|
|
|
|
Scentre Group
|
|
|
|
|
|
|
|
|
|
US$
|
702
|
|
|
|
N/A
|
|
|
US$
|
702
|
|
|
|
|
|
|
|
Rochester Gas & Electric
|
|
|
|
|
|
|
|
|
|
US$
|
701
|
|
|
|
N/A
|
|
|
US$
|
701
|
|
|
|
|
|
|
|
TTX Co.
|
|
|
|
|
|
|
|
|
|
US$
|
700
|
|
|
|
N/A
|
|
|
US$
|
700
|
|
|
|
|
|
|
|
Continental Airlines Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
697
|
|
|
|
N/A
|
|
|
US$
|
697
|
|
|
|
|
|
|
|
Cargill, Incorporated
|
|
|
|
|
|
|
|
|
|
US$
|
693
|
|
|
|
N/A
|
|
|
US$
|
693
|
|
|
|
|
|
|
|
Entergy Louisiana, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
669
|
|
|
|
N/A
|
|
|
US$
|
669
|
|
|
|
|
|
|
|
Ohio Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
668
|
|
|
|
N/A
|
|
|
US$
|
668
|
|
|
|
|
|
|
|
Capital One Financial Co.
|
|
|
|
|
|
|
|
|
|
US$
|
658
|
|
|
|
N/A
|
|
|
US$
|
658
|
|
|
|
|
|
|
|
Grupo Bimbo, S.A.B. de C.V.
|
|
|
|
|
|
|
|
|
|
US$
|
638
|
|
|
|
N/A
|
|
|
US$
|
638
|
|
|
|
|
|
|
|
Liberty Property LP
|
|
|
|
|
|
|
|
|
|
US$
|
638
|
|
|
|
N/A
|
|
|
US$
|
638
|
|
|
|
|
|
|
|
Potash Corp Saskatchewan Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
636
|
|
|
|
N/A
|
|
|
US$
|
636
|
|
|
|
|
|
|
|
Life Technologies Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
624
|
|
|
|
N/A
|
|
|
US$
|
624
|
|
|
|
|
|
|
|
ABC Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
617
|
|
|
|
N/A
|
|
|
US$
|
617
|
|
|
|
|
|
|
|
Dr Pepper Snapple Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
614
|
|
|
|
N/A
|
|
|
US$
|
614
|
|
|
|
|
|
|
|
Altria Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
608
|
|
|
|
N/A
|
|
|
US$
|
608
|
|
|
|
|
|
|
|
Kimberly Clark Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
603
|
|
|
|
N/A
|
|
|
US$
|
603
|
|
|
|
|
|
|
|
Bayer US Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
600
|
|
|
|
N/A
|
|
|
US$
|
600
|
|
|
|
|
|
|
|
Host Hotels & Resorts, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
592
|
|
|
|
N/A
|
|
|
US$
|
592
|
|
|
|
|
|
|
|
CenterPoint Energy Resources
|
|
|
|
|
|
|
|
|
|
US$
|
589
|
|
|
|
N/A
|
|
|
US$
|
589
|
|
|
|
|
|
|
|
MUFG Union Bank, N.A.
|
|
|
|
|
|
|
|
|
|
US$
|
586
|
|
|
|
N/A
|
|
|
US$
|
586
|
|
|
|
|
|
|
|
AvalonBay Communities Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
581
|
|
|
|
N/A
|
|
|
US$
|
581
|
|
|
|
|
|
|
|
AXIS Specialty Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
580
|
|
|
|
N/A
|
|
|
US$
|
580
|
|
|
|
|
|
|
|
Bunge Limited Finance Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
567
|
|
|
|
N/A
|
|
|
US$
|
567
|
|
|
|
|
|
|
|
Boston Properties LP
|
|
|
|
|
|
|
|
|
|
US$
|
562
|
|
|
|
N/A
|
|
|
US$
|
562
|
|
|
|
|
|
|
|
Nordstrom Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
551
|
|
|
|
N/A
|
|
|
US$
|
551
|
|
|
|
|
|
|
|
Fédération des caisses
|
|
|
|
|
|
|
|
|
|
US$
|
550
|
|
|
|
N/A
|
|
|
US$
|
550
|
|
|
|
|
|
|
|
Digital Realty Trust, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
543
|
|
|
|
N/A
|
|
|
US$
|
543
|
|
|
|
|
|
|
|
Mcdonalds Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
542
|
|
|
|
N/A
|
|
|
US$
|
542
|
|
|
|
|
|
(Continued)
- 52 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Prudential Financial Inc.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
540
|
|
|
|
N/A
|
|
|
US$
|
540
|
|
|
|
|
|
|
|
Brambles USA Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
540
|
|
|
|
N/A
|
|
|
US$
|
540
|
|
|
|
|
|
|
|
Southwestern Electric Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
538
|
|
|
|
N/A
|
|
|
US$
|
538
|
|
|
|
|
|
|
|
OReilly Automotive Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
537
|
|
|
|
N/A
|
|
|
US$
|
537
|
|
|
|
|
|
|
|
TD Ameritrade Holding Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
531
|
|
|
|
N/A
|
|
|
US$
|
531
|
|
|
|
|
|
|
|
American Express Co.
|
|
|
|
|
|
|
|
|
|
US$
|
525
|
|
|
|
N/A
|
|
|
US$
|
525
|
|
|
|
|
|
|
|
Burlington Northern Santa Fe Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
520
|
|
|
|
N/A
|
|
|
US$
|
520
|
|
|
|
|
|
|
|
Inter-American Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
507
|
|
|
|
N/A
|
|
|
US$
|
507
|
|
|
|
|
|
|
|
PSEG Power LLC
|
|
|
|
|
|
|
|
|
|
US$
|
503
|
|
|
|
N/A
|
|
|
US$
|
503
|
|
|
|
|
|
|
|
CBS Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
502
|
|
|
|
N/A
|
|
|
US$
|
502
|
|
|
|
|
|
|
|
Halliburton Co.
|
|
|
|
|
|
|
|
|
|
US$
|
501
|
|
|
|
N/A
|
|
|
US$
|
501
|
|
|
|
|
|
|
|
Narragansett Electric
|
|
|
|
|
|
|
|
|
|
US$
|
477
|
|
|
|
N/A
|
|
|
US$
|
477
|
|
|
|
|
|
|
|
Comerica Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
474
|
|
|
|
N/A
|
|
|
US$
|
474
|
|
|
|
|
|
|
|
Canadian Pacific Railway Company
|
|
|
|
|
|
|
|
|
|
US$
|
451
|
|
|
|
N/A
|
|
|
US$
|
451
|
|
|
|
|
|
|
|
Nationwide Building Society
|
|
|
|
|
|
|
|
|
|
US$
|
442
|
|
|
|
N/A
|
|
|
US$
|
442
|
|
|
|
|
|
|
|
Valero Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
440
|
|
|
|
N/A
|
|
|
US$
|
440
|
|
|
|
|
|
|
|
Blackstone Holdings Finance Co., LLC
|
|
|
|
|
|
|
|
|
|
US$
|
425
|
|
|
|
N/A
|
|
|
US$
|
425
|
|
|
|
|
|
|
|
Woolworths Limited
|
|
|
|
|
|
|
|
|
|
US$
|
418
|
|
|
|
N/A
|
|
|
US$
|
418
|
|
|
|
|
|
|
|
Conocophillips Company
|
|
|
|
|
|
|
|
|
|
US$
|
399
|
|
|
|
N/A
|
|
|
US$
|
399
|
|
|
|
|
|
|
|
Volkswagen Group of America, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
399
|
|
|
|
N/A
|
|
|
US$
|
399
|
|
|
|
|
|
|
|
Aon Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
396
|
|
|
|
N/A
|
|
|
US$
|
396
|
|
|
|
|
|
|
|
First Niagara Financial Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
392
|
|
|
|
N/A
|
|
|
US$
|
392
|
|
|
|
|
|
|
|
Nationwide Financial Service, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
381
|
|
|
|
N/A
|
|
|
US$
|
381
|
|
|
|
|
|
|
|
Deutsche Bank AG
|
|
|
|
|
|
|
|
|
|
US$
|
352
|
|
|
|
N/A
|
|
|
US$
|
352
|
|
|
|
|
|
|
|
Barclays Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
294
|
|
|
|
N/A
|
|
|
US$
|
294
|
|
|
|
|
|
|
|
BAE Systems Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
293
|
|
|
|
N/A
|
|
|
US$
|
293
|
|
|
|
|
|
|
|
Amphenol Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
290
|
|
|
|
N/A
|
|
|
US$
|
290
|
|
|
|
|
|
|
|
EMD Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
280
|
|
|
|
N/A
|
|
|
US$
|
280
|
|
|
|
|
|
|
|
Mattel Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
269
|
|
|
|
N/A
|
|
|
US$
|
269
|
|
|
|
|
|
|
|
General Electric Co.
|
|
|
|
|
|
|
|
|
|
US$
|
256
|
|
|
|
N/A
|
|
|
US$
|
256
|
|
|
|
|
|
|
|
Nomura Holdings Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
253
|
|
|
|
N/A
|
|
|
US$
|
253
|
|
|
|
|
|
|
|
NBCUniversal Enterprise, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
251
|
|
|
|
N/A
|
|
|
US$
|
251
|
|
|
|
|
|
|
|
Bank of Nova Scotia
|
|
|
|
|
|
|
|
|
|
US$
|
246
|
|
|
|
N/A
|
|
|
US$
|
246
|
|
|
|
|
|
|
|
Kansas City Power & Light Company
|
|
|
|
|
|
|
|
|
|
US$
|
244
|
|
|
|
N/A
|
|
|
US$
|
244
|
|
|
|
|
|
|
|
Protective Life Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
236
|
|
|
|
N/A
|
|
|
US$
|
236
|
|
|
|
|
|
|
|
WestRock MWV, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
233
|
|
|
|
N/A
|
|
|
US$
|
233
|
|
|
|
|
|
|
|
Rolls Royce PLC
|
|
|
|
|
|
|
|
|
|
US$
|
224
|
|
|
|
N/A
|
|
|
US$
|
224
|
|
|
|
|
|
|
|
Assurant, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
211
|
|
|
|
N/A
|
|
|
US$
|
211
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
152,843
|
|
|
|
N/A
|
|
|
US$
|
154,667
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
US$
|
150,006
|
|
|
|
N/A
|
|
|
US$
|
151,515
|
|
|
|
|
|
|
|
Westpac Banking Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
100,000
|
|
|
|
N/A
|
|
|
US$
|
101,077
|
|
|
|
|
|
|
|
Goldman Sachs Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
100,000
|
|
|
|
N/A
|
|
|
US$
|
100,436
|
|
|
|
|
|
|
|
Commonwealth Bank of Australia
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,551
|
|
|
|
|
|
|
|
National Australia Bank
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,451
|
|
|
|
|
|
|
|
Bank of Nova Scotia
|
|
|
|
|
|
|
|
|
|
US$
|
49,984
|
|
|
|
N/A
|
|
|
US$
|
50,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury N/B
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
254,397
|
|
|
|
N/A
|
|
|
US$
|
254,397
|
|
|
|
|
|
|
|
Abu Dhabi Government International Bond
|
|
|
|
|
|
|
|
|
|
US$
|
3,465
|
|
|
|
N/A
|
|
|
US$
|
3,465
|
|
|
|
|
|
(Continued)
- 53 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal National Mortgage Association
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
355,833
|
|
|
|
N/A
|
|
|
US$
|
355,833
|
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
141,591
|
|
|
|
N/A
|
|
|
US$
|
141,591
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
|
|
|
|
|
|
|
|
US$
|
27,910
|
|
|
|
N/A
|
|
|
US$
|
27,910
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
|
|
|
|
|
|
|
|
US$
|
20,435
|
|
|
|
N/A
|
|
|
US$
|
20,435
|
|
|
|
|
|
|
|
Federal Home Loan Bank
|
|
|
|
|
|
|
|
|
|
US$
|
9,663
|
|
|
|
N/A
|
|
|
US$
|
9,663
|
|
|
|
|
|
|
|
Fhlmc Multifamily Structured PTC
|
|
|
|
|
|
|
|
|
|
US$
|
3,563
|
|
|
|
N/A
|
|
|
US$
|
3,563
|
|
|
|
|
|
|
|
Export Import Bank Korea
|
|
|
|
|
|
|
|
|
|
US$
|
3,008
|
|
|
|
N/A
|
|
|
US$
|
3,008
|
|
|
|
|
|
|
|
Province Of Quebec
|
|
|
|
|
|
|
|
|
|
US$
|
2,589
|
|
|
|
N/A
|
|
|
US$
|
2,589
|
|
|
|
|
|
|
|
Export Developmnt Canada
|
|
|
|
|
|
|
|
|
|
US$
|
2,003
|
|
|
|
N/A
|
|
|
US$
|
2,003
|
|
|
|
|
|
|
|
Federal Farm Credit Bank
|
|
|
|
|
|
|
|
|
|
US$
|
898
|
|
|
|
N/A
|
|
|
US$
|
898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Development Bank
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,148
|
|
|
|
|
|
|
|
Bank of China
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,146
|
|
|
|
|
|
|
|
China Construction Bank
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
50,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chase Issuance Trust
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
31,810
|
|
|
|
N/A
|
|
|
US$
|
31,810
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust
|
|
|
|
|
|
|
|
|
|
US$
|
27,854
|
|
|
|
N/A
|
|
|
US$
|
27,854
|
|
|
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
|
|
|
|
|
|
|
|
US$
|
27,177
|
|
|
|
N/A
|
|
|
US$
|
27,177
|
|
|
|
|
|
|
|
Discover Card Execution Note Trust
|
|
|
|
|
|
|
|
|
|
US$
|
26,658
|
|
|
|
N/A
|
|
|
US$
|
26,658
|
|
|
|
|
|
|
|
American Express Credit Account Master Trust
|
|
|
|
|
|
|
|
|
|
US$
|
24,241
|
|
|
|
N/A
|
|
|
US$
|
24,241
|
|
|
|
|
|
|
|
Bank of America Credit Card Trust
|
|
|
|
|
|
|
|
|
|
US$
|
19,482
|
|
|
|
N/A
|
|
|
US$
|
19,482
|
|
|
|
|
|
|
|
COMM Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
13,015
|
|
|
|
N/A
|
|
|
US$
|
13,015
|
|
|
|
|
|
|
|
GS Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
12,719
|
|
|
|
N/A
|
|
|
US$
|
12,719
|
|
|
|
|
|
|
|
Ford Credit Floorplan Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,968
|
|
|
|
N/A
|
|
|
US$
|
11,968
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,739
|
|
|
|
N/A
|
|
|
US$
|
11,739
|
|
|
|
|
|
|
|
Nissan Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,117
|
|
|
|
N/A
|
|
|
US$
|
11,117
|
|
|
|
|
|
|
|
Morgan Stanley Bank of America Merrill Lynch Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,025
|
|
|
|
N/A
|
|
|
US$
|
11,025
|
|
|
|
|
|
|
|
Hyundai Auto Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
10,681
|
|
|
|
N/A
|
|
|
US$
|
10,681
|
|
|
|
|
|
|
|
UBS-Barclays
Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
10,172
|
|
|
|
N/A
|
|
|
US$
|
10,172
|
|
|
|
|
|
|
|
Mercedes Benz Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
10,017
|
|
|
|
N/A
|
|
|
US$
|
10,017
|
|
|
|
|
|
|
|
GM Financial Automobile Leasing Trust
|
|
|
|
|
|
|
|
|
|
US$
|
9,978
|
|
|
|
N/A
|
|
|
US$
|
9,978
|
|
|
|
|
|
|
|
Nissan Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
9,273
|
|
|
|
N/A
|
|
|
US$
|
9,273
|
|
|
|
|
|
|
|
J.P. Morgan Chase Commercial Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
7,531
|
|
|
|
N/A
|
|
|
US$
|
7,531
|
|
|
|
|
|
|
|
Honda Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
7,520
|
|
|
|
N/A
|
|
|
US$
|
7,520
|
|
|
|
|
|
|
|
JPMBB Commercial Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,970
|
|
|
|
N/A
|
|
|
US$
|
6,970
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,767
|
|
|
|
N/A
|
|
|
US$
|
6,767
|
|
|
|
|
|
|
|
BMW Vehicle Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,565
|
|
|
|
N/A
|
|
|
US$
|
6,565
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,180
|
|
|
|
N/A
|
|
|
US$
|
6,180
|
|
|
|
|
|
|
|
Chesapeake Funding II LLC
|
|
|
|
|
|
|
|
|
|
US$
|
5,691
|
|
|
|
N/A
|
|
|
US$
|
5,691
|
|
|
|
|
|
|
|
Hyundai Auto Lease Securitization Trust
|
|
|
|
|
|
|
|
|
|
US$
|
5,259
|
|
|
|
N/A
|
|
|
US$
|
5,259
|
|
|
|
|
|
|
|
Citigroup Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
4,934
|
|
|
|
N/A
|
|
|
US$
|
4,934
|
|
|
|
|
|
|
|
Mercedes Benz Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
4,863
|
|
|
|
N/A
|
|
|
US$
|
4,863
|
|
|
|
|
|
|
|
Mercedes Benz Auto Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,698
|
|
|
|
N/A
|
|
|
US$
|
3,698
|
|
|
|
|
|
|
|
Wells Fargo Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,384
|
|
|
|
N/A
|
|
|
US$
|
3,384
|
|
|
|
|
|
|
|
Ford Credit Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,973
|
|
|
|
N/A
|
|
|
US$
|
2,973
|
|
|
|
|
|
|
|
Credit Suisse Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,861
|
|
|
|
N/A
|
|
|
US$
|
2,861
|
|
|
|
|
|
|
|
BMW Floorplan Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,442
|
|
|
|
N/A
|
|
|
US$
|
2,442
|
|
|
|
|
|
|
|
Morgan Stanley Capital I Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,186
|
|
|
|
N/A
|
|
|
US$
|
2,186
|
|
|
|
|
|
(Continued)
- 54 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
March 31, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
WF-RBS Commercial
Mortgage Trust
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
2,107
|
|
|
|
N/A
|
|
|
US$
|
2,107
|
|
|
|
|
|
|
|
Nissan Master Owner Trust Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,003
|
|
|
|
N/A
|
|
|
US$
|
2,003
|
|
|
|
|
|
|
|
Carmax Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,999
|
|
|
|
N/A
|
|
|
US$
|
1,999
|
|
|
|
|
|
|
|
Golden Credit Card Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,801
|
|
|
|
N/A
|
|
|
US$
|
1,801
|
|
|
|
|
|
|
|
Wheels SPV LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,706
|
|
|
|
N/A
|
|
|
US$
|
1,706
|
|
|
|
|
|
|
|
Enterprise Fleet Financing LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,079
|
|
|
|
N/A
|
|
|
US$
|
1,079
|
|
|
|
|
|
|
|
CFCRE Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,075
|
|
|
|
N/A
|
|
|
US$
|
1,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structure product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
50,000
|
|
|
|
N/A
|
|
|
US$
|
49,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNP Paribas New York Branch
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
3,000
|
|
|
|
N/A
|
|
|
US$
|
3,000
|
|
|
|
|
|
|
|
UBS AG, Stamford Branch
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
|
N/A
|
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
Societe Generale
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
|
N/A
|
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
Norinchukin Bank
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
|
N/A
|
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
LMA S.A. / LMA Americas LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,978
|
|
|
|
N/A
|
|
|
US$
|
1,978
|
|
|
|
|
|
|
|
Wells Fargo Bank NA
|
|
|
|
|
|
|
|
|
|
US$
|
1,000
|
|
|
|
N/A
|
|
|
US$
|
1,000
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ, Ltd., London
|
|
|
|
|
|
|
|
|
|
US$
|
1,000
|
|
|
|
N/A
|
|
|
US$
|
1,000
|
|
|
|
|
|
|
|
Svenska Handelsbanken AB (publ)
|
|
|
|
|
|
|
|
|
|
US$
|
891
|
|
|
|
N/A
|
|
|
US$
|
891
|
|
|
|
|
|
|
|
AXA Financial, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
886
|
|
|
|
N/A
|
|
|
US$
|
886
|
|
|
|
|
|
|
|
Societe Generale Group
|
|
|
|
|
|
|
|
|
|
US$
|
743
|
|
|
|
N/A
|
|
|
US$
|
743
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ, Ltd., NY
|
|
|
|
|
|
|
|
|
|
US$
|
723
|
|
|
|
N/A
|
|
|
US$
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primavera Capital Fund II L.P.
|
|
|
|
Financial assets carried at cost
|
|
|
|
|
|
US$
|
29,458
|
|
|
|
4
|
|
|
US$
|
29,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiquidLeds Lighting Corp.
|
|
|
|
Financial assets carried at cost
|
|
|
1,600
|
|
|
US$
|
800
|
|
|
|
11
|
|
|
US$
|
800
|
|
|
|
|
|
|
|
Xenio Corporation
|
|
|
|
|
|
|
435
|
|
|
US$
|
453
|
|
|
|
3
|
|
|
US$
|
453
|
|
|
|
|
|
|
|
Accton Wireless Broadband Corp.
|
|
|
|
|
|
|
2,249
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GTBF, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
1,154
|
|
|
US$
|
1,500
|
|
|
|
|
|
|
US$
|
1,500
|
|
|
|
|
|
|
|
Neoconix, Inc.
|
|
|
|
|
|
|
4,147
|
|
|
US$
|
170
|
|
|
|
|
|
|
US$
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF II
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RichWave Technology Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
744
|
|
|
US$
|
1,957
|
|
|
|
1
|
|
|
US$
|
1,957
|
|
|
|
|
|
|
|
Impinj, Inc.
|
|
|
|
|
|
|
42
|
|
|
US$
|
1,269
|
|
|
|
|
|
|
US$
|
1,269
|
|
|
|
|
|
|
|
Sentelic
|
|
|
|
Financial assets carried at cost
|
|
|
1,806
|
|
|
US$
|
2,607
|
|
|
|
8
|
|
|
US$
|
2,607
|
|
|
|
|
|
|
|
5V Technologies, Inc.
|
|
|
|
|
|
|
963
|
|
|
US$
|
2,168
|
|
|
|
2
|
|
|
US$
|
2,168
|
|
|
|
|
|
|
|
Aether Systems, Inc.
|
|
|
|
|
|
|
3,100
|
|
|
US$
|
339
|
|
|
|
30
|
|
|
US$
|
339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aquantia
|
|
|
|
Financial assets carried at cost
|
|
|
4,643
|
|
|
US$
|
4,441
|
|
|
|
2
|
|
|
US$
|
4,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ISDF
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
230
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ISDF II
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alchip Technologies Limited
|
|
|
|
Available-for-sale
financial assets
|
|
|
6,581
|
|
|
US$
|
10,683
|
|
|
|
11
|
|
|
US$
|
10,683
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
278
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sonics, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
264
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth Fund
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Innovium, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
221
|
|
|
US$
|
370
|
|
|
|
|
|
|
US$
|
370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Innovium, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
230
|
|
|
US$
|
384
|
|
|
|
|
|
|
US$
|
384
|
|
|
|
|
|
(Concluded)
- 55 -
TABLE 4
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE
PAID-IN
CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
Name
|
|
Marketable
Securities
Type and Name
|
|
Financial Statement
Account
|
|
Counter-party
|
|
|
Nature of
Relationship
|
|
|
Beginning Balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Ending Balance (Note 1)
|
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
Carrying
Value
|
|
|
Gain/Loss on
Disposal
|
|
|
Shares/Units
(In Thousands)
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hon Hai Precision Ind. Co., Ltd.
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
400,250
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
$
|
400,000
|
|
|
$
|
400,000
|
|
|
$
|
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
|
|
|
|
865
|
|
|
|
8,628,176
|
|
|
|
170
|
|
|
|
1,695,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,035
|
|
|
|
10,323,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,237
|
|
|
|
|
|
|
US$
|
12,049
|
|
|
|
|
|
|
US$
|
1,281
|
|
|
US$
|
1,297
|
|
|
US$
|
(16
|
)
|
|
|
|
|
|
US$
|
22,124
|
|
|
|
Goldman Sachs Group Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
7,390
|
|
|
|
|
|
|
US$
|
11,755
|
|
|
|
|
|
|
US$
|
1,900
|
|
|
US$
|
1,976
|
|
|
US$
|
(76
|
)
|
|
|
|
|
|
US$
|
17,289
|
|
|
|
Microsoft Corp.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
2,905
|
|
|
|
|
|
|
US$
|
11,279
|
|
|
|
|
|
|
US$
|
1,001
|
|
|
US$
|
999
|
|
|
US$
|
2
|
|
|
|
|
|
|
US$
|
13,288
|
|
|
|
Aetna Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,157
|
|
|
US$
|
10,069
|
|
|
US$
|
88
|
|
|
|
|
|
|
US$
|
1,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury N/B
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
195,285
|
|
|
|
|
|
|
US$
|
122,815
|
|
|
|
|
|
|
US$
|
142,835
|
|
|
US$
|
143,667
|
|
|
US$
|
(832
|
)
|
|
|
|
|
|
US$
|
181,590
|
|
|
|
US Treasury Floating Rate Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
30,756
|
|
|
|
|
|
|
US$
|
49,760
|
|
|
|
|
|
|
US$
|
41,355
|
|
|
US$
|
41,330
|
|
|
US$
|
25
|
|
|
|
|
|
|
US$
|
39,193
|
|
|
|
Treasury Bill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
18,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
18,493
|
|
|
|
Treasury Inflation-Indexed N/B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
19,349
|
|
|
|
|
|
|
US$
|
7,972
|
|
|
|
|
|
|
US$
|
16,995
|
|
|
US$
|
17,093
|
|
|
US$
|
(98
|
)
|
|
|
|
|
|
US$
|
10,360
|
|
|
|
WI Treasury Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
22,492
|
|
|
|
|
|
|
US$
|
22,498
|
|
|
US$
|
22,492
|
|
|
US$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FNMA Pool AL9718
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,828
|
|
|
|
FNMA TBA 30 Yr 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
14,814
|
|
|
|
|
|
|
US$
|
11,965
|
|
|
US$
|
11,949
|
|
|
US$
|
16
|
|
|
|
|
|
|
US$
|
2,875
|
|
|
|
GNMA II TBA 30 Yr 3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
21,020
|
|
|
|
|
|
|
US$
|
19,824
|
|
|
US$
|
19,855
|
|
|
US$
|
(31
|
)
|
|
|
|
|
|
US$
|
1,182
|
|
|
|
FNMA TBA 30 Yr 4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
16,703
|
|
|
|
|
|
|
US$
|
15,933
|
|
|
US$
|
15,954
|
|
|
US$
|
(21
|
)
|
|
|
|
|
|
US$
|
751
|
|
|
|
GNMA II TBA 30 Yr 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
12,544
|
|
|
|
|
|
|
US$
|
12,541
|
|
|
US$
|
12,544
|
|
|
US$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
17,885
|
|
|
|
|
|
|
US$
|
17,889
|
|
|
US$
|
17,885
|
|
|
US$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
29,730
|
|
|
|
|
|
|
US$
|
29,719
|
|
|
US$
|
29,730
|
|
|
US$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
39,626
|
|
|
|
|
|
|
US$
|
200
|
|
|
|
|
|
|
US$
|
12,703
|
|
|
US$
|
12,778
|
|
|
US$
|
(75
|
)
|
|
|
|
|
|
US$
|
27,177
|
|
Note 1:
|
The ending balance includes the amortization of premium/discount on bonds investments, share of profits/losses of investees and other related adjustment.
|
- 56 -
TABLE 5
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE
PAID-IN
CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Types of
Property
|
|
Transaction Date
|
|
Transaction
Amount
(Foreign
Currencies in
Thousands)
|
|
|
Payment Term
|
|
Counter-party
|
|
Nature of
Relationships
|
|
Prior Transaction of Related Counter-party
|
|
Price
Reference
|
|
Purpose of
Acquisition
|
|
Other
Terms
|
|
|
|
|
|
|
|
Owner
|
|
Relationships
|
|
Transfer Date
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
Fab
|
|
January 18, 2017
|
|
$
|
352,766
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
TASA Construction Corporation
|
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
- 57 -
TABLE 6
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE
PAID-IN
CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Details
|
|
Abnormal Transaction
|
|
Notes/Accounts
Payable or
Receivable
|
|
|
|
|
Company Name
|
|
Related Party
|
|
Nature of Relationships
|
|
Purchases/Sales
|
|
Amount
(Foreign Currencies
in Thousands)
|
|
|
% to
Total
|
|
|
Payment Terms
|
|
Unit Price
|
|
Payment Terms
|
|
Ending Balance
(Foreign
Currencies in
Thousands)
|
|
|
% to
Total
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Subsidiary
|
|
Sales
|
|
$
|
153,515,192
|
|
|
|
64
|
|
|
Net 30 days from invoice date (Note)
|
|
|
|
Note
|
|
$
|
70,978,949
|
|
|
|
66
|
|
|
|
|
|
|
|
GUC
|
|
Associate
|
|
Sales
|
|
|
1,279,698
|
|
|
|
1
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
456,331
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
Subsidiary
|
|
Purchases
|
|
|
5,446,644
|
|
|
|
27
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(1,838,200
|
)
|
|
|
7
|
|
|
|
|
|
|
|
WaferTech
|
|
Indirect subsidiary
|
|
Purchases
|
|
|
2,133,418
|
|
|
|
11
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(1,352,078
|
)
|
|
|
5
|
|
|
|
|
|
|
|
VIS
|
|
Associate
|
|
Purchases
|
|
|
1,634,239
|
|
|
|
8
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(604,897
|
)
|
|
|
2
|
|
|
|
|
|
|
|
SSMC
|
|
Associate
|
|
Purchases
|
|
|
993,829
|
|
|
|
5
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(382,806
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC North America
|
|
GUC
|
|
Associate of TSMC
|
|
Sales
|
|
(US$
|
225,382
7,233
|
)
|
|
|
|
|
|
Net 30 days from invoice date
|
|
|
|
|
|
(US$
|
38,508
1,268
|
)
|
|
|
|
|
|
|
|
|
Note:
|
The tenor is 30 days from TSMCs invoice date or determined by the payment terms granted to its clients by TSMC North America.
|
- 58 -
TABLE 7
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE
PAID-IN
CAPITAL
MARCH 31, 2017
(Amounts in Thousands of New
Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Related Party
|
|
Nature of Relationships
|
|
Ending Balance
(Foreign Currencies
in Thousands)
|
|
|
Turnover Days
(Note 1)
|
|
Overdue
|
|
Amounts Received
in Subsequent
Period
|
|
|
Allowance for
Bad Debts
|
|
|
|
|
|
|
Amount
|
|
|
Action Taken
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Subsidiary
|
|
$
|
71,608,125
|
|
|
47
|
|
$
|
4,563,570
|
|
|
|
|
$
|
5,186,060
|
|
|
$
|
|
|
|
|
GUC
|
|
Associate
|
|
|
456,477
|
|
|
49
|
|
|
210,139
|
|
|
|
|
|
213,007
|
|
|
|
|
|
TSMC Global
|
|
TSMC
|
|
Parent company
|
|
(US$
|
6,074,182
200,006
|
)
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
TSMC
|
|
Parent company
|
|
(RMB
|
1,838,200
417,121
|
)
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing
|
|
The same parent company
|
|
(RMB
|
5,522,751
1,253,205
|
)
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Technology
|
|
TSMC
|
|
The ultimate parent of the Company
|
|
(US$
|
212,582
7,000
|
)
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WaferTech
|
|
TSMC
|
|
The ultimate parent of the Company
|
|
(US$
|
1,352,078
44,520
|
)
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
|
The calculation of turnover days excludes other receivables from related parties.
|
Note 2:
|
The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.
|
- 59 -
TABLE 8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No.
|
|
Company Name
|
|
Counter Party
|
|
Nature of
Relationship
(Note 1)
|
|
Intercompany Transactions
|
|
|
|
|
Financial Statements Item
|
|
Amount
|
|
|
Terms
(Note 2)
|
|
Percentage of
Consolidated Net Revenue
or Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0
|
|
TSMC
|
|
TSMC North America
|
|
1
|
|
Net revenue from sale of goods
|
|
$
|
153,515,192
|
|
|
|
|
66%
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
|
70,978,949
|
|
|
|
|
4%
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
|
629,176
|
|
|
|
|
|
|
|
|
|
TSMC Europe
|
|
1
|
|
Marketing expenses - commission
|
|
|
106,912
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
1
|
|
Short-term loans
|
|
|
6,074,000
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
1
|
|
Purchases
|
|
|
5,446,644
|
|
|
|
|
2%
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,838,200
|
|
|
|
|
|
|
|
|
|
TSMC Technology
|
|
1
|
|
Research and development expenses
|
|
|
433,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
212,582
|
|
|
|
|
|
|
|
|
|
WaferTech
|
|
1
|
|
Purchases
|
|
|
2,133,418
|
|
|
|
|
1%
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,352,078
|
|
|
|
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
3
|
|
Other receivables from related parties
|
|
|
5,522,751
|
|
|
|
|
|
Note 1:
|
No. 1 represents the transactions from parent company to subsidiary.
|
|
No. 3 represents the transactions between subsidiaries.
|
Note 2:
|
The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual
agreements.
|
- 60 -
TABLE 9
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN
MAINLAND CHINA)
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Company
|
|
Investee
Company
|
|
Location
|
|
Main Businesses
and Products
|
|
Original Investment Amount
|
|
|
Balance as of March 31, 2017
|
|
|
Net Income
(Losses) of the
Investee
(Foreign
Currencies in
Thousands)
|
|
|
Share of
Profits/Losses
of Investee
(Note
1)
(Foreign
Currencies in
Thousands)
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
(Foreign
Currencies in
Thousands)
|
|
|
December 31,
2016
(Foreign
Currencies in
Thousands)
|
|
|
Shares (In
Thousands)
|
|
|
Percentage of
Ownership
|
|
|
Carrying
Value
(Foreign
Currencies in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC Global
|
|
Tortola, British Virgin Islands
|
|
Investment activities
|
|
$
|
232,207,219
|
|
|
$
|
232,207,219
|
|
|
|
7
|
|
|
|
100
|
|
|
$
|
251,749,192
|
|
|
$
|
1,032,344
|
|
|
$
|
1,032,344
|
|
|
Subsidiary
|
|
|
TSMC Partners
|
|
Tortola, British Virgin Islands
|
|
Investing in companies involved in the design, manufacture, and other related business in the
semiconductor industry and other investment activities
|
|
|
31,456,130
|
|
|
|
31,456,130
|
|
|
|
988,268
|
|
|
|
100
|
|
|
|
49,417,255
|
|
|
|
509,710
|
|
|
|
509,710
|
|
|
Subsidiary
|
|
|
VIS
|
|
Hsin-Chu,
Taiwan
|
|
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and
other semiconductor devices and the manufacturing and design service of masks
|
|
|
10,180,677
|
|
|
|
10,180,677
|
|
|
|
464,223
|
|
|
|
28
|
|
|
|
9,072,232
|
|
|
|
1,150,449
|
|
|
|
324,584
|
|
|
Associate
|
|
|
SSMC
|
|
Singapore
|
|
Manufacturing and selling of integrated circuits and other semiconductor devices
|
|
|
5,120,028
|
|
|
|
5,120,028
|
|
|
|
314
|
|
|
|
39
|
|
|
|
7,153,964
|
|
|
|
1,014,977
|
|
|
|
393,709
|
|
|
Associate
|
|
|
VisEra Tech
|
|
Hsin-Chu,
Taiwan
|
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing,
manufacturing, selling, packaging and testing of color filter
|
|
|
5,005,171
|
|
|
|
5,005,171
|
|
|
|
253,120
|
|
|
|
87
|
|
|
|
5,198,832
|
|
|
|
(41,467
|
)
|
|
|
(36,051
|
)
|
|
Subsidiary
|
|
|
TSMC North America
|
|
San Jose, California, U.S.A
|
|
Selling and marketing of integrated circuits and other semiconductor devices
|
|
|
333,718
|
|
|
|
333,718
|
|
|
|
11,000
|
|
|
|
100
|
|
|
|
4,156,471
|
|
|
|
64,340
|
|
|
|
64,340
|
|
|
Subsidiary
|
|
|
Xintec
|
|
Taoyuan, Taiwan
|
|
Wafer level chip size packaging and wafer level post passivation interconnection service
|
|
|
1,988,317
|
|
|
|
1,988,317
|
|
|
|
111,282
|
|
|
|
41
|
|
|
|
2,488,903
|
|
|
|
(248,164
|
)
|
|
|
(101,299
|
)
|
|
Associate
|
|
|
GUC
|
|
Hsin-Chu,
Taiwan
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
|
386,568
|
|
|
|
386,568
|
|
|
|
46,688
|
|
|
|
35
|
|
|
|
1,224,963
|
|
|
|
142,986
|
|
|
|
49,816
|
|
|
Associate
|
|
|
VTAF II
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
608,562
|
|
|
|
608,562
|
|
|
|
|
|
|
|
98
|
|
|
|
462,515
|
|
|
|
39,563
|
|
|
|
38,772
|
|
|
Subsidiary
|
|
|
TSMC Europe
|
|
Amsterdam, the Netherlands
|
|
Customer service and supporting activities
|
|
|
15,749
|
|
|
|
15,749
|
|
|
|
|
|
|
|
100
|
|
|
|
346,161
|
|
|
|
10,096
|
|
|
|
10,096
|
|
|
Subsidiary
|
|
|
VTAF III
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
1,355,417
|
|
|
|
1,355,417
|
|
|
|
|
|
|
|
98
|
|
|
|
193,319
|
|
|
|
(15,889
|
)
|
|
|
(15,571
|
)
|
|
Subsidiary
|
|
|
TSMC Japan
|
|
Yokohama, Japan
|
|
Customer service and supporting activities
|
|
|
83,760
|
|
|
|
83,760
|
|
|
|
6
|
|
|
|
100
|
|
|
|
132,315
|
|
|
|
1,432
|
|
|
|
1,432
|
|
|
Subsidiary
|
|
|
TSMC Korea
|
|
Seoul, Korea
|
|
Customer service and supporting activities
|
|
|
13,656
|
|
|
|
13,656
|
|
|
|
80
|
|
|
|
100
|
|
|
|
36,769
|
|
|
|
528
|
|
|
|
528
|
|
|
Subsidiary
|
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new
start-up
technology companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
|
|
TSMC Solar Europe GmbH
|
|
Hamburg, Germany
|
|
Selling of solar related products and providing customer service
|
|
|
25,266
|
|
|
|
25,266
|
|
|
|
1
|
|
|
|
100
|
|
|
|
(6,149
|
)
|
|
|
(135
|
)
|
|
|
(135
|
)
|
|
Subsidiary
|
(Continued)
- 61 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Company
|
|
Investee
Company
|
|
Location
|
|
Main Businesses
and Products
|
|
Original Investment Amount
|
|
|
Balance as of March 31, 2017
|
|
|
Net Income
(Losses) of the
Investee
(Foreign
Currencies in
Thousands)
|
|
|
Share of
Profits/Losses
of Investee
(Note
1)
(Foreign
Currencies in
Thousands)
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
(Foreign
Currencies in
Thousands)
|
|
|
December 31,
2016
(Foreign
Currencies in
Thousands)
|
|
|
Shares (In
Thousands)
|
|
|
Percentage of
Ownership
|
|
|
Carrying
Value
(Foreign
Currencies in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners
|
|
TSMC Development
|
|
Delaware, U.S.A
|
|
Investing in companies involved in the manufacturing related business in the semiconductor
industry
|
|
$
(US$
|
17,825,332
586,939
|
)
|
|
$
(US$
|
17,825,332
586,939
|
)
|
|
|
|
|
|
|
100
|
|
|
$
(US$
|
25,969,581
855,106
|
)
|
|
$
(US$
|
410,042
13,160
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
TSMC Technology
|
|
Delaware, U.S.A
|
|
Engineering support activities
|
|
(US$
|
433,745
14,282
|
)
|
|
(US$
|
433,745
14,282
|
)
|
|
|
|
|
|
|
100
|
|
|
(US$
|
526,776
17,345
|
)
|
|
(US$
|
14,829
476
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
ISDF II
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
(US$
|
157,737
5,194
|
)
|
|
(US$
|
157,737
5,194
|
)
|
|
|
9,299
|
|
|
|
97
|
|
|
(US$
|
292,251
9,623
|
)
|
|
(US$
|
(26
(1
|
)
))
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
TSMC Canada
|
|
Ontario, Canada
|
|
Engineering support activities
|
|
(US$
|
69,851
2,300
|
)
|
|
(US$
|
69,851
2,300
|
)
|
|
|
2,300
|
|
|
|
100
|
|
|
(US$
|
164,775
5,426
|
)
|
|
(US$
|
4,473
144
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
ISDF
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
(US$
|
14,432
475
|
)
|
|
(US$
|
14,432
475
|
)
|
|
|
583
|
|
|
|
97
|
|
|
(US$
|
461
15
|
)
|
|
|
|
|
|
|
Note 2
|
|
|
Subsidiary
|
VTAF III
|
|
Growth Fund
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
(US$
|
44,394
1,462
|
)
|
|
(US$
|
44,394
1,462
|
)
|
|
|
|
|
|
|
100
|
|
|
(US$
|
27,507
906
|
)
|
|
(US$
|
(312
(10
|
)
))
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
Mutual-Pak
|
|
New Taipei, Taiwan
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and
researching, developing and testing of RFID
|
|
(US$
|
158,309
5,213
|
)
|
|
(US$
|
158,309
5,213
|
)
|
|
|
15,643
|
|
|
|
58
|
|
|
(US$
|
16,643
548
|
)
|
|
(US$
|
(7,312
(235
|
)
))
|
|
|
Note 2
|
|
|
Subsidiary
|
VTAF III
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new
start-up
technology companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
Note 2
|
|
|
Subsidiary
|
VTAF II
|
|
VTA Holdings
|
|
Delaware, U.S.A
|
|
Investing in new
start-up
technology companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
Note 2
|
|
|
Subsidiary
|
TSMC Development
|
|
WaferTech
|
|
Washington, U.S.A
|
|
Manufacturing, selling and testing of integrated circuits and other semiconductor devices
|
|
|
|
|
|
|
|
|
|
|
293,637
|
|
|
|
100
|
|
|
(US$
|
5,815,737
191,496
|
)
|
|
(US$
|
368,354
11,822
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
Note 1:
|
The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.
|
Note 2:
|
The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.
|
(Concluded)
- 62 -
TABLE 10
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR THREE
MONTHS ENDED MARCH 31, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investee Company
|
|
Main Businesses and
Products
|
|
Total Amount of
Paid-in
Capital
(RMB
in Thousands)
|
|
|
Method of
Investment
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
January 1, 2017
(US$ in
Thousands)
|
|
|
Investment
Flows
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
March 31,
2017 (US$ in
Thousands)
|
|
|
Net Income
(Losses) of the
Investee
Company
|
|
|
Percentage of
Ownership
|
|
|
Share of
Profits/Losses
|
|
|
Carrying
Amount
as of
March 31,
2017
|
|
|
Accumulated
Inward
Remittance of
Earnings as
of
March 31,
2017
|
|
|
|
|
|
|
Outflow
(US$ in
Thousands)
|
|
|
Inflow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other
semiconductor devices
|
|
$
(RMB
|
18,939,667
4,502,080
|
)
|
|
|
Note 1
|
|
|
$
(US$
|
18,939,667
596,000
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
(US$
|
18,939,667
596,000
|
)
|
|
$
|
2,169,762
|
|
|
|
100%
|
|
|
$
|
2,170,716
(Note 2
|
)
|
|
$
|
42,649,871
|
|
|
$
|
|
|
TSMC Nanjing
|
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other
semiconductor devices
|
|
(RMB
|
6,435,200
1,366,240
|
)
|
|
|
Note 1
|
|
|
(US$
|
6,435,200
200,000
|
)
|
|
|
|
|
|
|
|
|
|
(US$
|
6,435,200
200,000
|
)
|
|
|
38,130
|
|
|
|
100%
|
|
|
|
38,130
(Note 2
|
)
|
|
|
6,058,911
|
|
|
|
|
|
|
|
|
|
|
Accumulated Investment in Mainland China
as of March 31, 2017
(US$ in Thousands)
|
|
Investment Amounts Authorized by
Investment Commission, MOEA
(US$ in Thousands)
|
|
Upper Limit on Investment
|
|
|
|
|
|
$ 25,374,867
(US$ 796,000)
|
|
$ 119,412,667
(US$ 3,596,000)
|
|
Note 3
|
Note 1:
|
TSMC directly invested US$596,000 thousand in TSMC China and US$200,000 thousands in TSMC Nanjing.
|
Note 2:
|
Amount was recognized based on the reviewed financial statements.
|
Note 3:
|
As the Company has obtained the certificate of being qualified for operating headquarters issued by Industrial Development Bureau, MOEA on August 2016, the upper limit on investment in mainland China pursuant to
Principle of investment or Technical Cooperation in Mainland China is not applicable.
|
- 63 -