(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
SIX MONTHS ENDED JUNE 30, 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 August 8, 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) (collectively, IFRSs) endorsed and issued into effect by the Financial Supervisory Commission (FSC)
|
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 would not have a significant effect on TSMC and its subsidiaries (collectively as the Company) 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 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.
(Continued)
- 7 -
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 International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2018
|
|
|
|
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
|
IFRS 15 Revenue from Contracts with Customers
|
|
January 1, 2018
|
Amendment to IFRS 15 Clarifications to IFRS 15
|
|
January 1, 2018
|
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.
|
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.
|
(Continued)
- 8 -
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 the hedging cost of 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.
|
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 contract; 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.
(Continued)
- 9 -
Except for the aforementioned impact, as of the date 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.
|
c.
|
The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC
|
|
|
|
New, Revised or Amended Standards and Interpretations
|
|
Effective Date Issued
by IASB (Note 3)
|
|
|
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 16 Leases
|
|
January 1, 2019
|
IFRIC 23 Uncertainty over Income Tax Treatments
|
|
January 1, 2019
|
|
Note 3:
|
The aforementioned new, revised or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates, unless specified otherwise.
|
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.
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 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.
(Continued)
- 10 -
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).
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
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
June 30,
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%
|
|
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)
|
|
|
TSMC Solar Europe GmbH
|
|
Selling of solar related products and providing customer service
|
|
Hamburg, Germany
|
|
100%
|
|
100%
|
|
100%
|
|
a), c)
|
|
|
Chi Cherng Investment Co., Ltd. (Chi Cherng)
|
|
Investment activities
|
|
Taipei, Taiwan
|
|
|
|
|
|
100%
|
|
d)
|
|
|
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%
|
|
|
|
e)
|
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), f)
|
|
|
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II)
|
|
Investing in new
start-up
technology companies
|
|
Cayman Islands
|
|
97%
|
|
97%
|
|
97%
|
|
a), f)
|
|
|
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), e)
|
(Continued)
- 11 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Establishment
and Operating
Location
|
|
Percentage of Ownership
|
|
|
Name of Investor
|
|
Name of Investee
|
|
Main Businesses and Products
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
June 30,
2016
|
|
Note
|
|
|
|
|
|
|
|
|
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 TSMC
|
|
VentureTech Alliance Holdings, LLC
(VTA Holdings)
|
|
Investing in new
start-up
technology companies
|
|
Delaware, U.S.A.
|
|
|
|
100%
|
|
100%
|
|
a), g)
|
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%
|
|
e)
|
(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:
|
TSMC Solar Europe GmbH is in the process of liquidation.
|
|
Note d:
|
Chi Cherng was incorporated into TSMC in December 2016.
|
|
Note e:
|
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 f:
|
ISDF and ISDF II are in the process of liquidation.
|
|
Note g:
|
VTA Holdings completed the liquidation procedures in April 2017.
|
Hedge Accounting
Cash Flow Hedge
The
Company designates certain hedging instruments, such as forward exchange contracts, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions, such as capital expenditures. The effective portion
of changes in the fair value of hedging instruments is recognized in other comprehensive income. When the forecast transactions actually take place, the associated gains or losses that were recognized in other comprehensive income are removed from
equity and included in the initial cost of the hedged items. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss.
Hedge accounting is discontinued prospectively when the Company revokes the designated hedging relationship, or when the hedging instruments
expire or are sold, terminated, or exercised, or no longer meet the criteria for hedge accounting.
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.
- 12 -
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Cash and deposits in banks
|
|
$
|
570,466,958
|
|
|
$
|
536,895,344
|
|
|
$
|
617,660,014
|
|
Repurchase agreements collateralized by corporate bonds
|
|
|
|
|
|
|
2,361,250
|
|
|
|
4,499,288
|
|
Commercial paper
|
|
|
|
|
|
|
1,997,239
|
|
|
|
|
|
Repurchase agreements collateralized by government bonds
|
|
|
|
|
|
|
|
|
|
|
200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
570,466,958
|
|
|
$
|
541,253,833
|
|
|
$
|
622,359,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
209,435
|
|
|
$
|
142,406
|
|
|
$
|
143,834
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
10,976
|
|
|
|
62,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
209,435
|
|
|
|
153,382
|
|
|
|
206,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
4,725,106
|
|
|
|
6,297,708
|
|
|
|
1,614,156
|
|
Forward exchange contracts
|
|
|
60,710
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,785,816
|
|
|
|
6,297,730
|
|
|
|
1,614,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,995,251
|
|
|
$
|
6,451,112
|
|
|
$
|
1,820,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
82,552
|
|
|
$
|
91,585
|
|
|
$
|
160,423
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
|
|
|
|
7,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82,552
|
|
|
|
91,585
|
|
|
|
167,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
99,550
|
|
|
|
10,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
82,552
|
|
|
$
|
191,135
|
|
|
$
|
178,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 13 -
The Company entered into derivative contracts to manage exposures due to fluctuations of foreign
exchange rates. These derivative contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these derivative contracts.
Outstanding forward exchange contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
Maturity Date
|
|
(In Thousands)
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
July 2017
|
|
|
NT$5,591,846/EUR164,500
|
|
Sell NT$/Buy JPY
|
|
July 2017
|
|
|
NT$7,413,646/JPY27,100,000
|
|
Sell US$/Buy EUR
|
|
July 2017
|
|
|
US$89,202/EUR79,000
|
|
Sell US$/Buy JPY
|
|
July 2017
|
|
|
US$53,585/JPY6,000,000
|
|
Sell US$/Buy NT$
|
|
July 2017 to August 2017
|
|
|
US$277,700/NT$8,440,651
|
|
Sell US$/Buy RMB
|
|
July 2017 to September 2017
|
|
|
US$557,000/RMB3,805,715
|
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
Sell NT$/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$421,750/RMB2,908,380
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
July 2016
|
|
|
NT$2,114,352/EUR59,000
|
|
Sell NT$/Buy JPY
|
|
July 2016
|
|
|
NT$4,889,373/JPY15,521,040
|
|
Sell US$/Buy JPY
|
|
July 2016
|
|
|
US$166,271/JPY16,944,380
|
|
Sell US$/Buy RMB
|
|
July 2016 to June 2017
|
|
|
US$233,000/RMB1,538,880
|
|
Sell US$/Buy NT$
|
|
July 2016 to August 2016
|
|
|
US$498,000/NT$16,190,246
|
|
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%
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 2016
|
|
|
US$415,000/NT$13,452,895
|
|
|
|
0.66%-0.90%
|
|
|
|
- 14 -
8.
|
AVAILABLE-FOR-SALE
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Corporate bonds
|
|
$
|
32,784,516
|
|
|
$
|
29,999,508
|
|
|
$
|
12,525,209
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
21,861,711
|
|
|
|
14,880,482
|
|
|
|
6,379,861
|
|
Asset-backed securities
|
|
|
12,005,502
|
|
|
|
11,254,757
|
|
|
|
6,029,248
|
|
Government bonds
|
|
|
6,607,624
|
|
|
|
8,457,362
|
|
|
|
2,366,035
|
|
Publicly traded stocks
|
|
|
2,635,124
|
|
|
|
3,196,658
|
|
|
|
2,893,386
|
|
Commercial paper
|
|
|
358,175
|
|
|
|
|
|
|
|
|
|
Money market funds
|
|
|
|
|
|
|
|
|
|
|
6,128,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
76,252,652
|
|
|
$
|
67,788,767
|
|
|
$
|
36,322,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
HELD-TO-MATURITY
FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
21,157,966
|
|
|
$
|
23,849,701
|
|
|
$
|
26,988,011
|
|
Negotiable certificate of deposit
|
|
|
4,562,100
|
|
|
|
4,829,850
|
|
|
|
4,842,450
|
|
Structured product
|
|
|
1,520,700
|
|
|
|
1,609,950
|
|
|
|
2,000,000
|
|
Commercial paper
|
|
|
498,818
|
|
|
|
8,628,176
|
|
|
|
798,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,739,584
|
|
|
$
|
38,917,677
|
|
|
$
|
34,629,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
7,210,380
|
|
|
$
|
16,610,116
|
|
|
$
|
7,362,302
|
|
Noncurrent portion
|
|
|
20,529,204
|
|
|
|
22,307,561
|
|
|
|
27,266,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,739,584
|
|
|
$
|
38,917,677
|
|
|
$
|
34,629,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.
|
HEDGING DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Financial assets - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
4,783
|
|
|
$
|
5,550
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
19,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
24,517
|
|
|
$
|
5,550
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities - current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
19
|
|
|
$
|
|
|
|
$
|
4,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
- 15 -
The outstanding interest rate futures contracts consisted of the following:
|
|
|
|
|
Maturity Period
|
|
Contract Amount
(US$ in Thousands)
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
September 2017
|
|
US$
|
115,000
|
|
|
|
December 31, 2016
|
|
|
|
|
|
|
March 2017
|
|
US$
|
53,600
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
September 2016
|
|
US$
|
10,000
|
|
The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks
associated with certain highly probable forecast transactions, such as capital expenditures. These contracts have maturities of 12 months or less.
Outstanding forward exchange contracts consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
Maturity Date
|
|
(In Thousands)
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR
|
|
October 2017
|
|
|
NT$329,400/EUR10,000
|
|
11.
|
NOTES AND ACCOUNTS RECEIVABLE, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Notes and accounts receivable
|
|
$
|
110,365,090
|
|
|
$
|
128,815,389
|
|
|
$
|
111,788,384
|
|
Allowance for doubtful receivables
|
|
|
(471,808
|
)
|
|
|
(480,118
|
)
|
|
|
(488,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes and accounts receivable, net
|
|
$
|
109,893,282
|
|
|
$
|
128,335,271
|
|
|
$
|
111,300,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. In addition, the Company has obtained guarantee to certain receivables.
- 16 -
Aging analysis of notes and accounts receivable, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Neither past due nor impaired
|
|
$
|
102,621,332
|
|
|
$
|
108,411,408
|
|
|
$
|
97,225,328
|
|
Past due but not impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due within 30 days
|
|
|
3,770,828
|
|
|
|
15,017,824
|
|
|
|
9,190,367
|
|
Past due
31-60
days
|
|
|
1,723,349
|
|
|
|
1,844,726
|
|
|
|
1,901,629
|
|
Past due 61-120 days
|
|
|
1,777,773
|
|
|
|
3,061,313
|
|
|
|
2,982,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
109,893,282
|
|
|
$
|
128,335,271
|
|
|
$
|
111,300,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
|
(6,305
|
)
|
|
|
(8,153
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(157
|
)
|
|
|
(157
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2017
|
|
$
|
|
|
|
$
|
471,808
|
|
|
$
|
471,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
10,241
|
|
|
$
|
478,010
|
|
|
$
|
488,251
|
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(54
|
)
|
|
|
(54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
10,241
|
|
|
$
|
477,956
|
|
|
$
|
488,197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aging analysis of accounts receivable that is individually determined as impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Past due over 121 days
|
|
$
|
|
|
|
$
|
1,848
|
|
|
$
|
10,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Finished goods
|
|
$
|
9,445,865
|
|
|
$
|
8,521,873
|
|
|
$
|
4,943,938
|
|
Work in process
|
|
|
42,817,413
|
|
|
|
33,330,870
|
|
|
|
50,604,010
|
|
Raw materials
|
|
|
5,866,098
|
|
|
|
4,012,190
|
|
|
|
2,765,102
|
|
Supplies and spare parts
|
|
|
2,881,149
|
|
|
|
2,817,300
|
|
|
|
2,392,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
61,010,525
|
|
|
$
|
48,682,233
|
|
|
$
|
60,705,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of write-down of inventories resulting from the increase in net realizable value (excluding
earthquake losses) and write-down of inventories to net realizable value (excluding earthquake losses) were included in the cost of revenue, which were as follows. Please refer to related earthquake losses in Note 33.
- 17 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Inventory losses (reversal of write-down of inventories)
|
|
$
|
(520,998)
|
|
|
$
|
1,195,805
|
|
|
$
|
(1,463,341
|
)
|
|
$
|
651,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.
|
FINANCIAL ASSETS CARRIED AT COST
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
|
Non-publicly
traded stocks
|
|
|
|
|
|
$
|
2,749,463
|
|
|
$
|
2,944,859
|
|
|
$
|
3,176,575
|
|
Mutual funds
|
|
|
|
|
|
|
1,563,806
|
|
|
|
1,157,608
|
|
|
|
890,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,313,269
|
|
|
$
|
4,102,467
|
|
|
$
|
4,066,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
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
|
|
Hsin-Chu,
Taiwan
|
|
$
|
7,956,845
|
|
|
$
|
8,806,384
|
|
|
$
|
8,068,620
|
|
|
|
28%
|
|
|
|
28%
|
|
|
|
28%
|
|
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
|
|
Manufacturing and selling of integrated circuits and other semiconductor devices
|
|
Singapore
|
|
|
7,596,341
|
|
|
|
7,163,516
|
|
|
|
10,154,793
|
|
|
|
39%
|
|
|
|
39%
|
|
|
|
39%
|
|
Xintec Inc. (Xintec)
|
|
Wafer level chip size packaging and wafer level post passivation interconnection service
|
|
Taoyuan, Taiwan
|
|
|
2,344,813
|
|
|
|
2,599,807
|
|
|
|
2,777,336
|
|
|
|
41%
|
|
|
|
41%
|
|
|
|
41%
|
|
Global Unichip Corporation (GUC)
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
Hsin-Chu,
Taiwan
|
|
|
1,078,026
|
|
|
|
1,174,181
|
|
|
|
1,063,883
|
|
|
|
35%
|
|
|
|
35%
|
|
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,976,025
|
|
|
$
|
19,743,888
|
|
|
$
|
22,064,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
- 18 -
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
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
VIS
|
|
$
|
27,853,410
|
|
|
$
|
26,089,360
|
|
|
$
|
24,511,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUC
|
|
$
|
6,022,734
|
|
|
$
|
3,664,997
|
|
|
$
|
3,417,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xintec
|
|
$
|
5,541,840
|
|
|
$
|
3,622,227
|
|
|
$
|
2,325,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
64,811,014
|
|
|
|
375,300,110
|
|
|
|
4,672,797
|
|
|
|
|
|
|
|
(248,117,207
|
)
|
|
|
196,666,714
|
|
Disposals or retirements
|
|
|
|
|
|
|
(36,957
|
)
|
|
|
(3,486,590
|
)
|
|
|
(317,146
|
)
|
|
|
|
|
|
|
|
|
|
|
(3,840,693
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
8,791
|
|
|
|
1,507
|
|
|
|
|
|
|
|
|
|
|
|
10,298
|
|
Effect of exchange rate changes
|
|
|
(46,417
|
)
|
|
|
(867,048
|
)
|
|
|
(3,532,198
|
)
|
|
|
(111,395
|
)
|
|
|
|
|
|
|
(62,640
|
)
|
|
|
(4,619,698
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2017
|
|
$
|
4,002,875
|
|
|
$
|
368,311,483
|
|
|
$
|
2,411,157,857
|
|
|
$
|
38,975,403
|
|
|
$
|
|
|
|
$
|
139,019,828
|
|
|
$
|
2,961,467,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
14,012
|
|
|
|
9,400,481
|
|
|
|
104,345,520
|
|
|
|
2,339,103
|
|
|
|
|
|
|
|
|
|
|
|
116,099,116
|
|
Disposals or retirements
|
|
|
|
|
|
|
(28,816
|
)
|
|
|
(3,333,518
|
)
|
|
|
(317,093
|
)
|
|
|
|
|
|
|
|
|
|
|
(3,679,427
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
8,195
|
|
|
|
1,466
|
|
|
|
|
|
|
|
|
|
|
|
9,661
|
|
Effect of exchange rate changes
|
|
|
(29,236
|
)
|
|
|
(713,609
|
)
|
|
|
(3,239,046
|
)
|
|
|
(79,910
|
)
|
|
|
|
|
|
|
|
|
|
|
(4,061,801
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2017
|
|
$
|
509,621
|
|
|
$
|
183,007,133
|
|
|
$
|
1,675,158,660
|
|
|
$
|
25,165,273
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,883,840,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2017
|
|
$
|
3,493,254
|
|
|
$
|
185,304,350
|
|
|
$
|
735,999,197
|
|
|
$
|
13,810,130
|
|
|
$
|
|
|
|
$
|
139,019,828
|
|
|
$
|
1,077,626,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
5,544,359
|
|
|
|
117,986,695
|
|
|
|
3,012,979
|
|
|
|
|
|
|
|
5,870,440
|
|
|
|
132,414,473
|
|
Disposals or retirements
|
|
|
|
|
|
|
|
|
|
|
(1,828,533
|
)
|
|
|
(316,251
|
)
|
|
|
|
|
|
|
|
|
|
|
(2,144,784
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
(15,914
|
)
|
|
|
(777,818
|
)
|
|
|
(2,435,252
|
)
|
|
|
(44,228
|
)
|
|
|
|
|
|
|
(19,513
|
)
|
|
|
(3,292,725
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
4,051,477
|
|
|
$
|
301,568,405
|
|
|
$
|
2,007,212,514
|
|
|
$
|
33,359,662
|
|
|
$
|
|
|
|
$
|
197,962,475
|
|
|
$
|
2,544,154,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
14,949
|
|
|
|
8,772,080
|
|
|
|
98,462,355
|
|
|
|
2,103,508
|
|
|
|
|
|
|
|
|
|
|
|
109,352,892
|
|
Disposals or retirements
|
|
|
|
|
|
|
|
|
|
|
(1,808,905
|
)
|
|
|
(316,190
|
)
|
|
|
|
|
|
|
|
|
|
|
(2,125,095
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,113
|
|
|
|
(7,113
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
(9,643
|
)
|
|
|
(575,262
|
)
|
|
|
(2,034,628
|
)
|
|
|
(31,113
|
)
|
|
|
|
|
|
|
|
|
|
|
(2,650,646
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
511,491
|
|
|
$
|
166,106,973
|
|
|
$
|
1,480,476,477
|
|
|
$
|
21,189,387
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1,668,284,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2016
|
|
$
|
3,539,986
|
|
|
$
|
135,461,432
|
|
|
$
|
526,736,037
|
|
|
$
|
12,170,275
|
|
|
$
|
|
|
|
$
|
197,962,475
|
|
|
$
|
875,870,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 19 -
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
671,467
|
|
|
|
902,376
|
|
|
|
242,792
|
|
|
|
1,816,635
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(75,237
|
)
|
|
|
|
|
|
|
(75,237
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
7,662
|
|
|
|
(17,960
|
)
|
|
|
(10,298
|
)
|
Effect of exchange rate changes
|
|
|
(243,177
|
)
|
|
|
(1,089
|
)
|
|
|
(4,585
|
)
|
|
|
(3,895
|
)
|
|
|
(252,746
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2017
|
|
$
|
5,764,798
|
|
|
$
|
10,216,385
|
|
|
$
|
23,073,811
|
|
|
$
|
5,607,372
|
|
|
$
|
44,662,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2017
|
|
$
|
|
|
|
$
|
6,147,200
|
|
|
$
|
18,144,428
|
|
|
$
|
4,277,538
|
|
|
$
|
28,569,166
|
|
Additions
|
|
|
|
|
|
|
774,708
|
|
|
|
1,045,257
|
|
|
|
245,494
|
|
|
|
2,065,459
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(75,237
|
)
|
|
|
|
|
|
|
(75,237
|
)
|
Reclassification
|
|
|
|
|
|
|
|
|
|
|
7,409
|
|
|
|
(17,070
|
)
|
|
|
(9,661
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
(1,094
|
)
|
|
|
(3,985
|
)
|
|
|
(1,174
|
)
|
|
|
(6,253
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2017
|
|
$
|
|
|
|
$
|
6,920,814
|
|
|
$
|
19,117,872
|
|
|
$
|
4,504,788
|
|
|
$
|
30,543,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2017
|
|
$
|
6,007,975
|
|
|
$
|
3,398,807
|
|
|
$
|
4,099,167
|
|
|
$
|
1,108,897
|
|
|
$
|
14,614,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2017
|
|
$
|
5,764,798
|
|
|
$
|
3,295,571
|
|
|
$
|
3,955,939
|
|
|
$
|
1,102,584
|
|
|
$
|
14,118,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
6,104,784
|
|
|
$
|
8,454,304
|
|
|
$
|
19,474,428
|
|
|
$
|
4,879,026
|
|
|
$
|
38,912,542
|
|
Additions
|
|
|
|
|
|
|
751,269
|
|
|
|
745,416
|
|
|
|
362,770
|
|
|
|
1,859,455
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(1,800
|
)
|
|
|
|
|
|
|
(1,800
|
)
|
Effect of exchange rate changes
|
|
|
(84,410
|
)
|
|
|
2,910
|
|
|
|
(5,961
|
)
|
|
|
(6,179
|
)
|
|
|
(93,640
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
6,020,374
|
|
|
$
|
9,208,483
|
|
|
$
|
20,212,083
|
|
|
$
|
5,235,617
|
|
|
$
|
40,676,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$
|
|
|
|
$
|
4,779,388
|
|
|
$
|
16,431,666
|
|
|
$
|
3,635,608
|
|
|
$
|
24,846,662
|
|
Additions
|
|
|
|
|
|
|
651,638
|
|
|
|
791,025
|
|
|
|
326,494
|
|
|
|
1,769,157
|
|
Retirements
|
|
|
|
|
|
|
|
|
|
|
(1,800
|
)
|
|
|
|
|
|
|
(1,800
|
)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
2,910
|
|
|
|
(5,409
|
)
|
|
|
(1,525
|
)
|
|
|
(4,024
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2016
|
|
$
|
|
|
|
$
|
5,433,936
|
|
|
$
|
17,215,482
|
|
|
$
|
3,960,577
|
|
|
$
|
26,609,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at June 30, 2016
|
|
$
|
6,020,374
|
|
|
$
|
3,774,547
|
|
|
$
|
2,996,601
|
|
|
$
|
1,275,040
|
|
|
$
|
14,066,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
- 20 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Tax receivable
|
|
$
|
3,100,287
|
|
|
$
|
2,325,825
|
|
|
$
|
2,064,225
|
|
Prepaid expenses
|
|
|
1,242,518
|
|
|
|
1,007,026
|
|
|
|
1,159,387
|
|
Others
|
|
|
1,501,816
|
|
|
|
1,553,003
|
|
|
|
1,586,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,844,621
|
|
|
$
|
4,885,854
|
|
|
$
|
4,810,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion
|
|
$
|
3,777,530
|
|
|
$
|
3,385,422
|
|
|
$
|
3,263,678
|
|
Noncurrent portion
|
|
|
2,067,091
|
|
|
|
1,500,432
|
|
|
|
1,546,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,844,621
|
|
|
$
|
4,885,854
|
|
|
$
|
4,810,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Unsecured loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
$
|
54,745,200
|
|
|
$
|
57,958,200
|
|
|
$
|
38,739,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Original loan content
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ (in thousands)
|
|
$
|
1,800,000
|
|
|
$
|
1,800,000
|
|
|
$
|
1,200,000
|
|
Annual interest rate
|
|
|
1.27%-1.33%
|
|
|
|
0.87%-1.07%
|
|
|
|
0.70%-0.77%
|
|
Maturity date
|
|
|
Due by
July 2017
|
|
|
|
Due by
January 2017
|
|
|
|
Due in
July 2016
|
|
The Companys current provisions were provisions for sales returns and
allowances.
|
|
|
|
|
|
|
Sales Returns
and Allowances
|
|
|
|
Six months ended June 30, 2017
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
18,037,789
|
|
Provision
|
|
|
20,743,207
|
|
Payment
|
|
|
(24,930,685
|
)
|
Effect of exchange rate changes
|
|
|
(32,095
|
)
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
13,818,216
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
Balance, beginning of period
|
|
$
|
10,163,536
|
|
Provision
|
|
|
13,433,695
|
|
Payment
|
|
|
(14,070,519
|
)
|
Effect of exchange rate changes
|
|
|
(30,823
|
)
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
9,495,889
|
|
|
|
|
|
|
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.
- 21 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Domestic unsecured bonds
|
|
$
|
144,200,000
|
|
|
$
|
154,200,000
|
|
|
$
|
166,200,000
|
|
Overseas unsecured bonds
|
|
|
34,976,100
|
|
|
|
37,028,850
|
|
|
|
37,125,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179,176,100
|
|
|
|
191,228,850
|
|
|
|
203,325,450
|
|
Less: Discounts on bonds payable
|
|
|
(20,175
|
)
|
|
|
(35,293
|
)
|
|
|
(49,239
|
)
|
Less: Current portion
|
|
|
(79,855,925
|
)
|
|
|
(38,100,000
|
)
|
|
|
(22,000,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
99,300,000
|
|
|
$
|
153,093,557
|
|
|
$
|
181,276,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Capacity guarantee
|
|
$
|
16,727,700
|
|
|
$
|
20,929,350
|
|
|
$
|
24,212,250
|
|
Receivables guarantee
|
|
|
4,293,198
|
|
|
|
5,559,960
|
|
|
|
|
|
Others
|
|
|
292,113
|
|
|
|
181,312
|
|
|
|
200,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,313,011
|
|
|
$
|
26,670,622
|
|
|
$
|
24,412,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion (classified under accrued expenses and other current liabilities)
|
|
$
|
10,494,634
|
|
|
$
|
12,000,189
|
|
|
$
|
6,461,850
|
|
Noncurrent portion
|
|
|
10,818,377
|
|
|
|
14,670,433
|
|
|
|
17,950,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,313,011
|
|
|
$
|
26,670,622
|
|
|
$
|
24,412,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 22 -
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 June 30, 2017, 1,068,224 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was
5,341,120 thousand shares (one ADS represents five common shares).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
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
|
|
|
110,559
|
|
|
|
107,798
|
|
|
|
100,761
|
|
From share of changes in equities of associates
|
|
|
289,870
|
|
|
|
282,155
|
|
|
|
280,029
|
|
Donations
|
|
|
55
|
|
|
|
55
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,282,780
|
|
|
$
|
56,272,304
|
|
|
$
|
56,263,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
- 23 -
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.
The appropriations of 2016 and 2015
earnings have been approved by TSMCs shareholders in its meetings held on June 8, 2017 and June 7, 2016, respectively. The appropriations and dividends per share were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriation of Earnings
|
|
|
Dividends Per Share
(NT$)
|
|
|
|
For Fiscal
Year 2016
|
|
|
For Fiscal
Year 2015
|
|
|
For Fiscal
Year 2016
|
|
|
For Fiscal
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 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
|
|
|
(19,888,672
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,888,672
|
)
|
Changes in fair value of
available-for-sale
financial assets
|
|
|
|
|
|
|
(130,925
|
)
|
|
|
|
|
|
|
|
|
|
|
(130,925
|
)
|
Cumulative (gain)/loss reclassified to profit or loss upon disposal of
available-for-sale
financial assets
|
|
|
|
|
|
|
61,679
|
|
|
|
|
|
|
|
|
|
|
|
61,679
|
|
Gain/(loss) arising on changes in the fair value of hedging instruments
|
|
|
|
|
|
|
|
|
|
|
82,504
|
|
|
|
|
|
|
|
82,504
|
|
Transferred to initial carrying amount of hedged items
|
|
|
|
|
|
|
|
|
|
|
(63,507
|
)
|
|
|
|
|
|
|
(63,507
|
)
|
(Continued)
- 24 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
Foreign
Currency
Translation
Reserve
|
|
|
Unrealized
Gain/Loss from
Available-for-
sale Financial
Assets
|
|
|
Cash Flow
Hedges Reserve
|
|
|
Unearned
Stock-Based
Employee
Compensation
|
|
|
Total
|
|
|
|
|
|
|
|
Share of other comprehensive income (loss) of associates
|
|
$
|
(59,080
|
)
|
|
$
|
436
|
|
|
$
|
14
|
|
|
$
|
|
|
|
$
|
(58,630
|
)
|
Share of unearned stock-based employee compensation of associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,384
|
)
|
|
|
(15,384
|
)
|
Income tax effect
|
|
|
|
|
|
|
54,721
|
|
|
|
(2,280
|
)
|
|
|
|
|
|
|
52,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(18,286,515
|
)
|
|
$
|
(11,448
|
)
|
|
$
|
16,836
|
|
|
$
|
(15,384
|
)
|
|
$
|
(18,296,511
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 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
|
|
|
(6,981,647
|
)
|
|
|
|
|
|
|
|
|
|
|
(6,981,647
|
)
|
Other comprehensive income reclassified to profit or loss upon disposal of subsidiaries
|
|
|
36,105
|
|
|
|
|
|
|
|
|
|
|
|
36,105
|
|
Changes in fair value of
available-for-sale
financial assets
|
|
|
|
|
|
|
112,904
|
|
|
|
|
|
|
|
112,904
|
|
Cumulative gain reclassified to profit or loss upon disposal of
available-for-sale
financial assets
|
|
|
|
|
|
|
(89,669
|
)
|
|
|
|
|
|
|
(89,669
|
)
|
Share of other comprehensive income (loss) of associates and joint venture
|
|
|
(8,260
|
)
|
|
|
24,784
|
|
|
|
285
|
|
|
|
16,809
|
|
Other comprehensive loss reclassified to profit or loss upon disposal of associates
|
|
|
(4,712
|
)
|
|
|
(3,469
|
)
|
|
|
|
|
|
|
(8,181
|
)
|
Income tax effect
|
|
|
|
|
|
|
27,640
|
|
|
|
|
|
|
|
27,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
4,081,435
|
|
|
$
|
806,961
|
|
|
$
|
(322
|
)
|
|
$
|
4,888,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The aforementioned other equity includes the changes in other equities of TSMC and TSMCs share of
its subsidiaries and associates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
$
|
213,731,711
|
|
|
$
|
221,667,204
|
|
|
$
|
447,486,888
|
|
|
$
|
425,050,621
|
|
Net revenue from royalties
|
|
|
123,501
|
|
|
|
142,642
|
|
|
|
282,724
|
|
|
|
254,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
213,855,212
|
|
|
$
|
221,809,846
|
|
|
$
|
447,769,612
|
|
|
$
|
425,305,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 25 -
24.
|
OTHER GAINS AND LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Gain (loss) on disposal of financial assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
$
|
(50,329
|
)
|
|
$
|
100,498
|
|
|
$
|
(59,311
|
)
|
|
$
|
89,669
|
|
Financial assets carried at cost
|
|
|
4,753
|
|
|
|
5,628
|
|
|
|
4,753
|
|
|
|
20,009
|
|
Loss on disposal of investments accounted for using equity method, net
|
|
|
|
|
|
|
(259,960
|
)
|
|
|
|
|
|
|
(259,960
|
)
|
Other gains
|
|
|
92,681
|
|
|
|
25,210
|
|
|
|
128,776
|
|
|
|
62,638
|
|
Net gain (loss) on financial instruments at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
923,136
|
|
|
|
1,297,816
|
|
|
|
1,296,276
|
|
|
|
2,829,951
|
|
Designated as at FVTPL
|
|
|
47,530
|
|
|
|
(70,947
|
)
|
|
|
97,664
|
|
|
|
(70,947
|
)
|
Gain (loss) arising from fair value hedges, net
|
|
|
(4,007
|
)
|
|
|
404
|
|
|
|
(23,494
|
)
|
|
|
(841
|
)
|
Impairment loss on financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets carried at cost
|
|
|
|
|
|
|
(30,872
|
)
|
|
|
(12,032
|
)
|
|
|
(30,872
|
)
|
Loss from liquidation of subsidiaries
|
|
|
|
|
|
|
(36,105
|
)
|
|
|
|
|
|
|
(36,105
|
)
|
Other losses
|
|
|
(4,913
|
)
|
|
|
(2,671
|
)
|
|
|
(8,592
|
)
|
|
|
(15,242
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,008,851
|
|
|
$
|
1,029,001
|
|
|
$
|
1,424,040
|
|
|
$
|
2,588,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a.
|
Income tax expense recognized in profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Current income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax expense recognized in the current period
|
|
$
|
20,033,186
|
|
|
$
|
20,823,242
|
|
|
$
|
32,675,274
|
|
|
$
|
29,469,752
|
|
Income tax adjustments on prior years
|
|
|
(938,292
|
)
|
|
|
(1,035,405
|
)
|
|
|
(938,292
|
)
|
|
|
(1,035,405
|
)
|
Other income tax adjustments
|
|
|
34,178
|
|
|
|
169,156
|
|
|
|
70,534
|
|
|
|
204,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,129,072
|
|
|
|
19,956,993
|
|
|
|
31,807,516
|
|
|
|
28,639,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The origination and reversal of temporary differences
|
|
|
(719,574
|
)
|
|
|
(51,179
|
)
|
|
|
(1,759,110
|
)
|
|
|
(297,929
|
)
|
Investment tax credits and operating loss carryforward
|
|
|
1,437,317
|
|
|
|
972,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
717,743
|
|
|
|
921,119
|
|
|
|
(1,759,110
|
)
|
|
|
(297,929
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense recognized in profit or loss
|
|
$
|
19,846,815
|
|
|
$
|
20,878,112
|
|
|
$
|
30,048,406
|
|
|
$
|
28,341,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 26 -
|
b.
|
Income tax expense recognized in other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Deferred income tax benefit (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related to unrealized gain/loss on
available-for-sale
financial assets
|
|
$
|
8,321
|
|
|
$
|
10,200
|
|
|
$
|
54,721
|
|
|
$
|
27,640
|
|
Related to gain/loss on cash flow hedges
|
|
|
(2,280
|
)
|
|
|
|
|
|
|
(2,280
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax recognized in other comprehensive income
|
|
$
|
6,041
|
|
|
$
|
10,200
|
|
|
$
|
52,441
|
|
|
$
|
27,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c.
|
Integrated income tax information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Balance of the Imputation
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Account - TSMC
|
|
$
|
120,076,806
|
|
|
$
|
82,072,562
|
|
|
$
|
90,045,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The estimated and actual creditable ratio for distribution of TSMCs earnings of 2016 and 2015 were
13.90% 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 June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Basic EPS
|
|
$
|
2.56
|
|
|
$
|
2.80
|
|
|
$
|
5.94
|
|
|
$
|
5.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
2.56
|
|
|
$
|
2.80
|
|
|
$
|
5.94
|
|
|
$
|
5.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 27 -
EPS is computed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts
(Numerator)
|
|
Number of
Shares
(Denominator)
(In Thousands)
|
|
EPS (NT$)
|
|
|
|
|
Three months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
|
$
|
66,271,019
|
|
|
|
|
25,930,380
|
|
|
|
$
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
|
$
|
72,506,321
|
|
|
|
|
25,930,380
|
|
|
|
$
|
2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
|
$
|
153,899,917
|
|
|
|
|
25,930,380
|
|
|
|
$
|
5.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders of the parent
|
|
|
$
|
137,287,814
|
|
|
|
|
25,930,380
|
|
|
|
$
|
5.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.
|
ADDITIONAL INFORMATION OF EXPENSES BY NATURE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
a. Depreciation of property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
52,169,204
|
|
|
$
|
50,255,557
|
|
|
$
|
106,662,166
|
|
|
$
|
101,084,838
|
|
Recognized in operating expenses
|
|
|
4,790,330
|
|
|
|
4,140,384
|
|
|
|
9,424,507
|
|
|
|
8,255,414
|
|
Recognized in other operating income and expenses
|
|
|
6,221
|
|
|
|
6,222
|
|
|
|
12,443
|
|
|
|
12,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
56,965,755
|
|
|
$
|
54,402,163
|
|
|
$
|
116,099,116
|
|
|
$
|
109,352,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 28 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
b. Amortization of intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
514,854
|
|
|
$
|
491,251
|
|
|
$
|
1,042,762
|
|
|
$
|
980,928
|
|
Recognized in operating expenses
|
|
|
511,781
|
|
|
|
381,574
|
|
|
|
1,022,697
|
|
|
|
788,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,026,635
|
|
|
$
|
872,825
|
|
|
$
|
2,065,459
|
|
|
$
|
1,769,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c. Research and development costs expensed as incurred
|
|
$
|
19,057,456
|
|
|
$
|
16,903,540
|
|
|
$
|
38,469,849
|
|
|
$
|
32,522,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d. Employee benefits expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined contribution plans
|
|
$
|
580,666
|
|
|
$
|
527,976
|
|
|
$
|
1,156,426
|
|
|
$
|
1,054,449
|
|
Defined benefit plans
|
|
|
67,887
|
|
|
|
68,034
|
|
|
|
135,762
|
|
|
|
136,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
648,553
|
|
|
|
596,010
|
|
|
|
1,292,188
|
|
|
|
1,190,508
|
|
Other employee benefits
|
|
|
22,809,113
|
|
|
|
22,846,683
|
|
|
|
48,098,295
|
|
|
|
44,346,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,457,666
|
|
|
$
|
23,442,693
|
|
|
$
|
49,390,483
|
|
|
$
|
45,536,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee benefits expense summarized by function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in cost of revenue
|
|
$
|
13,905,886
|
|
|
$
|
13,811,159
|
|
|
$
|
29,134,786
|
|
|
$
|
26,916,580
|
|
Recognized in operating expenses
|
|
|
9,551,780
|
|
|
|
9,631,534
|
|
|
|
20,255,697
|
|
|
|
18,620,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,457,666
|
|
|
$
|
23,442,693
|
|
|
$
|
49,390,483
|
|
|
$
|
45,536,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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$4,445,463 thousand and NT$4,863,012 thousand for the three months ended June 30, 2017 and 2016, respectively; and
NT$10,322,557 thousand and NT$9,207,536 thousand for the six months ended June 30, 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.
- 29 -
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.
28.
|
FINANCIAL INSTRUMENTS
|
|
a.
|
Categories of financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
209,435
|
|
|
$
|
153,382
|
|
|
$
|
206,751
|
|
Designated as at FVTPL
|
|
|
4,785,816
|
|
|
|
6,297,730
|
|
|
|
1,614,156
|
|
Available-for-sale
financial assets (Note)
|
|
|
80,565,921
|
|
|
|
71,891,234
|
|
|
|
40,388,670
|
|
Held-to-maturity
financial assets
|
|
|
27,739,584
|
|
|
|
38,917,677
|
|
|
|
34,629,169
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
24,517
|
|
|
|
5,550
|
|
|
|
|
|
Loans and receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
570,466,958
|
|
|
|
541,253,833
|
|
|
|
622,359,302
|
|
Notes and accounts receivable (including related parties)
|
|
|
110,329,283
|
|
|
|
129,304,830
|
|
|
|
111,724,397
|
|
Other receivables
|
|
|
3,982,456
|
|
|
|
2,626,401
|
|
|
|
5,503,244
|
|
Refundable deposits
|
|
|
742,707
|
|
|
|
407,874
|
|
|
|
441,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
798,846,677
|
|
|
$
|
790,858,511
|
|
|
$
|
816,867,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
$
|
82,552
|
|
|
$
|
91,585
|
|
|
$
|
167,831
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
99,550
|
|
|
|
10,873
|
|
Derivative financial instruments in designated hedge accounting relationships
|
|
|
19
|
|
|
|
|
|
|
|
4,217
|
|
Amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
54,745,200
|
|
|
|
57,958,200
|
|
|
|
38,739,600
|
|
Accounts payable (including related parties)
|
|
|
25,611,675
|
|
|
|
27,324,525
|
|
|
|
23,154,264
|
|
Payables to contractors and equipment suppliers
|
|
|
50,376,846
|
|
|
|
63,154,514
|
|
|
|
48,102,264
|
|
Cash dividends payable
|
|
|
181,626,763
|
|
|
|
|
|
|
|
155,696,382
|
|
Accrued expenses and other current liabilities
|
|
|
21,005,399
|
|
|
|
20,713,259
|
|
|
|
20,189,411
|
|
(Continued)
- 30 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Bonds payable (including long-term liabilities-current portion)
|
|
$
|
179,155,925
|
|
|
$
|
191,193,557
|
|
|
$
|
203,276,211
|
|
Long-term bank loans (including long-term liabilities-current portion)
|
|
|
26,620
|
|
|
|
31,460
|
|
|
|
36,300
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
21,313,011
|
|
|
|
26,670,622
|
|
|
|
24,412,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
533,944,010
|
|
|
$
|
387,237,272
|
|
|
$
|
513,789,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
|
Note:
|
Including financial assets carried at cost.
|
|
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 forward exchange 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 and the derivatives
financial instruments 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 six months ended June 30, 2017 and 2016 would have
decreased by NT$503,920 thousand and NT$89,642 thousand, respectively, and the other comprehensive income for the six months ended June 30, 2017 would have decreased by NT$34,770 thousand.
- 31 -
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$110 thousand and NT$151 thousand for the six months ended June 30, 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.
Based on a sensitivity analysis performed for the six months ended June 30, 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$1,717,186 thousand and NT$607,921 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 six months ended
June 30, 2017 and 2016, the other comprehensive income would have decreased by NT$329,734 thousand and NT$328,089 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 June 30, 2017,
December 31, 2016 and June 30, 2016, the Companys ten largest customers accounted for 70%, 74% and 69% of accounts receivable, respectively. The Company believes the concentration of credit risk is not material for the remaining
accounts receivable.
- 32 -
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.
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
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
54,765,829
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
54,765,829
|
|
Accounts payable (including related parties)
|
|
|
25,611,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,611,675
|
|
Payables to contractors and equipment suppliers
|
|
|
50,376,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,376,846
|
|
Accrued expenses and other current liabilities
|
|
|
21,005,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,005,399
|
|
Bonds payable
|
|
|
82,131,653
|
|
|
|
66,178,944
|
|
|
|
13,623,019
|
|
|
|
22,784,016
|
|
|
|
184,717,632
|
|
Long-term bank loans
|
|
|
10,382
|
|
|
|
17,389
|
|
|
|
|
|
|
|
|
|
|
|
27,771
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
10,494,634
|
|
|
|
10,732,609
|
|
|
|
85,768
|
|
|
|
|
|
|
|
21,313,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
244,396,418
|
|
|
|
76,928,942
|
|
|
|
13,708,787
|
|
|
|
22,784,016
|
|
|
|
357,818,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
43,064,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,064,181
|
|
Inflows
|
|
|
(43,297,762
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,297,762
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(233,581
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(233,581
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
244,162,837
|
|
|
$
|
76,928,942
|
|
|
$
|
13,708,787
|
|
|
$
|
22,784,016
|
|
|
$
|
357,584,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 33 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
2-3
Years
|
|
|
4-5 Years
|
|
|
5+ Years
|
|
|
Total
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
38,743,592
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
38,743,592
|
|
Accounts payable (including related parties)
|
|
|
23,154,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,154,264
|
|
Payables to contractors and equipment suppliers
|
|
|
48,102,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,102,264
|
|
Accrued expenses and other current liabilities
|
|
|
20,189,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,189,411
|
|
Bonds payable
|
|
|
24,797,738
|
|
|
|
101,437,838
|
|
|
|
62,143,440
|
|
|
|
23,174,836
|
|
|
|
211,553,852
|
|
Long-term bank loans
|
|
|
11,040
|
|
|
|
21,056
|
|
|
|
6,353
|
|
|
|
|
|
|
|
38,449
|
|
Guarantee deposits (including those classified under accrued expenses and other current
liabilities)
|
|
|
6,461,850
|
|
|
|
13,107,964
|
|
|
|
4,842,450
|
|
|
|
|
|
|
|
24,412,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
161,460,159
|
|
|
|
114,566,858
|
|
|
|
66,992,243
|
|
|
|
23,174,836
|
|
|
|
366,194,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
35,970,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35,970,330
|
|
Inflows
|
|
|
(35,960,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,960,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outflows
|
|
|
13,404,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,404,146
|
|
Inflows
|
|
|
(13,452,895
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13,452,895
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,749
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,749
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
161,421,134
|
|
|
$
|
114,566,858
|
|
|
$
|
66,992,243
|
|
|
$
|
23,174,836
|
|
|
$
|
366,155,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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).
|
- 34 -
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
209,435
|
|
|
$
|
|
|
|
$
|
209,435
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
|
|
|
|
4,725,106
|
|
|
|
|
|
|
|
4,725,106
|
|
Forward exchange contracts
|
|
|
|
|
|
|
60,710
|
|
|
|
|
|
|
|
60,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
4,995,251
|
|
|
$
|
|
|
|
$
|
4,995,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
32,784,516
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
32,784,516
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
21,861,711
|
|
|
|
|
|
|
|
|
|
|
|
21,861,711
|
|
Asset-backed securities
|
|
|
|
|
|
|
12,005,502
|
|
|
|
|
|
|
|
12,005,502
|
|
Government bonds
|
|
|
6,607,624
|
|
|
|
|
|
|
|
|
|
|
|
6,607,624
|
|
Publicly traded stocks
|
|
|
2,635,124
|
|
|
|
|
|
|
|
|
|
|
|
2,635,124
|
|
Commercial paper
|
|
|
|
|
|
|
358,175
|
|
|
|
|
|
|
|
358,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
63,888,975
|
|
|
$
|
12,363,677
|
|
|
$
|
|
|
|
$
|
76,252,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
4,783
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
4,783
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
19,734
|
|
|
|
|
|
|
|
19,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,783
|
|
|
$
|
19,734
|
|
|
$
|
|
|
|
$
|
24,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
82,552
|
|
|
$
|
|
|
|
$
|
82,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
19
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 35 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
Financial assets at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
143,834
|
|
|
$
|
|
|
|
$
|
143,834
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
62,917
|
|
|
|
|
|
|
|
62,917
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposit
|
|
|
|
|
|
|
1,614,156
|
|
|
|
|
|
|
|
1,614,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
1,820,907
|
|
|
$
|
|
|
|
$
|
1,820,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds
|
|
$
|
12,525,209
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
12,525,209
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
6,379,861
|
|
|
|
|
|
|
|
|
|
|
|
6,379,861
|
|
Money market funds
|
|
|
6,128,310
|
|
|
|
|
|
|
|
|
|
|
|
6,128,310
|
|
Asset-backed securities
|
|
|
|
|
|
|
6,029,248
|
|
|
|
|
|
|
|
6,029,248
|
|
Publicly traded stocks
|
|
|
2,893,386
|
|
|
|
|
|
|
|
|
|
|
|
2,893,386
|
|
Government bonds
|
|
|
2,366,035
|
|
|
|
|
|
|
|
|
|
|
|
2,366,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
30,292,801
|
|
|
$
|
6,029,248
|
|
|
$
|
|
|
|
$
|
36,322,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 36 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
Financial liabilities at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
$
|
|
|
|
$
|
160,423
|
|
|
$
|
|
|
|
$
|
160,423
|
|
Cross currency swap contracts
|
|
|
|
|
|
|
7,408
|
|
|
|
|
|
|
|
7,408
|
|
Designated as at FVTPL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts
|
|
|
|
|
|
|
10,873
|
|
|
|
|
|
|
|
10,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
178,704
|
|
|
$
|
|
|
|
$
|
178,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate futures contracts
|
|
$
|
4,217
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
4,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Concluded)
There were no transfers between Level 1 and Level 2 for the six months ended June 30, 2017 and 2016, respectively.
There were no purchases and disposals for assets classified as Level 3 for the six months ended June 30, 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, corporate bonds and money market funds 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.
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
|
|
June 30, 2016
|
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
Carrying
Amount
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
21,157,966
|
|
|
$
|
21,340,032
|
|
|
$
|
23,849,701
|
|
|
$
|
23,996,429
|
|
|
$
|
26,988,011
|
|
|
$
|
27,051,457
|
|
Negotiable certificate of deposit
|
|
|
4,562,100
|
|
|
|
4,570,388
|
|
|
|
4,829,850
|
|
|
|
4,847,785
|
|
|
|
4,842,450
|
|
|
|
4,849,988
|
|
Structured product
|
|
|
1,520,700
|
|
|
|
1,513,255
|
|
|
|
1,609,950
|
|
|
|
1,609,738
|
|
|
|
2,000,000
|
|
|
|
1,997,850
|
|
Commercial paper
|
|
|
498,818
|
|
|
|
499,928
|
|
|
|
8,628,176
|
|
|
|
8,630,769
|
|
|
|
798,708
|
|
|
|
799,370
|
|
|
|
|
|
|
|
|
Financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
|
179,155,925
|
|
|
|
181,206,172
|
|
|
|
191,193,557
|
|
|
|
192,845,296
|
|
|
|
203,276,211
|
|
|
|
205,939,533
|
|
- 37 -
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
21,340,032
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
21,340,032
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
4,570,388
|
|
|
|
|
|
|
|
4,570,388
|
|
Structured product
|
|
|
|
|
|
|
1,513,255
|
|
|
|
|
|
|
|
1,513,255
|
|
Commercial paper
|
|
|
|
|
|
|
499,928
|
|
|
|
|
|
|
|
499,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
21,340,032
|
|
|
$
|
6,583,571
|
|
|
$
|
|
|
|
$
|
27,923,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
181,206,172
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
181,206,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate bonds/Bank debentures
|
|
$
|
27,051,457
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
27,051,457
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
4,849,988
|
|
|
|
|
|
|
|
4,849,988
|
|
Structured product
|
|
|
|
|
|
|
1,997,850
|
|
|
|
|
|
|
|
1,997,850
|
|
Commercial paper
|
|
|
|
|
|
|
799,370
|
|
|
|
|
|
|
|
799,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,051,457
|
|
|
$
|
7,647,208
|
|
|
$
|
|
|
|
$
|
34,698,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable
|
|
$
|
205,939,533
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
205,939,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 38 -
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 June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from sale of goods
|
|
Associates
|
|
$
|
1,978,999
|
|
|
$
|
957,496
|
|
|
$
|
3,503,149
|
|
|
$
|
2,562,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue from royalties
|
|
Associates
|
|
$
|
123,501
|
|
|
$
|
137,376
|
|
|
$
|
241,276
|
|
|
$
|
249,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
|
|
$
|
2,257,852
|
|
|
$
|
2,441,794
|
|
|
$
|
4,885,920
|
|
|
$
|
4,787,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 39 -
|
d.
|
Receivables from related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
|
Item
|
|
Related Party Name
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
GUC
|
|
$
|
427,943
|
|
|
$
|
969,136
|
|
|
$
|
423,963
|
|
|
|
Others
|
|
|
8,058
|
|
|
|
423
|
|
|
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
436,001
|
|
|
$
|
969,559
|
|
|
$
|
424,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
VIS
|
|
$
|
1,474,583
|
|
|
$
|
86,038
|
|
|
$
|
1,296,830
|
|
|
|
SSMC
|
|
|
57,619
|
|
|
|
60,641
|
|
|
|
54,395
|
|
|
|
Others
|
|
|
119
|
|
|
|
109
|
|
|
|
195,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,532,321
|
|
|
$
|
146,788
|
|
|
$
|
1,546,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e.
|
Payables to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
|
Item
|
|
Related Party Name
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
SSMC
|
|
$
|
458,644
|
|
|
$
|
506,121
|
|
|
$
|
257,953
|
|
|
|
VIS
|
|
|
416,232
|
|
|
|
587,407
|
|
|
|
485,679
|
|
|
|
Xintec
|
|
|
203,620
|
|
|
|
124,541
|
|
|
|
264,153
|
|
|
|
Others
|
|
|
23,280
|
|
|
|
44,105
|
|
|
|
29,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,101,776
|
|
|
$
|
1,262,174
|
|
|
$
|
1,037,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f.
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advance receipts
|
|
Associates
|
|
$
|
802,325
|
|
|
$
|
210,791
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
Item
|
|
Related Party Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing expenses
|
|
Associates
|
|
$
|
306,338
|
|
|
$
|
387,637
|
|
|
$
|
562,995
|
|
|
$
|
773,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
Associates
|
|
$
|
16,634
|
|
|
$
|
27,986
|
|
|
$
|
31,123
|
|
|
$
|
69,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
- 40 -
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 and six months ended June 30, 2017 and 2016 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30
|
|
|
Six Months Ended June 30
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Short-term employee benefits
|
|
$
|
464,115
|
|
|
$
|
477,001
|
|
|
$
|
991,168
|
|
|
$
|
851,777
|
|
Post-employment benefits
|
|
|
947
|
|
|
|
1,073
|
|
|
|
2,093
|
|
|
|
2,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
465,062
|
|
|
$
|
478,074
|
|
|
$
|
993,261
|
|
|
$
|
853,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2017, December 31, 2016 and June 30, 2016, the aforementioned other financial assets amounted to NT$177,567 thousand, NT$185,698 thousand and
NT$154,829 thousand, respectively.
31.
|
SIGNIFICANT OPERATING LEASE ARRANGEMENTS
|
The Companys major significant operating
leases are arrangements on several parcels of land and office premises.
Future minimum lease payments under the above
non-cancellable
operating leases are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
|
December 31,
2016
|
|
|
June 30,
2016
|
|
|
|
|
|
Not later than 1 year
|
|
$
|
1,314,592
|
|
|
$
|
1,321,546
|
|
|
$
|
1,314,854
|
|
Later than 1 year and not later than 5 years
|
|
|
3,729,082
|
|
|
|
3,677,432
|
|
|
|
3,945,083
|
|
Later than 5 years
|
|
|
6,510,866
|
|
|
|
6,623,957
|
|
|
|
7,807,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,554,540
|
|
|
$
|
11,622,935
|
|
|
$
|
13,067,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 41 -
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 June 30, 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 June 30, 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 June 30, 2017, TSMC has paid EUR260,201 thousand to ASML under the research and development funding agreement.
|
d.
|
In May 2017, Mr. Uri Cohen filed a complaint in the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America and other companies infringe several U.S. patents. The outcome cannot
be determined and the Company cannot make a reliable estimate of the contingent liability at this time.
|
|
e.
|
Amounts available under unused letters of credit as of June 30, 2017, December 31, 2016 and June 30, 2016 were NT$97,325 thousand, NT$122,356 thousand and NT$122,675 thousand, respectively.
|
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.
- 42 -
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)
|
|
|
|
|
|
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
4,390,391
|
|
|
|
30.414
|
|
|
$
|
133,529,339
|
|
USD
|
|
|
412,765
|
|
|
|
6.780
|
(Note 2)
|
|
|
12,553,839
|
|
EUR
|
|
|
84,297
|
|
|
|
34.77
|
|
|
|
2,930,992
|
|
JPY
|
|
|
893,511
|
|
|
|
0.2710
|
|
|
|
242,142
|
|
Non-monetary
items
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
190,998
|
|
|
|
3.90
|
|
|
|
744,891
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
4,018,068
|
|
|
|
30.414
|
|
|
|
122,205,531
|
|
EUR
|
|
|
330,722
|
|
|
|
34.77
|
|
|
|
11,499,188
|
|
JPY
|
|
|
34,041,471
|
|
|
|
0.2710
|
|
|
|
9,225,239
|
|
|
|
|
|
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
|
|
|
|
|
|
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
|
|
(Continued)
- 43 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currencies
(In Thousands)
|
|
|
Exchange Rate
(Note 1)
|
|
|
Carrying
Amount
(In Thousands)
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
$
|
4,531,293
|
|
|
|
32.283
|
|
|
$
|
146,283,737
|
|
EUR
|
|
|
20,955
|
|
|
|
35.89
|
|
|
|
752,085
|
|
JPY
|
|
|
21,406,874
|
|
|
|
0.3134
|
|
|
|
6,708,914
|
|
Non-monetary
items
|
|
|
|
|
|
|
|
|
|
|
|
|
HKD
|
|
|
130,849
|
|
|
|
4.16
|
|
|
|
544,333
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items
|
|
|
|
|
|
|
|
|
|
|
|
|
USD
|
|
|
3,232,481
|
|
|
|
32.283
|
|
|
|
104,354,180
|
|
EUR
|
|
|
81,995
|
|
|
|
35.89
|
|
|
|
2,942,798
|
|
JPY
|
|
|
52,928,214
|
|
|
|
0.3134
|
|
|
|
16,587,702
|
|
(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 and six months ended June 30, 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.
- 44 -
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.
|
- 45 -
TABLE 1
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FINANCINGS PROVIDED
FOR THE SIX MONTHS ENDED
JUNE 30, 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
(Note 4)
|
|
Transaction
Amounts
|
|
|
Reason
for
Financing
(Note 4)
|
|
Allowance
for Bad
Debt
|
|
|
Collateral
|
|
|
Financing
Limits for
Each
Borrowing
Company
(Notes 1
and 2)
|
|
|
Financing
Companys
Total
Financing
Amount
Limits
(Notes 1
and 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
Other receivables from related parties
|
|
Yes
|
|
$
(RMB
|
20,636,060
4,600,000
|
)
|
|
$
(RMB
|
20,636,060
4,600,000
|
)
|
|
$
(RMB
|
7,177,760
1,600,000
|
)
|
|
|
1.5
|
%
|
|
The need for
long-term
financing
|
|
$
|
|
|
|
Operating
capital
|
|
$
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
45,991,492
|
|
|
$
|
45,991,492
|
|
2
|
|
TSMC Global
|
|
TSMC
|
|
Other receivables from related parties
|
|
Yes
|
|
(US$
|
45,621,000
1,500,000
|
)
|
|
(US$
|
45,621,000
1,500,000
|
)
|
|
(US$
|
7,603,500
250,000
|
)
|
|
|
1.27
|
%
|
|
The need for
short-term
financing
|
|
|
|
|
|
Operating
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259,503,712
|
|
|
|
259,503,712
|
|
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.
|
- 46 -
TABLE 2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE SIX MONTHS
ENDED JUNE 30, 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
|
|
$
|
335,421,374
|
|
|
$
(US$
|
34,976,100
1,150,000
|
)
|
|
$
(US$
|
34,976,100
1,150,000
|
)
|
|
$
(US$
|
34,976,100
1,150,000
|
)
|
|
$
|
|
|
|
|
2.61
|
%
|
|
$
|
335,421,374
|
|
|
Yes
|
|
No
|
|
No
|
|
|
|
|
TSMC North America
|
|
Subsidiary
|
|
|
335,421,374
|
|
|
(US$
|
2,530,849
83,213
|
)
|
|
(US$
|
2,530,849
83,213
|
)
|
|
(US$
|
2,530,849
83,213
|
)
|
|
|
|
|
|
|
0.19
|
%
|
|
|
335,421,374
|
|
|
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.
|
- 47 -
TABLE 3
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES HELD
JUNE 30, 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
|
|
June 30, 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
|
|
|
|
|
|
$
|
1,161,873
|
|
|
|
N/A
|
|
|
$
|
1,162,443
|
|
|
|
|
|
|
|
Nan Ya Plastics Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
150,200
|
|
|
|
N/A
|
|
|
|
150,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
|
|
|
|
Held-to-maturity
financial assets
|
|
|
50
|
|
|
|
498,818
|
|
|
|
N/A
|
|
|
|
499,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motech
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
|
58,320
|
|
|
|
1,452,163
|
|
|
|
12
|
|
|
|
1,452,163
|
|
|
|
|
|
|
|
Semiconductor Manufacturing International Corporation
|
|
|
|
|
|
|
|
|
21,105
|
|
|
|
744,891
|
|
|
|
|
|
|
|
744,891
|
|
|
|
|
|
|
|
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$
|
32,753
|
|
|
|
N/A
|
|
|
US$
|
32,753
|
|
|
|
|
|
|
|
Morgan Stanley
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
30,992
|
|
|
|
N/A
|
|
|
US$
|
30,992
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
29,871
|
|
|
|
N/A
|
|
|
US$
|
29,871
|
|
|
|
|
|
|
|
Goldman Sachs Group Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
27,152
|
|
|
|
N/A
|
|
|
US$
|
27,152
|
|
|
|
|
|
|
|
Verizon Communications
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
21,377
|
|
|
|
N/A
|
|
|
US$
|
21,377
|
|
|
|
|
|
|
|
Citigroup Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
20,596
|
|
|
|
N/A
|
|
|
US$
|
20,596
|
|
|
|
|
|
|
|
AT&T Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
19,257
|
|
|
|
N/A
|
|
|
US$
|
19,257
|
|
|
|
|
|
|
|
Abbvie Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
15,128
|
|
|
|
N/A
|
|
|
US$
|
15,128
|
|
|
|
|
|
|
|
PNC Bank NA
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
13,875
|
|
|
|
N/A
|
|
|
US$
|
13,875
|
|
|
|
|
|
|
|
Ford Motor Credit Co LLC
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
13,547
|
|
|
|
N/A
|
|
|
US$
|
13,547
|
|
|
|
|
|
|
|
Microsoft Corp.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
13,393
|
|
|
|
N/A
|
|
|
US$
|
13,393
|
|
|
|
|
|
|
|
Apple Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,638
|
|
|
|
N/A
|
|
|
US$
|
11,638
|
|
|
|
|
|
|
|
Anheuser Busch InBev Fin.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,354
|
|
|
|
N/A
|
|
|
US$
|
11,354
|
|
|
|
|
|
|
|
Westpac Banking Corp.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,474
|
|
|
|
N/A
|
|
|
US$
|
10,474
|
|
|
|
|
|
|
|
BP Capital Markets PLC
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,323
|
|
|
|
N/A
|
|
|
US$
|
10,323
|
|
|
|
|
|
|
|
BMW US Capital LLC
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,302
|
|
|
|
N/A
|
|
|
US$
|
10,302
|
|
|
|
|
|
|
|
Qualcomm, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,093
|
|
|
|
N/A
|
|
|
US$
|
10,093
|
|
|
|
|
|
|
|
Svenska Handelsbanken AB
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,904
|
|
|
|
N/A
|
|
|
US$
|
9,904
|
|
|
|
|
|
|
|
CVS Health Corp.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,768
|
|
|
|
N/A
|
|
|
US$
|
9,768
|
|
|
|
|
|
|
|
Oracle Corp.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,721
|
|
|
|
N/A
|
|
|
US$
|
9,721
|
|
|
|
|
|
|
|
Capital One NA
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,601
|
|
|
|
N/A
|
|
|
US$
|
9,601
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,210
|
|
|
|
N/A
|
|
|
US$
|
9,210
|
|
|
|
|
|
(Continued)
- 48 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Analog Devices, Inc.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
9,014
|
|
|
|
N/A
|
|
|
US$
|
9,014
|
|
|
|
|
|
|
|
Southern Co.
|
|
|
|
|
|
|
|
|
|
US$
|
8,601
|
|
|
|
N/A
|
|
|
US$
|
8,601
|
|
|
|
|
|
|
|
Cardinal Health Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
8,445
|
|
|
|
N/A
|
|
|
US$
|
8,445
|
|
|
|
|
|
|
|
Duke Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
8,181
|
|
|
|
N/A
|
|
|
US$
|
8,181
|
|
|
|
|
|
|
|
Rockwell Collins, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
8,125
|
|
|
|
N/A
|
|
|
US$
|
8,125
|
|
|
|
|
|
|
|
Aviation Capital Group
|
|
|
|
|
|
|
|
|
|
US$
|
8,072
|
|
|
|
N/A
|
|
|
US$
|
8,072
|
|
|
|
|
|
|
|
American Express Credit
|
|
|
|
|
|
|
|
|
|
US$
|
7,817
|
|
|
|
N/A
|
|
|
US$
|
7,817
|
|
|
|
|
|
|
|
ERAC USA Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
7,663
|
|
|
|
N/A
|
|
|
US$
|
7,663
|
|
|
|
|
|
|
|
Ventas Realty LP/Cap Crp.
|
|
|
|
|
|
|
|
|
|
US$
|
7,529
|
|
|
|
N/A
|
|
|
US$
|
7,529
|
|
|
|
|
|
|
|
UBS Group Funding (Switzerland) AG
|
|
|
|
|
|
|
|
|
|
US$
|
7,156
|
|
|
|
N/A
|
|
|
US$
|
7,156
|
|
|
|
|
|
|
|
Reckitt Benckiser Treasury
|
|
|
|
|
|
|
|
|
|
US$
|
7,123
|
|
|
|
N/A
|
|
|
US$
|
7,123
|
|
|
|
|
|
|
|
ABN AMRO Bank N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
7,122
|
|
|
|
N/A
|
|
|
US$
|
7,122
|
|
|
|
|
|
|
|
HSBC Holdings PLC
|
|
|
|
|
|
|
|
|
|
US$
|
6,923
|
|
|
|
N/A
|
|
|
US$
|
6,923
|
|
|
|
|
|
|
|
Credit Suisse New York
|
|
|
|
|
|
|
|
|
|
US$
|
6,878
|
|
|
|
N/A
|
|
|
US$
|
6,878
|
|
|
|
|
|
|
|
Tyson Foods, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,805
|
|
|
|
N/A
|
|
|
US$
|
6,805
|
|
|
|
|
|
|
|
Deutsche Telekom International Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
6,647
|
|
|
|
N/A
|
|
|
US$
|
6,647
|
|
|
|
|
|
|
|
Dow Chemical Co/The
|
|
|
|
|
|
|
|
|
|
US$
|
6,524
|
|
|
|
N/A
|
|
|
US$
|
6,524
|
|
|
|
|
|
|
|
Citizens Bank NA/RI
|
|
|
|
|
|
|
|
|
|
US$
|
6,272
|
|
|
|
N/A
|
|
|
US$
|
6,272
|
|
|
|
|
|
|
|
Dominion Energy, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,251
|
|
|
|
N/A
|
|
|
US$
|
6,251
|
|
|
|
|
|
|
|
Teva Pharmaceuticals Netherlands
|
|
|
|
|
|
|
|
|
|
US$
|
6,243
|
|
|
|
N/A
|
|
|
US$
|
6,243
|
|
|
|
|
|
|
|
Suntrust Banks Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,214
|
|
|
|
N/A
|
|
|
US$
|
6,214
|
|
|
|
|
|
|
|
Daimler Finance NA LLC.
|
|
|
|
|
|
|
|
|
|
US$
|
6,168
|
|
|
|
N/A
|
|
|
US$
|
6,168
|
|
|
|
|
|
|
|
Welltower Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
6,133
|
|
|
|
N/A
|
|
|
US$
|
6,133
|
|
|
|
|
|
|
|
Hyundai Capital America
|
|
|
|
|
|
|
|
|
|
US$
|
6,067
|
|
|
|
N/A
|
|
|
US$
|
6,067
|
|
|
|
|
|
|
|
Sumitomo Mitsui Trust Bank, Limited
|
|
|
|
|
|
|
|
|
|
US$
|
6,043
|
|
|
|
N/A
|
|
|
US$
|
6,043
|
|
|
|
|
|
|
|
Skandinaviska Enskilda Banken AB
|
|
|
|
|
|
|
|
|
|
US$
|
6,038
|
|
|
|
N/A
|
|
|
US$
|
6,038
|
|
|
|
|
|
|
|
BB&T Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
5,994
|
|
|
|
N/A
|
|
|
US$
|
5,994
|
|
|
|
|
|
|
|
Royal Bank of Canada
|
|
|
|
|
|
|
|
|
|
US$
|
5,976
|
|
|
|
N/A
|
|
|
US$
|
5,976
|
|
|
|
|
|
|
|
Mizuho Financial Group
|
|
|
|
|
|
|
|
|
|
US$
|
5,910
|
|
|
|
N/A
|
|
|
US$
|
5,910
|
|
|
|
|
|
|
|
Nextera Energy Capital
|
|
|
|
|
|
|
|
|
|
US$
|
5,887
|
|
|
|
N/A
|
|
|
US$
|
5,887
|
|
|
|
|
|
|
|
Huntington National Bank
|
|
|
|
|
|
|
|
|
|
US$
|
5,814
|
|
|
|
N/A
|
|
|
US$
|
5,814
|
|
|
|
|
|
|
|
Groupe Danone S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
5,796
|
|
|
|
N/A
|
|
|
US$
|
5,796
|
|
|
|
|
|
|
|
Shell International Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
5,765
|
|
|
|
N/A
|
|
|
US$
|
5,765
|
|
|
|
|
|
|
|
Berkshire Hathaway Fin.
|
|
|
|
|
|
|
|
|
|
US$
|
5,754
|
|
|
|
N/A
|
|
|
US$
|
5,754
|
|
|
|
|
|
|
|
Toyota Motor Credit Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,668
|
|
|
|
N/A
|
|
|
US$
|
5,668
|
|
|
|
|
|
|
|
Nordea Bank AB
|
|
|
|
|
|
|
|
|
|
US$
|
5,594
|
|
|
|
N/A
|
|
|
US$
|
5,594
|
|
|
|
|
|
|
|
Mitsubishi UFJ Fin Grp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,585
|
|
|
|
N/A
|
|
|
US$
|
5,585
|
|
|
|
|
|
|
|
Bank of Ny Mellon Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
5,542
|
|
|
|
N/A
|
|
|
US$
|
5,542
|
|
|
|
|
|
|
|
Cisco Systems Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,508
|
|
|
|
N/A
|
|
|
US$
|
5,508
|
|
|
|
|
|
|
|
New York Life Global FDG
|
|
|
|
|
|
|
|
|
|
US$
|
5,461
|
|
|
|
N/A
|
|
|
US$
|
5,461
|
|
|
|
|
|
|
|
Siemens Financieringsmat
|
|
|
|
|
|
|
|
|
|
US$
|
5,445
|
|
|
|
N/A
|
|
|
US$
|
5,445
|
|
|
|
|
|
|
|
CA, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,385
|
|
|
|
N/A
|
|
|
US$
|
5,385
|
|
|
|
|
|
|
|
Enel Finance Intl N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
5,379
|
|
|
|
N/A
|
|
|
US$
|
5,379
|
|
|
|
|
|
|
|
Toronto Dominion Bank
|
|
|
|
|
|
|
|
|
|
US$
|
5,296
|
|
|
|
N/A
|
|
|
US$
|
5,296
|
|
|
|
|
|
|
|
Amgen Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,259
|
|
|
|
N/A
|
|
|
US$
|
5,259
|
|
|
|
|
|
|
|
Jackson Natl Life Global
|
|
|
|
|
|
|
|
|
|
US$
|
5,159
|
|
|
|
N/A
|
|
|
US$
|
5,159
|
|
|
|
|
|
|
|
Sempra Energy
|
|
|
|
|
|
|
|
|
|
US$
|
5,158
|
|
|
|
N/A
|
|
|
US$
|
5,158
|
|
|
|
|
|
|
|
Intl. Bank Recon. & Development
|
|
|
|
|
|
|
|
|
|
US$
|
5,144
|
|
|
|
N/A
|
|
|
US$
|
5,144
|
|
|
|
|
|
|
|
Voya Financial, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
5,037
|
|
|
|
N/A
|
|
|
US$
|
5,037
|
|
|
|
|
|
|
|
Manuf & Traders Trust Co.
|
|
|
|
|
|
|
|
|
|
US$
|
5,006
|
|
|
|
N/A
|
|
|
US$
|
5,006
|
|
|
|
|
|
|
|
Macquarie Group Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
5,004
|
|
|
|
N/A
|
|
|
US$
|
5,004
|
|
|
|
|
|
|
|
Reliance Stand Life II
|
|
|
|
|
|
|
|
|
|
US$
|
4,970
|
|
|
|
N/A
|
|
|
US$
|
4,970
|
|
|
|
|
|
|
|
American Intl. Group
|
|
|
|
|
|
|
|
|
|
US$
|
4,859
|
|
|
|
N/A
|
|
|
US$
|
4,859
|
|
|
|
|
|
|
|
Twenty-First Century Fox Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,827
|
|
|
|
N/A
|
|
|
US$
|
4,827
|
|
|
|
|
|
|
|
Air Liquide Finance
|
|
|
|
|
|
|
|
|
|
US$
|
4,756
|
|
|
|
N/A
|
|
|
US$
|
4,756
|
|
|
|
|
|
|
|
Fifth Third Bank
|
|
|
|
|
|
|
|
|
|
US$
|
4,714
|
|
|
|
N/A
|
|
|
US$
|
4,714
|
|
|
|
|
|
|
|
ING Bank N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
4,699
|
|
|
|
N/A
|
|
|
US$
|
4,699
|
|
|
|
|
|
|
|
Cadillac Fairview Corp. Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
4,673
|
|
|
|
N/A
|
|
|
US$
|
4,673
|
|
|
|
|
|
(Continued)
- 49 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Sumitomo Mitsui Financial Group
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
4,440
|
|
|
|
N/A
|
|
|
US$
|
4,440
|
|
|
|
|
|
|
|
US Bank NA Cincinnati
|
|
|
|
|
|
|
|
|
|
US$
|
4,386
|
|
|
|
N/A
|
|
|
US$
|
4,386
|
|
|
|
|
|
|
|
U.S. Bancorp
|
|
|
|
|
|
|
|
|
|
US$
|
4,309
|
|
|
|
N/A
|
|
|
US$
|
4,309
|
|
|
|
|
|
|
|
Marriott International, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,276
|
|
|
|
N/A
|
|
|
US$
|
4,276
|
|
|
|
|
|
|
|
Oaktree Capital Management, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
4,264
|
|
|
|
N/A
|
|
|
US$
|
4,264
|
|
|
|
|
|
|
|
Lloyds Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
4,227
|
|
|
|
N/A
|
|
|
US$
|
4,227
|
|
|
|
|
|
|
|
Exelon Generation Co. LLC
|
|
|
|
|
|
|
|
|
|
US$
|
4,166
|
|
|
|
N/A
|
|
|
US$
|
4,166
|
|
|
|
|
|
|
|
Schlumberger Hldgs Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
4,143
|
|
|
|
N/A
|
|
|
US$
|
4,143
|
|
|
|
|
|
|
|
Banco Santander, S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
4,111
|
|
|
|
N/A
|
|
|
US$
|
4,111
|
|
|
|
|
|
|
|
Keycorp Pty Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
4,072
|
|
|
|
N/A
|
|
|
US$
|
4,072
|
|
|
|
|
|
|
|
Pepsico Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
4,021
|
|
|
|
N/A
|
|
|
US$
|
4,021
|
|
|
|
|
|
|
|
Mondelez International
|
|
|
|
|
|
|
|
|
|
US$
|
4,002
|
|
|
|
N/A
|
|
|
US$
|
4,002
|
|
|
|
|
|
|
|
Intel Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
4,000
|
|
|
|
N/A
|
|
|
US$
|
4,000
|
|
|
|
|
|
|
|
Fortive Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
3,982
|
|
|
|
N/A
|
|
|
US$
|
3,982
|
|
|
|
|
|
|
|
Wells Fargo Bank NA
|
|
|
|
|
|
|
|
|
|
US$
|
3,912
|
|
|
|
N/A
|
|
|
US$
|
3,912
|
|
|
|
|
|
|
|
Fifth Third Bancorp
|
|
|
|
|
|
|
|
|
|
US$
|
3,808
|
|
|
|
N/A
|
|
|
US$
|
3,808
|
|
|
|
|
|
|
|
Suncorp Metway Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
3,794
|
|
|
|
N/A
|
|
|
US$
|
3,794
|
|
|
|
|
|
|
|
Husky Energy Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,755
|
|
|
|
N/A
|
|
|
US$
|
3,755
|
|
|
|
|
|
|
|
Sprint Spectrum L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
3,727
|
|
|
|
N/A
|
|
|
US$
|
3,727
|
|
|
|
|
|
|
|
Anheuser Busch InBev Worldwide Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,632
|
|
|
|
N/A
|
|
|
US$
|
3,632
|
|
|
|
|
|
|
|
Lam Research Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
3,614
|
|
|
|
N/A
|
|
|
US$
|
3,614
|
|
|
|
|
|
|
|
Canadian Imperial Bank
|
|
|
|
|
|
|
|
|
|
US$
|
3,612
|
|
|
|
N/A
|
|
|
US$
|
3,612
|
|
|
|
|
|
|
|
UBS AG Stamford CT
|
|
|
|
|
|
|
|
|
|
US$
|
3,536
|
|
|
|
N/A
|
|
|
US$
|
3,536
|
|
|
|
|
|
|
|
SES GLOBAL-Americas Holdings
|
|
|
|
|
|
|
|
|
|
US$
|
3,529
|
|
|
|
N/A
|
|
|
US$
|
3,529
|
|
|
|
|
|
|
|
BAT Intl Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
3,496
|
|
|
|
N/A
|
|
|
US$
|
3,496
|
|
|
|
|
|
|
|
Aetna Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,414
|
|
|
|
N/A
|
|
|
US$
|
3,414
|
|
|
|
|
|
|
|
Credit Agricole London
|
|
|
|
|
|
|
|
|
|
US$
|
3,383
|
|
|
|
N/A
|
|
|
US$
|
3,383
|
|
|
|
|
|
|
|
BNP Paribas
|
|
|
|
|
|
|
|
|
|
US$
|
3,357
|
|
|
|
N/A
|
|
|
US$
|
3,357
|
|
|
|
|
|
|
|
Ryder System Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,244
|
|
|
|
N/A
|
|
|
US$
|
3,244
|
|
|
|
|
|
|
|
Pricoa Global Funding I
|
|
|
|
|
|
|
|
|
|
US$
|
3,202
|
|
|
|
N/A
|
|
|
US$
|
3,202
|
|
|
|
|
|
|
|
Air Lease Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
3,141
|
|
|
|
N/A
|
|
|
US$
|
3,141
|
|
|
|
|
|
|
|
Protective Life Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
3,096
|
|
|
|
N/A
|
|
|
US$
|
3,096
|
|
|
|
|
|
|
|
Key Bank N.A.
|
|
|
|
|
|
|
|
|
|
US$
|
3,086
|
|
|
|
N/A
|
|
|
US$
|
3,086
|
|
|
|
|
|
|
|
Time Warner Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
3,038
|
|
|
|
N/A
|
|
|
US$
|
3,038
|
|
|
|
|
|
|
|
Principal Life Global Funding II
|
|
|
|
|
|
|
|
|
|
US$
|
2,788
|
|
|
|
N/A
|
|
|
US$
|
2,788
|
|
|
|
|
|
|
|
Barclays PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,731
|
|
|
|
N/A
|
|
|
US$
|
2,731
|
|
|
|
|
|
|
|
PartnerRe Finance B LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,719
|
|
|
|
N/A
|
|
|
US$
|
2,719
|
|
|
|
|
|
|
|
Chevron Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,646
|
|
|
|
N/A
|
|
|
US$
|
2,646
|
|
|
|
|
|
|
|
LyondellBasell Industries N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
2,563
|
|
|
|
N/A
|
|
|
US$
|
2,563
|
|
|
|
|
|
|
|
Nuveen Finance, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,562
|
|
|
|
N/A
|
|
|
US$
|
2,562
|
|
|
|
|
|
|
|
MetLife Global Funding I
|
|
|
|
|
|
|
|
|
|
US$
|
2,534
|
|
|
|
N/A
|
|
|
US$
|
2,534
|
|
|
|
|
|
|
|
Wm. Wrigley Jr. Co.
|
|
|
|
|
|
|
|
|
|
US$
|
2,504
|
|
|
|
N/A
|
|
|
US$
|
2,504
|
|
|
|
|
|
|
|
Penske Truck Leasing (PTL)
|
|
|
|
|
|
|
|
|
|
US$
|
2,492
|
|
|
|
N/A
|
|
|
US$
|
2,492
|
|
|
|
|
|
|
|
Sumitomo Mitsui Banking
|
|
|
|
|
|
|
|
|
|
US$
|
2,486
|
|
|
|
N/A
|
|
|
US$
|
2,486
|
|
|
|
|
|
|
|
Eastman Chemical Company
|
|
|
|
|
|
|
|
|
|
US$
|
2,458
|
|
|
|
N/A
|
|
|
US$
|
2,458
|
|
|
|
|
|
|
|
Xylem Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,437
|
|
|
|
N/A
|
|
|
US$
|
2,437
|
|
|
|
|
|
|
|
Commonwealth Bank Australia NY
|
|
|
|
|
|
|
|
|
|
US$
|
2,411
|
|
|
|
N/A
|
|
|
US$
|
2,411
|
|
|
|
|
|
|
|
HSBC USA Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,377
|
|
|
|
N/A
|
|
|
US$
|
2,377
|
|
|
|
|
|
|
|
NBCUniversal Media, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,374
|
|
|
|
N/A
|
|
|
US$
|
2,374
|
|
|
|
|
|
|
|
EI du Pont de Nemours
|
|
|
|
|
|
|
|
|
|
US$
|
2,349
|
|
|
|
N/A
|
|
|
US$
|
2,349
|
|
|
|
|
|
|
|
Biogen Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,333
|
|
|
|
N/A
|
|
|
US$
|
2,333
|
|
|
|
|
|
|
|
National Australia Bank/NY
|
|
|
|
|
|
|
|
|
|
US$
|
2,322
|
|
|
|
N/A
|
|
|
US$
|
2,322
|
|
|
|
|
|
|
|
Simon Property Group LP
|
|
|
|
|
|
|
|
|
|
US$
|
2,311
|
|
|
|
N/A
|
|
|
US$
|
2,311
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ
|
|
|
|
|
|
|
|
|
|
US$
|
2,306
|
|
|
|
N/A
|
|
|
US$
|
2,306
|
|
|
|
|
|
|
|
Gilead Sciences Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,277
|
|
|
|
N/A
|
|
|
US$
|
2,277
|
|
|
|
|
|
|
|
Mckesson Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,258
|
|
|
|
N/A
|
|
|
US$
|
2,258
|
|
|
|
|
|
|
|
Inter-American Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
2,239
|
|
|
|
N/A
|
|
|
US$
|
2,239
|
|
|
|
|
|
|
|
Cintas Corporation No. 2
|
|
|
|
|
|
|
|
|
|
US$
|
2,238
|
|
|
|
N/A
|
|
|
US$
|
2,238
|
|
|
|
|
|
|
|
ING Groep N.V.
|
|
|
|
|
|
|
|
|
|
US$
|
2,237
|
|
|
|
N/A
|
|
|
US$
|
2,237
|
|
|
|
|
|
(Continued)
- 50 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Allied World Assurance
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
2,169
|
|
|
|
N/A
|
|
|
US$
|
2,169
|
|
|
|
|
|
|
|
Express Scripts Holding
|
|
|
|
|
|
|
|
|
|
US$
|
2,154
|
|
|
|
N/A
|
|
|
US$
|
2,154
|
|
|
|
|
|
|
|
Celgene Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,139
|
|
|
|
N/A
|
|
|
US$
|
2,139
|
|
|
|
|
|
|
|
HCP Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
2,117
|
|
|
|
N/A
|
|
|
US$
|
2,117
|
|
|
|
|
|
|
|
Sysco Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
2,021
|
|
|
|
N/A
|
|
|
US$
|
2,021
|
|
|
|
|
|
|
|
Lloyds Banking Group PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,019
|
|
|
|
N/A
|
|
|
US$
|
2,019
|
|
|
|
|
|
|
|
Johnson Controls International PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,016
|
|
|
|
N/A
|
|
|
US$
|
2,016
|
|
|
|
|
|
|
|
British Telecommunications PLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,010
|
|
|
|
N/A
|
|
|
US$
|
2,010
|
|
|
|
|
|
|
|
Enterprise Products Operating, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
2,009
|
|
|
|
N/A
|
|
|
US$
|
2,009
|
|
|
|
|
|
|
|
State Street Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
2,009
|
|
|
|
N/A
|
|
|
US$
|
2,009
|
|
|
|
|
|
|
|
Credit Suisse Group Funding Limited
|
|
|
|
|
|
|
|
|
|
US$
|
1,994
|
|
|
|
N/A
|
|
|
US$
|
1,994
|
|
|
|
|
|
|
|
Autozone Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,975
|
|
|
|
N/A
|
|
|
US$
|
1,975
|
|
|
|
|
|
|
|
Danske Bank A/S
|
|
|
|
|
|
|
|
|
|
US$
|
1,969
|
|
|
|
N/A
|
|
|
US$
|
1,969
|
|
|
|
|
|
|
|
The Bear Stearns Companies LLC.
|
|
|
|
|
|
|
|
|
|
US$
|
1,960
|
|
|
|
N/A
|
|
|
US$
|
1,960
|
|
|
|
|
|
|
|
Stryker Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,956
|
|
|
|
N/A
|
|
|
US$
|
1,956
|
|
|
|
|
|
|
|
Magellan Midstream Partners LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,951
|
|
|
|
N/A
|
|
|
US$
|
1,951
|
|
|
|
|
|
|
|
Unitedhealth Group Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,951
|
|
|
|
N/A
|
|
|
US$
|
1,951
|
|
|
|
|
|
|
|
BPCE SA
|
|
|
|
|
|
|
|
|
|
US$
|
1,931
|
|
|
|
N/A
|
|
|
US$
|
1,931
|
|
|
|
|
|
|
|
Capital One Financial Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,913
|
|
|
|
N/A
|
|
|
US$
|
1,913
|
|
|
|
|
|
|
|
Branch Banking & Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,890
|
|
|
|
N/A
|
|
|
US$
|
1,890
|
|
|
|
|
|
|
|
Cooperatieve Rabobank UA/NY
|
|
|
|
|
|
|
|
|
|
US$
|
1,862
|
|
|
|
N/A
|
|
|
US$
|
1,862
|
|
|
|
|
|
|
|
WestRock RKT Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,856
|
|
|
|
N/A
|
|
|
US$
|
1,856
|
|
|
|
|
|
|
|
Suntrust Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,849
|
|
|
|
N/A
|
|
|
US$
|
1,849
|
|
|
|
|
|
|
|
Orange S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
1,840
|
|
|
|
N/A
|
|
|
US$
|
1,840
|
|
|
|
|
|
|
|
Stancorp Financial Group
|
|
|
|
|
|
|
|
|
|
US$
|
1,827
|
|
|
|
N/A
|
|
|
US$
|
1,827
|
|
|
|
|
|
|
|
Aust. & NZ Banking Grp. NY
|
|
|
|
|
|
|
|
|
|
US$
|
1,804
|
|
|
|
N/A
|
|
|
US$
|
1,804
|
|
|
|
|
|
|
|
Regency Centers, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
1,793
|
|
|
|
N/A
|
|
|
US$
|
1,793
|
|
|
|
|
|
|
|
Dominion Energy Gas Holdings
|
|
|
|
|
|
|
|
|
|
US$
|
1,773
|
|
|
|
N/A
|
|
|
US$
|
1,773
|
|
|
|
|
|
|
|
Kimco Realty Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,711
|
|
|
|
N/A
|
|
|
US$
|
1,711
|
|
|
|
|
|
|
|
Pacific Gas & Electric
|
|
|
|
|
|
|
|
|
|
US$
|
1,604
|
|
|
|
N/A
|
|
|
US$
|
1,604
|
|
|
|
|
|
|
|
African Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
1,566
|
|
|
|
N/A
|
|
|
US$
|
1,566
|
|
|
|
|
|
|
|
Realty Income Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,531
|
|
|
|
N/A
|
|
|
US$
|
1,531
|
|
|
|
|
|
|
|
PSEG Power LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,520
|
|
|
|
N/A
|
|
|
US$
|
1,520
|
|
|
|
|
|
|
|
Standard Chartered PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,503
|
|
|
|
N/A
|
|
|
US$
|
1,503
|
|
|
|
|
|
|
|
Guardian Life Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
1,480
|
|
|
|
N/A
|
|
|
US$
|
1,480
|
|
|
|
|
|
|
|
HSBC Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,480
|
|
|
|
N/A
|
|
|
US$
|
1,480
|
|
|
|
|
|
|
|
Oesterreichische Kontrollbank
|
|
|
|
|
|
|
|
|
|
US$
|
1,457
|
|
|
|
N/A
|
|
|
US$
|
1,457
|
|
|
|
|
|
|
|
Texas Eastern Transmission, LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,400
|
|
|
|
N/A
|
|
|
US$
|
1,400
|
|
|
|
|
|
|
|
Walt Disney Company/The
|
|
|
|
|
|
|
|
|
|
US$
|
1,398
|
|
|
|
N/A
|
|
|
US$
|
1,398
|
|
|
|
|
|
|
|
IBM Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,307
|
|
|
|
N/A
|
|
|
US$
|
1,307
|
|
|
|
|
|
|
|
Equifax Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,303
|
|
|
|
N/A
|
|
|
US$
|
1,303
|
|
|
|
|
|
|
|
Philip Morris Intl Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,289
|
|
|
|
N/A
|
|
|
US$
|
1,289
|
|
|
|
|
|
|
|
Visa Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,287
|
|
|
|
N/A
|
|
|
US$
|
1,287
|
|
|
|
|
|
|
|
Eaton Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,284
|
|
|
|
N/A
|
|
|
US$
|
1,284
|
|
|
|
|
|
|
|
Comcast Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,279
|
|
|
|
N/A
|
|
|
US$
|
1,279
|
|
|
|
|
|
|
|
The Western Union Company
|
|
|
|
|
|
|
|
|
|
US$
|
1,276
|
|
|
|
N/A
|
|
|
US$
|
1,276
|
|
|
|
|
|
|
|
Nissan Motor Acceptance
|
|
|
|
|
|
|
|
|
|
US$
|
1,264
|
|
|
|
N/A
|
|
|
US$
|
1,264
|
|
|
|
|
|
|
|
Kroger Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,244
|
|
|
|
N/A
|
|
|
US$
|
1,244
|
|
|
|
|
|
|
|
Consolidated Edison, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,221
|
|
|
|
N/A
|
|
|
US$
|
1,221
|
|
|
|
|
|
|
|
American Airlines
2013-2
|
|
|
|
|
|
|
|
|
|
US$
|
1,216
|
|
|
|
N/A
|
|
|
US$
|
1,216
|
|
|
|
|
|
|
|
Banque Fed Cred Mutuel
|
|
|
|
|
|
|
|
|
|
US$
|
1,179
|
|
|
|
N/A
|
|
|
US$
|
1,179
|
|
|
|
|
|
|
|
ONEOK Partners LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,162
|
|
|
|
N/A
|
|
|
US$
|
1,162
|
|
|
|
|
|
|
|
Public Service Enterprise Group Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,143
|
|
|
|
N/A
|
|
|
US$
|
1,143
|
|
|
|
|
|
|
|
KfW
|
|
|
|
|
|
|
|
|
|
US$
|
1,141
|
|
|
|
N/A
|
|
|
US$
|
1,141
|
|
|
|
|
|
|
|
DXC Technology Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,130
|
|
|
|
N/A
|
|
|
US$
|
1,130
|
|
|
|
|
|
|
|
ERP Operating LP
|
|
|
|
|
|
|
|
|
|
US$
|
1,122
|
|
|
|
N/A
|
|
|
US$
|
1,122
|
|
|
|
|
|
|
|
Berkshire Hathaway Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,121
|
|
|
|
N/A
|
|
|
US$
|
1,121
|
|
|
|
|
|
|
|
Medtronic Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,099
|
|
|
|
N/A
|
|
|
US$
|
1,099
|
|
|
|
|
|
|
|
Wesfarmers Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
1,097
|
|
|
|
N/A
|
|
|
US$
|
1,097
|
|
|
|
|
|
(Continued)
- 51 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
International Paper Company
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
1,091
|
|
|
|
N/A
|
|
|
US$
|
1,091
|
|
|
|
|
|
|
|
Marsh & Mclennan Cos Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,090
|
|
|
|
N/A
|
|
|
US$
|
1,090
|
|
|
|
|
|
|
|
Cigna Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
1,085
|
|
|
|
N/A
|
|
|
US$
|
1,085
|
|
|
|
|
|
|
|
Merck & Co Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,058
|
|
|
|
N/A
|
|
|
US$
|
1,058
|
|
|
|
|
|
|
|
UBS AG London
|
|
|
|
|
|
|
|
|
|
US$
|
1,055
|
|
|
|
N/A
|
|
|
US$
|
1,055
|
|
|
|
|
|
|
|
EOG Resources, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,050
|
|
|
|
N/A
|
|
|
US$
|
1,050
|
|
|
|
|
|
|
|
Lincoln National Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,048
|
|
|
|
N/A
|
|
|
US$
|
1,048
|
|
|
|
|
|
|
|
Berkshire Hathaway Energy Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,030
|
|
|
|
N/A
|
|
|
US$
|
1,030
|
|
|
|
|
|
|
|
Statoil ASA
|
|
|
|
|
|
|
|
|
|
US$
|
1,025
|
|
|
|
N/A
|
|
|
US$
|
1,025
|
|
|
|
|
|
|
|
Amazon.com Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,018
|
|
|
|
N/A
|
|
|
US$
|
1,018
|
|
|
|
|
|
|
|
Altera Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,013
|
|
|
|
N/A
|
|
|
US$
|
1,013
|
|
|
|
|
|
|
|
HP Enterprise Co.
|
|
|
|
|
|
|
|
|
|
US$
|
1,012
|
|
|
|
N/A
|
|
|
US$
|
1,012
|
|
|
|
|
|
|
|
Macquarie Bank Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
1,011
|
|
|
|
N/A
|
|
|
US$
|
1,011
|
|
|
|
|
|
|
|
Home Depot Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,007
|
|
|
|
N/A
|
|
|
US$
|
1,007
|
|
|
|
|
|
|
|
John Deere Capital Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
1,004
|
|
|
|
N/A
|
|
|
US$
|
1,004
|
|
|
|
|
|
|
|
Harley-Davidson Financial Services, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,004
|
|
|
|
N/A
|
|
|
US$
|
1,004
|
|
|
|
|
|
|
|
United Technologies Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
1,001
|
|
|
|
N/A
|
|
|
US$
|
1,001
|
|
|
|
|
|
|
|
Georgia-Pacific LLC
|
|
|
|
|
|
|
|
|
|
US$
|
985
|
|
|
|
N/A
|
|
|
US$
|
985
|
|
|
|
|
|
|
|
Capital One Bank (USA), NA
|
|
|
|
|
|
|
|
|
|
US$
|
978
|
|
|
|
N/A
|
|
|
US$
|
978
|
|
|
|
|
|
|
|
National Retail Properties, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
977
|
|
|
|
N/A
|
|
|
US$
|
977
|
|
|
|
|
|
|
|
Duke Realty LP
|
|
|
|
|
|
|
|
|
|
US$
|
973
|
|
|
|
N/A
|
|
|
US$
|
973
|
|
|
|
|
|
|
|
Exxon Mobil Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
956
|
|
|
|
N/A
|
|
|
US$
|
956
|
|
|
|
|
|
|
|
Duke Energy Progress Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
951
|
|
|
|
N/A
|
|
|
US$
|
951
|
|
|
|
|
|
|
|
PPL Capital Funding, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
934
|
|
|
|
N/A
|
|
|
US$
|
934
|
|
|
|
|
|
|
|
Glaxosmithkline Cap. Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
932
|
|
|
|
N/A
|
|
|
US$
|
932
|
|
|
|
|
|
|
|
Coca Cola Femsa S.A.B. de C.V.
|
|
|
|
|
|
|
|
|
|
US$
|
929
|
|
|
|
N/A
|
|
|
US$
|
929
|
|
|
|
|
|
|
|
Southern Electric Generating Company
|
|
|
|
|
|
|
|
|
|
US$
|
904
|
|
|
|
N/A
|
|
|
US$
|
904
|
|
|
|
|
|
|
|
Lockheed Martin Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
902
|
|
|
|
N/A
|
|
|
US$
|
902
|
|
|
|
|
|
|
|
CNOOC Finance (2011) Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
894
|
|
|
|
N/A
|
|
|
US$
|
894
|
|
|
|
|
|
|
|
Federal Realty Invs Trust
|
|
|
|
|
|
|
|
|
|
US$
|
878
|
|
|
|
N/A
|
|
|
US$
|
878
|
|
|
|
|
|
|
|
Mastercard Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
857
|
|
|
|
N/A
|
|
|
US$
|
857
|
|
|
|
|
|
|
|
Alterra Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
842
|
|
|
|
N/A
|
|
|
US$
|
842
|
|
|
|
|
|
|
|
Metlife Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
841
|
|
|
|
N/A
|
|
|
US$
|
841
|
|
|
|
|
|
|
|
Huntington Bancshares
|
|
|
|
|
|
|
|
|
|
US$
|
838
|
|
|
|
N/A
|
|
|
US$
|
838
|
|
|
|
|
|
|
|
Nucor Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
830
|
|
|
|
N/A
|
|
|
US$
|
830
|
|
|
|
|
|
|
|
Pacific LifeCorp
|
|
|
|
|
|
|
|
|
|
US$
|
820
|
|
|
|
N/A
|
|
|
US$
|
820
|
|
|
|
|
|
|
|
AXIS Specialty Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
819
|
|
|
|
N/A
|
|
|
US$
|
819
|
|
|
|
|
|
|
|
Bank Of Montreal
|
|
|
|
|
|
|
|
|
|
US$
|
815
|
|
|
|
N/A
|
|
|
US$
|
815
|
|
|
|
|
|
|
|
Aon PLC
|
|
|
|
|
|
|
|
|
|
US$
|
814
|
|
|
|
N/A
|
|
|
US$
|
814
|
|
|
|
|
|
|
|
Societe Generale Group
|
|
|
|
|
|
|
|
|
|
US$
|
808
|
|
|
|
N/A
|
|
|
US$
|
808
|
|
|
|
|
|
|
|
Manulife Financial Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
807
|
|
|
|
N/A
|
|
|
US$
|
807
|
|
|
|
|
|
|
|
Activision Blizzard
|
|
|
|
|
|
|
|
|
|
US$
|
799
|
|
|
|
N/A
|
|
|
US$
|
799
|
|
|
|
|
|
|
|
State Grid Overseas Investment Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
798
|
|
|
|
N/A
|
|
|
US$
|
798
|
|
|
|
|
|
|
|
Spectra Energy Partners, LP
|
|
|
|
|
|
|
|
|
|
US$
|
789
|
|
|
|
N/A
|
|
|
US$
|
789
|
|
|
|
|
|
|
|
Sinopec Capital (2013) Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
780
|
|
|
|
N/A
|
|
|
US$
|
780
|
|
|
|
|
|
|
|
Cox Communications, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
778
|
|
|
|
N/A
|
|
|
US$
|
778
|
|
|
|
|
|
|
|
AIG Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
765
|
|
|
|
N/A
|
|
|
US$
|
765
|
|
|
|
|
|
|
|
Baidu, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
760
|
|
|
|
N/A
|
|
|
US$
|
760
|
|
|
|
|
|
|
|
Crown Castle Towers LLC
|
|
|
|
|
|
|
|
|
|
US$
|
753
|
|
|
|
N/A
|
|
|
US$
|
753
|
|
|
|
|
|
|
|
CMS Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
752
|
|
|
|
N/A
|
|
|
US$
|
752
|
|
|
|
|
|
|
|
Norfolk Southern Railway Co.
|
|
|
|
|
|
|
|
|
|
US$
|
724
|
|
|
|
N/A
|
|
|
US$
|
724
|
|
|
|
|
|
|
|
APT Pipelines Ltd.
|
|
|
|
|
|
|
|
|
|
US$
|
724
|
|
|
|
N/A
|
|
|
US$
|
724
|
|
|
|
|
|
|
|
Baker Hughes Incorporated
|
|
|
|
|
|
|
|
|
|
US$
|
721
|
|
|
|
N/A
|
|
|
US$
|
721
|
|
|
|
|
|
|
|
DTE Electric Company
|
|
|
|
|
|
|
|
|
|
US$
|
718
|
|
|
|
N/A
|
|
|
US$
|
718
|
|
|
|
|
|
|
|
Regions Financial Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
717
|
|
|
|
N/A
|
|
|
US$
|
717
|
|
|
|
|
|
|
|
American Honda Finance
|
|
|
|
|
|
|
|
|
|
US$
|
714
|
|
|
|
N/A
|
|
|
US$
|
714
|
|
|
|
|
|
|
|
Total Capital International S.A.
|
|
|
|
|
|
|
|
|
|
US$
|
706
|
|
|
|
N/A
|
|
|
US$
|
706
|
|
|
|
|
|
|
|
Scentre Group
|
|
|
|
|
|
|
|
|
|
US$
|
702
|
|
|
|
N/A
|
|
|
US$
|
702
|
|
|
|
|
|
|
|
TTX Co.
|
|
|
|
|
|
|
|
|
|
US$
|
701
|
|
|
|
N/A
|
|
|
US$
|
701
|
|
|
|
|
|
(Continued)
- 52 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Mattel Inc.
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
700
|
|
|
N/A
|
|
US$
|
700
|
|
|
|
|
|
|
|
Rochester Gas & Electric
|
|
|
|
|
|
|
|
|
|
US$
|
695
|
|
|
N/A
|
|
US$
|
695
|
|
|
|
|
|
|
|
Continental Airlines Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
681
|
|
|
N/A
|
|
US$
|
681
|
|
|
|
|
|
|
|
Ohio Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
669
|
|
|
N/A
|
|
US$
|
669
|
|
|
|
|
|
|
|
Entergy Louisiana, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
663
|
|
|
N/A
|
|
US$
|
663
|
|
|
|
|
|
|
|
Athene Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
653
|
|
|
N/A
|
|
US$
|
653
|
|
|
|
|
|
|
|
RBC USA Holdco Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
653
|
|
|
N/A
|
|
US$
|
653
|
|
|
|
|
|
|
|
Grupo Bimbo, S.A.B. de C.V.
|
|
|
|
|
|
|
|
|
|
US$
|
643
|
|
|
N/A
|
|
US$
|
643
|
|
|
|
|
|
|
|
Alexandria Real Estate Equities
|
|
|
|
|
|
|
|
|
|
US$
|
642
|
|
|
N/A
|
|
US$
|
642
|
|
|
|
|
|
|
|
Texas Instruments, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
639
|
|
|
N/A
|
|
US$
|
639
|
|
|
|
|
|
|
|
Liberty Property LP
|
|
|
|
|
|
|
|
|
|
US$
|
637
|
|
|
N/A
|
|
US$
|
637
|
|
|
|
|
|
|
|
Potash Corp Saskatchewan Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
636
|
|
|
N/A
|
|
US$
|
636
|
|
|
|
|
|
|
|
Life Technologies Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
622
|
|
|
N/A
|
|
US$
|
622
|
|
|
|
|
|
|
|
Dr Pepper Snapple Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
617
|
|
|
N/A
|
|
US$
|
617
|
|
|
|
|
|
|
|
Daiwa Securities Group
|
|
|
|
|
|
|
|
|
|
US$
|
615
|
|
|
N/A
|
|
US$
|
615
|
|
|
|
|
|
|
|
Altria Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
610
|
|
|
N/A
|
|
US$
|
610
|
|
|
|
|
|
|
|
ABC Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
610
|
|
|
N/A
|
|
US$
|
610
|
|
|
|
|
|
|
|
Kimberly Clark Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
603
|
|
|
N/A
|
|
US$
|
603
|
|
|
|
|
|
|
|
Host Hotels & Resorts, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
595
|
|
|
N/A
|
|
US$
|
595
|
|
|
|
|
|
|
|
Mcdonalds Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
587
|
|
|
N/A
|
|
US$
|
587
|
|
|
|
|
|
|
|
MUFG Union Bank, N.A.
|
|
|
|
|
|
|
|
|
|
US$
|
585
|
|
|
N/A
|
|
US$
|
585
|
|
|
|
|
|
|
|
CenterPoint Energy Resources
|
|
|
|
|
|
|
|
|
|
US$
|
583
|
|
|
N/A
|
|
US$
|
583
|
|
|
|
|
|
|
|
AvalonBay Communities
|
|
|
|
|
|
|
|
|
|
US$
|
581
|
|
|
N/A
|
|
US$
|
581
|
|
|
|
|
|
|
|
AXIS Specialty Finance PLC
|
|
|
|
|
|
|
|
|
|
US$
|
578
|
|
|
N/A
|
|
US$
|
578
|
|
|
|
|
|
|
|
Boston Properties LP
|
|
|
|
|
|
|
|
|
|
US$
|
560
|
|
|
N/A
|
|
US$
|
560
|
|
|
|
|
|
|
|
Bunge Limited Finance Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
559
|
|
|
N/A
|
|
US$
|
559
|
|
|
|
|
|
|
|
Fédération des caisses
|
|
|
|
|
|
|
|
|
|
US$
|
550
|
|
|
N/A
|
|
US$
|
550
|
|
|
|
|
|
|
|
Prudential Financial Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
543
|
|
|
N/A
|
|
US$
|
543
|
|
|
|
|
|
|
|
Digital Realty Trust, L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
541
|
|
|
N/A
|
|
US$
|
541
|
|
|
|
|
|
|
|
Brambles USA Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
540
|
|
|
N/A
|
|
US$
|
540
|
|
|
|
|
|
|
|
OReilly Automotive Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
540
|
|
|
N/A
|
|
US$
|
540
|
|
|
|
|
|
|
|
Southwestern Electric Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
532
|
|
|
N/A
|
|
US$
|
532
|
|
|
|
|
|
|
|
TD Ameritrade Holding Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
527
|
|
|
N/A
|
|
US$
|
527
|
|
|
|
|
|
|
|
Regency Centers Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
518
|
|
|
N/A
|
|
US$
|
518
|
|
|
|
|
|
|
|
Burlington Northern Santa Fe Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
515
|
|
|
N/A
|
|
US$
|
515
|
|
|
|
|
|
|
|
Walgreens Boots Alliance
|
|
|
|
|
|
|
|
|
|
US$
|
508
|
|
|
N/A
|
|
US$
|
508
|
|
|
|
|
|
|
|
Swedbank AB
|
|
|
|
|
|
|
|
|
|
US$
|
506
|
|
|
N/A
|
|
US$
|
506
|
|
|
|
|
|
|
|
CBS Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
505
|
|
|
N/A
|
|
US$
|
505
|
|
|
|
|
|
|
|
Halliburton Co.
|
|
|
|
|
|
|
|
|
|
US$
|
501
|
|
|
N/A
|
|
US$
|
501
|
|
|
|
|
|
|
|
MassMutual Global Funding
|
|
|
|
|
|
|
|
|
|
US$
|
489
|
|
|
N/A
|
|
US$
|
489
|
|
|
|
|
|
|
|
Narragansett Electric
|
|
|
|
|
|
|
|
|
|
US$
|
475
|
|
|
N/A
|
|
US$
|
475
|
|
|
|
|
|
|
|
Comerica Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
474
|
|
|
N/A
|
|
US$
|
474
|
|
|
|
|
|
|
|
Spire, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
464
|
|
|
N/A
|
|
US$
|
464
|
|
|
|
|
|
|
|
Texas-New
Mexico Power
|
|
|
|
|
|
|
|
|
|
US$
|
449
|
|
|
N/A
|
|
US$
|
449
|
|
|
|
|
|
|
|
Canadian Pacific Railway Company
|
|
|
|
|
|
|
|
|
|
US$
|
449
|
|
|
N/A
|
|
US$
|
449
|
|
|
|
|
|
|
|
Nationwide Building Society
|
|
|
|
|
|
|
|
|
|
US$
|
441
|
|
|
N/A
|
|
US$
|
441
|
|
|
|
|
|
|
|
Valero Energy Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
439
|
|
|
N/A
|
|
US$
|
439
|
|
|
|
|
|
|
|
Blackstone Holdings Finance Co., LLC
|
|
|
|
|
|
|
|
|
|
US$
|
422
|
|
|
N/A
|
|
US$
|
422
|
|
|
|
|
|
|
|
Trans Canada Pipelines
|
|
|
|
|
|
|
|
|
|
US$
|
420
|
|
|
N/A
|
|
US$
|
420
|
|
|
|
|
|
|
|
Woolworths Limited
|
|
|
|
|
|
|
|
|
|
US$
|
419
|
|
|
N/A
|
|
US$
|
419
|
|
|
|
|
|
|
|
Volkswagen Group of America, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
400
|
|
|
N/A
|
|
US$
|
400
|
|
|
|
|
|
|
|
Southern Power Company
|
|
|
|
|
|
|
|
|
|
US$
|
397
|
|
|
N/A
|
|
US$
|
397
|
|
|
|
|
|
|
|
Aon Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
394
|
|
|
N/A
|
|
US$
|
394
|
|
|
|
|
|
|
|
First Niagara Financial Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
391
|
|
|
N/A
|
|
US$
|
391
|
|
|
|
|
|
|
|
Nationwide Financial Service, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
383
|
|
|
N/A
|
|
US$
|
383
|
|
|
|
|
|
|
|
Enbridge, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
363
|
|
|
N/A
|
|
US$
|
363
|
|
|
|
|
|
|
|
Deutsche Bank AG
|
|
|
|
|
|
|
|
|
|
US$
|
353
|
|
|
N/A
|
|
US$
|
353
|
|
|
|
|
|
|
|
CBOE Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
350
|
|
|
N/A
|
|
US$
|
350
|
|
|
|
|
|
|
|
ConocoPhillips
|
|
|
|
|
|
|
|
|
|
US$
|
337
|
|
|
N/A
|
|
US$
|
337
|
|
|
|
|
|
(Continued)
- 53 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Phillips 66
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
326
|
|
|
N/A
|
|
US$
|
326
|
|
|
|
|
|
|
|
PacifiCorp
|
|
|
|
|
|
|
|
|
|
US$
|
320
|
|
|
N/A
|
|
US$
|
320
|
|
|
|
|
|
|
|
eBay, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
305
|
|
|
N/A
|
|
US$
|
305
|
|
|
|
|
|
|
|
Eli Lilly & Co.
|
|
|
|
|
|
|
|
|
|
US$
|
296
|
|
|
N/A
|
|
US$
|
296
|
|
|
|
|
|
|
|
Barclays Bank PLC
|
|
|
|
|
|
|
|
|
|
US$
|
294
|
|
|
N/A
|
|
US$
|
294
|
|
|
|
|
|
|
|
BAE Systems Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
293
|
|
|
N/A
|
|
US$
|
293
|
|
|
|
|
|
|
|
Amphenol Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
291
|
|
|
N/A
|
|
US$
|
291
|
|
|
|
|
|
|
|
EMD Finance LLC
|
|
|
|
|
|
|
|
|
|
US$
|
282
|
|
|
N/A
|
|
US$
|
282
|
|
|
|
|
|
|
|
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$
|
242
|
|
|
N/A
|
|
US$
|
242
|
|
|
|
|
|
|
|
Protective Life Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
233
|
|
|
N/A
|
|
US$
|
233
|
|
|
|
|
|
|
|
WestRock MWV, LLC
|
|
|
|
|
|
|
|
|
|
US$
|
231
|
|
|
N/A
|
|
US$
|
231
|
|
|
|
|
|
|
|
Rolls Royce PLC
|
|
|
|
|
|
|
|
|
|
US$
|
226
|
|
|
N/A
|
|
US$
|
226
|
|
|
|
|
|
|
|
Assurant, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
211
|
|
|
N/A
|
|
US$
|
211
|
|
|
|
|
|
|
|
Fidelity National Information
|
|
|
|
|
|
|
|
|
|
US$
|
208
|
|
|
N/A
|
|
US$
|
208
|
|
|
|
|
|
|
|
Nisource Finance Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
84
|
|
|
N/A
|
|
US$
|
84
|
|
|
|
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
152,533
|
|
|
N/A
|
|
US$
|
154,237
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
US$
|
150,006
|
|
|
N/A
|
|
US$
|
151,562
|
|
|
|
|
|
|
|
Westpac Banking Corp.
|
|
|
|
|
|
|
|
|
|
US$
|
100,000
|
|
|
N/A
|
|
US$
|
101,002
|
|
|
|
|
|
|
|
Goldman Sachs Group, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
100,000
|
|
|
N/A
|
|
US$
|
100,565
|
|
|
|
|
|
|
|
Commonwealth Bank of Australia
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
50,455
|
|
|
|
|
|
|
|
National Australia Bank
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
50,392
|
|
|
|
|
|
|
|
Bank of Nova Scotia
|
|
|
|
|
|
|
|
|
|
US$
|
49,986
|
|
|
N/A
|
|
US$
|
50,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury N/B
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
213,778
|
|
|
N/A
|
|
US$
|
213,778
|
|
|
|
|
|
|
|
Abu Dhabi Government International Bond
|
|
|
|
|
|
|
|
|
|
US$
|
3,478
|
|
|
N/A
|
|
US$
|
3,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency bonds/Agency mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal National Mortgage Association
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
446,850
|
|
|
N/A
|
|
US$
|
446,850
|
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corporation
|
|
|
|
|
|
|
|
|
|
US$
|
181,670
|
|
|
N/A
|
|
US$
|
181,670
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
|
|
|
|
|
|
|
|
US$
|
43,096
|
|
|
N/A
|
|
US$
|
43,096
|
|
|
|
|
|
|
|
Government National Mortgage Association
|
|
|
|
|
|
|
|
|
|
US$
|
27,679
|
|
|
N/A
|
|
US$
|
27,679
|
|
|
|
|
|
|
|
Federal Home Loan Bank
|
|
|
|
|
|
|
|
|
|
US$
|
6,182
|
|
|
N/A
|
|
US$
|
6,182
|
|
|
|
|
|
|
|
Fhlmc Multifamily Structured PTC
|
|
|
|
|
|
|
|
|
|
US$
|
3,634
|
|
|
N/A
|
|
US$
|
3,634
|
|
|
|
|
|
|
|
Export Import Bank Korea
|
|
|
|
|
|
|
|
|
|
US$
|
3,007
|
|
|
N/A
|
|
US$
|
3,007
|
|
|
|
|
|
|
|
Province Of Quebec
|
|
|
|
|
|
|
|
|
|
US$
|
2,592
|
|
|
N/A
|
|
US$
|
2,592
|
|
|
|
|
|
|
|
Export Developmnt Canada
|
|
|
|
|
|
|
|
|
|
US$
|
2,005
|
|
|
N/A
|
|
US$
|
2,005
|
|
|
|
|
|
|
|
CPPIB Capital, Inc.
|
|
|
|
|
|
|
|
|
|
US$
|
1,186
|
|
|
N/A
|
|
US$
|
1,186
|
|
|
|
|
|
|
|
Federal Farm Credit Bank
|
|
|
|
|
|
|
|
|
|
US$
|
904
|
|
|
N/A
|
|
US$
|
904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Negotiable certificate of deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Construction Bank
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
50,100
|
|
|
|
|
|
|
|
Bank of China
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
50,094
|
|
|
|
|
|
|
|
China Development Bank
|
|
|
|
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
50,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
33,844
|
|
|
N/A
|
|
US$
|
33,844
|
|
|
|
|
|
|
|
Discover Card Execution Note Trust
|
|
|
|
|
|
|
|
|
|
US$
|
28,764
|
|
|
N/A
|
|
US$
|
28,764
|
|
|
|
|
|
|
|
Chase Issuance Trust
|
|
|
|
|
|
|
|
|
|
US$
|
27,310
|
|
|
N/A
|
|
US$
|
27,310
|
|
|
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
|
|
|
|
|
|
|
|
US$
|
27,180
|
|
|
N/A
|
|
US$
|
27,180
|
|
|
|
|
|
|
|
American Express Credit Account Master Trust
|
|
|
|
|
|
|
|
|
|
US$
|
24,269
|
|
|
N/A
|
|
US$
|
24,269
|
|
|
|
|
|
|
|
Ford Credit Floorplan Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
22,741
|
|
|
N/A
|
|
US$
|
22,741
|
|
|
|
|
|
|
|
Bank of America Credit Card Trust
|
|
|
|
|
|
|
|
|
|
US$
|
21,254
|
|
|
N/A
|
|
US$
|
21,254
|
|
|
|
|
|
|
|
COMM Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
12,681
|
|
|
N/A
|
|
US$
|
12,681
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,792
|
|
|
N/A
|
|
US$
|
11,792
|
|
|
|
|
|
|
|
Morgan Stanley Bank of America Merrill Lynch Trust
|
|
|
|
|
|
|
|
|
|
US$
|
11,094
|
|
|
N/A
|
|
US$
|
11,094
|
|
|
|
|
|
(Continued)
- 54 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
UBS-Barclays
Commercial Mortgage Trust
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
10,193
|
|
|
N/A
|
|
US$
|
10,193
|
|
|
|
|
|
|
|
Mercedes Benz Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
10,061
|
|
|
N/A
|
|
US$
|
10,061
|
|
|
|
|
|
|
|
Hyundai Auto Lease Securitization Trust
|
|
|
|
|
|
|
|
|
|
US$
|
9,928
|
|
|
N/A
|
|
US$
|
9,928
|
|
|
|
|
|
|
|
GM Financial Automobile Leasing Trust
|
|
|
|
|
|
|
|
|
|
US$
|
9,077
|
|
|
N/A
|
|
US$
|
9,077
|
|
|
|
|
|
|
|
Hyundai Auto Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
8,979
|
|
|
N/A
|
|
US$
|
8,979
|
|
|
|
|
|
|
|
Nissan Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
8,731
|
|
|
N/A
|
|
US$
|
8,731
|
|
|
|
|
|
|
|
Honda Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
8,608
|
|
|
N/A
|
|
US$
|
8,608
|
|
|
|
|
|
|
|
Nissan Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
8,457
|
|
|
N/A
|
|
US$
|
8,457
|
|
|
|
|
|
|
|
J.P. Morgan Chase Commercial Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
7,564
|
|
|
N/A
|
|
US$
|
7,564
|
|
|
|
|
|
|
|
GS Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
7,375
|
|
|
N/A
|
|
US$
|
7,375
|
|
|
|
|
|
|
|
JPMBB Commercial Mortgage Securities Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,443
|
|
|
N/A
|
|
US$
|
6,443
|
|
|
|
|
|
|
|
Chesapeake Funding II LLC
|
|
|
|
|
|
|
|
|
|
US$
|
6,339
|
|
|
N/A
|
|
US$
|
6,339
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
6,002
|
|
|
N/A
|
|
US$
|
6,002
|
|
|
|
|
|
|
|
Ford Credit Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
5,984
|
|
|
N/A
|
|
US$
|
5,984
|
|
|
|
|
|
|
|
Toyota Auto Receivables Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
5,959
|
|
|
N/A
|
|
US$
|
5,959
|
|
|
|
|
|
|
|
BMW Vehicle Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
5,147
|
|
|
N/A
|
|
US$
|
5,147
|
|
|
|
|
|
|
|
Citigroup Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
4,899
|
|
|
N/A
|
|
US$
|
4,899
|
|
|
|
|
|
|
|
Bank
|
|
|
|
|
|
|
|
|
|
US$
|
4,011
|
|
|
N/A
|
|
US$
|
4,011
|
|
|
|
|
|
|
|
Nissan Master Owner Trust Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
4,007
|
|
|
N/A
|
|
US$
|
4,007
|
|
|
|
|
|
|
|
Cold Storage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,805
|
|
|
N/A
|
|
US$
|
3,805
|
|
|
|
|
|
|
|
Mercedes Benz Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,703
|
|
|
N/A
|
|
US$
|
3,703
|
|
|
|
|
|
|
|
Hertz Fleet Lease Funding L.P.
|
|
|
|
|
|
|
|
|
|
US$
|
3,496
|
|
|
N/A
|
|
US$
|
3,496
|
|
|
|
|
|
|
|
Wells Fargo Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,334
|
|
|
N/A
|
|
US$
|
3,334
|
|
|
|
|
|
|
|
Ford Credit Auto Lease Trust
|
|
|
|
|
|
|
|
|
|
US$
|
3,007
|
|
|
N/A
|
|
US$
|
3,007
|
|
|
|
|
|
|
|
Credit Suisse Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,888
|
|
|
N/A
|
|
US$
|
2,888
|
|
|
|
|
|
|
|
BMW Floorplan Master Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,445
|
|
|
N/A
|
|
US$
|
2,445
|
|
|
|
|
|
|
|
WF-RBS Commercial
Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
2,050
|
|
|
N/A
|
|
US$
|
2,050
|
|
|
|
|
|
|
|
Carmax Auto Owner Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,998
|
|
|
N/A
|
|
US$
|
1,998
|
|
|
|
|
|
|
|
Mercedes Benz Auto Receivables Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,882
|
|
|
N/A
|
|
US$
|
1,882
|
|
|
|
|
|
|
|
Morgan Stanley Capital I Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,841
|
|
|
N/A
|
|
US$
|
1,841
|
|
|
|
|
|
|
|
Golden Credit Card Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,800
|
|
|
N/A
|
|
US$
|
1,800
|
|
|
|
|
|
|
|
Wheels SPV LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,693
|
|
|
N/A
|
|
US$
|
1,693
|
|
|
|
|
|
|
|
CFCRE Commercial Mortgage Trust
|
|
|
|
|
|
|
|
|
|
US$
|
1,075
|
|
|
N/A
|
|
US$
|
1,075
|
|
|
|
|
|
|
|
Enterprise Fleet Financing LLC
|
|
|
|
|
|
|
|
|
|
US$
|
1,028
|
|
|
N/A
|
|
US$
|
1,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structure product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ
|
|
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
US$
|
50,000
|
|
|
N/A
|
|
US$
|
49,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNP Paribas New York Branch
|
|
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
US$
|
3,000
|
|
|
N/A
|
|
US$
|
3,000
|
|
|
|
|
|
|
|
Norinchukin Bank
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
N/A
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
Societe Generale
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
N/A
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
UBS AG, Stamford Branch
|
|
|
|
|
|
|
|
|
|
US$
|
2,000
|
|
|
N/A
|
|
US$
|
2,000
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primavera Capital Fund II L.P.
|
|
|
|
Financial assets carried at cost
|
|
|
|
|
|
US$
|
38,477
|
|
|
4
|
|
US$
|
38,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neoconix, Inc.
|
|
|
|
Financial assets carried at cost
|
|
|
4,147
|
|
|
US$
|
170
|
|
|
|
|
US$
|
170
|
|
|
|
|
|
(Continued)
- 55 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held Company
Name
|
|
Marketable Securities Type and Name
|
|
Relationship
with the
Company
|
|
Financial Statement Account
|
|
June 30, 2017
|
|
|
Note
|
|
|
|
|
|
Shares/Units
(In Thousands)
|
|
|
Carrying Value
(Foreign
Currencies
in Thousands)
|
|
|
Percentage of
Ownership (%)
|
|
Fair Value
(Foreign
Currencies
in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
VTAF II
|
|
Common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RichWave Technology Corp.
|
|
|
|
Available-for-sale
financial assets
|
|
|
419
|
|
|
US$
|
1,508
|
|
|
1
|
|
US$
|
1,508
|
|
|
|
|
|
|
|
Impinj, Inc.
|
|
|
|
|
|
|
7
|
|
|
US$
|
362
|
|
|
|
|
US$
|
362
|
|
|
|
|
|
|
|
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
|
|
|
20
|
|
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
|
|
|
6,249
|
|
|
US$
|
12,534
|
|
|
10
|
|
US$
|
12,534
|
|
|
|
|
|
|
|
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)
- 56 -
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 SIX MONTHS ENDED JUNE 30, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CPC Corporation, Taiwan
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
|
|
|
$
|
1,967,303
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
$
|
800,000
|
|
|
$
|
800,000
|
|
|
$
|
|
|
|
|
|
|
|
$
|
1,161,873
|
|
|
|
Hon Hai Precision Ind. Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
400,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400,000
|
|
|
|
400,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company
|
|
Held-to-maturity
financial assets
|
|
|
|
|
|
|
865
|
|
|
|
8,628,176
|
|
|
|
170
|
|
|
|
1,695,771
|
|
|
|
985
|
|
|
|
9,850,000
|
|
|
|
9,850,000
|
|
|
|
|
|
|
|
50
|
|
|
|
498,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Prepayments for Investments (Note 2)
|
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,986,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,986,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
Corporate bond
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
US$
|
27,973
|
|
|
|
|
|
|
US$
|
13,417
|
|
|
|
|
|
|
US$
|
10,679
|
|
|
US$
|
10,803
|
|
|
US$
|
(124
|
)
|
|
|
|
|
|
US$
|
30,880
|
|
|
|
Goldman Sachs Group Inc.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
7,390
|
|
|
|
|
|
|
US$
|
11,755
|
|
|
|
|
|
|
US$
|
1,900
|
|
|
US$
|
1,976
|
|
|
US$
|
(76
|
)
|
|
|
|
|
|
US$
|
17,375
|
|
|
|
Morgan Stanley
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,237
|
|
|
|
|
|
|
US$
|
12,049
|
|
|
|
|
|
|
US$
|
6,775
|
|
|
US$
|
6,738
|
|
|
US$
|
37
|
|
|
|
|
|
|
US$
|
16,706
|
|
|
|
Microsoft Corp.
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
2,905
|
|
|
|
|
|
|
US$
|
11,279
|
|
|
|
|
|
|
US$
|
1,001
|
|
|
US$
|
999
|
|
|
US$
|
2
|
|
|
|
|
|
|
US$
|
13,393
|
|
|
|
JPMorgan Chase & Co.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,611
|
|
|
|
Qualcomm, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
10,093
|
|
|
|
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$
|
193,984
|
|
|
|
|
|
|
US$
|
254,014
|
|
|
US$
|
254,497
|
|
|
US$
|
(483
|
)
|
|
|
|
|
|
US$
|
142,023
|
|
|
|
US Treasury Floating Rate Note
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
30,756
|
|
|
|
|
|
|
US$
|
142,388
|
|
|
|
|
|
|
US$
|
115,149
|
|
|
US$
|
115,059
|
|
|
US$
|
90
|
|
|
|
|
|
|
US$
|
58,030
|
|
|
|
Treasury Inflation-Indexed N/B
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
19,349
|
|
|
|
|
|
|
US$
|
8,039
|
|
|
|
|
|
|
US$
|
19,208
|
|
|
US$
|
19,326
|
|
|
US$
|
(118
|
)
|
|
|
|
|
|
US$
|
8,093
|
|
|
|
Treasury Bill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
29,244
|
|
|
|
|
|
|
US$
|
28,348
|
|
|
US$
|
28,345
|
|
|
US$
|
3
|
|
|
|
|
|
|
US$
|
900
|
|
|
|
WI Treasury Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
71,332
|
|
|
|
|
|
|
US$
|
71,362
|
|
|
US$
|
71,332
|
|
|
US$
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency
bonds/Agency
mortgage-
backed
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FNMA Pool AL9718
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
9,841
|
|
|
|
|
|
|
US$
|
621
|
|
|
US$
|
704
|
|
|
US$
|
(83
|
)
|
|
|
|
|
|
US$
|
9,202
|
|
|
|
FNMA TBA 15 Yr 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
14,993
|
|
|
|
|
|
|
US$
|
12,978
|
|
|
US$
|
12,955
|
|
|
US$
|
23
|
|
|
|
|
|
|
US$
|
2,034
|
|
|
|
FNMA TBA 30 Yr 4.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
21,945
|
|
|
|
|
|
|
US$
|
21,181
|
|
|
US$
|
21,194
|
|
|
US$
|
(13
|
)
|
|
|
|
|
|
US$
|
750
|
|
TSMC Global
|
|
GNMA II TBA 30 Yr 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
19,296
|
|
|
|
|
|
|
US$
|
18,992
|
|
|
US$
|
18,980
|
|
|
US$
|
12
|
|
|
|
|
|
|
US$
|
316
|
|
|
|
GNMA II TBA 30 Yr 3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
25,695
|
|
|
|
|
|
|
US$
|
25,539
|
|
|
US$
|
25,549
|
|
|
US$
|
(10
|
)
|
|
|
|
|
|
US$
|
145
|
|
|
|
GNMA II TBA 30 Yr 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
12,544
|
|
|
|
|
|
|
US$
|
12,541
|
|
|
US$
|
12,544
|
|
|
US$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,128
|
|
|
|
|
|
|
US$
|
11,134
|
|
|
US$
|
11,128
|
|
|
US$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
21,721
|
|
|
|
|
|
|
US$
|
21,726
|
|
|
US$
|
21,721
|
|
|
US$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
33,902
|
|
|
|
|
|
|
US$
|
33,891
|
|
|
US$
|
33,902
|
|
|
US$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
FNMA TBA 30 Yr 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
46,700
|
|
|
|
|
|
|
US$
|
46,736
|
|
|
US$
|
46,700
|
|
|
US$
|
36
|
|
|
|
|
|
|
|
|
|
(Continued)
- 57 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Global
|
|
Asset-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust
|
|
Available-for-sale
financial assets
|
|
|
|
|
|
|
|
|
|
US$
|
22,585
|
|
|
|
|
|
|
US$
|
13,313
|
|
|
|
|
|
|
US$
|
2,031
|
|
|
US$
|
2,161
|
|
|
US$
|
(130
|
)
|
|
|
|
|
|
US$
|
33,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discover Card Execution Note Trust
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
23,076
|
|
|
|
|
|
|
US$
|
11,172
|
|
|
|
|
|
|
US$
|
5,500
|
|
|
US$
|
5,499
|
|
|
US$
|
1
|
|
|
|
|
|
|
US$
|
28,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital One Multi Asset Execution Trust
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
39,626
|
|
|
|
|
|
|
US$
|
200
|
|
|
|
|
|
|
US$
|
12,703
|
|
|
US$
|
12,778
|
|
|
US$
|
(75
|
)
|
|
|
|
|
|
US$
|
27,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ford Credit Floorplan Master Owner Trust
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
11,944
|
|
|
|
|
|
|
US$
|
10,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
22,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primavera Capital Fund II L.P.
|
|
Financial assets carried at cost
|
|
|
|
|
|
|
|
|
|
US$
|
23,784
|
|
|
|
|
|
|
US$
|
14,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$
|
38,477
|
|
Note 1:
|
The ending balance includes the amortization of premium/discount on bonds investments, share of profits/losses of investees and other related adjustment.
|
Note 2:
|
To lower the hedging cost, in February 2017, the Board of Directors of TSMC approved to inject US$2,000,000 thousand of capital into TSMC Global. This project was approved by the Investment Commission, Ministry of
Economic Affairs, R.O.C. (MOEA). The prepayment for investment was US$195,000 thousand as of June 30, 2017 and the total injection is expected to be finished in the fourth quarter of 2017.
|
(Concluded)
- 58 -
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 SIX MONTHS ENDED JUNE 30, 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
|
|
August 10, 2016 to April 6, 2017
|
|
$
|
837,466
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
Fu Tsu Construction Co., Ltd.
|
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison
and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
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
|
TSMC Nanjing Company Ltd.
|
|
Fab
|
|
March 21, 2017 to June 23, 2017
|
|
|
RMB183,300
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
China Construction First Division Group Construction & Development Co., Ltd.
|
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison
and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
Fab
|
|
May 25, 2017
|
|
|
RMB119,027
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
Renchong Interior Decoration (Shanghai) Co., Ltd.
|
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison
and price negotiation
|
|
Manufacturing purpose
|
|
None
|
|
|
Fab
|
|
June 22, 2017 to June 27, 2017
|
|
|
RMB98,000
|
|
|
Monthly settlement by the construction progress and acceptance
|
|
Shanghai Baoye Group Co., Ltd.
|
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
Bidding, price comparison and price negotiation
|
|
Manufacturing purpose
|
|
None
|
- 59 -
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 SIX MONTHS ENDED JUNE 30, 2017
(Amounts
in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes/Accounts Payable or
|
|
|
|
|
|
|
|
|
|
|
Transaction Details
|
|
Abnormal Transaction
|
|
Receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
(Foreign Currencies
|
|
|
% to
|
|
|
|
|
|
|
Ending Balance
(Foreign Currencies in
|
|
|
% to
|
|
|
|
|
Company Name
|
|
Related Party
|
|
Nature of Relationships
|
|
Purchases/Sales
|
|
in Thousands)
|
|
|
Total
|
|
|
Payment Terms
|
|
Unit Price
|
|
Payment Terms
|
|
Thousands)
|
|
|
Total
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC
|
|
TSMC North America
|
|
Subsidiary
|
|
Sales
|
|
$
|
287,574,248
|
|
|
|
62
|
|
|
Net 30 days from invoice date (Note)
|
|
|
|
Note
|
|
$
|
66,739,205
|
|
|
|
62
|
|
|
|
|
|
|
|
GUC
|
|
Associate
|
|
Sales
|
|
|
3,047,052
|
|
|
|
1
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
341,107
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
Subsidiary
|
|
Purchases
|
|
|
11,220,670
|
|
|
|
28
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(1,832,175
|
)
|
|
|
7
|
|
|
|
|
|
|
|
WaferTech
|
|
Indirect subsidiary
|
|
Purchases
|
|
|
4,359,047
|
|
|
|
11
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(1,512,184
|
)
|
|
|
5
|
|
|
|
|
|
|
|
VIS
|
|
Associate
|
|
Purchases
|
|
|
2,821,271
|
|
|
|
7
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(416,232
|
)
|
|
|
1
|
|
|
|
|
|
|
|
SSMC
|
|
Associate
|
|
Purchases
|
|
|
2,064,649
|
|
|
|
5
|
|
|
Net 30 days from the end of the month of when invoice is issued
|
|
|
|
|
|
|
(458,644
|
)
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC North America
|
|
GUC
|
|
Associate of TSMC
|
|
Sales
|
|
(US$
|
414,555
13,480
|
)
|
|
|
|
|
|
Net 30 days from invoice date
|
|
|
|
|
|
(US$
|
86,836
2,855
|
)
|
|
|
|
|
|
|
|
|
Note:
|
The tenor is 30 days from TSMCs invoice date or determined by the payment terms granted to its clients by TSMC North America.
|
- 60 -
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
JUNE 30, 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
|
|
$
|
67,559,095
|
|
|
48
|
|
$
|
1,180,581
|
|
|
|
|
$
|
5,254,863
|
|
|
$
|
|
|
|
|
VIS
|
|
Associate
|
|
|
1,474,583
|
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Tech
|
|
Subsidiary
|
|
|
760,168
|
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUC
|
|
Associate
|
|
|
341,107
|
|
|
38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
TSMC
|
|
Parent company
|
|
|
7,603,768
|
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(US$
|
250,009
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
TSMC
|
|
Parent company
|
|
|
1,832,175
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB
|
408,411
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing
|
|
The same parent company
|
|
|
7,213,695
|
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(RMB
|
1,608,010
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Technology
|
|
TSMC
|
|
The ultimate parent of the Company
|
|
(US$
|
216,047
7,104
|
)
|
|
Note 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WaferTech
|
|
TSMC
|
|
The ultimate parent of the Company
|
|
(US$
|
1,512,184
49,720
|
)
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1:
|
The calculation of turnover days excludes other receivables from related parties.
|
Note 2:
|
The ending balance is primarily consisted of other receivables from related parties, which is not applicable for the calculation of turnover days.
|
- 61 -
TABLE 8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE SIX MONTHS ENDED JUNE 30, 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
|
|
$
|
287,574,248
|
|
|
|
|
64%
|
|
|
|
|
|
|
|
|
Receivables from related parties
|
|
|
66,739,205
|
|
|
|
|
3%
|
|
|
|
|
|
|
|
|
Other receivables from related parties
|
|
|
819,890
|
|
|
|
|
|
|
|
|
|
TSMC Japan
|
|
1
|
|
Marketing expenses - commission
|
|
|
102,593
|
|
|
|
|
|
|
|
|
|
TSMC Europe
|
|
1
|
|
Marketing expenses - commission
|
|
|
212,189
|
|
|
|
|
|
|
|
|
|
TSMC Global
|
|
1
|
|
Short-term loans
|
|
|
7,603,500
|
|
|
|
|
|
|
|
|
|
TSMC China
|
|
1
|
|
Purchases
|
|
|
11,220,670
|
|
|
|
|
3%
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,832,175
|
|
|
|
|
|
|
|
|
|
VisEra Tech
|
|
1
|
|
Other receivables from related parties
|
|
|
760,168
|
|
|
|
|
|
|
|
|
|
TSMC Canada
|
|
1
|
|
Research and development expenses
|
|
|
120,780
|
|
|
|
|
|
|
|
|
|
TSMC Technology
|
|
1
|
|
Research and development expenses
|
|
|
883,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
216,047
|
|
|
|
|
|
|
|
|
|
WaferTech
|
|
1
|
|
Purchases
|
|
|
4,359,047
|
|
|
|
|
1%
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
1,512,184
|
|
|
|
|
|
1
|
|
TSMC China
|
|
TSMC Nanjing
|
|
3
|
|
Other receivables from related parties
|
|
|
7,213,695
|
|
|
|
|
|
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.
|
- 62 -
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 SIX MONTHS ENDED JUNE 30, 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 June 30, 2017
|
|
|
Net Income
(Losses) of the
Investee
(Foreign
Currencies in
Thousands)
|
|
|
Share of
Profits/Losses
of Investee
(Note 1)
(Foreign
Currencies in
Thousands)
|
|
|
Note
|
|
|
|
|
June 30,
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
|
|
$
|
238,193,719
Note 3
|
|
|
$
|
232,207,219
|
|
|
|
7
|
|
|
100
|
|
$
|
259,503,712
|
|
|
$
|
2,264,670
|
|
|
$
|
2,264,670
|
|
|
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
|
|
|
50,134,056
|
|
|
|
1,093,644
|
|
|
|
1,093,644
|
|
|
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
|
|
|
7,956,845
|
|
|
|
2,129,857
|
|
|
|
600,728
|
|
|
Associate
|
|
|
SSMC
|
|
Singapore
|
|
Manufacturing and selling of integrated circuits and other semiconductor devices
|
|
|
5,120,028
|
|
|
|
5,120,028
|
|
|
|
314
|
|
|
39
|
|
|
7,596,341
|
|
|
|
2,121,561
|
|
|
|
822,954
|
|
|
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
|
|
|
4,437,218
|
|
|
|
(44,030
|
)
|
|
|
(38,305
|
)
|
|
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
|
|
|
4,224,656
|
|
|
|
126,238
|
|
|
|
126,238
|
|
|
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
|
|
|
2,344,813
|
|
|
|
(609,250
|
)
|
|
|
(248,833
|
)
|
|
Associate
|
|
|
GUC
|
|
Hsin-Chu,
Taiwan
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
|
386,568
|
|
|
|
386,568
|
|
|
|
46,688
|
|
|
35
|
|
|
1,078,026
|
|
|
|
316,911
|
|
|
|
110,412
|
|
|
Associate
|
|
|
TSMC Europe
|
|
Amsterdam, the Netherlands
|
|
Customer service and supporting activities
|
|
|
15,749
|
|
|
|
15,749
|
|
|
|
|
|
|
100
|
|
|
378,915
|
|
|
|
19,487
|
|
|
|
19,487
|
|
|
Subsidiary
|
|
|
VTAF II
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
470,505
|
|
|
|
608,562
|
|
|
|
|
|
|
98
|
|
|
365,580
|
|
|
|
93,619
|
|
|
|
91,747
|
|
|
Subsidiary
|
|
|
VTAF III
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
1,329,951
|
|
|
|
1,355,417
|
|
|
|
|
|
|
98
|
|
|
168,551
|
|
|
|
(15,602
|
)
|
|
|
(15,290
|
)
|
|
Subsidiary
|
|
|
TSMC Japan
|
|
Yokohama, Japan
|
|
Customer service and supporting activities
|
|
|
83,760
|
|
|
|
83,760
|
|
|
|
6
|
|
|
100
|
|
|
132,560
|
|
|
|
2,704
|
|
|
|
2,704
|
|
|
Subsidiary
|
|
|
TSMC Korea
|
|
Seoul, Korea
|
|
Customer service and supporting activities
|
|
|
13,656
|
|
|
|
13,656
|
|
|
|
80
|
|
|
100
|
|
|
36,843
|
|
|
|
1,283
|
|
|
|
1,283
|
|
|
Subsidiary
|
|
|
TSMC Solar Europe GmbH
|
|
Hamburg, Germany
|
|
Selling of solar related products and providing customer service
|
|
|
25,266
|
|
|
|
25,266
|
|
|
|
1
|
|
|
100
|
|
|
(21,539
|
)
|
|
|
(14,455
|
)
|
|
|
(14,455
|
)
|
|
Subsidiary
|
TSMC Partners
|
|
TSMC Development
|
|
Delaware, U.S.A
|
|
Investing in companies involved in the manufacturing related business in the semiconductor
industry
|
|
$
(US$
|
17,851,157
586,939
|
)
|
|
$
(US$
|
17,851,157
586,939
|
)
|
|
|
|
|
|
100
|
|
$
(US$
|
26,467,770
870,250
|
)
|
|
$
(US$
|
868,652
28,303
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
TSMC Technology
|
|
Delaware, U.S.A
|
|
Engineering support activities
|
|
|
434,373
|
|
|
|
434,373
|
|
|
|
|
|
|
100
|
|
|
543,006
|
|
|
|
30,230
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
14,282
|
)
|
|
(US$
|
14,282
|
)
|
|
|
|
|
|
|
|
(US$
|
17,854
|
)
|
|
(US$
|
984
|
)
|
|
|
|
|
|
|
|
|
ISDF II
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
157,965
|
|
|
|
157,965
|
|
|
|
9,299
|
|
|
97
|
|
|
355,828
|
|
|
|
12,948
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
5,194
|
)
|
|
(US$
|
5,194
|
)
|
|
|
|
|
|
|
|
(US$
|
11,699
|
)
|
|
(US$
|
428
|
)
|
|
|
|
|
|
|
|
|
TSMC Canada
|
|
Ontario, Canada
|
|
Engineering support activities
|
|
|
69,952
|
|
|
|
69,952
|
|
|
|
2,300
|
|
|
100
|
|
|
174,080
|
|
|
|
8,891
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
2,300
|
)
|
|
(US$
|
2,300
|
)
|
|
|
|
|
|
|
|
(US$
|
5,724
|
)
|
|
(US$
|
289
|
)
|
|
|
|
|
|
|
|
|
ISDF
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
14,452
|
|
|
|
14,452
|
|
|
|
583
|
|
|
97
|
|
|
462
|
|
|
|
|
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
475
|
)
|
|
(US$
|
475
|
)
|
|
|
|
|
|
|
|
(US$
|
15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III
|
|
Growth Fund
|
|
Cayman Islands
|
|
Investing in new
start-up
technology companies
|
|
|
68,789
|
|
|
|
44,458
|
|
|
|
|
|
|
100
|
|
|
51,574
|
|
|
|
(614
|
)
|
|
|
Note 2
|
|
|
Subsidiary
|
|
|
|
|
|
|
|
|
(US$
|
2,262
|
)
|
|
(US$
|
1,462
|
)
|
|
|
|
|
|
|
|
(US$
|
1,696
|
)
|
|
(US$
|
(20
|
))
|
|
|
|
|
|
|
(Continued)
- 63 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor
Company
|
|
Investee
Company
|
|
Location
|
|
Main Businesses
and Products
|
|
Original Investment Amount
|
|
|
Balance as of June 30, 2017
|
|
|
Net Income
(Losses) of
the Investee
(Foreign
Currencies in
Thousands)
|
|
|
Share of
Profits/Losses
of Investee
(Note 1)
(Foreign
Currencies in
Thousands)
|
|
|
Note
|
|
|
|
|
June 30,
2017
(Foreign
Currencies in
Thousands)
|
|
|
December 31,
2016
(Foreign
Currencies in
Thousands)
|
|
|
Shares (In
Thousands)
|
|
|
Percentage of
Ownership
|
|
Carrying
Value
(Foreign
Currencies in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III
|
|
Mutual-Pak
|
|
New Taipei, Taiwan
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and
researching, developing and testing of RFID
|
|
$
(US$
|
158,538
5,213
|
)
|
|
$
(US$
|
158,538
5,213
|
)
|
|
|
15,643
|
|
|
58
|
|
$
(US$
|
14,531
478
|
)
|
|
$
(US$
|
(10,967
(355
|
)
))
|
|
|
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$
|
5,325,252
175,092
|
)
|
|
(US$
|
780,110
25,418
|
)
|
|
|
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.
|
Note 3:
|
To lower the hedging cost, in February 2017, the Board of Directors of TSMC approved to inject US$2,000,000 thousand of capital into TSMC Global. This project was approved by the Investment Commission, Ministry of
Economic Affairs, R.O.C. (MOEA). The prepayment for investment was US$195,000 thousand as of June 30, 2017 and the total injection is expected to be finished in the fourth quarter of 2017.
|
(Concluded)
- 64 -
TABLE 10
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR SIX
MONTHS ENDED JUNE 30, 2017
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investee Company
|
|
Main Businesses and
Products
|
|
Total Amount of
Paid-in
Capital
(RMB
in Thousands)
|
|
|
Method of
Investment
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
January 1, 2017
(US$ in
Thousands)
|
|
|
Investment
Flows
|
|
|
Accumulated
Outflow of
Investment from
Taiwan as of
June 30,
2017 (US$ in
Thousands)
|
|
|
Net Income
(Losses) of the
Investee
Company
|
|
|
Percentage of
Ownership
|
|
Share of
Profits/Losses
|
|
|
Carrying
Amount
as of
June 30,
2017
|
|
|
Accumulated
Inward
Remittance of
Earnings as
of
June 30,
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
|
)
|
|
$
|
4,478,588
|
|
|
100%
|
|
$
|
4,592,206
(Note 2
|
)
|
|
$
|
45,863,677
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
|
73,435
|
|
|
100%
|
|
|
73,435
(Note 2
|
)
|
|
|
6,203,715
|
|
|
|
|
|
|
|
|
|
|
Accumulated Investment in Mainland China
as of June 30, 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.
|
- 65 -