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 by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of
1934.
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Independent Auditors Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
LG Display Co.,
Ltd.:
We have audited the accompanying consolidated financial statements of LG Display Co., Ltd. and its subsidiaries (the Group) which
comprise the consolidated statements of financial position of the Group as of December 31, 2017 and 2016, the related consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes
comprising a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance
with Korean International Financial Reporting Standards
(K-IFRS),
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatements, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Korean
Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures
selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the
entitys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2017 and 2016, and its consolidated financial performance and its consolidated cash flows for
the years then ended in accordance with
K-IFRS.
Other matter
The procedures and practices utilized in the Republic of Korea to audit such consolidated financial statements may differ from those generally accepted and
applied in other countries.
KPMG Samjong Accounting Corp.
Seoul, Korea
February 22, 2018
This report is effective as of February 22, 2018, the audit report date. Certain subsequent events or
circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report
should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
2
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Financial Position
As of December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
4, 26
|
|
|
W
|
2,602,560
|
|
|
|
1,558,696
|
|
Deposits in banks
|
|
|
4, 26
|
|
|
|
758,078
|
|
|
|
1,163,750
|
|
Trade accounts and notes receivable, net
|
|
|
5, 14, 26 28
|
|
|
|
4,325,120
|
|
|
|
4,957,993
|
|
Other accounts receivable, net
|
|
|
5, 26
|
|
|
|
164,827
|
|
|
|
143,592
|
|
Other current financial assets
|
|
|
6, 26
|
|
|
|
27,252
|
|
|
|
28,016
|
|
Inventories
|
|
|
7
|
|
|
|
2,350,084
|
|
|
|
2,287,785
|
|
Prepaid income taxes
|
|
|
|
|
|
|
3,854
|
|
|
|
592
|
|
Other current assets
|
|
|
5
|
|
|
|
241,928
|
|
|
|
343,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
|
|
|
10,473,703
|
|
|
|
10,484,186
|
|
|
|
|
|
Deposits in banks
|
|
|
4, 26
|
|
|
|
11
|
|
|
|
13
|
|
Investments in equity accounted investees
|
|
|
8
|
|
|
|
122,507
|
|
|
|
172,683
|
|
Other
non-current
financial assets
|
|
|
6, 26
|
|
|
|
68,574
|
|
|
|
74,633
|
|
Property, plant and equipment, net
|
|
|
9
|
|
|
|
16,201,960
|
|
|
|
12,031,449
|
|
Intangible assets, net
|
|
|
10
|
|
|
|
912,821
|
|
|
|
894,937
|
|
Deferred tax assets
|
|
|
24
|
|
|
|
985,352
|
|
|
|
867,011
|
|
Other
non-current
assets
|
|
|
5
|
|
|
|
394,759
|
|
|
|
359,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
assets
|
|
|
|
|
|
|
18,685,984
|
|
|
|
14,400,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
W
|
29,159,687
|
|
|
|
24,884,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable
|
|
|
26, 28
|
|
|
W
|
2,875,090
|
|
|
|
2,877,326
|
|
Current financial liabilities
|
|
|
11, 26
|
|
|
|
1,452,926
|
|
|
|
667,909
|
|
Other accounts payable
|
|
|
26
|
|
|
|
3,169,937
|
|
|
|
2,449,517
|
|
Accrued expenses
|
|
|
|
|
|
|
812,615
|
|
|
|
639,629
|
|
Income tax payable
|
|
|
|
|
|
|
321,978
|
|
|
|
257,082
|
|
Provisions
|
|
|
13
|
|
|
|
76,016
|
|
|
|
55,972
|
|
Advances received
|
|
|
14
|
|
|
|
194,129
|
|
|
|
61,818
|
|
Other current liabilities
|
|
|
13
|
|
|
|
75,991
|
|
|
|
48,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
8,978,682
|
|
|
|
7,058,219
|
|
|
|
|
|
Non-current
financial liabilities
|
|
|
11, 26
|
|
|
|
4,150,192
|
|
|
|
4,111,333
|
|
Non-current
provisions
|
|
|
13
|
|
|
|
28,312
|
|
|
|
8,155
|
|
Defined benefit liabilities, net
|
|
|
12
|
|
|
|
95,447
|
|
|
|
142,987
|
|
Long-term advances received
|
|
|
14
|
|
|
|
830,335
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
24
|
|
|
|
24,646
|
|
|
|
32,108
|
|
Other
non-current
liabilities
|
|
|
13
|
|
|
|
70,563
|
|
|
|
69,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
liabilities
|
|
|
|
|
|
|
5,199,495
|
|
|
|
4,363,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
14,178,177
|
|
|
|
11,421,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
15
|
|
|
|
1,789,079
|
|
|
|
1,789,079
|
|
Share premium
|
|
|
|
|
|
|
2,251,113
|
|
|
|
2,251,113
|
|
Retained earnings
|
|
|
|
|
|
|
10,621,571
|
|
|
|
9,004,283
|
|
Reserves
|
|
|
15
|
|
|
|
(288,280
|
)
|
|
|
(88,478
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to owners of the Controlling Company
|
|
|
|
|
|
|
14,373,483
|
|
|
|
12,955,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
608,027
|
|
|
|
506,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
|
14,981,510
|
|
|
|
13,462,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
|
|
W
|
29,159,687
|
|
|
|
24,884,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
3
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except earnings per share)
|
|
Note
|
|
2017
|
|
|
2016
|
|
|
|
|
|
Revenue
|
|
16, 17, 28
|
|
W
|
27,790,216
|
|
|
|
26,504,074
|
|
Cost of sales
|
|
7, 18, 28
|
|
|
(22,424,661
|
)
|
|
|
(22,754,270
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
5,365,555
|
|
|
|
3,749,804
|
|
|
|
|
|
Selling expenses
|
|
19
|
|
|
(994,483
|
)
|
|
|
(693,937
|
)
|
Administrative expenses
|
|
19
|
|
|
(696,022
|
)
|
|
|
(610,479
|
)
|
Research and development expenses
|
|
|
|
|
(1,213,432
|
)
|
|
|
(1,133,972
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
2,461,618
|
|
|
|
1,311,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
22
|
|
|
279,019
|
|
|
|
139,671
|
|
Finance costs
|
|
22
|
|
|
(268,856
|
)
|
|
|
(266,186
|
)
|
Other
non-operating
income
|
|
21
|
|
|
1,081,746
|
|
|
|
1,590,824
|
|
Other
non-operating
expenses
|
|
21
|
|
|
(1,230,455
|
)
|
|
|
(1,467,831
|
)
|
Equity in income of equity accounted investees, net
|
|
8
|
|
|
9,560
|
|
|
|
8,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
2,332,632
|
|
|
|
1,316,233
|
|
Income tax expense
|
|
23
|
|
|
(395,580
|
)
|
|
|
(384,725
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
1,937,052
|
|
|
|
931,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities
|
|
12, 23
|
|
|
(16,260
|
)
|
|
|
155,346
|
|
Other comprehensive income from associates and joint ventrues
|
|
|
|
|
441
|
|
|
|
200
|
|
Related income tax
|
|
12, 23
|
|
|
9,259
|
|
|
|
(37,594
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,560
|
)
|
|
|
117,952
|
|
Items that are or may be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of
available-for-sale
financial assets
|
|
22, 23
|
|
|
|
|
|
|
(77
|
)
|
Foreign currency translation differences for foreign operations
|
|
22, 23
|
|
|
(231,738
|
)
|
|
|
(90,503
|
)
|
Other comprehensive income (loss) from associates and joint ventures
|
|
23
|
|
|
905
|
|
|
|
(5,416
|
)
|
Related income tax
|
|
23
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(230,833
|
)
|
|
|
(95,977
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the year, net of income tax
|
|
|
|
|
(237,393
|
)
|
|
|
21,975
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
W
|
1,699,659
|
|
|
|
953,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to:
|
|
|
|
|
|
|
|
|
|
|
Owners of the Controlling Company
|
|
|
|
|
1,802,756
|
|
|
|
906,713
|
|
Non-controlling
interests
|
|
|
|
|
134,296
|
|
|
|
24,795
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
W
|
1,937,052
|
|
|
|
931,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
|
|
Owners of the Controlling Company
|
|
|
|
|
1,596,394
|
|
|
|
941,953
|
|
Non-controlling
interests
|
|
|
|
|
103,265
|
|
|
|
11,530
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
W
|
1,699,659
|
|
|
|
953,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (In won)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
25
|
|
W
|
5,038
|
|
|
|
2,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
25
|
|
W
|
5,038
|
|
|
|
2,534
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
4
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the Controlling Company
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Share
capital
|
|
|
Share
premium
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Sub-total
|
|
|
Non-controlling
interests
|
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
Balances at January 1, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
8,158,526
|
|
|
|
(5,766
|
)
|
|
|
12,192,952
|
|
|
|
512,004
|
|
|
|
12,704,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
906,713
|
|
|
|
|
|
|
|
906,713
|
|
|
|
24,795
|
|
|
|
931,508
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fair value of
available-for-sale
financial assets, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(58
|
)
|
|
|
(58
|
)
|
|
|
|
|
|
|
(58
|
)
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
|
|
|
|
|
|
|
|
117,752
|
|
|
|
|
|
|
|
117,752
|
|
|
|
|
|
|
|
117,752
|
|
Foreign currency translation differences for foreign operations, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(77,238
|
)
|
|
|
(77,238
|
)
|
|
|
(13,265
|
)
|
|
|
(90,503
|
)
|
Other comprehensive income (loss) from associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
200
|
|
|
|
(5,416
|
)
|
|
|
(5,216
|
)
|
|
|
|
|
|
|
(5,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
117,952
|
|
|
|
(82,712
|
)
|
|
|
35,240
|
|
|
|
(13,265
|
)
|
|
|
21,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the year
|
|
W
|
|
|
|
|
|
|
|
|
1,024,665
|
|
|
|
(82,712
|
)
|
|
|
941,953
|
|
|
|
11,530
|
|
|
|
953,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
|
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
(178,908
|
)
|
Subsidiaries dividends distributed to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,143
|
)
|
|
|
(17,143
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2016
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
9,004,283
|
|
|
|
(88,478
|
)
|
|
|
12,955,997
|
|
|
|
506,391
|
|
|
|
13,462,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at January 1, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
9,004,283
|
|
|
|
(88,478
|
)
|
|
|
12,955,997
|
|
|
|
506,391
|
|
|
|
13,462,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
1,802,756
|
|
|
|
|
|
|
|
1,802,756
|
|
|
|
134,296
|
|
|
|
1,937,052
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of net defined benefit liabilities, net of tax
|
|
|
|
|
|
|
|
|
|
|
(7,001
|
)
|
|
|
|
|
|
|
(7,001
|
)
|
|
|
|
|
|
|
(7,001
|
)
|
Foreign currency translation differences for foreign operations, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(200,707
|
)
|
|
|
(200,707
|
)
|
|
|
(31,031
|
)
|
|
|
(231,738
|
)
|
Other comprehensive income from associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
441
|
|
|
|
905
|
|
|
|
1,346
|
|
|
|
|
|
|
|
1,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
(6,560
|
)
|
|
|
(199,802
|
)
|
|
|
(206,362
|
)
|
|
|
(31,031
|
)
|
|
|
(237,393
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the year
|
|
W
|
|
|
|
|
|
|
|
|
1,796,196
|
|
|
|
(199,802
|
)
|
|
|
1,596,394
|
|
|
|
103,265
|
|
|
|
1,699,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction with owners, recognized directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to equity holders
|
|
|
|
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
(178,908
|
)
|
Subsidiaries dividends distributed to
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,929
|
)
|
|
|
(5,929
|
)
|
Capital contribution from
non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,300
|
|
|
|
4,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2017
|
|
W
|
1,789,079
|
|
|
|
2,251,113
|
|
|
|
10,621,571
|
|
|
|
(288,280
|
)
|
|
|
14,373,483
|
|
|
|
608,027
|
|
|
|
14,981,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
5
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,937,052
|
|
|
|
931,508
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
23
|
|
|
|
395,580
|
|
|
|
384,725
|
|
Depreciation
|
|
|
9, 18
|
|
|
|
2,791,883
|
|
|
|
2,643,445
|
|
Amortization of intangible assets
|
|
|
10, 18
|
|
|
|
422,693
|
|
|
|
378,126
|
|
Gain on foreign currency translation
|
|
|
|
|
|
|
(187,558
|
)
|
|
|
(250,508
|
)
|
Loss on foreign currency translation
|
|
|
|
|
|
|
174,919
|
|
|
|
161,897
|
|
Expenses related to defined benefit plans
|
|
|
12, 20
|
|
|
|
198,241
|
|
|
|
220,962
|
|
Gain on disposal of property, plant and equipment
|
|
|
|
|
|
|
(101,227
|
)
|
|
|
(14,637
|
)
|
Loss on disposal of property, plant and equipment
|
|
|
|
|
|
|
20,030
|
|
|
|
7,466
|
|
Impairment loss on property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
1,610
|
|
Gain on disposal of intangible assets
|
|
|
|
|
|
|
(308
|
)
|
|
|
|
|
Loss on disposal of intangible assets
|
|
|
|
|
|
|
30
|
|
|
|
75
|
|
Impairment loss on intangible assets
|
|
|
|
|
|
|
1,809
|
|
|
|
138
|
|
Reversal of impairment loss on intangible assets
|
|
|
|
|
|
|
(35
|
)
|
|
|
|
|
Warranty expenses
|
|
|
|
|
|
|
251,131
|
|
|
|
166,691
|
|
Finance income
|
|
|
|
|
|
|
(202,591
|
)
|
|
|
(58,748
|
)
|
Finance costs
|
|
|
|
|
|
|
142,591
|
|
|
|
187,931
|
|
Equity in income of equity method accounted investees, net
|
|
|
8
|
|
|
|
(9,560
|
)
|
|
|
(8,339
|
)
|
Other income
|
|
|
|
|
|
|
(16,812
|
)
|
|
|
(15,546
|
)
|
Other expenses
|
|
|
|
|
|
|
1,870
|
|
|
|
15,777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,882,686
|
|
|
|
3,821,065
|
|
|
|
|
|
Changes in
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
|
|
|
|
|
|
|
484,592
|
|
|
|
(553,775
|
)
|
Other accounts receivable
|
|
|
|
|
|
|
(3,004
|
)
|
|
|
62,981
|
|
Inventories
|
|
|
|
|
|
|
(55,979
|
)
|
|
|
105,688
|
|
Other current assets
|
|
|
|
|
|
|
180,844
|
|
|
|
126,616
|
|
Other
non-current
assets
|
|
|
|
|
|
|
(119,002
|
)
|
|
|
(126,256
|
)
|
Trade accounts and notes payable
|
|
|
|
|
|
|
113,590
|
|
|
|
(114,977
|
)
|
Other accounts payable
|
|
|
|
|
|
|
106,930
|
|
|
|
66,930
|
|
Accrued expenses
|
|
|
|
|
|
|
181,509
|
|
|
|
(16,431
|
)
|
Provisions
|
|
|
|
|
|
|
(210,973
|
)
|
|
|
(160,462
|
)
|
Other current liabilities
|
|
|
|
|
|
|
(585
|
)
|
|
|
17,272
|
|
Defined benefit liabilities, net
|
|
|
|
|
|
|
(261,966
|
)
|
|
|
(276,459
|
)
|
Long-term advances received
|
|
|
|
|
|
|
1,020,470
|
|
|
|
|
|
Other
non-current
liabilities
|
|
|
|
|
|
|
5,974
|
|
|
|
21,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,442,400
|
|
|
|
(847,232
|
)
|
Cash generated from operating activities
|
|
|
|
|
|
|
7,262,138
|
|
|
|
3,905,341
|
|
Income taxes paid
|
|
|
|
|
|
|
(416,794
|
)
|
|
|
(187,816
|
)
|
Interests received
|
|
|
|
|
|
|
55,340
|
|
|
|
48,911
|
|
Interests paid
|
|
|
|
|
|
|
(136,483
|
)
|
|
|
(125,530
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
W
|
6,764,201
|
|
|
|
3,640,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
6
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
For the
years ended December 31, 2017 and 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends received
|
|
|
|
|
|
W
|
8,639
|
|
|
|
59,820
|
|
Proceeds from withdrawal of deposits in banks
|
|
|
|
|
|
|
2,206,148
|
|
|
|
3,293,398
|
|
Increase in deposits in banks
|
|
|
|
|
|
|
(1,803,718
|
)
|
|
|
(2,684,810
|
)
|
Acquisition of financial assets at fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
(1,500
|
)
|
Acquisition of
available-for-sale
financial assets
|
|
|
|
|
|
|
(273
|
)
|
|
|
(859
|
)
|
Proceeds from disposal of
available-for-sale
financial assets
|
|
|
|
|
|
|
917
|
|
|
|
507
|
|
Acquisition of investments in equity accounted investees
|
|
|
|
|
|
|
(20,309
|
)
|
|
|
|
|
Proceeds from disposal of investments in equity accounted investees
|
|
|
|
|
|
|
13,128
|
|
|
|
29,745
|
|
Acquisition of property, plant and equipment
|
|
|
|
|
|
|
(6,592,435
|
)
|
|
|
(3,735,948
|
)
|
Proceeds from disposal of property, plant and equipment
|
|
|
|
|
|
|
160,252
|
|
|
|
278,067
|
|
Acquisition of intangible assets
|
|
|
|
|
|
|
(454,448
|
)
|
|
|
(405,167
|
)
|
Proceeds from disposal of intangible assets
|
|
|
|
|
|
|
1,674
|
|
|
|
261
|
|
Government grants received
|
|
|
|
|
|
|
1,859
|
|
|
|
6,393
|
|
Receipt from settlement of derivatives
|
|
|
|
|
|
|
2,592
|
|
|
|
4,008
|
|
Increase in short-term loans
|
|
|
|
|
|
|
|
|
|
|
(2,132
|
)
|
Proceeds from collection of short-term loans
|
|
|
|
|
|
|
1,118
|
|
|
|
8,202
|
|
Increase in long-term loans
|
|
|
|
|
|
|
(13,930
|
)
|
|
|
(32,498
|
)
|
Decrease in deposits
|
|
|
|
|
|
|
4,272
|
|
|
|
2,436
|
|
Increase in deposits
|
|
|
|
|
|
|
(2,648
|
)
|
|
|
(9,105
|
)
|
Proceeds from disposal of emission rights
|
|
|
|
|
|
|
6,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
(6,481,072
|
)
|
|
|
(3,189,182
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
27
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
107,345
|
|
Repayments of short-term borrowings
|
|
|
|
|
|
|
(105,864
|
)
|
|
|
|
|
Proceeds from issuance of debentures
|
|
|
|
|
|
|
497,959
|
|
|
|
597,573
|
|
Proceeds from long-term debt
|
|
|
|
|
|
|
1,195,415
|
|
|
|
1,667,060
|
|
Repayments of long-term debt
|
|
|
|
|
|
|
|
|
|
|
(347,693
|
)
|
Repayments of current portion of long-term debt and debentures
|
|
|
|
|
|
|
(544,731
|
)
|
|
|
(1,520,287
|
)
|
Capital contribution from
non-controlling
interests
|
|
|
|
|
|
|
4,300
|
|
|
|
|
|
Subsidiaries dividends distributed to
non-controlling
interests
|
|
|
|
|
|
|
(5,929
|
)
|
|
|
(17,143
|
)
|
Dividends paid
|
|
|
|
|
|
|
(178,908
|
)
|
|
|
(178,908
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
|
862,242
|
|
|
|
307,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
|
1,145,371
|
|
|
|
759,671
|
|
Cash and cash equivalents at January 1
|
|
|
|
|
|
|
1,558,696
|
|
|
|
751,662
|
|
Effect of exchange rate fluctuations on cash held
|
|
|
|
|
|
|
(101,507
|
)
|
|
|
47,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at December 31
|
|
|
|
|
|
W
|
2,602,560
|
|
|
|
1,558,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
7
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
|
(a)
|
Description of the Controlling Company
|
LG Display Co., Ltd. (the Controlling
Company) was incorporated in February 1985 and the Controlling Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Controlling Company and its subsidiaries (the Group) is to manufacture
and sell displays and its related products. As of December 31, 2017, the Group operates Thin Film Transistor Liquid Crystal Display
(TFT-LCD)
and Organic Light Emitting Diode
(OLED) panel manufacturing plants in Gumi, Paju and China and
TFT-LCD
and OLED module manufacturing plants in Gumi, Paju, China, Poland and Vietnam. The Controlling Company is domiciled in the
Republic of Korea with its address at 128
Yeouidae-ro,
Yeongdeungpo-gu,
Seoul, the Republic of Korea. As of December 31, 2017, LG Electronics Inc., a major
shareholder of the Controlling Company, owns 37.9% (135,625,000 shares) of the Controlling Companys common stock.
The Controlling
Companys common stock is listed on the Korea Exchange under the identifying code 034220. As of December 31, 2017, there are 357,815,700 shares of common stock outstanding. The Controlling Companys common stock is also listed on the
New York Stock Exchange in the form of American Depository Shares (ADSs) under the symbol LPL. One ADS represents
one-half
of one share of common stock. As of December 31, 2017,
there are 24,581,448 ADSs outstanding.
8
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
1.
|
Reporting Entity, Continued
|
|
(b)
|
Consolidated Subsidiaries as of December
31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
Location
|
|
Percentage of
ownership
|
|
|
Fiscal
year end
|
|
Date of
incorporation
|
|
Business
|
|
Capital stocks
|
|
LG Display America, Inc.
|
|
San Jose,
U.S.A.
|
|
|
100
|
%
|
|
December 31
|
|
September 24,
1999
|
|
Sell Display products
|
|
|
USD 411
|
|
LG Display Japan Co., Ltd.
|
|
Tokyo,
Japan
|
|
|
100
|
%
|
|
December 31
|
|
October 12,
1999
|
|
Sell Display products
|
|
|
JPY 95
|
|
LG Display Germany GmbH
|
|
Eschborn,
Germany
|
|
|
100
|
%
|
|
December 31
|
|
November 5,
1999
|
|
Sell Display products
|
|
|
EUR 1
|
|
LG Display Taiwan Co., Ltd.
|
|
Taipei,
Taiwan
|
|
|
100
|
%
|
|
December 31
|
|
April 12,
1999
|
|
Sell Display products
|
|
|
NTD 116
|
|
LG Display Nanjing Co., Ltd.
|
|
Nanjing,
China
|
|
|
100
|
%
|
|
December 31
|
|
July 15, 2002
|
|
Manufacture Display products
|
|
|
CNY 3,020
|
|
LG Display Shanghai Co., Ltd.
|
|
Shanghai,
China
|
|
|
100
|
%
|
|
December 31
|
|
January 16,
2003
|
|
Sell Display products
|
|
|
CNY 4
|
|
LG Display Poland Sp. z o.o.
|
|
Wroclaw,
Poland
|
|
|
100
|
%
|
|
December 31
|
|
September 6,
2005
|
|
Manufacture Display products
|
|
|
PLN 511
|
|
LG Display Guangzhou Co., Ltd.
|
|
Guangzhou,
China
|
|
|
100
|
%
|
|
December 31
|
|
June 30, 2006
|
|
Manufacture Display products
|
|
|
CNY 1,655
|
|
LG Display Shenzhen Co., Ltd.
|
|
Shenzhen,
China
|
|
|
100
|
%
|
|
December 31
|
|
August 28,
2007
|
|
Sell Display products
|
|
|
CNY 4
|
|
LG Display Singapore Pte. Ltd.
|
|
Singapore
|
|
|
100
|
%
|
|
December 31
|
|
January 12,
2009
|
|
Sell Display products
|
|
|
USD 1.1
|
|
L&T Display Technology (Fujian) Limited
|
|
Fujian,
China
|
|
|
51
|
%
|
|
December 31
|
|
January 5,
2010
|
|
Manufacture and sell LCD module and LCD monitor sets
|
|
|
CNY 116
|
|
LG Display Yantai Co., Ltd.
|
|
Yantai,
China
|
|
|
100
|
%
|
|
December 31
|
|
April 19,
2010
|
|
Manufacture Display products
|
|
|
CNY 1,008
|
|
Nanumnuri Co., Ltd.
|
|
Gumi,
South Korea
|
|
|
100
|
%
|
|
December 31
|
|
March 21,
2012
|
|
Janitorial services
|
|
|
KRW 800
|
|
LG Display (China) Co., Ltd.(*1)
|
|
Guangzhou,
China
|
|
|
70
|
%
|
|
December 31
|
|
December 10,
2012
|
|
Manufacture and sell Display products
|
|
|
CNY 8,232
|
|
Unified Innovative Technology, LLC
|
|
Wilmington,
U.S.A.
|
|
|
100
|
%
|
|
December 31
|
|
March 12,
2014
|
|
Manage intellectual property
|
|
|
USD 9
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
Guangzhou,
China
|
|
|
100
|
%
|
|
December 31
|
|
April 28,
2015
|
|
Sell Display products
|
|
|
CNY 1.2
|
|
Global OLED Technology, LLC
|
|
Herndon,
U.S.A.
|
|
|
100
|
%
|
|
December 31
|
|
December 18,
2009
|
|
Manage OLED intellectual property
|
|
|
USD 138
|
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
Haiphong,
Vietnam
|
|
|
100
|
%
|
|
December 31
|
|
May 5, 2016
|
|
Manufacture Display products
|
|
|
USD 100
|
|
Suzhou Lehui Display Co., Ltd.
|
|
Suzhou,
China
|
|
|
100
|
%
|
|
December 31
|
|
July 1, 2016
|
|
Manufacture and sell LCD module and LCD monitor sets
|
|
|
CNY 637
|
|
Money Market Trust(*2)
|
|
Seoul,
South Korea
|
|
|
100
|
%
|
|
December 31
|
|
|
|
Money market trust
|
|
|
KRW 61,471
|
|
9
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
1.
|
Reporting Entity, Continued
|
|
(b)
|
Consolidated Subsidiaries as of December
31, 2017, Continued
|
(*1)
|
In June 2017, LG Display Guangzhou Co., Ltd. (LGDGZ) contributed
W
8,557 million in cash for the capital increase of LG Display (China) Co., Ltd. (LGDCA).
|
(*2)
|
For the year ended December 31, 2017, the Controlling Company acquired
W
61,471 million in Money Market Trust.
|
W
603,493 million and
W
349,977 million, respectively, are
attributable to the Controlling Company over the distributed dividends from consolidated subsidiaries for the years ended December 31, 2017 and 2016.
|
(c)
|
Summary of financial information of subsidiaries at the reporting date is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
2017
|
|
Subsidiaries
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total
shareholders
equity
|
|
|
Sales
|
|
|
Net income
(loss)
|
|
LG Display America, Inc.
|
|
W
|
1,805,429
|
|
|
|
1,801,175
|
|
|
|
4,254
|
|
|
|
11,000,647
|
|
|
|
268
|
|
LG Display Japan Co., Ltd.
|
|
|
245,128
|
|
|
|
244,041
|
|
|
|
1,087
|
|
|
|
2,484,558
|
|
|
|
263
|
|
LG Display Germany GmbH
|
|
|
519,989
|
|
|
|
517,559
|
|
|
|
2,430
|
|
|
|
1,846,424
|
|
|
|
1,441
|
|
LG Display Taiwan Co., Ltd.
|
|
|
450,202
|
|
|
|
439,753
|
|
|
|
10,449
|
|
|
|
1,699,164
|
|
|
|
2,303
|
|
LG Display Nanjing Co., Ltd.
|
|
|
690,353
|
|
|
|
101,291
|
|
|
|
589,062
|
|
|
|
527,566
|
|
|
|
45,649
|
|
LG Display Shanghai Co., Ltd.
|
|
|
723,893
|
|
|
|
719,200
|
|
|
|
4,693
|
|
|
|
1,334,361
|
|
|
|
3,288
|
|
LG Display Poland Sp. z o.o.
|
|
|
173,243
|
|
|
|
8,419
|
|
|
|
164,824
|
|
|
|
35,722
|
|
|
|
1,228
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
1,864,870
|
|
|
|
1,321,134
|
|
|
|
543,736
|
|
|
|
2,544,600
|
|
|
|
143,402
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
230,670
|
|
|
|
227,288
|
|
|
|
3,382
|
|
|
|
1,870,152
|
|
|
|
2,384
|
|
LG Display Singapore Pte. Ltd.
|
|
|
365,426
|
|
|
|
364,604
|
|
|
|
822
|
|
|
|
968,583
|
|
|
|
1,082
|
|
L&T Display Technology (Fujian) Limited
|
|
|
322,684
|
|
|
|
259,558
|
|
|
|
63,126
|
|
|
|
1,348,391
|
|
|
|
(6,912
|
)
|
LG Display Yantai Co., Ltd.
|
|
|
1,239,341
|
|
|
|
944,190
|
|
|
|
295,151
|
|
|
|
2,212,055
|
|
|
|
102,017
|
|
Nanumnuri Co., Ltd.
|
|
|
5,659
|
|
|
|
4,540
|
|
|
|
1,119
|
|
|
|
21,530
|
|
|
|
109
|
|
LG Display (China) Co., Ltd.
|
|
|
3,395,779
|
|
|
|
1,473,781
|
|
|
|
1,921,998
|
|
|
|
2,922,116
|
|
|
|
458,940
|
|
Unified Innovative Technology, LLC
|
|
|
5,664
|
|
|
|
14
|
|
|
|
5,650
|
|
|
|
|
|
|
|
(1,025
|
)
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
98,079
|
|
|
|
97,038
|
|
|
|
1,041
|
|
|
|
626,322
|
|
|
|
852
|
|
Global OLED Technology, LLC
|
|
|
79,429
|
|
|
|
13,616
|
|
|
|
65,813
|
|
|
|
8,160
|
|
|
|
(4,779
|
)
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
1,066,218
|
|
|
|
976,339
|
|
|
|
89,879
|
|
|
|
148,725
|
|
|
|
(14,543
|
)
|
Suzhou Lehui Display Co., Ltd
|
|
|
202,661
|
|
|
|
90,123
|
|
|
|
112,538
|
|
|
|
408,797
|
|
|
|
3,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,484,717
|
|
|
|
9,603,663
|
|
|
|
3,881,054
|
|
|
|
32,007,873
|
|
|
|
739,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
1.
|
Reporting Entity, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
2016
|
|
Subsidiaries
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total
shareholders
equity
|
|
|
Sales
|
|
|
Net income
(loss)
|
|
LG Display America, Inc.
|
|
W
|
1,956,963
|
|
|
|
1,939,225
|
|
|
|
17,738
|
|
|
|
10,616,003
|
|
|
|
8,888
|
|
LG Display Japan Co., Ltd.
|
|
|
275,902
|
|
|
|
271,356
|
|
|
|
4,546
|
|
|
|
1,841,304
|
|
|
|
2,148
|
|
LG Display Germany GmbH
|
|
|
635,597
|
|
|
|
630,225
|
|
|
|
5,372
|
|
|
|
1,956,743
|
|
|
|
2,060
|
|
LG Display Taiwan Co., Ltd.
|
|
|
603,406
|
|
|
|
591,555
|
|
|
|
11,851
|
|
|
|
1,683,349
|
|
|
|
3,350
|
|
LG Display Nanjing Co., Ltd.
|
|
|
729,928
|
|
|
|
90,116
|
|
|
|
639,812
|
|
|
|
447,544
|
|
|
|
43,068
|
|
LG Display Shanghai Co., Ltd.
|
|
|
778,951
|
|
|
|
764,890
|
|
|
|
14,061
|
|
|
|
1,543,986
|
|
|
|
5,881
|
|
LG Display Poland Sp. z o.o.
|
|
|
162,117
|
|
|
|
8,579
|
|
|
|
153,538
|
|
|
|
47,821
|
|
|
|
3,070
|
|
LG Display Guangzhou Co., Ltd.
|
|
|
2,094,388
|
|
|
|
1,282,653
|
|
|
|
811,735
|
|
|
|
2,517,322
|
|
|
|
211,874
|
|
LG Display Shenzhen Co., Ltd.
|
|
|
257,262
|
|
|
|
250,895
|
|
|
|
6,367
|
|
|
|
1,886,790
|
|
|
|
2,509
|
|
LG Display Singapore Pte. Ltd.
|
|
|
434,194
|
|
|
|
432,260
|
|
|
|
1,934
|
|
|
|
981,219
|
|
|
|
1,807
|
|
L&T Display Technology (Fujian) Limited
|
|
|
374,698
|
|
|
|
300,695
|
|
|
|
74,003
|
|
|
|
1,327,560
|
|
|
|
18,289
|
|
LG Display Yantai Co., Ltd.
|
|
|
1,622,688
|
|
|
|
1,278,088
|
|
|
|
344,600
|
|
|
|
2,402,669
|
|
|
|
75,010
|
|
Nanumnuri Co., Ltd.
|
|
|
4,612
|
|
|
|
3,602
|
|
|
|
1,010
|
|
|
|
16,047
|
|
|
|
(355
|
)
|
LG Display (China) Co., Ltd.
|
|
|
3,121,451
|
|
|
|
1,554,529
|
|
|
|
1,566,922
|
|
|
|
1,912,569
|
|
|
|
52,778
|
|
Unified Innovative Technology, LLC
|
|
|
7,497
|
|
|
|
18
|
|
|
|
7,479
|
|
|
|
|
|
|
|
(1,184
|
)
|
LG Display Guangzhou Trading Co., Ltd.
|
|
|
158,183
|
|
|
|
157,588
|
|
|
|
595
|
|
|
|
424,919
|
|
|
|
206
|
|
Global OLED Technology, LLC
|
|
|
91,062
|
|
|
|
11,678
|
|
|
|
79,384
|
|
|
|
8,480
|
|
|
|
(6,446
|
)
|
LG Display Vietnam Haiphong Co., Ltd.
|
|
|
163,535
|
|
|
|
46,156
|
|
|
|
117,379
|
|
|
|
|
|
|
|
(1,018
|
)
|
Suzhou Lehui Display Co., Ltd.(*)
|
|
|
227,464
|
|
|
|
115,486
|
|
|
|
111,978
|
|
|
|
203,738
|
|
|
|
(8,236
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,699,898
|
|
|
|
9,729,594
|
|
|
|
3,970,304
|
|
|
|
29,818,063
|
|
|
|
413,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Revenue and profit of Suzhou Lehui Display Co., Ltd. for the year ended December 31, 2016 represents financial information subsequent to its acquisition date, July 1, 2016.
|
11
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
2.
|
Basis of Presenting Financial Statements
|
|
(a)
|
Statement of Compliance
|
In accordance with the Act on External Audits of Stock
Companies, these consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards
(K-IFRS).
The consolidated financial statements were authorized for issuance by the Board of Directors on January 22, 2018, which will be submitted
for approval to the shareholders meeting to be held on March 15, 2018.
The consolidated financial statements have been prepared on the
historical cost basis except for the following material items in the consolidated statements of financial position:
|
|
|
derivative instruments, financial assets at fair value through profit or loss and
available-for-sale
financial assets are measured at fair
value, and
|
|
|
|
net defined benefit liabilities are recognized as the present value of defined benefit obligations less the fair value of plan assets
|
|
(c)
|
Functional and Presentation Currency
|
The consolidated financial statements are
presented in Korean won, which is the Controlling Companys functional currency.
|
(d)
|
Use of Estimates and Judgments
|
The preparation of the consolidated financial statements
in conformity with
K-IFRSs
requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
Information
about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:
|
|
|
Classification of financial instruments (note 3.(e))
|
Information about assumptions and
estimation uncertainties that have a significant risk of resulting in a material adjustment within the next 12 months is included in the following notes:
|
|
|
Recognition and measurement of provisions (note 3.(k), 13 and 14(a))
|
|
|
|
Measurement of defined benefit obligations (note 12)
|
|
|
|
Deferred tax assets and liabilities (note 24)
|
12
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies
|
The significant accounting policies followed
by the Group in preparation of its consolidated financial statements are as follows:
(i) Business Combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration
transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities in accordance with
K-IFRS
No. 1032 and
K-IFRS
No. 1039.
The consideration transferred does not include amounts related to the settlement of
pre-existing
relationships. Such amounts are generally recognized in profit or loss.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed, or has right to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until
the date on which control ceases.
(iii)
Non-controlling
interests
Non-controlling
interests (NCI) are measured at their proportionate share of the
acquirees identifiable net assets at the acquisition date.
Changes in the Groups interest in subsidiaries that do not result
in a loss of control are accounted for as equity transactions.
(iv) Loss of Control
If the Controlling Company loses control of subsidiaries, the Controlling Company derecognizes the assets and liabilities of the former
subsidiaries from the consolidated statement of financial position and recognizes the gain or loss associated with the loss of control attributable to the former controlling interest. Meanwhile, the Controlling Company recognizes any investment
retained in the former subsidiaries at its fair value when control is lost.
13
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(a)
|
Consolidation, Continued
|
(v) Associates and joint ventures (equity method investees)
Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating
policies. A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are initially recognized at cost and subsequently accounted for using the equity method of
accounting. The carrying amount of investments in associates and joint ventures is increased or decreased to recognize the Groups share of the profits or losses and changes in the Groups proportionate interest of the investee after the
date of acquisition. Distributions received from an investee reduce the carrying amount of the investment.
If an associate or joint
ventures uses accounting policies different from those of the Controlling Company for like transactions and events in similar circumstances, appropriate adjustments are made to the consolidated financial statements. As of and during the periods
presented in the consolidated financial statements, no adjustments were made in applying the equity method.
When the Groups share of
losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to nil, and the recognition of further losses is discontinued except to the extent that the Group has
an obligation or has made payments on behalf of the investee.
(vi) Transactions eliminated on consolidation
Intra-group balances and transactions, including income and expenses and any unrealized income and expenses and balance of trade accounts and
notes receivable and payable arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Groups interest in the
investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
14
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(b)
|
Foreign Currency Transactions and Translation
|
Transactions in foreign currencies are
translated to the respective functional currencies of the Group at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rate on
the reporting date.
Non-monetary
assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the
fair value was originally determined. Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on
available-for-sale
equity instruments and a financial asset and liability designated as a cash flow hedge, which are recognized in other comprehensive income.
Non-monetary
items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the original transaction. Exchange differences arising on the settlement
of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition are recognized in profit or loss in the period in which they arise. Foreign currency differences arising from
assets and liabilities in relation to the investing and financing activities including loans, bonds and cash and cash equivalents are recognized in finance income (costs) in the consolidated statement of comprehensive income and foreign currency
differences arising from assets and liabilities in relation to activities other than investing and financing activities are recognized in other
non-operating
income (expense) in the consolidated statement of
comprehensive income. Relevant foreign currency differences are presented in gross amounts in the consolidated statement of comprehensive income.
If the presentation currency of the Group is different from a foreign operations functional currency, the financial position and
financial performance of the foreign operation are translated into the presentation currency using the following methods. The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy,
including goodwill and fair value adjustments arising on acquisition, are translated to the Groups functional currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the Groups
functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income. However, if the operation is a
non-wholly-owned
subsidiary,
then the relevant proportionate share of the translation difference is allocated to the
non-controlling
interests. When a foreign operation is disposed of in its entirety or partially such that control,
significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Group disposes part of its interest
in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part of an associate or joint venture while retaining significant influence or joint control, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
Any goodwill arising on the acquisition of a foreign
operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation is treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional
currency of the foreign operation and translated at the at each reporting dates exchange rate.
|
(c)
|
Cash and cash equivalents
|
Cash and cash equivalents include all cash balances and
short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash.
15
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
Inventories are measured at the lower of cost and net realizable value. The
cost of inventories is based on the weighted-average method, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net
realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated selling expenses. In the case of manufactured inventories and work-in-process, cost includes an appropriate
share of production overheads based on the actual capacity of production facilities. However, the normal capacity is used for the allocation of fixed production overheads if the actual level of production is lower than the normal capacity.
|
(e)
|
Financial Instruments
|
(i)
Non-derivative
financial assets
The Group initially recognizes loans and receivables and deposits on the date they are originated. All other
non-derivative
financial assets, including financial assets at fair value through profit or loss (FVTPL), are recognized in the consolidated statement of financial position when the Group becomes a party
to the contractual provisions of the instrument.
The Group derecognizes a financial asset when the contractual rights to the cash flows
from the asset expire, or it transfers the rights to receive the contractual cash flows of the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in
transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If a transfer does not result in derecognition because the Group has retained substantially all the risks and rewards of ownership
of the transferred asset, the Group continues to recognize the transferred asset and recognizes a financial liability for the consideration received. In subsequent periods, the Group recognizes any income on the transferred assets and any expense
incurred on the financial liability.
Financial assets and liabilities are offset and the net amount presented in the consolidated
statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.
The Group has the following
non-derivative
financial assets: financial assets at FVTPL, loans and
receivables and
available-for-sale
financial assets.
16
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(e)
|
Financial Instruments, Continued
|
(i)
Non-derivative
financial assets,
Continued
Financial assets at fair value through profit or loss
A financial asset is classified at FVTPL if it is classified as held for trading or is designated as such upon initial recognition. If a
contract contains one or more embedded derivatives, the Group designates the entire hybrid (combined) contract as a financial asset at FVTPL unless: the embedded derivative(s) does not significantly modify the cash flows that otherwise would be
required by the contract; or it is clear with little or no analysis when a similar hybrid (combined) instrument is first considered that separation of the embedded derivative(s) is prohibited. Upon initial recognition, attributable transaction costs
are recognized in profit or loss as incurred. Financial assets at FVTPL are measured at fair value, and changes therein are recognized in profit or loss.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. When loans and
receivables are recognized initially, the Group measures them at their fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset. Subsequent to initial recognition, loans and receivables are
measured at amortized cost using the effective interest method, less any impairment losses. Loans and receivables comprise trade accounts and notes receivable and other accounts receivable.
Available-for-sale
financial assets
Available-for-sale
financial assets are
non-derivative
financial assets that are designated as
available-for-sale
or that are not classified as financial assets at FVTPL,
held-to-maturity
financial assets or loans and receivables. The Groups investments in equity securities and certain debt securities are classified as
available-for-sale
financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency
differences on
available-for-sale
equity instruments, are recognized in other comprehensive income and presented within equity in the fair value reserve. When an
investment in
available-for-sale
financial assets is derecognized, the cumulative gain or loss in other comprehensive income is transferred to profit or loss.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured
and whose derivatives are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost.
17
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(e)
|
Financial Instruments, Continued
|
(ii)
Non-derivative
financial liabilities
The Group classifies financial liabilities into two categories, financial liabilities at FVTPL and other financial liabilities, in accordance
with the substance of the contractual arrangement and the definitions of financial liabilities, and recognizes them in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.
Financial liabilities at FVTPL include financial liabilities held for trading or designated as such upon initial recognition at FVTPL.
After initial recognition, financial liabilities at FVTPL are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issuance of financial
liabilities are recognized in profit or loss as incurred.
Non-derivative
financial liabilities
other than financial liabilities classified as FVTPL are classified as other financial liabilities and measured initially at fair value minus transaction costs that are directly attributable to the issuance of financial liabilities. Subsequent to
initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. As of December 31, 2017,
non-derivative
financial liabilities comprise borrowings,
bonds and others.
The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.
(iii) Share Capital
The
Group only issued common stocks and they are classified as equity. Incremental costs directly attributable to the issuance of common stocks are recognized as a deduction from equity, net of tax effects. Capital contributed in excess of par value
upon issuance of common stocks is classified as share premium within equity.
(iv) Derivative financial instruments
Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes
therein are accounted for as described below.
Hedge Accounting
If necessary, the Group designates derivatives as hedging items to hedge the risk of changes in the fair value of assets, liabilities or firm
commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).
On initial designation of the hedge, the Groups management formally designates and documents the relationship between the hedging
instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship, both at the inception
of the hedge relationship as well as on an ongoing basis.
18
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
Summary of Significant Accounting Policies, Continued
|
(e)
|
Financial Instruments, Continued
|
(iv) Derivative financial instruments, Continued
i) Fair value hedges
Change in the fair value of a derivative hedging instrument designated as a fair value hedge and the hedged item is recognized in profit or
loss, respectively. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the statement of
comprehensive income. The Group discontinues fair value hedge accounting if it does not designate the derivative hedging instrument and the hedged item as the hedge relationship between them anymore or if the hedging instrument expires or is sold,
terminated or exercised, or if the hedge no longer meets the criteria for hedge accounting. Any adjustment arising from gain or loss on the hedged item attributable to the hedged risk is amortized to profit or loss from the date the hedge accounting
is discontinued.
ii) Cash flow hedges
When a derivative designated as a cash flow hedging instrument meets the criteria of cash flow hedge accounting, the effective portion of
changes in the fair value of the derivative is recognized in other comprehensive income and the ineffective portion of changes in the fair value of the derivative is recognized in profit or loss. The Group discontinues cash flow hedge accounting if
it does not designate the derivative hedging instrument and the hedged item as the hedge relationship between them any more or if the hedging instruments expires or is sold, terminated or exercised, or if the hedge no longer meets the criteria for
hedge accounting. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted
transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.
Embedded derivative
Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host
contract and the embedded derivative are not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the combined instrument is not measured at FVTPL. Changes in the fair
value of separable embedded derivatives are recognized immediately in profit or loss.
Other derivative financial
instruments
Derivative financial instruments are measured at fair value and changes of them not designated as a hedging instrument
or not effective for hedging are recognized in profit or loss.
19
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(f)
|
Property, Plant and Equipment
|
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes an
expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any costs directly attributable to bringing the assets to a working condition for their
intended use, the costs of dismantling and removing the items and restoring the site on which they are located and borrowing costs on qualifying assets.
The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net
disposal proceeds, if any, and the carrying amount of the item and recognized in other
non-operating
income or other
non-operating
expenses.
(ii) Subsequent costs
Subsequent expenditure on an item of property, plant and equipment is recognized as part of its cost only if it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The costs of the
day-to-day
servicing of property,
plant and equipment are recognized in profit or loss as incurred.
(iii) Depreciation
Depreciation is recognized in profit or loss on a straight-line basis, reflecting the pattern in which the assets future economic
benefits are expected to be consumed by the Group. The residual value of property, plant and equipment is zero. Land is not depreciated.
Estimated useful lives of the assets are as follows:
|
|
|
|
|
Useful lives (years)
|
Buildings and structures
|
|
20, 40
|
Machinery
|
|
4, 5
|
Furniture and fixtures
|
|
4
|
Equipment, tools and vehicles
|
|
4, 12
|
Depreciation methods, useful lives and residual values are reviewed at each financial yearend and adjusted if
appropriate and any changes are accounted for as changes in accounting estimates. There were no such changes for all periods presented.
The Group capitalizes borrowing costs, which includes interests and
exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs, directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of
that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the
Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Group immediately
recognizes other borrowing costs as an expense.
20
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
In case there is reasonable assurance that the Group will comply with
the conditions attached to a government grant, the government grant is recognized as follows:
(i) Grants related to the purchase or
construction of assets
A government grant related to the purchase or construction of assets is deducted in calculating the carrying
amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense and cash related to grant received is presented in investing activities in the statement of cash flows.
(ii) Grants for compensating the Groups expenses incurred
A government grant that compensates the Group for expenses incurred is recognized in profit or loss as a deduction from relevant expenses on a
systematic basis in the periods in which the expenses are recognized.
(iii) Other government grants
A government grant that becomes receivable for the purpose of giving immediate financial support to the Group with no compensation for expenses
or losses already incurred or no future related costs is recognized as income of the period in which it becomes receivable.
Intangible assets are initially measured at cost. Subsequently,
intangible assets are measured at cost less accumulated amortization and accumulated impairment losses.
(i) Goodwill
Goodwill arising from business combinations is recognized as the excess of the acquisition cost of investments in subsidiaries, associates and
joint ventures over the Groups share of the net fair value of the identifiable assets acquired and liabilities assumed. Any deficit is a bargain purchase that is recognized in profit or loss. Goodwill is measured at cost less accumulated
impairment losses.
21
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(i)
|
Intangible Assets, Continued
|
(ii) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is
recognized in profit or loss as incurred.
Development activities involve a plan or design of the production of new or substantially
improved products and processes. Development expenditure is capitalized only if the Group can demonstrate all of the following:
|
|
|
the technical feasibility of completing the intangible asset so that it will be available for use or sale,
|
|
|
|
its intention to complete the intangible asset and use or sell it,
|
|
|
|
its ability to use or sell the intangible asset,
|
|
|
|
how the intangible asset will generate probable future economic benefits. Among other things, the Group can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or,
if it is to be used internally, the usefulness of the intangible asset,
|
|
|
|
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and
|
|
|
|
its ability to measure reliably the expenditure attributable to the intangible asset during its development.
|
The expenditure capitalized includes the cost of materials, direct labor, overhead costs that are directly attributable to preparing the asset
for its intended use, and borrowing costs on qualifying assets.
(iii) Other intangible assets
Other intangible assets include intellectual property rights, software, customer relationships, technology, memberships and others.
(iv) Subsequent costs
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific intangible asset to which it
relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.
22
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(i)
|
Intangible Assets, Continued
|
(v) Amortization
Amortization is calculated on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date
that they are available for use. The residual value of intangible assets is zero. However, as there are no foreseeable limits to the periods over which condominium and golf club memberships are expected to be available for use, these intangible
assets are regarded as having indefinite useful lives and not amortized.
|
|
|
|
|
Estimated useful lives (years)
|
Intellectual property rights
|
|
5, 10
|
Rights to use electricity, water and gas supply facilities
|
|
10
|
Software
|
|
4
|
Customer relationships
|
|
7, 10
|
Technology
|
|
10
|
Development costs
|
|
(*)
|
Condominium and golf club memberships
|
|
Not amortized
|
(*)
|
Capitalized development costs are amortized over the useful life considering the life cycle of the developed products. Amortization of capitalized development costs is recognized in research and development expenses in
the consolidated statement of comprehensive income.
|
Amortization periods and the amortization methods for intangible assets
with finite useful lives are reviewed at each financial
year-end.
The useful lives of intangible assets that are not being amortized are reviewed each period to determine whether events and circumstances
continue to support indefinite useful life assessments for those assets. If appropriate, the changes are accounted for as changes in accounting estimates.
(i) Financial assets
A financial asset not carried at FVTPL is assessed at each reporting date to determine whether there is objective evidence that it is impaired.
A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be
estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency in interest or principal
payments by an issuer or a debtor, for economic reasons relating to the borrowers financial difficulty, granting to the borrower a concession that the Group would not otherwise consider, or the disappearance of an active market for that
financial asset. In addition, for an investment in an equity security, objective evidence of impairment includes significant financial difficulty of the issuer and a significant or prolonged decline in its fair value below its cost.
23
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(j)
|
Impairment, Continued
|
(i) Financial assets, Continued
Management considers evidence of impairment for loans and receivables at both a specific
asset and collective level. All individually significant loans and receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment
that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics.
In assessing collective impairment the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss
incurred, adjusted for managements judgment as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
If there is objective evidence that an impairment loss has been incurred on financial assets carried at amortized cost, the amount of the
impairment loss is measured as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the assets original effective interest rate. Impairment losses are recognized in profit or loss
and reflected in an allowance account against loans and receivables.
The amount of the impairment loss on financial assets including
equity securities carried at cost is measured as the difference between the carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses
are not reversed.
When a decline in the fair value of an
available-for-sale
financial asset has been recognized in other comprehensive income the amount of the cumulative loss that is reclassified from equity to profit or loss
is the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
In a subsequent period, for the financial assets recorded at fair value, if the fair value increases and the increase can be objectively
related to an event occurring after the impairment loss was recognized, the previously recognized impairment loss is reversed. The amount of the reversal in financial assets carried at amortized cost and a debt instrument classified as available for
sale is recognized in profit or loss. However, impairment loss recognized for an investment in an equity instrument classified as
available-for-sale
is reversed through
other comprehensive income.
24
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(j)
|
Impairment, Continued
|
(ii)
Non-financial
assets
The carrying amounts of the Groups
non-financial
assets, other than assets arising from employee
benefits, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. For goodwill, and
intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, the recoverable amount is estimated each year at the same time.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or CGU). The recoverable amount of an asset or cash-generating unit is
determined as the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax
discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. Fair value less costs to sell is based on the best information available to reflect the amount that the Group could obtain from the
disposal of the asset in an arms length transaction between knowledgeable, willing parties, after deducting the costs of disposal.
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are
recognized in profit or loss. Goodwill acquired in a business combination is allocated to CGUs that are expected to benefit from the synergies of the combination. Impairment losses recognized in respect of a CGU are allocated first to reduce the
carrying amount of any goodwill allocated to the unit, and then to reduce the carrying amounts of the other assets in the unit on a pro rata basis.
In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not
exceed the carrying amount that would have been determined, net of accumulated depreciation or amortization, if no impairment loss had been recognized. An impairment loss in respect of goodwill is not reversed.
25
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
A provision is recognized if, as a result of a past event, the Group has a
present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a
provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The unwinding of the discount is recognized as finance cost.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that
an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
The Group
recognizes a liability for warranty obligations based on the estimated costs expected to be incurred under its basic limited warranty. This warranty covers defective products and is normally applicable for eighteen months from the date of purchase.
These liabilities are accrued when product revenues are recognized. Factors that affect the Groups warranty liability include historical and anticipated rates of warranty claims on those repairs and cost per claim to satisfy the Groups
warranty obligation. Warranty costs primarily include raw materials and labor costs. As these factors are impacted by actual experience and future expectations, management periodically assesses the adequacy of its recorded warranty liabilities and
adjusts the amounts as necessary. Accrued warranty obligations are included in the current and
non-current
provisions.
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources, are recorded when it
is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.
(i) Short-term employee benefits
Short-term employee benefits that are due to be settled within twelve months after the end of the period in which the employees render the
related service are recognized in profit or loss on an undiscounted basis. The expected cost of profit-sharing and bonus plans and others are recognized when the Group has a present legal or constructive obligation to make payments as a result of
past events and a reliable estimate of the obligation can be made.
(ii) Other long-term employee benefits
The Groups net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that
employees have earned in return for their service in the current and prior periods.
26
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(l)
|
Employee Benefits, Continued
|
(iii) Defined contribution plan
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will
have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the periods during which services are rendered by
employees.
(iv) Defined benefit plan
A defined benefit plan is a post-employment benefit plan other than defined contribution plans. The Groups net obligation in respect of
its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of
any plan assets is deducted.
The calculation is performed annually by an independent actuary using the projected unit credit method. The
discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Groups obligations and that are denominated in the same currency in which the benefits are expected to be
paid. The Group recognizes all actuarial gains and losses arising from defined benefit plans in retained earnings immediately.
The Group
determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the
then-net
defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Consequently, the net
interest on the net defined benefit liability (asset) now comprises: interest cost on the defined benefit obligation, interest income on plan assets, and interest on the effect on the asset ceiling.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain
or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Revenue from the sale of goods in the course of ordinary activities is measured
at the fair value of the consideration received or receivable, net of estimated returns, earned trade discounts, volume rebates and other cash incentives paid to customers. Revenue is recognized when persuasive evidence exists that the significant
risks and rewards of ownership have been transferred to the buyer, generally on delivery and acceptance at the customers premises, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated
reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is recognized as
a reduction of revenue when the sales are recognized. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenues in the consolidated statements of
comprehensive income.
27
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
An operating segment is a component of the Group that: 1) engages in
business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with other components of the group, 2) whose operating results are reviewed regularly by the Groups chief
operating decision maker (CODM) in order to allocate resources and assess its performance, and 3) for which discrete financial information is available. Management has determined that the CODM of the Group is the Board of Directors. The
CODM does not receive and therefore does not review discrete financial information for any component of the Group. Consequently, no operating segment information is included in these consolidated financial statements. Entity wide disclosures of
geographic and product revenue information are provided in note 17 to these consolidated financial statements.
|
(o)
|
Finance Income and Finance Costs
|
Finance income comprises interest income on funds
invested (including
available-for-sale
financial assets), dividend income, gains on the disposal of
available-for-sale
financial assets, changes in the fair value of financial assets at FVTPL, and gains on hedging instruments that are recognized in profit or loss.
Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Groups right to receive payment is established.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, changes in the fair value of financial assets
at FVTPL, impairment losses recognized on financial assets, and losses on hedging instruments that are recognized in profit or loss. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized as part of the cost of that asset.
Income tax expense comprises current and deferred tax. Current tax and
deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.
(i) Current tax
Current
tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. The taxable profit is
different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and
non-taxable
or
non-deductible
items from the accounting profit.
28
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(p)
|
Income Tax, Continued
|
(ii) Deferred tax
Deferred tax is recognized, using the liability method, in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is
settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the
manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. However, deferred tax is not recognized for taxable temporary differences arising on the initial
recognition of goodwill.
The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments
in subsidiaries, associates, and interests in joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the
foreseeable future. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that the differences relating to investments in subsidiaries, associates and joint ventures will reverse in the
foreseeable future and taxable profit will be available against which the temporary difference can be utilized.
Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
The Group offsets deferred tax assets and deferred tax liabilities if, and only if the Group has a legally enforceable right to set off current
tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either
to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously.
The Controlling Company presents basic and diluted earnings per
share (EPS) data for its common stocks. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Controlling Company by the weighted average number of common stocks outstanding during the
period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of common stocks outstanding, adjusted for the effects of all dilutive potential common stocks such as
convertible bonds and others.
29
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(r)
|
Change in Accounting Policies
|
The Group has consistently applied the accounting
policies to the consolidated financial statements for 2017 and 2016 except for the new amendments effective for annual periods beginning on or after January 1, 2017 as mentioned below.
|
(i)
|
K-IFRS
No.
1007,
Statement of Cash Flows
|
The Group has adopted the amendment to
K-IFRS
No. 1007,
Statement of Cash Flows
, since
January 1, 2017. The amendment to
K-IFRS
No. 1007 is part of the disclosure initiative to improve presentation and disclosure in financial statements and requires an entity to provide disclosures
that enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes due to cash flows and
non-cash
changes such as changes from financing cash
flows, changes arising from obtaining or losing control of subsidiaries or other businesses, the effect of changes in foreign exchange rates and changes in fair value and other changes. The Group has applied the amendment and disclosed changes in
liabilities arose from financing activities including both changes due to cash flows and
non-cash
changes in note 27.
|
(ii)
|
K-IFRS
No.
1012,
Income Taxes
|
The Group has adopted the amendment to
K-IFRS
No. 1012,
Income Taxes
, since January 1,
2017. The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendment provide
guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. There is no impact of applying this amendment on the
consolidated financial statements.
|
(s)
|
New Standards and Amendments Not Yet Adopted
|
The following new standards and amendments
to existing standards have been published and are mandatory for the Group for annual periods beginning after January 1, 2017, and the Group has not early adopted them.
|
(i)
|
K-IFRS
No.
1109,
Financial Instruments
|
K-IFRS
No. 1109,
Financial Instruments
, published on September 25, 2015 which will
replace
K-IFRS
No. 1039,
Financial Instruments: Recognition and Measurement
, is effective for annual periods beginning on January 1, 2018, with early adoption permitted. The Group plans to
adopt
K-IFRS
No. 1109 in its consolidated financial statements for annual periods beginning on January 1, 2018.
Adoption of
K-IFRS
No. 1109 will generally be applied retrospectively, except as described below.
|
|
|
Advantage of exemption allowing the Group not to restate comparative information for prior periods with respect to classification, measurement and impairment changes.
|
|
|
|
Prospective application of new hedge accounting except for those specified in
K-IFRS
No. 1109 for retrospective application such as accounting for the time value of options
and others.
|
30
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(s)
|
New Standards and Amendments Not Yet Adopted, Continued
|
Key features of
K-IFRS
No. 1109 are a) new
classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics, b) impairment model based on changes in expected credit losses, and c) new approach to
hedge qualification and methods for assessing hedge effectiveness.
Adoption of
K-IFRS
No. 1109 necessitates the assessment on the potential impact on the Groups consolidated financial statements resulting from the application of new standards, revision of its accounting process and internal controls related to reporting
financial instruments. The quantitative impact of adopting
K-IFRS
No. 1109 on the Groups consolidated financial statements in 2018 may differ because it will be dependent on the financial
instruments that the Group holds and economic conditions at that time as well as accounting elections and judgments that it will make in the future.
During the year ended December 31, 2017, the Group modified the internal controls and the accounting system in preparation of adoption of
K-IFRS
No. 1109. Management believes that the adoption of the amendment is expected to have no significant impact on the consolidated financial statements of the Group. The potential general impact on its
consolidated financial statements resulting from the application of new standards are as follows.
Classification and Measurement of
Financial Assets
K-IFRS
No. 1109 contains three principal classification categories for
financial assets: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL), based on the business model in which assets are managed and their cash flow
characteristics. However, derivatives embedded in contracts where the host is a financial assets in the scope of the standard are never bifurcated. Instead, the hybrid financial instrument as a whole is assessed for classification.
|
|
|
|
|
Business model
assessment
|
|
Contractual cash flow characteristics
|
|
Solely payments of
principal and interest
|
|
Others
|
Hold to collect contractual cash flows
|
|
Amortized cost (*1)
|
|
FVTPL (*2)
|
Hold to collect contractual cash flows and sell financial assets
|
|
FVOCI
|
|
Hold to sell financial assets and others
|
|
FVTPL
|
|
(*1)
|
The Group may irrevocably designate a financial asset as measured at FVTPL using the fair value option at initial recognition if doing so eliminates or significantly reduces accounting mismatch.
|
(*2)
|
The Group may irrevocably designate an equity investment that is not held for trading as measured at FVOCI using the fair value option.
|
The requirements to classify financial assets as amortized cost or FVOCI under
K-IFRS
No. 1109 are
more restrictive than them under
K-IFRS
No. 1039. Accordingly, increase in proportion of financial assets classified as FVTPL may result in increase of volatility in profit or loss of the Group. As of
December 31, 2017, the Group recognized
W
7,938,886 million of loans and receivable,
W
5,142 million of
available-for-sale
financial assets and
W
1,552 million of financial assets at fair value through profit or loss.
31
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(s)
|
New Standards and Amendments Not Yet Adopted, Continued
|
A debt investment is measured at amortized cost if it meets both of the following conditions:
|
|
|
The asset is held within a business model whose objective is achieved by collecting contractual cash flows; and
|
|
|
|
The contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.
|
As of December 31, 2017, the Group recognized
W
7,938,886 million of loans and receivables and
measured at amortized cost.
A debt investment is measured at FVOCI if it meets both of the following conditions:
|
|
|
The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
|
|
|
|
The contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.
|
As of December 31, 2017, the Group recognized
W
162 million of debt instruments classified as
available-for-sale
financial assets.
Equity investment that are
not held for trading may be irrevocably designated as FVOCI on initial recognition and they are not subsequently recycled to profit or loss. As of December 31, 2017, the Group recognized
W
4,980 million of
equity investment classified as
available-for-sale
financial assets.
A financial asset is measured at FVTPL, if:
|
|
|
The assets contractual cash flows do not represent solely payments of principal and interest on the principal amount outstanding;
|
|
|
|
Debt instrument is held for trading; or
|
|
|
|
Equity instrument is not designated as FVOCI.
|
As of December 31, 2017, the Group
recognized
W
1,552 million of debt instrument classified as FVTPL.
Based on the evaluation to date,
upon adoption of
K-IFRS
No.1109,
W
4,980 million of
available-for-sale
financial assets is
expected to be classified as FVTPL.
Classification and Measurement of Financial Liabilities
Under
K-IFRS
No. 1109, the amount of change in the fair value of liabilities designated as at
FVTPL that is attributable to changes in the credit risk of the liability is not presented in the item of profit or loss, but in OCI and they are not subsequently recycled to profit or loss. However, if accounting mismatch is created or enlarged as
a result of this accounting treatment, the amount of change in the credit risk of the financial liabilities is also recognized as profit or loss.
Adoption of
K-IFRS
No. 1109 may result in decrease of profit or loss in relation to evaluation of
financial liabilities as some of change in the fair value of financial liabilities designated as at FVTPL is presented in OCI. As of December 31, 2017, there was no financial liabilities measured at FVTPL.
32
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(s)
|
New Standards and Amendments Not Yet Adopted, Continued
|
Impairment: Financial assets and contract assets
Impairment loss is recognized if there is any objective evidence that a financial asset or group of financial asset is impaired according to
incurred loss model under
K-IFRS
No. 1039. However,
K-IFRS
No. 1109 replaces the incurred loss model in
K-IFRS
No. 1039 with an expected credit loss impairment model which applies to debt instruments measured at amortized cost or at fair value through other comprehensive income, lease
receivable, loan commitments and financial guarantee contracts.
Under
K-IFRS
No. 1109, loss
allowance is classified into three stages below in accordance with increase
of credit risk after initial recognition of financial assets
and measured on the
12-month
expected credit loss (ECL) or lifetime ECL basis. Under
K-IFRS
No. 1109, loss allowances are recognized based on the
following method, the timing of which is earlier than that under
K-IFRS
1039.
|
|
|
|
|
Classification
|
|
Loss
allowances
|
Stage 1
|
|
No significant increase in credit risk since initial recognition
|
|
12-month
expected credit losses: the expected credit losses that result from default events that are possible within 12 months after the reporting date.
|
Stage 2
|
|
Significant increase in credit risk since initial recognition
|
|
Lifetime expected credit losses: the expected credit losses that result from all possible default events over the expected life of the financial instrument.
|
Stage 3
|
|
Objective evidence of credit risk impairment
|
|
Under K-IFRS No. 1109, cumulative change in lifetime expected credit loss since initial recognition is
recognized as a loss allowance for financial asset, if it was credit-impaired at initial recognition. As of December 31, 2017, under K-IFRS No.1039, the Group recognized
W
2,943 million of loss allowances for
W
7,941,829 million of debt instrument measured at amortized cost including loans and receivables.
Hedge accounting
K-IFRS
No. 1109 maintains mechanics of hedge accounting including fair value hedges,
cash flow hedges and hedges of a net investment in a foreign operation while replacing complex and regulation based requirements of hedge accounting in
K-IFRS
No. 1039 with principle based method for
assessing hedge effectiveness by focusing on the risk management strategy of the Group.
K-IFRS
No. 1109 enlarges the risk management objectives and strategy and mitigates hedge accounting requirements
including elimination of assessment to determine if it actually to have been highly effective throughout the financial reporting periods for which the hedge was designated and quantified guidance
(80-125
percent).
By complying with the hedging rules in
K-IFRS
1109, the Group can apply hedge accounting
for transactions that do not meet the hedging criteria under
K-IFRS
1039 thereby reducing volatility in the profit or loss.
When initially applying
K-IFRS
1109, the Group may choose as its accounting policy to continue to apply
hedge accounting requirements under
K-IFRS
1039 instead of the requirements in
K-IFRS
1109.
33
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(s)
|
New Standards and Amendments Not Yet Adopted, Continued
|
|
(ii)
|
K-IFRS
No.
1115,
Revenue from contracts with customers
|
K-IFRS
No. 1115,
Revenue from contracts with customers
, published on November 6, 2015
is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted.
K-IFRS
No. 1115 replaces existing revenue recognition guidance, including
K-IFRS
No. 1018 Revenue,
K-IFRS
No. 1011,
Construction Contracts
,
K-IFRS
No. 2031,
Revenue: Barter
Transactions Involving Advertising Services
,
K-IFRS
No. 2113,
Customer Loyalty Programmes
,
K-IFRS
No. 2115,
Agreements for the Construction of
Real Estate
and
K-IFRS
No. 2118,
Transfers of Assets from Customers
. Regarding transition to
K-IFRS
No.1115, the Group has decided to apply the
cumulative effect method, i.e. recognizing the cumulative effect of applying
K-IFRS
No. 1115 at the date of initial application, which is January 1, 2018, without restatement of the comparative
periods presented. In doing so, the Group also decided to apply the practical expedients as allowed by
K-IFRS
No. 1115 by applying the new standard only to those contracts that are not considered as
completed contracts at the date of initial application.
Revenue recognition criteria in
K-IFRS
No. 1018 are applied separately to each transaction including sale of goods, rendering of services, interest, royalties, dividends and construction contracts. However,
K-IFRS
No. 1115 establishes a
single new revenue recognition standard for contracts with customers and introduces a five-step model for determining whether, how much and when revenue is recognized.
The steps in five-step model are as follows:
a) Identify the contract with a customer.
b) Identify the performance obligations in the contract.
c) Determine the transaction price.
d) Allocate the transaction price to the performance obligations in the contract.
e) Recognize revenue when (or as) the entity satisfies a performance obligation.
During the year ended December 31, 2017, the Group assessed the financial impact of the adoption of
K-IFRS
No. 1115 on its consolidated financial statements. As a result, the potential general impact on its consolidated financial statements resulting from the application of the new standard is as
follows.
Variable Consideration
The consideration received from customers may be variable as the Group allows its customers to return their products according to the
contracts. The Group shall estimate an amount of variable consideration by using the expected value or the most likely amount, depending on which method the entity expects to better predict the amount of consideration to which it will be entitled
and include in the transaction price some or all of an amount of variable consideration estimated only to the extent that is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when return period
expires. The Group shall recognize refund liability measured at the amount of consideration received (or receivable) to which the Group does not expect to be entitled and a new asset for the right to recover returned goods. As a result of this
change, it is expected that the refund liability and a new asset for the right to recover returned goods will be increased by
W
9,789 million, respectively, as of January 1, 2018.
34
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
3.
|
Summary of Significant Accounting Policies, Continued
|
|
(s)
|
New Standards and Amendments Not Yet Adopted, Continued
|
|
(iii)
|
K-IFRS
No.
1116,
Leases
|
K-IFRS
No. 1116,
Leases
, published on May 22, 2017 is effective for annual periods
beginning on or after January 1, 2019, with early adoption permitted.
K-IFRS
No. 1116 replaces existing leases guidance including
K-IFRS
No. 1017,
Leases
,
K-IFRS
No.2014,
Determining whether an Arrangement contains a Lease
,
K-IFRS
No.2015,
Operating LeasesIncentives
and
K-IFRS
No.2027, E
valuating the Substance of Transactions Involving the Legal Form of a Lease
.
At
inception of a contract, the Group assesses whether the contract is, or contains, a lease and reassess whether a contract is, or contains, a lease at the date of initial application. However, as a practical expedient, the Group is not required to
reassess for contracts entered into, or changed, on or before January 1, 2019. The Group is currently assessing the potential impact on its consolidated financial statements resulting from the application of
K-IFRS
No.1116.
|
(iv)
|
K-IFRS
No.
2112,
Foreign Currency Transactions and Advance Consideration
|
According to the new interpretation,
K-IFRS
No. 2112,
Foreign Currency Transactions and Advance
Consideration
, the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognizes the
non-monetary
asset or
non-monetary
liability arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance, the entity
shall determine a date of the transaction for each payment or receipt of advance consideration.
K-IFRS
No. 2122 is effective for annual periods beginning on or after January 1, 2018, with early
adoption permitted. Management believes that the adoption of the amendment is expected to have no significant impact on the consolidated financial statements of the Group.
35
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
4.
|
Cash and Cash Equivalents and Deposits in Banks
|
Cash and cash equivalents and deposits in banks at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
W
|
2,602,560
|
|
|
|
1,558,696
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
Time deposits
|
|
W
|
685,238
|
|
|
|
1,091,364
|
|
Restricted cash (*)
|
|
|
72,840
|
|
|
|
72,386
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
758,078
|
|
|
|
1,163,750
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
Restricted cash (*)
|
|
W
|
11
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,360,649
|
|
|
|
2,722,459
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Restricted cash includes mutual growth fund to aid LG Groups second and third-tier suppliers, pledge to enforce investment plans related to received subsidies from Gumi city and Gyeongsangbuk- do and others.
|
5.
|
Receivables and Other Assets
|
|
(a)
|
Trade accounts and notes receivable at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Trade, net
|
|
W
|
3,275,902
|
|
|
|
3,916,171
|
|
Due from related parties
|
|
|
1,049,218
|
|
|
|
1,041,822
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,325,120
|
|
|
|
4,957,993
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Other accounts receivable at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current assets
|
|
|
|
|
|
|
|
|
Non-trade
receivable, net
|
|
W
|
150,554
|
|
|
|
134,161
|
|
Accrued income
|
|
|
14,273
|
|
|
|
9,431
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
164,827
|
|
|
|
143,592
|
|
|
|
|
|
|
|
|
|
|
Due from related parties included in other accounts receivable, as of December 31, 2017 and 2016 are
W
10,821 million and
W
5,231 million, respectively.
36
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
5.
|
Receivables and Other Assets, Continued
|
|
(c)
|
The aging of trade accounts and note receivable, other accounts receivable and long-term
non-trade
receivable at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable(*)
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable(*)
|
|
|
Long-term
non-trade
receivable
|
|
Not past due
|
|
W
|
4,323,465
|
|
|
|
164,755
|
|
|
|
8,738
|
|
|
|
(1,631
|
)
|
|
|
(905
|
)
|
|
|
|
|
Past due
1-15
days
|
|
|
2,652
|
|
|
|
488
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
|
|
Past due
16-30
days
|
|
|
631
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
Past due
31-60
days
|
|
|
|
|
|
|
208
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
Past due more than 60 days
|
|
|
4
|
|
|
|
622
|
|
|
|
|
|
|
|
|
|
|
|
(400
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,326,752
|
|
|
|
166,138
|
|
|
|
8,738
|
|
|
|
(1,632
|
)
|
|
|
(1,311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Other accounts receivable includes
non-trade
receivable and accrued income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
|
Book value
|
|
|
Impairment loss
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable(*)
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable(*)
|
|
|
Long-term
non-trade
receivable
|
|
Not past due
|
|
W
|
4,958,591
|
|
|
|
140,893
|
|
|
|
2,643
|
|
|
|
(1,488
|
)
|
|
|
(669
|
)
|
|
|
(23
|
)
|
Past due
1-15
days
|
|
|
386
|
|
|
|
2,298
|
|
|
|
|
|
|
|
|
|
|
|
(20
|
)
|
|
|
|
|
Past due
16-30
days
|
|
|
417
|
|
|
|
309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due
31-60
days
|
|
|
65
|
|
|
|
640
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
Past due more than 60 days
|
|
|
22
|
|
|
|
545
|
|
|
|
|
|
|
|
|
|
|
|
(398
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,959,481
|
|
|
|
144,685
|
|
|
|
2,643
|
|
|
|
(1,488
|
)
|
|
|
(1,093
|
)
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
5.
|
Receivables and Other Assets, Continued
|
The movement in the allowance for impairment in respect of trade accounts and notes
receivable, other accounts receivable and long-term
non-trade
receivable for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
|
Trade accounts
and notes
receivable
|
|
|
Other
accounts
receivable
|
|
|
Long-term
non-trade
receivable
|
|
Balance at the beginning of the period
|
|
W
|
1,488
|
|
|
|
1,093
|
|
|
|
23
|
|
|
|
1,507
|
|
|
|
566
|
|
|
|
52
|
|
(Reversal of) bad debt expense
|
|
|
144
|
|
|
|
218
|
|
|
|
(23
|
)
|
|
|
(19
|
)
|
|
|
527
|
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at the reporting date
|
|
W
|
1,632
|
|
|
|
1,311
|
|
|
|
|
|
|
|
1,488
|
|
|
|
1,093
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
5.
|
Receivables and Other Assets, Continued
|
|
(d)
|
Other assets at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current assets
|
|
|
|
|
|
|
|
|
Advance payments
|
|
W
|
7,973
|
|
|
|
9,297
|
|
Prepaid expenses
|
|
|
83,626
|
|
|
|
74,657
|
|
Value added tax refundable
|
|
|
148,351
|
|
|
|
259,808
|
|
Emission rights
|
|
|
1,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
241,928
|
|
|
|
343,762
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Long-term prepaid expenses
|
|
W
|
394,759
|
|
|
|
358,424
|
|
Long-term advanced payment
|
|
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
394,759
|
|
|
|
359,424
|
|
|
|
|
|
|
|
|
|
|
6.
|
Other Financial Assets
|
|
(a)
|
Other financial assets at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current assets
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
W
|
6
|
|
|
|
|
|
Deposits
|
|
|
10,480
|
|
|
|
20,320
|
|
Short-term loans
|
|
|
16,766
|
|
|
|
7,696
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
27,252
|
|
|
|
28,016
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Financial asset at fair value through profit or loss
|
|
W
|
1,552
|
|
|
|
1,382
|
|
Available-for-sale
financial assets
|
|
|
5,136
|
|
|
|
7,993
|
|
Deposits
|
|
|
19,898
|
|
|
|
27,635
|
|
Long-term loans
|
|
|
32,408
|
|
|
|
34,760
|
|
Long-term
non-trade
receivable
|
|
|
8,738
|
|
|
|
2,619
|
|
Derivatives (*)
|
|
|
842
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
68,574
|
|
|
|
74,633
|
|
|
|
|
|
|
|
|
|
|
Other financial assets of related parties as of December 31, 2017 and 2016 are
W
2,750 million and
W
3,488 million, respectively.
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
39
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
6.
|
Other Financial Assets, Continued
|
|
(b)
|
Available-for-sale
financial assets at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current assets
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
6
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
|
|
|
|
|
|
Government bonds
|
|
W
|
156
|
|
|
|
154
|
|
Equity securities
|
|
|
|
|
|
|
|
|
Intellectual Discovery, Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
Kyulux, Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
Henghao Technology Co., Ltd.
|
|
|
|
|
|
|
1,559
|
|
ARCH Venture Fund Vill, L.P.
|
|
|
2,283
|
|
|
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,980
|
|
|
|
7,839
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,142
|
|
|
|
7,993
|
|
|
|
|
|
|
|
|
|
|
Inventories at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Finished goods
|
|
W
|
965,643
|
|
|
|
930,818
|
|
Work-in-process
|
|
|
748,592
|
|
|
|
685,913
|
|
Raw materials
|
|
|
344,997
|
|
|
|
354,791
|
|
Supplies
|
|
|
290,852
|
|
|
|
316,263
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,350,084
|
|
|
|
2,287,785
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2017 and 2016, the amount of inventories recognized as cost of sales,
inventory write-downs and reversal and usage of inventory write-downs included in cost of sales are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Inventories recognized as cost of sales
|
|
W
|
22,424,661
|
|
|
|
22,754,270
|
|
Including: inventory write-downs
|
|
|
206,127
|
|
|
|
204,123
|
|
Including: reversal and usage of inventory write downs
|
|
|
(204,123
|
)
|
|
|
(363,755
|
)
|
There were no significant reversals of inventory write-downs recognized during 2017 and 2016.
40
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees
|
(a) Associates as of December 31, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
Location
|
|
Fiscal year end
|
|
Date of
incorporation
|
|
Business
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Percentage of
ownership
|
|
|
Carrying
amount
|
|
|
Percentage of
ownership
|
|
|
Carrying
amount
|
|
Paju Electric Glass Co., Ltd.
|
|
Paju,
South Korea
|
|
December 31
|
|
January 2005
|
|
Manufacture electric glass for FPDs
|
|
|
40
|
%
|
|
W
|
46,511
|
|
|
|
40
|
%
|
|
W
|
52,750
|
|
New Optics Ltd.(*1)
|
|
Yangju,
South Korea
|
|
December 31
|
|
August 2005
|
|
Manufacture back light parts for
TFT-LCDs
|
|
|
|
|
|
|
|
|
|
|
46
|
%
|
|
|
40,045
|
|
INVENIA Co., Ltd.
|
|
Seongnam,
South Korea
|
|
December 31
|
|
January 2001
|
|
Develop and manufacture equipment for FPDs
|
|
|
13
|
%
|
|
|
2,887
|
|
|
|
13
|
%
|
|
|
2,450
|
|
WooRee E&L Co., Ltd.
|
|
Ansan,
South Korea
|
|
December 31
|
|
June 2008
|
|
Manufacture LED back light unit packages
|
|
|
14
|
%
|
|
|
7,270
|
|
|
|
14
|
%
|
|
|
8,627
|
|
LB Gemini New Growth Fund No. 16 (*2)
|
|
Seoul,
South Korea
|
|
December 31
|
|
December 2009
|
|
Invest in small and middle sized companies and benefit from M&A opportunities
|
|
|
31
|
%
|
|
|
5,910
|
|
|
|
31
|
%
|
|
|
8,647
|
|
Can Yang Investments Limited (*1)(*3)
|
|
Hong Kong
|
|
December 31
|
|
January 2010
|
|
Develop, manufacture and sell LED parts
|
|
|
|
|
|
|
|
|
|
|
9
|
%
|
|
|
5,580
|
|
YAS Co., Ltd. (*4)
|
|
Paju,
South Korea
|
|
December 31
|
|
April 2002
|
|
Develop and manufacture deposition equipment for OLEDs
|
|
|
15
|
%
|
|
|
15,888
|
|
|
|
18
|
%
|
|
|
9,883
|
|
41
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
Location
|
|
Fiscal year end
|
|
|
Date of
incorporation
|
|
|
Business
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Percentage of
ownership
|
|
|
Carrying
amount
|
|
|
Percentage of
ownership
|
|
|
Carrying
amount
|
|
Narenanotech Corporation (*1)
|
|
Yongin,
South Korea
|
|
|
December 31
|
|
|
|
December 1995
|
|
|
Manufacture and sell FPD manufacturing equipment
|
|
|
|
|
|
W
|
|
|
|
|
23
|
%
|
|
W
|
23,717
|
|
AVATEC Co., Ltd.
|
|
Daegu,
South Korea
|
|
|
December 31
|
|
|
|
August 2000
|
|
|
Process and sell electric glass for FPDs
|
|
|
17
|
%
|
|
|
23,732
|
|
|
|
17
|
%
|
|
|
20,984
|
|
Arctic Sentinel, Inc.
|
|
Los Angeles, U.S.A.
|
|
|
March 31
|
|
|
|
June 2008
|
|
|
Develop and manufacture
tablet for kids
|
|
|
10
|
%
|
|
|
|
|
|
|
10
|
%
|
|
|
|
|
CYNORA GmbH (*5)
|
|
Bruchsal,
Germany
|
|
|
December 31
|
|
|
|
March 2003
|
|
|
Develop organic emitting materials for displays and lighting devices
|
|
|
14
|
%
|
|
|
20,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
122,507
|
|
|
|
|
|
|
W
|
172,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Although the Controlling Companys share interests in INVENIA Co., Ltd., WooRee E&L Co., Ltd., YAS
Co., Ltd., AVATEC Co., Ltd., Arctic Sentinel, Inc. and Cynora GmbH are below 20% as of December 31, 2017, the Controlling Company is able to exercise significant influence through its right to appoint a director to the board of directors of
each investee or the transactions between the Controlling Company and the investees are significant. Accordingly, the investments in these investees have been accounted for using the equity method.
42
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees, Continued
|
|
(*1)
|
During the year ended December 31, 2017, the Controlling Company disposed of the entire investments in New Optics Ltd., Can Yang Investments Limited and Narenanotech Corporation.
|
|
(*2)
|
The Controlling Company is a member of a limited partnership in the LB Gemini New Growth Fund No.16 (the Fund). During the year ended December 31, 2017, the Controlling Company received
W
2,076 million from the Fund as capital distribution and there were no changes in the Controlling Companys ownership percentage in the Fund. On the other hand, a resolution to dissolve the fund was
approved at the general meeting and the fund is in process of liquidation as of December 31, 2017.
|
|
(*3)
|
The Controlling Company recognized an impairment loss of
W
4,234 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in
Can Yang Investments Limited.
|
|
(*4)
|
In 2017, the Controlling Companys ownership percentage in YAS Co., Ltd. decreased from 18% to 15% as the Controlling Company did not participate in the capital increase of YAS Co., Ltd.
|
|
(*5)
|
In September 2017, the Controlling Company invested
W
20,309 million in cash and acquired 88,584 shares of preferred stock with voting rights in CYNORA GmbH.
|
As of December 31, 2017, the market value for the Controlling Companys investments in INVENIA Co., Ltd., WooRee E&L Co., Ltd.,
YAS Co., Ltd., and AVATEC Co., Ltd., all of which are listed in KOSDAQ, are
W
12,870 million,
W
7,038 million,
W
54,500 million and
W
20,670 million, respectively.
Dividends received from a joint venture and equity method investees
for the years ended December 31, 2017 and 2016 amounted to
W
8,639 million and
W
59,820 million, respectively.
43
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees, Continued
|
|
(b)
|
Summary of financial information as of and for the years ended December 31, 2017 and 2016 of the significant associate is as follows:
|
|
(i)
|
Paju Electric Glass Co., Ltd.
|
|
|
|
|
|
|
|
|
|
(
In millions of won
)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Total assets
|
|
W
|
193,584
|
|
|
|
225,086
|
|
Current assets
|
|
|
146,702
|
|
|
|
182,656
|
|
Non-current
assets
|
|
|
46,882
|
|
|
|
42,430
|
|
Total liabilities
|
|
|
77,174
|
|
|
|
91,364
|
|
Current liabilities
|
|
|
71,973
|
|
|
|
87,116
|
|
Non-current
liabilities
|
|
|
5,201
|
|
|
|
4,248
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Revenue
|
|
W
|
408,846
|
|
|
|
549,559
|
|
Profit for the year
|
|
|
12,327
|
|
|
|
21,082
|
|
Other comprehensive income (loss)
|
|
|
(9,366
|
)
|
|
|
16,477
|
|
Total comprehensive income
|
|
|
2,961
|
|
|
|
37,559
|
|
|
(c)
|
Reconciliation from financial information of the significant associate to its carrying value in the consolidated financial statements as of December 31, 2017 and 2016 is as follows:
|
|
(i)
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
Net
asset
|
|
|
Ownership
interest
|
|
|
Net asset
(applying
ownership
interest)
|
|
|
Goodwill
|
|
|
Intra-group
transaction
|
|
|
Book value
|
|
Paju Electric Glass Co., Ltd.
|
|
W
|
116,410
|
|
|
|
40
|
%
|
|
|
46,564
|
|
|
|
|
|
|
|
(53
|
)
|
|
|
46,511
|
|
|
(ii)
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
Net
asset
|
|
|
Ownership
interest
|
|
|
Net asset
(applying
ownership
interest)
|
|
|
Goodwill
|
|
|
Intra-group
transaction
|
|
|
Book value
|
|
Paju Electric Glass Co., Ltd.
|
|
W
|
133,722
|
|
|
|
40
|
%
|
|
|
53,489
|
|
|
|
|
|
|
|
(739
|
)
|
|
|
52,750
|
|
44
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees, Continued
|
|
(d)
|
Book value of other associates, in aggregate, as of December 31, 2017 and 2016 is as follows:
|
|
(i)
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
|
Net profit (loss) of associates
(applying ownership interest)
|
|
|
|
Profit (loss)
for the year
|
|
|
Other
comprehensive
income (loss)
|
|
|
Total
comprehensive
income (loss)
|
|
Other associates
|
|
W
|
75,996
|
|
|
|
3,943
|
|
|
|
5,093
|
|
|
|
9,036
|
|
|
(ii)
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
|
|
|
Net profit (loss) of associates
(applying ownership interest)
|
|
|
|
Profit (loss)
for the year
|
|
|
Other
comprehensive
income (loss)
|
|
|
Total
comprehensive
income (loss)
|
|
Other associates
|
|
W
|
119,933
|
|
|
|
(2,983
|
)
|
|
|
(14,197
|
)
|
|
|
(17,180
|
)
|
45
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
8.
|
Investments in Equity Accounted Investees, Continued
|
|
(e)
|
Changes in investments in associates and a joint venture accounted for using the equity method for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
Company
|
|
January 1
|
|
|
Acquisition/
Disposal
|
|
|
Dividends
received
|
|
|
Equity income
(loss) on
investments
|
|
|
Other
comprehensive
income (loss)
|
|
|
Other
gain (loss)
|
|
|
December 31
|
|
Associates
|
|
Paju Electric Glass Co., Ltd.
|
|
W
|
52,750
|
|
|
|
|
|
|
|
(8,109
|
)
|
|
|
5,617
|
|
|
|
(3,747
|
)
|
|
|
|
|
|
|
46,511
|
|
|
|
Others
|
|
|
119,933
|
|
|
|
(48,209
|
)
|
|
|
(530
|
)
|
|
|
3,943
|
|
|
|
5,093
|
|
|
|
(4,234
|
)
|
|
|
75,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
172,683
|
|
|
|
(48,209
|
)
|
|
|
(8,639
|
)
|
|
|
9,560
|
|
|
|
1,346
|
|
|
|
(4,234
|
)
|
|
|
122,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
Company
|
|
January 1
|
|
|
Acquisition/
Disposal
|
|
|
Dividends
received
|
|
|
Equity income
(loss) on
investments
|
|
|
Other
comprehensive
income (loss)
|
|
|
Other
gain (loss)
|
|
|
December 31
|
|
Joint venture
|
|
Suzhou Raken Technology Co., Ltd.
|
|
W
|
145,731
|
|
|
|
(121,204
|
)
|
|
|
(29,902
|
)
|
|
|
2,985
|
|
|
|
2,390
|
|
|
|
|
|
|
|
|
|
Associates
|
|
Paju Electric Glass Co., Ltd.
|
|
|
58,852
|
|
|
|
|
|
|
|
(21,030
|
)
|
|
|
8,337
|
|
|
|
6,591
|
|
|
|
|
|
|
|
52,750
|
|
|
Others
|
|
|
180,172
|
|
|
|
(28,034
|
)
|
|
|
(8,888
|
)
|
|
|
(2,983
|
)
|
|
|
(14,197
|
)
|
|
|
(6,137
|
)
|
|
|
119,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
384,755
|
|
|
|
(149,238
|
)
|
|
|
(59,820
|
)
|
|
|
8,339
|
|
|
|
(5,216
|
)
|
|
|
(6,137
|
)
|
|
|
172,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
9.
|
Property, Plant and Equipment
|
|
(a)
|
Changes in property, plant and equipment for the year ended December 31, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
Buildings
and
structures
|
|
|
Machinery
and
equipment
|
|
|
Furniture
and
fixtures
|
|
|
Construction-
in-progress
(*1)
|
|
|
Others
|
|
|
Total
|
|
Acquisition cost as of January 1, 2017
|
|
W
|
461,484
|
|
|
|
6,284,778
|
|
|
|
37,472,177
|
|
|
|
775,682
|
|
|
|
2,981,964
|
|
|
|
202,306
|
|
|
|
48,178,391
|
|
Accumulated depreciation as of January 1, 2017
|
|
|
|
|
|
|
(2,397,967
|
)
|
|
|
(32,947,359
|
)
|
|
|
(651,424
|
)
|
|
|
|
|
|
|
(146,251
|
)
|
|
|
(36,143,001
|
)
|
Accumulated impairment loss as of January 1, 2017
|
|
|
|
|
|
|
(1,651
|
)
|
|
|
(2,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,941
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of January 1, 2017
|
|
W
|
461,484
|
|
|
|
3,885,160
|
|
|
|
4,522,528
|
|
|
|
124,258
|
|
|
|
2,981,964
|
|
|
|
56,055
|
|
|
|
12,031,449
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,272,476
|
|
|
|
|
|
|
|
7,272,476
|
|
Depreciation
|
|
|
|
|
|
|
(295,045
|
)
|
|
|
(2,416,202
|
)
|
|
|
(66,963
|
)
|
|
|
|
|
|
|
(13,673
|
)
|
|
|
(2,791,883
|
)
|
Disposals
|
|
|
(1,042
|
)
|
|
|
(7,206
|
)
|
|
|
(75,275
|
)
|
|
|
(52
|
)
|
|
|
|
|
|
|
(3,133
|
)
|
|
|
(86,708
|
)
|
Others (*2)
|
|
|
69
|
|
|
|
339,640
|
|
|
|
3,825,155
|
|
|
|
87,186
|
|
|
|
(4,270,210
|
)
|
|
|
18,160
|
|
|
|
|
|
Effect of movements in exchange rates
|
|
|
|
|
|
|
(63,222
|
)
|
|
|
(140,306
|
)
|
|
|
(3,087
|
)
|
|
|
(14,213
|
)
|
|
|
(687
|
)
|
|
|
(221,515
|
)
|
Government grants received
|
|
|
|
|
|
|
(548
|
)
|
|
|
(3,150
|
)
|
|
|
|
|
|
|
1,839
|
|
|
|
|
|
|
|
(1,859
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of December 31, 2017
|
|
W
|
460,511
|
|
|
|
3,858,779
|
|
|
|
5,712,750
|
|
|
|
141,342
|
|
|
|
5,971,856
|
|
|
|
56,722
|
|
|
|
16,201,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost as of December 31, 2017
|
|
W
|
460,511
|
|
|
|
6,539,506
|
|
|
|
38,901,158
|
|
|
|
772,824
|
|
|
|
5,971,856
|
|
|
|
205,475
|
|
|
|
52,851,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation as of December 31, 2017
|
|
W
|
|
|
|
|
(2,678,970
|
)
|
|
|
(33,186,118
|
)
|
|
|
(631,482
|
)
|
|
|
|
|
|
|
(148,753
|
)
|
|
|
(36,645,323
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated impairment loss as of December 31, 2017
|
|
W
|
|
|
|
|
(1,757
|
)
|
|
|
(2,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,047
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
As of December 31, 2017, construction-in-progress mainly relates to construction of manufacturing facilities.
|
(*2)
|
Others are mainly amounts transferred from
construction-in-progress.
|
47
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
9.
|
Property, Plant and Equipment, Continued
|
|
(b)
|
Changes in property, plant and equipment for the year ended December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
Buildings
and
structures
|
|
|
Machinery
and
equipment
|
|
|
Furniture
and
fixtures
|
|
|
Construction-
in-progress
(*1)
|
|
|
Others
|
|
|
Total
|
|
Acquisition cost as of January 1, 2016
|
|
W
|
462,787
|
|
|
|
5,998,384
|
|
|
|
36,450,747
|
|
|
|
794,894
|
|
|
|
1,268,946
|
|
|
|
216,044
|
|
|
|
45,191,802
|
|
Accumulated depreciation as of January 1, 2016
|
|
|
|
|
|
|
(2,117,951
|
)
|
|
|
(31,694,483
|
)
|
|
|
(663,331
|
)
|
|
|
|
|
|
|
(164,257
|
)
|
|
|
(34,640,022
|
)
|
Accumulated impairment loss as of January 1, 2016
|
|
|
|
|
|
|
|
|
|
|
(5,760
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,760
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of January 1, 2016
|
|
W
|
462,787
|
|
|
|
3,880,433
|
|
|
|
4,750,504
|
|
|
|
131,563
|
|
|
|
1,268,946
|
|
|
|
51,787
|
|
|
|
10,546,020
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,562,263
|
|
|
|
|
|
|
|
4,562,263
|
|
Business combinations (*3)
|
|
|
|
|
|
|
16,023
|
|
|
|
655
|
|
|
|
449
|
|
|
|
|
|
|
|
663
|
|
|
|
17,790
|
|
Depreciation
|
|
|
|
|
|
|
(288,891
|
)
|
|
|
(2,283,482
|
)
|
|
|
(57,130
|
)
|
|
|
|
|
|
|
(13,942
|
)
|
|
|
(2,643,445
|
)
|
Impairment loss
|
|
|
|
|
|
|
(1,610
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,610
|
)
|
Disposals
|
|
|
(1,303
|
)
|
|
|
(3,204
|
)
|
|
|
(284,855
|
)
|
|
|
(1,746
|
)
|
|
|
|
|
|
|
(862
|
)
|
|
|
(291,970
|
)
|
Others (*2)
|
|
|
|
|
|
|
313,404
|
|
|
|
2,461,635
|
|
|
|
52,471
|
|
|
|
(2,846,180
|
)
|
|
|
18,670
|
|
|
|
|
|
Effect of movements in exchange rates
|
|
|
|
|
|
|
(30,357
|
)
|
|
|
(118,060
|
)
|
|
|
(1,349
|
)
|
|
|
(1,179
|
)
|
|
|
(261
|
)
|
|
|
(151,206
|
)
|
Government grants received
|
|
|
|
|
|
|
(638
|
)
|
|
|
(3,869
|
)
|
|
|
|
|
|
|
(1,886
|
)
|
|
|
|
|
|
|
(6,393
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of December 31, 2016
|
|
W
|
461,484
|
|
|
|
3,885,160
|
|
|
|
4,522,528
|
|
|
|
124,258
|
|
|
|
2,981,964
|
|
|
|
56,055
|
|
|
|
12,031,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost as of December 31, 2016
|
|
W
|
461,484
|
|
|
|
6,284,778
|
|
|
|
37,472,177
|
|
|
|
775,682
|
|
|
|
2,981,964
|
|
|
|
202,306
|
|
|
|
48,178,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation as of December 31, 2016
|
|
W
|
|
|
|
|
(2,397,967
|
)
|
|
|
(32,947,359
|
)
|
|
|
(651,424
|
)
|
|
|
|
|
|
|
(146,251
|
)
|
|
|
(36,143,001
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated impairment loss as of December 31, 2016
|
|
W
|
|
|
|
|
(1,651
|
)
|
|
|
(2,290
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,941
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
As of December 31, 2016, construction-in-progress mainly relates to construction of manufacturing facilities.
|
(*2)
|
Others are mainly amounts transferred from
construction-in-progress.
|
(*3)
|
Business combinations include property, plant and equipment related to Suzhou Lehui Display Co., Ltd. as its control was transferred to the Controlling Company by exchanging equity interests.
|
|
(c)
|
Capitalized borrowing costs and capitalization rate for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Capitalized borrowing costs
|
|
W
|
47,686
|
|
|
|
16,909
|
|
Capitalization rate
|
|
|
1.92
|
%
|
|
|
2.91
|
%
|
48
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
|
(a)
|
Changes in intangible assets for the year ended December 31, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Intellectual
property
rights
|
|
|
Software
|
|
|
Member-
ships
|
|
|
Development
costs
|
|
|
Construction
-in-progress
(software)
|
|
|
Customer
relationships
|
|
|
Technology
|
|
|
Good-
will(*2)
|
|
|
Others
(*3)
|
|
|
Total
|
|
Acquisition cost as of January 1, 2017
|
|
W
|
904,664
|
|
|
|
806,835
|
|
|
|
51,564
|
|
|
|
1,433,791
|
|
|
|
18,738
|
|
|
|
59,176
|
|
|
|
11,074
|
|
|
|
110,072
|
|
|
|
13,077
|
|
|
|
3,408,991
|
|
Accumulated amortization as of January 1, 2017
|
|
|
(618,398
|
)
|
|
|
(661,063
|
)
|
|
|
|
|
|
|
(1,177,451
|
)
|
|
|
|
|
|
|
(26,678
|
)
|
|
|
(7,382
|
)
|
|
|
|
|
|
|
(13,071
|
)
|
|
|
(2,504,043
|
)
|
Accumulated impairment loss as of January 1, 2017
|
|
|
|
|
|
|
|
|
|
|
(10,011
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,011
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of January 1, 2017
|
|
W
|
286,266
|
|
|
|
145,772
|
|
|
|
41,553
|
|
|
|
256,340
|
|
|
|
18,738
|
|
|
|
32,498
|
|
|
|
3,692
|
|
|
|
110,072
|
|
|
|
6
|
|
|
|
894,937
|
|
Additions - internally developed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
336,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
336,207
|
|
Additions - external purchases
|
|
|
22,746
|
|
|
|
|
|
|
|
4,819
|
|
|
|
|
|
|
|
108,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136,326
|
|
Amortization (*1)
|
|
|
(42,195
|
)
|
|
|
(78,939
|
)
|
|
|
|
|
|
|
(295,787
|
)
|
|
|
|
|
|
|
(4,659
|
)
|
|
|
(1,108
|
)
|
|
|
|
|
|
|
(5
|
)
|
|
|
(422,693
|
)
|
Disposals
|
|
|
(4
|
)
|
|
|
|
|
|
|
(1,392
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,396
|
)
|
Impairment loss
|
|
|
|
|
|
|
|
|
|
|
(1,809
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,809
|
)
|
Reversal of Impairment loss
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
Transfer from
construction-in-progress
|
|
|
|
|
|
|
98,989
|
|
|
|
|
|
|
|
|
|
|
|
(98,989
|
)
|
|
|
|
|
|
|
|
|
|
|
(3,218
|
)
|
|
|
|
|
|
|
(3,218
|
)
|
Effect of movements in exchange rates
|
|
|
(19,847
|
)
|
|
|
(4,332
|
)
|
|
|
(6
|
)
|
|
|
|
|
|
|
2,423
|
|
|
|
|
|
|
|
|
|
|
|
(3,806
|
)
|
|
|
|
|
|
|
(25,568
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of December 31, 2017
|
|
W
|
246,966
|
|
|
|
161,490
|
|
|
|
43,200
|
|
|
|
296,760
|
|
|
|
30,933
|
|
|
|
27,839
|
|
|
|
2,584
|
|
|
|
103,048
|
|
|
|
1
|
|
|
|
912,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost as of December 31, 2017
|
|
W
|
895,721
|
|
|
|
898,278
|
|
|
|
54,985
|
|
|
|
1,769,998
|
|
|
|
30,933
|
|
|
|
59,176
|
|
|
|
11,074
|
|
|
|
103,048
|
|
|
|
13,077
|
|
|
|
3,836,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization as of
December 31, 2017
|
|
W
|
(648,755
|
)
|
|
|
(736,788
|
)
|
|
|
|
|
|
|
(1,473,238
|
)
|
|
|
|
|
|
|
(31,337
|
)
|
|
|
(8,490
|
)
|
|
|
|
|
|
|
(13,076
|
)
|
|
|
(2,911,684
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated impairment loss as of December 31, 2017
|
|
W
|
|
|
|
|
|
|
|
|
(11,785
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,785
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
10.
|
Intangible Assets, Continued
|
(*1)
|
The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses.
|
(*2)
|
As of December 31, 2017, the book value of goodwill decreased by
W
3,218 million as the Group completed the fair value measurement of land use right, acquired from business
combination during the year ended December 31, 2016.
|
(*3)
|
Others mainly consist of rights to use electricity and gas supply facilities.
|
50
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
10.
|
Intangible Assets, Continued
|
|
(b)
|
Changes in intangible assets for the year ended December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intellectual
property
rights
|
|
|
Software
|
|
|
Member-
ships
|
|
|
Development
costs
|
|
|
Construction-
in-progress
(software)
|
|
|
Customer
relationships
|
|
|
Technology
|
|
|
Good-
will
|
|
|
Others
(*3)
|
|
|
Total
|
|
Acquisition cost as of January 1, 2016
|
|
W
|
817,359
|
|
|
|
698,844
|
|
|
|
51,092
|
|
|
|
1,111,503
|
|
|
|
2,986
|
|
|
|
59,176
|
|
|
|
11,074
|
|
|
|
104,455
|
|
|
|
13,089
|
|
|
|
2,869,578
|
|
Accumulated amortization as of January 1, 2016
|
|
|
(516,421
|
)
|
|
|
(541,212
|
)
|
|
|
|
|
|
|
(924,273
|
)
|
|
|
|
|
|
|
(19,731
|
)
|
|
|
(6,275
|
)
|
|
|
|
|
|
|
(13,063
|
)
|
|
|
(2,020,975
|
)
|
Accumulated impairment loss as of January 1, 2016
|
|
|
|
|
|
|
|
|
|
|
(9,873
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,873
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of January 1, 2016
|
|
W
|
300,938
|
|
|
|
157,632
|
|
|
|
41,219
|
|
|
|
187,230
|
|
|
|
2,986
|
|
|
|
39,445
|
|
|
|
4,799
|
|
|
|
104,455
|
|
|
|
26
|
|
|
|
838,730
|
|
Additions - internally developed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
322,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
322,288
|
|
Additions - external purchases
|
|
|
21,160
|
|
|
|
|
|
|
|
800
|
|
|
|
|
|
|
|
80,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,441
|
|
Business combinations (*1)
|
|
|
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,623
|
|
|
|
|
|
|
|
4,988
|
|
Amortization (*2)
|
|
|
(41,088
|
)
|
|
|
(75,786
|
)
|
|
|
|
|
|
|
(253,178
|
)
|
|
|
|
|
|
|
(6,947
|
)
|
|
|
(1,107
|
)
|
|
|
|
|
|
|
(20
|
)
|
|
|
(378,126
|
)
|
Disposals
|
|
|
|
|
|
|
|
|
|
|
(336
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(336
|
)
|
Impairment loss
|
|
|
|
|
|
|
|
|
|
|
(138
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(138
|
)
|
Transfer from
construction-in-progress
|
|
|
|
|
|
|
65,327
|
|
|
|
|
|
|
|
|
|
|
|
(65,327
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of movements in exchange rates
|
|
|
5,256
|
|
|
|
(1,766
|
)
|
|
|
8
|
|
|
|
|
|
|
|
598
|
|
|
|
|
|
|
|
|
|
|
|
994
|
|
|
|
|
|
|
|
5,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value as of December 31, 2016
|
|
W
|
286,266
|
|
|
|
145,772
|
|
|
|
41,553
|
|
|
|
256,340
|
|
|
|
18,738
|
|
|
|
32,498
|
|
|
|
3,692
|
|
|
|
110,072
|
|
|
|
6
|
|
|
|
894,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition cost as of December 31, 2016
|
|
W
|
904,664
|
|
|
|
806,835
|
|
|
|
51,564
|
|
|
|
1,433,791
|
|
|
|
18,738
|
|
|
|
59,176
|
|
|
|
11,074
|
|
|
|
110,072
|
|
|
|
13,077
|
|
|
|
3,408,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization as of December 31, 2016
|
|
W
|
(618,398
|
)
|
|
|
(661,063
|
)
|
|
|
|
|
|
|
(1,177,451
|
)
|
|
|
|
|
|
|
(26,678
|
)
|
|
|
(7,382
|
)
|
|
|
|
|
|
|
(13,071
|
)
|
|
|
(2,504,043
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated impairment loss as of December 31, 2016
|
|
W
|
|
|
|
|
|
|
|
|
(10,011
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,011
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
10.
|
Intangible Assets, Continued
|
(*1)
|
Business combinations include intangible assets related to Suzhou Lehui Display Co., Ltd. as its control was transferred to the Controlling Company by exchanging equity interests.
|
(*2)
|
The Group has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses and research and development expenses.
|
(*3)
|
Others mainly consist of rights to use electricity and gas supply facilities.
|
52
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
10.
|
Intangible Assets, Continued
|
|
(c)
|
Development of new projects are divided into research activities and development activities. Expenditures on research activities are recognized in profit or loss and development expenditures are capitalized,
respectively.
|
|
(d)
|
Development costs as of December 31, 2017 and 2016 are as follows:
|
|
(i)
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and in years)
|
|
|
|
|
|
|
|
|
Classification
|
|
Product
|
|
|
Book Value
|
|
|
Remaining
Useful life
|
Development completed
|
|
|
Mobile
|
|
|
W
|
79,372
|
|
|
0.6
|
|
|
|
TV
|
|
|
|
36,038
|
|
|
0.6
|
|
|
|
Notebook
|
|
|
|
14,311
|
|
|
0.5
|
|
|
|
Others
|
|
|
|
12,444
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total
|
|
|
W
|
142,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development in process
|
|
|
Mobile
|
|
|
W
|
117,222
|
|
|
|
|
|
|
TV
|
|
|
|
30,670
|
|
|
|
|
|
|
Notebook
|
|
|
|
2,356
|
|
|
|
|
|
|
Others
|
|
|
|
4,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total
|
|
|
W
|
154,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
W
|
296,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii)
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and in years)
|
|
|
|
|
|
|
|
|
|
Classification
|
|
Product
|
|
|
Book Value
|
|
|
Remaining
Useful life
|
|
Development completed
|
|
|
Mobile
|
|
|
W
|
54,405
|
|
|
|
0.5
|
|
|
|
|
TV
|
|
|
|
50,223
|
|
|
|
0.6
|
|
|
|
|
Notebook
|
|
|
|
16,207
|
|
|
|
0.6
|
|
|
|
|
Others
|
|
|
|
20,032
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total
|
|
|
W
|
140,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development in process
|
|
|
Mobile
|
|
|
W
|
45,496
|
|
|
|
|
|
|
|
|
TV
|
|
|
|
22,392
|
|
|
|
|
|
|
|
|
Notebook
|
|
|
|
21,950
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
25,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total
|
|
|
W
|
115,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
W
|
256,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
11.
|
Financial Liabilities
|
|
(a)
|
Financial liabilities at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
W
|
|
|
|
|
113,209
|
|
Current portion of long-term debt
|
|
|
1,452,926
|
|
|
|
554,700
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,452,926
|
|
|
|
667,909
|
|
|
|
|
|
|
|
|
|
|
Non-current
|
|
|
|
|
|
|
|
|
Won denominated borrowings
|
|
W
|
1,251,258
|
|
|
|
821,922
|
|
Foreign currency denominated borrowings
|
|
|
1,392,931
|
|
|
|
1,777,877
|
|
Bonds
|
|
|
1,506,003
|
|
|
|
1,511,062
|
|
Derivatives(*)
|
|
|
|
|
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,150,192
|
|
|
|
4,111,333
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents interest rate swap contracts related to borrowings with variable interest rate.
|
|
(b)
|
Short-term borrowings as of December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, USD)
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
December 31, 2017 (%)
|
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
Standard Chartered Bank Korea Limited
|
|
|
|
|
|
W
|
|
|
|
|
113,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency equivalent
|
|
|
|
|
|
|
|
|
|
|
USD 94
|
|
|
(c)
|
Won denominated long-term borrowings at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest rate
as of
December 31,
2017 (%)
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
Woori Bank
|
|
3-year
Korean Treasury
Bond rate - 1.25, 2.75
|
|
W
|
1,922
|
|
|
|
2,991
|
|
Shinhan Bank
|
|
CD rate (91days) + 0.30
|
|
|
200,000
|
|
|
|
200,000
|
|
Korea Development Bank and others
|
|
CD rate (91days) +
0.64~0.74, 2.28~3.07
|
|
|
1,250,000
|
|
|
|
620,000
|
|
Less current portion of long-term borrowings
|
|
|
|
|
(200,664
|
)
|
|
|
(1,069
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,251,258
|
|
|
|
821,922
|
|
|
|
|
|
|
|
|
|
|
|
|
54
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
11.
|
Financial Liabilities, Continued
|
|
(d)
|
Foreign currency denominated long-term borrowings at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(
In millions of won and USD, CNY)
|
|
Lender
|
|
Annual interest rate
as of
December 31,
2017 (%)(*)
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
The Export-Import Bank of Korea
|
|
3ML+0.55~1.04
|
|
W
|
755,337
|
|
|
|
1,027,225
|
|
Standard Chartered Bank Korea Limited
|
|
|
|
|
|
|
|
|
8,469
|
|
China Construction Bank and others
|
|
USD: 3ML+0.80~2.00
CNY: 4.28
|
|
|
1,385,097
|
|
|
|
926,058
|
|
Foreign currency equivalent
|
|
|
|
|
USD 1,500
|
|
|
|
USD 1,157
|
|
|
|
|
|
|
CNY 3,263
|
|
|
|
CNY 3,264
|
|
Less current portion of long-term borrowings
|
|
|
|
W
|
(747,503
|
)
|
|
|
(183,875
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,392,931
|
|
|
|
1,777,877
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
ML represents Month LIBOR (London Inter-Bank Offered Rates).
|
|
(e)
|
Details of bonds issued and outstanding at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
Annual interest rate
as of
December 31, 2017 (%)
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
Won denominated bonds (*)
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicly issued bonds
|
|
March 2018 ~
October 2022
|
|
1.73~3.73
|
|
W
|
2,015,000
|
|
|
|
1,885,000
|
|
Less discount on bonds
|
|
|
|
|
|
|
(4,238
|
)
|
|
|
(4,182
|
)
|
Less current portion
|
|
|
|
|
|
|
(504,759
|
)
|
|
|
(369,756
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,506,003
|
|
|
|
1,511,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly in arrears.
|
55
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
The Controlling Company and certain subsidiaries defined
benefit plans provide a
lump-sum
payment to an employee based on final salary rates and length of service at the time the employee leaves the Controlling Company or certain subsidiaries.
The defined benefit plans expose the Group to actuarial risks, such as the risk associated with expected periods of service, interest rate
risk, market (investment) risk, and others.
|
(a)
|
Net defined benefit liabilities recognized at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Present value of partially funded defined benefit obligations
|
|
W
|
1,562,424
|
|
|
|
1,401,396
|
|
Fair value of plan assets
|
|
|
(1,466,977
|
)
|
|
|
(1,258,409
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
95,447
|
|
|
|
142,987
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Changes in the present value of the defined benefit obligations for the years ended December 31, 2017 and 2016 are as follows :
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Opening defined benefit obligations
|
|
W
|
1,401,396
|
|
|
|
1,381,648
|
|
Current service cost
|
|
|
195,850
|
|
|
|
210,682
|
|
Interest cost
|
|
|
40,844
|
|
|
|
39,420
|
|
Remeasurements (before tax)
|
|
|
(114
|
)
|
|
|
(161,082
|
)
|
Benefit payments
|
|
|
(76,011
|
)
|
|
|
(65,099
|
)
|
Transfers from (to) related parties
|
|
|
534
|
|
|
|
(4,205
|
)
|
Others
|
|
|
(75
|
)
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
Closing defined benefit obligations
|
|
W
|
1,562,424
|
|
|
|
1,401,396
|
|
|
|
|
|
|
|
|
|
|
Weighted average remaining maturity of defined benefit obligations as of December 31, 2017 and 2016 are
14.0 years and 14.3 years, respectively.
|
(c)
|
Changes in fair value of plan assets for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Opening fair value of plan assets
|
|
W
|
1,258,409
|
|
|
|
1,027,850
|
|
Expected return on plan assets
|
|
|
38,453
|
|
|
|
29,140
|
|
Remeasurements (before tax)
|
|
|
(16,374
|
)
|
|
|
(5,736
|
)
|
Contributions by employer directly to plan assets
|
|
|
250,998
|
|
|
|
265,000
|
|
Benefit payments
|
|
|
(64,509
|
)
|
|
|
(57,845
|
)
|
|
|
|
|
|
|
|
|
|
Closing fair value of plan assets
|
|
W
|
1,466,977
|
|
|
|
1,258,409
|
|
|
|
|
|
|
|
|
|
|
56
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
12.
|
Employee Benefits, Continued
|
|
(d)
|
Plan assets at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Guaranteed deposits in banks
|
|
W
|
1,466,977
|
|
|
|
1,258,409
|
|
As of December 31, 2017, the Controlling Company maintains the plan assets with Mirae Asset Securities
Co., Ltd., Shinhan Bank and others.
The Groups estimated additional contribution to the plan assets for the year ending
December 31, 2018 is
W
129,138 million.
|
(e)
|
Expenses recognized in profit or loss for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Current service cost
|
|
W
|
195,850
|
|
|
|
210,682
|
|
Net interest cost
|
|
|
2,391
|
|
|
|
10,280
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
198,241
|
|
|
|
220,962
|
|
|
|
|
|
|
|
|
|
|
Expenses are recognized in the following line items in the consolidated statements of comprehensive income:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Cost of sales
|
|
W
|
158,418
|
|
|
|
177,652
|
|
Selling expenses
|
|
|
11,114
|
|
|
|
12,513
|
|
Administrative expenses
|
|
|
16,287
|
|
|
|
16,486
|
|
Research and development expenses
|
|
|
12,422
|
|
|
|
14,311
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
198,241
|
|
|
|
220,962
|
|
|
|
|
|
|
|
|
|
|
|
(f)
|
Remeasurements of net defined benefit liabilities (assets) included in other comprehensive income (loss) for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Balance at January 1
|
|
W
|
(163,950
|
)
|
|
|
(281,902
|
)
|
Remeasurements
|
|
|
|
|
|
|
|
|
Actuarial profit or loss arising from:
|
|
|
|
|
|
|
|
|
Experience adjustment
|
|
|
(48,890
|
)
|
|
|
70,258
|
|
Demographic assumptions
|
|
|
(7,702
|
)
|
|
|
(4,605
|
)
|
Financial assumptions
|
|
|
56,706
|
|
|
|
95,429
|
|
Return on plan assets
|
|
|
(16,374
|
)
|
|
|
(5,736
|
)
|
Share of associates regarding remeasurements
|
|
|
441
|
|
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(15,819
|
)
|
|
|
155,546
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
W
|
9,259
|
|
|
|
(37,594
|
)
|
|
|
|
|
|
|
|
|
|
Balance at December 31
|
|
W
|
(170,510
|
)
|
|
|
(163,950
|
)
|
|
|
|
|
|
|
|
|
|
57
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
12.
|
Employee Benefits, Continued
|
|
(g)
|
Principal actuarial assumptions at the reporting date (expressed as weighted averages) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Expected rate of salary increase
|
|
|
4.7
|
%
|
|
|
4.7
|
%
|
Discount rate for defined benefit obligations
|
|
|
3.2
|
%
|
|
|
3.0
|
%
|
Assumptions regarding future mortality are based on published statistics and mortality tables. The current
mortality underlying the values of the liabilities in the defined benefit plans are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Teens
|
|
Males
Females
|
|
|
0.01
0.00
|
%
%
|
|
|
0.01
0.00
|
%
%
|
Twenties
|
|
Males
Females
|
|
|
0.01
0.00
|
%
%
|
|
|
0.01
0.00
|
%
%
|
Thirties
|
|
Males
Females
|
|
|
0.01
0.01
|
%
%
|
|
|
0.01
0.01
|
%
%
|
Forties
|
|
Males
Females
|
|
|
0.03
0.02
|
%
%
|
|
|
0.03
0.02
|
%
%
|
Fifties
|
|
Males
Females
|
|
|
0.05
0.02
|
%
%
|
|
|
0.05
0.02
|
%
%
|
|
(h)
|
Reasonably possible changes to respective relevant actuarial assumptions would have affected the defined benefit obligations by the following amounts as of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
In millions of won)
|
|
Defined benefit obligation
|
|
|
|
1% increase
|
|
|
1% decrease
|
|
Discount rate for defined benefit obligations
|
|
W
|
(190,224
|
)
|
|
|
229,954
|
|
Expected rate of salary increase
|
|
|
224,578
|
|
|
|
(189,818
|
)
|
58
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
13.
|
Provisions and Other Liabilities
|
|
(a)
|
Changes in provisions for the year ended December 31, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigations
and claims
|
|
|
Warranties
(*)
|
|
|
Others
|
|
|
Total
|
|
Balance at January 1, 2017
|
|
W
|
|
|
|
|
62,462
|
|
|
|
1,665
|
|
|
|
64,127
|
|
Additions
|
|
|
43
|
|
|
|
251,131
|
|
|
|
170
|
|
|
|
251,344
|
|
Usage and reclassification
|
|
|
|
|
|
|
(211,143
|
)
|
|
|
|
|
|
|
(211,143
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017
|
|
W
|
43
|
|
|
|
102,450
|
|
|
|
1,835
|
|
|
|
104,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
W
|
43
|
|
|
|
74,138
|
|
|
|
1,835
|
|
|
|
76,016
|
|
Non-current
|
|
W
|
|
|
|
|
28,312
|
|
|
|
|
|
|
|
28,312
|
|
(*)
|
The provision for warranties covers defective products and is normally applicable for 18 months from the date of purchase. The warranty liability is calculated by using historical and anticipated rates of warranty
claims, and costs per claim to satisfy the Groups warranty obligation.
|
|
(b)
|
Other liabilities at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Withholdings
|
|
W
|
60,766
|
|
|
|
40,190
|
|
Unearned revenues
|
|
|
12,225
|
|
|
|
8,776
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
72,991
|
|
|
|
48,966
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Long-term accrued expenses
|
|
W
|
70,561
|
|
|
|
65,616
|
|
Long-term other accounts payable
|
|
|
2
|
|
|
|
3,530
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
70,563
|
|
|
|
69,146
|
|
|
|
|
|
|
|
|
|
|
59
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
14.
|
Contingent Liabilities and Commitments
|
Delaware Display Group LLC and Innovative Display Technologies LLC
(DDG and IDT)
In December 2013, Delaware Display Group LLC and Innovative Display Technologies LLC filed a
patent infringement case (First Case) against the Controlling Company and LG Display America, Inc. in the United States District Court for the District of Delaware and DDG and IDT filed a new patent infringement
case against the Controlling Company and LG Display America, Inc. over the three patents that were dismissed without prejudice from the First Case in December 2015. Additionally, in August 2016, Innovative Display Technologies LLC filed a new patent
infringement case against the Controlling Company and LG Display America, Inc. in the United States District Court for the Eastern District of Texas with respect to two new patents. In March 2017, the parties reached settlements in principle through
mediation. In April 2017, the parties filed a stipulation of dismissal and amicably settled all claims asserted in the above-mentioned patent litigations.
Surpass Tech Innovation LLC
In March 2014, Surpass Tech Innovation LLC filed a complaint in the United States District Court for the District of Delaware against the
Controlling Company and LG Display America, Inc. for alleged patent infringement. In April 2017, the case was terminated pursuant to a stipulation of dismissal filed by Surpass Tech Innovation LLC.
Anti-trust litigations
Argos Limited and affiliated companies (Argos) filed a Notice of Claim against the Controlling Company and LG Display Taiwan Co.,
Ltd. in the High Court of Justice in London alleging infringement of Treaty on the Functioning of the European Union and Agreement on the European Economic Area. Prior to Argos filing of Particulars of Claim and service, the Controlling
Company and LG Display Taiwan Co., Ltd. reached a settlement in principle in December 2017. The parties expect to execute a settlement agreement in early 2018.
Others
The Group
is defending against various claims in addition to pending proceedings described above. The Group does not have a present obligation for these matters and has not recognized any provision at December 31, 2017.
60
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
14.
|
Contingent Liabilities and Commitments, Continued
|
Factoring and securitization of accounts receivable
The Controlling Company has agreements with Korea Development Bank and several other banks for accounts receivable sales negotiating facilities
of up to an aggregate of USD 1,743 million (
W
1,867,964 million) in connection with the Controlling Companys export sales transactions with its subsidiaries. As of December 31, 2017, no short-term
borrowings were outstanding in connection with these agreements. In connection with all of the contracts mentioned above, the Controlling Company has sold its accounts receivable with recourse.
The Controlling Company and oversea subsidiaries entered into agreements with financial institutions for accounts receivables sales negotiating
facilities. The respective maximum amount of accounts receivables sales and the amount of sold accounts receivables before maturity by contract are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of USD and KRW)
|
|
Classification
|
|
Financial institutions
|
|
Maximum
|
|
|
Not yet due
|
|
|
|
|
|
Contractual
amount
|
|
|
KRW
equivalent
|
|
|
Contractual
amount
|
|
|
KRW
equivalent
|
|
Controlling Company
|
|
Shinhan Bank
|
|
|
KRW 90,000
|
|
|
|
90,000
|
|
|
|
|
|
|
|
|
|
|
|
Sumitomo Mitsui Banking Corporation
|
|
|
USD 20
|
|
|
|
21,428
|
|
|
|
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ
|
|
|
USD 70
|
|
|
|
74,998
|
|
|
|
|
|
|
|
|
|
|
|
BNP Paribas
|
|
|
USD 150
|
|
|
|
160,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD 240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KRW 90,000
|
|
|
|
347,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Singapore
Pte. Ltd.
|
|
Standard Chartered Bank
|
|
|
USD 300
|
|
|
|
321,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Taiwan
Co., Ltd.
|
|
BNP Paribas
|
|
|
USD 82
|
|
|
|
87,855
|
|
|
|
|
|
|
|
|
|
|
|
Hongkong & Shanghai
Banking
Corp.
|
|
|
USD 60
|
|
|
|
64,284
|
|
|
|
|
|
|
|
|
|
|
|
Taishin International Bank
|
|
|
USD 280
|
|
|
|
299,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Germany GmbH
|
|
Citibank
|
|
|
USD 160
|
|
|
|
171,424
|
|
|
|
|
|
|
|
|
|
|
BNP Paribas
|
|
|
USD 75
|
|
|
|
80,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display
America, Inc.
|
|
Hongkong & Shanghai Banking Corp.
|
|
|
USD 400
|
|
|
|
428,560
|
|
|
|
|
|
|
|
|
|
|
|
Standard Chartered Bank
|
|
|
USD 400
|
|
|
|
428,560
|
|
|
|
|
|
|
|
|
|
|
|
Sumitomo Mitsui
Banking Corporation
|
|
|
USD 250
|
|
|
|
267,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Japan Co., Ltd.
|
|
Sumitomo Mitsui
Banking Corporation
|
|
|
USD 90
|
|
|
|
96,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Display Guangzhou Trading Co., Ltd.
|
|
Industrial and Commercial Bank of China
|
|
|
USD 64
|
|
|
|
68,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD 2,161
|
|
|
|
2,315,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD 2,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KRW 90,000
|
|
|
|
2,662,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
In connection with all of the contracts in the above table, the Controlling Company has sold
its accounts receivable without recourse.
14.
|
Contingent Liabilities and Commitments, Continued
|
Letters of credit
As of December 31, 2017, the Controlling Company has agreements in relation to the opening of letters of credit up to USD 30 million
(
W
32,142 million) with KEB Hana Bank, USD 80 million (
W
85,712 million) with Bank of China and USD 50 million (
W
53,570 million) with
Sumitomo Mitsui Banking Corporation.
Payment guarantees
The Controlling Company obtained payment guarantees amounting to USD 900 million (
W
964,260 million) from
KEB Hana Bank and others for advance received related to the long-term supply agreements and USD 8.5 million (
W
9,107 million) from Shinhan Bank for value added tax payments in Poland.
LG Display (China) Co., Ltd. and other subsidiaries are provided with payment guarantees from the Bank of China and other various banks
amounting to CNY 3,550 million (
W
580,958 million), JPY 700 million (
W
6,644 million), USD 0.5 million (
W
536 million), EUR
2.5 million (
W
3,198 million), PLN 0.2 million (
W
61 million) and VND 40,992 million (
W
1,935 million), respectively, for their local
tax payments and utility payments.
Credit facility
LG Display Vietnam Co., Ltd. and other subsidiary have entered into long-term credit facility agreements of up to USD 550 million
(
W
589,270 million) with Sumitomo Mitsui Banking Corporation and other various banks and borrowings as of December 31, 2017 amount to USD 495 million (
W
530,343 million)
License agreements
As of December 31, 2017, in relation to its LCD business, the Group has technical license agreements with Hitachi Display, Ltd. and others
and has a trademark license agreement with LG Corp.
Long-term supply agreement
As of December 31, 2017, in connection with
long-term
supply agreements with customers, the
Controlling Company recognized USD 900 million (
W
964,260 million) in advances received. The advance received will be offset against outstanding accounts receivable balances after a given period of time, as well
as those arising from the supply of products thereafter. The Controlling Company received payment guarantees amounting to USD 900 million (
W
964,260 million) from KEB Hana Bank and other various banks relating
to advance received.
Pledged Assets
Regarding the secured bank loan amounting to USD 300 million (
W
320,797 million) and CNY
1,964 million (
W
321,376 million) from China Construction Bank, as of December 31, 2017, the Group provided its property, plant and equipment and others with carrying amount of
W
303,324 million as pledged assets.
62
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
The Controlling Company is authorized to issue 500,000,000 shares of capital
stock (par value
W
5,000), and as of December 31, 2017 and December 31, 2016, the number of issued common shares is 357,815,700. There have been no changes in the capital stock from January 1, 2017 to
December 31, 2017.
Reserves consist mainly of the following:
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign
operations.
Other comprehensive income (loss) from associates
The other comprehensive income (loss) from associates comprises the amount related to change in equity of investments in equity accounted
investees.
Reserves as of December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Foreign currency translation differences for foreign operations
|
|
W
|
(259,749
|
)
|
|
|
(59,042
|
)
|
Other comprehensive loss from associates (excluding remeasurements of net defined benefit
liabilities)
|
|
|
(28,531
|
)
|
|
|
(29,436
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(288,280
|
)
|
|
|
(88,478
|
)
|
|
|
|
|
|
|
|
|
|
63
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
15.
|
Capital and Reserves, Continued
|
The movement in reserves for the years ended
December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
Net change in fair value
of
available-for-sale
financial assets
|
|
|
Foreign currency
translation differences
for foreign operations
|
|
|
Other comprehensive income
(loss) from associates
(excluding remeasurements)
|
|
|
Total
|
|
January 1, 2016
|
|
W
|
58
|
|
|
|
18,196
|
|
|
|
(24,020
|
)
|
|
|
(5,766
|
)
|
Change in reserves
|
|
|
(58
|
)
|
|
|
(77,238
|
)
|
|
|
(5,416
|
)
|
|
|
(82,712
|
)
|
December 31, 2016
|
|
|
|
|
|
|
(59,042
|
)
|
|
|
(29,436
|
)
|
|
|
(88,478
|
)
|
January 1, 2017
|
|
|
|
|
|
|
(59,042
|
)
|
|
|
(29,436
|
)
|
|
|
(88,478
|
)
|
Change in reserves
|
|
|
|
|
|
|
(200,707
|
)
|
|
|
905
|
|
|
|
(199,802
|
)
|
December 31, 2017
|
|
|
|
|
|
|
(259,749
|
)
|
|
|
(28,531
|
)
|
|
|
(288,280
|
)
|
The dividends of
W
178,908 million
(
W
500 won per share) were determined by the board of directors of the Controlling Company in 2017 but have not been paid yet. There are no income tax consequences.
64
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
Details of revenue for the years ended December 31, 2017 and 2016 are as
follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Sales of goods
|
|
W
|
27,745,047
|
|
|
|
26,463,563
|
|
Royalties
|
|
|
20,175
|
|
|
|
17,122
|
|
Others
|
|
|
24,994
|
|
|
|
23,389
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
27,790,216
|
|
|
|
26,504,074
|
|
|
|
|
|
|
|
|
|
|
17.
|
Geographic and Other Information
|
The following is a summary of sales by region based on
the location of the customers for the years ended December 31, 2017 and 2016.
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Region
|
|
2017
|
|
|
2016
|
|
Domestic
|
|
W
|
1,996,183
|
|
|
|
1,825,191
|
|
Foreign
|
|
|
|
|
|
|
|
|
China
|
|
|
18,090,974
|
|
|
|
18,367,767
|
|
Asia (excluding China)
|
|
|
2,383,390
|
|
|
|
2,148,676
|
|
United States
|
|
|
2,724,714
|
|
|
|
2,053,317
|
|
Europe (excluding Poland)
|
|
|
1,433,126
|
|
|
|
983,672
|
|
Poland
|
|
|
1,161,829
|
|
|
|
1,125,451
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
25,794,033
|
|
|
|
24,678,883
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
27,790,216
|
|
|
|
26,504,074
|
|
|
|
|
|
|
|
|
|
|
Sales to Company A and Company B amount to
W
9,027,165 million and
W
6,511,961 million, respectively, for the year ended December 31, 2017 (2016:
W
9,122,385 million and
W
5,808,630 million). The
Groups top ten
end-brand
customers together accounted for 81% of sales for the year ended December 31, 2017 (2016: 82%).
|
(b)
|
Non-current
assets by geography
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
Region
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
Property,
plant and
equipment
|
|
|
Intangible
assets
|
|
|
Property,
plant and
equipment
|
|
|
Intangible
assets
|
|
Domestic
|
|
W
|
12,487,111
|
|
|
|
731,373
|
|
|
|
8,758,171
|
|
|
|
673,966
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China
|
|
|
2,929,739
|
|
|
|
17,244
|
|
|
|
3,079,724
|
|
|
|
23,298
|
|
Others
|
|
|
785,110
|
|
|
|
164,204
|
|
|
|
193,554
|
|
|
|
197,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,714,849
|
|
|
|
181,448
|
|
|
|
3,273,278
|
|
|
|
220,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
16,201,960
|
|
|
|
912,821
|
|
|
|
12,031,449
|
|
|
|
894,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
17.
|
Geographic and Other Information, Continued
|
|
(c)
|
Revenue by product and services
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Televisions
|
|
W
|
11,717,982
|
|
|
|
10,132,520
|
|
Desktop monitors
|
|
|
4,393,482
|
|
|
|
4,035,195
|
|
Tablet products
|
|
|
2,369,634
|
|
|
|
2,695,808
|
|
Notebook computers
|
|
|
2,244,088
|
|
|
|
2,383,532
|
|
Mobile and others
|
|
|
7,065,030
|
|
|
|
7,257,019
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
27,790,216
|
|
|
|
26,504,074
|
|
|
|
|
|
|
|
|
|
|
18.
|
The Nature of Expenses and Others
|
The classification of expenses by nature for the
years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Changes in inventories
|
|
W
|
(62,299
|
)
|
|
|
63,884
|
|
Purchases of raw materials, merchandise and others
|
|
|
13,548,848
|
|
|
|
14,244,942
|
|
Depreciation and amortization
|
|
|
3,214,576
|
|
|
|
3,021,571
|
|
Outsourcing fees
|
|
|
771,697
|
|
|
|
819,742
|
|
Labor costs
|
|
|
3,258,427
|
|
|
|
3,022,607
|
|
Supplies and others
|
|
|
1,239,915
|
|
|
|
1,053,245
|
|
Utility
|
|
|
865,347
|
|
|
|
840,664
|
|
Fees and commissions
|
|
|
692,125
|
|
|
|
638,732
|
|
Shipping costs
|
|
|
249,820
|
|
|
|
224,742
|
|
Advertising
|
|
|
236,440
|
|
|
|
67,636
|
|
Warranty expenses
|
|
|
251,131
|
|
|
|
166,691
|
|
Travel
|
|
|
92,976
|
|
|
|
73,807
|
|
Taxes and dues
|
|
|
91,806
|
|
|
|
74,506
|
|
Others
|
|
|
919,051
|
|
|
|
927,218
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
25,369,860
|
|
|
|
25,239,987
|
|
|
|
|
|
|
|
|
|
|
Total expenses consist of cost of sales, selling, administrative, research and development expenses and other
non-operating
expenses, excluding foreign exchange differences.
66
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
19.
|
Selling and Administrative Expenses
|
Details of selling and administrative expenses for
the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Salaries
|
|
W
|
327,288
|
|
|
|
276,824
|
|
Expenses related to defined benefit plans
|
|
|
27,401
|
|
|
|
28,999
|
|
Other employee benefits
|
|
|
94,740
|
|
|
|
89,717
|
|
Shipping costs
|
|
|
214,866
|
|
|
|
191,442
|
|
Fees and commissions
|
|
|
197,070
|
|
|
|
192,786
|
|
Depreciation
|
|
|
138,711
|
|
|
|
129,225
|
|
Taxes and dues
|
|
|
46,317
|
|
|
|
30,523
|
|
Advertising
|
|
|
236,440
|
|
|
|
67,636
|
|
Warranty expenses
|
|
|
251,131
|
|
|
|
166,691
|
|
Rent
|
|
|
26,711
|
|
|
|
25,840
|
|
Insurance
|
|
|
12,459
|
|
|
|
11,561
|
|
Travel
|
|
|
27,879
|
|
|
|
23,343
|
|
Training
|
|
|
16,311
|
|
|
|
14,464
|
|
Others
|
|
|
73,181
|
|
|
|
55,365
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,690,505
|
|
|
|
1,304,416
|
|
|
|
|
|
|
|
|
|
|
Details of personnel expenses for the years ended December 31,
2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Salaries and wages
|
|
W
|
2,704,217
|
|
|
|
2,418,869
|
|
Other employee benefits
|
|
|
483,704
|
|
|
|
459,730
|
|
Contributions to National Pension plan
|
|
|
73,061
|
|
|
|
69,588
|
|
Expenses related to defined benefit plan
|
|
|
198,241
|
|
|
|
220,962
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,459,223
|
|
|
|
3,169,149
|
|
|
|
|
|
|
|
|
|
|
67
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
21.
|
Other
Non-operating
Income and Other
Non-operating
Expenses
|
|
(a)
|
Details of other
non-operating
income for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Foreign currency gain
|
|
W
|
969,425
|
|
|
|
1,543,909
|
|
Gain on disposal of property, plant and equipment
|
|
|
101,227
|
|
|
|
14,637
|
|
Gain on disposal of intangible assets
|
|
|
308
|
|
|
|
|
|
Reversal of impairment loss on intangible assets
|
|
|
35
|
|
|
|
|
|
Rental income
|
|
|
2,212
|
|
|
|
5,152
|
|
Others
|
|
|
8,539
|
|
|
|
27,126
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,081,746
|
|
|
|
1,590,824
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Details of other
non-operating
expenses for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Foreign currency loss
|
|
W
|
1,189,193
|
|
|
|
1,420,502
|
|
Other bad debt expenses
|
|
|
1,798
|
|
|
|
579
|
|
Loss on disposal of property, plant and equipment
|
|
|
20,030
|
|
|
|
7,466
|
|
Impairment loss on property, plant, and equipment
|
|
|
|
|
|
|
1,610
|
|
Loss on disposal of intangible assets
|
|
|
30
|
|
|
|
75
|
|
Impairment loss on intangible assets
|
|
|
1,809
|
|
|
|
138
|
|
Donations
|
|
|
17,152
|
|
|
|
22,221
|
|
Expenses related to legal proceedings or claims and others
|
|
|
443
|
|
|
|
15,240
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,230,455
|
|
|
|
1,467,831
|
|
|
|
|
|
|
|
|
|
|
68
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
22.
|
Finance Income and Finance Costs
|
|
(a)
|
Finance income and costs recognized in profit or loss for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
Finance income
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
60,106
|
|
|
|
42,079
|
|
Foreign currency gain
|
|
|
210,890
|
|
|
|
81,554
|
|
Gain on disposal of investments in equity accounted investees
|
|
|
3,669
|
|
|
|
11,367
|
|
Gain on transaction of derivatives
|
|
|
3,106
|
|
|
|
4,427
|
|
Gain on valuation of derivatives
|
|
|
1,070
|
|
|
|
244
|
|
Gain on disposal of available-for-sales financial assets
|
|
|
8
|
|
|
|
|
|
Gain on valuation of financial asset at fair value through profit or loss
|
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
279,019
|
|
|
|
139,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
90,538
|
|
|
|
113,285
|
|
Foreign currency loss
|
|
|
126,642
|
|
|
|
132,320
|
|
Loss on disposal of investments in equity accounted investees
|
|
|
42,112
|
|
|
|
5,643
|
|
Loss on impairment of investments in equity accounted investees
|
|
|
4,234
|
|
|
|
6,137
|
|
Loss on impairment of
available-for-sale
financial assets
|
|
|
1,948
|
|
|
|
3,757
|
|
Loss on valuation of financial asset at fair value through profit or loss
|
|
|
|
|
|
|
118
|
|
Loss on sale of trade accounts and notes receivable
|
|
|
784
|
|
|
|
2,886
|
|
Loss on transaction of derivatives
|
|
|
514
|
|
|
|
334
|
|
Loss on valuation of derivatives
|
|
|
|
|
|
|
472
|
|
Others
|
|
|
2,084
|
|
|
|
1,234
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
268,856
|
|
|
|
266,186
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Finance income and costs recognized in other comprehensive income or loss for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Foreign currency translation differences for foreign operations
|
|
W
|
(231,738
|
)
|
|
|
(90,503
|
)
|
Net change in fair value of
available-for-sale
financial assets
|
|
|
|
|
|
|
(77
|
)
|
Tax effect
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Finance income (costs) recognized in other comprehensive income or loss after tax
|
|
W
|
(231,738
|
)
|
|
|
(90,561
|
)
|
|
|
|
|
|
|
|
|
|
69
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
|
(a)
|
Details of income tax expense for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Current tax expense
|
|
|
|
|
|
|
|
|
Current year
|
|
W
|
512,123
|
|
|
|
361,237
|
|
Deferred tax expense (benefit)
|
|
|
|
|
|
|
|
|
Origination and reversal of temporary differences
|
|
|
(104,835
|
)
|
|
|
(49,190
|
)
|
Change in unrecognized deferred tax assets
|
|
|
(11,708
|
)
|
|
|
72,678
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(116,543
|
)
|
|
|
23,488
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
W
|
395,580
|
|
|
|
384,725
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
Income taxes recognized directly in other comprehensive income or loss for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
|
|
Before
tax
|
|
|
Tax
benefit
|
|
|
Net of
tax
|
|
|
Before
tax
|
|
|
Tax
benefit
(expense)
|
|
|
Net of
tax
|
|
Net change in fair value of
available-for-sale
financial assets
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
(77
|
)
|
|
|
19
|
|
|
|
(58
|
)
|
Remeasurements of net defined benefit liabilities (assets)
|
|
|
(16,260
|
)
|
|
|
9,259
|
|
|
|
(7,001
|
)
|
|
|
155,346
|
|
|
|
(37,594
|
)
|
|
|
117,752
|
|
Foreign currency translation differences for foreign operations
|
|
|
(231,738
|
)
|
|
|
|
|
|
|
(231,738
|
)
|
|
|
(90,503
|
)
|
|
|
|
|
|
|
(90,503
|
)
|
Change in equity of equity method investee
|
|
|
1,346
|
|
|
|
|
|
|
|
1,346
|
|
|
|
(5,216
|
)
|
|
|
|
|
|
|
(5,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(246,652
|
)
|
|
|
9,259
|
|
|
|
(237,393
|
)
|
|
|
59,550
|
|
|
|
(37,575
|
)
|
|
|
21,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
23.
|
Income Taxes, Continued
|
|
(c)
|
Reconciliation of the actual effective tax rate for the years ended December 31, 2017 and 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
2016
|
|
Profit for the year
|
|
|
|
|
|
W
|
1,937,052
|
|
|
|
|
|
|
|
931,058
|
|
Income tax expense
|
|
|
|
|
|
|
395,580
|
|
|
|
|
|
|
|
384,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
|
|
2,332,632
|
|
|
|
|
|
|
|
1,316,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense using the statutory tax rate of each country
|
|
|
28.54
|
%
|
|
|
665,733
|
|
|
|
33.49
|
%
|
|
|
440,753
|
|
Non-deductible
expenses
|
|
|
2.72
|
%
|
|
|
63,416
|
|
|
|
3.39
|
%
|
|
|
44,606
|
|
Tax credits
|
|
|
(10.64
|
%)
|
|
|
(248,191
|
)
|
|
|
(11.45
|
%)
|
|
|
(150,663
|
)
|
Change in unrecognized deferred tax assets
|
|
|
(0.50
|
%)
|
|
|
(11,708
|
)
|
|
|
5.52
|
%
|
|
|
72,678
|
|
Effect on change in tax rate (Note 24(d))
|
|
|
(3.10
|
%)
|
|
|
(72,376
|
)
|
|
|
|
|
|
|
|
|
Others
|
|
|
(0.06
|
%)
|
|
|
(1,294
|
)
|
|
|
(1.72
|
%)
|
|
|
(22,649
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual income tax expense
|
|
|
|
|
|
W
|
395,580
|
|
|
|
|
|
|
|
384,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual effective tax rate
|
|
|
|
|
|
|
16.96
|
%
|
|
|
|
|
|
|
29.23
|
%
|
24.
|
Deferred Tax Assets and Liabilities
|
|
(a)
|
Unrecognized deferred tax liabilities
|
As of December 31, 2017, in relation to the
temporary differences on investments in subsidiaries amounting to
W
103,946 million, the Controlling Company did not recognize deferred tax liabilities since the Controlling Company is able to control the timing
of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future.
|
(b)
|
Unused tax credit carryforwards for which no deferred tax asset is recognized
|
Realization of
deferred tax assets related to tax credit carryforwards is dependent on whether sufficient taxable income will be generated prior to their expiration. As of December 31, 2017, the Controlling Company recognized deferred tax assets of
W
268,926 million, in relation to tax credit carryforwards, to the extent that management believes the realization is probable. The amount of unused tax credit carryforwards for which no deferred tax asset is
recognized and their expiration dates are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2020
|
|
|
December 31,
2021
|
|
|
December 31,
2022
|
|
Tax credit carryforwards
|
|
W
|
|
|
|
|
|
|
|
|
|
|
|
|
58,391
|
|
|
|
91,862
|
|
71
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
24.
|
Deferred Tax Assets and Liabilities, Continued
|
|
(c)
|
Deferred tax assets and liabilities are attributable to the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Assets
|
|
|
Liabilities
|
|
|
Total
|
|
|
|
December, 31,
2017
|
|
|
December, 31,
2016
|
|
|
December, 31,
2017
|
|
|
December, 31,
2016
|
|
|
December, 31,
2017
|
|
|
December, 31,
2016
|
|
Other accounts receivable, net
|
|
W
|
|
|
|
|
|
|
|
|
(1,441
|
)
|
|
|
(1,190
|
)
|
|
|
(1,441
|
)
|
|
|
(1,190
|
)
|
Inventories, net
|
|
|
34,550
|
|
|
|
35,771
|
|
|
|
|
|
|
|
|
|
|
|
34,550
|
|
|
|
35,771
|
|
Defined benefit liabilities, net
|
|
|
2,375
|
|
|
|
10,817
|
|
|
|
|
|
|
|
|
|
|
|
2,375
|
|
|
|
10,817
|
|
Unrealized gain or loss and others
|
|
|
29,061
|
|
|
|
34,777
|
|
|
|
|
|
|
|
|
|
|
|
29,061
|
|
|
|
34,777
|
|
Accrued expenses
|
|
|
183,903
|
|
|
|
122,998
|
|
|
|
|
|
|
|
|
|
|
|
183,903
|
|
|
|
122,998
|
|
Property, plant and equipment
|
|
|
409,928
|
|
|
|
338,860
|
|
|
|
|
|
|
|
|
|
|
|
409,928
|
|
|
|
338,860
|
|
Intangible assets
|
|
|
3,457
|
|
|
|
744
|
|
|
|
(24,646
|
)
|
|
|
(31,771
|
)
|
|
|
(21,189
|
)
|
|
|
(31,027
|
)
|
Provisions
|
|
|
27,018
|
|
|
|
15,051
|
|
|
|
|
|
|
|
|
|
|
|
27,018
|
|
|
|
15,051
|
|
Gain or loss on foreign currency translation, net
|
|
|
13
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
11
|
|
Others
|
|
|
27,562
|
|
|
|
21,435
|
|
|
|
|
|
|
|
|
|
|
|
27,562
|
|
|
|
21,435
|
|
Tax credit carryforwards
|
|
|
268,926
|
|
|
|
287,400
|
|
|
|
|
|
|
|
|
|
|
|
268,926
|
|
|
|
287,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets (liabilities)
|
|
W
|
986,793
|
|
|
|
867,864
|
|
|
|
(26,087
|
)
|
|
|
(32,961
|
)
|
|
|
960,706
|
|
|
|
834,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
24.
|
Deferred Tax Assets and Liabilities, Continued
|
|
(d)
|
Changes in deferred tax assets and liabilities for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
January 1,
2016
|
|
|
Profit
or loss
|
|
|
Other
compre-
hensive
income
(loss)
|
|
|
December 31,
2016
|
|
|
Profit or
loss
|
|
|
Other
compre-
hensive
income
|
|
|
December 31,
2017
|
|
Other accounts receivable, net
|
|
W
|
(2,388
|
)
|
|
|
1,198
|
|
|
|
|
|
|
|
(1,190
|
)
|
|
|
(251
|
)
|
|
|
|
|
|
|
(1,441
|
)
|
Inventories, net
|
|
|
46,449
|
|
|
|
(10,678
|
)
|
|
|
|
|
|
|
35,771
|
|
|
|
(1,221
|
)
|
|
|
|
|
|
|
34,550
|
|
Available-for-sale
financial assets
|
|
|
(19
|
)
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit liabilities, net
|
|
|
58,962
|
|
|
|
(10,551
|
)
|
|
|
(37,594
|
)
|
|
|
10,817
|
|
|
|
(17,701
|
)
|
|
|
9,259
|
|
|
|
2,375
|
|
Unrealized gain or loss and others
|
|
|
9,121
|
|
|
|
25,656
|
|
|
|
|
|
|
|
34,777
|
|
|
|
(5,716
|
)
|
|
|
|
|
|
|
29,061
|
|
Accrued expenses
|
|
|
122,002
|
|
|
|
996
|
|
|
|
|
|
|
|
122,998
|
|
|
|
60,905
|
|
|
|
|
|
|
|
183,903
|
|
Property, plant and equipment
|
|
|
271,252
|
|
|
|
67,608
|
|
|
|
|
|
|
|
338,860
|
|
|
|
71,068
|
|
|
|
|
|
|
|
409,928
|
|
Intangible assets
|
|
|
(33,846
|
)
|
|
|
2,819
|
|
|
|
|
|
|
|
(31,027
|
)
|
|
|
9,838
|
|
|
|
|
|
|
|
(21,189
|
)
|
Provisions
|
|
|
14,152
|
|
|
|
899
|
|
|
|
|
|
|
|
15,051
|
|
|
|
11,967
|
|
|
|
|
|
|
|
27,018
|
|
Gain or loss on foreign currency translation, net
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
2
|
|
|
|
|
|
|
|
13
|
|
Others
|
|
|
25,253
|
|
|
|
(3,818
|
)
|
|
|
|
|
|
|
21,435
|
|
|
|
6,127
|
|
|
|
|
|
|
|
27,562
|
|
Tax credit carryforwards
|
|
|
385,017
|
|
|
|
(97,617
|
)
|
|
|
|
|
|
|
287,400
|
|
|
|
(18,474
|
)
|
|
|
|
|
|
|
268,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets (liabilities)
|
|
W
|
895,966
|
|
|
|
(23,488
|
)
|
|
|
(37,575
|
)
|
|
|
834,903
|
|
|
|
116,544
|
|
|
|
9,259
|
|
|
|
960,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate applicable to the Controlling Company is 24.2% for the year ended December 31, 2017.
During the year ended December 31, 2017, certain amendments to corporate income tax rules in Korea were enacted and effective on January 1, 2018 that resulted in application of 27.5% for taxable income in excess of
W
300,000 million. Accordingly, the Controlling Company recorded the impact from the amendment in 2017.
73
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
|
(a)
|
Basic earnings per share for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
(In won and No. of shares)
|
|
2017
|
|
|
2016
|
|
|
|
|
Profit attributable to owners of the Controlling Company
|
|
W
|
1,802,756,119,275
|
|
|
|
906,714,278,688
|
|
Weighted-average number of common stocks
outstanding
|
|
|
357,815,700
|
|
|
|
357,815,700
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
W
|
5,038
|
|
|
|
2,534
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2017 and 2016, there were no events or transactions that resulted in
changes in the number of common stocks used for calculating earnings per share.
|
(b)
|
Diluted earnings per share for the years ended December 31, 2017 and 2016 are not calculated since there was no potential common stock.
|
26.
|
Financial Risk Management
|
The Group is exposed to credit risk, liquidity risk and
market risks. The Group identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below a threshold level.
Market risk is the risk that changes in market prices, such as foreign exchange
rates, interest rates and equity prices, will affect the Groups income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimizing the return.
The Group is exposed to currency risk on sales, purchases and borrowings that
are denominated in a currency other than the functional currency of the Controlling Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, CNY, JPY, etc.
Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash
flows generated by the underlying operations of the Group, primarily KRW and USD.
In respect of other monetary assets and liabilities
denominated in foreign currencies, the Group adopts policies to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
74
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
i)
|
Exposure to currency risk
|
The Groups exposure to foreign currency risk based on notional
amounts at the reporting date is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31, 2017
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
TWD
|
|
|
EUR
|
|
|
PLN
|
|
|
VND
|
|
Cash and cash equivalents
|
|
|
1,228
|
|
|
|
152
|
|
|
|
6,940
|
|
|
|
16
|
|
|
|
3
|
|
|
|
165
|
|
|
|
342,063
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
|
|
|
3,316
|
|
|
|
11
|
|
|
|
1,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-trade
receivable
|
|
|
62
|
|
|
|
1,340
|
|
|
|
136
|
|
|
|
2
|
|
|
|
9
|
|
|
|
|
|
|
|
13,405
|
|
Other assets denominated in foreign currencies
|
|
|
1
|
|
|
|
206
|
|
|
|
596
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
1,882
|
|
Trade accounts and notes payable
|
|
|
(1,345
|
)
|
|
|
(14,898
|
)
|
|
|
(2,843
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(102,398
|
)
|
Other accounts payable
|
|
|
(285
|
)
|
|
|
(14,653
|
)
|
|
|
(2,403
|
)
|
|
|
(11
|
)
|
|
|
(8
|
)
|
|
|
(4
|
)
|
|
|
(2,138,370
|
)
|
Debt
|
|
|
(1,500
|
)
|
|
|
|
|
|
|
(3,263
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
1,477
|
|
|
|
(27,842
|
)
|
|
|
1,366
|
|
|
|
14
|
|
|
|
4
|
|
|
|
161
|
|
|
|
(1,883,418
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
December 31, 2016
|
|
|
|
USD
|
|
|
JPY
|
|
|
CNY
|
|
|
TWD
|
|
|
EUR
|
|
|
PLN
|
|
|
VND
|
|
Cash and cash equivalents
|
|
|
518
|
|
|
|
308
|
|
|
|
3,785
|
|
|
|
36
|
|
|
|
1
|
|
|
|
77
|
|
|
|
338,770
|
|
Deposits in banks
|
|
|
|
|
|
|
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
|
|
|
3,558
|
|
|
|
10
|
|
|
|
1,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-trade
receivable
|
|
|
52
|
|
|
|
2,434
|
|
|
|
199
|
|
|
|
12
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
Long-term
non-trade
receivable
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets denominated in foreign currencies
|
|
|
1
|
|
|
|
259
|
|
|
|
210
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
506
|
|
Trade accounts and notes payable
|
|
|
(1,204
|
)
|
|
|
(14,940
|
)
|
|
|
(2,567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accounts payable
|
|
|
(397
|
)
|
|
|
(9,836
|
)
|
|
|
(771
|
)
|
|
|
(7
|
)
|
|
|
(2
|
)
|
|
|
(5
|
)
|
|
|
(665,869
|
)
|
Debt
|
|
|
(1,251
|
)
|
|
|
|
|
|
|
(3,264
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure
|
|
|
1,279
|
|
|
|
(21,765
|
)
|
|
|
(132
|
)
|
|
|
47
|
|
|
|
(1
|
)
|
|
|
74
|
|
|
|
(326,593
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
Average exchange rates applied for the years ended December 31, 2017 and 2016 and the
exchange rates at December 31, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In won)
|
|
Average rate
|
|
|
Reporting date spot rate
|
|
|
|
2017
|
|
|
2016
|
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
USD
|
|
W
|
1,131.08
|
|
|
|
1,159.83
|
|
|
|
1,071.40
|
|
|
|
1,208.50
|
|
JPY
|
|
|
10.09
|
|
|
|
10.67
|
|
|
|
9.49
|
|
|
|
10.37
|
|
CNY
|
|
|
167.52
|
|
|
|
174.40
|
|
|
|
163.65
|
|
|
|
173.26
|
|
TWD
|
|
|
37.16
|
|
|
|
35.97
|
|
|
|
35.92
|
|
|
|
37.41
|
|
EUR
|
|
|
1,277.01
|
|
|
|
1,283.95
|
|
|
|
1,279.25
|
|
|
|
1,267.60
|
|
PLN
|
|
|
299.98
|
|
|
|
294.41
|
|
|
|
306.07
|
|
|
|
287.62
|
|
VND
|
|
|
0.0498
|
|
|
|
0.0518
|
|
|
|
0.0472
|
|
|
|
0.0531
|
|
A weaker won, as indicated below, against the following currencies which
comprise the Groups assets or liabilities denominated in a foreign currency as of December 31, 2017 and 2016, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign
currency exchange rate variances that the Group considers to be reasonably possible as of the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and
profit or loss would have been as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
Equity
|
|
|
Profit or
loss
|
|
|
Equity
|
|
|
Profit or
loss
|
|
USD (5 percent weakening)
|
|
W
|
50,040
|
|
|
|
91,238
|
|
|
|
57,111
|
|
|
|
63,337
|
|
JPY (5 percent weakening)
|
|
|
(10,294
|
)
|
|
|
(9,141
|
)
|
|
|
(8,972
|
)
|
|
|
(7,237
|
)
|
CNY (5 percent weakening)
|
|
|
13,212
|
|
|
|
(6,396
|
)
|
|
|
(3,410
|
)
|
|
|
7,077
|
|
TWD (5 percent weakening)
|
|
|
23
|
|
|
|
1
|
|
|
|
88
|
|
|
|
|
|
EUR (5 percent weakening)
|
|
|
16
|
|
|
|
594
|
|
|
|
(40
|
)
|
|
|
(79
|
)
|
PLN (5 percent weakening)
|
|
|
2,515
|
|
|
|
(120
|
)
|
|
|
1,129
|
|
|
|
(167
|
)
|
VND (5 percent weakening)
|
|
|
(4,445
|
)
|
|
|
|
|
|
|
(867
|
)
|
|
|
|
|
A stronger won against the above currencies as of December 31, 2017 and 2016 would have had the equal but
opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.
76
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
The interest rate profile of the Groups interest-bearing financial instruments
at the reporting date is as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Fixed rate instruments
|
|
|
|
|
|
|
|
|
Financial assets
|
|
W
|
3,360,800
|
|
|
|
2,722,600
|
|
Financial liabilities
|
|
|
(2,962,671
|
)
|
|
|
(2,203,378
|
)
|
|
|
|
|
|
|
|
|
|
|
|
W
|
398,129
|
|
|
|
519,222
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
W
|
(2,640,447
|
)
|
|
|
(2,575,392
|
)
|
|
ii)
|
Equity and profit or loss sensitivity analysis for variable rate instruments
|
For the years
ended December 31, 2017 and 2016 a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for the respective following years. This analysis
assumes that all other variables, in particular foreign currency rates, remain constant.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Equity
|
|
|
Profit or loss
|
|
|
|
1%
increase
|
|
|
1%
decrease
|
|
|
1%
increase
|
|
|
1%
decrease
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(17,362
|
)
|
|
|
17,362
|
|
|
|
(17,362
|
)
|
|
|
17,362
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate instruments(*)
|
|
W
|
(16,868
|
)
|
|
|
16,868
|
|
|
|
(16,868
|
)
|
|
|
16,868
|
|
(*)
|
Financial instruments subject to interest rate swap not qualified for hedging are excluded.
|
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Groups receivables from customers.
The Groups exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each
customer. However, management believes that the demographics of the Groups customer base, including the default risk of the country in which customers operate, do not have a significant influence on credit risk since the majority of the
customers are global electronic appliance manufacturers operating in global markets.
The Group establishes credit limits for each customer
and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.
77
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
(b)
|
Credit risk, Continued
|
The Group does not establish allowances for receivables under insurance
or receivables from customers with a high credit rating. For the rest of the receivables, the Group establishes an allowance for impairment of trade and other receivables that have been individually or collectively evaluated for impairment and
estimated on the basis of historical loss experience for assets.
The carrying amount of financial assets represents the maximum credit
exposure. The maximum exposure to credit risk as of December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Cash and cash equivalents
|
|
W
|
2,602,560
|
|
|
|
1,558,696
|
|
Deposits in banks
|
|
|
758,089
|
|
|
|
1,163,763
|
|
Trade accounts and notes receivable, net
|
|
|
4,325,120
|
|
|
|
4,957,993
|
|
Non-trade
receivable, net
|
|
|
150,554
|
|
|
|
134,161
|
|
Accrued income
|
|
|
14,273
|
|
|
|
9,431
|
|
Available-for-sale
financial assets
|
|
|
162
|
|
|
|
154
|
|
Financial assets at fair value through profit or loss
|
|
|
1,552
|
|
|
|
1,382
|
|
Deposits
|
|
|
30,378
|
|
|
|
47,954
|
|
Short-term loans
|
|
|
16,766
|
|
|
|
7,696
|
|
Long-term loans
|
|
|
32,408
|
|
|
|
34,760
|
|
Long-term
non-trade
receivable
|
|
|
8,738
|
|
|
|
2,619
|
|
Derivatives
|
|
|
842
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,941,442
|
|
|
|
7,918,853
|
|
|
|
|
|
|
|
|
|
|
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises primarily from the sales and investing activities. Trade accounts and notes receivables are insured in order to manage credit risk and uninsured trade accounts and notes receivables are managed
in accordance with the Groups management policy.
78
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
Liquidity risk is the risk that the Group will encounter difficulty in meeting
the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Groups approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Groups reputation.
The Group has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the
extent that the Group does not generate sufficient cash flows from operations to meet its capital requirements, the Group may rely on other financing activities, such as external long-term borrowings and offerings of debt securities, equity-linked
and other debt securities. In addition, the Group maintains a line of credit with various banks
The following are the contractual
maturities of financial liabilities, including estimated interest payments, as of December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Contractual cash flows
|
|
|
|
Carrying
amount
|
|
|
Total
|
|
|
6 months
or less
|
|
|
6-12
months
|
|
|
1-2years
|
|
|
2-5
years
|
|
|
More than
5 years
|
|
Non-derivative
financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
642,172
|
|
|
|
660,540
|
|
|
|
258,027
|
|
|
|
145,804
|
|
|
|
256,709
|
|
|
|
|
|
|
|
|
|
Unsecured bank loans
|
|
|
2,950,184
|
|
|
|
3,112,199
|
|
|
|
36,579
|
|
|
|
596,101
|
|
|
|
1,107,718
|
|
|
|
1,176,097
|
|
|
|
195,704
|
|
Unsecured bond issues
|
|
|
2,010,762
|
|
|
|
2,124,147
|
|
|
|
413,307
|
|
|
|
134,829
|
|
|
|
592,031
|
|
|
|
983,980
|
|
|
|
|
|
Trade accounts and notes payable
|
|
|
2,875,090
|
|
|
|
2,875,090
|
|
|
|
2,875,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accounts payable
|
|
|
3,169,937
|
|
|
|
3,170,157
|
|
|
|
3,169,790
|
|
|
|
367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term other accounts payable
|
|
|
2
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
11,648,147
|
|
|
|
11,942,135
|
|
|
|
6,752,793
|
|
|
|
877,101
|
|
|
|
1,956,460
|
|
|
|
2,160,077
|
|
|
|
195,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or
at significantly different amounts.
79
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
Managements policy is to maintain a capital base so as to maintain
investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure.
Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31,
2017
|
|
|
December 31,
2016
|
|
Total liabilities
|
|
W
|
14,178,177
|
|
|
|
11,421,948
|
|
Total equity
|
|
|
14,981,510
|
|
|
|
13,462,388
|
|
Cash and deposits in banks (*1)
|
|
|
3,360,638
|
|
|
|
2,722,446
|
|
Borrowings (including bonds)
|
|
|
5,603,118
|
|
|
|
4,778,770
|
|
Total liabilities to equity ratio
|
|
|
95
|
%
|
|
|
85
|
%
|
Net borrowings to equity ratio (*2)
|
|
|
15
|
%
|
|
|
15
|
%
|
(*1)
|
Cash and deposits in banks consist of cash and cash equivalents and current deposit in banks.
|
(*2)
|
Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds) less cash and current deposits in banks by total equity.
|
80
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
(e)
|
Determination of fair value
|
|
(i)
|
Measurement of fair value
|
A number of the Groups accounting policies and disclosures
require the determination of fair value, for both financial and
non-financial
assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods.
When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
|
i)
|
Other current financial assets and liabilities
|
The carrying amounts approximate fair value
because of the short maturity of these instruments.
|
ii)
|
Trade Receivables and Other Receivables
|
The fair value of trade and other receivables is
estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. The carrying amounts of short-term receivables approximate fair value.
|
iii)
|
Investments in Equity and Debt Securities
|
The fair value of marketable
available-for-sale
financial assets is determined by reference to their quoted closing bid price at the reporting date. The fair value of
non-marketable
securities is determined using valuation methods.
|
iv)
|
Non-derivative
Financial Liabilities
|
Fair value, which
is determined for disclosure purposes, except for the liabilities at FVTPL, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.
81
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
(e)
|
Determination of fair value, Continued
|
|
(ii)
|
Fair values versus carrying amounts
|
The fair values of financial assets and liabilities,
together with the carrying amounts shown in the consolidated statement of financial position, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
Carrying
amounts
|
|
|
Fair
values
|
|
|
Carrying
amounts
|
|
|
Fair
values
|
|
Assets carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
W
|
162
|
|
|
|
162
|
|
|
|
154
|
|
|
|
154
|
|
Financial asset at fair value through profit or loss
|
|
|
1,552
|
|
|
|
1,552
|
|
|
|
1,382
|
|
|
|
1,382
|
|
Derivatives
|
|
|
842
|
|
|
|
842
|
|
|
|
244
|
|
|
|
244
|
|
Assets carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
W
|
2,602,560
|
|
|
|
(
|
*)
|
|
|
1,558,696
|
|
|
|
(
|
*)
|
Deposits in banks
|
|
|
758,089
|
|
|
|
(
|
*)
|
|
|
1,163,763
|
|
|
|
(
|
*)
|
Trade accounts and notes receivable
|
|
|
4,325,120
|
|
|
|
(
|
*)
|
|
|
4,957,993
|
|
|
|
(
|
*)
|
Non-trade
receivable
|
|
|
150,554
|
|
|
|
(
|
*)
|
|
|
134,161
|
|
|
|
(
|
*)
|
Accrued income
|
|
|
14,273
|
|
|
|
(
|
*)
|
|
|
9,431
|
|
|
|
(
|
*)
|
Deposits
|
|
|
30,378
|
|
|
|
(
|
*)
|
|
|
47,954
|
|
|
|
(
|
*)
|
Short-term loans
|
|
|
16,766
|
|
|
|
(
|
*)
|
|
|
7,696
|
|
|
|
(
|
*)
|
Long-term
loans
|
|
|
32,408
|
|
|
|
(
|
*)
|
|
|
34,760
|
|
|
|
(
|
*)
|
Long-term
non-trade
receivable
|
|
|
8,738
|
|
|
|
(
|
*)
|
|
|
2,619
|
|
|
|
(
|
*)
|
Liabilities carried at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
W
|
|
|
|
|
|
|
|
|
472
|
|
|
|
472
|
|
Liabilities carried at amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
642,172
|
|
|
|
642,172
|
|
|
|
700,820
|
|
|
|
700,820
|
|
Unsecured bank loans
|
|
|
2,950,184
|
|
|
|
2,955,399
|
|
|
|
2,197,132
|
|
|
|
2,200,522
|
|
Unsecured bond issues
|
|
|
2,010,762
|
|
|
|
2,016,086
|
|
|
|
1,880,818
|
|
|
|
1,903,863
|
|
Trade accounts and notes payable
|
|
|
2,875,090
|
|
|
|
(
|
*)
|
|
|
2,877,326
|
|
|
|
(
|
*)
|
Other accounts payable
|
|
|
3,169,937
|
|
|
|
3,170,147
|
|
|
|
2,449,517
|
|
|
|
2,449,938
|
|
Long-term other accounts payable
|
|
|
2
|
|
|
|
(
|
*)
|
|
|
3,530
|
|
|
|
3,891
|
|
(*)
|
Excluded from disclosures as the carrying amount approximates fair value.
|
82
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
(iii)
|
Financial Instruments measured at cost
|
Available-for-sale
financial assets measured at cost as of December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Intellectual Discovery Co., Ltd.
|
|
W
|
729
|
|
|
|
729
|
|
Kyulux, Inc.
|
|
|
1,968
|
|
|
|
3,266
|
|
Henghao Technology Co., Ltd.
|
|
|
|
|
|
|
1,559
|
|
ARCH Venture Fund Vill, L.P.
|
|
|
2,283
|
|
|
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,980
|
|
|
|
7,839
|
|
|
|
|
|
|
|
|
|
|
83
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
The movement in the
available-for-sale
financial assets for the years ended December 31, 2017 and 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2017
|
|
|
|
January 1,
2017
|
|
|
Acquisition
|
|
|
Disposal
and others
|
|
|
Impairment
|
|
|
Effect of
movements in
exchange rates
|
|
|
December 31,
2017
|
|
Intellectual Discovery Co., Ltd.
|
|
W
|
729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
729
|
|
Kyulux Inc.
|
|
|
3,266
|
|
|
|
|
|
|
|
|
|
|
|
(1,298
|
)
|
|
|
|
|
|
|
1,968
|
|
Henghao Technology Co., Ltd.
|
|
|
1,559
|
|
|
|
|
|
|
|
(909
|
)
|
|
|
(650
|
)
|
|
|
|
|
|
|
|
|
ARCH Venture Fund Vill, L.P
|
|
|
2,285
|
|
|
|
266
|
|
|
|
|
|
|
|
|
|
|
|
(268
|
)
|
|
|
2,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,839
|
|
|
|
266
|
|
|
|
(909
|
)
|
|
|
(1,948
|
)
|
|
|
(268
|
)
|
|
|
4,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
December 31, 2016
|
|
|
|
January 1,
2016
|
|
|
Acquisition
|
|
|
Disposal
and others
|
|
|
Impairment
|
|
|
Effect of
movements in
exchange rates
|
|
|
December 31,
2016
|
|
Intellectual Discovery Co., Ltd.
|
|
W
|
2,673
|
|
|
|
|
|
|
|
|
|
|
|
(1,944
|
)
|
|
|
|
|
|
|
729
|
|
Kyulux Inc.
|
|
|
3,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,266
|
|
Henghao Technology Co., Ltd.
|
|
|
3,372
|
|
|
|
|
|
|
|
|
|
|
|
(1,813
|
)
|
|
|
|
|
|
|
1,559
|
|
ARCH Venture Fund Vill, L.P
|
|
|
1,378
|
|
|
|
859
|
|
|
|
(48
|
)
|
|
|
|
|
|
|
96
|
|
|
|
2,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,689
|
|
|
|
859
|
|
|
|
(48
|
)
|
|
|
(3,757
|
)
|
|
|
96
|
|
|
|
7,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale-financial
assets consist of investments in equity securities and the fair value of some investments in equity securities are measured at cost because the range of reasonable fair value measurements is significant and the probabilities of the various estimates
cannot be reasonably assessed since they do not have a quoted price in an active market for an identical instruments.
84
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
(iv)
|
Fair values of financial assets and liabilities
|
i) Fair value hierarchy
The table below analyzes financial instruments carried at fair value based on the input variables used in the valuation method to measure fair
value of assets and liabilities. The different levels have been defined as follows:
|
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
|
|
|
|
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
|
|
|
|
Level 3: inputs for the asset or liability that are not based on observable market data
|
ii) Financial instruments measured at fair value
Fair value hierarchy classifications of the financial instruments that are measured at fair value as of December 31, 2017 and 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
W
|
162
|
|
|
|
|
|
|
|
|
|
|
|
162
|
|
Financial asset at fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
1,552
|
|
|
|
1,552
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
842
|
|
|
|
842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
financial assets
|
|
W
|
154
|
|
|
|
|
|
|
|
|
|
|
|
154
|
|
Financial asset at fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
1,382
|
|
|
|
1,382
|
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
244
|
|
|
|
244
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
|
W
|
|
|
|
|
|
|
|
|
472
|
|
|
|
472
|
|
85
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
26.
|
Financial Risk Management, Continued
|
|
iii)
|
Financial instruments not measured at fair value but for which the fair value is disclosed
|
Fair value hierarchy classifications, valuation technique and inputs for fair value measurements of the financial instruments not measured at
fair value but for which the fair value is disclosed as of December 31, 2017 and December 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2017
|
|
|
Valuation
technique
|
|
|
Input
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
|
|
|
|
|
|
|
|
642,172
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Unsecured bank loans
|
|
|
|
|
|
|
|
|
|
|
2,955,399
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Unsecured bond issues
|
|
|
|
|
|
|
|
|
|
|
2,016,086
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Other accounts payable
|
|
|
|
|
|
|
|
|
|
|
3,170,147
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2016
|
|
|
Valuation
technique
|
|
|
Input
|
|
Classification
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans
|
|
W
|
|
|
|
|
|
|
|
|
700,820
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Unsecured bank loans
|
|
|
|
|
|
|
|
|
|
|
2,200,522
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Unsecured bond issues
|
|
|
|
|
|
|
|
|
|
|
1,903,863
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Other accounts payable
|
|
|
|
|
|
|
|
|
|
|
2,449,938
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
Long-term other accounts payable
|
|
|
|
|
|
|
|
|
|
|
3,891
|
|
|
|
Discounted
cash flow
|
|
|
|
Discount
rate
|
|
The interest rates applied for determination of the above fair value at the reporting date are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Debentures, loans and others
|
|
|
1.57~2.92
|
%
|
|
|
1.48~2.68
|
%
|
86
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
27.
|
Changes in liabilities arising from financing activities
|
Changes in liabilities arising
from financing activities for the year ended December 31, 2017 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1,
2017
|
|
|
|
|
|
Non-cash
transactions
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
Reclassification
|
|
|
Exchange
rate effect
|
|
|
Effective interest
adjustment
|
|
|
December 31,
2017
|
|
Short-term borrowings
|
|
W
|
113,209
|
|
|
|
(105,864
|
)
|
|
|
|
|
|
|
(7,345
|
)
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
554,700
|
|
|
|
(544,731
|
)
|
|
|
1,525,616
|
|
|
|
(83,262
|
)
|
|
|
603
|
|
|
|
1,452,926
|
|
Long-term
borrowings
|
|
|
2,599,799
|
|
|
|
1,195,415
|
|
|
|
(1,021,215
|
)
|
|
|
(129,810
|
)
|
|
|
|
|
|
|
2,644,189
|
|
Bonds
|
|
|
1,511,062
|
|
|
|
497,959
|
|
|
|
(504,401
|
)
|
|
|
|
|
|
|
1,383
|
|
|
|
1,506,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,778,770
|
|
|
|
1,042,779
|
|
|
|
|
|
|
|
(220,417
|
)
|
|
|
1,986
|
|
|
|
5,603,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others
|
Related parties for the year ended December 31, 2017 are as follows:
|
|
|
Classification
|
|
Description
|
Associates(*)
|
|
Paju Electric Glass Co., Ltd. and others
|
Subsidiaries of Associates
|
|
AVATEC Electronics Yantai Co., Ltd. and others
|
Entity that has significant influence over the Controlling Company
|
|
LG Electronics Inc.
|
Subsidiaries of the entity that has significant influence over the Controlling Company
|
|
Subsidiaries of LG Electronics Inc.
|
(*)
|
Details of associates are described in note 8.
|
Related parties other than associates and joint
ventures that have transactions such as sales or balance of trade accounts and notes receivable and payable with the Group for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
Classification
|
|
December 31,
2017
|
|
December 31,
2016
|
Subsidiaries of Associates
|
|
Shinbo Electric Co., Ltd.
|
|
Shinbo Electric Co., Ltd.
|
|
|
-
|
|
New Optics USA, Inc.
|
|
|
-
|
|
NEWOPTIX RS. SA DE CV
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
LG Electronics Inc.
|
|
LG Electronics Inc.
|
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
Hiplaza Co., Ltd.
|
|
Hiplaza Co., Ltd.
|
|
Hi Entech Co., Ltd.
|
|
Hi Entech Co., Ltd.
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
LG Innotek Co., Ltd.
|
|
LG Innotek Co., Ltd.
|
|
Hanuri Co., Ltd.
|
|
Hanuri Co., Ltd.
|
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
LG Electronics Wroclaw Sp. z o.o.
|
|
LG Electronics Wroclaw Sp. z o.o.
|
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
-
|
|
LG Electronics Thailand Co., Ltd.
|
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
-
|
|
LG Electronics Shenyang Inc.
|
|
|
LG Electronics RUS, LLC
|
|
LG Electronics RUS, LLC
|
|
|
LG Electronics Nanjing New Technology Co., LTD.
|
|
LG Electronics Nanjing New Technology Co., LTD.
|
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
LG Electronics Mexicalli, S.A. DE C.V.
|
|
LG Electronics Mexicalli, S.A. DE C.V.
|
|
|
LG Electronics India Pvt. Ltd.
|
|
LG Electronics India Pvt. Ltd.
|
|
|
LG Electronics do Brasil Ltda.
|
|
LG Electronics do Brasil Ltda.
|
88
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(a)
|
Related parties, Continued
|
|
|
|
|
|
|
|
|
Classification
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
LG Electronics
Air-Conditioning
(Shandong) Co.,
Ltd.
|
|
LG Electronics
Air-Conditioning
(Shandong) Co.,
Ltd.
|
|
|
LG Electronics Almaty Kazakhstan
|
|
LG Electronics Almaty Kazakhstan
|
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
LG Electronics Singapore PTE LTD.
|
|
LG Electronics Singapore PTE LTD.
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
LG Electronics Japan, Inc.
|
|
LG Electronics Japan, Inc.
|
|
|
-
|
|
LG Electronics U.S.A., Inc.
|
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
P.T.LG Electronics Indonesia
|
|
P.T.LG Electronics Indonesia
|
|
|
Hientech (Tianjin) Co., Ltd.
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
Hi M Solutek
|
|
Hi M Solutek
|
|
|
LG Electronics Deutschland GmbH
|
|
LG Electronics Deutschland GmbH
|
|
|
LG Electronics Egypt S.A.E.
|
|
LG Electronics Egypt S.A.E.
|
|
|
-
|
|
LG Innotek Yantai Co., Ltd.
|
|
|
LG Electronics Alabama Inc.
|
|
LG Electronics Alabama Inc.
|
|
|
LG Electronics (China) Co., Ltd.
|
|
-
|
|
|
LG Electronics Ticaret A.S.
|
|
-
|
|
|
PT.LG Electronics Service Indonesia
|
|
-
|
|
|
LG Electronics Polska Sp. z o.o.
|
|
-
|
89
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(b)
|
Significant transactions such as sales of goods and purchases of raw material and outsourcing service and others, which occurred in the normal course of business with related parties for the years ended
December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
|
Sales
and others
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd. (*)
|
|
W
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
6
|
|
INVENIA Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
1,862
|
|
|
|
66,548
|
|
|
|
|
|
|
|
2,259
|
|
AVATEC Co., Ltd.
|
|
|
|
|
|
|
530
|
|
|
|
|
|
|
|
|
|
|
|
90,785
|
|
|
|
720
|
|
Paju Electric Glass Co., Ltd.
|
|
|
|
|
|
|
8,109
|
|
|
|
380,815
|
|
|
|
|
|
|
|
|
|
|
|
4,225
|
|
Shinbo Electric Co., Ltd. (*)
|
|
|
15,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
Narenanotech Corporation (*)
|
|
|
|
|
|
|
|
|
|
|
279
|
|
|
|
21,727
|
|
|
|
|
|
|
|
244
|
|
WooRee E&L Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
175
|
|
YAS Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
6,347
|
|
|
|
69,243
|
|
|
|
|
|
|
|
2,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,813
|
|
|
|
8,639
|
|
|
|
389,303
|
|
|
|
157,518
|
|
|
|
90,789
|
|
|
|
10,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,689,381
|
|
|
|
|
|
|
|
47,898
|
|
|
|
906,427
|
|
|
|
|
|
|
|
109,865
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
71,597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
163
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
205,934
|
|
|
|
|
|
|
|
|
|
|
|
8,892
|
|
|
|
|
|
|
|
198
|
|
90
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2017
|
|
|
|
Sales
and others
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
LG Electronics Nanjing New Technology Co., Ltd.
|
|
W
|
300,785
|
|
|
|
|
|
|
|
|
|
|
|
245
|
|
|
|
|
|
|
|
379
|
|
LG Electronics RUS, LLC
|
|
|
103,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
963
|
|
LG Electronics do Brasil Ltda.
|
|
|
228,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
430
|
|
LG Innotek Co., Ltd.
|
|
|
14,836
|
|
|
|
|
|
|
|
199,896
|
|
|
|
|
|
|
|
|
|
|
|
5,692
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
77,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
230,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Mexicalli, S.A. DE C.V.
|
|
|
319,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
186
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
847,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
985
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
13,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
164
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
318,978
|
|
|
|
|
|
|
|
1,532
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
1,287,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,926
|
|
LG Electronics Almaty Kazakhstan
|
|
|
14,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
LG Electronics
Air-Conditioning
(Shandong) Co.,
Ltd.
|
|
|
|
|
|
|
|
|
|
|
255
|
|
|
|
3,744
|
|
|
|
|
|
|
|
2,621
|
|
HiEntech Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,991
|
|
|
|
|
|
|
|
34,432
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,838
|
|
|
|
|
|
|
|
11,822
|
|
LG Electronics S.A. (Pty) Ltd.
|
|
|
14,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25
|
|
Others
|
|
|
857
|
|
|
|
|
|
|
|
3
|
|
|
|
14
|
|
|
|
|
|
|
|
7,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,731,532
|
|
|
|
|
|
|
|
200,154
|
|
|
|
360,702
|
|
|
|
|
|
|
|
68,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,436,726
|
|
|
|
8,639
|
|
|
|
637,355
|
|
|
|
1,424,647
|
|
|
|
90,789
|
|
|
|
188,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Represents transactions occurred prior to disposal of the entire investments.
|
91
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
|
Sales
and others
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
Joint Venture
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Suzhou Raken Technology Co., Ltd.(*1)
|
|
W
|
59,388
|
|
|
|
29,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
543
|
|
|
|
|
|
|
|
|
Associates and their subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.
|
|
W
|
2,469
|
|
|
|
|
|
|
|
50,372
|
|
|
|
|
|
|
|
7,569
|
|
|
|
255
|
|
New Optics USA, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
509
|
|
|
|
|
|
NEWOPTIX RS. SA DE CV
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVENIA Co., Ltd.
|
|
|
54
|
|
|
|
|
|
|
|
1,429
|
|
|
|
48,398
|
|
|
|
|
|
|
|
261
|
|
TLI Inc.(*2)
|
|
|
|
|
|
|
101
|
|
|
|
57,429
|
|
|
|
|
|
|
|
|
|
|
|
2,238
|
|
AVACO Co., Ltd.(*2)
|
|
|
|
|
|
|
128
|
|
|
|
703
|
|
|
|
31,299
|
|
|
|
|
|
|
|
1,373
|
|
AVATEC Co., Ltd.
|
|
|
|
|
|
|
265
|
|
|
|
|
|
|
|
|
|
|
|
70,196
|
|
|
|
1,027
|
|
Paju Electric Glass Co., Ltd.
|
|
|
|
|
|
|
21,030
|
|
|
|
453,463
|
|
|
|
|
|
|
|
|
|
|
|
3,674
|
|
Shinbo Electric Co., Ltd.
|
|
|
204,637
|
|
|
|
|
|
|
|
355,607
|
|
|
|
|
|
|
|
2,449
|
|
|
|
1,097
|
|
Narenanotech Corporation
|
|
|
17
|
|
|
|
|
|
|
|
513
|
|
|
|
24,821
|
|
|
|
|
|
|
|
909
|
|
WooRee E&L Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
YAS Co., Ltd.
|
|
|
44
|
|
|
|
|
|
|
|
2,076
|
|
|
|
80,836
|
|
|
|
|
|
|
|
1,758
|
|
LB Gemini New Growth Fund No. 16
|
|
|
|
|
|
|
8,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
207,254
|
|
|
|
29,918
|
|
|
|
921,592
|
|
|
|
185,354
|
|
|
|
80,723
|
|
|
|
12,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
|
Sales
and others
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Dividend
income
|
|
|
Purchase of
raw material
and others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
1,580,279
|
|
|
|
|
|
|
|
23,047
|
|
|
|
538,175
|
|
|
|
|
|
|
|
103,158
|
|
|
|
|
|
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics India Pvt. Ltd.
|
|
W
|
75,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
162,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141
|
|
LG Electronics Nanjing New Technology Co., Ltd.
|
|
|
229,773
|
|
|
|
|
|
|
|
|
|
|
|
293
|
|
|
|
|
|
|
|
1,876
|
|
LG Electronics RUS, LLC
|
|
|
127,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,993
|
|
LG Electronics do Brasil Ltda.
|
|
|
133,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,430
|
|
LG Innotek Co., Ltd.
|
|
|
11,503
|
|
|
|
|
|
|
|
209,878
|
|
|
|
|
|
|
|
|
|
|
|
9,873
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
47,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
370,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
LG Electronics Mexicalli, S.A. DE C.V.
|
|
|
210,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
709,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
895
|
|
LG Electronics Taiwan Taipei Co., Ltd.
|
|
|
11,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
|
93
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
|
Sales
and others
|
|
|
|
|
|
Purchase and others
|
|
|
|
|
Dividend
income
|
|
|
Purchase of raw
material and
others
|
|
|
Acquisition of
property, plant
and equipment
|
|
|
Outsourcing
fees
|
|
|
Other costs
|
|
LG Electronics Wroclaw Sp. z o.o.
|
|
W
|
290,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167,987
|
|
|
|
|
|
|
|
2,782
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
1,074,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,907
|
|
LG Electronics Almaty Kazakhstan
|
|
|
15,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
LG Electronics
Air-Conditioning
(Shandong) Co.,
Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,994
|
|
|
|
|
|
|
|
259
|
|
Hi Entech Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,365
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,587
|
|
|
|
|
|
|
|
10,613
|
|
LG Electronics S.A. (Pty) Ltd
|
|
|
21,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39
|
|
Others
|
|
|
2,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,496,300
|
|
|
|
|
|
|
|
209,878
|
|
|
|
201,861
|
|
|
|
|
|
|
|
64,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,343,221
|
|
|
|
59,820
|
|
|
|
1,154,517
|
|
|
|
925,390
|
|
|
|
80,723
|
|
|
|
180,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Represents transactions occurred prior to exchange of equity interests.
|
(*2)
|
Represents transactions occurred prior to disposal of the entire investments.
|
94
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(c)
|
Trade accounts and notes receivable and payable as of December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
Trade accounts and notes receivable
and others
|
|
|
Trade accounts and notes payable
and others
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Optics Ltd.(*)
|
|
W
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
8,616
|
|
INVENIA Co., Ltd.
|
|
|
2,375
|
|
|
|
833
|
|
|
|
18,662
|
|
|
|
6,515
|
|
AVATEC Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
2,949
|
|
|
|
5,190
|
|
Paju Electric Glass Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
60,141
|
|
|
|
71,685
|
|
Shinbo Electric Co., Ltd.(*)
|
|
|
|
|
|
|
85,011
|
|
|
|
|
|
|
|
64,693
|
|
Narenanotech Corporation(*)
|
|
|
|
|
|
|
300
|
|
|
|
|
|
|
|
2,826
|
|
WooRee E&L Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
61
|
|
|
|
|
|
YAS Co., Ltd.
|
|
|
375
|
|
|
|
833
|
|
|
|
6,474
|
|
|
|
3,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,750
|
|
|
|
87,977
|
|
|
|
88,287
|
|
|
|
163,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Entity that has significant influence over the Controlling Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics Inc.
|
|
W
|
550,335
|
|
|
|
357,577
|
|
|
|
257,071
|
|
|
|
160,309
|
|
|
|
|
|
|
Subsidiaries of the entity that has significant influence over the Controlling
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Electronics do Brasil Ltda.
|
|
W
|
19,091
|
|
|
|
14,299
|
|
|
|
10
|
|
|
|
27
|
|
LG Electronics RUS, LLC
|
|
|
25,102
|
|
|
|
47,686
|
|
|
|
80
|
|
|
|
|
|
LG Innotek Co., Ltd.
|
|
|
407
|
|
|
|
1,070
|
|
|
|
62,675
|
|
|
|
50,919
|
|
Qingdao LG Inspur Digital Communication Co., Ltd.
|
|
|
13,061
|
|
|
|
7,007
|
|
|
|
|
|
|
|
|
|
Inspur LG Digital Mobile Communications Co., Ltd.
|
|
|
55,278
|
|
|
|
72,963
|
|
|
|
|
|
|
|
5
|
|
95
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable
and others
|
|
|
Trade accounts and notes payable
and others
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
LG Electronics Mexicali, S.A. DE C.V.
|
|
W
|
29,440
|
|
|
|
11,959
|
|
|
|
|
|
|
|
13
|
|
LG Electronics Mlawa Sp. z o.o.
|
|
|
136,874
|
|
|
|
222,480
|
|
|
|
25
|
|
|
|
27
|
|
LG Electronics Nanjing New Technology Co., Ltd.
|
|
|
46,373
|
|
|
|
51,794
|
|
|
|
699
|
|
|
|
78
|
|
LG Electronics Reynosa, S.A. DE C.V.
|
|
|
137,413
|
|
|
|
93,873
|
|
|
|
82
|
|
|
|
259
|
|
LG Electronics Vietnam Haiphong Co., Ltd.
|
|
|
36,017
|
|
|
|
35,121
|
|
|
|
3,917
|
|
|
|
7
|
|
LG Hitachi Water Solutions Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
154,864
|
|
|
|
108,119
|
|
Hientech (Tianjin) Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
5,600
|
|
|
|
3,746
|
|
Hientech Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
6,679
|
|
|
|
4,080
|
|
Others
|
|
|
10,648
|
|
|
|
46,735
|
|
|
|
1,715
|
|
|
|
2,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
509,704
|
|
|
|
604,987
|
|
|
|
236,346
|
|
|
|
170,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,062,789
|
|
|
|
1,050,541
|
|
|
|
581,704
|
|
|
|
493,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Excluded from related parties due to disposal of equity investments during the year ended December 31, 2017.
|
96
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(d)
|
Details of significant cash transactions such as loans and collection of loans, which occurred in the normal course of business with related parties for the years ended December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(*1)
|
|
Associates
|
|
January 1,
2017
|
|
|
Increase
|
|
|
Decrease
|
|
|
December 31,
2017
|
|
New Optics Ltd.(*2)
|
|
W
|
1,000
|
|
|
|
|
|
|
|
125
|
|
|
|
875
|
|
INVENIA Co., Ltd.
|
|
|
833
|
|
|
|
2,000
|
|
|
|
458
|
|
|
|
2,375
|
|
Narenanotech Corporation(*2)
|
|
|
300
|
|
|
|
|
|
|
|
75
|
|
|
|
225
|
|
YAS Co., Ltd.
|
|
|
833
|
|
|
|
|
|
|
|
458
|
|
|
|
375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,966
|
|
|
|
2,000
|
|
|
|
1,116
|
|
|
|
3,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Loans are presented based on nominal amounts.
|
(*2)
|
Excluded from related parties due to disposal of equity investments during the year ended December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(*)
|
|
Associates
|
|
January 1,
2016
|
|
|
Increase
|
|
|
Decrease
|
|
|
December 31,
2016
|
|
New Optics Ltd.
|
|
W
|
|
|
|
|
1,000
|
|
|
|
|
|
|
|
1,000
|
|
INVENIA Co., Ltd.
|
|
|
1,000
|
|
|
|
|
|
|
|
167
|
|
|
|
833
|
|
Narenanotech Corporation
|
|
|
300
|
|
|
|
|
|
|
|
|
|
|
|
300
|
|
YAS Co., Ltd.
|
|
|
1,000
|
|
|
|
|
|
|
|
167
|
|
|
|
833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,300
|
|
|
|
1,000
|
|
|
|
334
|
|
|
|
2,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Loans are presented based on nominal amounts.
|
97
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(e)
|
Conglomerate Transactions
|
Transactions, trade accounts and notes receivable and payable, and
others between the Group and certain companies and their subsidiaries, which are included in LG Group, one of conglomerates according to the Monopoly Regulation and Fair Trade Act for the years ended December 31, 2017 and 2016 are as follows.
These entities are not affiliates according to
K-IFRS
No. 1024,
Related Party Disclosures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
For the year ended December 31, 2017
|
|
|
December 31, 2017
|
|
|
|
Sales
and others
|
|
|
Purchase and
others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
LG Chem Ltd.
|
|
W
|
16,903
|
|
|
|
917,851
|
|
|
|
8,660
|
|
|
|
135,222
|
|
LG Chem (Nanjing) Information & Electronics Materials Co., Ltd.
|
|
|
|
|
|
|
411,382
|
|
|
|
|
|
|
|
108,505
|
|
LG Chem (China) Investment Co., Ltd.
|
|
|
|
|
|
|
6,533
|
|
|
|
|
|
|
|
1,829
|
|
Serveone Co., Ltd.
|
|
|
677
|
|
|
|
1,540,870
|
|
|
|
21,565
|
|
|
|
535,404
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
|
|
|
|
121,883
|
|
|
|
|
|
|
|
46,115
|
|
Serveone Construction Co., Ltd.
|
|
|
|
|
|
|
81,859
|
|
|
|
|
|
|
|
23,056
|
|
Serveone (Guangzhou) Co., Ltd.
|
|
|
|
|
|
|
94,074
|
|
|
|
|
|
|
|
26,227
|
|
Serveone Vietnam Co., Ltd.
|
|
|
|
|
|
|
30,974
|
|
|
|
|
|
|
|
15,045
|
|
Silicon Works Co., Ltd.
|
|
|
|
|
|
|
624,127
|
|
|
|
|
|
|
|
120,031
|
|
LG CNS Co., Ltd.
|
|
|
323
|
|
|
|
205,290
|
|
|
|
|
|
|
|
74,633
|
|
LG CNS China Inc.
|
|
|
|
|
|
|
33,188
|
|
|
|
|
|
|
|
10,845
|
|
LG
N-Sys
Inc.
|
|
|
|
|
|
|
23,315
|
|
|
|
|
|
|
|
15,810
|
|
98
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
For the year ended December 31, 2017
|
|
|
December 31, 2017
|
|
|
|
Sales
and others
|
|
|
Purchase and
others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
LG International Corp.
|
|
|
16,962
|
|
|
|
110,620
|
|
|
|
5,637
|
|
|
|
25,965
|
|
LG International (America) Inc.
|
|
|
22,883
|
|
|
|
161,435
|
|
|
|
4,998
|
|
|
|
65,352
|
|
LG International (Japan) Ltd.
|
|
|
122,311
|
|
|
|
1,333,552
|
|
|
|
1,515
|
|
|
|
103,443
|
|
LG International (Singapore) Pte., Ltd.
|
|
|
571,387
|
|
|
|
3,575
|
|
|
|
100,042
|
|
|
|
2,706
|
|
LG International (Deutschland) GmbH
|
|
|
|
|
|
|
19,938
|
|
|
|
|
|
|
|
2,353
|
|
Pantos Logistics Co., Ltd.
|
|
|
41
|
|
|
|
95,285
|
|
|
|
|
|
|
|
10,597
|
|
Pantos Logistics (Shanghai) Co., Ltd.
|
|
|
|
|
|
|
20,736
|
|
|
|
|
|
|
|
3,512
|
|
Pantos Logistics (Shenzhen) Co., Ltd.
|
|
|
|
|
|
|
110,434
|
|
|
|
|
|
|
|
6,840
|
|
LG Management Development Institute
|
|
|
|
|
|
|
10,233
|
|
|
|
3,480
|
|
|
|
699
|
|
HS Ad Inc.
|
|
|
|
|
|
|
9,202
|
|
|
|
|
|
|
|
5,519
|
|
GllR America Inc.
|
|
|
|
|
|
|
76,244
|
|
|
|
|
|
|
|
8,503
|
|
LG Corp.
|
|
|
|
|
|
|
60,756
|
|
|
|
4,700
|
|
|
|
1,523
|
|
Others
|
|
|
2,829
|
|
|
|
89,211
|
|
|
|
1,948
|
|
|
|
27,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
754,316
|
|
|
|
6,192,567
|
|
|
|
152,545
|
|
|
|
1,377,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
For the year ended December 31, 2016
|
|
|
December 31, 2016
|
|
|
|
Sales
and others
|
|
|
Purchase and
others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
LG Chem Ltd.
|
|
W
|
65
|
|
|
|
941,355
|
|
|
|
30
|
|
|
|
106,790
|
|
LG Chem (Nanjing) Information & Electronics Materials Co., Ltd.
|
|
|
|
|
|
|
384,480
|
|
|
|
|
|
|
|
79,117
|
|
LG Chem (China) Investment Co.,Ltd.
|
|
|
|
|
|
|
718
|
|
|
|
|
|
|
|
734
|
|
Serveone Co., Ltd.
|
|
|
3,476
|
|
|
|
1,092,483
|
|
|
|
20,157
|
|
|
|
398,671
|
|
Serveone (Nanjing) Co., Ltd.
|
|
|
|
|
|
|
104,743
|
|
|
|
|
|
|
|
47,485
|
|
Serveone Construction Co., Ltd.
|
|
|
|
|
|
|
50,204
|
|
|
|
|
|
|
|
8,951
|
|
Serveone (Guangzhou) Co., Ltd.
|
|
|
|
|
|
|
90,973
|
|
|
|
|
|
|
|
19,719
|
|
Serveone Vietnam Co., Ltd.
|
|
|
|
|
|
|
4,562
|
|
|
|
|
|
|
|
587
|
|
Silicon Works Co., Ltd.
|
|
|
409
|
|
|
|
583,508
|
|
|
|
13
|
|
|
|
106,313
|
|
LG CNS Co., Ltd.
|
|
|
550
|
|
|
|
183,181
|
|
|
|
|
|
|
|
89,152
|
|
LG CNS China Inc.
|
|
|
5
|
|
|
|
39,730
|
|
|
|
|
|
|
|
8,597
|
|
LG
N-Sys
Inc.
|
|
|
|
|
|
|
13,618
|
|
|
|
|
|
|
|
9,259
|
|
LG International Corp.
|
|
|
17,706
|
|
|
|
86,008
|
|
|
|
16,951
|
|
|
|
16,930
|
|
LG International (America) Inc.
|
|
|
20,940
|
|
|
|
48,551
|
|
|
|
3,594
|
|
|
|
20,449
|
|
LG International (Japan) Ltd.
|
|
|
139,324
|
|
|
|
842,483
|
|
|
|
14,603
|
|
|
|
125,689
|
|
LG International (Singapore) Pte., Ltd.
|
|
|
425,025
|
|
|
|
1,810
|
|
|
|
31,071
|
|
|
|
|
|
LG International (Deutschland) GmbH
|
|
|
509
|
|
|
|
8,848
|
|
|
|
|
|
|
|
4,935
|
|
Pantos Logistics Co., Ltd.
|
|
|
20
|
|
|
|
72,722
|
|
|
|
|
|
|
|
8,183
|
|
Pantos Logistics (Shanghai) Co., Ltd.
|
|
|
|
|
|
|
21,249
|
|
|
|
|
|
|
|
2,251
|
|
Pantos Logistics (Shenzhen) Co., Ltd.
|
|
|
|
|
|
|
94,972
|
|
|
|
|
|
|
|
8,577
|
|
LG Management Development Institute
|
|
|
|
|
|
|
9,720
|
|
|
|
3,480
|
|
|
|
376
|
|
100
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
For the year ended December 31, 2016
|
|
|
December 31, 2016
|
|
|
|
Sales
and others
|
|
|
Purchase and
others
|
|
|
Trade accounts and
notes receivable
and others
|
|
|
Trade accounts and
notes payable and
others
|
|
HS Ad Inc.
|
|
W
|
|
|
|
|
5,219
|
|
|
|
|
|
|
|
1,465
|
|
LG Corp.
|
|
|
|
|
|
|
59,038
|
|
|
|
7,937
|
|
|
|
|
|
Others
|
|
|
14,386
|
|
|
|
56,984
|
|
|
|
3,078
|
|
|
|
4,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
622,415
|
|
|
|
4,797,159
|
|
|
|
100,914
|
|
|
|
1,068,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
LG DISPLAY CO., LTD. AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the years ended December 31, 2017 and 2016
28.
|
Related Parties and Others, Continued
|
|
(f)
|
Key management personnel compensation
|
Compensation costs of key management for the years ended
December 31, 2017 and 2016 are as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Short-term benefits
|
|
W
|
3,724
|
|
|
|
2,323
|
|
Expenses related to the defined benefit plan
|
|
|
488
|
|
|
|
897
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,212
|
|
|
|
3,220
|
|
|
|
|
|
|
|
|
|
|
Key management refers to the registered directors who have significant control and responsibilities over the
Controlling Companys operations and business.
29.
|
Supplemental Cash Flow Information
|
Supplemental cash flow information for the years
ended December 31, 2017 and 2016 is as follows:
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
Non-cash
investing and financing activities:
|
|
|
|
|
|
|
|
|
Changes in other accounts payable arising from the purchase of property, plant and
equipment
|
|
W
|
632,355
|
|
|
|
809,406
|
|
102