Net Income

12 Months Ended

Dec. 31, 2021

Analysis Of Income And Expense [Abstract]

Net Income and Other Comprehensive Income (Loss)

32.	NET INCOME

Other income and expenses

	Year Ended December 31
	2019			2020			2021
	NT$			NT$			NT$
	(In Millions)
Gain (loss) on disposal of property, plant and equipment	$	(38	)	$	1,428		$	(3	)
Impairment loss on property, plant and equipment		(93	)		—			—
Impairment loss on right-of-use assets		—			—			(420	)
Gain on disposal of investment properties, net		—			151			—
Reversal of impairment loss on investment properties		57			27			83
Loss on disposal of intangible assets		—			(2	)		—
Impairment loss on intangible assets		(9	)		(9	)		(29	)
Impairment loss on other assets		(44	)		—			—
	$	(127	)	$	1,595		$	(369	)

Other income

	Year Ended December 31
	2019		2020		2021
	NT$		NT$		NT$
	(In Millions)
Dividend income	$	296	$	246	$	154
Rental income		85		70		70
Others		150		154		154
	$	531	$	470	$	378

Other gains and losses

	Year Ended December 31
	2019			2020			2021
	NT$			NT$			NT$
	(In Millions)
Valuation gain (loss) on financial assets and liabilities at fair value through profit or loss, net	$	(38	)	$	(99	)	$	243
Foreign currency exchange gain or loss, net		16			(47	)		230
Gain on disposal of investments accounted for using equity method, net		151			10			4
Gain (loss) on disposal of financial instruments, net		4			(2	)		—
Others		(49	)		(21	)		(16	)
	$	84		$	(159	)	$	461

Interest expenses

	Year Ended December 31
	2019		2020		2021
	NT$		NT$		NT$
	(In Millions)
Interest on bonds payable	$	—	$	46	$	132
Interest on lease liabilities		85		80		69
Interest paid to financial institutions		17		79		16
Others		2		1		1
	$	104	$	206	$	218

Impairment loss (reversal of impairment loss)

	Year Ended December 31
	2019			2020			2021
	NT$			NT$			NT$
	(In Millions)
Contract assets	$	(2	)	$	1		$	—
Trade notes and accounts receivable	$	(54	)	$	49		$	123
Other receivables	$	(69	)	$	(5	)	$	20
Inventories	$	475		$	1,161		$	207
Property, plant and equipment	$	93		$	—		$	—
Right-of-use assets	$	—		$	—		$	420
Investment properties	$	(57	)	$	(27	)	$	(83	)
Intangible assets	$	9		$	9		$	29
Other assets	$	44		$	—		$	—

Depreciation and amortization expenses

	Year Ended December 31
	2019		2020		2021
	NT$		NT$		NT$
	(In Millions)
Property, plant and equipment	$	26,930	$	26,989	$	27,805
Right-of-use assets		3,968		3,931		3,985
Investment properties		25		22		42
Intangible assets		4,253		5,424		6,569
Incremental costs of obtaining contracts		1,173		772		815
Total depreciation and amortization expenses	$	36,349	$	37,138	$	39,216
Depreciation expenses summarized by functions
Operating costs	$	28,957	$	29,056	$	30,021
Operating expenses		1,966		1,886		1,811
	$	30,923	$	30,942	$	31,832
Amortization expenses summarized by functions
Operating costs	$	5,196	$	5,971	$	7,172
Marketing expenses		96		100		93
General and administrative expenses		95		82		75
Research and development expenses		39		43		44
	$	5,426	$	6,196	$	7,384

Employee benefit expenses

	Year Ended December 31
	2019		2020		2021
	NT$		NT$		NT$
	(In Millions)
Post-employment benefit
Defined contribution plans	$	654	$	708	$	784
Defined benefit plans		2,859		2,001		1,216
		3,513		2,709		2,000
Share-based payment
Equity-settled share-based payment		2		8		19
Other employee benefit		42,640		42,246		42,654
Total employee benefit expenses	$	46,155	$	44,963	$	44,673
Summary by functions
Operating costs	$	23,587	$	23,005	$	22,734
Operating expenses		22,568		21,958		21,939
	$	46,155	$	44,963	$	44,673

Chunghwa distributes employees’ compensation at the rates from 1.7% to 4.3% and remuneration to directors not higher than 0.17%, respectively, of pre-tax income. As of December 31, 2021, the payables of the employees’ compensation and the remuneration to directors were $1,429 million and $39 million, respectively. Such amounts have been approved by the Chunghwa’s Board of Directors on February 23, 2022 and will be reported to the stockholders in their meeting planned to be held on May 27, 2022.

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the difference is recorded as a change in accounting estimate.

The compensation to the employees and remuneration to the directors of 2019 and 2020 approved by the Board of Directors on February 26, 2020 and February 23, 2021, respectively, were as follows:

	2019		2020
	Cash		Cash
	NT$		NT$
	(In Millions)
Compensation distributed to the employees	$	1,126	$	1,202
Remuneration paid to the directors		35		36

There was no difference between the initial accrual amounts and the amounts proposed in the Board of Directors in 2020 and 2021 of the aforementioned compensation to employees and the remuneration to directors.