14.

PROPERTY, PLANT AND EQUIPMENT

The carrying amounts of each class of property, plant and equipment were as follows:

	December 31
	2016		2017
	NT$		NT$		US$ (Note 4)

Land	$	3,365,013	$	3,258,518	$	109,937
Buildings and improvements		58,028,631		58,272,864		1,966,021
Machinery and equipment		72,700,762		66,185,198		2,232,969
Other equipment		2,089,581		1,588,113		53,580
Construction in progress and machinery in transit		7,696,254		5,863,713		197,831

	$	143,880,241	$	135,168,406	$	4,560,338

For the year ended December 31, 2015

	Land		Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$		NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2015	$	3,348,018	$	86,725,254		$	233,669,627		$	7,182,574		$	5,862,217		$	336,787,690
Additions				132,584			553,496			401,417			27,193,324			28,280,821
Disposals		-		(405,040	)		(8,041,933	)		(232,555	)		(20,711	)		(8,700,239	)
Reclassification		-		8,579,472			18,054,712			389,783			(26,893,158	)		130,809
Effect of foreign currency exchange differences		33,282		(584,338	)		(952,295	)		(18,811	)		256,088			(1,266,074	)

Balance at December 31, 2015	$	3,381,300	$	94,447,932		$	243,283,607		$	7,722,408		$	6,397,760		$	355,233,007

Accumulated depreciation and impairment

Balance at January 1, 2015	$	-	$	30,329,544		$	149,497,980		$	5,365,887		$	7,164		$	185,200,575
Depreciation expense		-		4,790,646			23,372,408			775,716			-			28,938,770
Impairment losses recognized		-		120,424			31,116			-			106,589			258,129
Disposals		-		(308,895	)		(7,838,937	)		(224,509	)		-			(8,372,341	)
Reclassification		-		5,704			(11,920	)		3,008			-			(3,208	)
Effect of foreign currency exchange differences		-		(290,545	)		(482,349	)		(12,688	)		(411	)		(785,993	)

Balance at December 31, 2015	$	-	$	34,646,878		$	164,568,298		$	5,907,414		$	113,342		$	205,235,932

For the year ended December 31, 2016

	Land			Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2016	$	3,381,300		$	94,447,932		$	243,283,607		$	7,722,408		$	6,397,760		$	355,233,007
Additions		-			22,341			94,480			470,901			27,093,140			27,680,862
Disposals		-			(684,698	)		(5,956,179	)		(159,822	)		(268,782	)		(7,069,481	)
Reclassification		-			5,110,102			19,661,732			691,276			(25,463,285	)		(175	)
Acquisitions through business combinations		-			-			-			1,159			-			1,159
Effect of foreign currency exchange differences		(16,287	)		(2,637,502	)		(8,882,884	)		(251,261	)		(45,291	)		(11,833,225	)

Balance at December 31, 2016	$	3,365,013		$	96,258,175		$	248,200,756		$	8,474,661		$	7,713,542		$	364,012,147

Accumulated depreciation and impairment

Balance at January 1, 2016	$	-		$	34,646,878		$	164,568,298		$	5,907,414		$	113,342		$	205,235,932
Depreciation expense		-			5,114,263			22,983,290			864,061			-			28,961,614
Impairment losses recognized		-			620			876,123			5,564			5,924			888,231
Disposals		-			(449,198	)		(5,544,489	)		(151,875	)		(100,049	)		(6,245,611	)
Reclassification		-			(5,123	)		9,660			(4,537	)		-			-
Acquisitions through business combinations		-			-			-			824			-			824
Effect of foreign currency exchange differences		-			(1,077,896	)		(7,392,888	)		(236,371	)		(1,929	)		(8,709,084	)

Balance at December 31, 2016	$	-		$	38,229,544		$	175,499,994		$	6,385,080		$	17,288		$	220,131,906

For the year ended December 31, 2017

	Land			Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Cost

Balance at January 1, 2017	$	3,365,013		$	96,258,175		$	248,200,756		$	8,474,661		$	7,713,542		$	364,012,147
Additions		-			350,434			102,301			130,659			23,094,288			23,677,682
Disposals		-			(609,294	)		(8,449,949	)		(763,937	)		(73,248	)		(9,896,428	)
Reclassification		(35,965	)		6,483,392			18,331,738			174,947			(25,428,464	)		(474,352	)
Effect of foreign currency exchange differences		(70,530	)		(2,294,779	)		(4,986,843	)		(204,250	)		557,595			(6,998,807	)

Balance at December 31, 2017	$	3,258,518		$	100,187,928		$	253,198,003		$	7,812,080		$	5,863,713		$	370,320,242

Accumulated depreciation and impairment

Balance at January 1, 2017	$	-		$	38,229,544		$	175,499,994		$	6,385,080		$	17,288		$	220,131,906
Depreciation expense		-			5,156,558			22,722,307			746,422			-			28,625,287
Impairment losses recognized		-			2,310			286,880			368			-			289,558
Disposals		-			(478,903	)		(7,540,654	)		(720,319	)		(17,288	)		(8,757,164	)
Reclassification		-			(210,080	)		34,452			(24,117	)		-			(199,745	)
Effect of foreign currency exchange differences		-			(784,365	)		(3,990,174	)		(163,467	)		-			(4,938,006	)

Balance at December 31, 2017	$	-		$	41,915,064		$	187,012,805		$	6,223,967		$	-		$	235,151,836

	Land			Buildings and improvements			Machinery and equipment			Other equipment			Construction in progress and machinery in transit			Total
	US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)

Cost

Balance at January 1,2017	$	113,529		$	3,247,577		$	8,373,845		$	285,920		$	260,241		$	12,281,112
Additions		-			11,823			3,451			4,408			779,160			798,842
Disposals		-			(20,556	)		(285,086	)		(25,774	)		(2,471	)		(333,887	)
Reclassification		(1,212	)		218,738			618,480			5,902			(857,911	)		(16,003	)
Effect of foreign currency exchange differences		(2,380	)		(77,422	)		(168,247	)		(6,891	)		18,812			(236,128	)

Balance at December 31, 2017	$	109,937		$	3,380,160		$	8,542,443		$	263,565		$	197,831		$	12,493,936

Accumulated depreciation and impairment

Balance at January 1, 2017	$	-		$	1,289,796		$	5,921,052		$	215,421		$	583		$	7,426,852
Depreciation expense		-			173,973			766,610			25,183			-			965,766
Impairment losses recognized		-			78			9,679			12			-			9,769
Disposals		-			(16,157	)		(254,408	)		(24,302	)		(583	)		(295,450	)
Reclassification		-			(7,088	)		1,162			(814	)		-			(6,740	)
Effect of foreign currency exchange differences		-			(26,463	)		(134,621	)		(5,515	)		-			(166,599	)

Balance at December 31,2017	$	-		$	1,414,139		$	6,309,474		$	209,985		$	-		$	7,933,598

Due to the Group’s future operation plans and capacity evaluation or production demands in segment of packaging and testing, the Group believed that a portion of property, plant and equipment does not qualify for the production needs and therefore recognized an impairment loss of NT$258,129 thousand, NT$888,231 thousand and NT$289,558 thousand (US$9,769 thousand) under the line item of other operating income and expenses in the consolidated statements of comprehensive income for the years ended December 31, 2015, 2016 and 2017, respectively. The recoverable amount of the impaired property, plant and equipment is determined on the basis of its value in use and the Group expects to derive zero future cash flows from these assets.

Each class of property, plant and equipment was depreciated on a straight-line basis over the following useful lives:

Buildings and improvements
Main plant buildings		10-40 years
Cleanrooms		10-20 years
Others		3-20 years
Machinery and equipment		2-10 years
Other equipment		2-20 years

The capitalized borrowing costs for the years ended December 31, 2015, 2016 and 2017 are disclosed in Note 24