31.

Cash Generated from Operations

Cash flows from operating activities for the years ended December 31, 2015, 2016 and 2017, are as follows:


(In millions of Korean won)	2015			2016			2017
1. Profit for the year	￦	624,685		￦	795,117		￦	546,341
2. Adjustments to reconcile net income
Income tax expense		346,146			328,314			270,656
Interest income		(161,123	)		(130,066	)		(108,639	)
Interest expense		445,814			337,219			302,464
Dividends income		(11,371	)		(3,926	)		(4,785	)
Depreciation		3,030,821			2,821,779			2,802,531
Amortization of intangible assets		609,185			599,721			635,150
Provision for severance benefits		217,787			217,255			218,966
Impairment losses on trade receivables		161,448			92,711			45,704
Share of net profit or loss of associates and joint ventures		(5,562	)		(2,547	)		15,480
Loss(gain) on disposal of associates and joint ventures		(4,848	)		(1,450	)		979
Impairment loss of associates and joint ventures		—			17,128			3,662
Gain on disposal of subsidiaries		(256,230	)		—			—
Loss on disposal of property, plant and equipment and investment in properties		129,466			74,913			150,293
Loss on disposal of intangible assets		33,978			7,703			4,271
Loss on impairment of intangible assets		292,345			135,264			116,095
Loss on foreign currency translation		164,374			109,784			(213,341	)
Loss(gain) on valuation of derivatives		(306,538	)		(117,181	)		268,094
Impairment losses on available-for-sale financial assets		1,805			966			9
Gain on disposal of available-for-sale financial assets		(131,041	)		(22,695	)		(89,598	)
Others		24,140			64,863			(251,193	)
3. Changes in operating assets and liabilities
Decrease(increase) in trade receivables		112,674			252,196			(303,340	)
Increase in other receivables		(21,749	)		(770,893	)		(346,013	)
Decrease(increase) in other current assets		(19,701	)		48,549			11,792
Increase in other non-current assets		(137,532	)		(51,765	)		(43,790	)
Decrease(increase) in inventories		(270,343	)		167,873			(205,403	)
Increase(decrease) in trade payables		81,295			(114,838	)		162,110
Increase(decrease) in other payables		(48,680	)		705,807			214,689
Increase(decrease) in other current liabilities		(9,452	)		37,798			288,553
Increase in other non-current liabilities		119,836			30,762			174,618
Decrease in provisions		(8,902	)		(12,583	)		(12,574	)
Decrease in deferred revenue		(82,582	)		(69,179	)		(13,086	)
Increase in plan assets		(223,194	)		(224,244	)		(203,420	)
Payment of severance benefits		(117,691	)		(121,835	)		(118,391	)

4. Cash generated from operations (1+2+3)	￦	4,579,260		￦	5,202,520			4,318,884

The Group made agreements with securitization specialty companies and disposed of its trade receivables related to handset sales (Note 19). Cash flows from the disposals are presented in cash generated from operations.

Significant transactions not affecting cash flows for the years ended December 31, 2015, 2016 and 2017, are as follows:


(In millions of Korean won)	2015			2016			2017
Reclassification of the current portion of debentures	￦	1,551,300		￦	1,617,175		￦	1,416,066
Reclassification of construction-in-progress to property, plant and equipment		2,373,023			2,212,324			2,686,591
Reclassification of accounts payable from property, plant and equipment		78,663			91,407			225,601
Reclassification of accounts payable from intangible assets		(170,870	)		668,564			(227,108	)
Reclassification of payable from defined benefit liability		1,675			5,746			36,209
Reclassification of payable from plan assets		13,717			(9,731	)		43,035