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Lease Arrangements
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Lease Arrangements
16.
LEASE ARRANGEMENTS
2018
The Company’s ma
j
or operating leases are arrangements on several parcels of land, machinery and equipment and office premises.
The Company expensed the lease payments as follows:
 
   
Year Ended
December 31,
2018
 
   
NT$
 
   
(In Millions)
 
  
Minimum lease payments
  $4,243.1 
   
 
 
 
Future minimum lease payments under the above
non-cancellable
operating leases are as follows:
 
   
December 31,
2018
 
   
NT$
 
   
(In Millions)
 
  
Not later than 1 year
  $5,824.1 
Later than 1 year and not later than 5 years
   5,834.9 
Later than 5 years
   9,190.6 
   
 
 
 
  
   $20,849.6 
   
 
 
 
 
2019 and 2020


a.
Right-of-use
assets

 
  
December 31,

2019
 
  
December 31,

2020
 
 
  
NT$
 
  
NT$
 
 
  
(In Millions)
 
  
(In Millions)
 
   
Carrying amounts
  
   
  
   
   
Land
  
$
14,064.0
 
  
$
25,141.9
 
Buildings
  
 
2,351.8
 
  
 
2,544.8
 
Machinery and equipment
  
 
775.8
 
  
 
—
 
Office equipment
  
 
40.8
 
  
 
41.8
 
 
  
 
 
 
  
 
 
 
   
 
  
$
17,232.4
 
  
$
27,728.5
 
 
  
 
 
 
  
 
 
 
  
 
  
Years Ended December 31
 
 
  
2019
 
  
2020
 
 
  
NT$
 
  
NT$
 
 
  
(In Millions)
 
  
(In Millions)
 
   
Additions to
right-of-use
assets
  
$
1,033.0
 
  
$
13,481.2
 
 
  
 
 
 
  
 
 
 
   
Depreciation of
right-of-use
assets
  
   
  
   
Land
  
$
957.1
 
  
$
1,312.9
 
Buildings
  
 
458.8
 
  
 
569.5
 
Machinery and equipment
  
 
1,184.4
 
  
 
775.8
 
Office equipment
  
 
22.4
 
  
 
23.4
 
 
  
 
 
 
  
 
 
 
   
 
  
$
2,622.7
 
  
$
2,681.6
 
 
  
 
 
 
  
 
 
 
   
Income from subleasing
right-of-use
assets (classified under other operating income and expenses, net)
  
$
55.0
 
  
$
79.6
 
 
  
 
 
 
  
 
 
 
 
 b.
Lease liabilities
 
   
December 31,

2019
   
December 31,

2020
 
   
NT$
   
NT$
 
   
(In Millions)
   
(In Millions)
 
   
Carrying amounts
          
   
Current portion (classified under accrued expenses and other current liabilities)
  $2,275.1   $1,828.0 
Noncurrent portion
   15,041.8    20,560.6 
   
 
 
   
 
 
 
   
   $17,316.9   $22,388.6 
   
 
 
   
 
 
 

Ranges of discount rates for lease liabilities are as follows:


  
December 31,
2019
 
 
December 31,
2020
 
   
Land
  
 
0.67%-2.14%
 
 
 
0.48%-2.14%
 
Buildings
  
 
0.67%-3.88%
 
 
 
0.54%-3.88%
 
Machinery and equipment
  
 
3.24%
 
 
 
—
 
Office equipment
  
 
0.64%-3.88%
 
 
 
0.28%-3.88%
 
 
c.   Material terms of
right-of-use
assets
 
The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.
 
The Company leases machinery and equipment for use in operation with lease terms of 2 years. The Company has purchase options to acquire leasehold machinery and equipment at the end of the lease terms. As of September 30, 2020, the aforementioned lease contract has been expired.
 
d.  Subleases
 
The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 6 years.
 
The maturity analysis of lease payments receivable under operating subleases is as follows:
 
 
 
 
 
 
 
 
  
December 31,

2019
 
 
December 31,

2020
 
 
  
NT$
 
 
NT$
 
 
  
(In Millions)
 
 
(In Millions)
 
   
Year 1
  
$
58.6
 
 
$
144.1
 
Year 2
  
 
1.9
 
 
 
—
 
 
  
 
 
 
 
 
 
 
   
 
  
$
60.5
 
 
$
144.1
 
 
  
 
 
 
 
 
 
 
 
e.   Other lease information
 
  
   
 
   
 
  
Years Ended December 31
 
 
  
2019
 
 
2020
 
 
  
NT$
 
 
NT$
 
 
  
(In Millions)
 
 
(In Millions)
 
   
Expenses relating to short-term leases
  
$
5,007.1
 
 
$
3,153.5
 
 
  
 
 
 
 
 
 
 
Expenses relating to
low-value
asset leases
  
$
0.5
 
 
$
0.3
 
 
  
 
 
 
 
 
 
 
Expenses relating to variable lease payments not included in the measurement of lease liabilities
  
$
195.1
 
 
$
  257.0
 
 
  
 
 
 
 
 
 
 
  
 
  
Years Ended December 31
 
 
  
2019
 
 
2020
 
 
  
NT$
 
 
NT$
 
 
  
(In Millions)
 
 
(In Millions)
 
   
Total cash outflow for leases
  
$
7,724.4
 
 
$
   6,354.6