Lease Arrangements

12 Months Ended

Dec. 31, 2022

16.	LEASE ARRANGEMENTS

Right-of-use assets


	December 31, 2021		December 31, 2022
	NT$		NT$
	(In Millions)		(In Millions)

Carrying amounts

Land	$	29,778.6	$	38,525.8
Buildings		2,918.1		3,356.7
Machinery and equipment		3.4		2.9
Office equipment		34.3		28.6


	$	32,734.4	$	41,914.0


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)

Additions to right-of-use assets	$	13,481.2	$	7,769.8	$	12,610.7


Depreciation of right-of-use assets
Land	$	1,312.9	$	1,825.7	$	2,119.8
Buildings		569.5		707.9		928.7
Machinery and equipment		775.8		0.5		0.9
Office equipment		23.4		22.1		23.6


	$	2,681.6	$	2,556.2	$	3,073.0

Lease liabilities


	December 31, 2021		December 31, 2022
	NT$		NT$
	(In Millions)		(In Millions)

Carrying amounts

Current portion (classified under accrued expenses and other current liabilities)	$	2,176.5	$	2,603.5
Noncurrent portion		20,764.2		29,764.1


	$	22,940.7	$	32,367.6

Ranges of discount rates for lease liabilities are as follows:


	December 31, 2021	December 31, 2022

Land	0.39%-2.14%		0.39%-2.30%
Buildings	0.39%-3.88%		0.39%-5.63%
Machinery and equipment	0.71%		0.71%
Office equipment	0.28%-3.88%		0.28%-4.71%

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.

Other lease information


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)

Expenses relating to short-term leases	$	3,153.5	$	5,250.3	$	4,731.1


Total cash outflow for leases	$	6,354.6	$	7,510.8	$	7,618.3