1934 Act Registration No. 1-14700
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2013
Taiwan Semiconductor Manufacturing Company Ltd.
(Translation of Registrants Name Into English)
No. 8, Li-Hsin Rd. 6,
Hsinchu Science Park,
Taiwan
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x | Form 40-F ¨ |
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ¨ | No x |
(If Yes is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82: .)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Taiwan Semiconductor Manufacturing Company Ltd. | ||||||
Date: November 15, 2013 |
By | /s/ Lora Ho | ||||
Lora Ho | ||||||
Senior Vice President & Chief Financial Officer |
Taiwan Semiconductor Manufacturing
Company Limited and Subsidiaries
Consolidated Financial Statements for the
Nine months ended September 30, 2013 and 2012 and
Independent Accountants Review Report
INDEPENDENT ACCOUNTANTS REVIEW REPORT
The Board of Directors and Shareholders
Taiwan Semiconductor Manufacturing Company Limited
We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and subsidiaries as of September 30, 2013, December 31, 2012, September 30, 2012 and January 1, 2012 and the related consolidated statements of comprehensive income for the three months ended September 30, 2013 and 2012 and for the nine months ended September 30, 2013 and 2012, as well as the consolidated statements of changes in equity and cash flows for the nine months ended September 30, 2013 and 2012. These consolidated financial statements are the responsibility of the Companys management. Our responsibility is to issue a report on these consolidated financial statements based on our reviews.
We conducted our reviews in accordance with Statement on Auditing Standards No. 36, Review of Financial Statements, issued by the Auditing Standards Committee of the Accounting Research and Development Foundation of the Republic of China. A review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standard 1, First-time adoption of International Financial Reporting Standards, and International Accounting Standard 34, Interim Financial Reporting, endorsed by the Financial Supervisory Commission of the Republic of China.
November 12, 2013
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.
For the convenience of readers, the accountants review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language accountants review report and consolidated financial statements shall prevail.
- 1 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
The accompanying notes are an integral part of the consolidated financial statements.
- 2 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
NET REVENUE (Notes 5, 26, 37 and 42) |
$ | 162,577,034 | 100 | $ | 141,499,253 | 100 | $ | 451,218,350 | 100 | $ | 375,300,415 | 100 | ||||||||||||||||||||
COST OF REVENUE (Notes 12, 33 and 37) |
83,636,464 | 51 | 72,344,501 | 51 | 235,092,710 | 52 | 193,133,859 | 52 | ||||||||||||||||||||||||
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GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES |
78,940,570 | 49 | 69,154,752 | 49 | 216,125,640 | 48 | 182,166,556 | 48 | ||||||||||||||||||||||||
REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES |
(49,759 | ) | | 10,381 | | (42,833 | ) | | (129,569 | ) | | |||||||||||||||||||||
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GROSS PROFIT |
78,890,811 | 49 | 69,165,133 | 49 | 216,082,807 | 48 | 182,036,987 | 48 | ||||||||||||||||||||||||
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OPERATING EXPENSES (Notes 5, 33 and 37) |
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Research and development |
13,357,075 | 8 | 10,656,855 | 8 | 35,949,931 | 8 | 29,883,097 | 8 | ||||||||||||||||||||||||
General and administrative |
4,738,276 | 3 | 4,478,517 | 3 | 15,119,366 | 3 | 13,500,459 | 3 | ||||||||||||||||||||||||
Marketing |
1,164,881 | 1 | 1,234,982 | 1 | 3,359,373 | 1 | 3,440,158 | 1 | ||||||||||||||||||||||||
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Total operating expenses |
19,260,232 | 12 | 16,370,354 | 12 | 54,428,670 | 12 | 46,823,714 | 12 | ||||||||||||||||||||||||
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OTHER OPERATING INCOME AND EXPENSES, NET (Notes 27 and 33) |
(12,525 | ) | | 3,199 | | 21,008 | | (425,894 | ) | | ||||||||||||||||||||||
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INCOME FROM OPERATIONS (Note 42) |
59,618,054 | 37 | 52,797,978 | 37 | 161,675,145 | 36 | 134,787,379 | 36 | ||||||||||||||||||||||||
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NON-OPERATING INCOME AND EXPENSES |
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Share of profits of associates and joint venture (Note 14) |
1,113,243 | 1 | 712,186 | 1 | 2,826,900 | 1 | 1,338,261 | | ||||||||||||||||||||||||
Other income (Note 28) |
433,395 | | 353,132 | | 1,788,780 | | 1,364,809 | | ||||||||||||||||||||||||
Foreign exchange gain (loss), net |
(314,948 | ) | | (157,185 | ) | | 133,136 | | 208,125 | | ||||||||||||||||||||||
Finance costs (Notes 10 and 29) |
(732,326 | ) | | (270,379 | ) | | (1,861,664 | ) | | (685,418 | ) | | ||||||||||||||||||||
Other gains and losses (Note 30) |
(767,534 | ) | (1 | ) | 326,609 | | 552,180 | | (1,620,830 | ) | | |||||||||||||||||||||
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Total non-operating income and expenses |
(268,170 | ) | | 964,363 | 1 | 3,439,332 | 1 | 604,947 | | |||||||||||||||||||||||
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INCOME BEFORE INCOME TAX |
59,349,884 | 37 | 53,762,341 | 38 | 165,114,477 | 37 | 135,392,326 | 36 | ||||||||||||||||||||||||
INCOME TAX EXPENSE (Note 31) |
7,415,132 | 5 | 4,340,047 | 3 | 21,882,679 | 5 | 10,787,480 | 3 | ||||||||||||||||||||||||
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NET INCOME |
51,934,752 | 32 | 49,422,294 | 35 | 143,231,798 | 32 | 124,604,846 | 33 | ||||||||||||||||||||||||
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OTHER COMPREHENSIVE INCOME (LOSS) (Notes 10, 14, 24 and 31) |
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Exchange differences arising on translation of foreign operations |
(1,740,459 | ) | (1 | ) | (2,239,717 | ) | (2 | ) | 2,335,435 | 1 | (3,627,600 | ) | (1 | ) | ||||||||||||||||||
Changes in fair value of available-for-sale financial assets |
7,685,269 | 5 | (112,534 | ) | | 15,180,754 | 3 | 1,710,289 | 1 | |||||||||||||||||||||||
Cash flow hedges |
| | 28,258 | | | | 28,421 | | ||||||||||||||||||||||||
Share of other comprehensive income of associates and joint venture |
37,947 | | 48,074 | | (18,924 | ) | | 68,461 | | |||||||||||||||||||||||
Income tax benefit (expense) related to components of other comprehensive income |
10,274 | | (24,497 | ) | | 53,484 | | (333,426 | ) | | ||||||||||||||||||||||
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Other comprehensive income (loss) for the period, net of income tax |
5,993,031 | 4 | (2,300,416 | ) | (2 | ) | 17,550,749 | 4 | (2,153,855 | ) | | |||||||||||||||||||||
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
$ | 57,927,783 | 36 | $ | 47,121,878 | 33 | $ | 160,782,547 | 36 | $ | 122,450,991 | 33 | ||||||||||||||||||||
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NET INCOME (LOSS) ATTRIBUTABLE TO: |
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Shareholders of the parent |
$ | 51,951,943 | 32 | $ | 49,379,633 | 35 | $ | 143,336,544 | 32 | $ | 124,714,606 | 33 | ||||||||||||||||||||
Noncontrolling interests |
(17,191 | ) | | 42,661 | | (104,746 | ) | | (109,760 | ) | | |||||||||||||||||||||
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$ | 51,934,752 | 32 | $ | 49,422,294 | 35 | $ | 143,231,798 | 32 | $ | 124,604,846 | 33 | |||||||||||||||||||||
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TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: |
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Shareholders of the parent |
$ | 57,951,263 | 36 | $ | 47,092,066 | 33 | $ | 160,893,697 | 36 | $ | 122,537,025 | 33 | ||||||||||||||||||||
Noncontrolling interests |
(23,480 | ) | | 29,812 | | (111,150 | ) | | (86,034 | ) | | |||||||||||||||||||||
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$ | 57,927,783 | 36 | $ | 47,121,878 | 33 | $ | 160,782,547 | 36 | $ | 122,450,991 | 33 | |||||||||||||||||||||
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For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Attributable to the Parent |
Income Attributable to the Parent |
Income Attributable to the Parent |
Income Attributable to Shareholders of the Parent |
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EARNINGS PER SHARE (NT$, Note 32) |
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Basic earnings per share |
$ | 2.00 | $ | 1.90 | $ | 5.53 | $ | 4.81 | ||||||||
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Diluted earnings per share |
$ | 2.00 | $ | 1.90 | $ | 5.53 | $ | 4.81 | ||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
- 3 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars, Except Dividends Per Share)
(Reviewed, Not Audited)
Equity Attributable to Shareholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital StockCommon Stock |
Retained Earnings | Foreign Translation |
Unrealized for-sale |
Cash Flow Hedges Reserve |
Total | Total | Noncontrolling Interests |
Total Equity |
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Shares (In Thousands) |
Amount | Capital Surplus | Legal Capital Reserve |
Special Capital |
Unappropriated Earnings |
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2013 |
25,924,435 | $ | 259,244,357 | $ | 55,675,340 | $ | 115,820,123 | $ | 7,606,224 | $ | 284,985,121 | $ | 408,411,468 | $ | (10,753,806 | ) | $ | 7,973,321 | $ | | $ | (2,780,485 | ) | $ | 720,550,680 | $ | 2,543,226 | $ | 723,093,906 | |||||||||||||||||||||||||||
Appropriations of prior years earnings |
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Legal capital reserve |
| | | 16,615,880 | | (16,615,880 | ) | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Reversal of special capital reserve |
| | | | (4,820,483 | ) | 4,820,483 | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholdersNT$3.00 per share |
| | | | | (77,773,307 | ) | (77,773,307 | ) | | | | | (77,773,307 | ) | | (77,773,307 | ) | ||||||||||||||||||||||||||||||||||||||
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Total |
| | | 16,615,880 | (4,820,483 | ) | (89,568,704 | ) | (77,773,307 | ) | | | | | (77,773,307 | ) | | (77,773,307 | ) | |||||||||||||||||||||||||||||||||||||
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Net income for the nine months ended September 30, 2013 |
| | | | | 143,336,544 | 143,336,544 | | | | | 143,336,544 | (104,746 | ) | 143,231,798 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income for the nine months ended September 30, 2013, net of income tax |
| | | | | | | 2,315,276 | 15,241,944 | (67 | ) | 17,557,153 | 17,557,153 | (6,404 | ) | 17,550,749 | ||||||||||||||||||||||||||||||||||||||||
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Total comprehensive income for the nine months ended September 30, 2013 |
| | | | | 143,336,544 | 143,336,544 | 2,315,276 | 15,241,944 | (67 | ) | 17,557,153 | 160,893,697 | (111,150 | ) | 160,782,547 | ||||||||||||||||||||||||||||||||||||||||
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Issuance of stock from exercise of employee stock options |
3,956 | 39,553 | 74,613 | | | | | | | | | 114,166 | | 114,166 | ||||||||||||||||||||||||||||||||||||||||||
Stock option compensation cost of subsidiary |
| | | | | | | | | | | | 5,312 | 5,312 | ||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equity of associates and joint venture |
| | 27,011 | | | | | | | | | 27,011 | | 27,011 | ||||||||||||||||||||||||||||||||||||||||||
Adjustments arising from changes in percentage of ownership in subsidiaries |
| | 64,752 | | | | | | | | | 64,752 | (64,752 | ) | | |||||||||||||||||||||||||||||||||||||||||
Increase in noncontrolling interests |
| | | | | | | | | | | | 198,279 | 198,279 | ||||||||||||||||||||||||||||||||||||||||||
Effect of deconsolidation of subsidiary |
| | | | | | | | | | | | (2,273,153 | ) | (2,273,153 | ) | ||||||||||||||||||||||||||||||||||||||||
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BALANCE, SEPTEMBER 30, 2013 |
25,928,391 | $ | 259,283,910 | $ | 55,841,716 | $ | 132,436,003 | $ | 2,785,741 | $ | 338,752,961 | $ | 473,974,705 | $ | (8,438,530 | ) | $ | 23,215,265 | $ | (67 | ) | $ | 14,776,668 | $ | 803,876,999 | $ | 297,762 | $ | 804,174,761 | |||||||||||||||||||||||||||
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BALANCE, JANUARY 1, 2012 |
25,916,222 | $ | 259,162,226 | $ | 55,471,662 | $ | 102,399,995 | $ | 6,433,874 | $ | 211,630,458 | $ | 320,464,327 | $ | (6,433,364 | ) | $ | (1,172,762 | ) | $ | (93 | ) | $ | (7,606,219 | ) | $ | 627,491,996 | $ | 2,436,649 | $ | 629,928,645 | |||||||||||||||||||||||||
Appropriations of prior years earnings |
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Legal capital reserve |
| | | 13,420,128 | | (13,420,128 | ) | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Special capital reserve |
| | | | 1,172,350 | (1,172,350 | ) | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholdersNT$3.00 per share |
| | | | | (77,748,668 | ) | (77,748,668 | ) | | | | | (77,748,668 | ) | | (77,748,668 | ) | ||||||||||||||||||||||||||||||||||||||
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Total |
| | | 13,420,128 | 1,172,350 | (92,341,146 | ) | (77,748,668 | ) | | | | | (77,748,668 | ) | | (77,748,668 | ) | ||||||||||||||||||||||||||||||||||||||
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Net income for the nine months ended September 30, 2012 |
| | | | | 124,714,606 | 124,714,606 | | | | | 124,714,606 | (109,760 | ) | 124,604,846 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income for the nine months ended September 30, 2012, net of income tax |
| | | | | | | (3,618,876 | ) | 1,413,013 | 28,282 | (2,177,581 | ) | (2,177,581 | ) | 23,726 | (2,153,855 | ) | ||||||||||||||||||||||||||||||||||||||
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Total comprehensive income for the nine months ended September 30, 2012 |
| | | | | 124,714,606 | 124,714,606 | (3,618,876 | ) | 1,413,013 | 28,282 | (2,177,581 | ) | 122,537,025 | (86,034 | ) | 122,450,991 | |||||||||||||||||||||||||||||||||||||||
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Issuance of stock from exercise of employee stock options |
5,825 | 58,250 | 118,206 | | | | | | | | | 176,456 | | 176,456 | ||||||||||||||||||||||||||||||||||||||||||
Stock option compensation cost of subsidiary |
| | | | | | | | | | | | 3,372 | 3,372 | ||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equity of associates and joint venture |
| | 2,601 | | | | | | | | | 2,601 | | 2,601 | ||||||||||||||||||||||||||||||||||||||||||
Adjustments arising from changes in percentage of ownership in subsidiaries |
| | 37,956 | | | | | | | | | 37,956 | (37,956 | ) | | |||||||||||||||||||||||||||||||||||||||||
Increase in noncontrolling interests |
| | | | | | | | | | | | 273,920 | 273,920 | ||||||||||||||||||||||||||||||||||||||||||
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BALANCE, SEPTEMBER 30, 2012 |
25,922,047 | $ | 259,220,476 | $ | 55,630,425 | $ | 115,820,123 | $ | 7,606,224 | $ | 244,003,918 | $ | 367,430,265 | $ | (10,052,240 | ) | $ | 240,251 | $ | 28,189 | $ | (9,783,800 | ) | $ | 672,497,366 | $ | 2,589,951 | $ | 675,087,317 | |||||||||||||||||||||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
- 4 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
For the Nine Months Ended September 30 |
||||||||
2013 | 2012 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Income before income tax |
$ | 165,114,477 | $ | 135,392,326 | ||||
Adjustments for: |
||||||||
Depreciation expense |
113,400,781 | 93,501,687 | ||||||
Amortization expense |
1,629,482 | 1,642,604 | ||||||
Stock option compensation cost of subsidiary |
5,312 | 3,372 | ||||||
Finance costs |
1,861,664 | 685,418 | ||||||
Share of profits of associates and joint venture |
(2,826,900 | ) | (1,338,261 | ) | ||||
Interest income |
(1,282,220 | ) | (1,294,864 | ) | ||||
Gain on disposal of property, plant and equipment and intangible assets, net |
(19,554 | ) | (263 | ) | ||||
Impairment loss on property, plant and equipment |
| 422,323 | ||||||
Impairment loss of financial assets |
1,541,170 | 2,748,616 | ||||||
Gain on disposal of available-for-sale financial assets, net |
(1,239,442 | ) | (321,580 | ) | ||||
Gain on disposal of financial assets carried at cost, net |
(32,199 | ) | (127,480 | ) | ||||
Loss on disposal of investments in associates |
733 | 1,009 | ||||||
Gain on deconsolidation of subsidiary |
(293,578 | ) | | |||||
Unrealized gross profit on sales to associates |
42,833 | 129,569 | ||||||
Loss (gain) on foreign exchange, net |
353,755 | (1,707,952 | ) | |||||
Dividend income |
(506,560 | ) | (69,945 | ) | ||||
Income from receipt of equity securities in settlement of trade receivables |
(9,590 | ) | (886 | ) | ||||
Loss on hedging instruments |
6,319,146 | | ||||||
Gain arising from changes in fair value of available-for-sale financial assets in hedge effective portion |
(5,989,610 | ) | | |||||
Changes in operating assets and liabilities: |
||||||||
Derivative financial instruments |
(145,680 | ) | (37,059 | ) | ||||
Receivables from related parties |
(740,050 | ) | (739,481 | ) | ||||
Notes and accounts receivable, net |
(21,325,495 | ) | (18,556,562 | ) | ||||
Other receivables from related parties |
77,757 | (34,852 | ) | |||||
Inventories |
700,838 | (8,408,463 | ) | |||||
Other current assets |
(79,924 | ) | (476,904 | ) | ||||
Other financial assets |
39,939 | 107,508 | ||||||
Accounts payable |
(959,796 | ) | 2,891,661 | |||||
Payables to related parties |
755,742 | (559,968 | ) | |||||
Salary and bonus payable |
221,487 | 845,786 | ||||||
Accrued profit sharing to employees and bonus to directors and supervisors |
(1,239,891 | ) | (427,278 | ) | ||||
Accrued expenses and other current liabilities |
2,906,280 | 4,418,928 | ||||||
Provisions |
714,527 | 1,839,277 | ||||||
Accrued pension cost |
13,068 | (7,746 | ) | |||||
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|||||
Cash generated from operations |
259,008,502 | 210,520,540 | ||||||
Income taxes paid |
(14,398,067 | ) | (10,355,944 | ) | ||||
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Net cash generated by operating activities |
244,610,435 | 200,164,596 | ||||||
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(Continued)
- 5 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
For the Nine Months Ended September 30 |
||||||||
2013 | 2012 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Acquisitions of: |
||||||||
Available-for-sale financial assets |
$ | (16,496 | ) | $ | (4,434 | ) | ||
Financial assets carried at cost |
(18,059 | ) | (6,833 | ) | ||||
Property, plant and equipment |
(213,640,001 | ) | (186,371,680 | ) | ||||
Intangible assets |
(2,013,354 | ) | (1,106,734 | ) | ||||
Proceeds from disposal or redemption of: |
||||||||
Available-for-sale financial assets |
2,370,217 | 616,757 | ||||||
Held-to-maturity financial assets |
4,445,850 | 1,278,089 | ||||||
Financial assets carried at cost |
53,857 | 236,735 | ||||||
Property, plant and equipment |
97,368 | 116,748 | ||||||
Other assets |
| 8,259 | ||||||
Costs from entering into hedging transactions |
(143,982 | ) | | |||||
Interest received |
1,194,967 | 1,340,623 | ||||||
Other dividends received |
506,560 | 69,945 | ||||||
Dividends received from associates |
2,141,881 | 2,088,472 | ||||||
Refundable deposits paid |
(67,513 | ) | (103,531 | ) | ||||
Refundable deposits refunded |
81,922 | 2,290,428 | ||||||
Net cash outflow from deconsolidation of subsidiary (Note 34) |
(979,910 | ) | | |||||
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|||||
Net cash used in investing activities |
(205,986,693 | ) | (179,547,156 | ) | ||||
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|||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Proceeds from issuance of bonds |
130,844,821 | 57,600,000 | ||||||
Repayment of bonds |
| (4,500,000 | ) | |||||
Increase (decrease) in short-term loans |
(17,314,261 | ) | 4,494,916 | |||||
Increase in long-term bank loans |
690,000 | 50,000 | ||||||
Repayment of long-term bank loans |
(62,500 | ) | (181,250 | ) | ||||
Repayment of other long-term payables |
(853,788 | ) | (2,367,866 | ) | ||||
Interest paid |
(1,242,377 | ) | (683,003 | ) | ||||
Guarantee deposits received |
14,916 | 14,814 | ||||||
Guarantee deposits refunded |
(71,982 | ) | (229,585 | ) | ||||
Decrease in obligations under finance leases |
(27,796 | ) | (124,923 | ) | ||||
Proceeds from exercise of employee stock options |
114,166 | 176,456 | ||||||
Cash dividends |
(77,773,307 | ) | (77,748,668 | ) | ||||
Increase in noncontrolling interests |
212,410 | 273,920 | ||||||
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Net cash generated (used) by financing activities |
34,530,302 | (23,225,189 | ) | |||||
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EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
39,065 | (2,126,415 | ) | |||||
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|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
73,193,109 | (4,734,164 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
143,410,588 | 143,472,277 | ||||||
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CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 216,603,697 | $ | 138,738,113 | ||||
|
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|
The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
- 6 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
(Reviewed, Not Audited)
1. | GENERAL |
Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. Beginning in 2010, TSMC also engages in the researching, developing, designing, manufacturing and selling of solid state lighting devices and related applications products and systems, and renewable energy and efficiency related technologies and products.
On September 5, 1994, TSMCs shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal operating activities and operating segments information of TSMC and its subsidiaries (collectively as the Company) are described in Notes 4 and 42.
2. | THE AUTHORIZATION OF FINANCIAL STATEMENTS |
The consolidated financial statements were reported to the Board of Directors and issued on November 12, 2013.
3. | APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) |
On May 14, 2009, the Financial Supervisory Commission (FSC) announced the roadmap of IFRSs adoption for R.O.C. companies. Accordingly, starting 2013, companies with shares listed on the TWSE or traded on the Taiwan GreTai Securities Market or Emerging Stock Market should prepare the consolidated financial statements in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the IFRSs, International Accounting Standards (IASs), interpretations as well as related guidance translated by Accounting Research and Development Foundation (ARDF) endorsed by the FSC with the effective dates (collectively, Taiwan-IFRSs).
The new, revised or amended IFRSs, IASs, interpretations and related guidance in issue but not yet adopted by the Company as well as the effective dates issued by the International Accounting Standards Board (IASB), are stated as follows; however, the initial adoption to the following new, revised or amended standards and interpretations is still subject to the effective date to be published by the FSC.
- 7 -
New, Revised or Amended Standards and Interpretations |
Effective Date Issued by IASB (Note) | |||
Endorsed by the FSC but the |
||||
Amendments to IFRSs | Improvements to IFRSs 2009Amendment to IAS 39 |
January 1, 2009 or January 1, 2010 | ||
IFRS 9 (2009) | Financial Instruments |
January 1, 2015 | ||
Amendment to IAS 39 | Embedded Derivatives |
Effective in fiscal year beginning on or after June 30, 2009 | ||
Not yet endorsed by the FSC |
||||
Amendments to IFRSs | Improvements to IFRSs 2010Amendment to IAS 39 |
July 1, 2010 or January 1, 2011 | ||
Amendments to IFRSs | Annual Improvements to IFRSs 20092011 Cycle |
January 1, 2013 | ||
Amendments to IFRS 1 | Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters |
July 1, 2010 | ||
Amendments to IFRS 1 | Government Loans |
January 1, 2013 | ||
Amendments to IFRS 1 | Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters |
July 1, 2011 | ||
Amendment to IFRS 7 | Disclosures-offsetting Financial Assets and Financial Liabilities |
January 1, 2013 | ||
Amendments to IFRS 9 and IFRS 7 | Mandatory Effective Date and Transition Disclosure |
January 1, 2015 | ||
Amendment to IFRS 7 | DisclosuresTransfers of Financial Assets |
July 1, 2011 | ||
Amendment to IFRS 9 (2010) | Financial Instruments |
January 1, 2015 | ||
IFRS 10 | Consolidated Financial Statements |
January 1, 2013 | ||
IFRS 11 | Joint Arrangements |
January 1, 2013 | ||
IFRS 12 | Disclosure of Interests in Other Entities |
January 1, 2013 | ||
Amendments to IFRS 10, IFRS 11 and IFRS 12 |
Consolidated financial Statements, Joint Arrangements, and Disclosure of Interests in Other Entities: Transition Guidance |
January 1, 2013 | ||
Amendments to IFRS 10, IFRS 12 and IAS 27 |
Investment Entities |
January 1, 2014 | ||
IFRS 13 | Fair Value Measurement |
January 1, 2013 | ||
Amendment to IAS 1 | Presentation of Items of Other Comprehensive Income |
July 1, 2012 | ||
Amendment to IAS 12 | Deferred Tax: Recovery of Underlying Assets |
January 1, 2012 | ||
Amendment to IAS 19 | Employee Benefits |
January 1, 2013 | ||
Amendment to IAS 27 | Separate Financial Statements |
January 1, 2013 | ||
Amendment to IAS 28 | Investments in Associates and Joint Ventures |
January 1, 2013 | ||
Amendment to IAS 32 | Offsetting of Financial Assets and Financial Liabilities |
January 1, 2014 | ||
Amendment to IAS 36 | Recoverable Amount Disclosures for Non-Financial Assets |
January 1, 2014 |
(Continued)
- 8 -
New, Revised or Amended Standards and Interpretations |
Effective Date Issued by IASB (Note) | |||
Amendment to IAS 39 | Novation of Derivatives and Continuation of Hedge Accounting |
January 1, 2014 | ||
IFRIC 20 | Stripping Costs in the Production Phase of A Surface Mine |
January 1, 2013 | ||
IFRIC 21 | Levies |
January 1, 2014 |
(Concluded)
Note: | The aforementioned new, revised or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates, unless specified otherwise. |
Except for the following items, the Company believes that the adoption of aforementioned new, revised or amended standards or interpretations will not have a significant effect on the Companys accounting policies.
a. | IFRS 9, Financial Instruments |
Under IFRS 9, all recognized financial assets currently in the scope of IAS 39, Financial Instruments: Recognition and Measurement, will be subsequently measured at either the amortized cost or the fair value. If the objective of the Companys business model is to hold the financial asset to collect the contractual cash flows which are solely for payments of principal and interest on the principal amount outstanding, such assets are measured at the amortized cost. All other financial assets must be measured at the fair value through profit or loss as of the balance sheet date.
b. | IFRS 12, Disclosure of Interests in Other Entities |
IFRS 12 is a standard that requires a broader disclosure in an entitys interests in subsidiaries, joint arrangements, associates and unconsolidated entities. The objective of IFRS 12 is to specify the disclosure information provided by the entity that enables the users of financial statements in evaluating the nature of, and risks associated with, its interests in other entities and the effects of those interests on the entitys financial assets and liabilities, as well as the involvement of the owners of noncontrolling interests towards the entity. The Company expects the application of IFRS 12 will result in more extensive disclosures of interests in other entities in the financial statements.
c. | IFRS 13, Fair Value Measurement |
IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements.
d. | Amendments to IAS 1, Presentation of Items of Other Comprehensive Income |
The amendments to IAS 1 introduce a new disclosure terminology for other comprehensive income, which require additional disclosures in other comprehensive income. The items of other comprehensive income will be grouped into two categories: (a) items that will not be reclassified subsequently to profit or loss; and (b) items that will be reclassified subsequently to profit or loss when specific conditions are met. In addition, income tax on items of other comprehensive income is also required to be allocated on the same basis. The Company expects the aforementioned amendments will change the Companys presentation on the statement of comprehensive income.
- 9 -
e. | Amendments to IAS 19, Employee Benefits |
The amendments to IAS 19 change the accounting for defined benefit plans, which require the Company to recognize changes in defined benefit obligations or assets, to disclose the components of the defined benefit costs, to eliminate the corridor approach and to accelerate the recognition of past service cost. According to the amendments, all actuarial gains and losses will be recognized immediately through other comprehensive income; the past service cost, on the other hand, will be expensed immediately when it incurs and no longer be amortized over the average period before vested on a straight-line basis. In addition, the amendment also requires a broader disclosure in defined benefit plans.
f. | Amendments to IAS 36, Recoverable Amount Disclosures for Non-Financial Assets |
The amendments to IAS 36 clarify that the Company is only required to disclose the recoverable amount in the period of impairment accrual or reversal. Moreover, if the recoverable amount of impaired assets is based on fair value less costs of disposal, the Company should also disclose the discount rate used. The Company expects the aforementioned amendments will result in a broader disclosure of recoverable amount for non-financial assets.
As of the date that the consolidated financial statements were authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the above standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.
4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The consolidated financial statements are the Taiwan-IFRSs interim consolidated financial statements for part of the period covered by the Taiwan-IFRSs annual consolidated financial statements prepared for the year ended December 31, 2013. The Companys date of transition to Taiwan-IFRSs is January 1, 2012, and the effect of the transition to Taiwan-IFRSs is disclosed in Note 43.
For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail.
Significant accounting policies are summarized as follows:
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and IFRS 1, First-time adoption of International Financial Reporting Standards, (IFRS 1) and IAS 34, Interim Financial Reporting, endorsed by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under Taiwan-IFRSs.
Basis of Consolidation
The basis for the consolidated financial statements
The consolidated financial statements incorporate the financial statements of TSMC and entities controlled by TSMC (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
- 10 -
Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the noncontrolling interests even if this results in the noncontrolling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Companys ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Companys interests and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to shareholders of the parent.
When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between:
a. | the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and |
b. | the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any noncontrolling interest. |
The Company shall account for all amounts recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the Company had directly disposed of the related assets and liabilities.
The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.
The subsidiaries in the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period was as follows:
Establishment Location |
Percentage of Ownership | |||||||||||||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
Note | |||||||||||||||||
TSMC |
TSMC North America | Selling and marketing of integrated circuits and semiconductor devices |
San Jose, California, U.S.A. |
100 | % | 100 | % | 100 | % | 100 | % | | ||||||||||||
TSMC Japan Limited (TSMC Japan) |
Marketing activities |
Yokohama, Japan |
100 | % | 100 | % | 100 | % | 100 | % | a) | |||||||||||||
TSMC Partners, Ltd. (TSMC Partners) |
Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry |
Tortola, British Virgin Islands |
100 | % | 100 | % | 100 | % | 100 | % | | |||||||||||||
TSMC Korea Limited (TSMC Korea) |
Customer service and technical supporting activities |
Seoul, Korea |
100 | % | 100 | % | 100 | % | 100 | % | a) | |||||||||||||
TSMC Europe B.V. (TSMC Europe) |
Marketing and engineering supporting activities |
Amsterdam, the Netherlands |
100 | % | 100 | % | 100 | % | 100 | % | a) | |||||||||||||
TSMC Global, Ltd. (TSMC Global) |
Investment activities |
Tortola, British Virgin Islands |
100 | % | 100 | % | 100 | % | 100 | % | | |||||||||||||
TSMC China Company Limited (TSMC China) |
Manufacturing and selling of integrated circuits at the order of and pursuant to product design specifications provided by customers |
Shanghai, China |
100 | % | 100 | % | 100 | % | 100 | % | | |||||||||||||
VentureTech Alliance Fund III, L.P. (VTAF III) |
Investing in new start-up technology companies |
Cayman Islands |
50 | % | 50 | % | 50 | % | 53 | % | | |||||||||||||
VentureTech Alliance Fund II, L.P. (VTAF II) |
Investing in new start-up technology companies |
Cayman Islands |
98 | % | 98 | % | 98 | % | 98 | % | | |||||||||||||
Emerging Alliance Fund, L.P. (Emerging Alliance) |
Investing in new start-up technology companies |
Cayman Islands |
99.5 | % | 99.5 | % | 99.5 | % | 99.5 | % | a) |
(Continued)
- 11 -
Percentage of Ownership | ||||||||||||||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products |
Establishment and Location |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
Note | ||||||||||||||||
TSMC |
Xintec Inc. (Xintec) |
Wafer level chip size packaging service |
Taoyuan, Taiwan |
b | ) | 40% | 40% | 40% | | |||||||||||||||
TSMC Solid State Lighting Ltd. (TSMC SSL) |
Engaged in researching, developing, designing, manufacturing and selling solid state lighting devices and related applications products and systems |
Hsin-Chu, Taiwan |
92% | 95% | 95% | 100% | TSMC and TSMC GN aggregately have a controlling interest of 93% in TSMC SSL | |||||||||||||||||
TSMC Solar Ltd. (TSMC Solar) |
Engaged in researching, developing, designing, manufacturing and selling renewable energy and saving related technologies and products |
Tai-Chung, Taiwan |
99% | 99% | 99% | 100% | TSMC and TSMC GN aggregately have a controlling interest of 99% in TSMC Solar | |||||||||||||||||
TSMC Guang Neng Investment, Ltd. (TSMC GN) |
Investment activities |
Taipei, Taiwan |
100% | 100% | 100% | | | |||||||||||||||||
TSMC Partners |
TSMC Design Technology Canada Inc. (TSMC Canada) |
Engineering support activities |
Ontario, Canada |
100% | 100% | 100% | 100% | a) | ||||||||||||||||
TSMC Technology, Inc. (TSMC Technology) |
Engineering support activities |
Delaware, U.S.A. |
100% | 100% | 100% | 100% | a) | |||||||||||||||||
TSMC Development, Inc. (TSMC Development) |
Investment activities |
Delaware, U.S.A. |
100% | 100% | 100% | 100% | | |||||||||||||||||
InveStar Semiconductor Development Fund, Inc. (ISDF) |
Investing in new start-up technology companies |
Cayman Islands |
97% | 97% | 97% | 97% | a) | |||||||||||||||||
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II) |
Investing in new start-up technology companies |
Cayman Islands |
97% | 97% | 97% | 97% | a) | |||||||||||||||||
TSMC Development |
WaferTech, LLC (WaferTech) |
Manufacturing, selling, testing and computer-aided designing of integrated circuits and other semiconductor devices |
Washington, U.S.A. |
100% | 100% | 100% | 100% | | ||||||||||||||||
VTAF III |
Mutual-Pak Technology Co., Ltd. (Mutual-Pak) |
Manufacturing and selling of electronic parts and researching, developing, and testing of RFID |
Taipei, Taiwan |
58% | 58% | 58% | 57% | a) | ||||||||||||||||
Growth Fund Limited (Growth Fund) |
Investing in new start-up technology companies |
Cayman Islands |
100% | 100% | 100% | 100% | a) | |||||||||||||||||
VTAF III, VTAF II and |
VentureTech Alliance Holdings, LLC (VTA Holdings) |
Investing in new start-up technology companies |
Delaware, U.S.A. |
100% | 100% | 100% | 100% | a) | ||||||||||||||||
TSMC SSL |
TSMC Lighting North America, Inc. (TSMC Lighting NA) |
Selling and marketing of solid state lighting related products |
Delaware, U.S.A. |
100% | 100% | 100% | 100% | a) | ||||||||||||||||
TSMC Solar |
TSMC Solar North America, Inc. (TSMC Solar NA) |
Selling and marketing of solar related products |
Delaware, U.S.A. |
100% | 100% | 100% | 100% | a) | ||||||||||||||||
TSMC Solar Europe B.V. (TSMC Solar Europe) |
Investing in solar related business |
Amsterdam, the Netherlands |
100% | 100% | 100% | 100% | a) | |||||||||||||||||
VentureTech Alliance Fund III, L.P. (VTAF III) |
Investing in new start-up technology companies |
Cayman Islands |
49% | 49% | 49% | 46% | | |||||||||||||||||
TSMC Solar Europe |
TSMC Solar Europe GmbH |
Selling of solar related products and providing customer service |
Hamburg, Germany |
100% | 100% | 100% | 100% | a) |
(Concluded)
Note a: | This is an insignificant subsidiary for which the financial statements are not reviewed by the Companys independent accountants. The Companys management believes the investment in such subsidiary has no material effect on the Companys consolidated financial statements. |
Note b: | TSMC has no power to govern the financial and operating policies of Xintec starting June 2013 due to the loss of power to cast the majority of votes at meetings of the Board of Directors. As a result, Xintec is no longer consolidated and is accounted for using the equity method. Please refer to Note 34. |
Other Significant Accounting Policies
The same accounting policies have been followed in this consolidated financial statements as were applied in the preparation of the Companys consolidated financial statements for the three months ended March 31, 2013. For the summary of other significant accounting policies, please refer to Note 4 to the consolidated financial statements for the three months ended March 31, 2013.
- 12 -
5. | CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY |
The same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Companys consolidated financial statements for the three months ended March 31, 2013. For the related information, please refer to Note 5 to the consolidated financial statements for the three months ended March 31, 2013.
6. | CASH AND CASH EQUIVALENTS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Cash and deposits in banks |
$ | 213,978,108 | $ | 140,072,294 | $ | 135,330,257 | $ | 139,637,363 | ||||||||
Repurchase agreements collateralized by corporate bonds |
2,052,723 | 2,691,042 | 2,534,741 | | ||||||||||||
Repurchase agreements collateralized by short-term commercial paper |
449,803 | 349,341 | 399,585 | | ||||||||||||
Repurchase agreements collateralized by government bonds |
123,063 | 297,911 | 473,530 | 3,834,914 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 216,603,697 | $ | 143,410,588 | $ | 138,738,113 | $ | 143,472,277 | |||||||||
|
|
|
|
|
|
|
|
Deposits in banks, for the purpose of meeting short-term cash commitments, consisted of highly liquid time deposits that were readily convertible to known amounts of cash and which were subject to an insignificant risk of changes in value.
7. | FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Derivative financial assets |
||||||||||||||||
Forward exchange contracts |
$ | 26,051 | $ | 38,607 | $ | 55,995 | $ | 15,360 | ||||||||
Cross currency swap contracts |
162,919 | 947 | 2,695 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 188,970 | $ | 39,554 | $ | 58,690 | $ | 15,360 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative financial liabilities |
||||||||||||||||
Forward exchange contracts |
$ | 2,086 | $ | 12,174 | $ | 16,045 | $ | 13,623 | ||||||||
Cross currency swap contracts |
16,790 | 3,451 | 3,968 | 119 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 18,876 | $ | 15,625 | $ | 20,013 | $ | 13,742 | |||||||||
|
|
|
|
|
|
|
|
The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange rates. The derivative contracts entered into by the Company did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for derivative contracts.
- 13 -
Outstanding forward exchange contracts consisted of the following:
Maturity Date | Contract Amount (In Thousands) | |||
September 30, 2013 |
||||
Sell NT$/Buy JPY |
October 2013 | NT$14,344/JPY48,000 | ||
Sell NT$/Buy US$ |
October 2013 | NT$639,824/US$21,650 | ||
Sell US$/Buy EUR |
October 2013 | US$428,345/EUR317,000 | ||
Sell US$/Buy JPY |
October 2013 | US$64,418/JPY6,352,719 | ||
Sell US$/Buy RMB |
October 2013 to December 2013 | US$117,000/RMB718,331 | ||
December 31, 2012 |
||||
Sell NT$/Buy EUR |
January 2013 | NT$9,417,062/EUR246,000 | ||
Sell NT$/Buy US$ |
January 2013 | NT$590,403/US$20,400 | ||
Sell NT$/Buy JPY |
January 2013 | NT$44,110/JPY130,000 | ||
Sell US$/Buy NT$ |
January 2013 to March 2013 | US$13,700/NT$398,239 | ||
Sell US$/Buy RMB |
January 2013 | US$20,000/RMB124,735 | ||
September 30, 2012 |
||||
Sell NT$/Buy EUR |
October 2012 | NT$7,684/EUR200 | ||
Sell NT$/Buy JPY |
October 2012 to November 2012 | NT$149,017/JPY393,000 | ||
Sell NT$/Buy US$ |
October 2012 to November 2012 | NT$449,412/US$15,000 | ||
Sell RMB/Buy US$ |
October 2012 | RMB685,056/US$108,000 | ||
Sell US$/Buy EUR |
October 2012 | US$52,421/EUR40,500 | ||
Sell US$/Buy JPY |
October 2012 | US$315,000/JPY24,525,215 | ||
Sell US$/Buy NT$ |
October 2012 to December 2012 | US$106,190/NT$3,131,774 | ||
January 1, 2012 |
||||
Sell EUR/Buy NT$ |
January 2012 | EUR38,600/NT$1,528,206 | ||
Sell NT$/Buy US$ |
January 2012 to February 2012 | NT$163,491/US$5,400 | ||
Sell RMB/Buy US$ |
January 2012 | RMB1,118,705/US$177,000 | ||
Sell US$/Buy EUR |
January 2012 | US$2,082/EUR1,591 | ||
Sell US$/Buy JPY |
January 2012 | US$3,335/JPY259,830 | ||
Sell US$/Buy NT$ |
January 2012 to February 2012 | US$16,900/NT$510,122 |
Outstanding cross currency swap contracts consisted of the following:
Maturity Date | Contract Amount (In Thousands) |
Range of Interest Rates |
Range of Interest Rates | |||
September 30, 2013 |
||||||
October 2013 |
NT$1,366,150/US$46,080 | | 0.32%-0.60% | |||
October 2013 to November 2013 |
US$1,199,000/NT$35,692,006 | 0.31%-3.51% | | |||
December 31, 2012 |
||||||
January 2013 |
NT$1,083,139/US$37,280 | | 0.06% | |||
January 2013 |
US$275,000/NT$7,986,190 | 0.14%-0.17% | |
(Continued)
- 14 -
Maturity Date | Contract Amount (In Thousands) |
Range of Interest Rates |
Range of Interest Rates | |||
September 30, 2012 |
||||||
October 2012 |
NT$833,013/US$28,280 | | 0.04%-0.05% | |||
October 2012 |
US$170,000/NT$4,991,030 | 0.10%-0.11% | | |||
January 1, 2012 |
||||||
January 2012 |
NT$420,431/US$13,880 | | 0.48% |
(Concluded)
8. | AVAILABLE-FOR-SALE FINANCIAL ASSETS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Publicly traded stocks |
$ | 61,802,636 | $ | 41,160,437 | $ | 2,067,730 | $ | 3,306,248 | ||||||||
Money market funds |
14,640 | 1,443 | | 2,522 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 61,817,276 | $ | 41,161,880 | $ | 2,067,730 | $ | 3,308,770 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | 672,179 | $ | 2,410,635 | $ | 2,067,730 | $ | 3,308,770 | ||||||||
Noncurrent portion |
61,145,097 | 38,751,245 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 61,817,276 | $ | 41,161,880 | $ | 2,067,730 | $ | 3,308,770 | |||||||||
|
|
|
|
|
|
|
|
In October 2012, the Company acquired 5% of the outstanding equity of ASML Holding N.V. (ASML) for EUR837,816 thousand with a lock-up period of 2.5 years starting from the acquisition date. (Note 40f)
In the second quarter of 2012, the Company recognized an impairment loss on some of the overseas publicly traded stocks in the amount of NT$2,677,529 thousand due to the significant decline in fair value.
9. | HELD-TO-MATURITY FINANCIAL ASSETS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Corporate bonds |
$ | 700,285 | $ | 5,056,973 | $ | 7,556,046 | $ | 8,614,527 | ||||||||
Government bonds |
| | | 454,320 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 700,285 | $ | 5,056,973 | $ | 7,556,046 | $ | 9,068,847 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | 700,285 | $ | 5,056,973 | $ | 6,854,611 | $ | 3,825,680 | ||||||||
Noncurrent portion |
| | 701,435 | 5,243,167 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 700,285 | $ | 5,056,973 | $ | 7,556,046 | $ | 9,068,847 | |||||||||
|
|
|
|
|
|
|
|
- 15 -
10. | HEDGING DERIVATIVE FINANCIAL INSTRUMENTS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Financial assets |
||||||||||||||||
Current |
||||||||||||||||
Cash flow hedges |
||||||||||||||||
Forward exchange contract |
$ | | $ | | $ | 28,189 | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Financial liabilities |
||||||||||||||||
Current |
||||||||||||||||
Cash flow hedges |
||||||||||||||||
Interest rate swap contracts |
$ | | $ | | $ | | $ | 232 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Noncurrent |
||||||||||||||||
Fair value hedges |
||||||||||||||||
Stock forward contracts |
$ | 6,144,025 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
The Companys investments in publicly traded stocks are exposed to the risk of market price fluctuations. Accordingly, the Company entered into stock forward contracts to sell shares at a contracted price in a specific future period in order to hedge the fair value risk caused by changes in equity prices.
The outstanding stock forward contracts consisted of the following:
Contract Shares (In Thousands) | Maturity Date | Contract Price | ||
September 30, 2013 |
||||
8,250 |
May 2015 to September 2015 |
Determined by the specific percentage of spot price on the trade date |
The Company entered into derivative contracts to hedge cash flow risk arising from foreign exchange rate fluctuations of an expected equity transaction in September 2012. Outstanding forward exchange contracts consisted of the following:
Maturity Date | Contract Amount (In Thousands) |
|||||||
September 30, 2012 |
||||||||
Sell US$/Buy EUR |
October 2012 | US$ | 257,759/EUR200,000 |
For the three months and nine months ended September 30, 2012, the amount recognized in other comprehensive income and accumulated under the heading of cash flow hedges reserve from the above forward exchange contract both amounted to a net gain of NT$28,189 thousand.
In addition, the Companys long-term bank loans bear floating interest rates; therefore, changes in the market interest rate may cause future cash flows to be volatile. Accordingly, the Company entered into an interest rate swap contract in order to hedge cash flow risk caused by floating interest rates. The interest rate swap contract of the Company was due in August 2012.
- 16 -
The outstanding interest rate swap contract consisted of the following:
Contract Amount (In Thousands) |
Maturity Date | Range of Interest Rates Paid |
Range of Interest Rates Received | |||||||
January 1, 2012 |
||||||||||
NT$80,000 |
August 31, 2012 | 1.38% | 0.63%-0.86% |
For the three months and the nine months ended September 30, 2012, the amount recognized in other comprehensive income and accumulated under the heading of cash flow hedges reserve from the above interest rate swap contract amounted to a net gain of NT$22 thousand and NT$5 thousand, respectively; the amount reclassified from equity and recognized as a loss from the above interest rate swap contract amounted to a net loss of NT$47 thousand and NT$227 thousand, respectively, which were included under finance costs in the consolidated statements of comprehensive income.
11. | NOTES AND ACCOUNTS RECEIVABLE, NET |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Notes and accounts receivable |
$ | 79,330,887 | $ | 58,257,798 | $ | 64,876,527 | $ | 46,321,240 | ||||||||
Allowance for doubtful receivables |
(486,498 | ) | (480,212 | ) | (489,590 | ) | (490,952 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Notes and accounts receivable, net |
$ | 78,844,389 | $ | 57,777,586 | $ | 64,386,937 | $ | 45,830,288 | ||||||||
|
|
|
|
|
|
|
|
The Companys sales agreements typically provide that the payment is due 30 days from the invoice date for a majority of the costumers and 30 to 45 days after the end of the month in which sales occur for some customers. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition of customers.
Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the reporting period is summarized in the following table. Notes and accounts receivable include amounts that are past due but for which the Company has not recognized an allowance for doubtful receivables after the assessment since there has not been a significant change in the credit quality of its customers and the amounts are still considered recoverable.
Aging analysis of notes and accounts receivable, net
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Neither past due nor impaired |
$ | 71,148,159 | $ | 47,528,952 | $ | 55,324,138 | $ | 39,362,390 | ||||||||
Past due but not impaired |
||||||||||||||||
Past due within 30 days |
7,696,230 | 10,248,634 | 9,062,799 | 6,467,898 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 78,844,389 | $ | 57,777,586 | $ | 64,386,937 | $ | 45,830,288 | |||||||||
|
|
|
|
|
|
|
|
- 17 -
Movements of the allowance for doubtful receivables
Nine Months Ended September 30 |
||||||||
2013 | 2012 | |||||||
Balance, beginning of the period |
$ | 480,212 | $ | 490,952 | ||||
Provision (reversal) |
9,380 | (3 | ) | |||||
Write-off |
| (1,272 | ) | |||||
Effect of deconsolidation of subsidiary |
(3,157 | ) | | |||||
Effect of exchange rate changes |
63 | (87 | ) | |||||
|
|
|
|
|||||
Balance, end of the period |
$ | 486,498 | $ | 489,590 | ||||
|
|
|
|
Aging analysis of accounts receivable that is individually determined to be impaired
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Not past due |
$ | 7,557 | $ | 160,354 | $ | 125,474 | $ | 81,017 | ||||||||
Past due 1-30 days |
6,832 | 2,863 | 10,165 | 24,351 | ||||||||||||
Past due 31-60 days |
4,576 | | | 4,684 | ||||||||||||
Past due over 120 days |
| 3,157 | | 9,769 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 18,965 | $ | 166,374 | $ | 135,639 | $ | 119,821 | |||||||||
|
|
|
|
|
|
|
|
The Company held bank guarantees and other credit enhancements as collateral for certain impaired accounts receivables. As of September 30, 2013, December 31, 2012, September 30, 2012 and January 1, 2012, the amount of the bank guarantee and other credit enhancements were US$9 thousand, US$1,000 thousand, US$1,985 thousand and US$2,962 thousand, respectively.
12. | INVENTORIES |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Finished goods |
$ | 6,696,080 | $ | 6,244,824 | $ | 4,255,500 | $ | 3,347,849 | ||||||||
Work in process |
25,528,912 | 25,713,217 | 24,686,231 | 17,940,960 | ||||||||||||
Raw materials |
2,889,113 | 3,864,105 | 2,429,431 | 1,808,615 | ||||||||||||
Supplies and spare parts |
1,802,422 | 2,008,352 | 1,877,883 | 1,743,158 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 36,916,527 | $ | 37,830,498 | $ | 33,249,045 | $ | 24,840,582 | |||||||||
|
|
|
|
|
|
|
|
Write-down of inventories to net realizable value was included in the cost of revenue, which was as follows:
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Inventory losses |
$ | 252,245 | $ | 443,728 | $ | 489,414 | $ | 1,485,371 | ||||||||
|
|
|
|
|
|
|
|
- 18 -
13. | FINANCIAL ASSETS CARRIED AT COST |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Non-publicly traded stocks |
$ | 1,844,469 | $ | 3,314,713 | $ | 3,689,527 | $ | 4,004,314 | ||||||||
Mutual funds |
280,038 | 290,364 | 291,724 | 310,691 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,124,507 | $ | 3,605,077 | $ | 3,981,251 | $ | 4,315,005 | |||||||||
|
|
|
|
|
|
|
|
Since there is a wide range of estimated fair values of the Companys investments in non-publicly traded stocks, the Company concludes that the fair value cannot be reliably measured and therefore should be measured at the cost less any impairment.
The Company recognized impairment loss on financial assets carried at cost in the amount of NT$1,495,454 thousand and NT$160 thousand for the three months ended September 30, 2013 and 2012, respectively; and of NT$1,541,170 thousand and NT$71,087 thousand for the nine months ended September 30, 2013 and 2012, respectively.
14. | INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
Investments accounted for using the equity method consisted of the following:
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Associates |
$ | 22,459,686 | $ | 20,325,277 | $ | 20,993,580 | $ | 22,033,567 | ||||||||
Jointly controlled entities |
3,444,234 | 3,035,641 | 2,913,578 | 2,853,364 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 25,903,920 | $ | 23,360,918 | $ | 23,907,158 | $ | 24,886,931 | |||||||||
|
|
|
|
|
|
|
|
a. | Investments in associates |
Associates consisted of the following:
Place of Incorporation and |
Carrying Amount | % of Ownership and Voting Rights Held by the Company | ||||||||||||||||||||||||||||||||||
Name of Associate | Principal Activities | September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||||||||||||||||
Vanguard International Semiconductor Corporation (VIS) |
Research, design, development, manufacture, packaging, testing and sale of memory integrated circuits, LSI, VLSI and related parts |
Hsinchu, Taiwan | $ | 10,107,307 | $ | 9,406,597 | $ | 9,121,036 | $ | 8,985,340 | 39 | % | 40 | % | 41 | % | 39 | % | ||||||||||||||||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) |
Fabrication and supply of integrated circuits |
Singapore | 6,870,266 | 6,710,956 | 6,253,232 | 6,289,429 | 39 | % | 39 | % | 39 | % | 39 | % | ||||||||||||||||||||||
Motech Industries, Inc. (Motech) |
Manufacturing and sales of solar cells, crystalline silicon solar cell, and test and measurement instruments and design and construction of solar power systems |
Taipei, Taiwan | 2,713,227 | 2,992,899 | 4,449,280 | 5,609,002 | 20 | % | 20 | % | 20 | % | 20 | % | ||||||||||||||||||||||
Xintec |
Wafer level chip size packaging service |
Taoyuan, Taiwan | 1,785,184 | | | | 40 | % | | | | |||||||||||||||||||||||||
Global Unichip Corporation (GUC) |
Researching, developing, manufacturing, testing and marketing of integrated circuits |
Hsinchu, Taiwan | 983,702 | 1,214,825 | 1,170,032 | 1,149,796 | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||||||||||||||||
Mcube Inc. (Mcube) |
Research, development, and sale of micro-semiconductor device |
Delaware, U.S.A. | | | | | | 25 | % | 25 | % | 25 | % | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
$ | 22,459,686 | $ | 20,325,277 | $ | 20,993,580 | $ | 22,033,567 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
- 19 -
Since TSMC did not participate in Mcubes issuance of new shares in the third quarter of 2013, the Companys percentage of ownership in Mcube decreased to 18%. As a result, after reassessment, the Company did not exercise significant influence over Mcube and therefore, Mcube is no longer accounted for using the equity method. Further, such investment was reclassified to financial assets carried at cost. The Company also measured the fair value of retained interest in Mcube when the significant influence was lost, which has no difference with the carrying amount; accordingly, the Company did not recognize any gain or loss.
TSMC has no power to govern the financial and operating policies of Xintec starting June 2013 due to the loss of power to cast the majority of votes at meetings of the Board of Directors. As a result, Xintec is no longer consolidated and is accounted for using the equity method. Please refer to Note 34.
In the fourth quarter of 2012, the Company recognized an impairment loss in the amount of NT$1,186,674 thousand due to the lower estimated recoverable amount compared with the carrying amount of its investments in stocks traded on the Taiwan GreTai Securities Market.
In February 2010, the Company acquired 75,316 thousand shares of Motech through a private placement for NT$6,228,661 thousand; following such acquisition, the Companys percentage of ownership in Motech was 20%. Transfer of the aforementioned common shares within three years from the acquisition date is prohibited unless permitted by other related regulations.
Financial information of the Companys associates was summarized as follows:
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Total assets |
$ | 86,577,100 | $ | 76,889,298 | $ | 78,210,258 | $ | 79,721,042 | ||||||||
Total liabilities |
(25,288,666 | ) | (21,683,504 | ) | (23,922,106 | ) | (20,948,855 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net assets |
$ | 61,288,434 | $ | 55,205,794 | $ | 54,288,152 | $ | 58,772,187 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The Companys share of net assets of associates |
$ | 22,459,686 | $ | 20,325,277 | $ | 20,993,580 | $ | 22,033,567 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue |
$ | 16,901,548 | $ | 14,721,518 | $ | 45,692,397 | $ | 41,525,415 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 3,107,787 | $ | 1,230,675 | $ | 6,806,119 | $ | 1,170,094 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The Companys share of profits of associates |
$ | 969,247 | $ | 558,002 | $ | 2,420,334 | $ | 852,523 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The Companys share of other comprehensive income (loss) of associates |
$ | 1,108 | $ | 3,115 | $ | 28,292 | $ | (6,682 | ) | |||||||
|
|
|
|
|
|
|
|
The market prices of the investments accounted for using the equity method in publicly traded stocks calculated by the closing price at the balance sheet date are summarized as follows:
Name of Associate | September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
||||||||||||
VIS |
$ | 20,323,030 | $ | 12,658,703 | $ | 11,370,845 | $ | 6,627,758 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Motech |
$ | 4,435,225 | $ | 2,383,824 | $ | 2,703,125 | $ | 4,645,176 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
GUC |
$ | 4,066,513 | $ | 4,692,130 | $ | 5,439,136 | $ | 4,645,442 | ||||||||
|
|
|
|
|
|
|
|
- 20 -
b. | Investments in jointly controlled entities |
Jointly controlled entities consisted of the following:
Name of Jointly Controlled Entity |
Principal Activities | Place of Incorporation and Operation |
Carrying Amount | % of Ownership and Voting Rights Held by the Company | ||||||||||||||||||||||||||||||||
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||||||||||||||||||
VisEra Holding Company (VisEra Holding) |
Investing in companies involved in the design, manufacturing and other related businesses in the semiconductor industry |
Cayman Islands |
$ | 3,444,234 | $ | 3,035,641 | $ | 2,913,578 | $ | 2,853,364 | 49 | % | 49 | % | 49 | % | 49 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
Financial information of the Companys jointly controlled entities was summarized as follows:
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Current assets |
$ | 2,221,606 | $ | 1,887,122 | $ | 1,531,298 | $ | 1,616,916 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Noncurrent assets |
$ | 1,641,911 | $ | 1,780,903 | $ | 1,975,543 | $ | 1,732,247 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Current liabilities |
$ | 418,821 | $ | 631,803 | $ | 592,516 | $ | 495,066 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Noncurrent liabilities |
$ | 462 | $ | 581 | $ | 747 | $ | 733 | ||||||||
|
|
|
|
|
|
|
|
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue |
$ | 482,576 | $ | 546,251 | $ | 1,463,662 | $ | 1,251,020 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of revenue |
$ | 311,902 | $ | 334,873 | $ | 905,720 | $ | 856,342 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
$ | 34,084 | $ | 30,024 | $ | 99,545 | $ | 90,615 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-operating income, net |
$ | 31,673 | $ | 3,205 | $ | 39,287 | $ | 193,414 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
$ | 24,267 | $ | 30,375 | $ | 91,118 | $ | 11,739 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The Companys share of profits of joint venture |
$ | 143,996 | $ | 154,184 | $ | 406,566 | $ | 485,738 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
The Companys share of other comprehensive income (loss) of joint venture |
$ | 36,839 | $ | 44,959 | $ | (47,216 | ) | $ | 75,143 | |||||||
|
|
|
|
|
|
|
|
15. | PROPERTY, PLANT AND EQUIPMENT |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Land and land improvements |
$ | 3,586,612 | $ | 1,159,755 | $ | 1,170,071 | $ | 1,185,573 | ||||||||
Buildings |
105,868,005 | 85,610,120 | 86,982,731 | 71,915,740 | ||||||||||||
Machinery and equipment |
427,938,323 | 404,382,298 | 418,513,468 | 294,814,381 | ||||||||||||
Office equipment |
7,689,194 | 6,907,376 | 6,558,696 | 5,148,538 | ||||||||||||
Assets under finance leases |
421,911 | 438,663 | 444,782 | 493,945 | ||||||||||||
Advance payments and construction in progress |
182,211,979 | 119,063,976 | 66,444,314 | 116,863,976 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 727,716,024 | $ | 617,562,188 | $ | 580,114,062 | $ | 490,422,153 | |||||||||
|
|
|
|
|
|
|
|
- 21 -
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Balance, Beginning of Period |
Additions | Disposals | Reclassification | Effect of Deconsolidation of Subsidiary |
Effect of Exchange Rate Changes |
Balance, End of Period |
||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Land and land improvements |
$ | 1,527,124 | $ | 3,212,000 | $ | | $ | | $ | (772,029 | ) | $ | 13,860 | $ | 3,980,955 | |||||||||||||
Buildings |
197,411,851 | 30,371,814 | | 3,797 | (986,205 | ) | 586,240 | 227,387,497 | ||||||||||||||||||||
Machinery and equipment |
1,279,893,177 | 127,162,251 | (2,094,599 | ) | | (5,630,854 | ) | 1,628,558 | 1,400,958,533 | |||||||||||||||||||
Office equipment |
20,067,943 | 3,006,548 | (506,366 | ) | | (1,055,809 | ) | 29,489 | 21,541,805 | |||||||||||||||||||
Assets under finance leases |
766,732 | | | | | 24,593 | 791,325 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,499,666,827 | $ | 163,752,613 | $ | (2,600,965 | ) | $ | 3,797 | $ | (8,444,897 | ) | $ | 2,282,740 | 1,654,660,115 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Accumulated depreciation and impairment |
||||||||||||||||||||||||||||
Land improvements |
367,369 | $ | 20,332 | $ | | $ | | $ | | $ | 6,642 | 394,343 | ||||||||||||||||
Buildings |
111,801,731 | 9,642,611 | | | (226,908 | ) | 302,058 | 121,519,492 | ||||||||||||||||||||
Machinery and equipment |
875,510,879 | 101,931,987 | (2,024,038 | ) | | (3,656,326 | ) | 1,257,708 | 973,020,210 | |||||||||||||||||||
Office equipment |
13,160,567 | 1,774,915 | (506,117 | ) | | (599,483 | ) | 22,729 | 13,852,611 | |||||||||||||||||||
Assets under finance leases |
328,069 | 30,936 | | | | 10,409 | 369,414 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,001,168,615 | $ | 113,400,781 | $ | (2,530,155 | ) | $ | | $ | (4,482,717 | ) | $ | 1,599,546 | 1,109,156,070 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Advance payments and construction in progress |
119,063,976 | $ | 64,777,969 | $ | | $ | | $ | (1,632,860 | ) | $ | 2,894 | 182,211,979 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 617,562,188 | $ | 727,716,024 | |||||||||||||||||||||||||
|
|
|
|
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
Balance, Beginning of Period |
Additions (Deductions) |
Disposals | Impairment | Reclassification | Effect of Exchange Rate Changes |
Balance, End of Period |
||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Land and land improvements |
$ | 1,541,128 | $ | 18,500 | $ | | $ | | $ | | $ | (25,431 | ) | $ | 1,534,197 | |||||||||||||
Buildings |
172,997,391 | 23,699,216 | (53,487 | ) | | | (772,172 | ) | 195,870,948 | |||||||||||||||||||
Machinery and equipment |
1,057,926,529 | 208,463,387 | (1,125,566 | ) | | (35 | ) | (2,354,872 | ) | 1,262,909,443 | ||||||||||||||||||
Office equipment |
17,041,306 | 2,790,915 | (472,763 | ) | | 35 | (75,533 | ) | 19,283,960 | |||||||||||||||||||
Assets under finance leases |
791,480 | | | | | (31,217 | ) | 760,263 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1,250,297,834 | $ | 234,972,018 | $ | (1,651,816 | ) | $ | | $ | | $ | (3,259,225 | ) | 1,480,358,811 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Accumulated depreciation and impairment |
||||||||||||||||||||||||||||
Land improvements |
355,555 | $ | 20,335 | $ | | $ | | $ | | $ | (11,764 | ) | 364,126 | |||||||||||||||
Buildings |
101,081,651 | 8,248,043 | (43,387 | ) | | | (398,090 | ) | 108,888,217 | |||||||||||||||||||
Machinery and equipment |
763,112,148 | 83,843,149 | (1,028,311 | ) | 422,323 | (8 | ) | (1,953,326 | ) | 844,395,975 | ||||||||||||||||||
Office equipment |
11,892,768 | 1,359,994 | (464,794 | ) | | 8 | (62,712 | ) | 12,725,264 | |||||||||||||||||||
Assets under finance leases |
297,535 | 30,166 | | | | (12,220 | ) | 315,481 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
876,739,657 | $ | 93,501,687 | $ | (1,536,492 | ) | $ | 422,323 | $ | | $ | (2,438,112 | ) | 966,689,063 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Advance payments and construction in progress |
116,863,976 | $ | (50,318,756 | ) | $ | | $ | | $ | (2,086 | ) | $ | (98,820 | ) | 66,444,314 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 490,422,153 | $ | 580,114,062 | |||||||||||||||||||||||||
|
|
|
|
The significant part of the Companys buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
For the nine months ended September 30, 2012, the Company recognized impairment loss of NT$422,323 thousand related to property, plant and equipment of the foundry reportable segment since the carrying amount of some of property, plant and equipment is expected to be unrecoverable.
The Company entered into agreements to lease buildings from December 2003 to November 2018 that qualify as finance leases.
Future minimum lease gross payments were as follows:
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Minimum lease payments |
||||||||||||||||
Not later than 1 year |
$ | 27,912 | $ | 27,042 | $ | 26,809 | $ | | ||||||||
Later than 1 year and not later than 5 years |
111,648 | 108,168 | 107,236 | 223,296 | ||||||||||||
Later than five years |
725,137 | 729,566 | 723,303 | 780,962 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
864,697 | 864,776 | 857,348 | 1,004,258 | |||||||||||||
Less: Future finance expenses |
97,353 | 108,471 | 112,244 | 133,265 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Present value of minimum lease payments |
$ | 767,344 | $ | 756,305 | $ | 745,104 | $ | 870,993 | ||||||||
|
|
|
|
|
|
|
|
(Continued)
- 22 -
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Present value of minimum lease payments |
||||||||||||||||
Not later than 1 year |
$ | 27,231 | $ | 26,382 | $ | 26,156 | $ | | ||||||||
Later than 1 year and not later than 5 years |
102,443 | 100,821 | 98,397 | 213,411 | ||||||||||||
Later than five years |
637,670 | 629,102 | 620,551 | 657,582 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 767,344 | $ | 756,305 | $ | 745,104 | $ | 870,993 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | 8,612 | $ | 8,190 | $ | 8,070 | $ | | ||||||||
Noncurrent portion |
758,732 | 748,115 | 737,034 | 870,993 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 767,344 | $ | 756,305 | $ | 745,104 | $ | 870,993 | |||||||||
|
|
|
|
|
|
|
|
(Concluded)
There was no capitalization of interest for the nine months ended September 30, 2013. During the nine months ended September 30, 2012, the Company capitalized the borrowing costs directly attributable to the acquisition or construction of property, plant and equipment. For the three months and the nine months ended September 30, 2012, the amount of capitalized interest was nil and NT$6,442 thousand, respectively, and the capitalized interest rate was 1.08%-1.20%.
16. | INTANGIBLE ASSETS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Goodwill |
$ | 5,596,319 | $ | 5,523,707 | $ | 5,560,762 | $ | 5,693,999 | ||||||||
Technology license fees |
1,174,288 | 1,461,893 | 1,548,893 | 1,682,892 | ||||||||||||
Software and system design costs |
3,666,125 | 2,968,942 | 2,627,158 | 2,366,483 | ||||||||||||
Patent and others |
956,548 | 1,005,027 | 1,152,041 | 1,118,189 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 11,393,280 | $ | 10,959,569 | $ | 10,888,854 | $ | 10,861,563 | |||||||||
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Balance, Beginning of Period |
Additions | Disposals | Reclassification | Effect of Deconsolidation of Subsidiary |
Effect of Exchange Rate Changes |
Balance, End of Period |
||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
Goodwill |
$ | 5,523,707 | $ | | $ | | $ | | $ | | $ | 72,612 | $ | 5,596,319 | ||||||||||||||
Technology license fees |
4,590,548 | | | (29,565 | ) | (113,340 | ) | (1,164 | ) | 4,446,479 | ||||||||||||||||||
Software and system design costs |
15,095,421 | 1,809,264 | (17,486 | ) | (110,746 | ) | (25,335 | ) | 3,498 | 16,754,616 | ||||||||||||||||||
Patent and others |
3,094,664 | 287,840 | (23,549 | ) | 101,007 | (42,089 | ) | 3,662 | 3,421,535 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
28,304,340 | $ | 2,097,104 | $ | (41,035 | ) | $ | (39,304 | ) | $ | (180,764 | ) | $ | 78,608 | 30,218,949 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Accumulated amortization |
||||||||||||||||||||||||||||
Technology license fees |
3,128,655 | $ | 211,287 | $ | | $ | | $ | (66,587 | ) | $ | (1,164 | ) | 3,272,191 | ||||||||||||||
Software and system design costs |
12,126,479 | 994,698 | (17,214 | ) | (5,942 | ) | (12,661 | ) | 3,131 | 13,088,491 | ||||||||||||||||||
Patent and others |
2,089,637 | 423,497 | (23,549 | ) | | (25,195 | ) | 597 | 2,464,987 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
17,344,771 | $ | 1,629,482 | $ | (40,763 | ) | $ | (5,942 | ) | $ | (104,443 | ) | $ | 2,564 | 18,825,669 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 10,959,569 | $ | 11,393,280 | |||||||||||||||||||||||||
|
|
|
|
- 23 -
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Balance, Beginning of Period |
Additions | Disposals | Reclassification | Effect of Exchange Rate Changes |
Balance, End of Period |
|||||||||||||||||||
Cost |
||||||||||||||||||||||||
Goodwill |
$ | 5,693,999 | $ | | $ | | $ | | $ | (133,237 | ) | $ | 5,560,762 | |||||||||||
Technology license fees |
4,370,173 | 29,565 | | 191,580 | (527 | ) | 4,590,791 | |||||||||||||||||
Software and system design costs |
13,438,579 | 1,162,867 | (48,201 | ) | (91,904 | ) | (5,114 | ) | 14,456,227 | |||||||||||||||
Patent and others |
2,670,031 | 422,527 | (91,844 | ) | 93,990 | (4,641 | ) | 3,090,063 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
26,172,782 | $ | 1,614,959 | $ | (140,045 | ) | $ | 193,666 | $ | (143,519 | ) | 27,697,843 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated amortization |
||||||||||||||||||||||||
Technology license fees |
2,687,281 | $ | 354,029 | $ | | $ | | $ | 588 | 3,041,898 | ||||||||||||||
Software and system design costs |
11,072,096 | 846,409 | (48,201 | ) | (36,552 | ) | (4,683 | ) | 11,829,069 | |||||||||||||||
Patent and others |
1,551,842 | 442,166 | (91,844 | ) | 36,552 | (694 | ) | 1,938,022 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
15,311,219 | $ | 1,642,604 | $ | (140,045 | ) | $ | | $ | (4,789 | ) | 16,808,989 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 10,861,563 | $ | 10,888,854 | |||||||||||||||||||||
|
|
|
|
The recoverable amount of the Companys goodwill has been tested for impairment at the end of the annual reporting period and was determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering future five-year period, and the Company used annual discount rate of 9.00% and 9.68% in its test of impairment as of December 31, 2012 and 2011, respectively, to reflect the relevant specific risk in the cash-generating unit.
For the nine months ended September 30, 2013 and 2012, the Company did not recognize any impairment loss on goodwill.
17. | OTHER ASSETS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Tax receivable |
$ | 1,471,795 | $ | 1,565,104 | $ | 1,462,504 | $ | 708,891 | ||||||||
Prepaid expenses |
1,258,358 | 1,080,236 | 1,042,826 | 1,436,416 | ||||||||||||
Long-term receivable |
796,400 | 767,800 | 756,400 | 785,400 | ||||||||||||
Others |
630,160 | 608,412 | 590,813 | 550,053 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,156,713 | $ | 4,021,552 | $ | 3,852,543 | $ | 3,480,760 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | 2,740,765 | $ | 2,786,408 | $ | 2,639,414 | $ | 2,174,014 | ||||||||
Noncurrent portion |
1,415,948 | 1,235,144 | 1,213,129 | 1,306,746 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 4,156,713 | $ | 4,021,552 | $ | 3,852,543 | $ | 3,480,760 | |||||||||
|
|
|
|
|
|
|
|
- 24 -
18. | SHORT-TERM LOANS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Unsecured loans |
||||||||||||||||
Amount |
$ | 18,053,096 | $ | 34,714,929 | $ | 29,749,650 | $ | 25,926,528 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Original loan content |
||||||||||||||||
US$ (in thousands) |
$ | 610,500 | $ | 1,195,500 | $ | 1,015,000 | $ | 856,000 | ||||||||
Annual interest rate |
0.38%-0.40% | 0.39%-0.58% | 0.42%-0.65% | 0.45%-1.00% | ||||||||||||
Maturity date |
|
Due in October 2013 |
|
|
Due in January 2013 |
|
|
Due in October 2012 |
|
|
Due by February 2012 |
|
19. | PROVISIONS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Sales returns and allowances |
$ | 6,720,214 | $ | 6,038,003 | $ | 6,900,184 | $ | 5,068,263 | ||||||||
Warranties |
7,344 | 4,891 | 3,619 | 2,889 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,727,558 | $ | 6,042,894 | $ | 6,903,803 | $ | 5,071,152 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | 6,720,214 | $ | 6,038,003 | $ | 6,900,184 | $ | 5,068,263 | ||||||||
Noncurrent portion |
7,344 | 4,891 | 3,619 | 2,889 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 6,727,558 | $ | 6,042,894 | $ | 6,903,803 | $ | 5,071,152 | |||||||||
|
|
|
|
|
|
|
|
Sales Returns and Allowances |
Warranties | Total | ||||||||||
Nine months ended September 30, 2013 |
||||||||||||
Balance, beginning of period |
$ | 6,038,003 | $ | 4,891 | $ | 6,042,894 | ||||||
Provision |
3,798,683 | 3,687 | 3,802,370 | |||||||||
Payment |
(3,086,482 | ) | (1,361 | ) | (3,087,843 | ) | ||||||
Effect of deconsolidation of subsidiary |
(37,748 | ) | | (37,748 | ) | |||||||
Effect of exchange rate changes |
7,758 | 127 | 7,885 | |||||||||
|
|
|
|
|
|
|||||||
Balance, end of period |
$ | 6,720,214 | $ | 7,344 | $ | 6,727,558 | ||||||
|
|
|
|
|
|
|||||||
Nine months ended September 30, 2012 |
||||||||||||
Balance, beginning of period |
$ | 5,068,263 | $ | 2,889 | $ | 5,071,152 | ||||||
Provision |
6,462,738 | 820 | 6,463,558 | |||||||||
Payment |
(4,624,281 | ) | | (4,624,281 | ) | |||||||
Effect of exchange rate changes |
(6,536 | ) | (90 | ) | (6,626 | ) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of period |
$ | 6,900,184 | $ | 3,619 | $ | 6,903,803 | ||||||
|
|
|
|
|
|
Provisions for sales returns and allowances are estimated based on historical experience, management judgment and any known factors that would significantly affect the returns and allowances, and are recognized as a reduction of revenue in the same period of the related product sales.
- 25 -
The provision for warranties represents the present value of the Companys best estimate of the future outflow of the economic benefits that will be required under the Companys obligations for warranties. The estimate has been made on the basis of historical warranty trends of business and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
20. | BONDS PAYABLE |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Domestic unsecured bonds |
$ | 166,200,000 | $ | 80,000,000 | $ | 75,600,000 | $ | 22,500,000 | ||||||||
Overseas unsecured bonds |
44,356,500 | | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
210,556,500 | 80,000,000 | 75,600,000 | 22,500,000 | |||||||||||||
Less: Discounts on bonds payable |
140,066 | | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 210,416,434 | $ | 80,000,000 | $ | 75,600,000 | $ | 22,500,000 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | | $ | | $ | | $ | 4,500,000 | ||||||||
Noncurrent portion |
210,416,434 | 80,000,000 | 75,600,000 | 18,000,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 210,416,434 | $ | 80,000,000 | $ | 75,600,000 | $ | 22,500,000 | |||||||||
|
|
|
|
|
|
|
|
The major terms of domestic unsecured bonds are as follows:
Issuance | Tranche | Issuance Period | Total Amount | Coupon Rate |
Repayment and Interest Payment | |||||
100-1 |
A | September 2011 to September 2016 | $10,500,000 | 1.40% | Bullet repayment; | |||||
B | September 2011 to September 2018 | 7,500,000 | 1.63% | | ||||||
100-2 |
A | January 2012 to January 2017 | 10,000,000 | 1.29% | | |||||
B | January 2012 to January 2019 | 7,000,000 | 1.46% | | ||||||
101-1 |
A | August 2012 to August 2017 | 9,900,000 | 1.28% | | |||||
B | August 2012 to August 2019 | 9,000,000 | 1.40% | | ||||||
101-2 |
A | September 2012 to September 2017 | 12,700,000 | 1.28% | | |||||
B | September 2012 to September 2019 | 9,000,000 | 1.39% | | ||||||
101-3 |
| October 2012 to October 2022 | 4,400,000 | 1.53% | | |||||
101-4 |
A | January 2013 to January 2018 | 10,600,000 | 1.23% | | |||||
B | January 2013 to January 2020 | 10,000,000 | 1.35% | | ||||||
C | January 2013 to January 2023 | 3,000,000 | 1.49% | |
(Continued)
- 26 -
Issuance | Tranche | Issuance Period | Total Amount | Coupon Rate |
Repayment and Interest Payment | |||||
102-1 |
A | February 2013 to February 2018 | $6,200,000 | 1.23% | Bullet repayment; | |||||
B | February 2013 to February 2020 |
11,600,000 | 1.38% | | ||||||
C | February 2013 to February 2023 |
3,600,000 | 1.50% | | ||||||
102-2 |
A | July 2013 to July 2020 |
10,200,000 | 1.50% | | |||||
B | July 2013 to July 2023 |
3,500,000 | 1.70% | | ||||||
102-3 |
A | August 2013 to August 2017 |
4,000,000 | 1.34% | | |||||
B | August 2013 to August 2019 |
8,500,000 | 1.52% | | ||||||
102-4 |
A | September 2013 to September 2016 |
1,500,000 | 1.35% | | |||||
B | September 2013 to September 2017 |
1,500,000 | 1.45% | | ||||||
C | September 2013 to March 2019 |
1,400,000 | 1.60% | Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) | ||||||
D | September 2013 to March 2021 |
2,600,000 | 1.85% | | ||||||
E | September 2013 to March 2023 |
5,400,000 | 2.05% | | ||||||
F | September 2013 to September 2023 |
2,600,000 | 2.10% | Bullet repayment; interest payable annually | ||||||
Domestic 5th |
C | January 2002 to January 2012 |
4,500,000 | 3.00% | |
(Concluded)
The major terms of overseas unsecured bonds are as follows:
Issuance Period | Total Amount (US$) |
Coupon Rate | Repayment and Interest Payment | |||
April 2013 to April 2016 |
$350,000 | 0.95% | Bullet repayment; interest payable semi-annually | |||
April 2013 to April 2018 |
1,150,000 | 1.625% | |
- 27 -
21. | LONG-TERM BANK LOANS |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Bank loans for working capital: |
||||||||||||||||
Repayable from April 2016 in 16 quarterly installments, annual interest rate at 3.63% in 2013 |
$ | 40,000 | $ | | $ | | $ | | ||||||||
Repayable in full in one lump sum payment in June 2016 but repaid earlier of NT$100,000 thousand in September 2012, annual interest rate at 1.08%-1.21% in 2012 |
| 550,000 | 550,000 | 650,000 | ||||||||||||
Repayable in full in one lump sum payment in March 2015 but repaid earlier of NT$50,000 thousand in August 2012, annual interest rate at 1.16%-1.18% in 2012 |
| 450,000 | 450,000 | 500,000 | ||||||||||||
Repayable from July 2012 in 16 quarterly installments, annual interest rate at 1.21%-1.24% in 2012 |
| 262,500 | 281,250 | 300,000 | ||||||||||||
Repayable from September 2012 in 16 quarterly installments, annual interest rate at 1.21%-1.24% in 2012 |
| 175,000 | 187,500 | 200,000 | ||||||||||||
Repayable from October 2013 in 16 quarterly installments, annual interest rate at 1.23%-1.24% in 2012 |
| 50,000 | 50,000 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 40,000 | $ | 1,487,500 | $ | 1,518,750 | $ | 1,650,000 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion |
$ | | $ | 128,125 | $ | 125,000 | $ | 62,500 | ||||||||
Noncurrent portion |
40,000 | 1,359,375 | 1,393,750 | 1,587,500 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 40,000 | $ | 1,487,500 | $ | 1,518,750 | $ | 1,650,000 | |||||||||
|
|
|
|
|
|
|
|
As of September 30, 2013, some of the long-term bank loans were amounted to nil as a result of deconsolidation of Xintec in June 2013 (refer to Note 34).
- 28 -
22. | OTHER LONG-TERM PAYABLES |
September 30, 2013 |
December 31, 2012 |
September 30, 2012 |
January 1, 2012 |
|||||||||||||
Payables for software and system design costs |
$ | 54,000 | $ | 113,000 | $ | 113,000 | $ | | ||||||||
Payables for acquisition of property, plant and equipment |
| 825,447 | 818,361 | 3,399,855 | ||||||||||||
Payables for technology transfer |
| 29,038 | 29,310 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 54,000 | $ | 967,485 | $ | 960,671 | $ | 3,399,855 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Current portion (classified under accrued expenses and other current liabilities) |
$ | 18,000 | $ | 913,485 | $ | 906,671 | $ | 3,399,855 | ||||||||
Noncurrent portion |
36,000 | 54,000 | 54,000 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 54,000 | $ | 967,485 | $ | 960,671 | $ | 3,399,855 | |||||||||
|
|