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 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the Month of November 2019
_________________________
Taiwan Semiconductor Manufacturing Company Ltd.
(Translation of Registrant’s 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 ☒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 ☒
(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82: _______.)
|
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 19, 2019 |
By |
/s/ Wendell Huang |
|
|
|
Wendell Huang |
|
|
|
Vice President & Chief Financial Officer |
Exhibit Number |
|
Exhibit Description |
99.1 |
|
|
|
|
|
English Translation of Financial Statements Originally Issued in Chinese
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2019 and 2018 and
Independent Auditors’ Review Report
- 0 -
勤業眾信
勤業眾信聯合會計師事務所
11073 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 11073, Taiwan
Tel :+886 (2) 2725-9988
Fax:+886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS’ REVIEW REPORT
The Board of Directors and Shareholders
Taiwan Semiconductor Manufacturing Company Limited
Introduction
We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of September 30, 2019 and 2018, the related consolidated statements of comprehensive income for the three months ended September 30, 2019 and 2018 and for the nine months ended September 30, 2019 and 2018, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
We conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects the consolidated financial position of the Company as of September 30, 2019 and 2018, its consolidated financial performance for the three months ended September 30, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2019 and 2018 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
1
The engagement partners on the reviews resulting in this independent auditors’ review report are Mei Yen Chiang and Yu Feng Huang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
November 12, 2019
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance 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 applied in the Republic of China.
For the convenience of readers, the independent auditors’ 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 independent auditors’ review report and consolidated financial statements shall prevail.
2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
|
September 30, 2019 (Reviewed) |
|
December 31, 2018 (Audited) |
|
September 30, 2018 (Reviewed) |
|||||||
ASSETS |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (Note 6) |
|
$ 452,430,300 |
|
21 |
|
$ 577,814,601 |
|
28 |
|
$ 488,732,121 |
|
25 |
Financial assets at fair value through profit or loss (Note 7) |
|
322,089 |
|
- |
|
3,504,590 |
|
- |
|
4,057,240 |
|
- |
Financial assets at fair value through other comprehensive income (Note 8) |
|
132,133,452 |
|
6 |
|
99,561,740 |
|
5 |
|
99,214,066 |
|
5 |
Financial assets at amortized cost (Note 9) |
|
- |
|
- |
|
14,277,615 |
|
1 |
|
11,891,845 |
|
1 |
Hedging financial assets (Note 10) |
|
37,003 |
|
- |
|
23,497 |
|
- |
|
124,242 |
|
- |
Notes and accounts receivable, net (Note 11) |
|
144,240,857 |
|
7 |
|
128,613,391 |
|
6 |
|
127,782,905 |
|
7 |
Receivables from related parties (Note 30) |
|
1,180,780 |
|
- |
|
584,412 |
|
- |
|
1,757,073 |
|
- |
Other receivables from related parties (Note 30) |
|
56,581 |
|
- |
|
65,028 |
|
- |
|
64,385 |
|
- |
Inventories (Note 12) |
|
96,685,730 |
|
5 |
|
103,230,976 |
|
5 |
|
105,336,576 |
|
5 |
Other financial assets (Note 31) |
|
17,714,646 |
|
1 |
|
18,597,448 |
|
1 |
|
15,178,774 |
|
1 |
Other current assets |
|
4,625,998 |
|
- |
|
5,406,423 |
|
- |
|
5,084,478 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
849,427,436 |
|
40 |
|
951,679,721 |
|
46 |
|
859,223,705 |
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCURRENT ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through other comprehensive income (Note 8) |
|
4,026,516 |
|
- |
|
3,910,681 |
|
- |
|
5,701,354 |
|
- |
Financial assets at amortized cost (Note 9) |
|
7,914,087 |
|
- |
|
7,528,277 |
|
- |
|
7,470,742 |
|
- |
Investments accounted for using equity method (Note 13) |
|
18,193,969 |
|
1 |
|
17,865,838 |
|
1 |
|
16,630,670 |
|
1 |
Property, plant and equipment (Note 14) |
|
1,197,955,298 |
|
56 |
|
1,072,050,279 |
|
51 |
|
1,048,516,835 |
|
53 |
Right-of-use assets (Notes 4 and 15) |
|
17,506,826 |
|
1 |
|
- |
|
- |
|
- |
|
- |
Intangible assets (Note 16) |
|
18,093,573 |
|
1 |
|
17,002,137 |
|
1 |
|
13,989,184 |
|
1 |
Deferred income tax assets (Note 4) |
|
17,179,511 |
|
1 |
|
16,806,387 |
|
1 |
|
14,697,325 |
|
1 |
Refundable deposits |
|
2,256,399 |
|
- |
|
1,700,071 |
|
- |
|
1,968,751 |
|
- |
Other noncurrent assets |
|
1,680,835 |
|
- |
|
1,584,647 |
|
- |
|
1,690,222 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noncurrent assets |
|
1,284,807,014 |
|
60 |
|
1,138,448,317 |
|
54 |
|
1,110,665,083 |
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
$ 2,134,234,450 |
|
100 |
|
$ 2,090,128,038 |
|
100 |
|
$ 1,969,888,788 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans (Notes 17 and 28) |
|
$ 85,573,710 |
|
4 |
|
$88,754,640 |
|
4 |
|
$73,974,625 |
|
4 |
Financial liabilities at fair value through profit or loss (Note 7) |
|
497,911 |
|
- |
|
40,825 |
|
- |
|
240,620 |
|
- |
Hedging financial liabilities (Note 10) |
|
23,852 |
|
- |
|
155,832 |
|
- |
|
3,750 |
|
- |
Accounts payable |
|
35,320,208 |
|
2 |
|
32,980,933 |
|
2 |
|
28,733,773 |
|
1 |
Payables to related parties (Note 30) |
|
1,638,009 |
|
- |
|
1,376,499 |
|
- |
|
1,571,303 |
|
- |
Salary and bonus payable |
|
13,573,620 |
|
1 |
|
14,471,372 |
|
1 |
|
11,937,583 |
|
1 |
Accrued profit sharing bonus to employees and compensation to directors and supervisors (Note 27) |
|
16,271,091 |
|
1 |
|
23,981,154 |
|
1 |
|
17,789,768 |
|
1 |
Payables to contractors and equipment suppliers |
|
93,441,774 |
|
4 |
|
43,133,659 |
|
2 |
|
58,590,057 |
|
3 |
Cash dividends payable (Note 20) |
|
116,686,712 |
|
5 |
|
- |
|
- |
|
- |
|
- |
Income tax payable (Note 4) |
|
33,205,431 |
|
2 |
|
38,987,053 |
|
2 |
|
39,157,673 |
|
2 |
Long-term liabilities - current portion (Notes 18 and 28) |
|
31,800,000 |
|
1 |
|
34,900,000 |
|
2 |
|
34,900,000 |
|
2 |
Accrued expenses and other current liabilities (Notes 15, 19, 21 and 28) |
|
66,748,807 |
|
3 |
|
61,760,619 |
|
3 |
|
54,731,050 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
494,781,125 |
|
23 |
|
340,542,586 |
|
17 |
|
321,630,202 |
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONCURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Bonds payable (Notes 18 and 28) |
|
25,100,000 |
|
1 |
|
56,900,000 |
|
3 |
|
56,900,000 |
|
3 |
Deferred income tax liabilities (Note 4) |
|
115,856 |
|
- |
|
233,284 |
|
- |
|
254,887 |
|
- |
Lease liabilities (Notes 4, 15 and 28) |
|
15,031,539 |
|
1 |
|
- |
|
- |
|
- |
|
- |
Net defined benefit liability (Note 4) |
|
9,417,475 |
|
1 |
|
9,651,405 |
|
- |
|
8,788,142 |
|
- |
Guarantee deposits (Notes 19 and 28) |
|
210,198 |
|
- |
|
3,353,378 |
|
- |
|
4,445,580 |
|
- |
Others |
|
2,081,256 |
|
- |
|
1,950,989 |
|
- |
|
2,039,976 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noncurrent liabilities |
|
51,956,324 |
|
3 |
|
72,089,056 |
|
3 |
|
72,428,585 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
546,737,449 |
|
26 |
|
412,631,642 |
|
20 |
|
394,058,787 |
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT |
|
|
|
|
|
|
|
|
|
|
|
|
Capital stock (Note 20) |
|
259,303,805 |
|
12 |
|
259,303,805 |
|
12 |
|
259,303,805 |
|
13 |
Capital surplus (Note 20) |
|
56,320,929 |
|
3 |
|
56,315,932 |
|
3 |
|
56,311,659 |
|
3 |
Retained earnings (Note 20) |
|
|
|
|
|
|
|
|
|
|
|
|
Appropriated as legal capital reserve |
|
311,146,899 |
|
15 |
|
276,033,811 |
|
13 |
|
276,033,811 |
|
14 |
Appropriated as special capital reserve |
|
7,385,940 |
|
- |
|
26,907,527 |
|
1 |
|
26,907,527 |
|
1 |
Unappropriated earnings |
|
963,373,599 |
|
45 |
|
1,073,706,503 |
|
52 |
|
974,796,321 |
|
50 |
|
|
1,281,906,438 |
|
60 |
|
1,376,647,841 |
|
66 |
|
1,277,737,659 |
|
65 |
Others (Note 20) |
|
(10,675,106) |
|
(1) |
|
(15,449,913) |
|
(1) |
|
(18,181,209) |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to shareholders of the parent |
|
1,586,856,066 |
|
74 |
|
1,676,817,665 |
|
80 |
|
1,575,171,914 |
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON - CONTROLLING INTERESTS |
|
640,935 |
|
- |
|
678,731 |
|
- |
|
658,087 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
1,587,497,001 |
|
74 |
|
1,677,496,396 |
|
80 |
|
1,575,830,001 |
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
$ 2,134,234,450 |
|
100 |
|
$ 2,090,128,038 |
|
100 |
|
$ 1,969,888,788 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
- 3 -
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 |
|||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
Amount |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE (Notes 21, 30 and 36) |
|
$ 293,045,439 |
|
100 |
|
$ 260,347,882 |
|
100 |
|
$ 752,748,383 |
|
100 |
|
$ 741,703,364 |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE (Notes 12, 27, 30 and 34) |
|
153,613,278 |
|
52 |
|
136,967,039 |
|
53 |
|
419,290,867 |
|
56 |
|
381,759,723 |
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES |
|
139,432,161 |
|
48 |
|
123,380,843 |
|
47 |
|
333,457,516 |
|
44 |
|
359,943,641 |
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES |
|
(19,727) |
|
- |
|
(14,203) |
|
- |
|
42,535 |
|
- |
|
(188,528) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
139,412,434 |
|
48 |
|
123,366,640 |
|
47 |
|
333,500,051 |
|
44 |
|
359,755,113 |
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES (Notes 27 and 30) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
23,972,076 |
|
8 |
|
21,886,199 |
|
8 |
|
65,783,115 |
|
9 |
|
62,206,346 |
|
8 |
General and administrative |
|
5,810,048 |
|
2 |
|
4,656,730 |
|
2 |
|
14,239,040 |
|
2 |
|
14,579,032 |
|
2 |
Marketing |
|
1,596,829 |
|
1 |
|
1,585,523 |
|
- |
|
4,539,806 |
|
- |
|
4,511,592 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
31,378,953 |
|
11 |
|
28,128,452 |
|
10 |
|
84,561,961 |
|
11 |
|
81,296,970 |
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 15 and 27) |
|
(146,189) |
|
- |
|
6,993 |
|
- |
|
(480,722) |
|
- |
|
(1,957,870) |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS (Note 36) |
|
107,887,292 |
|
37 |
|
95,245,181 |
|
37 |
|
248,457,368 |
|
33 |
|
276,500,273 |
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-OPERATING INCOME AND EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profits of associates |
|
915,714 |
|
- |
|
997,827 |
|
- |
|
1,977,740 |
|
- |
|
1,946,111 |
|
- |
Other income (Note 22) |
|
3,918,123 |
|
1 |
|
3,817,473 |
|
1 |
|
13,118,246 |
|
2 |
|
10,701,950 |
|
2 |
Foreign exchange gain, net (Note 33) |
|
1,038,425 |
|
- |
|
444,202 |
|
- |
|
530,496 |
|
- |
|
2,097,838 |
|
- |
Finance costs (Note 23) |
|
(843,434) |
|
- |
|
(739,068) |
|
- |
|
(2,607,250) |
|
- |
|
(2,175,318) |
|
- |
Other gains and losses, net (Note 24) |
|
(579,849) |
|
- |
|
(868,673) |
|
- |
|
(413,237) |
|
- |
|
(2,642,683) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-operating income and expenses |
|
4,448,979 |
|
1 |
|
3,651,761 |
|
1 |
|
12,605,995 |
|
2 |
|
9,927,898 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX |
|
112,336,271 |
|
38 |
|
98,896,942 |
|
38 |
|
261,063,363 |
|
35 |
|
286,428,171 |
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE (Notes 4 and 25) |
|
11,233,817 |
|
3 |
|
9,798,870 |
|
4 |
|
31,797,748 |
|
5 |
|
35,249,150 |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
101,102,454 |
|
35 |
|
89,098,072 |
|
34 |
|
229,265,615 |
|
30 |
|
251,179,021 |
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 20 and 25) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income |
|
(9,015) |
|
- |
|
(418,111) |
|
- |
|
219,784 |
|
- |
|
(1,306,987) |
|
- |
Gain (loss) on hedging instruments |
|
(87,427) |
|
- |
|
8,544 |
|
- |
|
(75,421) |
|
- |
|
23,887 |
|
- |
Share of other comprehensive loss of associates |
|
(3,333) |
|
- |
|
(9,719) |
|
- |
|
(14,219) |
|
- |
|
(4,106) |
|
- |
Income tax benefit related to items that will not be reclassified subsequently |
|
15,080 |
|
- |
|
30,458 |
|
- |
|
9,586 |
|
- |
|
66,843 |
|
- |
|
|
(84,695) |
|
- |
|
(388,828) |
|
- |
|
139,730 |
|
- |
|
(1,220,363) |
|
- |
Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences arising on translation of foreign operations |
|
(3,286,794) |
|
(2) |
|
(3,457,786) |
|
(1) |
|
2,221,268 |
|
- |
|
10,375,886 |
|
1 |
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income |
|
192,177 |
|
- |
|
(30,572) |
|
- |
|
2,576,461 |
|
1 |
|
(1,040,342) |
|
- |
Share of other comprehensive income (loss) of associates |
|
(45,563) |
|
- |
|
(3,820) |
|
- |
|
(20,328) |
|
- |
|
73,283 |
|
- |
|
|
(3,140,180) |
|
(2) |
|
(3,492,178) |
|
(1) |
|
4,777,401 |
|
1 |
|
9,408,827 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of income tax |
|
(3,224,875) |
|
(2) |
|
(3,881,006) |
|
(1) |
|
4,917,131 |
|
1 |
|
8,188,464 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
$ 97,877,579 |
|
33 |
|
$ 85,217,066 |
|
33 |
|
$ 234,182,746 |
|
31 |
|
$ 259,367,485 |
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the parent |
|
$ 101,069,886 |
|
34 |
|
$ 89,071,628 |
|
34 |
|
$ 229,228,587 |
|
30 |
|
$ 251,146,789 |
|
34 |
Non-controlling interests |
|
32,568 |
|
1 |
|
26,444 |
|
- |
|
37,028 |
|
- |
|
32,232 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 101,102,454 |
|
35 |
|
$ 89,098,072 |
|
34 |
|
$ 229,265,615 |
|
30 |
|
$ 251,179,021 |
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the parent |
|
$ 97,844,981 |
|
33 |
|
$ 85,190,350 |
|
33 |
|
$ 234,145,635 |
|
31 |
|
$ 259,332,283 |
|
35 |
Non-controlling interests |
|
32,598 |
|
- |
|
26,716 |
|
- |
|
37,111 |
|
- |
|
35,202 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 97,877,579 |
|
33 |
|
$ 85,217,066 |
|
33 |
|
$ 234,182,746 |
|
31 |
|
$ 259,367,485 |
|
35 |
(Continued)
- 4 -
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 |
||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
Income Attributable to Shareholders of the Parent |
|
Income Attributable to Shareholders of the Parent |
|
Income Attributable to Shareholders of the Parent |
|
Income Attributable to Shareholders of the Parent |
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE (NT$, Note 26) |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ 3.90 |
|
$ 3.44 |
|
$ 8.84 |
|
$ 9.69 |
Diluted earnings per share |
|
$ 3.90 |
|
$ 3.44 |
|
$ 8.84 |
|
$ 9.69 |
(Concluded)
The accompanying notes are an integral part of the consolidated financial statements.
- 5 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
Equity Attributable to Shareholders of the Parent |
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets at Fair |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign |
|
Value Through |
|
|
|
Unearned |
|
|
|
|
|
|
|
|
|
|
Capital Stock - Common Stock |
|
|
|
Retained Earnings |
|
Currency |
|
Other |
|
Gain (Loss) on |
|
Stock-Based |
|
|
|
|
|
|
|
|
||||||||
|
|
Shares |
|
|
|
|
|
Legal Capital |
|
Special Capital |
|
Unappropriated |
|
|
|
Translation |
|
Comprehensive |
|
Hedging |
|
Employee |
|
|
|
|
|
Non-controlling |
|
Total |
|
|
(In Thousands) |
|
Amount |
|
Capital Surplus |
|
Reserve |
|
Reserve |
|
Earnings |
|
Total |
|
Reserve |
|
Income |
|
Instruments |
|
Compensation |
|
Total |
|
Total |
|
Interests |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, JANUARY 1, 2019 |
|
25,930,380 |
|
$ 259,303,805 |
|
$ 56,315,932 |
|
$ 276,033,811 |
|
$ 26,907,527 |
|
$1,073,706,503 |
|
$1,376,647,841 |
|
$ (12,042,347) |
|
$ (3,429,324) |
|
$ 23,601 |
|
$ (1,843) |
|
$ (15,449,913) |
|
$1,676,817,665 |
|
$ 678,731 |
|
$1,677,496,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriations of earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal capital reserve |
|
- |
|
- |
|
- |
|
35,113,088 |
|
- |
|
(35,113,088) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Special capital reserve |
|
- |
|
- |
|
- |
|
- |
|
(19,521,587) |
|
19,521,587 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Cash dividends to shareholders |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(324,129,756) |
|
(324,129,756) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(324,129,756) |
|
- |
|
(324,129,756) |
Total |
|
- |
|
- |
|
- |
|
35,113,088 |
|
(19,521,587) |
|
(339,721,257) |
|
(324,129,756) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(324,129,756) |
|
- |
|
(324,129,756) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the nine months ended September 30, 2019 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
229,228,587 |
|
229,228,587 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
229,228,587 |
|
37,028 |
|
229,265,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the nine months ended September 30, 2019, net of income tax |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,200,994 |
|
2,791,580 |
|
(75,526) |
|
- |
|
4,917,048 |
|
4,917,048 |
|
83 |
|
4,917,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the nine months ended September 30, 2019 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
229,228,587 |
|
229,228,587 |
|
2,200,994 |
|
2,791,580 |
|
(75,526) |
|
- |
|
4,917,048 |
|
234,145,635 |
|
37,111 |
|
234,182,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of investments in equity instruments at fair value through other comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
- |
|
159,766 |
|
159,766 |
|
- |
|
(159,766) |
|
- |
|
- |
|
(159,766) |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis adjustment for gain on hedging instruments |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
15,682 |
|
- |
|
15,682 |
|
15,682 |
|
- |
|
15,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to share of changes in equities of associates |
|
- |
|
- |
|
4,627 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,843 |
|
1,843 |
|
6,470 |
|
110 |
|
6,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From share of changes in equities of subsidiaries |
|
- |
|
- |
|
370 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
370 |
|
(370) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(74,647) |
|
(74,647) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, SEPTEMBER 30, 2019 |
|
25,930,380 |
|
$ 259,303,805 |
|
$ 56,320,929 |
|
$ 311,146,899 |
|
$ 7,385,940 |
|
$ 963,373,599 |
|
$1,281,906,438 |
|
$ (9,841,353) |
|
$ (797,510) |
|
$ (36,243) |
|
$ - |
|
$ (10,675,106) |
|
$1,586,856,066 |
|
$640,935 |
|
$1,587,497,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, JANUARY 1, 2018 |
|
25,930,380 |
|
$ 259,303,805 |
|
$ 56,309,536 |
|
$ 241,722,663 |
|
$ - |
|
$ 993,195,668 |
|
$1,234,918,331 |
|
$ (26,697,680) |
|
$ (524,915) |
|
$ 4,226 |
|
$ (10,290) |
|
$(27,228,659) |
|
$1,523,303,013 |
|
$702,452 |
|
$1,524,005,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriations of earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal capital reserve |
|
- |
|
- |
|
- |
|
34,311,148 |
|
- |
|
(34,311,148) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Special capital reserve |
|
- |
|
- |
|
- |
|
- |
|
26,907,527 |
|
(26,907,527) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
Cash dividends to shareholders |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(207,443,044) |
|
(207,443,044) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(207,443,044) |
|
- |
|
(207,443,044) |
Total |
|
- |
|
- |
|
- |
|
34,311,148 |
|
26,907,527 |
|
(268,661,719) |
|
(207,443,044) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(207,443,044) |
|
- |
|
(207,443,044) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the nine months ended September 30, 2018 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
251,146,789 |
|
251,146,789 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
251,146,789 |
|
32,232 |
|
251,179,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the nine months ended September 30, 2018, net of income tax |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
10,448,911 |
|
(2,287,670) |
|
24,253 |
|
- |
|
8,185,494 |
|
8,185,494 |
|
2,970 |
|
8,188,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) for the nine months ended September 30, 2018 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
251,146,789 |
|
251,146,789 |
|
10,448,911 |
|
(2,287,670) |
|
24,253 |
|
- |
|
8,185,494 |
|
259,332,283 |
|
35,202 |
|
259,367,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of investments in equity instruments at fair value through other comprehensive income |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(884,417) |
|
(884,417) |
|
- |
|
884,417 |
|
- |
|
- |
|
884,417 |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basis adjustment for loss on hedging instruments |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(26,936) |
|
- |
|
(26,936) |
|
(26,936) |
|
- |
|
(26,936) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to share of changes in equities of associates |
|
- |
|
- |
|
(288) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
4,475 |
|
4,475 |
|
4,187 |
|
- |
|
4,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From share of changes in equities of subsidiaries |
|
- |
|
- |
|
2,371 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,371 |
|
(2,371) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Donation from shareholders |
|
- |
|
- |
|
40 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
40 |
|
6 |
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(77,202) |
|
(77,202) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, SEPTEMBER 30, 2018 |
|
25,930,380 |
|
$ 259,303,805 |
|
$ 56,311,659 |
|
$ 276,033,811 |
|
$ 26,907,527 |
|
$ 974,796,321 |
|
$1,277,737,659 |
|
$ (16,248,769) |
|
$ (1,928,168) |
|
$ 1,543 |
|
$ (5,815) |
|
$ (18,181,209) |
|
$1,575,171,914 |
|
$ 658,087 |
|
$1,575,830,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
- 6 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
Nine Months Ended September 30 |
|||
|
|
2019 |
|
2018 |
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
Income before income tax |
|
$ 261,063,363 |
|
$ 286,428,171 |
Adjustments for: |
|
|
|
|
Depreciation expense |
|
215,274,524 |
|
213,318,950 |
Amortization expense |
|
4,077,932 |
|
3,197,428 |
Expected credit losses recognized (reversal) on investments in debt instruments |
|
2,651 |
|
(2,279) |
Finance costs |
|
2,607,250 |
|
2,175,318 |
Share of profits of associates |
|
(1,977,740) |
|
(1,946,111) |
Interest income |
|
(12,871,791) |
|
(10,543,592) |
Share-based compensation |
|
1,406 |
|
- |
Loss on disposal or retirement of property, plant and equipment, net |
|
866,235 |
|
789,005 |
Loss (gain) on disposal of intangible assets, net |
|
2,377 |
|
(436) |
Impairment loss (reversal of impairment loss) on property, plant and equipment |
|
(301,384) |
|
488,336 |
Loss on financial instruments at fair value through profit or loss, net |
|
958,084 |
|
244,799 |
Loss (gain) on disposal of investments in debt instruments at fair value through other comprehensive income, net |
|
(499,147) |
|
774,784 |
Loss from disposal of subsidiaries |
|
4,598 |
|
- |
Unrealized (realized) gross profit on sales to associates |
|
(42,535) |
|
188,528 |
Loss on foreign exchange, net |
|
737,001 |
|
1,863,969 |
Dividend income |
|
(246,455) |
|
(158,358) |
Loss (gain) arising from fair value hedges, net |
|
(12,976) |
|
2,494 |
Loss on lease modification |
|
344 |
|
- |
Changes in operating assets and liabilities: |
|
|
|
|
Financial instruments at fair value through profit or loss |
|
386,157 |
|
639,804 |
Notes and accounts receivable, net |
|
(21,531,168) |
|
(10,902,779) |
Receivables from related parties |
|
(596,368) |
|
(572,949) |
Other receivables from related parties |
|
8,447 |
|
106,673 |
Inventories |
|
6,545,246 |
|
(31,475,575) |
Other financial assets |
|
627,837 |
|
(5,641,723) |
Other current assets |
|
570,899 |
|
(247,466) |
Other noncurrent assets |
|
- |
|
139,107 |
Accounts payable |
|
1,603,615 |
|
341,340 |
Payables to related parties |
|
261,510 |
|
(85,053) |
Salary and bonus payable |
|
(897,752) |
|
(2,317,288) |
Accrued profit sharing bonus to employees and compensation to directors and supervisors |
|
(7,710,063) |
|
(5,629,367) |
Accrued expenses and other current liabilities |
|
1,476,118 |
|
(24,443,396) |
Net defined benefit liability |
|
(233,930) |
|
(62,562) |
Cash generated from operations |
|
450,154,285 |
|
416,669,772 |
Income taxes paid |
|
(37,969,958) |
|
(32,088,012) |
|
|
|
|
|
Net cash generated by operating activities |
|
412,184,327 |
|
384,581,760 |
(Continued)
- 7 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
Nine Months Ended September 30 |
||
|
|
2019 |
|
2018 |
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Acquisitions of: |
|
|
|
|
Financial instruments at fair value through profit or loss |
|
$ (124,748) |
|
$ (306,309) |
Financial assets at fair value through other comprehensive income |
|
(200,490,462) |
|
(72,383,276) |
Financial assets at amortized cost |
|
(313,958) |
|
- |
Property, plant and equipment |
|
(290,412,611) |
|
(201,476,971) |
Intangible assets |
|
(4,424,453) |
|
(2,940,549) |
Proceeds from disposal or redemption of: |
|
|
|
|
Financial instruments at fair value through profit or loss - debt instruments |
|
2,418,153 |
|
286,248 |
Financial assets at fair value through other comprehensive income |
|
173,955,646 |
|
63,929,332 |
Financial assets at amortized cost |
|
14,349,190 |
|
2,032,442 |
Property, plant and equipment |
|
218,362 |
|
135,507 |
Intangible assets |
|
- |
|
492 |
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income |
|
- |
|
127,878 |
Derecognition of hedging financial instruments |
|
(452,455) |
|
199,730 |
Interest received |
|
13,254,770 |
|
10,612,192 |
Proceeds from government grants - property, plant and equipment |
|
2,565,338 |
|
- |
Proceeds from government grants - land use right and others |
|
850,623 |
|
- |
Other dividends received |
|
246,455 |
|
158,358 |
Dividends received from investments accounted for using equity method |
|
1,718,954 |
|
3,262,910 |
Refundable deposits paid |
|
(1,337,227) |
|
(2,227,335) |
Refundable deposits refunded |
|
781,882 |
|
1,581,399 |
|
|
|
|
|
Net cash used in investing activities |
|
(287,196,541) |
|
(197,007,952) |
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Increase (decrease) in short-term loans |
|
(3,872,065) |
|
9,626,705 |
Repayment of bonds |
|
(34,900,000) |
|
(58,024,900) |
Repayment of the principal portion of lease liabilities |
|
(2,457,970) |
|
- |
Interest paid |
|
(3,058,107) |
|
(2,796,082) |
Guarantee deposits received |
|
52,151 |
|
1,253,537 |
Guarantee deposits refunded |
|
(700,302) |
|
(1,947,272) |
Cash dividends |
|
(207,443,044) |
|
(207,443,044) |
Donation from shareholders |
|
- |
|
46 |
Decrease in non-controlling interests |
|
(76,053) |
|
(77,202) |
|
|
|
|
|
Net cash used in financing activities |
|
(252,455,390) |
|
(259,408,212) |
(Continued)
- 8 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
Nine Months Ended September 30 |
||
|
|
2019 |
|
2018 |
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
$ 2,083,303 |
|
$ 7,174,829 |
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(125,384,301) |
|
(64,659,575) |
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
577,814,601 |
|
553,391,696 |
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ 452,430,300 |
|
$ 488,732,121 |
|
|
|
|
|
(Concluded)
The accompanying notes are an integral part of the consolidated financial statements.
- 9 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019 and 2018
(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.
On September 5, 1994, TSMC’s 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 of TSMC’s subsidiaries are described in Note 4.
2. |
THE AUTHORIZATION OF FINANCIAL STATEMENTS |
The accompanying consolidated financial statements were reported to the Board of Directors and issued on November 12, 2019.
3. |
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS |
|
a. |
Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) |
Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on TSMC and its subsidiaries’ (collectively as the “Company”) accounting policies:
|
1) |
IFRS 16 “Leases” |
IFRS 16 sets out the accounting standards for leases that supersedes IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, and a number of related interpretations.
Refer to Note 4 for information relating to the relevant accounting policies.
Definition of a lease
The Company applies the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 are not reassessed and are accounted for in accordance with the transitional provisions under IFRS 16.
- 10 -
The Company as lessee
Except for payments for short-term leases which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases on the consolidated balance sheets. On the consolidated statements of comprehensive income, the Company presents the depreciation expense charged on right-of-use assets separately from the interest expense accrued on lease liabilities and computed using the effective interest method. On the consolidated statements of cash flows, cash payments for both the principal portion and the interest portion of lease liabilities are classified within financing activities.
The Company applies IFRS 16 retrospectively with the cumulative effect of the initial application recognized at the date of initial application but does not restate comparative information.
Leases agreements classified as operating leases under IAS 17, except for short-term leases, are measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments. Right-of-use assets are subject to impairment testing under IAS 36.
The Company applies the following practical expedients to measure right-of-use assets and lease liabilities on January 1, 2019:
|
a) |
The Company applies a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities. |
|
b) |
The Company accounts for those leases for which the lease term ends on or before December 31, 2019 as short-term leases. |
|
c) |
Except for lease payments, the Company excludes incremental costs of obtaining the lease from right-of-use assets on January 1, 2019. |
|
d) |
The Company determines lease terms (e.g. lease periods) based on the projected status on January 1, 2019, to measure lease liabilities. |
The weighted average lessee’s incremental borrowing rate used by the Company to calculate lease liabilities recognized on January 1, 2019 is 1.46%. The reconciliation between the lease liabilities recognized and the future minimum lease payments of non-cancellable operating lease on December 31, 2018 is presented as follows:
The future minimum lease payments of non-cancellable operating lease on December 31, 2018 |
|
$ 20,849,585 |
Less: Recognition exemption for short-term leases |
|
(3,189,821) |
|
|
|
Undiscounted gross amounts on January 1, 2019 |
|
$ 17,659,764 |
|
|
|
Discounted using the incremental borrowing rate on January 1, 2019 |
|
$ 16,465,599 |
Add: Adjustments as a result of a different treatment of extension and purchase options |
|
3,438,016 |
|
|
|
Lease liabilities recognized on January 1, 2019 |
|
$ 19,903,615 |
The Company as lessor
Except for sublease transactions, the Company does not make any adjustments for leases in which it is a lessor, and accounts for those leases under IFRS 16 starting from January 1, 2019. On the basis
- 11 -
of the remaining contractual terms and conditions on January 1, 2019, all of the Company’s subleases are classified as operating leases.
Impact on assets, liabilities and equity on January 1, 2019
|
|
Carrying Amount as of December 31, 2018 |
|
Adjustments Arising from Initial Application |
|
Adjusted Carrying Amount as of January 1, 2019 |
|
|
|
|
|
|
|
Other current assets |
|
$ 5,406,423 |
|
$ (118,242) |
|
$ 5,288,181 |
Right-of-use assets |
|
- |
|
20,082,875 |
|
20,082,875 |
Other noncurrent assets |
|
1,584,647 |
|
(77,171) |
|
1,507,476 |
|
|
|
|
|
|
|
Total effect on assets |
|
|
|
$ 19,887,462 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other current liabilities |
|
61,760,619 |
|
$2,627,334 |
|
64,387,953 |
Lease liabilities - noncurrent |
|
- |
|
17,269,317 |
|
17,269,317 |
Other noncurrent liabilities |
|
1,950,989 |
|
(9,189) |
|
1,941,800 |
|
|
|
|
|
|
|
Total effect on liabilities |
|
|
|
$ 19,887,462 |
|
|
|
|
|
|
|
|
|
Total effect on equity |
|
|
|
$ - |
|
|
|
b. |
The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2020 |
New, Revised or Amended Standards and Interpretations |
|
Effective Date Issued |
|
|
|
Amendments to IFRS 3 “Definition of a Business” |
|
January 1, 2020 (Note 1) |
Amendments to IAS 1 and IAS 8 “Definition of Material” |
|
January 1, 2020 (Note 2) |
|
Note 1: |
The Company shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. |
|
Note 2: |
The Company shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020. |
|
c. |
The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC |
New, Revised or Amended Standards and Interpretations |
|
Effective Date Issued |
|
|
|
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” |
|
To be determined by IASB |
As of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.
- 12 -
4. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2018.
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.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed and issued into effect 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 the IFRSs endorsed and issued into effect by the FSC (collectively, “Taiwan-IFRSs”).
Basis of Consolidation
The basis of preparation and the basis for the consolidated financial statements
The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2018.
The subsidiaries in the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period was as follows:
|
|
|
|
|
|
|
|
Percentage of Ownership |
|
|
||||
Name of Investor |
|
Name of Investee |
|
Main Businesses and Products |
|
Establishment and Operating Location |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
Note |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC |
|
TSMC North America |
|
Selling and marketing of integrated circuits and other semiconductor devices |
|
San Jose, California, U.S.A. |
|
100% |
|
100% |
|
100% |
|
- |
|
|
TSMC Europe B.V. (TSMC Europe) |
|
Customer service and supporting activities |
|
Amsterdam, the Netherlands |
|
100% |
|
100% |
|
100% |
|
a) |
|
|
TSMC Japan Limited (TSMC Japan) |
|
Customer service and supporting activities |
|
Yokohama, Japan |
|
100% |
|
100% |
|
100% |
|
a) |
|
|
TSMC Korea Limited (TSMC Korea) |
|
Customer service and supporting activities |
|
Seoul, Korea |
|
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 and other investment activities |
|
Tortola, British Virgin Islands |
|
100% |
|
100% |
|
100% |
|
a) |
|
|
TSMC Global, Ltd. (TSMC Global) |
|
Investment activities |
|
Tortola, British Virgin Islands |
|
100% |
|
100% |
|
100% |
|
- |
|
|
TSMC China Company Limited (TSMC China) |
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |
|
Shanghai, China |
|
100% |
|
100% |
|
100% |
|
- |
|
|
TSMC Nanjing Company Limited (TSMC Nanjing) |
|
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |
|
Nanjing, China |
|
100% |
|
100% |
|
100% |
|
b) |
|
|
VisEra Technologies Company Ltd. (VisEra Tech) |
|
Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter |
|
Hsin-Chu, Taiwan |
|
87% |
|
87% |
|
87% |
|
- |
|
|
VentureTech Alliance Fund II, L.P. (VTAF II) |
|
Investing in new start-up technology companies |
|
Cayman Islands |
|
98% |
|
98% |
|
98% |
|
a) |
|
|
VentureTech Alliance Fund III, L.P. (VTAF III) |
|
Investing in new start-up technology companies |
|
Cayman Islands |
|
98% |
|
98% |
|
98% |
|
a) |
|
|
TSMC Solar Europe GmbH |
|
Selling of solar related products and providing customer service |
|
Hamburg, Germany |
|
- |
|
100% |
|
100% |
|
a), c) |
(Continued)
- 13 -
|
|
|
|
|
|
|
|
Percentage of Ownership |
|
|
||||
Name of Investor |
|
Name of Investee |
|
Main Businesses and Products |
|
Establishment and Operating Location |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
Note |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners |
|
TSMC Development, Inc. (TSMC Development) |
|
Investing in companies involved in the manufacturing related business in the semiconductor industry |
|
Delaware, U.S.A. |
|
100% |
|
100% |
|
100% |
|
- |
|
|
TSMC Technology, Inc. (TSMC Technology) |
|
Engineering support activities |
|
Delaware, U.S.A. |
|
100% |
|
100% |
|
100% |
|
a) |
|
|
TSMC Design Technology Canada Inc. (TSMC Canada) |
|
Engineering support activities |
|
Ontario, Canada |
|
100% |
|
100% |
|
100% |
|
a) |
|
|
InveStar Semiconductor Development Fund, Inc. (ISDF) |
|
Investing in new start-up technology companies |
|
Cayman Islands |
|
97% |
|
97% |
|
97% |
|
a), d) |
|
|
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II) |
|
Investing in new start-up technology companies |
|
Cayman Islands |
|
97% |
|
97% |
|
97% |
|
a), d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Development |
|
WaferTech, LLC (WaferTech) |
|
Manufacturing, selling and testing of integrated circuits and other semiconductor devices |
|
Washington, U.S.A. |
|
100% |
|
100% |
|
100% |
|
- |
VTAF III |
|
Growth Fund Limited (Growth Fund) |
|
Investing in new start-up technology companies |
|
Cayman Islands |
|
100% |
|
100% |
|
100% |
|
a) |
(Concluded)
|
Note a: |
This is an immaterial subsidiary for which the consolidated financial statements are not reviewed by the Company’s independent auditors. |
|
Note b: |
Under the investment agreement entered into with the municipal government of Nanjing, China, the Company will make an investment in Nanjing in the amount of approximately US$3 billion to establish a subsidiary operating a 300mm wafer fab with the capacity of 20,000 12-inch wafers per month, and a design service center. |
|
Note c: |
TSMC Solar Europe GmbH has completed the liquidation procedures in March 2019. |
|
Note d: |
The subsidiary is under liquidation procedures. |
Leases
2019
For a contract that contains a lease component and non-lease component, the Company may elect to account for the lease and non-lease components as a single lease component.
The Company as lessor
Rental income from operating lease is recognized on a straight-line basis over the term of the lease.
The Company as lessee
Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.
Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for changes in lease liabilities as a result of lease term modifications or other related factors. Right-of use assets are presented separately in the consolidated balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.
- 14 -
Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. The lease payments are discounted using the lessee’s incremental borrowing rates.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, or a change in the assessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in the consolidated balance sheets.
Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.
2018
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Company as lessor
Rental income from operating leases is recognized on a straight-line basis over the term of the lease.
The Company as lessee
Operating lease payments are recognized as an expense on a straight-line basis over the lease term.
Retirement Benefits
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period. When tax rate changes during the interim period, the effect of the change in tax rate relating to transactions recognized outside scope of profit or loss is recognized in full in the period in which the change in tax rate occurs. The effect of the change in tax rate relating to transactions recognized in profit or loss is incorporated into estimation of the average annual income tax rate, with corresponding effect recognized throughout the interim periods.
5. |
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY |
Except for the following paragraphs, 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 Company’s consolidated financial statements for the year ended December 31, 2018.
- 15 -
Recognition of Right-of-Use Assets and Lease Liabilities
Lease terms and lessee’s incremental borrowing rates used in discounting lease payments are main factors considered in recognizing right-of-use assets and lease liabilities.
In determining a lease term, the Company considers all facts and circumstances that create an economic incentive to exercise or not to exercise an option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include contractual terms and conditions for the optional periods, the importance of the underlying asset to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that are within the control of the Company occurs.
In determining a lessee’s incremental borrowing rate used in discounting lease payments, the Company mainly takes into account the market risk-free rates, the estimated lessee’s credit spreads and secured status in a similar economic environment.
6. |
CASH AND CASH EQUIVALENTS |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 446,819,726 |
|
$ 575,825,502 |
|
$ 486,951,934 |
|
|
2,418,554 |
|
- |
|
- |
|
|
1,596,138 |
|
759,499 |
|
243,287 |
|
|
1,595,882 |
|
1,229,600 |
|
1,536,900 |
|
|
|
|
|
|
|
|
|
$ 452,430,300 |
|
$ 577,814,601 |
|
$ 488,732,121 |
Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of cash and were subject to an insignificant risk of changes in value.
7. |
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatorily measured at FVTPL |
|
|
|
|
|
|
|
$ 152,332 |
|
$ 85,303 |
|
$ 129,540 |
|
|
124,108 |
|
- |
|
- |
|
|
45,649 |
|
3,419,287 |
|
3,927,700 |
|
|
|
|
|
|
|
|
|
$ 322,089 |
|
$ 3,504,590 |
|
$ 4,057,240 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading |
|
|
|
|
|
|
|
$ 497,911 |
|
$ 40,825 |
|
$ 240,620 |
The Company entered into derivative contracts to manage exposures due to fluctuations of foreign exchange rates. These derivative contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these derivative contracts.
- 16 -
Outstanding forward exchange contracts consisted of the following:
|
|
|
Contract Amount |
|
|
|
Maturity Date |
|
(In Thousands) |
|
|
|
|
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR |
|
October 2019 to March 2020 |
|
NT$39,276,744/EUR1,147,000 |
Sell NT$/Buy JPY |
|
October 2019 |
|
NT$13,251,310/JPY45,600,000 |
Sell US$/Buy EUR |
|
October 2019 |
|
US$563/EUR512 |
Sell US$/Buy JPY |
|
October 2019 |
|
US$9,450/JPY1,015,000 |
Sell US$/Buy RMB |
|
October 2019 |
|
US$385,000/RMB2,742,331 |
Sell US$/Buy NT$ |
|
October 2019 to December 2019 |
|
US$21,500/NT$668,136 |
Sell JPY/Buy US$ |
|
October 2019 to November 2019 |
|
JPY48,640,406/US$454,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR |
|
January 2019 to March 2019 |
|
NT$18,545,854/EUR527,000 |
Sell NT$/Buy JPY |
|
January 2019 to March 2019 |
|
NT$4,757,858/JPY17,200,000 |
Sell US$/Buy EUR |
|
January 2019 |
|
US$495/EUR434 |
Sell US$/Buy JPY |
|
January 2019 |
|
US$175,591/JPY19,389,014 |
Sell US$/Buy RMB |
|
January 2019 |
|
US$318,000/RMB2,188,747 |
Sell US$/Buy NT$ |
|
January 2019 to February 2019 |
|
US$127,000/NT$3,908,635 |
Sell RMB/Buy US$ |
|
January 2019 |
|
RMB667,539/US$97,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sell NT$/Buy EUR |
|
October 2018 to November 2018 |
|
NT$11,839,127/EUR331,000 |
Sell NT$/Buy JPY |
|
October 2018 to November 2018 |
|
NT$7,030,043/JPY25,504,229 |
Sell US$/Buy NT$ |
|
October 2018 to November 2018 |
|
US$555,500/NT$17,039,496 |
Sell US$/Buy EUR |
|
October 2018 |
|
US$233,273/EUR198,632 |
Sell US$/Buy JPY |
|
October 2018 |
|
US$114,008/JPY12,869,738 |
Sell US$/Buy RMB |
|
October 2018 |
|
US$345,000/RMB2,369,777 |
Sell RMB/Buy US$ |
|
October 2018 |
|
RMB714,250/ US$104,000 |
8. |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
Investments in debt instruments at FVTOCI |
|
|
|
|
|
|
|
$ 54,113,016 |
|
$ 40,753,582 |
|
$ 40,587,299 |
|
|
52,743,788 |
|
31,288,762 |
|
31,663,708 |
|
|
15,260,645 |
|
11,151,359 |
|
10,815,035 |
|
|
9,923,553 |
|
15,670,295 |
|
15,028,991 |
|
|
92,450 |
|
107,590 |
|
258,345 |
|
|
132,133,452 |
|
98,971,588 |
|
98,353,378 |
(Continued)
- 17 -
|
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
Investments in equity instruments at FVTOCI |
|
|
|
|
|
|
|
$ 4,026,516 |
|
$ 3,910,681 |
|
$ 5,701,354 |
|
|
- |
|
590,152 |
|
860,688 |
|
|
4,026,516 |
|
4,500,833 |
|
6,562,042 |
|
|
|
|
|
|
|
|
|
$ 136,159,968 |
|
$ 103,472,421 |
|
$ 104,915,420 |
|
|
|
|
|
|
|
|
|
$ 132,133,452 |
|
$ 99,561,740 |
|
$ 99,214,066 |
|
|
4,026,516 |
|
3,910,681 |
|
5,701,354 |
|
|
|
|
|
|
|
|
|
$ 136,159,968 |
|
$ 103,472,421 |
|
$ 104,915,420 |
(Concluded)
These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as FVTOCI.
For the nine months ended September 30, 2019 and 2018, as the Company adjusted its investment portfolio or the non-publicly traded investee was merged, equity investments designated at FVTOCI were divested for NT$873,470 thousand and NT$730,399 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$159,766 thousand and NT$884,417 thousand were transferred to increase and decrease retained earnings, respectively.
For dividends from equity investments designated as at FVTOCI recognized, please refer to Note 22. All the dividends are from investments held at the end of the reporting period.
As of September 30, 2019 and 2018, the cumulative loss allowance for expected credit loss of NT$37,781 thousand and NT$29,598 thousand are recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 29 for information relating to their credit risk management and expected credit loss.
9. |
FINANCIAL ASSETS AT AMORTIZED COST |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 7,917,118 |
|
$ 19,519,941 |
|
$ 19,370,671 |
|
|
- |
|
2,294,098 |
|
- |
|
|
(3,031) |
|
(8,147) |
|
(8,084) |
|
|
|
|
|
|
|
|
|
$ 7,914,087 |
|
$ 21,805,892 |
|
$ 19,362,587 |
|
|
|
|
|
|
|
|
|
$ - |
|
$ 14,277,615 |
|
$ 11,891,845 |
|
|
7,914,087 |
|
7,528,277 |
|
7,470,742 |
|
|
|
|
|
|
|
|
|
$ 7,914,087 |
|
$ 21,805,892 |
|
$ 19,362,587 |
Refer to Note 29 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.
- 18 -
10. |
HEDGING FINANCIAL INSTRUMENTS |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
Financial assets - current |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
$ 30,291 |
|
$ - |
|
$ 120,417 |
|
Cash flow hedges |
|
|
|
|
|
|
|
6,712 |
|
23,497 |
|
3,825 |
|
|
|
|
|
|
|
|
|
$ 37,003 |
|
$ 23,497 |
|
$ 124,242 |
|
|
|
|
|
|
|
|
Financial liabilities - current |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
$ 653 |
|
$ 153,891 |
|
$ - |
|
Cash flow hedges |
|
|
|
|
|
|
|
23,199 |
|
1,941 |
|
3,750 |
|
|
|
|
|
|
|
|
|
$ 23,852 |
|
$ 155,832 |
|
$ 3,750 |
Fair value hedge
The Company entered into interest rate futures contracts, which are used to partially hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities. The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%.
On the basis of economic relationships, the Company expects that the value of the interest rate futures contracts and the value of the hedged financial assets will change in opposite directions in response to movements in interest rates.
The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged financial assets, which is not reflected in the fair value of the interest rate futures contracts. No other sources of ineffectiveness emerged from these hedging relationships. Amount of hedge ineffectiveness recognized in profit or loss is classified under other gains and losses.
The following tables summarize the information relating to the hedges of interest rate risk.
September 30, 2019
Hedging Instruments |
|
Contract Amount (US$ in Thousands) |
|
Maturity |
|
|
|
|
|
US treasury bonds interest rate futures contracts |
|
US$ 171,500 |
|
December 2019 |
Hedged Items |
|
Asset Carrying Amount |
|
Asset Accumulated Amount of Fair Value Hedge Adjustments |
|
|
|
|
|
Financial assets at FVTOCI |
|
$ 9,846,834 |
|
$ 107,564 |
- 19 -
December 31, 2018
Hedging Instruments |
|
Contract Amount (US$ in Thousands) |
|
Maturity |
|
|
|
|
|
US treasury bonds interest rate futures contracts |
|
US$ 330,300 |
|
March 2019 |
Hedged Items |
|
Asset Carrying Amount |
|
Asset Accumulated Amount of Fair Value Hedge Adjustments |
|
|
|
|
|
Financial assets at FVTOCI |
|
$ 23,229,530 |
|
$ (13,508) |
September 30, 2018
Hedging Instruments |
|
Contract Amount (US$ in Thousands) |
|
Maturity |
|
|
|
|
|
US treasury bonds interest rate futures contracts |
|
US$ 301,400 |
|
December 2018 |
Hedged Items |
|
Asset Carrying Amount |
|
Asset Accumulated Amount of Fair Value Hedge Adjustments |
|
|
|
|
|
Financial assets at FVTOCI |
|
$ 15,557,309 |
|
$ (626,274) |
The effect on comprehensive income for the nine months ended September 30, 2019 and 2018 are detailed below:
|
Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness |
|||
|
|
Nine Months Ended September 30 |
||
|
|
2019 |
|
2018 |
|
|
|
|
|
Hedging Instruments |
|
|
|
|
|
$ (216,208) |
|
$ 242,632 |
|
Hedged Items |
|
|
|
|
|
229,184 |
|
(245,126) |
|
|
|
|
|
|
|
$ 12,976 |
|
$ (2,494) |
- 20 -
Cash flow hedge
The Company entered into forward exchange contracts and foreign currency deposits to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward exchange contracts have maturities of 12 months or less.
On the basis of economic relationships, the Company expects that the value of forward exchange contracts and foreign currency deposits and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward exchange contracts and foreign currency deposits. No other sources of ineffectiveness emerged from these hedging relationships. For the nine months ended September 30, 2019 and 2018, refer to Note 20(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items.
The following tables summarize the information relating to the hedges for foreign currency risk.
September 30, 2019
|
Contract Amount (In Thousands) |
|
Maturity |
|
Balance in Other Equity (Continuing Hedges) |
|
|
|
|
|
|
|
|
|
NT$ 3,147,690 /EUR 92,000 |
|
October 2019 to November 2019 |
|
$ (36,243) |
December 31, 2018
Hedging Instruments |
|
Contract Amount (In Thousands) |
|
Maturity |
|
Balance in Other Equity (Continuing Hedges) |
|
|
|
|
|
|
|
Forward exchange contracts |
|
NT$ 3,917,657 /EUR 112,000 |
|
February 2019 to April 2019 |
|
$ 23,601 |
September 30, 2018
Hedging Instruments |
|
Contract Amount (In Thousands) |
|
Maturity |
|
Balance in Other Equity (Continuing Hedges) |
|
|
|
|
|
|
|
Forward exchange contracts |
|
NT$ 1,140,456 /EUR 32,000 |
|
November 2018 to December 2018 |
|
$ 1,543 |
- 21 -
The effect on comprehensive income for the nine months ended September 30, 2019 and 2018 are detailed below:
|
Increase Ineffectiveness |
|||
|
|
Nine Months Ended September 30 |
||
|
|
2019 |
|
2018 |
|
|
|
|
|
Hedging Instruments |
|
|
|
|
Forward exchange contracts |
|
$ (75,421) |
|
$17,475 |
Foreign currency deposits |
|
- |
|
6,412 |
|
|
|
|
|
|
$ (75,421) |
|
$ 23,887 |
|
|
|
|
|
|
Hedged Items |
|
|
|
|
|
$ 75,421 |
|
$ (23,887) |
11. |
NOTES AND ACCOUNTS RECEIVABLE, NET |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
At amortized cost |
|
|
|
|
|
|
|
$140,818,053 |
|
$125,025,575 |
|
$124,750,986 |
|
|
(29,847) |
|
(7,253) |
|
(88,320) |
|
|
140,788,206 |
|
125,018,322 |
|
124,662,666 |
|
|
3,452,651 |
|
3,595,069 |
|
3,120,239 |
|
|
|
|
|
|
|
|
|
$144,240,857 |
|
$128,613,391 |
|
$127,782,905 |
The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.
- 22 -
Aging analysis of notes and accounts receivable, net
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 133,409,238 |
|
$ 113,126,484 |
|
$ 118,124,577 |
|
Past due |
|
|
|
|
|
|
|
10,705,928 |
|
15,006,461 |
|
9,281,088 |
|
|
116,283 |
|
472,833 |
|
190,769 |
|
|
9,408 |
|
4,654 |
|
165,805 |
|
|
- |
|
2,959 |
|
20,666 |
|
|
|
|
|
|
|
|
|
$ 144,240,857 |
|
$ 128,613,391 |
|
$ 127,782,905 |
Movements of the loss allowance for accounts receivable
|
Nine Months Ended September 30 |
|||
|
|
2019 |
|
2018 |
|
|
|
|
|
|
$ 7,253 |
|
$ 226,968 |
|
|
22,722 |
|
(138,644) |
|
|
(128) |
|
(4) |
|
|
|
|
|
|
|
$ 29,847 |
|
$ 88,320 |
For the nine months ended September 30, 2019 and 2018, the changes in loss allowance were mainly due to the variations from accounts receivable balance of different risk levels.
12. |
INVENTORIES |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$10,095,240 |
|
$11,329,802 |
|
$11,043,539 |
|
|
65,154,158 |
|
72,071,861 |
|
77,500,661 |
|
|
16,388,402 |
|
15,233,877 |
|
12,346,579 |
|
|
5,047,930 |
|
4,595,436 |
|
4,445,797 |
|
|
|
|
|
|
|
|
|
$96,685,730 |
|
$103,230,976 |
|
$105,336,576 |
Write-down of inventories to net realizable value was included in the cost of revenue, as illustrated below:
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Inventory losses |
|
$ 323,620 |
|
$ 405,743 |
|
$ 46,885 |
|
$ 1,471,757 |
The aforementioned inventory losses exclude wafer contamination losses and computer virus outbreak losses. Please refer to related losses in Note 34.
- 23 -
13. |
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
Associates consisted of the following:
|
|
|
|
|
Carrying Amount |
|
% of Ownership and Voting Rights Held by the Company |
|||||||||
Name of Associate |
|
Principal Activities |
|
Place of Incorporation and Operation |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks |
|
Hsinchu, Taiwan |
|
$ 8,717,119 |
|
$ 9,006,126 |
|
$ 8,450,652 |
|
28% |
|
28% |
|
28% |
|
|
Manufacturing and selling of integrated circuits and other semiconductor devices |
|
Singapore |
|
6,446,678 |
|
5,772,815 |
|
5,317,308 |
|
39% |
|
39% |
|
39% |
|
|
Wafer level chip size packaging and wafer level post passivation interconnection service |
|
Taoyuan, Taiwan |
|
1,762,753 |
|
1,764,607 |
|
1,715,711 |
|
41% |
|
41% |
|
41% |
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits |
|
Hsinchu, Taiwan |
|
1,232,543 |
|
1,299,423 |
|
1,125,928 |
|
35% |
|
35% |
|
35% |
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID |
|
New Taipei, Taiwan |
|
34,876
|
|
22,867
|
|
21,071
|
|
30% |
|
39% |
|
39% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 18,193,969 |
|
$ 17,865,838 |
|
$ 16,630,670 |
|
|
|
|
|
|
The market prices of the investments accounted for using the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 29,106,813 |
|
$ 27,621,298 |
|
$ 31,567,198 |
|
|
$ 11,671,965 |
|
$ 9,617,699 |
|
$ 12,652,410 |
|
|
$ 5,319,276 |
|
$ 3,783,585 |
|
$ 4,952,046 |
14. |
PROPERTY, PLANT AND EQUIPMENT |
2019
|
September 30, 2019 |
|
|
|
|
|
$ 1,197,885,739 |
|
|
69,559 |
|
|
|
|
|
$ 1,197,955,298 |
- 24 -
|
a. |
Assets used by the Company |
|
Land and Land Improvements |
|
Buildings |
|
Machinery and Equipment |
|
Office Equipment |
|
Equipment under Installation and Construction in Progress |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 4,011,353 |
|
$ 418,151,675 |
|
$ 2,728,760,127 |
|
$ 48,382,279 |
|
$ 172,910,989 |
|
$ 3,372,216,423 |
|
|
- |
|
17,620,955 |
|
137,136,089 |
|
5,714,221 |
|
183,221,480 |
|
343,692,745 |
|
|
- |
|
(59,375) |
|
(12,767,594) |
|
(454,190) |
|
- |
|
(13,281,159) |
|
|
- |
|
- |
|
619,779 |
|
- |
|
- |
|
619,779 |
|
|
- |
|
- |
|
- |
|
(508) |
|
- |
|
(508) |
|
|
7,463 |
|
(764,180) |
|
(2,486,790) |
|
(46,703) |
|
(209,042) |
|
(3,499,252) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 4,018,816 |
|
$ 434,949,075 |
|
$2,851,261,611 |
|
$ 53,595,099 |
|
$ 355,923,427 |
|
$ 3,699,748,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 550,575 |
|
$ 217,899,243 |
|
$ 2,049,278,908 |
|
$ 32,525,129 |
|
$ - |
|
$ 2,300,253,855 |
|
|
1,230 |
|
19,517,434 |
|
189,276,534 |
|
4,498,925 |
|
- |
|
213,294,123 |
|
|
- |
|
(59,331) |
|
(8,406,415) |
|
(452,988) |
|
- |
|
(8,918,734) |
|
|
- |
|
- |
|
20,659 |
|
- |
|
- |
|
20,659 |
|
|
- |
|
- |
|
(301,384) |
|
- |
|
- |
|
(301,384) |
|
|
- |
|
- |
|
- |
|
(508) |
|
- |
|
(508) |
|
|
5,140 |
|
(317,164) |
|
(2,162,387) |
|
(11,311) |
|
- |
|
(2,485,722) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 556,945 |
|
$ 237,040,182 |
|
$2,227,705,915 |
|
$ 36,559,247 |
|
$ - |
|
$ 2,501,862,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 3,460,778 |
|
$ 200,252,432 |
|
$ 679,481,219 |
|
$ 15,857,150 |
|
$ 172,910,989 |
|
$ 1,071,962,568 |
|
Carrying amounts at September 30, 2019 |
|
$ 3,461,871 |
|
$ 197,908,893 |
|
$ 623,555,696 |
|
$ 17,035,852 |
|
$ 355,923,427 |
|
$ 1,197,885,739 |
The significant part of the Company’s 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.
In the first quarter of 2019, the Company recognized a reversal of impairment loss of NT$301,384 thousand due to redeployment of certain idle machinery and equipment. Such reversal of impairment loss was recognized in other operating income and expenses.
|
b. |
Assets subject to operating leases |
|
|
|
Buildings |
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
$ 562,610 |
|
|
|
|
|
|
|
|
|
$ 562,610 |
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
$ 474,899 |
|
|
|
|
18,152 |
|
|
|
|
|
|
|
|
|
$ 493,051 |
|
|
|
|
|
|
|
|
|
$ 87,711 |
|
Carrying amounts at September 30, 2019 |
|
|
|
$ 69,559 |
- 25 -
Operating leases relate to leases of buildings with lease terms between 1 to 5 years. The lessees do not have purchase options to acquire the assets at the expiry of the lease periods.
The maturity analysis of operating lease payments receivable for the buildings is as follows:
The buildings subject to operating leases are depreciated using the estimated useful lives of 20 years.
2018
|
Land and Land Improvements |
|
Buildings |
|
Machinery and Equipment |
|
Office Equipment |
|
Equipment under Installation and Construction in Progress |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2018 |
|
$ 3,983,243 |
|
$ 379,134,613 |
|
$2,487,752,265 |
|
$ 42,391,516 |
|
$ 167,353,490 |
|
$3,080,615,127 |
Additions (Deductions) |
|
- |
|
26,506,546 |
|
214,486,883 |
|
5,585,725 |
|
(44,641,617) |
|
201,937,537 |
Disposals or retirements |
|
- |
|
(18,624) |
|
(3,353,136) |
|
(352,951) |
|
- |
|
(3,724,711) |
Effect of exchange rate changes |
|
21,999 |
|
(743,953) |
|
(1,342,261) |
|
(21,818) |
|
(291,513) |
|
(2,377,546) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 |
|
$ 4,005,242 |
|
$ 404,878,582 |
|
$2,697,543,751 |
|
$ 47,602,472 |
|
$ 122,420,360 |
|
$3,276,450,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2018 |
|
$ 510,498 |
|
$ 194,446,521 |
|
$1,795,448,842 |
|
$ 27,666,944 |
|
$ - |
|
$2,018,072,805 |
Additions |
|
20,458 |
|
18,149,233 |
|
190,993,719 |
|
4,155,540 |
|
- |
|
213,318,950 |
Disposals or retirements |
|
- |
|
(6,764) |
|
(2,421,656) |
|
(352,324) |
|
- |
|
(2,780,744) |
Impairment |
|
- |
|
- |
|
488,336 |
|
- |
|
- |
|
488,336 |
Effect of exchange rate changes |
|
14,973 |
|
(139,812) |
|
(1,060,793) |
|
19,857 |
|
- |
|
(1,165,775) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 |
|
$ 545,929 |
|
$ 212,449,178 |
|
$1,983,448,448 |
|
$ 31,490,017 |
|
$ - |
|
$2,227,933,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2018 |
|
$ 3,472,745 |
|
$ 184,688,092 |
|
$ 692,303,423 |
|
$ 14,724,572 |
|
$ 167,353,490 |
|
$1,062,542,322 |
Carrying amounts at September 30, 2018 |
|
$ 3,459,313 |
|
$ 192,429,404 |
|
$ 714,095,303 |
|
$ 16,112,455 |
|
$ 122,420,360 |
|
$1,048,516,835 |
The significant part of the Company’s 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.
In the second quarter of 2018, the Company recognized an impairment loss of NT$488,336 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses.
- 26 -
15. |
LEASE ARRANGEMENTS |
2019
|
a. |
Right-of-use assets |
|
|
|
September 30, 2019 |
|
|
|
|
|
|
Carrying amounts |
|
|
|
|
|
|
|
|
|
|
|
|
$ 14,028,317 |
|
|
|
|
2,370,423 |
|
|
|
|
1,066,738 |
|
|
|
|
41,348 |
|
|
|
|
|
|
|
|
|
$ 17,506,826 |
|
b. |
Lease liabilities |
|
September 30, 2019 |
|
|
|
|
Carrying amounts |
|
|
|
|
|
Current portion (classified under accrued expenses and other current liabilities) |
|
$ 2,580,646 |
|
15,031,539 |
|
|
|
|
|
$ 17,612,185 |
- 27 -
Ranges of discount rates for lease liabilities are as follows:
|
|
September 30, 2019 |
|
|
|
Land |
|
0.70%-2.14% |
Buildings |
|
0.69%-3.88% |
Machinery and equipment |
|
3.24% |
Office equipment |
|
0.64%-3.88% |
|
c. |
Material terms of right-of-use assets |
The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.
The Company leases machinery and equipment for operation use with lease terms of 2 years. The Company has purchase options to acquire leasehold machine and equipment at the end of the lease terms.
|
d. |
Subleases of right-of-use assets |
The Company subleases its right-of-use assets for buildings under operating leases with lease terms of 1 to 5 years.
The maturity analysis of lease payments receivable under operating subleases is as follows:
|
e. |
Other lease information |
- 28 -
Future minimum lease payments under non-cancellable operating leases are as follows:
|
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
Not later than 1 year |
|
$ 5,824,119 |
|
$ 5,962,586 |
Later than 1 year and not later than 5 years |
|
5,834,884 |
|
5,926,589 |
Later than 5 years |
|
9,190,582 |
|
9,307,594 |
|
|
|
|
|
|
|
$ 20,849,585 |
|
$ 21,196,769 |
16. |
INTANGIBLE ASSETS |
|
Goodwill |
|
Technology License Fees |
|
Software and System Design Costs |
|
Patent and Others |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,795,488 |
|
$ 10,974,458 |
|
$ 29,594,483 |
|
$ 7,656,524 |
|
$ 54,020,953 |
|
|
- |
|
1,768,377 |
|
3,076,909 |
|
294,096 |
|
5,139,382 |
|
|
- |
|
- |
|
(251,659) |
|
- |
|
(251,659) |
|
|
38,971 |
|
1,886 |
|
(13,641) |
|
(794) |
|
26,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,834,459 |
|
$ 12,744,721 |
|
$ 32,406,092 |
|
$ 7,949,826 |
|
$ 58,935,098 |
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ - |
|
$ 8,756,005 |
|
$ 23,023,498 |
|
$ 5,239,313 |
|
$ 37,018,816 |
|
|
- |
|
779,997 |
|
2,806,987 |
|
490,948 |
|
4,077,932 |
|
|
- |
|
- |
|
(249,282) |
|
- |
|
(249,282) |
|
|
- |
|
1,886 |
|
(7,072) |
|
(755) |
|
(5,941) |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ - |
|
$ 9,537,888 |
|
$ 25,574,131 |
|
$ 5,729,506 |
|
$ 40,841,525 |
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2019 |
|
$ 5,795,488 |
|
$ 2,218,453 |
|
$ 6,570,985 |
|
$ 2,417,211 |
|
$ 17,002,137 |
|
$ 5,834,459 |
|
$ 3,206,833 |
|
$ 6,831,961 |
|
$ 2,220,320 |
|
$ 18,093,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2018 |
|
$ 5,648,702 |
|
$ 10,443,257 |
|
$ 25,186,218 |
|
$ 5,716,146 |
|
$ 46,994,323 |
Additions |
|
- |
|
483,117 |
|
2,037,709 |
|
382,211 |
|
2,903,037 |
Disposals or retirements |
|
- |
|
- |
|
(125,430) |
|
(31,183) |
|
(156,613) |
Effect of exchange rate changes |
|
114,876 |
|
(466) |
|
(11,117) |
|
1,653 |
|
104,946 |
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 |
|
$ 5,763,578 |
|
$ 10,925,908 |
|
$ 27,087,380 |
|
$ 6,068,827 |
|
$ 49,845,693 |
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2018 |
|
$ - |
|
$ 7,694,857 |
|
$ 20,376,693 |
|
$ 4,747,633 |
|
$ 32,819,183 |
Additions |
|
- |
|
796,974 |
|
2,011,154 |
|
389,300 |
|
3,197,428 |
Disposals or retirements |
|
- |
|
- |
|
(125,374) |
|
(31,183) |
|
(156,557) |
Effect of exchange rate changes |
|
- |
|
(466) |
|
(3,208) |
|
129 |
|
(3,545) |
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2018 |
|
$ - |
|
$ 8,491,365 |
|
$ 22,259,265 |
|
$ 5,105,879 |
|
$ 35,856,509 |
|
|
|
|
|
|
|
|
|
|
|
Carrying amounts at January 1, 2018 |
|
$ 5,648,702 |
|
$ 2,748,400 |
|
$ 4,809,525 |
|
$ 968,513 |
|
$ 14,175,140 |
Carrying amounts at September 30, 2018 |
|
$ 5,763,578 |
|
$ 2,434,543 |
|
$ 4,828,115 |
|
$ 962,948 |
|
$ 13,989,184 |
- 29 -
The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 9.0% in its test of impairment as of December 31, 2018 to reflect the relevant specific risk in the cash-generating unit.
17. |
SHORT-TERM LOANS |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
Unsecured loans |
|
|
|
|
|
|
|
$ 85,573,710 |
|
$ 88,754,640 |
|
$ 73,974,625 |
|
|
|
|
|
|
|
|
Original loan content |
|
|
|
|
|
|
US$ (in thousands) |
|
$ 2,440,000 |
|
$ 2,610,000 |
|
$ 2,425,000 |
EUR (in thousands) |
|
290,000 |
|
242,000 |
|
- |
Annual interest rate |
|
0.01%-2.43% |
|
0.01%-3.22% |
|
2.42%-2.67% |
Maturity date |
|
Due by February 2020 |
|
Due by January 2019 |
|
Due by October 2018 |
18. |
BONDS PAYABLE |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 56,900,000 |
|
$ 91,800,000 |
|
$ 91,800,000 |
|
|
(31,800,000) |
|
(34,900,000) |
|
(34,900,000) |
|
|
|
|
|
|
|
|
|
$ 25,100,000 |
|
$ 56,900,000 |
|
$ 56,900,000 |
The major terms of overseas unsecured bonds are as follows:
Issuance Period |
|
Total Amount (US$ in Thousands) |
|
Coupon Rate |
|
Repayment and Interest Payment |
|
|
|
|
|
|
|
April 2013 to April 2018 |
|
US$ 1,150,000 |
|
1.625% |
|
Bullet repayment; interest payable semi-annually |
19. |
Guarantee deposits |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 3,481,230 |
|
$ 9,289,628 |
|
$ 10,371,700 |
|
|
- |
|
653,686 |
|
647,218 |
|
|
255,634 |
|
245,731 |
|
208,525 |
|
|
|
|
|
|
|
|
|
$ 3,736,864 |
|
$ 10,189,045 |
|
$ 11,227,443 |
(Continued)
- 30 -
(Concluded)
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
20. |
EQUITY |
|
a. |
Capital stock |
|
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
Authorized shares (in thousands) |
|
28,050,000 |
|
28,050,000 |
|
28,050,000 |
Authorized capital |
|
$ 280,500,000 |
|
$ 280,500,000 |
|
$ 280,500,000 |
Issued and paid shares (in thousands) |
|
25,930,380 |
|
25,930,380 |
|
25,930,380 |
Issued capital |
|
$ 259,303,805 |
|
$ 259,303,805 |
|
$ 259,303,805 |
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
As of September 30, 2019, 1,065,122 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,325,610 thousand shares (one ADS represents five common shares).
|
b. |
Capital surplus |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
$ 24,184,939 |
|
$ 24,184,939 |
|
$ 24,184,939 |
|
|
22,804,510 |
|
22,804,510 |
|
22,804,510 |
|
|
8,892,847 |
|
8,892,847 |
|
8,892,847 |
|
|
121,843 |
|
121,473 |
|
121,163 |
|
|
287,447 |
|
282,820 |
|
288,952 |
|
|
29,343 |
|
29,343 |
|
19,248 |
|
|
|
|
|
|
|
|
|
$ 56,320,929 |
|
$ 56,315,932 |
|
$ 56,311,659 |
- 31 -
Under the relevant laws, the capital surplus generated from donations and the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of TSMC’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit; however, when generated from issuance of restricted shares for employees, such capital surplus may not be used for any purpose.
|
c. |
Retained earnings and dividend policy |
The amendments to TSMC’s Articles of Incorporation had been approved by TSMC’s shareholders in its meeting held on June 5, 2019, which stipulate that earnings distribution may be made on a quarterly basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by TSMC’s Board of Directors and reported to TSMC’s shareholders in its meeting.
TSMC’s amended Articles of Incorporation provide that, when allocating earnings, TSMC shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals TSMC’s paid-in capital), then set aside a special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. Any balance left over shall be allocated according to relevant laws and the TSMC’s Articles of Incorporation.
TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided that the ratio for stock dividend shall not exceed 50% of the total distribution.
The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, unrealized valuation gain or loss from available-for-sale financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.
The appropriations of 2018 and 2017 earnings have been approved by TSMC’s shareholders in its meetings held on June 5, 2019 and June 5, 2018, respectively. The appropriations and cash dividends per share were as follows:
|
|
Appropriation of Earnings |
|
Cash Dividends Per Share (NT$) |
||||
|
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
|
|
Year 2018 |
|
Year 2017 |
|
Year 2018 |
|
Year 2017 |
|
|
|
|
|
|
|
|
|
Legal capital reserve |
|
$ 35,113,088 |
|
$ 34,311,148 |
|
|
|
|
Special capital reserve |
|
$ (11,459,458) |
|
$ 26,907,527 |
|
|
|
|
Cash dividends to shareholders |
|
$ 207,443,044 |
|
$ 207,443,044 |
|
$8.0 |
|
$8.0 |
- 32 -
The appropriations of 2019 earnings for each quarter have been approved by TSMC’s Board of Directors in its meeting. The appropriations and cash dividends per share were as follows:
|
|
Third Quarter |
|
Second Quarter |
|
First Quarter |
|
|
of 2019 |
|
of 2019 |
|
of 2019 |
Resolution date of TSMC’s Board of Directors in its meeting |
|
November 12, 2019 |
|
August 13, 2019 |
|
June 5, 2019 |
|
|
|
|
|
|
|
Special capital reserve |
|
$ 3,289,166 |
|
$ (3,338,190) |
|
$ (4,723,939) |
Cash dividends to shareholders |
|
$ 64,825,951 |
|
$ 64,825,951 |
|
$ 51,860,761 |
Cash Dividends Per Share (NT$) |
|
$ 2.5 |
|
$ 2.5 |
|
$ 2.0 |
|
d. |
Others |
Changes in others were as follows:
- 33 -
|
Nine Months Ended September 30, 2018 |
|||||||||
|
|
Foreign Currency Translation Reserve |
|
Unrealized Gain (Loss) on Financial Assets at FVTOCI |
|
Gain (Loss) on Hedging Instruments |
|
Unearned Stock-Based Employee Compensation |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$(26,697,680) |
|
$ (524,915) |
|
$ 4,226 |
|
$ (10,290) |
|
$(27,228,659) |
Exchange differences arising on translation of foreign operations |
|
10,375,628 |
|
- |
|
- |
|
- |
|
10,375,628 |
Unrealized gain (loss) on financial assets at FVTOCI |
|
|
|
|
|
|
|
|
|
|
Equity instruments |
|
- |
|
(1,309,697) |
|
- |
|
- |
|
(1,309,697) |
Debt instruments |
|
- |
|
(1,813,242) |
|
- |
|
- |
|
(1,813,242) |
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |
|
- |
|
884,417 |
|
- |
|
- |
|
884,417 |
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal |
|
- |
|
774,784 |
|
- |
|
- |
|
774,784 |
Loss allowance adjustments from debt instruments |
|
- |
|
(1,886) |
|
- |
|
- |
|
(1,886) |
Gain (loss) arising on changes in the fair value of hedging instruments |
|
- |
|
- |
|
23,887 |
|
- |
|
23,887 |
Transferred to initial carrying amount of hedged items |
|
- |
|
- |
|
(26,936) |
|
- |
|
(26,936) |
Share of other comprehensive income (loss) of associates |
|
73,283 |
|
(4,106) |
|
- |
|
- |
|
69,177 |
Share of unearned stock-based employee compensation of associates |
|
- |
|
- |
|
- |
|
4,475 |
|
4,475 |
Income tax effect |
|
- |
|
66,477 |
|
366 |
|
- |
|
66,843 |
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
$ (16,248,769) |
|
$ (1,928,168) |
|
$ 1,543 |
|
$ (5,815) |
|
$ (18,181,209) |
The aforementioned other equity includes the changes in other equities of TSMC and TSMC’s share of its subsidiaries and associates.
21. |
NET REVENUE |
|
a. |
Disaggregation of revenue from contracts with customers |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
Product |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
$253,858,860 |
|
$229,063,242 |
|
$654,788,772 |
|
$660,068,704 |
|
|
39,186,579 |
|
31,284,640 |
|
97,959,611 |
|
81,634,660 |
|
|
|
|
|
|
|
|
|
|
|
$ 293,045,439 |
|
$ 260,347,882 |
|
$ 752,748,383 |
|
$ 741,703,364 |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
Geography |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
$ 21,359,694 |
|
|
$ 59,818,521 |
|||
|
|
161,222,535 |
|
|
435,348,718 |
|||
|
|
40,025,587 |
|
|
137,777,196 |
|||
|
|
17,523,998 |
|
|
53,198,826 |
|||
|
|
15,343,476 |
|
|
43,956,875 |
|||
|
|
4,872,592 |
|
|
11,603,228 |
|||
|
|
|
|
|
|
|
|
|
|
|
$ 260,347,882 |
|
|
$ 741,703,364 |
- 34 -
The Company categorized the net revenue mainly based on the countries where the customers are headquartered.
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
Platform |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
$117,666,462 |
|
|
$313,687,622 |
|||
|
|
84,945,146 |
|
|
257,022,844 |
|||
|
|
17,015,261 |
|
|
48,142,079 |
|||
|
|
13,288,092 |
|
|
39,481,854 |
|||
|
|
14,829,678 |
|
|
46,065,364 |
|||
|
|
12,603,243 |
|
|
37,303,601 |
|||
|
|
|
|
|
|
|
|
|
|
|
$ 260,347,882 |
|
|
$ 741,703,364 |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
Resolution |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
$ 25,363,156 |
|
|
$ 26,271,343 |
|||
|
|
13,490,249 |
|
|
80,971,921 |
|||
|
|
53,286,968 |
|
|
137,839,613 |
|||
|
|
5,067,881 |
|
|
20,760,561 |
|||
|
|
43,784,814 |
|
|
135,481,592 |
|||
|
|
27,063,061 |
|
|
76,438,110 |
|||
|
|
17,851,864 |
|
|
56,431,514 |
|||
|
|
8,642,409 |
|
|
29,289,657 |
|||
|
|
5,860,805 |
|
|
15,065,883 |
|||
|
|
21,742,880 |
|
|
60,461,999 |
|||
|
|
6,909,155 |
|
|
21,056,511 |
|||
|
|
|
|
|
|
|
|
|
|
|
$ 229,063,242 |
|
|
$ 660,068,704 |
Starting the first quarter of 2019, the Company reported its net revenue breakdown by platform, instead of by application. The Company believes this change will better represent the Company’s results.
Commencing in the fourth quarter of 2018, the Company began to break down the net revenue by product, by geography and by resolution based on a new method which associates most estimated sales returns and allowances with individual sales transactions, as opposed to the previous method which allocated sales returns and allowances based on the aforementioned gross revenue. The Company believes the new method provides a more relevant breakdown than the previous one. On a comparable basis, the classifications of three months and nine months ended September 30, 2018 have been revised accordingly.
- 35 -
|
b. |
Contract balances |
The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment.
The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$313,171 thousand and NT$128,863 thousand for the three months ended September 30, 2019 and 2018, respectively; and NT$3,787,995 thousand and NT$31,641,659 thousand for the nine months ended September 30, 2019 and 2018, respectively.
22.OTHER INCOME
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
$ 2,747,173 |
|
$ 2,676,602 |
|
$ 9,271,535 |
|
$ 7,341,903 |
|
|
15,075 |
|
137,328 |
|
339,157 |
|
190,261 |
|
|
936,908 |
|
773,191 |
|
2,524,254 |
|
2,327,001 |
|
|
216,942 |
|
230,352 |
|
736,845 |
|
684,427 |
|
|
3,916,098 |
|
3,817,473 |
|
12,871,791 |
|
10,543,592 |
|
|
2,025 |
|
- |
|
246,455 |
|
158,358 |
|
|
|
|
|
|
|
|
|
|
|
$ 3,918,123 |
|
$ 3,817,473 |
|
$ 13,118,246 |
|
$ 10,701,950 |
23. |
FINANCE COSTS |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
$ 509,047 |
|
$ 361,150 |
|
$ 1,502,559 |
|
$ 889,414 |
|
|
276,357 |
|
377,854 |
|
918,184 |
|
1,285,754 |
|
|
57,862 |
|
- |
|
186,026 |
|
- |
|
|
168 |
|
64 |
|
481 |
|
150 |
|
|
|
|
|
|
|
|
|
|
|
$ 843,434 |
|
$ 739,068 |
|
$ 2,607,250 |
|
$ 2,175,318 |
- 36 -
24. |
OTHER GAINS AND LOSSES, NET |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Gain (loss) on disposal of financial assets, net |
|
|
|
|
|
|
|
|
|
$ 326,682 |
|
$ (262,517) |
|
$ 499,147 |
|
$ (774,784) |
|
|
- |
|
- |
|
(4,598) |
|
- |
|
Loss on financial instruments at FVTPL, net |
|
|
|
|
|
|
|
|
|
(932,889) |
|
(642,780) |
|
(1,289,813) |
|
(1,927,698) |
|
|
(4,850) |
|
(10,219) |
|
12,976 |
|
(2,494) |
|
The reversal (accrual) of expected credit loss of financial assets |
|
|
|
|
|
|
|
|
|
(3,638) |
|
185 |
|
(7,816) |
|
1,886 |
|
|
- |
|
641 |
|
5,165 |
|
393 |
|
|
34,846 |
|
46,017 |
|
371,702 |
|
60,014 |
|
|
|
|
|
|
|
|
|
|
|
$ (579,849) |
|
$ (868,673) |
|
$ (413,237) |
|
$ (2,642,683) |
25. |
INCOME TAX |
|
a. |
Income tax expense recognized in profit or loss |
Income tax expense consisted of the following:
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Current income tax expense |
|
|
|
|
|
|
|
|
|
$ 11,340,957 |
|
$ 10,826,220 |
|
$ 32,348,302 |
|
$ 38,684,790 |
|
|
(4,562) |
|
(26,628) |
|
(49,217) |
|
(989,984) |
|
|
(17,116) |
|
36,336 |
|
(19,692) |
|
110,882 |
|
|
11,319,279 |
|
10,835,928 |
|
32,279,393 |
|
37,805,688 |
|
Deferred income tax benefit |
|
|
|
|
|
|
|
|
|
- |
|
(346,383) |
|
- |
|
(1,062,480) |
|
|
(85,462) |
|
(690,675) |
|
(481,645) |
|
(1,494,058) |
|
|
(85,462) |
|
(1,037,058) |
|
(481,645) |
|
(2,556,538) |
|
|
|
|
|
|
|
|
|
|
|
$ 11,233,817 |
|
$ 9,798,870 |
|
$ 31,797,748 |
|
$ 35,249,150 |
In 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. For the year ended December 31, 2018, the effect of the change
- 37 -
in tax rate on deferred tax income to be recognized in profit or loss was NT$1,474,808 thousand, of which NT$412,328 thousand had not been recognized as of September 30, 2018, with corresponding effect recognized throughout the interim periods of 2018. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%.
For other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction.
b.Income tax expense recognized in other comprehensive income
|
c. |
Income tax examination |
The tax authorities have examined income tax returns of TSMC through 2016. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.
26. |
EARNINGS PER SHARE |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
$ 3.90 |
|
$ 3.44 |
|
$ 8.84 |
|
$ 9.69 |
|
|
$ 3.90 |
|
$ 3.44 |
|
$ 8.84 |
|
$ 9.69 |
EPS is computed as follows:
|
Amounts (Numerator) |
|
Number of Shares (Denominator) (In Thousands) |
|
EPS (NT$) |
|
|
|
|
|
|
|
|
Three months ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS |
|
|
|
|
|
|
|
$ 101,069,886 |
|
25,930,380 |
|
$ 3.90 |
|
|
|
|
|
|
|
|
Three months ended September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS |
|
|
|
|
|
|
|
$ 89,071,628 |
|
25,930,380 |
|
$ 3.44 |
(Continued)
- 38 -
|
|
Amounts (Numerator) |
|
Number of Shares (Denominator) (In Thousands) |
|
EPS (NT$) |
|
|
|
|
|
|
|
Nine months ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS |
|
|
|
|
|
|
|
$ 229,228,587 |
|
25,930,380 |
|
$ 8.84 |
|
|
|
|
|
|
|
|
Nine months ended September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic/Diluted EPS |
|
|
|
|
|
|
|
$ 251,146,789 |
|
25,930,380 |
|
$ 9.69 |
(Concluded)
27. |
ADDITIONAL INFORMATION OF EXPENSES BY NATURE |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
a.Depreciation of property, plant and equipment and right-of-use assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 59,338,430 |
|
$ 66,715,027 |
|
$196,529,678 |
|
$196,072,392 |
|
|
6,033,031 |
|
5,784,173 |
|
18,726,694 |
|
17,223,489 |
|
|
6,015 |
|
5,994 |
|
18,152 |
|
23,069 |
|
|
|
|
|
|
|
|
|
|
|
$ 65,377,476 |
|
$ 72,505,194 |
|
$ 215,274,524 |
|
$ 213,318,950 |
|
b.Amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 786,959 |
|
$ 492,247 |
|
$ 2,229,578 |
|
$ 1,470,473 |
|
|
591,867 |
|
612,376 |
|
1,848,354 |
|
1,726,955 |
|
|
|
|
|
|
|
|
|
|
|
$ 1,378,826 |
|
$ 1,104,623 |
|
$ 4,077,932 |
|
$ 3,197,428 |
|
|
|
|
|
|
|
|
|
|
|
$ 23,972,076 |
|
$ 21,886,199 |
|
$ 65,783,115 |
|
$ 62,206,346 |
- 39 -
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
d.Employee benefits expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits |
|
|
|
|
|
|
|
|
Defined contribution plans |
|
$ 652,508 |
|
$ 626,912 |
|
|
||
Defined benefit plans |
|
64,880 |
|
70,437 |
|
|
||
|
|
717,388 |
|
697,349 |
|
|
||
Other employee benefits |
|
28,920,482 |
|
26,731,464 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
$ 29,637,870 |
|
$ 27,428,813 |
|
$ 77,905,488 |
|
|
|
|
|
|
|
|
|
|
|
Employee benefits expense summarized by function |
|
|
|
|
|
|
|
|
Recognized in cost of revenue |
|
$ 17,354,798 |
|
$ 16,052,801 |
|
$ 45,929,943 |
|
$ 46,749,063 |
Recognized in operating expenses |
|
12,283,072 |
|
11,376,012 |
|
31,975,545 |
|
32,839,151 |
|
|
|
|
|
|
|
|
|
|
|
$ 29,637,870 |
|
$ 27,428,813 |
|
$ 77,905,488 |
|
$ 79,588,214 |
According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$6,784,104 thousand and NT$5,978,557 thousand for the three months ended September 30, 2019 and 2018, respectively; and NT$15,385,033 thousand and NT$16,850,949 thousand for the nine months ended September 30, 2019 and 2018, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
TSMC’s profit sharing bonus to employees and compensation to directors in the amounts of NT$23,570,040 thousand and NT$349,272 thousand in cash for 2018, respectively, and profit sharing bonus to employees and compensation to directors in the amounts of NT$23,019,082 thousand and NT$368,919 thousand in cash for 2017, respectively, had been approved by the Board of Directors of TSMC held on February 19, 2019 and February 13, 2018, respectively. There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2018 and 2017, respectively.
The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website.
- 40 -
28.CASH FLOW INFORMATION
Reconciliation of liabilities arising from financing activities
|
|
|
|
|
Non-cash changes |
|
|
|||||
|
|
Balance as of January 1, 2019 |
|
Financing Cash Flow |
|
Foreign Exchange Movement |
|
Leases Modifications |
|
Other Changes (Note) |
|
Balance as of September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 88,754,640 |
|
$ (3,872,065) |
|
$ 691,135 |
|
$ - |
|
$ - |
|
$ 85,573,710 |
|
|
10,189,045 |
|
(648,151) |
|
99,800 |
|
- |
|
(5,903,830) |
|
3,736,864 |
|
|
19,903,615 |
|
(2,477,012) |
|
17,074 |
|
(17,518) |
|
186,026 |
|
17,612,185 |
|
|
91,800,000 |
|
(34,900,000) |
|
- |
|
- |
|
- |
|
56,900,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 210,647,300 |
|
$ (41,897,228) |
|
$ 808,009 |
|
$ (17,518) |
|
$(5,717,804) |
|
$ 163,822,759 |
|
|
|
|
|
|
Non-cash changes |
|
|
||
|
|
Balance as of January 1, 2018 |
|
Financing Cash Flow |
|
Foreign Exchange Movement |
|
Other Changes (Note) |
|
Balance as of September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
Short-term loans |
|
$ 63,766,850 |
|
$ 9,626,705 |
|
$ 581,070 |
|
$ - |
|
$ 73,974,625 |
Guarantee deposits |
|
16,080,619 |
|
(693,735) |
|
338,458 |
|
(4,497,899) |
|
11,227,443 |
Bonds payable |
|
150,201,122 |
|
(58,024,900) |
|
(382,878) |
|
6,656 |
|
91,800,000 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ 230,048,591 |
|
$ (49,091,930) |
|
$ 536,650 |
|
$ (4,491,243) |
|
$ 177,002,068 |
|
Note: |
Other changes include guarantee deposits refunded to customers by offsetting related accounts receivable, financial cost of lease liabilities and amortization of bonds payable. |
29.FINANCIAL INSTRUMENTS
|
a. |
Categories of financial instruments |
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
$ 322,089 |
|
$ 3,504,590 |
|
$ 4,057,240 |
|
|
139,612,619 |
|
107,067,490 |
|
108,035,659 |
|
|
37,003 |
|
23,497 |
|
124,242 |
|
|
622,340,999 |
|
745,585,774 |
|
651,726,357 |
|
|
|
|
|
|
|
|
|
$ 762,312,710 |
|
$ 856,181,351 |
|
$ 763,943,498 |
|
Financial liabilities |
|
|
|
|
|
|
|
$ 497,911 |
|
$ 40,825 |
|
$ 240,620 |
|
|
23,852 |
|
155,832 |
|
3,750 |
|
|
441,053,768 |
|
318,475,704 |
|
307,871,280 |
|
|
|
|
|
|
|
|
|
$ 441,575,531 |
|
$ 318,672,361 |
|
$ 308,115,650 |
|
Note 1: |
Financial assets mandatorily measured at FVTPL. |
|
Note 2: |
Including notes and accounts receivable (net), equity and debt investments. |
|
Note 3: |
Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. |
|
Note 4: |
Held for trading. |
- 41 -
|
Note 5: |
Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable and guarantee deposits. |
|
b. |
Financial risk management objectives |
The Company seeks to ensure that sufficient cost-efficient funding is readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance.
The plans for material treasury activities are reviewed by Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the corporate treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.
|
c. |
Market risk |
The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged.
Foreign currency risk
The majority of the Company’s revenue is denominated in U.S. dollar and over one-half of its capital expenditures are denominated in currencies other than NT dollar, primarily in U.S. dollar, Japanese yen and Euro. As a result, any significant fluctuations to its disadvantage in exchanges rate of NT dollar against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse impact on the revenue and operating profit as expressed in NT dollar. The Company uses foreign currency derivative contracts, such as currency forwards or currency swaps, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities and certain forecasted transactions. The Company utilizes U.S. dollar denominated debt to partially offset currency risk arising from U.S. dollar denominated receivables for balance sheet hedges. These hedges reduce, but do not entirely eliminate, the financial impact on the Company caused by the effect of foreign currency exchange rate movements on the assets and liabilities.
Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the nine months ended September 30, 2019 and 2018, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$769,310 thousand and NT$585,920 thousand, respectively, and decreased its other comprehensive income by NT$250,439 thousand and NT$91,341 thousand, respectively, after taking into account hedges and offsetting positions.
Interest rate risk
The Company is exposed to interest rate risk primarily related to its investments in fixed income securities and the Company’s debts.
Financial assets at amortized costs are measured at amortized cost, and therefore changes in interest rates would not affect the fair value. On the other hand, financial assets at FVTPL and financial assets at FVTOCI are exposed to fair value fluctuations caused by changes in interest rates. The Company entered into interest rate futures to partially hedge the interest rate risk on its financial assets at FVTPL and financial assets at FVTOCI. These hedges can offset only a small portion of the financial impact from movements in interest rates.
- 42 -
Based on a sensitivity analysis performed on fixed income investments at the end of the reporting period, an interest rate increase of 100 basis points (1.00%) across all maturities would have decreased the fair value by NT$3,239,317 thousand and NT$2,830,260 thousand for the nine months ended September 30, 2019 and 2018, respectively. The decreases were composed of NT$3,238,349 thousand decrease and NT$2,680,417 thousand decrease in other comprehensive income, and NT$968 thousand decrease and NT$149,843 thousand decrease in net income for the nine months ended September 30, 2019 and 2018, respectively.
All of the Company’s debts are fixed-rate, NT dollar denominated bonds and measured at amortized cost. As such, changes in interest rates would not affect the future cash flows and fair value.
Other price risk
The Company is exposed to equity price risk arising from financial assets at FVTOCI.
Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the nine months ended September 30, 2019 and 2018, the other comprehensive income would have decreased by NT$392,735 thousand and NT$628,363 thousand, respectively.
|
d. |
Credit risk management |
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily trade receivables, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets.
Business related credit risk
The Company’s trade receivables are from its customers worldwide. The majority of the Company’s outstanding trade receivables are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on trade receivables, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen.
As of September 30, 2019, December 31, 2018 and September 30, 2018, the Company’s ten largest customers accounted for 77%, 79% and 76% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.
Financial credit risk
The Company mitigates its financial credit risk by selecting counterparties with investment-grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties.
The risk management of expected credit loss for financial assets at amortized cost and investments in debt instruments at FVTOCI is as follows:
The Company only invests in debt instruments that are rated as investment grade or higher. The credit rating information is supplied by external rating agencies. The Company assesses whether there has been a significant increase in credit risk since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the bond issuers.
- 43 -
The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:
Category |
|
Description |
|
Basis for Recognizing Expected Credit Loss |
|
Expected Credit Loss Ratio |
|
|
|
|
|
|
|
Performing |
|
Credit rating on trade date and valuation date: (1)Within investment grade (2)Between BB+ and BB- |
|
12 months expected credit loss |
|
0-0.1% |
Doubtful |
|
Credit rating on trade date and valuation date: (1)From investment grade to non-investment grade (2)From BB+~BB- to B+~CCC- |
|
Lifetime expected credit loss-not credit impaired |
|
|
In default |
|
Credit rating CC or below |
|
Lifetime expected credit loss-credit impaired |
|
|
Write-off |
|
There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery |
|
Amount is written off |
|
|
For the nine months ended September 30, 2019 and 2018, the expected credit loss increases NT$2,942 thousand and decreases NT$1,228 thousand, respectively. The changes are mainly due to investment portfolio adjustment.
|
e. |
Liquidity risk management |
The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalent, debt investment at FVTPL, financial assets at FVTOCI-current, and financial assets amortized at cost-current.
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.
(Continued)
- 44 -
|
|
Less Than |
|
2-3 Years |
|
4-5 Years |
|
5+ Years |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
|
|
|
|
|
|
|
|
|
|
$ 82,587,889 |
|
$ - |
|
$ - |
|
$ - |
|
$ 82,587,889 |
|
|
(82,309,825) |
|
- |
|
- |
|
- |
|
(82,309,825) |
|
|
278,064 |
|
- |
|
- |
|
- |
|
278,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 302,610,454 |
|
$ 6,362,454 |
|
$ 25,243,125 |
|
$ 11,019,173 |
|
$ 345,235,206 |
(Concluded)
Additional information about the maturity analysis for lease liabilities:
|
Less than 5 Years |
|
6-10 Years |
|
11-15 Years |
|
16-20 Years |
|
20+ Years |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 7,898,537 |
|
$ 5,590,628 |
|
$ 3,681,126 |
|
$ 1,635,848 |
|
$ 111,571 |
|
Less Than |
|
2-3 Years |
|
4-5 Years |
|
5+ Years |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans |
|
$ 88,810,737 |
|
$ - |
|
$ - |
|
$ - |
|
$ 88,810,737 |
Accounts payable (including related parties) |
|
34,357,432 |
|
- |
|
- |
|
- |
|
34,357,432 |
Payables to contractors and equipment suppliers |
|
43,133,659 |
|
- |
|
- |
|
- |
|
43,133,659 |
Accrued expenses and other current liabilities |
|
50,240,928 |
|
- |
|
- |
|
- |
|
50,240,928 |
Bonds payable |
|
36,039,935 |
|
35,340,742 |
|
22,979,426 |
|
- |
|
94,360,103 |
Guarantee deposits (including those classified under accrued expenses and other current liabilities) |
|
6,835,667 |
|
2,891,663 |
|
461,715 |
|
- |
|
10,189,045 |
|
|
259,418,358 |
|
38,232,405 |
|
23,441,141 |
|
- |
|
321,091,904 |
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
|
|
|
|
|
|
|
|
|
Outflows |
|
49,302,325 |
|
- |
|
- |
|
- |
|
49,302,325 |
Inflows |
|
(49,393,679) |
|
- |
|
- |
|
- |
|
(49,393,679) |
|
|
(91,354) |
|
- |
|
- |
|
- |
|
(91,354) |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 259,327,004 |
|
$ 38,232,405 |
|
$ 23,441,141 |
|
$ - |
|
$ 321,000,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans |
|
$ 74,021,637 |
|
$ - |
|
$ - |
|
$ - |
|
$ 74,021,637 |
Accounts payable (including related parties) |
|
30,305,076 |
|
- |
|
- |
|
- |
|
30,305,076 |
Payables to contractors and equipment suppliers |
|
58,590,057 |
|
- |
|
- |
|
- |
|
58,590,057 |
Accrued expenses and other current liabilities |
|
41,974,079 |
|
- |
|
- |
|
- |
|
41,974,079 |
Bonds payable |
|
36,166,206 |
|
35,464,787 |
|
23,077,131 |
|
- |
|
94,708,124 |
Guarantee deposits (including those classified under accrued expenses and other current liabilities) |
|
6,781,863 |
|
4,359,556 |
|
86,024 |
|
- |
|
11,227,443 |
|
|
247,838,918 |
|
39,824,343 |
|
23,163,155 |
|
- |
|
310,826,416 |
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
|
|
|
|
|
|
|
|
|
Outflows |
|
60,704,314 |
|
- |
|
- |
|
- |
|
60,704,314 |
Inflows |
|
(60,581,572) |
|
- |
|
- |
|
- |
|
(60,581,572) |
|
|
122,742 |
|
- |
|
- |
|
- |
|
122,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 247,961,660 |
|
$ 39,824,343 |
|
$ 23,163,155 |
|
$ - |
|
$ 310,949,158 |
- 45 -
|
f. |
Fair value of financial instruments |
|
1) |
Fair value measurements recognized in the consolidated balance sheets |
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
|
● |
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|
● |
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
|
● |
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.
|
2) |
Fair value of financial instruments that are measured at fair value on a recurring basis |
Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:
|
September 30, 2019 |
|||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatorily measured at FVTPL |
|
|
|
|
|
|
|
|
|
$ - |
|
$ 152,332 |
|
$ - |
|
$ 152,332 |
|
|
- |
|
- |
|
124,108 |
|
124,108 |
|
|
- |
|
45,649 |
|
- |
|
45,649 |
|
|
|
|
|
|
|
|
|
|
|
$ - |
|
$ 197,981 |
|
$ 124,108 |
|
$ 322,089 |
|
|
|
|
|
|
|
|
|
|
Financial assets at FVTOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in debt instruments |
|
|
|
|
|
|
|
|
|
$ - |
|
$ 54,113,016 |
|
$ - |
|
$ 54,113,016 |
|
|
- |
|
52,743,788 |
|
- |
|
52,743,788 |
|
|
15,109,451 |
|
151,194 |
|
- |
|
15,260,645 |
|
|
- |
|
9,923,553 |
|
- |
|
9,923,553 |
|
|
- |
|
92,450 |
|
- |
|
92,450 |
|
Investments in equity instruments |
|
|
|
|
|
|
|
|
|
- |
|
43,610 |
|
3,982,906 |
|
4,026,516 |
|
|
- |
|
3,452,651 |
|
- |
|
3,452,651 |
|
|
|
|
|
|
|
|
|
|
|
$ 15,109,451 |
|
$ 120,520,262 |
|
$ 3,982,906 |
|
$ 139,612,619 |
|
|
|
|
|
|
|
|
|
|
Hedging financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
|
|
$ 30,291 |
|
$ - |
|
$ - |
|
$ 30,291 |
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
- |
|
6,712 |
|
- |
|
6,712 |
|
|
|
|
|
|
|
|
|
|
|
|
$ 30,291 |
|
$ 6,712 |
|
$ - |
|
$ 37,003 |
- 46 -
|
|
September 30, 2019 |
||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading |
|
|
|
|
|
|
|
|
|
$ - |
|
$ 497,911 |
|
$ - |
|
$ 497,911 |
|
|
|
|
|
|
|
|
|
|
Hedging financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
|
|
$ 653 |
|
$ - |
|
$ - |
|
$ 653 |
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
- |
|
23,199 |
|
- |
|
23,199 |
|
|
|
|
|
|
|
|
|
|
|
$ 653 |
|
$ 23,199 |
|
$ - |
|
$ 23,852 |
(Concluded)
|
December 31, 2018 |
|||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatorily measured at FVTPL |
|
|
|
|
|
|
|
|
Agency mortgage-backed securities |
|
$ - |
|
$ 3,419,287 |
|
$ - |
|
$ 3,419,287 |
Forward exchange contracts |
|
- |
|
85,303 |
|
- |
|
85,303 |
|
|
|
|
|
|
|
|
|
|
|
$ - |
|
$ 3,504,590 |
|
$ - |
|
$ 3,504,590 |
|
|
|
|
|
|
|
|
|
Financial assets at FVTOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in debt instruments |
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ - |
|
$ 40,753,582 |
|
$ - |
|
$ 40,753,582 |
Agency bonds/Agency mortgage-backed securities |
|
- |
|
31,288,762 |
|
- |
|
31,288,762 |
Asset-backed securities |
|
- |
|
15,670,295 |
|
- |
|
15,670,295 |
Government bonds |
|
11,006,167 |
|
145,192 |
|
- |
|
11,151,359 |
Commercial paper |
|
- |
|
107,590 |
|
- |
|
107,590 |
Investments in equity instruments |
|
|
|
|
|
|
|
|
Non-publicly traded equity investments |
|
- |
|
- |
|
3,910,681 |
|
3,910,681 |
Publicly traded stocks |
|
590,152 |
|
- |
|
- |
|
590,152 |
Notes and accounts receivable, net |
|
- |
|
3,595,069 |
|
- |
|
3,595,069 |
|
|
|
|
|
|
|
|
|
|
|
$ 11,596,319 |
|
$ 91,560,490 |
|
$ 3,910,681 |
|
$ 107,067,490 |
|
|
|
|
|
|
|
|
|
Hedging financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
$ - |
|
$ 23,497 |
|
$ - |
|
$ 23,497 |
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
$ - |
|
$ 40,825 |
|
$ - |
|
$ 40,825 |
|
|
|
|
|
|
|
|
|
Hedging financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
|
Interest rate futures contracts |
|
$ 153,891 |
|
$ - |
|
$ - |
|
$ 153,891 |
Cash flow hedges |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
- |
|
1,941 |
|
- |
|
1,941 |
|
|
|
|
|
|
|
|
|
|
|
$ 153,891 |
|
$ 1,941 |
|
$ - |
|
$ 155,832 |
- 47 -
|
September 30, 2018 |
|||||||
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|
|
|
|
|
Financial assets at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mandatorily measured at FVTPL |
|
|
|
|
|
|
|
|
Agency mortgage-backed securities |
|
$ - |
|
$3,927,700 |
|
$ - |
|
$ 3,927,700 |
Forward exchange contracts |
|
- |
|
129,540 |
|
- |
|
129,540 |
|
|
|
|
|
|
|
|
|
|
|
$ - |
|
$ 4,057,240 |
|
$ - |
|
$ 4,057,240 |
|
|
|
|
|
|
|
|
|
Financial assets at FVTOCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in debt instruments |
|
|
|
|
|
|
|
|
Corporate bonds |
|
$ - |
|
$ 40,587,299 |
|
$ - |
|
$ 40,587,299 |
Agency bonds/Agency mortgage-backed securities |
|
- |
|
31,663,708 |
|
- |
|
31,663,708 |
Asset-backed securities |
|
- |
|
15,028,991 |
|
- |
|
15,028,991 |
Government bonds |
|
10,671,468 |
|
143,567 |
|
- |
|
10,815,035 |
Commercial paper |
|
- |
|
258,345 |
|
- |
|
258,345 |
Investments in equity instruments |
|
|
|
|
|
|
|
|
Non-publicly traded equity investments |
|
- |
|
- |
|
5,701,354 |
|
5,701,354 |
Publicly traded stocks |
|
860,688 |
|
- |
|
- |
|
860,688 |
|
|
|
|
|
|
|
|
|
Notes and accounts receivable, net |
|
- |
|
3,120,239 |
|
- |
|
3,120,239 |
|
|
|
|
|
|
|
|
|
|
|
$ 11,532,156 |
|
$ 90,802,149 |
|
$ 5,701,354 |
|
$ 108,035,659 |
|
|
|
|
|
|
|
|
|
Hedging financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges |
|
|
|
|
|
|
|
|
Interest rate futures contracts |
|
$ 120,417 |
|
$ - |
|
$ - |
|
$ 120,417 |
Cash flow hedges |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
- |
|
3,825 |
|
- |
|
3,825 |
|
|
|
|
|
|
|
|
|
|
|
$ 120,417 |
|
$ 3,825 |
|
$ - |
|
$ 124,242 |
|
|
|
|
|
|
|
|
|
Financial liabilities at FVTPL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
$ - |
|
$ 240,620 |
|
$ - |
|
$ 240,620 |
|
|
|
|
|
|
|
|
|
Hedging financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
$ - |
|
$ 3,750 |
|
$ - |
|
$ 3,750 |
Reconciliation of Level 3 fair value measurements of financial assets
The financial assets measured at Level 3 fair value were financial assets at FVTPL and equity investments classified as financial assets at FVTOCI. Reconciliations for the nine months ended September 30, 2019 and 2018 were as follows:
- 48 -
|
Note: |
The transfer from level 3 to level 2 is because observable market data became available for the equity investments. |
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
|
● |
The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities, government bonds, commercial papers and non-publicly traded equity investments are determined by quoted market prices provided by third party pricing services. |
|
● |
Forward exchange contracts are measured using forward exchange rates and the discounted curves that are derived from quoted market prices. |
|
● |
The fair value of accounts receivables classified as at FVTOCI are determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties. |
Valuation techniques and assumptions used in Level 3 fair value measurement
The fair values of non-publicly traded equity investments are mainly determined by using the asset approach, income approach and market approach.
The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2019, December 31, 2018 and September 30, 2018, the Company uses unobservable inputs derived from discount for lack of marketability by 10%. When other inputs remain equal, the fair value will decrease by NT$34,249 thousand, NT$31,420 thousand and NT$31,736 thousand if discounts for lack of marketability increase by 1%.
The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On September 30, 2019, December 31, 2018 and September 30, 2018, the Company uses significant unobservable inputs, which include expected returns, discount rate of 10%, discount for lack of marketability of 10%, and discounts for lack of control of 10%. On September 30, 2018, when other inputs remain equal, if discount rate increases by 1%, the fair value will decrease by NT$72,717 thousand; if discount for lack of marketability increases by 1%, the fair value will decrease by NT$19,000 thousand; if discount for lack of control increases by 1%, the fair value will decrease by NT$19,000 thousand.
For the remaining few investments, the market approach is used to arrive at their fair values, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.
In addition, the fair values of convertible bonds are determined by the present value of future cash flow based on a discount rate reflecting issuer’s credit spread and market conditions, combined with the fair value of conversion option estimated by the option pricing model considering recent financing activities of the investee and market transaction prices of the similar companies.
|
3) |
Fair value of financial instruments that are not measured at fair value |
Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values.
- 49 -
Fair value hierarchy
The table below sets out the fair value hierarchy for the Company’s assets and liabilities which are not required to measure at fair value:
|
September 30, 2019 |
|||
|
|
Carrying |
|
Level 2 |
|
|
Amount |
|
Fair Value |
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
Financial assets at amortized costs |
|
|
|
|
|
$ 7,914,087 |
|
$ 7,998,094 |
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized costs |
|
|
|
|
|
$ 56,900,000 |
|
$ 57,860,225 |
|
December 31, 2018 |
|||
|
|
Carrying |
|
Level 2 |
|
|
Amount |
|
Fair Value |
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
Financial assets at amortized costs |
|
|
|
|
Corporate bonds |
|
$ 19,511,794 |
|
$ 19,554,553 |
Commercial paper |
|
2,294,098 |
|
2,296,188 |
|
|
|
|
|
|
|
$ 21,805,892 |
|
$ 21,850,741 |
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized costs |
|
|
|
|
Bonds payable |
|
$ 91,800,000 |
|
$ 93,171,255 |
|
September 30, 2018 |
|||
|
|
Carrying |
|
Level 2 |
|
|
Amount |
|
Fair Value |
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
Financial assets at amortized costs |
|
|
|
|
Corporate bonds |
|
$ 19,362,587 |
|
$ 19,516,024 |
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized costs |
|
|
|
|
Bonds payable |
|
$ 91,800,000 |
|
$ 93,343,309 |
- 50 -
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair value of corporate bonds is determined by quoted market prices provided by third party pricing services.
The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.
The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services.
30. |
RELATED PARTY TRANSACTIONS |
Intercompany balances and transactions between TSMC and its subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties:
|
a. |
Related party name and categories |
Related Party Name |
|
Related Party Categories |
|
|
|
GUC |
|
Associates |
VIS |
|
Associates |
SSMC |
|
Associates |
Xintec |
|
Associates |
TSMC Education and Culture Foundation |
|
Other related parties |
TSMC Charity Foundation |
|
Other related parties |
|
b. |
Net revenue |
|
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Item |
|
Related Party Categories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
|
$ 1,623,191 |
|
$ 2,878,283 |
|
$ 4,195,498 |
|
$ 7,174,347 |
|
|
Other related parties |
|
- |
|
- |
|
- |
|
330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,623,191 |
|
$ 2,878,283 |
|
$ 4,195,498 |
|
$ 7,174,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
|
$ 56,288 |
|
$ 51,691 |
|
$ 136,994 |
|
$ 312,005 |
|
c. |
Purchases |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Related Party Categories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,762,797 |
|
$ 2,295,579 |
|
$ 4,545,355 |
|
$ 6,693,633 |
- 51 -
|
d. |
Receivables from related parties |
|
|
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Item |
|
Related Party Name/Categories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUC |
|
$ 897,889 |
|
$ 481,934 |
|
$ 1,546,977 |
|
|
Xintec |
|
282,891 |
|
102,478 |
|
210,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,180,780 |
|
$ 584,412 |
|
$ 1,757,073 |
|
|
|
|
|
|
|
|
|
|
|
SSMC |
|
$ 52,517 |
|
$ 53,780 |
|
$ 56,181 |
|
|
VIS |
|
3,435 |
|
10,423 |
|
7,241 |
|
|
Other associates |
|
629 |
|
825 |
|
963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 56,581 |
|
$ 65,028 |
|
$ 64,385 |
|
e. |
Payables to related parties |
|
|
|
September 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Item |
|
Related Party Name/Categories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xintec |
|
$ 904,076 |
|
$ 649,812 |
|
$ 728,756 |
|
|
SSMC |
|
511,252 |
|
362,564 |
|
367,328 |
|
|
VIS |
|
212,513 |
|
357,080 |
|
467,874 |
|
|
Other associates |
|
10,168 |
|
7,043 |
|
7,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 1,638,009 |
|
$ 1,376,499 |
|
$ 1,571,303 |
|
f. |
Others |
|
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|||||
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Item |
|
Related Party Categories |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
|
$ 1,180,641 |
|
$ 890,630 |
|
$ 1,778,150 |
|
$ 1,889,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other related parties |
|
$ 30,000 |
|
$ 25,227 |
|
$ 90,000 |
|
$ 95,528 |
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
- 52 -
|
g. |
Compensation of key management personnel |
The compensation to directors and other key management personnel for the three months and nine months ended September 30, 2019 and 2018 were as follows:
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Short-term employee benefits |
|
$ 512,791 |
|
$ 471,505 |
|
$ 1,247,680 |
|
$ 1,492,033 |
Post-employment benefits |
|
585 |
|
699 |
|
2,100 |
|
2,636 |
|
|
|
|
|
|
|
|
|
|
|
$ 513,376 |
|
$ 472,204 |
|
$ 1,249,780 |
|
$ 1,494,669 |
The compensation to directors and other key management personnel were determined by the Compensation Committee of TSMC in accordance with the individual performance and the market trends.
31. |
PLEDGED ASSETS |
The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of September 30, 2019, December 31, 2018 and September 30, 2018, the aforementioned other financial assets amounted to NT$117,405 thousand, NT$124,244 thousand and NT$123,520 thousand, respectively.
32. |
SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS |
Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
|
a. |
Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of September 30, 2019, the R.O.C. Government did not invoke such right. |
|
b. |
Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of September 30, 2019. |
- 53 -
|
terminated the investigation in October 2019. The pending litigation in the U.S. District Court for the District of Delaware was dismissed at the same time. |
|
d. |
On September 28, 2017, TSMC was contacted by the European Commission (the “Commission”), which has asked us for information and documents concerning alleged anti-competitive practices in relation to semiconductor sales. We are cooperating with the Commission to provide the requested information and documents. In light of the fact that this proceeding is still in its preliminary stage, it is premature to predict how the case will proceed, the outcome of the proceeding or its impact. |
|
e. |
TSMC entered into long-term purchase agreements of material with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements. |
|
f. |
TSMC entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement. |
|
g. |
TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements. |
|
h. |
Amounts available under unused letters of credit as of September 30, 2019, December 31, 2018 and September 30, 2018 were NT$62,054 thousand, NT$70,702 thousand and NT$70,162 thousand, respectively. |
33. |
EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES |
The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:
|
Foreign Currencies (In Thousands) |
|
Exchange Rate (Note 1) |
|
Carrying Amount (In Thousands) |
|
|
|
|
|
|
|
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
|
$ 4,741,787 |
|
31.027 |
|
$ 147,123,438 |
|
|
397,707 |
|
7.120(Note 2) |
|
12,339,660 |
|
|
2,976 |
|
34.027 |
|
101,264 |
|
|
53,721,544 |
|
0.2876 |
|
15,450,316 |
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
USD |
|
$ 5,384,075 |
|
31.027 |
|
$ 167,051,684 |
EUR |
|
1,121,555 |
|
34.027 |
|
38,163,156 |
JPY |
|
59,107,992 |
|
0.2876 |
|
16,999,458 |
(Continued)
- 54 -
|
|
Foreign Currencies (In Thousands) |
|
Exchange Rate (Note 1) |
|
Carrying Amount (In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
USD |
|
4,618,566 |
|
30.740 |
|
141,974,734 |
USD |
|
343,132 |
|
6.866(Note 2) |
|
10,547,875 |
EUR |
|
7,561 |
|
35.22 |
|
266,307 |
JPY |
|
490,635 |
|
0.2783 |
|
136,544 |
Non-monetary items |
|
|
|
|
|
|
HKD |
|
144,567 |
|
3.93 |
|
568,150 |
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
USD |
|
4,323,763 |
|
30.740 |
|
132,912,486 |
EUR |
|
477,776 |
|
35.22 |
|
16,827,260 |
JPY |
|
35,084,436 |
|
0.2783 |
|
9,763,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
USD |
|
4,815,815 |
|
30.505 |
|
146,906,437 |
USD |
|
365,757 |
|
6.881(Note 2) |
|
11,157,426 |
EUR |
|
5,861 |
|
35.68 |
|
209,127 |
JPY |
|
2,160,510 |
|
0.2699 |
|
583,122 |
Non-monetary items |
|
|
|
|
|
|
HKD |
|
178,124 |
|
3.90 |
|
694,683 |
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetary items |
|
|
|
|
|
|
USD |
|
4,251,255 |
|
30.505 |
|
129,684,537 |
EUR |
|
516,393 |
|
35.68 |
|
18,424,920 |
JPY |
|
38,344,359 |
|
0.2699 |
|
10,349,142 |
(Concluded)
|
Note 1: |
Except as otherwise noted, exchange rate represents the number of NT dollar for which one foreign currency could be exchanged. |
|
Note 2: |
The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged. |
Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the nine months ended September 30, 2019 and 2018, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.
- 55 -
On January 19, 2019, the Company discovered a wafer contamination issue in a fab in Taiwan caused by a batch of unqualified photoresist materials. After investigation, the Company immediately stopped using the unqualified materials. An estimated loss of NT$3,400,000 thousand related to this event was recognized in cost of revenue for the three months ended March 31, 2019.
The Company experienced a computer virus outbreak on August 3, 2018, which affected a number of computer systems and fab tools, and consequently impacted wafer production in Taiwan. All the impacted tools have been recovered by August 6, 2018. The Company recognized a loss of NT$2,596,046 thousand related to this incident for the three months ended September 30, 2018, which was included in cost of revenue.
35. |
ADDITIONAL DISCLOSURES |
Following are the additional disclosures required by the Securities and Futures Bureau for TSMC:
|
a. |
Financings provided: Please see Table 1 attached; |
|
b. |
Endorsement/guarantee provided: Please see Table 2 attached; |
|
c. |
Marketable securities held (excluding investments in subsidiaries and associates): Please see Table 3 attached; |
|
d. |
Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Please see Table 4 attached; |
|
e. |
Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: Please see Table 5 attached; |
|
f. |
Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None; |
|
g. |
Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached; |
|
h. |
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 7 attached; |
|
i. |
Information about the derivative financial instruments transaction: Please see Notes 7 and 10; |
|
j. |
Others: The business relationship between the parent and the subsidiaries and significant transactions between them: Please see Table 8 attached; |
|
k. |
Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): Please see Table 9 attached; |
- 56 -
|
1) |
The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 10 attached. |
|
2) |
Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: Please see Table 8 attached. |
36. |
OPERATING SEGMENTS INFORMATION |
The Company has only one operating segment, the foundry segment. The foundry segment engages mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.
The Company uses the income from operations as the measurement for the basis of performance assessment. The basis for such measurement is the same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results.
- 57 -
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FINANCINGS PROVIDED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. |
Financing Company |
Counter-party |
Financial Statement Account |
Related Party |
Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3) |
Ending Balance (Foreign Currencies in Thousands) (Note 3) |
Amount Actually Drawn (Foreign Currencies in Thousands) |
Interest Rate |
Nature for Financing (Note 4) |
Transaction Amounts |
Reason for Financing (Note 4) |
Allowance for Bad Debt |
Collateral |
Financing Limits for Each Borrowing Company (Notes 1 and 2) |
Financing Company’s Total Financing Amount Limits (Notes 1 and 2) |
|
Item |
Value |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
TSMC China |
TSMC Nanjing
|
Other receivables from related parties |
Yes |
$ 45,367,933 (RMB 7,000,000)& (US$ 479,000) |
$ 39,675,772 (RMB 6,000,000)& (US$ 436,000) |
$ 24,458,322 (RMB 5,000,000)& (US$ 86,000) |
1.50%-1.96% |
The need for long-term financing |
$ - |
Operating capital |
$ - |
- |
$ - |
$ 56,600,438 |
$ 56,600,438 |
2 |
TSMC Global |
TSMC |
Other receivables from related parties |
Yes |
46,540,500 (US$ 1,500,000) |
31,027,000 (US$ 1,000,000) |
31,027,000 (US$ 1,000,000) |
- |
The need for short-term financing |
- |
Operating capital |
- |
- |
- |
408,871,808 |
408,871,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: |
The total amount available for lending purpose shall not exceed the net worth of TSMC China. The total amount for lending to a company for funding for a short-term period shall not exceed ten percent (10%) of the net worth of TSMC China. In addition, the total amount lendable to any one borrower shall be no more than thirty percent (30%) of the borrower’s net worth. The above restriction does not apply to the subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC. However, the total amount lendable to any such subsidiary of TSMC shall not exceed forty percent (40%) of the net worth of TSMC China. When there is a lending for funding needs by TSMC China to TSMC, or to the subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC, which are not located in Taiwan, the lending will not be subject to the restriction set forth in the above paragraph of this Article. Notwithstanding the foregoing, the aggregate amount available for lending to such borrowers and the total amount lendable to each of such borrowers still shall not exceed the net worth of TSMC China. |
Note 2: |
The total amount available for lending purpose shall not exceed the net worth of TSMC Global. The total amount for lending to a company for funding for a short-term period shall not exceed ten percent (10%) of the net worth of TSMC Global. In addition, the total amount lendable to any one borrower shall be no more than thirty percent (30%) of the borrower’s net worth. While TSMC, or foreign subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC will not be subject to this restriction, their total borrowing amount still shall not exceed the net worth of TSMC Global. Notwithstanding the foregoing, the aggregate amount for lending to Taiwan companies other than TSMC shall not exceed forty percent (40%) of the net worth of TSMC Global. |
Note 3: |
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. |
Note 4: |
The restriction of the term of each loan for funding not exceeding one year shall not apply to inter-company loans for funding between offshore subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares. |
- 58 -
TABLE 2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. |
Endorsement/ Guarantee Provider |
Guaranteed Party |
Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2) |
Maximum Balance (Note 3) |
Ending Balance (Note 3) |
Amount Actually Drawn (US$ in Thousands) |
Amount of Endorsement/ Guarantee Collateralized by Properties |
Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements |
Maximum Endorsement/ Guarantee Amount Allowable (Note 2) |
Guarantee Provided by Parent Company |
Guarantee Provided by A Subsidiary |
Guarantee Provided to Subsidiaries in Mainland China |
|
Name |
Nature of Relationship |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
TSMC |
TSMC North America |
Subsidiary |
$ 396,714,017 |
$ 2,581,859 (US$ 83,213) |
$ 2,581,859 (US$ 83,213) |
$ 2,581,859 (US$ 83,213) |
$ - |
0.16% |
$ 396,714,017 |
Yes |
No |
No |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: |
The total amount of the guarantee provided by TSMC to any individual entity shall not exceed ten percent (10%) of TSMC’s net worth, or the net worth of such entity. However, subsidiaries whose voting shares are 100% owned, directly or indirectly, by TSMC are not subject to the above restrictions after the approval of the Board of Directors. |
Note 2: |
The total amount of guarantee shall not exceed twenty-five percent (25%) of TSMC’s net worth. |
Note 3: |
The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. |
- 59 -
TABLE 3
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES HELD
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC |
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
United Industrial Gases Co., Ltd. |
- |
Financial assets at fair value through other comprehensive income |
21,230 |
$ 425,627 |
10 |
$ 425,627 |
|
|
Shin-Etsu Handotai Taiwan Co., Ltd. |
- |
〃 |
10,500 |
305,088 |
7 |
305,088 |
|
|
Global Investment Holding Inc. |
- |
〃 |
11,124 |
83,613 |
6 |
83,613 |
|
|
W.K. Technology Fund IV |
- |
〃 |
806 |
4,942 |
2 |
4,942 |
|
|
Horizon Ventures Fund |
- |
〃 |
- |
2,153 |
12 |
2,153 |
|
|
Crimson Asia Capital |
- |
〃 |
- |
2,124 |
1 |
2,124 |
|
|
|
|
|
|
|
|
|
|
TSMC Partners |
Convertible bonds |
|
|
|
|
|
|
|
|
Inpria Corporation |
- |
Financial assets at fair value through Profit or Loss |
- |
US$ 4,000 |
N/A |
US$ 4,000 |
|
|
|
|
|
|
|
|
|
|
|
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
China Walden Venture Investments II, L.P. |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 8,959 |
9 |
US$ 8,959 |
|
|
Shanghai Walden Venture Capital Enterprise |
- |
〃 |
- |
US$ 7,305 |
6 |
US$ 7,305 |
|
|
China Walden Venture Investments III, L.P. |
- |
〃 |
- |
US$ 3,184 |
4 |
US$ 3,184 |
|
|
Tela Innovations |
- |
〃 |
10,440 |
- |
25 |
- |
|
|
Mcube Inc. |
- |
〃 |
6,333 |
- |
12 |
- |
|
|
|
|
|
|
|
|
|
|
TSMC Global |
Corporate bond |
|
|
|
|
|
|
|
|
Bank of America Corp |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 51,997 |
N/A |
US$ 51,997 |
|
|
Morgan Stanley |
- |
〃 |
- |
US$ 47,160 |
N/A |
US$ 47,160 |
|
|
Goldman Sachs Group Inc/The |
- |
〃 |
- |
US$ 46,103 |
N/A |
US$ 46,103 |
|
|
Citigroup Inc |
- |
〃 |
- |
US$ 42,725 |
N/A |
US$ 42,725 |
|
|
JPMorgan Chase & Co |
- |
〃 |
- |
US$ 40,747 |
N/A |
US$ 40,747 |
|
|
CVS Health Corp |
- |
〃 |
- |
US$ 26,439 |
N/A |
US$ 26,439 |
|
|
AT&T Inc |
- |
〃 |
- |
US$ 26,215 |
N/A |
US$ 26,215 |
|
|
Mitsubishi UFJ Financial Group Inc |
- |
〃 |
- |
US$ 21,807 |
N/A |
US$ 21,807 |
|
|
Sumitomo Mitsui Financial Group Inc |
- |
〃 |
- |
US$ 20,642 |
N/A |
US$ 20,642 |
|
|
HSBC Holdings PLC |
- |
〃 |
- |
US$ 20,507 |
N/A |
US$ 20,507 |
|
|
Apple Inc |
- |
〃 |
- |
US$ 19,078 |
N/A |
US$ 19,078 |
|
|
Wells Fargo & Co |
- |
〃 |
- |
US$ 18,870 |
N/A |
US$ 18,870 |
|
|
Verizon Communications Inc |
- |
〃 |
- |
US$ 16,701 |
N/A |
US$ 16,701 |
|
|
Toronto-Dominion Bank/The |
- |
〃 |
- |
US$ 15,826 |
N/A |
US$ 15,826 |
|
|
Bristol-Myers Squibb Co |
- |
〃 |
- |
US$ 14,490 |
N/A |
US$ 14,490 |
|
|
Banco Santander SA |
- |
〃 |
- |
US$ 14,436 |
N/A |
US$ 14,436 |
|
|
Hewlett Packard Enterprise Co |
- |
〃 |
- |
US$ 14,303 |
N/A |
US$ 14,303 |
|
|
Fiserv Inc |
- |
〃 |
- |
US$ 13,303 |
N/A |
US$ 13,303 |
|
|
BAT Capital Corp |
- |
〃 |
- |
US$ 13,254 |
N/A |
US$ 13,254 |
|
|
UBS Group Funding Switzerland AG |
- |
〃 |
- |
US$ 12,906 |
N/A |
US$ 12,906 |
|
|
United Technologies Corp |
- |
〃 |
- |
US$ 12,808 |
N/A |
US$ 12,808 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 60 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
NextEra Energy Capital Holdings Inc |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 12,503 |
N/A |
US$ 12,503 |
|
|
American International Group Inc |
- |
〃 |
- |
US$ 12,089 |
N/A |
US$ 12,089 |
|
|
Ryder System Inc |
- |
〃 |
- |
US$ 11,996 |
N/A |
US$ 11,996 |
|
|
Mizuho Financial Group Inc |
- |
〃 |
- |
US$ 11,286 |
N/A |
US$ 11,286 |
|
|
ERAC USA Finance LLC |
- |
〃 |
- |
US$ 11,177 |
N/A |
US$ 11,177 |
|
|
BNP Paribas SA |
- |
〃 |
- |
US$ 10,868 |
N/A |
US$ 10,868 |
|
|
International Business Machines Corp |
- |
〃 |
- |
US$ 10,410 |
N/A |
US$ 10,410 |
|
|
Macquarie Group Ltd |
- |
〃 |
- |
US$ 10,409 |
N/A |
US$ 10,409 |
|
|
Comcast Corp |
- |
〃 |
- |
US$ 10,356 |
N/A |
US$ 10,356 |
|
|
DTE Energy Co |
- |
〃 |
- |
US$ 10,284 |
N/A |
US$ 10,284 |
|
|
Penske Truck Leasing Co Lp/PTL Finance Corp |
- |
〃 |
- |
US$ 10,241 |
N/A |
US$ 10,241 |
|
|
AbbVie Inc |
- |
〃 |
- |
US$ 10,219 |
N/A |
US$ 10,219 |
|
|
SMBC Aviation Capital Finance DAC |
- |
〃 |
- |
US$ 10,194 |
N/A |
US$ 10,194 |
|
|
Nordea Bank Abp |
- |
〃 |
- |
US$ 10,014 |
N/A |
US$ 10,014 |
|
|
Capital One NA |
- |
〃 |
- |
US$ 9,963 |
N/A |
US$ 9,963 |
|
|
Wells Fargo Bank NA |
- |
〃 |
- |
US$ 9,947 |
N/A |
US$ 9,947 |
|
|
American Express Co |
- |
〃 |
- |
US$ 9,873 |
N/A |
US$ 9,873 |
|
|
Daimler Finance North America LLC |
- |
〃 |
- |
US$ 9,855 |
N/A |
US$ 9,855 |
|
|
Air Lease Corp |
- |
〃 |
- |
US$ 9,755 |
N/A |
US$ 9,755 |
|
|
Tyson Foods Inc |
- |
〃 |
- |
US$ 9,665 |
N/A |
US$ 9,665 |
|
|
BPCE SA |
- |
〃 |
- |
US$ 9,494 |
N/A |
US$ 9,494 |
|
|
Cox Communications Inc |
- |
〃 |
- |
US$ 9,361 |
N/A |
US$ 9,361 |
|
|
Celgene Corp |
- |
〃 |
- |
US$ 9,200 |
N/A |
US$ 9,200 |
|
|
Bank of Montreal |
- |
〃 |
- |
US$ 9,181 |
N/A |
US$ 9,181 |
|
|
Hyundai Capital America |
- |
〃 |
- |
US$ 9,141 |
N/A |
US$ 9,141 |
|
|
Lloyds Banking Group PLC |
- |
〃 |
- |
US$ 9,021 |
N/A |
US$ 9,021 |
|
|
New York Life Global Funding |
- |
〃 |
- |
US$ 8,935 |
N/A |
US$ 8,935 |
|
|
Suncorp-Metway Ltd |
- |
〃 |
- |
US$ 8,917 |
N/A |
US$ 8,917 |
|
|
ANZ New Zealand Int'l Ltd/London |
- |
〃 |
- |
US$ 8,848 |
N/A |
US$ 8,848 |
|
|
Reliance Standard Life Global Funding II |
- |
〃 |
- |
US$ 8,830 |
N/A |
US$ 8,830 |
|
|
Midwest Connector Capital Co LLC |
- |
〃 |
- |
US$ 8,427 |
N/A |
US$ 8,427 |
|
|
Royal Bank of Canada |
- |
〃 |
- |
US$ 8,396 |
N/A |
US$ 8,396 |
|
|
Santander UK PLC |
- |
〃 |
- |
US$ 8,234 |
N/A |
US$ 8,234 |
|
|
Metropolitan Life Global Funding I |
- |
〃 |
- |
US$ 8,207 |
N/A |
US$ 8,207 |
|
|
Cooperatieve Rabobank UA/NY |
- |
〃 |
- |
US$ 7,998 |
N/A |
US$ 7,998 |
|
|
Athene Global Funding |
- |
〃 |
- |
US$ 7,983 |
N/A |
US$ 7,983 |
|
|
Tencent Holdings Ltd |
- |
〃 |
- |
US$ 7,635 |
N/A |
US$ 7,635 |
|
|
Anthem Inc |
- |
〃 |
- |
US$ 7,628 |
N/A |
US$ 7,628 |
|
|
QUALCOMM Inc |
- |
〃 |
- |
US$ 7,575 |
N/A |
US$ 7,575 |
|
|
BP Capital Markets America Inc |
- |
〃 |
- |
US$ 7,487 |
N/A |
US$ 7,487 |
|
|
Microsoft Corp |
- |
〃 |
- |
US$ 7,468 |
N/A |
US$ 7,468 |
|
|
NatWest Markets PLC |
- |
〃 |
- |
US$ 7,460 |
N/A |
US$ 7,460 |
|
|
Altria Group Inc |
- |
〃 |
- |
US$ 7,451 |
N/A |
US$ 7,451 |
|
|
Prudential Funding LLC |
- |
〃 |
- |
US$ 7,383 |
N/A |
US$ 7,383 |
|
|
Jackson National Life Global Funding |
- |
〃 |
- |
US$ 7,186 |
N/A |
US$ 7,186 |
|
|
BMW US Capital LLC |
- |
〃 |
- |
US$ 7,155 |
N/A |
US$ 7,155 |
|
|
Scentre Group Trust 1/Scentre Group Trust 2 |
- |
〃 |
- |
US$ 7,076 |
N/A |
US$ 7,076 |
|
|
Kinder Morgan Energy Partners LP |
- |
〃 |
- |
US$ 7,036 |
N/A |
US$ 7,036 |
|
|
Fox Corp |
- |
〃 |
- |
US$ 6,934 |
N/A |
US$ 6,934 |
|
|
Huntington Bancshares Inc/OH |
- |
〃 |
- |
US$ 6,737 |
N/A |
US$ 6,737 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 61 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Anheuser-Busch InBev Worldwide Inc |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 6,699 |
N/A |
US$ 6,699 |
|
|
SunTrust Bank/Atlanta GA |
- |
〃 |
- |
US$ 6,678 |
N/A |
US$ 6,678 |
|
|
ING Groep NV |
- |
〃 |
- |
US$ 6,656 |
N/A |
US$ 6,656 |
|
|
PNC Bank NA |
- |
〃 |
- |
US$ 6,598 |
N/A |
US$ 6,598 |
|
|
Dominion Energy Gas Holdings LLC |
- |
〃 |
- |
US$ 6,403 |
N/A |
US$ 6,403 |
|
|
General Dynamics Corp |
- |
〃 |
- |
US$ 6,297 |
N/A |
US$ 6,297 |
|
|
AIG Global Funding |
- |
〃 |
- |
US$ 6,182 |
N/A |
US$ 6,182 |
|
|
Western Union Co/The |
- |
〃 |
- |
US$ 6,162 |
N/A |
US$ 6,162 |
|
|
Panasonic Corp |
- |
〃 |
- |
US$ 6,086 |
N/A |
US$ 6,086 |
|
|
Bayer US Finance II LLC |
- |
〃 |
- |
US$ 6,069 |
N/A |
US$ 6,069 |
|
|
ABN AMRO Bank NV |
- |
〃 |
- |
US$ 6,069 |
N/A |
US$ 6,069 |
|
|
Analog Devices Inc |
- |
〃 |
- |
US$ 5,961 |
N/A |
US$ 5,961 |
|
|
Regions Financial Corp |
- |
〃 |
- |
US$ 5,946 |
N/A |
US$ 5,946 |
|
|
WPP Finance 2010 |
- |
〃 |
- |
US$ 5,851 |
N/A |
US$ 5,851 |
|
|
Reckitt Benckiser Treasury Services PLC |
- |
〃 |
- |
US$ 5,771 |
N/A |
US$ 5,771 |
|
|
Anheuser-Busch InBev Finance Inc |
- |
〃 |
- |
US$ 5,728 |
N/A |
US$ 5,728 |
|
|
Capital One Financial Corp |
- |
〃 |
- |
US$ 5,662 |
N/A |
US$ 5,662 |
|
|
CNA Financial Corp |
- |
〃 |
- |
US$ 5,367 |
N/A |
US$ 5,367 |
|
|
Barclays Bank PLC |
- |
〃 |
- |
US$ 5,337 |
N/A |
US$ 5,337 |
|
|
Skandinaviska Enskilda Banken AB |
- |
〃 |
- |
US$ 5,310 |
N/A |
US$ 5,310 |
|
|
Enel Finance International NV |
- |
〃 |
- |
US$ 5,295 |
N/A |
US$ 5,295 |
|
|
Sompo International Holdings Ltd |
- |
〃 |
- |
US$ 5,274 |
N/A |
US$ 5,274 |
|
|
Takeda Pharmaceutical Co Ltd |
- |
〃 |
- |
US$ 5,262 |
N/A |
US$ 5,262 |
|
|
Credit Suisse Group Funding Guernsey Ltd |
- |
〃 |
- |
US$ 5,207 |
N/A |
US$ 5,207 |
|
|
Lloyds Bank PLC |
- |
〃 |
- |
US$ 5,177 |
N/A |
US$ 5,177 |
|
|
Exelon Generation Co LLC |
- |
〃 |
- |
US$ 5,103 |
N/A |
US$ 5,103 |
|
|
Keurig Dr Pepper Inc |
- |
〃 |
- |
US$ 5,097 |
N/A |
US$ 5,097 |
|
|
Alabama Power Co |
- |
〃 |
- |
US$ 5,091 |
N/A |
US$ 5,091 |
|
|
Welltower Inc |
- |
〃 |
- |
US$ 5,069 |
N/A |
US$ 5,069 |
|
|
Saudi Arabian Oil Co |
- |
〃 |
- |
US$ 5,059 |
N/A |
US$ 5,059 |
|
|
Thermo Fisher Scientific Inc |
- |
〃 |
- |
US$ 5,037 |
N/A |
US$ 5,037 |
|
|
BB&T Corp |
- |
〃 |
- |
US$ 5,037 |
N/A |
US$ 5,037 |
|
|
BG Energy Capital PLC |
- |
〃 |
- |
US$ 5,027 |
N/A |
US$ 5,027 |
|
|
Fortive Corp |
- |
〃 |
- |
US$ 5,004 |
N/A |
US$ 5,004 |
|
|
Roper Technologies Inc |
- |
〃 |
- |
US$ 4,910 |
N/A |
US$ 4,910 |
|
|
Bank of Nova Scotia/The |
- |
〃 |
- |
US$ 4,909 |
N/A |
US$ 4,909 |
|
|
Shire Acquisitions Investments Ireland DAC |
- |
〃 |
- |
US$ 4,906 |
N/A |
US$ 4,906 |
|
|
Eversource Energy |
- |
〃 |
- |
US$ 4,890 |
N/A |
US$ 4,890 |
|
|
HCP Inc |
- |
〃 |
- |
US$ 4,888 |
N/A |
US$ 4,888 |
|
|
Five Corners Funding Trust |
- |
〃 |
- |
US$ 4,865 |
N/A |
US$ 4,865 |
|
|
NiSource Inc |
- |
〃 |
- |
US$ 4,804 |
N/A |
US$ 4,804 |
|
|
CenterPoint Energy Inc |
- |
〃 |
- |
US$ 4,795 |
N/A |
US$ 4,795 |
|
|
Societe Generale SA |
- |
〃 |
- |
US$ 4,793 |
N/A |
US$ 4,793 |
|
|
Quest Diagnostics Inc |
- |
〃 |
- |
US$ 4,748 |
N/A |
US$ 4,748 |
|
|
Credit Agricole SA/London |
- |
〃 |
- |
US$ 4,728 |
N/A |
US$ 4,728 |
|
|
Standard Chartered PLC |
- |
〃 |
- |
US$ 4,707 |
N/A |
US$ 4,707 |
|
|
Credit Suisse Group AG |
- |
〃 |
- |
US$ 4,694 |
N/A |
US$ 4,694 |
|
|
American Express Credit Corp |
- |
〃 |
- |
US$ 4,679 |
N/A |
US$ 4,679 |
|
|
Simon Property Group LP |
- |
〃 |
- |
US$ 4,631 |
N/A |
US$ 4,631 |
|
|
Cooperatieve Rabobank UA |
- |
〃 |
- |
US$ 4,624 |
N/A |
US$ 4,624 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 62 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Svenska Handelsbanken AB |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 4,529 |
N/A |
US$ 4,529 |
|
|
Southern Co/The |
- |
〃 |
- |
US$ 4,450 |
N/A |
US$ 4,450 |
|
|
Volkswagen Group of America Finance LLC |
- |
〃 |
- |
US$ 4,403 |
N/A |
US$ 4,403 |
|
|
Credit Suisse AG/New York NY |
- |
〃 |
- |
US$ 4,360 |
N/A |
US$ 4,360 |
|
|
McKesson Corp |
- |
〃 |
- |
US$ 4,262 |
N/A |
US$ 4,262 |
|
|
African Development Bank |
- |
〃 |
- |
US$ 4,213 |
N/A |
US$ 4,213 |
|
|
Verisk Analytics Inc |
- |
〃 |
- |
US$ 4,200 |
N/A |
US$ 4,200 |
|
|
Vodafone Group PLC |
- |
〃 |
- |
US$ 4,163 |
N/A |
US$ 4,163 |
|
|
Enterprise Products Operating LLC |
- |
〃 |
- |
US$ 4,091 |
N/A |
US$ 4,091 |
|
|
John Deere Capital Corp |
- |
〃 |
- |
US$ 4,082 |
N/A |
US$ 4,082 |
|
|
Walt Disney Co/The |
- |
〃 |
- |
US$ 4,078 |
N/A |
US$ 4,078 |
|
|
Exelon Corp |
- |
〃 |
- |
US$ 4,075 |
N/A |
US$ 4,075 |
|
|
Intercontinental Exchange Inc |
- |
〃 |
- |
US$ 4,030 |
N/A |
US$ 4,030 |
|
|
Exxon Mobil Corp |
- |
〃 |
- |
US$ 4,026 |
N/A |
US$ 4,026 |
|
|
European Bank for Reconstruction & Development |
- |
〃 |
- |
US$ 3,995 |
N/A |
US$ 3,995 |
|
|
Duke Realty LP |
- |
〃 |
- |
US$ 3,987 |
N/A |
US$ 3,987 |
|
|
3M Co |
- |
〃 |
- |
US$ 3,977 |
N/A |
US$ 3,977 |
|
|
GE Capital International Funding Co Unlimited Co |
- |
〃 |
- |
US$ 3,937 |
N/A |
US$ 3,937 |
|
|
Citizens Bank NA/Providence RI |
- |
〃 |
- |
US$ 3,912 |
N/A |
US$ 3,912 |
|
|
Dow Chemical Co/The |
- |
〃 |
- |
US$ 3,884 |
N/A |
US$ 3,884 |
|
|
Duke Energy Corp |
- |
〃 |
- |
US$ 3,857 |
N/A |
US$ 3,857 |
|
|
DuPont de Nemours Inc |
- |
〃 |
- |
US$ 3,855 |
N/A |
US$ 3,855 |
|
|
Barclays PLC |
- |
〃 |
- |
US$ 3,842 |
N/A |
US$ 3,842 |
|
|
Nationwide Building Society |
- |
〃 |
- |
US$ 3,798 |
N/A |
US$ 3,798 |
|
|
Danske Bank A/S |
- |
〃 |
- |
US$ 3,758 |
N/A |
US$ 3,758 |
|
|
Mondelez International Holdings Netherlands BV |
- |
〃 |
- |
US$ 3,746 |
N/A |
US$ 3,746 |
|
|
Monongahela Power Co |
- |
〃 |
- |
US$ 3,719 |
N/A |
US$ 3,719 |
|
|
Asian Development Bank |
- |
〃 |
- |
US$ 3,631 |
N/A |
US$ 3,631 |
|
|
Reynolds American Inc |
- |
〃 |
- |
US$ 3,627 |
N/A |
US$ 3,627 |
|
|
Amgen Inc |
- |
〃 |
- |
US$ 3,546 |
N/A |
US$ 3,546 |
|
|
Stryker Corp |
- |
〃 |
- |
US$ 3,525 |
N/A |
US$ 3,525 |
|
|
Charles Schwab Corp/The |
- |
〃 |
- |
US$ 3,507 |
N/A |
US$ 3,507 |
|
|
MPLX LP |
- |
〃 |
- |
US$ 3,470 |
N/A |
US$ 3,470 |
|
|
Marriott International Inc/MD |
- |
〃 |
- |
US$ 3,435 |
N/A |
US$ 3,435 |
|
|
Canadian Imperial Bank of Commerce |
- |
〃 |
- |
US$ 3,429 |
N/A |
US$ 3,429 |
|
|
Kroger Co/The |
- |
〃 |
- |
US$ 3,424 |
N/A |
US$ 3,424 |
|
|
Aviation Capital Group LLC |
- |
〃 |
- |
US$ 3,389 |
N/A |
US$ 3,389 |
|
|
KeyBank NA/Cleveland OH |
- |
〃 |
- |
US$ 3,313 |
N/A |
US$ 3,313 |
|
|
WEC Energy Group Inc |
- |
〃 |
- |
US$ 3,297 |
N/A |
US$ 3,297 |
|
|
ONE Gas Inc |
- |
〃 |
- |
US$ 3,228 |
N/A |
US$ 3,228 |
|
|
Cardinal Health Inc |
- |
〃 |
- |
US$ 3,194 |
N/A |
US$ 3,194 |
|
|
Xylem Inc/NY |
- |
〃 |
- |
US$ 3,178 |
N/A |
US$ 3,178 |
|
|
Inter-American Development Bank |
- |
〃 |
- |
US$ 3,170 |
N/A |
US$ 3,170 |
|
|
Unum Group |
- |
〃 |
- |
US$ 3,128 |
N/A |
US$ 3,128 |
|
|
People's United Financial Inc |
- |
〃 |
- |
US$ 3,093 |
N/A |
US$ 3,093 |
|
|
Oncor Electric Delivery Co LLC |
- |
〃 |
- |
US$ 3,081 |
N/A |
US$ 3,081 |
|
|
Banque Federative du Credit Mutuel SA |
- |
〃 |
- |
US$ 3,068 |
N/A |
US$ 3,068 |
|
|
BOC Aviation Ltd |
- |
〃 |
- |
US$ 3,066 |
N/A |
US$ 3,066 |
|
|
Zions Bancorp NA |
- |
〃 |
- |
US$ 3,064 |
N/A |
US$ 3,064 |
|
|
Rockwell Collins Inc |
- |
〃 |
- |
US$ 3,034 |
N/A |
US$ 3,034 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 63 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Cigna Holding Co |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 3,027 |
N/A |
US$ 3,027 |
|
|
Macquarie Bank Ltd |
- |
〃 |
- |
US$ 3,021 |
N/A |
US$ 3,021 |
|
|
Alimentation Couche-Tard Inc |
- |
〃 |
- |
US$ 2,980 |
N/A |
US$ 2,980 |
|
|
Nutrien Ltd |
- |
〃 |
- |
US$ 2,934 |
N/A |
US$ 2,934 |
|
|
Canadian Natural Resources Ltd |
- |
〃 |
- |
US$ 2,909 |
N/A |
US$ 2,909 |
|
|
Barrick Gold Corp |
- |
〃 |
- |
US$ 2,852 |
N/A |
US$ 2,852 |
|
|
RELX Capital Inc |
- |
〃 |
- |
US$ 2,847 |
N/A |
US$ 2,847 |
|
|
Westpac Banking Corp |
- |
〃 |
- |
US$ 2,825 |
N/A |
US$ 2,825 |
|
|
Express Scripts Holding Co |
- |
〃 |
- |
US$ 2,809 |
N/A |
US$ 2,809 |
|
|
Textron Inc |
- |
〃 |
- |
US$ 2,800 |
N/A |
US$ 2,800 |
|
|
Shell International Finance BV |
- |
〃 |
- |
US$ 2,799 |
N/A |
US$ 2,799 |
|
|
Ameren Corp |
- |
〃 |
- |
US$ 2,796 |
N/A |
US$ 2,796 |
|
|
Fifth Third Bancorp |
- |
〃 |
- |
US$ 2,792 |
N/A |
US$ 2,792 |
|
|
Compass Bank |
- |
〃 |
- |
US$ 2,791 |
N/A |
US$ 2,791 |
|
|
Ventas Realty LP |
- |
〃 |
- |
US$ 2,772 |
N/A |
US$ 2,772 |
|
|
Dominion Energy Inc |
- |
〃 |
- |
US$ 2,771 |
N/A |
US$ 2,771 |
|
|
McCormick & Co Inc/MD |
- |
〃 |
- |
US$ 2,769 |
N/A |
US$ 2,769 |
|
|
Eastman Chemical Co |
- |
〃 |
- |
US$ 2,740 |
N/A |
US$ 2,740 |
|
|
National Oilwell Varco Inc |
- |
〃 |
- |
US$ 2,727 |
N/A |
US$ 2,727 |
|
|
Northrop Grumman Corp |
- |
〃 |
- |
US$ 2,694 |
N/A |
US$ 2,694 |
|
|
Newcrest Finance Pty Ltd |
- |
〃 |
- |
US$ 2,670 |
N/A |
US$ 2,670 |
|
|
Huntington National Bank/The |
- |
〃 |
- |
US$ 2,666 |
N/A |
US$ 2,666 |
|
|
Xcel Energy Inc |
- |
〃 |
- |
US$ 2,609 |
N/A |
US$ 2,609 |
|
|
General Electric Co |
- |
〃 |
- |
US$ 2,598 |
N/A |
US$ 2,598 |
|
|
Husky Energy Inc |
- |
〃 |
- |
US$ 2,574 |
N/A |
US$ 2,574 |
|
|
AvalonBay Communities Inc |
- |
〃 |
- |
US$ 2,565 |
N/A |
US$ 2,565 |
|
|
LyondellBasell Industries NV |
- |
〃 |
- |
US$ 2,559 |
N/A |
US$ 2,559 |
|
|
GlaxoSmithKline Capital PLC |
- |
〃 |
- |
US$ 2,554 |
N/A |
US$ 2,554 |
|
|
Delta Air Lines 2007-1 Class A Pass Through Trust |
- |
〃 |
- |
US$ 2,549 |
N/A |
US$ 2,549 |
|
|
Entergy Corp |
- |
〃 |
- |
US$ 2,526 |
N/A |
US$ 2,526 |
|
|
Intesa Sanpaolo SpA |
- |
〃 |
- |
US$ 2,453 |
N/A |
US$ 2,453 |
|
|
AutoZone Inc |
- |
〃 |
- |
US$ 2,437 |
N/A |
US$ 2,437 |
|
|
Berkshire Hathaway Energy Co |
- |
〃 |
- |
US$ 2,427 |
N/A |
US$ 2,427 |
|
|
Realty Income Corp |
- |
〃 |
- |
US$ 2,385 |
N/A |
US$ 2,385 |
|
|
Berkshire Hathaway Inc |
- |
〃 |
- |
US$ 2,374 |
N/A |
US$ 2,374 |
|
|
Public Service Enterprise Group Inc |
- |
〃 |
- |
US$ 2,331 |
N/A |
US$ 2,331 |
|
|
UBS AG/London |
- |
〃 |
- |
US$ 2,331 |
N/A |
US$ 2,331 |
|
|
NBCUniversal Media LLC |
- |
〃 |
- |
US$ 2,278 |
N/A |
US$ 2,278 |
|
|
Cintas Corp No 2 |
- |
〃 |
- |
US$ 2,248 |
N/A |
US$ 2,248 |
|
|
PSEG Power LLC |
- |
〃 |
- |
US$ 2,200 |
N/A |
US$ 2,200 |
|
|
American Airlines 2013-2 Class A Pass Through Trust |
- |
〃 |
- |
US$ 2,170 |
N/A |
US$ 2,170 |
|
|
Brookfield Finance Inc |
- |
〃 |
- |
US$ 2,168 |
N/A |
US$ 2,168 |
|
|
WP Carey Inc |
- |
〃 |
- |
US$ 2,136 |
N/A |
US$ 2,136 |
|
|
ASB Bank Ltd |
- |
〃 |
- |
US$ 2,127 |
N/A |
US$ 2,127 |
|
|
Roche Holdings Inc |
- |
〃 |
- |
US$ 2,123 |
N/A |
US$ 2,123 |
|
|
Legg Mason Inc |
- |
〃 |
- |
US$ 2,117 |
N/A |
US$ 2,117 |
|
|
Suncor Energy Inc |
- |
〃 |
- |
US$ 2,110 |
N/A |
US$ 2,110 |
|
|
Ventas Realty LP/Ventas Capital Corp |
- |
〃 |
- |
US$ 2,104 |
N/A |
US$ 2,104 |
|
|
San Diego Gas & Electric Co |
- |
〃 |
- |
US$ 2,099 |
N/A |
US$ 2,099 |
|
|
Woolworths Group Ltd |
- |
〃 |
- |
US$ 2,077 |
N/A |
US$ 2,077 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 64 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
WR Berkley Corp |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 2,058 |
N/A |
US$ 2,058 |
|
|
Baidu Inc |
- |
〃 |
- |
US$ 2,046 |
N/A |
US$ 2,046 |
|
|
AstraZeneca PLC |
- |
〃 |
- |
US$ 2,037 |
N/A |
US$ 2,037 |
|
|
US Bancorp |
- |
〃 |
- |
US$ 2,025 |
N/A |
US$ 2,025 |
|
|
Sempra Energy |
- |
〃 |
- |
US$ 2,025 |
N/A |
US$ 2,025 |
|
|
Pricoa Global Funding I |
- |
〃 |
- |
US$ 2,018 |
N/A |
US$ 2,018 |
|
|
Deutsche Telekom International Finance BV |
- |
〃 |
- |
US$ 2,006 |
N/A |
US$ 2,006 |
|
|
Oracle Corp |
- |
〃 |
- |
US$ 1,999 |
N/A |
US$ 1,999 |
|
|
CK Hutchison International 16 Ltd |
- |
〃 |
- |
US$ 1,979 |
N/A |
US$ 1,979 |
|
|
Avangrid Inc |
- |
〃 |
- |
US$ 1,959 |
N/A |
US$ 1,959 |
|
|
Kinder Morgan Inc/DE |
- |
〃 |
- |
US$ 1,953 |
N/A |
US$ 1,953 |
|
|
CenterPoint Energy Resources Corp |
- |
〃 |
- |
US$ 1,924 |
N/A |
US$ 1,924 |
|
|
UnitedHealth Group Inc |
- |
〃 |
- |
US$ 1,902 |
N/A |
US$ 1,902 |
|
|
BP Capital Markets PLC |
- |
〃 |
- |
US$ 1,902 |
N/A |
US$ 1,902 |
|
|
Aetna Inc |
- |
〃 |
- |
US$ 1,820 |
N/A |
US$ 1,820 |
|
|
Ameriprise Financial Inc |
- |
〃 |
- |
US$ 1,816 |
N/A |
US$ 1,816 |
|
|
Principal Life Global Funding II |
- |
〃 |
- |
US$ 1,810 |
N/A |
US$ 1,810 |
|
|
ORIX Corp |
- |
〃 |
- |
US$ 1,802 |
N/A |
US$ 1,802 |
|
|
WestRock RKT LLC |
- |
〃 |
- |
US$ 1,800 |
N/A |
US$ 1,800 |
|
|
DXC Technology Co |
- |
〃 |
- |
US$ 1,766 |
N/A |
US$ 1,766 |
|
|
General Mills Inc |
- |
〃 |
- |
US$ 1,742 |
N/A |
US$ 1,742 |
|
|
Public Service Co of Oklahoma |
- |
〃 |
- |
US$ 1,742 |
N/A |
US$ 1,742 |
|
|
Marathon Petroleum Corp |
- |
〃 |
- |
US$ 1,725 |
N/A |
US$ 1,725 |
|
|
Wisconsin Public Service Corp |
- |
〃 |
- |
US$ 1,711 |
N/A |
US$ 1,711 |
|
|
Siemens Financieringsmaatschappij NV |
- |
〃 |
- |
US$ 1,669 |
N/A |
US$ 1,669 |
|
|
ITC Holdings Corp |
- |
〃 |
- |
US$ 1,666 |
N/A |
US$ 1,666 |
|
|
Digital Realty Trust LP |
- |
〃 |
- |
US$ 1,666 |
N/A |
US$ 1,666 |
|
|
Spectra Energy Partners LP |
- |
〃 |
- |
US$ 1,663 |
N/A |
US$ 1,663 |
|
|
Toyota Industries Corp |
- |
〃 |
- |
US$ 1,655 |
N/A |
US$ 1,655 |
|
|
Walgreens Boots Alliance Inc |
- |
〃 |
- |
US$ 1,637 |
N/A |
US$ 1,637 |
|
|
Voya Financial Inc |
- |
〃 |
- |
US$ 1,578 |
N/A |
US$ 1,578 |
|
|
Equifax Inc |
- |
〃 |
- |
US$ 1,570 |
N/A |
US$ 1,570 |
|
|
AXA Equitable Holdings Inc |
- |
〃 |
- |
US$ 1,566 |
N/A |
US$ 1,566 |
|
|
Nestle Holdings Inc |
- |
〃 |
- |
US$ 1,557 |
N/A |
US$ 1,557 |
|
|
CK Hutchison International 19 Ltd |
- |
〃 |
- |
US$ 1,544 |
N/A |
US$ 1,544 |
|
|
Public Service Electric & Gas Co |
- |
〃 |
- |
US$ 1,522 |
N/A |
US$ 1,522 |
|
|
NTT Finance Corp |
- |
〃 |
- |
US$ 1,521 |
N/A |
US$ 1,521 |
|
|
Lincoln National Corp |
- |
〃 |
- |
US$ 1,517 |
N/A |
US$ 1,517 |
|
|
Sinopec Group Overseas Development 2015 Ltd |
- |
〃 |
- |
US$ 1,502 |
N/A |
US$ 1,502 |
|
|
Guardian Life Global Funding |
- |
〃 |
- |
US$ 1,499 |
N/A |
US$ 1,499 |
|
|
Trust F/1401 |
- |
〃 |
- |
US$ 1,489 |
N/A |
US$ 1,489 |
|
|
CBS Corp |
- |
〃 |
- |
US$ 1,488 |
N/A |
US$ 1,488 |
|
|
Georgia Power Co |
- |
〃 |
- |
US$ 1,484 |
N/A |
US$ 1,484 |
|
|
Interpublic Group of Cos Inc/The |
- |
〃 |
- |
US$ 1,480 |
N/A |
US$ 1,480 |
|
|
Protective Life Global Funding |
- |
〃 |
- |
US$ 1,461 |
N/A |
US$ 1,461 |
|
|
Philip Morris International Inc |
- |
〃 |
- |
US$ 1,459 |
N/A |
US$ 1,459 |
|
|
Prudential Financial Inc |
- |
〃 |
- |
US$ 1,457 |
N/A |
US$ 1,457 |
|
|
HSBC Bank PLC |
- |
〃 |
- |
US$ 1,445 |
N/A |
US$ 1,445 |
|
|
Westlake Chemical Corp |
- |
〃 |
- |
US$ 1,428 |
N/A |
US$ 1,428 |
|
|
Texas Eastern Transmission LP |
- |
〃 |
- |
US$ 1,415 |
N/A |
US$ 1,415 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 65 -
Held Company Name |
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
|||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Daiwa Securities Group Inc |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 1,407 |
N/A |
US$ 1,407 |
|
|
Baker Hughes a GE Co LLC |
- |
〃 |
- |
US$ 1,396 |
N/A |
US$ 1,396 |
|
|
CNOOC Curtis Funding No 1 Pty Ltd |
- |
〃 |
- |
US$ 1,396 |
N/A |
US$ 1,396 |
|
|
Liberty Property LP |
- |
〃 |
- |
US$ 1,372 |
N/A |
US$ 1,372 |
|
|
Sprint Spectrum Co LLC/Sprint Spectrum Co II LLC/Sprint Spectrum Co III LLC |
- |
〃 |
- |
US$ 1,355 |
N/A |
US$ 1,355 |
|
|
Essex Portfolio LP |
- |
〃 |
- |
US$ 1,342 |
N/A |
US$ 1,342 |
|
|
Bank of New York Mellon Corp/The |
- |
〃 |
- |
US$ 1,335 |
N/A |
US$ 1,335 |
|
|
Ontario Teachers' Cadillac Fairview Properties Trust |
- |
〃 |
- |
US$ 1,330 |
N/A |
US$ 1,330 |
|
|
Entergy Arkansas LLC |
- |
〃 |
- |
US$ 1,311 |
N/A |
US$ 1,311 |
|
|
Aflac Inc |
- |
〃 |
- |
US$ 1,277 |
N/A |
US$ 1,277 |
|
|
American Electric Power Co Inc |
- |
〃 |
- |
US$ 1,272 |
N/A |
US$ 1,272 |
|
|
Discover Bank |
- |
〃 |
- |
US$ 1,238 |
N/A |
US$ 1,238 |
|
|
Consolidated Edison Inc |
- |
〃 |
- |
US$ 1,219 |
N/A |
US$ 1,219 |
|
|
Santander UK Group Holdings PLC |
- |
〃 |
- |
US$ 1,217 |
N/A |
US$ 1,217 |
|
|
KeyCorp |
- |
〃 |
- |
US$ 1,209 |
N/A |
US$ 1,209 |
|
|
UDR Inc |
- |
〃 |
- |
US$ 1,187 |
N/A |
US$ 1,187 |
|
|
Regions Bank/Birmingham AL |
- |
〃 |
- |
US$ 1,177 |
N/A |
US$ 1,177 |
|
|
Magellan Midstream Partners LP |
- |
〃 |
- |
US$ 1,163 |
N/A |
US$ 1,163 |
|
|
Cleveland Electric Illuminating Co/The |
- |
〃 |
- |
US$ 1,145 |
N/A |
US$ 1,145 |
|
|
TransCanada PipeLines Ltd |
- |
〃 |
- |
US$ 1,143 |
N/A |
US$ 1,143 |
|
|
APT Pipelines Ltd |
- |
〃 |
- |
US$ 1,139 |
N/A |
US$ 1,139 |
|
|
National Australia Bank Ltd/New York |
- |
〃 |
- |
US$ 1,136 |
N/A |
US$ 1,136 |
|
|
Manulife Financial Corp |
- |
〃 |
- |
US$ 1,129 |
N/A |
US$ 1,129 |
|
|
Citizens Financial Group Inc |
- |
〃 |
- |
US$ 1,082 |
N/A |
US$ 1,082 |
|
|
Southern California Edison Co |
- |
〃 |
- |
US$ 1,058 |
N/A |
US$ 1,058 |
|
|
Royal Bank of Scotland Group PLC |
- |
〃 |
- |
US$ 1,048 |
N/A |
US$ 1,048 |
|
|
Alexandria Real Estate Equities Inc |
- |
〃 |
- |
US$ 1,047 |
N/A |
US$ 1,047 |
|
|
Glencore Finance Canada Ltd |
- |
〃 |
- |
US$ 1,046 |
N/A |
US$ 1,046 |
|
|
Reinsurance Group of America Inc |
- |
〃 |
- |
US$ 1,045 |
N/A |
US$ 1,045 |
|
|
Baltimore Gas & Electric Co |
- |
〃 |
- |
US$ 1,044 |
N/A |
US$ 1,044 |
|
|
Commonwealth Bank of Australia |
- |
〃 |
- |
US$ 1,042 |
N/A |
US$ 1,042 |
|
|
O'Reilly Automotive Inc |
- |
〃 |
- |
US$ 1,038 |
N/A |
US$ 1,038 |
|
|
Halliburton Co |
- |
〃 |
- |
US$ 1,038 |
N/A |
US$ 1,038 |
|
|
DNB Bank ASA |
- |
〃 |
- |
US$ 1,036 |
N/A |
US$ 1,036 |
|
|
AIA Group Ltd |
- |
〃 |
- |
US$ 1,032 |
N/A |
US$ 1,032 |
|
|
Weyerhaeuser Co |
- |
〃 |
- |
US$ 1,027 |
N/A |
US$ 1,027 |
|
|
EOG Resources Inc |
- |
〃 |
- |
US$ 1,027 |
N/A |
US$ 1,027 |
|
|
Entergy Mississippi LLC |
- |
〃 |
- |
US$ 1,026 |
N/A |
US$ 1,026 |
|
|
Toyota Motor Credit Corp |
- |
〃 |
- |
US$ 1,023 |
N/A |
US$ 1,023 |
|
|
Seven & i Holdings Co Ltd |
- |
〃 |
- |
US$ 1,021 |
N/A |
US$ 1,021 |
|
|
Amazon.com Inc |
- |
〃 |
- |
US$ 1,017 |
N/A |
US$ 1,017 |
|
|
Grupo Bimbo SAB de CV |
- |
〃 |
- |
US$ 1,015 |
N/A |
US$ 1,015 |
|
|
Loews Corp |
- |
〃 |
- |
US$ 1,015 |
N/A |
US$ 1,015 |
|
|
Corp Nacional del Cobre de Chile |
- |
〃 |
- |
US$ 1,013 |
N/A |
US$ 1,013 |
|
|
British Airways 2013-1 Class A Pass Through Trust |
- |
〃 |
- |
US$ 1,011 |
N/A |
US$ 1,011 |
|
|
Commonwealth Edison Co |
- |
〃 |
- |
US$ 1,011 |
N/A |
US$ 1,011 |
|
|
Toyota Motor Finance Netherlands BV |
- |
〃 |
- |
US$ 1,010 |
N/A |
US$ 1,010 |
|
|
Equinor ASA |
- |
〃 |
- |
US$ 1,010 |
N/A |
US$ 1,010 |
|
|
Bunge Ltd Finance Corp |
- |
〃 |
- |
US$ 1,009 |
N/A |
US$ 1,009 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 66 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Kimco Realty Corp |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 1,006 |
N/A |
US$ 1,006 |
|
|
Boeing Co/The |
- |
〃 |
- |
US$ 1,004 |
N/A |
US$ 1,004 |
|
|
American Honda Finance Corp |
- |
〃 |
- |
US$ 1,004 |
N/A |
US$ 1,004 |
|
|
Sysco Corp |
- |
〃 |
- |
US$ 1,004 |
N/A |
US$ 1,004 |
|
|
Lam Research Corp |
- |
〃 |
- |
US$ 1,002 |
N/A |
US$ 1,002 |
|
|
UBS AG/Stamford CT |
- |
〃 |
- |
US$ 1,001 |
N/A |
US$ 1,001 |
|
|
Entergy Texas Inc |
- |
〃 |
- |
US$ 998 |
N/A |
US$ 998 |
|
|
BBVA USA |
- |
〃 |
- |
US$ 994 |
N/A |
US$ 994 |
|
|
State Grid Overseas Investment 2016 Ltd |
- |
〃 |
- |
US$ 994 |
N/A |
US$ 994 |
|
|
Republic Services Inc |
- |
〃 |
- |
US$ 975 |
N/A |
US$ 975 |
|
|
Holcim US Finance Sarl & Cie SCS |
- |
〃 |
- |
US$ 958 |
N/A |
US$ 958 |
|
|
Georgia-Pacific LLC |
- |
〃 |
- |
US$ 931 |
N/A |
US$ 931 |
|
|
Lockheed Martin Corp |
- |
〃 |
- |
US$ 904 |
N/A |
US$ 904 |
|
|
CA Inc |
- |
〃 |
- |
US$ 901 |
N/A |
US$ 901 |
|
|
MassMutual Global Funding II |
- |
〃 |
- |
US$ 901 |
N/A |
US$ 901 |
|
|
Coca-Cola Femsa SAB de CV |
- |
〃 |
- |
US$ 883 |
N/A |
US$ 883 |
|
|
Baker Hughes a GE Co LLC/Baker Hughes Co-Obligor Inc |
- |
〃 |
- |
US$ 874 |
N/A |
US$ 874 |
|
|
CNOOC Finance 2011 Ltd |
- |
〃 |
- |
US$ 869 |
N/A |
US$ 869 |
|
|
Johnson Controls International plc |
- |
〃 |
- |
US$ 864 |
N/A |
US$ 864 |
|
|
Viterra Inc |
- |
〃 |
- |
US$ 848 |
N/A |
US$ 848 |
|
|
Branch Banking & Trust Co |
- |
〃 |
- |
US$ 826 |
N/A |
US$ 826 |
|
|
ONEOK Partners LP |
- |
〃 |
- |
US$ 820 |
N/A |
US$ 820 |
|
|
Sinopec Capital 2013 Ltd |
- |
〃 |
- |
US$ 817 |
N/A |
US$ 817 |
|
|
Church & Dwight Co Inc |
- |
〃 |
- |
US$ 809 |
N/A |
US$ 809 |
|
|
Activision Blizzard Inc |
- |
〃 |
- |
US$ 808 |
N/A |
US$ 808 |
|
|
Columbia Pipeline Group Inc |
- |
〃 |
- |
US$ 804 |
N/A |
US$ 804 |
|
|
Gilead Sciences Inc |
- |
〃 |
- |
US$ 785 |
N/A |
US$ 785 |
|
|
Nationwide Financial Services Inc |
- |
〃 |
- |
US$ 777 |
N/A |
US$ 777 |
|
|
AXIS Specialty Finance LLC |
- |
〃 |
- |
US$ 768 |
N/A |
US$ 768 |
|
|
Continental Airlines 2012-1 Class A Pass Through Trust |
- |
〃 |
- |
US$ 762 |
N/A |
US$ 762 |
|
|
Comerica Bank |
- |
〃 |
- |
US$ 758 |
N/A |
US$ 758 |
|
|
Incitec Pivot Finance LLC |
- |
〃 |
- |
US$ 755 |
N/A |
US$ 755 |
|
|
PayPal Holdings Inc |
- |
〃 |
- |
US$ 752 |
N/A |
US$ 752 |
|
|
Pinnacle West Capital Corp |
- |
〃 |
- |
US$ 749 |
N/A |
US$ 749 |
|
|
BNZ International Funding Ltd/London |
- |
〃 |
- |
US$ 723 |
N/A |
US$ 723 |
|
|
Merck & Co Inc |
- |
〃 |
- |
US$ 712 |
N/A |
US$ 712 |
|
|
Phillips 66 |
- |
〃 |
- |
US$ 705 |
N/A |
US$ 705 |
|
|
BAE Systems Holdings Inc |
- |
〃 |
- |
US$ 703 |
N/A |
US$ 703 |
|
|
Three Gorges Finance I Cayman Islands Ltd |
- |
〃 |
- |
US$ 696 |
N/A |
US$ 696 |
|
|
Marsh & McLennan Cos Inc |
- |
〃 |
- |
US$ 660 |
N/A |
US$ 660 |
|
|
Ohio Power Co |
- |
〃 |
- |
US$ 637 |
N/A |
US$ 637 |
|
|
Fifth Third Bank/Cincinnati OH |
- |
〃 |
- |
US$ 634 |
N/A |
US$ 634 |
|
|
Norfolk Southern Railway Co |
- |
〃 |
- |
US$ 632 |
N/A |
US$ 632 |
|
|
RBC USA Holdco Corp |
- |
〃 |
- |
US$ 618 |
N/A |
US$ 618 |
|
|
OneBeacon US Holdings Inc |
- |
〃 |
- |
US$ 616 |
N/A |
US$ 616 |
|
|
Toledo Edison Co/The |
- |
〃 |
- |
US$ 615 |
N/A |
US$ 615 |
|
|
Aptiv Corp |
- |
〃 |
- |
US$ 610 |
N/A |
US$ 610 |
|
|
BAT International Finance PLC |
- |
〃 |
- |
US$ 602 |
N/A |
US$ 602 |
|
|
Nissan Motor Acceptance Corp |
- |
〃 |
- |
US$ 600 |
N/A |
US$ 600 |
|
|
Continental Airlines 2007-1 Class A Pass Through Trust |
- |
〃 |
- |
US$ 590 |
N/A |
US$ 590 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 67 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Host Hotels & Resorts LP |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 583 |
N/A |
US$ 583 |
|
|
Life Technologies Corp |
- |
〃 |
- |
US$ 579 |
N/A |
US$ 579 |
|
|
Duke Energy Progress LLC |
- |
〃 |
- |
US$ 577 |
N/A |
US$ 577 |
|
|
Swedbank AB |
- |
〃 |
- |
US$ 575 |
N/A |
US$ 575 |
|
|
MUFG Union Bank NA |
- |
〃 |
- |
US$ 564 |
N/A |
US$ 564 |
|
|
ABC Inc |
- |
〃 |
- |
US$ 561 |
N/A |
US$ 561 |
|
|
Ingersoll-Rand Global Holding Co Ltd |
- |
〃 |
- |
US$ 530 |
N/A |
US$ 530 |
|
|
Fulton Financial Corp |
- |
〃 |
- |
US$ 524 |
N/A |
US$ 524 |
|
|
salesforce.com Inc |
- |
〃 |
- |
US$ 522 |
N/A |
US$ 522 |
|
|
Regency Centers Corp |
- |
〃 |
- |
US$ 521 |
N/A |
US$ 521 |
|
|
Nomura Holdings Inc |
- |
〃 |
- |
US$ 509 |
N/A |
US$ 509 |
|
|
Highwoods Realty LP |
- |
〃 |
- |
US$ 506 |
N/A |
US$ 506 |
|
|
Mitsubishi UFJ Lease & Finance Co Ltd |
- |
〃 |
- |
US$ 501 |
N/A |
US$ 501 |
|
|
Hanwha Energy USA Holdings Corp |
- |
〃 |
- |
US$ 501 |
N/A |
US$ 501 |
|
|
International Paper Co |
- |
〃 |
- |
US$ 484 |
N/A |
US$ 484 |
|
|
Diageo Capital PLC |
- |
〃 |
- |
US$ 478 |
N/A |
US$ 478 |
|
|
Duke Energy Carolinas LLC |
- |
〃 |
- |
US$ 465 |
N/A |
US$ 465 |
|
|
United Overseas Bank Ltd |
- |
〃 |
- |
US$ 462 |
N/A |
US$ 462 |
|
|
Union Pacific Corp |
- |
〃 |
- |
US$ 458 |
N/A |
US$ 458 |
|
|
Narragansett Electric Co/The |
- |
〃 |
- |
US$ 454 |
N/A |
US$ 454 |
|
|
Eaton Electric Holdings LLC |
- |
〃 |
- |
US$ 406 |
N/A |
US$ 406 |
|
|
Canadian Pacific Railway Co |
- |
〃 |
- |
US$ 404 |
N/A |
US$ 404 |
|
|
Southern Power Co |
- |
〃 |
- |
US$ 401 |
N/A |
US$ 401 |
|
|
MetLife Inc |
- |
〃 |
- |
US$ 397 |
N/A |
US$ 397 |
|
|
StanCorp Financial Group Inc |
- |
〃 |
- |
US$ 389 |
N/A |
US$ 389 |
|
|
Aon Corp |
- |
〃 |
- |
US$ 376 |
N/A |
US$ 376 |
|
|
Principal Financial Group Inc |
- |
〃 |
- |
US$ 361 |
N/A |
US$ 361 |
|
|
First Niagara Financial Group Inc |
- |
〃 |
- |
US$ 358 |
N/A |
US$ 358 |
|
|
Continental Airlines 2000-1 Class A-1 Pass Through Trust |
- |
〃 |
- |
US$ 317 |
N/A |
US$ 317 |
|
|
Chubb INA Holdings Inc |
- |
〃 |
- |
US$ 308 |
N/A |
US$ 308 |
|
|
CommonSpirit Health |
- |
〃 |
- |
US$ 304 |
N/A |
US$ 304 |
|
|
Eli Lilly & Co |
- |
〃 |
- |
US$ 300 |
N/A |
US$ 300 |
|
|
Schlumberger Finance Canada Ltd |
- |
〃 |
- |
US$ 300 |
N/A |
US$ 300 |
|
|
Manufacturers & Traders Trust Co |
- |
〃 |
- |
US$ 300 |
N/A |
US$ 300 |
|
|
Home Depot Inc/The |
- |
〃 |
- |
US$ 285 |
N/A |
US$ 285 |
|
|
Archer-Daniels-Midland Co |
- |
〃 |
- |
US$ 258 |
N/A |
US$ 258 |
|
|
Bank of America NA |
- |
〃 |
- |
US$ 257 |
N/A |
US$ 257 |
|
|
Aon PLC |
- |
〃 |
- |
US$ 247 |
N/A |
US$ 247 |
|
|
US Airways 2013-1 Class A Pass Through Trust |
- |
〃 |
- |
US$ 221 |
N/A |
US$ 221 |
|
|
Protective Life Corp |
- |
〃 |
- |
US$ 210 |
N/A |
US$ 210 |
|
|
WestRock MWV LLC |
- |
〃 |
- |
US$ 204 |
N/A |
US$ 204 |
|
|
Glencore Funding LLC |
- |
〃 |
- |
US$ 201 |
N/A |
US$ 201 |
|
|
Schneider Electric SE |
- |
〃 |
- |
US$ 164 |
N/A |
US$ 164 |
|
|
Wells Fargo & Co |
- |
Financial assets at amortized cost |
- |
US$ 160,107 |
N/A |
US$ 161,706 |
|
|
JPMorgan Chase & Co. |
- |
〃 |
- |
US$ 84,967 |
N/A |
US$ 86,054 |
|
|
Industrial and Commercial Bank of China |
- |
〃 |
- |
US$ 9,996 |
N/A |
US$ 10,019 |
|
|
|
|
|
|
|
|
|
|
|
Government bond |
|
|
|
|
|
|
|
|
United States Treasury Note/Bond |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 486,977 |
N/A |
US$ 486,977 |
|
|
Abu Dhabi Government International Bond |
- |
〃 |
- |
US$ 3,498 |
N/A |
US$ 3,498 |
|
|
Qatar Government International Bond |
- |
〃 |
- |
US$ 1,375 |
N/A |
US$ 1,375 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 68 -
Held Company Name |
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
|||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Agency mortgage-backed securities |
|
|
|
|
|
|
|
|
Freddie Mac Multifamily Structured Pass Through Certificates |
- |
Financial assets at fair value through Profit or Loss |
- |
US$ 1,471 |
N/A |
US$ 1,471 |
|
|
Agency bonds/Agency mortgage-backed securities |
|
|
|
|
|
|
|
|
Fannie Mae Pool |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 720,888 |
N/A |
US$ 720,888 |
|
|
Fannie Mae REMICS |
- |
〃 |
- |
US$ 186,907 |
N/A |
US$ 186,907 |
|
|
Freddie Mac Gold Pool |
- |
〃 |
- |
US$ 174,065 |
N/A |
US$ 174,065 |
|
|
Ginnie Mae II Pool |
- |
〃 |
- |
US$ 157,158 |
N/A |
US$ 157,158 |
|
|
Freddie Mac REMICS |
- |
〃 |
- |
US$ 155,669 |
N/A |
US$ 155,669 |
|
|
Freddie Mac Pool |
- |
〃 |
- |
US$ 129,104 |
N/A |
US$ 129,104 |
|
|
Fannie Mae or Freddie Mac |
- |
〃 |
- |
US$ 64,472 |
N/A |
US$ 64,472 |
|
|
Government National Mortgage Association |
- |
〃 |
- |
US$ 52,963 |
N/A |
US$ 52,963 |
|
|
Ginnie Mae |
- |
〃 |
- |
US$ 28,005 |
N/A |
US$ 28,005 |
|
|
Fannie Mae-Aces |
- |
〃 |
- |
US$ 18,124 |
N/A |
US$ 18,124 |
|
|
Freddie Mac Strips |
- |
〃 |
- |
US$ 3,231 |
N/A |
US$ 3,231 |
|
|
Freddie Mac Multifamily Structured Pass Through Certificates |
- |
〃 |
- |
US$ 2,335 |
N/A |
US$ 2,335 |
|
|
Korea Hydro & Nuclear Power Co Ltd |
- |
〃 |
- |
US$ 1,980 |
N/A |
US$ 1,980 |
|
|
Ginnie Mae I Pool |
- |
〃 |
- |
US$ 1,139 |
N/A |
US$ 1,139 |
|
|
FHLMC-GNMA |
- |
〃 |
- |
US$ 1,105 |
N/A |
US$ 1,105 |
|
|
NCUA Guaranteed Notes Trust 2010-R2 |
- |
〃 |
- |
US$ 731 |
N/A |
US$ 731 |
|
|
FRESB 2019-SB61 Mortgage Trust |
- |
〃 |
- |
US$ 677 |
N/A |
US$ 677 |
|
|
Freddie Mac Non Gold Pool |
- |
〃 |
- |
US$ 588 |
N/A |
US$ 588 |
|
|
FRESB 2019-SB60 Mortgage Trust |
- |
〃 |
- |
US$ 423 |
N/A |
US$ 423 |
|
|
NCUA Guaranteed Notes Trust 2010-R1 |
- |
〃 |
- |
US$ 248 |
N/A |
US$ 248 |
|
|
Fannie Mae Benchmark REMIC |
- |
〃 |
- |
US$ 120 |
N/A |
US$ 120 |
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities |
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 10,619 |
N/A |
US$ 10,619 |
|
|
CGDBB Commercial Mortgage Trust 2017-BIOC |
- |
〃 |
- |
US$ 7,500 |
N/A |
US$ 7,500 |
|
|
Citigroup Commercial Mortgage Trust 2014-GC21 |
- |
〃 |
- |
US$ 7,469 |
N/A |
US$ 7,469 |
|
|
Benchmark 2019-B11 Mortgage Trust |
- |
〃 |
- |
US$ 6,299 |
N/A |
US$ 6,299 |
|
|
UBS-Barclays Commercial Mortgage Trust 2012-C2 |
- |
〃 |
- |
US$ 6,179 |
N/A |
US$ 6,179 |
|
|
Wells Fargo Commercial Mortgage Trust 2016-C35 |
- |
〃 |
- |
US$ 6,122 |
N/A |
US$ 6,122 |
|
|
Ford Credit Auto Owner Trust 2016-REV1 |
- |
〃 |
- |
US$ 6,017 |
N/A |
US$ 6,017 |
|
|
CD 2019-CD8 Mortgage Trust |
- |
〃 |
- |
US$ 5,990 |
N/A |
US$ 5,990 |
|
|
Hyundai Auto Receivables Trust 2017-A |
- |
〃 |
- |
US$ 5,527 |
N/A |
US$ 5,527 |
|
|
BX Commercial Mortgage Trust 2018-IND |
- |
〃 |
- |
US$ 5,497 |
N/A |
US$ 5,497 |
|
|
BBCMS 2018-TALL Mortgage Trust |
- |
〃 |
- |
US$ 5,486 |
N/A |
US$ 5,486 |
|
|
American Express Credit Account Master Trust |
- |
〃 |
- |
US$ 5,461 |
N/A |
US$ 5,461 |
|
|
COMM 2015-CCRE24 Mortgage Trust |
- |
〃 |
- |
US$ 5,280 |
N/A |
US$ 5,280 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7 |
- |
〃 |
- |
US$ 5,194 |
N/A |
US$ 5,194 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2016-C30 |
- |
〃 |
- |
US$ 5,074 |
N/A |
US$ 5,074 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10 |
- |
〃 |
- |
US$ 5,052 |
N/A |
US$ 5,052 |
|
|
Ford Credit Auto Owner Trust 2015-REV1 |
- |
〃 |
- |
US$ 4,920 |
N/A |
US$ 4,920 |
|
|
WFRBS Commercial Mortgage Trust 2013-C13 |
- |
〃 |
- |
US$ 4,726 |
N/A |
US$ 4,726 |
|
|
JPMCC Commercial Mortgage Securities Trust 2017-JP7 |
- |
〃 |
- |
US$ 4,205 |
N/A |
US$ 4,205 |
|
|
Hyundai Auto Receivables Trust 2016-A |
- |
〃 |
- |
US$ 4,184 |
N/A |
US$ 4,184 |
|
|
UBS Commercial Mortgage Trust 2018-C10 |
- |
〃 |
- |
US$ 4,181 |
N/A |
US$ 4,181 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29 |
- |
〃 |
- |
US$ 4,171 |
N/A |
US$ 4,171 |
|
|
BANK 2017-BNK6 |
- |
〃 |
- |
US$ 4,143 |
N/A |
US$ 4,143 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 69 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
BANK 2019-BNK17 |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 4,136 |
N/A |
US$ 4,136 |
|
|
BANK 2017-BNK5 |
- |
〃 |
- |
US$ 4,131 |
N/A |
US$ 4,131 |
|
|
Ford Credit Auto Owner Trust 2017-A |
- |
〃 |
- |
US$ 4,005 |
N/A |
US$ 4,005 |
|
|
Enterprise Fleet Financing 2019-2 LLC |
- |
〃 |
- |
US$ 3,770 |
N/A |
US$ 3,770 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6 |
- |
〃 |
- |
US$ 3,442 |
N/A |
US$ 3,442 |
|
|
Ford Credit Auto Lease Trust 2019-B |
- |
〃 |
- |
US$ 3,121 |
N/A |
US$ 3,121 |
|
|
Toyota Auto Receivables 2018-D Owner Trust |
- |
〃 |
- |
US$ 3,085 |
N/A |
US$ 3,085 |
|
|
Nissan Auto Lease Trust 2017-B |
- |
〃 |
- |
US$ 3,071 |
N/A |
US$ 3,071 |
|
|
UBS-Barclays Commercial Mortgage Trust 2012-C3 |
- |
〃 |
- |
US$ 3,065 |
N/A |
US$ 3,065 |
|
|
J.P. Morgan Chase Commercial Mortgage Securities Trust 2016-WIKI |
- |
〃 |
- |
US$ 3,030 |
N/A |
US$ 3,030 |
|
|
COMM 2015-CCRE25 Mortgage Trust |
- |
〃 |
- |
US$ 3,016 |
N/A |
US$ 3,016 |
|
|
GS Mortgage Securities Corp Trust 2018-RIVR |
- |
〃 |
- |
US$ 3,004 |
N/A |
US$ 3,004 |
|
|
GM Financial Consumer Automobile Receivables Trust 2017-2 |
- |
〃 |
- |
US$ 2,995 |
N/A |
US$ 2,995 |
|
|
Nissan Auto Lease Trust 2019-B |
- |
〃 |
- |
US$ 2,889 |
N/A |
US$ 2,889 |
|
|
GS Mortgage Securities Trust 2013-GCJ12 |
- |
〃 |
- |
US$ 2,676 |
N/A |
US$ 2,676 |
|
|
GS Mortgage Securities Trust 2011-GC3 |
- |
〃 |
- |
US$ 2,664 |
N/A |
US$ 2,664 |
|
|
Morgan Stanley Capital I Trust 2018-H3 |
- |
〃 |
- |
US$ 2,663 |
N/A |
US$ 2,663 |
|
|
Chesapeake Funding II LLC |
- |
〃 |
- |
US$ 2,557 |
N/A |
US$ 2,557 |
|
|
ARI Fleet Lease Trust 2019-A |
- |
〃 |
- |
US$ 2,415 |
N/A |
US$ 2,415 |
|
|
Navient Student Loan Trust 2017-5 |
- |
〃 |
- |
US$ 2,211 |
N/A |
US$ 2,211 |
|
|
UBS Commercial Mortgage Trust 2018-C11 |
- |
〃 |
- |
US$ 2,203 |
N/A |
US$ 2,203 |
|
|
BENCHMARK 2018-B4 |
- |
〃 |
- |
US$ 2,145 |
N/A |
US$ 2,145 |
|
|
COMM 2013-CCRE12 Mortgage Trust |
- |
〃 |
- |
US$ 2,132 |
N/A |
US$ 2,132 |
|
|
COMM 2014-CCRE17 Mortgage Trust |
- |
〃 |
- |
US$ 2,123 |
N/A |
US$ 2,123 |
|
|
JP Morgan Chase Commercial Mortgage Securities Trust 2012-LC9 |
- |
〃 |
- |
US$ 2,107 |
N/A |
US$ 2,107 |
|
|
Citigroup Commercial Mortgage Trust 2017-P8 |
- |
〃 |
- |
US$ 2,081 |
N/A |
US$ 2,081 |
|
|
GS Mortgage Securities Trust 2014-GC22 |
- |
〃 |
- |
US$ 2,075 |
N/A |
US$ 2,075 |
|
|
JPMDB Commercial Mortgage Securities Trust 2017-C7 |
- |
〃 |
- |
US$ 2,061 |
N/A |
US$ 2,061 |
|
|
JPMBB Commercial Mortgage Securities Trust 2014-C19 |
- |
〃 |
- |
US$ 2,044 |
N/A |
US$ 2,044 |
|
|
UBS-Barclays Commercial Mortgage Trust 2013-C6 |
- |
〃 |
- |
US$ 2,042 |
N/A |
US$ 2,042 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2016-C31 |
- |
〃 |
- |
US$ 2,035 |
N/A |
US$ 2,035 |
|
|
GM Financial Consumer Automobile 2017-1 |
- |
〃 |
- |
US$ 2,000 |
N/A |
US$ 2,000 |
|
|
Navient Student Loan Trust 2016-5 |
- |
〃 |
- |
US$ 1,999 |
N/A |
US$ 1,999 |
|
|
Mercedes-Benz Auto Lease Trust 2018-B |
- |
〃 |
- |
US$ 1,963 |
N/A |
US$ 1,963 |
|
|
Wells Fargo Commercial Mortgage Trust 2015-LC20 |
- |
〃 |
- |
US$ 1,921 |
N/A |
US$ 1,921 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C8 |
- |
〃 |
- |
US$ 1,837 |
N/A |
US$ 1,837 |
|
|
Ford Credit Auto Lease Trust |
- |
〃 |
- |
US$ 1,817 |
N/A |
US$ 1,817 |
|
|
Citigroup Commercial Mortgage Trust 2015-GC35 |
- |
〃 |
- |
US$ 1,796 |
N/A |
US$ 1,796 |
|
|
WFRBS Commercial Mortgage Trust 2013-C17 |
- |
〃 |
- |
US$ 1,730 |
N/A |
US$ 1,730 |
|
|
UBS-Barclays Commercial Mortgage Trust 2013-C5 |
- |
〃 |
- |
US$ 1,703 |
N/A |
US$ 1,703 |
|
|
Hertz Fleet Lease Funding LP |
- |
〃 |
- |
US$ 1,677 |
N/A |
US$ 1,677 |
|
|
Wells Fargo Commercial Mortgage Trust 2015-NXS1 |
- |
〃 |
- |
US$ 1,654 |
N/A |
US$ 1,654 |
|
|
Morgan Stanley Capital I Trust 2017-H1 |
- |
〃 |
- |
US$ 1,556 |
N/A |
US$ 1,556 |
|
|
JPMBB Commercial Mortgage Securities Trust 2013-C12 |
- |
〃 |
- |
US$ 1,555 |
N/A |
US$ 1,555 |
|
|
Nelnet Student Loan Trust 2018-3 |
- |
〃 |
- |
US$ 1,545 |
N/A |
US$ 1,545 |
|
|
JPMDB Commercial Mortgage Securities Trust 2016-C2 |
- |
〃 |
- |
US$ 1,543 |
N/A |
US$ 1,543 |
|
|
GS Mortgage Securities Trust 2014-GC24 |
- |
〃 |
- |
US$ 1,532 |
N/A |
US$ 1,532 |
|
|
Ford Credit Auto Owner Trust 2019-A |
- |
〃 |
- |
US$ 1,520 |
N/A |
US$ 1,520 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 70 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24 |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 1,506 |
N/A |
US$ 1,506 |
|
|
Ford Credit Auto Lease Trust 2018-A |
- |
〃 |
- |
US$ 1,506 |
N/A |
US$ 1,506 |
|
|
Nelnet Student Loan Trust 2015-2 |
- |
〃 |
- |
US$ 1,471 |
N/A |
US$ 1,471 |
|
|
Citigroup Commercial Mortgage Trust 2015-GC27 |
- |
〃 |
- |
US$ 1,463 |
N/A |
US$ 1,463 |
|
|
Educational Funding of the South Inc |
- |
〃 |
- |
US$ 1,460 |
N/A |
US$ 1,460 |
|
|
GS Mortgage Securities Corp II |
- |
〃 |
- |
US$ 1,420 |
N/A |
US$ 1,420 |
|
|
Wells Fargo Commercial Mortgage Trust 2016-C36 |
- |
〃 |
- |
US$ 1,408 |
N/A |
US$ 1,408 |
|
|
COMM 2013-CCRE6 Mortgage Trust |
- |
〃 |
- |
US$ 1,407 |
N/A |
US$ 1,407 |
|
|
SLM Student Loan Trust 2005-4 |
- |
〃 |
- |
US$ 1,407 |
N/A |
US$ 1,407 |
|
|
Ford Credit Auto Owner Trust 2014-REV2 |
- |
〃 |
- |
US$ 1,400 |
N/A |
US$ 1,400 |
|
|
Toyota Auto Receivables 2016-B Owner Trust |
- |
〃 |
- |
US$ 1,336 |
N/A |
US$ 1,336 |
|
|
Morgan Stanley Capital I Trust 2016-UB11 |
- |
〃 |
- |
US$ 1,307 |
N/A |
US$ 1,307 |
|
|
JPMBB Commercial Mortgage Securities Trust 2016-C1 |
- |
〃 |
- |
US$ 1,298 |
N/A |
US$ 1,298 |
|
|
ECMC Group Student Loan Trust 2018-2 |
- |
〃 |
- |
US$ 1,294 |
N/A |
US$ 1,294 |
|
|
SLM Student Loan Trust 2013-6 |
- |
〃 |
- |
US$ 1,280 |
N/A |
US$ 1,280 |
|
|
ECMC Group Student Loan Trust |
- |
〃 |
- |
US$ 1,266 |
N/A |
US$ 1,266 |
|
|
Hyundai Auto Lease Securitization Trust 2018-A |
- |
〃 |
- |
US$ 1,254 |
N/A |
US$ 1,254 |
|
|
GS Mortgage Securities Trust 2015-GC32 |
- |
〃 |
- |
US$ 1,253 |
N/A |
US$ 1,253 |
|
|
COMM 2015-PC1 Mortgage Trust |
- |
〃 |
- |
US$ 1,252 |
N/A |
US$ 1,252 |
|
|
Nelnet Student Loan Trust 2012-1 |
- |
〃 |
- |
US$ 1,250 |
N/A |
US$ 1,250 |
|
|
Nissan Auto Lease Trust 2019-A |
- |
〃 |
- |
US$ 1,244 |
N/A |
US$ 1,244 |
|
|
Edsouth Indenture No 10 LLC |
- |
〃 |
- |
US$ 1,237 |
N/A |
US$ 1,237 |
|
|
North Carolina State Education Assistance Authority |
- |
〃 |
- |
US$ 1,229 |
N/A |
US$ 1,229 |
|
|
GS Mortgage Securities Trust 2019-GC39 |
- |
〃 |
- |
US$ 1,192 |
N/A |
US$ 1,192 |
|
|
Northstar Education Finance Inc |
- |
〃 |
- |
US$ 1,191 |
N/A |
US$ 1,191 |
|
|
KnowledgeWorks Foundation |
- |
〃 |
- |
US$ 1,186 |
N/A |
US$ 1,186 |
|
|
JPMCC Commercial Mortgage Securities Trust 2017-JP5 |
- |
〃 |
- |
US$ 1,173 |
N/A |
US$ 1,173 |
|
|
COMM 2014-LC17 Mortgage Trust |
- |
〃 |
- |
US$ 1,162 |
N/A |
US$ 1,162 |
|
|
JPMBB Commercial Mortgage Securities Trust 2014-C21 |
- |
〃 |
- |
US$ 1,100 |
N/A |
US$ 1,100 |
|
|
BENCHMARK 2018-B6 Mortgage Trust |
- |
〃 |
- |
US$ 1,072 |
N/A |
US$ 1,072 |
|
|
Ford Credit Auto Owner Trust 2017-C |
- |
〃 |
- |
US$ 1,047 |
N/A |
US$ 1,047 |
|
|
GM Financial Consumer Automobile Receivables Trust 2018-4 |
- |
〃 |
- |
US$ 1,038 |
N/A |
US$ 1,038 |
|
|
COMM 2015-DC1 Mortgage Trust |
- |
〃 |
- |
US$ 1,036 |
N/A |
US$ 1,036 |
|
|
WFRBS Commercial Mortgage Trust 2011-C4 |
- |
〃 |
- |
US$ 1,033 |
N/A |
US$ 1,033 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2014 C19 |
- |
〃 |
- |
US$ 1,030 |
N/A |
US$ 1,030 |
|
|
COMM 2014-CCRE20 Mortgage Trust |
- |
〃 |
- |
US$ 1,030 |
N/A |
US$ 1,030 |
|
|
Toyota Auto Receivables 2018-C Owner Trust |
- |
〃 |
- |
US$ 1,028 |
N/A |
US$ 1,028 |
|
|
Ford Credit Auto Owner Trust 2017-REV1 |
- |
〃 |
- |
US$ 1,013 |
N/A |
US$ 1,013 |
|
|
Citigroup Commercial Mortgage Trust 2013-GC11 |
- |
〃 |
- |
US$ 1,009 |
N/A |
US$ 1,009 |
|
|
Capital One Multi-Asset Execution Trust |
- |
〃 |
- |
US$ 1,006 |
N/A |
US$ 1,006 |
|
|
BBCMS MORTGAGE TRUST 2017-C1 |
- |
〃 |
- |
US$ 1,002 |
N/A |
US$ 1,002 |
|
|
Discover Card Execution Note Trust |
- |
〃 |
- |
US$ 1,000 |
N/A |
US$ 1,000 |
|
|
Navient Student Loan Trust 2017-1 |
- |
〃 |
- |
US$ 958 |
N/A |
US$ 958 |
|
|
Pheaa Student Loan Trust 2018-1 |
- |
〃 |
- |
US$ 877 |
N/A |
US$ 877 |
|
|
280 Park Avenue 2017-280P Mortgage Trust |
- |
〃 |
- |
US$ 830 |
N/A |
US$ 830 |
|
|
Navient Student Loan Trust 2019-1 |
- |
〃 |
- |
US$ 826 |
N/A |
US$ 826 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20 |
- |
〃 |
- |
US$ 826 |
N/A |
US$ 826 |
|
|
GM Financial Automobile Leasing Trust 2019-2 |
- |
〃 |
- |
US$ 825 |
N/A |
US$ 825 |
|
|
Ford Credit Auto Owner Trust 2015-REV2 |
- |
〃 |
- |
US$ 812 |
N/A |
US$ 812 |
|
|
Honda Auto Receivables 2018-3 Owner Trust |
- |
〃 |
- |
US$ 807 |
N/A |
US$ 807 |
|
|
GM Financial Automobile Leasing Trust 2018-1 |
- |
〃 |
- |
US$ 760 |
N/A |
US$ 760 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 71 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
TSMC Global |
Navient Student Loan Trust 2018-1 |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 760 |
N/A |
US$ 760 |
|
|
CFCRE Commercial Mortgage Trust 2011-C1 |
- |
〃 |
- |
US$ 757 |
N/A |
US$ 757 |
|
|
SLM Student Loan Trust 2012-3 |
- |
〃 |
- |
US$ 728 |
N/A |
US$ 728 |
|
|
Wells Fargo Commercial Mortgage Trust 2015-C28 |
- |
〃 |
- |
US$ 712 |
N/A |
US$ 712 |
|
|
SLM Student Loan Trust 2013-1 |
- |
〃 |
- |
US$ 695 |
N/A |
US$ 695 |
|
|
Mercedes-Benz Auto Lease Trust 2018-A |
- |
〃 |
- |
US$ 680 |
N/A |
US$ 680 |
|
|
ECMC Group Student Loan Trust 2016-1 |
- |
〃 |
- |
US$ 631 |
N/A |
US$ 631 |
|
|
Mercedes-Benz Auto Lease Trust 2019-A |
- |
〃 |
- |
US$ 622 |
N/A |
US$ 622 |
|
|
Hyundai Auto Receivables Trust 2018-B |
- |
〃 |
- |
US$ 619 |
N/A |
US$ 619 |
|
|
SLM Student Loan Trust 2013-4 |
- |
〃 |
- |
US$ 609 |
N/A |
US$ 609 |
|
|
JP Morgan Chase Commercial Mortgage Securities Trust 2012-WLDN |
- |
〃 |
- |
US$ 609 |
N/A |
US$ 609 |
|
|
GM Financial Automobile Leasing Trust 2018-3 |
- |
〃 |
- |
US$ 593 |
N/A |
US$ 593 |
|
|
DBGS 2018-BIOD Mortgage Trust |
- |
〃 |
- |
US$ 593 |
N/A |
US$ 593 |
|
|
Hyundai Auto Receivables Trust 2015-C |
- |
〃 |
- |
US$ 550 |
N/A |
US$ 550 |
|
|
DBUBS 2011-LC2 Mortgage Trust |
- |
〃 |
- |
US$ 513 |
N/A |
US$ 513 |
|
|
CD 2016-CD2 Mortgage Trust |
- |
〃 |
- |
US$ 508 |
N/A |
US$ 508 |
|
|
JPMBB Commercial Mortgage Securities Trust 2015-C31 |
- |
〃 |
- |
US$ 487 |
N/A |
US$ 487 |
|
|
Toyota Auto Receivables 2018-B Owner Trust |
- |
〃 |
- |
US$ 461 |
N/A |
US$ 461 |
|
|
Honda Auto Receivables 2019-1 Owner Trust |
- |
〃 |
- |
US$ 449 |
N/A |
US$ 449 |
|
|
Wheels SPV 2 LLC |
- |
〃 |
- |
US$ 445 |
N/A |
US$ 445 |
|
|
COMM 2015-CCRE26 Mortgage Trust |
- |
〃 |
- |
US$ 418 |
N/A |
US$ 418 |
|
|
WFRBS Commercial Mortgage Trust 2014-C25 |
- |
〃 |
- |
US$ 410 |
N/A |
US$ 410 |
|
|
Hyundai Auto Lease Securitization Trust 2017-C |
- |
〃 |
- |
US$ 410 |
N/A |
US$ 410 |
|
|
GM Financial Automobile Leasing Trust 2018-2 |
- |
〃 |
- |
US$ 393 |
N/A |
US$ 393 |
|
|
Ford Credit Auto Lease Trust 2017-B |
- |
〃 |
- |
US$ 385 |
N/A |
US$ 385 |
|
|
Morgan Stanley Capital I Trust 2019-H6 |
- |
〃 |
- |
US$ 377 |
N/A |
US$ 377 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5 |
- |
〃 |
- |
US$ 375 |
N/A |
US$ 375 |
|
|
BANK 2018-BNK14 |
- |
〃 |
- |
US$ 325 |
N/A |
US$ 325 |
|
|
BMW Vehicle Lease Trust 2018-1 |
- |
〃 |
- |
US$ 321 |
N/A |
US$ 321 |
|
|
Navient Student Loan Trust 2017-3 |
- |
〃 |
- |
US$ 308 |
N/A |
US$ 308 |
|
|
Toyota Auto Receivables 2019-A Owner Trust |
- |
〃 |
- |
US$ 279 |
N/A |
US$ 279 |
|
|
Nissan Auto Receivables 2016-B Owner Trust |
- |
〃 |
- |
US$ 252 |
N/A |
US$ 252 |
|
|
Wells Fargo Commercial Mortgage Trust 2015-SG1 |
- |
〃 |
- |
US$ 215 |
N/A |
US$ 215 |
|
|
Ford Credit Auto Owner Trust 2016-A |
- |
〃 |
- |
US$ 203 |
N/A |
US$ 203 |
|
|
BMW Vehicle Lease Trust 2017-2 |
- |
〃 |
- |
US$ 189 |
N/A |
US$ 189 |
|
|
Nelnet Student Loan Trust 2006-2 |
- |
〃 |
- |
US$ 172 |
N/A |
US$ 172 |
|
|
Wells Fargo Commercial Mortgage Trust 2016-LC24 |
- |
〃 |
- |
US$ 85 |
N/A |
US$ 85 |
|
|
WFRBS Commercial Mortgage Trust 2011-C5 |
- |
〃 |
- |
US$ 66 |
N/A |
US$ 66 |
|
|
COMM 2014-CCRE15 Mortgage Trust |
- |
〃 |
- |
US$ 46 |
N/A |
US$ 46 |
|
|
Hyundai Auto Lease Securitization Trust 2017-A |
- |
〃 |
- |
US$ 46 |
N/A |
US$ 46 |
|
|
GS Mortgage Securities Trust 2010-C1 |
- |
〃 |
- |
US$ 43 |
N/A |
US$ 43 |
|
|
GS Mortgage Securities Trust 2010-C2 |
- |
〃 |
- |
US$ 27 |
N/A |
US$ 27 |
|
|
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18 |
- |
〃 |
- |
US$ 21 |
N/A |
US$ 21 |
|
|
|
|
|
|
|
|
|
|
|
Commercial paper |
|
|
|
|
|
|
|
|
Swedbank AB |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 2,980 |
N/A |
US$ 2,980 |
|
|
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
Primavera Capital Fund II L.P. |
- |
Financial assets at fair value through other comprehensive income |
- |
US$ 76,906 |
4 |
US$ 76,906 |
|
|
|
|
|
|
|
|
|
|
(Continued)
- 72 -
Marketable Securities Type and Name |
Relationship with the Company |
Financial Statement Account |
September 30, 2019 |
Note |
||||
Shares/Units (In Thousands) |
Carrying Value (Foreign Currencies in Thousands) |
Percentage of Ownership (%) |
Fair Value (Foreign Currencies in Thousands) |
|||||
|
|
|
|
|
|
|
|
|
VTAF II |
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
Sentelic |
- |
Financial assets at fair value through other comprehensive income |
1,019 |
US$ 1,406 |
4 |
US$ 1,406 |
|
|
Aether Systems, Inc. |
- |
〃 |
1,085 |
US$ 350 |
20 |
US$ 350 |
|
|
5V Technologies, Inc. |
- |
〃 |
364 |
US$ 311 |
2 |
US$ 311 |
|
|
|
|
|
|
|
|
|
|
VTAF III |
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
LiquidLeds Lighting Corp. |
- |
Financial assets at fair value through other comprehensive income |
1,952 |
US$ 800 |
14 |
US$ 800 |
|
|
Neoconix, Inc. |
- |
〃 |
4,147 |
US$ 174 |
- |
US$ 174 |
|
|
|
|
|
|
|
|
|
|
Growth Fund |
Non-publicly traded equity investments |
|
|
|
|
|
|
|
|
Innovium, Inc. |
- |
Financial assets at fair value through other comprehensive income |
230 |
US$ 1,560 |
- |
US$ 1,560 |
|
|
Innovium, Inc. |
- |
〃 |
221 |
US$ 1,501 |
- |
US$ 1,501 |
|
|
CNEX Labs, Inc. |
- |
〃 |
237 |
US$ 775 |
- |
US$ 775 |
|
|
|
|
|
|
|
|
|
|
- 73 -
TABLE 4
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Marketable Securities |
Financial Statement Account |
Counter-party |
Nature of Relationship |
Beginning Balance |
Acquisition |
Disposal |
Ending Balance (Note) |
|||||||
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Carrying Value |
Gain/Loss on Disposal |
Shares/Units (In Thousands) |
Amount |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC |
Commercial paper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taiwan Power Company |
Financial assets at amortized cost |
- |
- |
180 |
$ 1,795,261 |
- |
$ - |
180 |
$ 1,800,000 |
$ 1,800,000 |
$ - |
- |
$ - |
|
CPC Corporation, Taiwan |
〃 |
- |
- |
50 |
498,837 |
- |
- |
50 |
500,000 |
500,000 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Publicly traded stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Semiconductor Manufacturing International Corporation |
Financial assets at fair value through other comprehensive income |
- |
- |
21,105 |
568,150 |
- |
- |
21,105 |
775,282 |
522,975 |
252,307 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global |
Corporate bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
US$ 44,755 |
- |
US$ 17,860 |
- |
US$ 12,184 |
US$ 12,194 |
US$ (10) |
- |
US$ 51,997 |
|
Citigroup Inc |
〃 |
- |
- |
- |
US$ 28,602 |
- |
US$ 24,743 |
- |
US$ 11,648 |
US$ 11,644 |
US$ 4 |
- |
US$ 42,725 |
|
Morgan Stanley |
〃 |
- |
- |
- |
US$ 19,581 |
- |
US$ 16,617 |
- |
US$ 6,545 |
US$ 6,501 |
US$ 44 |
- |
US$ 30,269 |
|
CVS Health Corp |
〃 |
- |
- |
- |
US$ 27,238 |
- |
US$ 22,248 |
- |
US$ 24,155 |
US$ 23,964 |
US$ 191 |
- |
US$ 26,439 |
|
Goldman Sachs Group Inc/The |
〃 |
- |
- |
- |
US$ 17,619 |
- |
US$ 12,137 |
- |
US$ 4,192 |
US$ 4,194 |
US$ (2) |
- |
US$ 26,425 |
|
AT&T Inc |
〃 |
- |
- |
- |
US$ 23,123 |
- |
US$ 12,022 |
- |
US$ 9,816 |
US$ 9,721 |
US$ 95 |
- |
US$ 26,215 |
|
Mitsubishi UFJ Financial Group Inc |
〃 |
- |
- |
- |
US$ 9,547 |
- |
US$ 12,482 |
- |
US$ 652 |
US$ 635 |
US$ 17 |
- |
US$ 21,807 |
|
Sumitomo Mitsui Financial Group Inc |
〃 |
- |
- |
- |
US$ 10,008 |
- |
US$ 16,456 |
- |
US$ 6,295 |
US$ 6,261 |
US$ 34 |
- |
US$ 20,642 |
|
JPMorgan Chase & Co |
〃 |
- |
- |
- |
US$ 16,577 |
- |
US$ 13,423 |
- |
US$ 10,973 |
US$ 10,974 |
US$ (1) |
- |
US$ 19,693 |
|
Apple Inc |
〃 |
- |
- |
- |
US$ 12,585 |
- |
US$ 9,984 |
- |
US$ 3,939 |
US$ 3,997 |
US$ (58) |
- |
US$ 19,078 |
|
JPMorgan Chase & Co |
〃 |
- |
- |
- |
US$ 25,423 |
- |
US$ 5,496 |
- |
US$ 12,233 |
US$ 12,211 |
US$ 22 |
- |
US$ 19,052 |
|
Verizon Communications Inc |
〃 |
- |
- |
- |
US$ 15,927 |
- |
US$ 9,920 |
- |
US$ 9,802 |
US$ 9,795 |
US$ 7 |
- |
US$ 16,701 |
|
Bristol-Myers Squibb Co |
〃 |
- |
- |
- |
- |
- |
US$ 16,399 |
- |
US$ 2,323 |
US$ 2,309 |
US$ 14 |
- |
US$ 14,490 |
|
Fiserv Inc |
〃 |
- |
- |
- |
US$ 1,455 |
- |
US$ 11,828 |
- |
US$ 277 |
US$ 275 |
US$ 2 |
- |
US$ 13,303 |
|
Toronto-Dominion Bank/The |
〃 |
- |
- |
- |
US$ 5,000 |
- |
US$ 12,877 |
- |
US$ 5,347 |
US$ 5,256 |
US$ 91 |
- |
US$ 12,828 |
|
NextEra Energy Capital Holdings Inc |
〃 |
- |
- |
- |
US$ 4,706 |
- |
US$ 14,840 |
- |
US$ 7,259 |
US$ 7,244 |
US$ 15 |
- |
US$ 12,503 |
|
Ryder System Inc |
〃 |
- |
- |
- |
US$ 4,778 |
- |
US$ 11,957 |
- |
US$ 5,102 |
US$ 5,033 |
US$ 69 |
- |
US$ 11,996 |
|
International Business Machines Corp |
〃 |
- |
- |
- |
- |
- |
US$ 13,545 |
- |
US$ 3,265 |
US$ 3,266 |
US$ (1) |
- |
US$ 10,410 |
|
Comcast Corp |
〃 |
- |
- |
- |
US$ 18,894 |
- |
US$ 2,746 |
- |
US$ 12,061 |
US$ 11,603 |
US$ 458 |
- |
US$ 10,356 |
|
American Express Co |
〃 |
- |
- |
- |
US$ 4,547 |
- |
US$ 10,414 |
- |
US$ 5,384 |
US$ 5,337 |
US$ 47 |
- |
US$ 9,873 |
|
Anheuser-Busch InBev Worldwide Inc |
〃 |
- |
- |
- |
- |
- |
US$ 11,039 |
- |
US$ 6,093 |
US$ 5,824 |
US$ 269 |
- |
US$ 5,701 |
|
AXA Equitable Holdings Inc |
〃 |
- |
- |
- |
US$ 5,662 |
- |
US$ 6,524 |
- |
US$ 10,961 |
US$ 10,737 |
US$ 224 |
- |
US$ 1,566 |
|
Ford Motor Credit Co LLC |
〃 |
- |
- |
- |
US$ 10,153 |
- |
- |
- |
US$ 10,252 |
US$ 10,454 |
US$ (202) |
- |
- |
|
European Investment Bank |
〃 |
- |
- |
- |
US$ 3,903 |
- |
US$ 7,177 |
- |
US$ 11,181 |
US$ 11,123 |
US$ 58 |
- |
- |
|
Wells Fargo & Co |
Financial assets at amortized cost |
- |
- |
- |
US$ 149,941 |
- |
US$ 10,187 |
- |
- |
- |
- |
- |
US$ 160,107 |
|
JPMorgan Chase & Co. |
〃 |
- |
- |
- |
US$ 124,948 |
- |
- |
- |
US$ 40,000 |
US$ 40,000 |
- |
- |
US$ 84,967 |
|
Bank of Nova Scotia |
〃 |
- |
- |
- |
US$ 49,976 |
- |
- |
- |
US$ 50,000 |
US$ 50,000 |
- |
- |
- |
|
National Australia Bank |
〃 |
- |
- |
- |
US$ 49,994 |
- |
- |
- |
US$ 50,000 |
US$ 50,000 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 74 -
Company Name |
Marketable Securities |
Financial Statement Account |
Counter-party |
Nature of Relationship |
Beginning Balance |
Acquisition |
Disposal |
Ending Balance (Note) |
||||||
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Carrying Value |
Gain/Loss on Disposal |
Shares/Units (In Thousands) |
Amount |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global |
Goldman Sachs Group, Inc. |
Financial assets at amortized cost |
- |
- |
- |
US$ 99,900 |
- |
$ - |
- |
US$ 100,000 |
US$ 100,000 |
$ - |
- |
$ - |
|
Commonwealth Bank of Australia |
〃 |
- |
- |
- |
US$ 49,994 |
- |
- |
- |
US$ 50,000 |
US$ 50,000 |
- |
- |
- |
|
Westpac Banking Corp. |
〃 |
- |
- |
- |
US$ 99,987 |
- |
- |
- |
US$ 100,000 |
US$ 100,000 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States Treasury Note/Bond |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
US$ 283,314 |
- |
US$1,109,428 |
- |
US$ 917,879 |
US$ 913,232 |
US$ 4,647 |
- |
US$ 484,953 |
|
United States Treasury Floating Rate Note |
〃 |
- |
- |
- |
US$ 68,164 |
- |
- |
- |
US$ 68,186 |
US$ 68,239 |
US$ (53) |
- |
- |
|
United States Cash Management Bill |
〃 |
- |
- |
- |
- |
- |
US$ 50,193 |
- |
US$ 50,290 |
US$ 50,290 |
- |
- |
- |
|
United States Treasury Bill |
〃 |
- |
- |
- |
US$ 2,248 |
- |
US$ 30,581 |
- |
US$ 29,859 |
US$ 29,851 |
US$ 8 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency bonds/Agency mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fannie Mae Pool |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
- |
- |
US$ 34,175 |
- |
US$ 69 |
US$ 72 |
US$ (3) |
- |
US$ 34,044 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 30,438 |
- |
US$ 13 |
US$ 13 |
- |
- |
US$ 30,536 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 29,941 |
- |
- |
- |
- |
- |
US$ 29,954 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 28,050 |
- |
- |
- |
- |
- |
US$ 28,069 |
|
GNMA II Pool MA6155 |
〃 |
- |
- |
- |
- |
- |
US$ 27,922 |
- |
- |
- |
- |
- |
US$ 27,950 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 24,616 |
- |
US$ 592 |
US$ 624 |
US$ (32) |
- |
US$ 24,017 |
|
FNMA TBA 30 Yr 3.5 |
〃 |
- |
- |
- |
- |
- |
US$ 481,224 |
- |
US$ 457,997 |
US$ 457,434 |
US$ 563 |
- |
US$ 23,760 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 23,956 |
- |
US$ 595 |
US$ 621 |
US$ (26) |
- |
US$ 23,507 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 22,063 |
- |
US$ 598 |
US$ 617 |
US$ (19) |
- |
US$ 21,617 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 21,757 |
- |
US$ 1,128 |
US$ 1,144 |
US$ (16) |
- |
US$ 21,033 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 20,910 |
- |
US$ 670 |
US$ 697 |
US$ (27) |
- |
US$ 20,326 |
|
GNMA II TBA 30 Yr 3 |
〃 |
- |
- |
- |
- |
- |
US$ 124,220 |
- |
US$ 104,290 |
US$ 104,091 |
US$ 199 |
- |
US$ 20,170 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,929 |
- |
US$ 712 |
US$ 743 |
US$ (31) |
- |
US$ 19,250 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 18,859 |
- |
US$ 420 |
US$ 450 |
US$ (30) |
- |
US$ 18,575 |
|
FNMA TBA 30 Yr 4 |
〃 |
- |
- |
- |
- |
- |
US$ 165,275 |
- |
US$ 146,925 |
US$ 146,916 |
US$ 9 |
- |
US$ 18,369 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,605 |
- |
US$ 1,353 |
US$ 1,403 |
US$ (50) |
- |
US$ 18,262 |
|
GNMA II Pool MA6090 |
〃 |
- |
- |
- |
- |
- |
US$ 17,117 |
- |
- |
- |
- |
- |
US$ 17,074 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 16,982 |
- |
US$ 162 |
US$ 172 |
US$ (10) |
- |
US$ 16,898 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 17,665 |
- |
US$ 850 |
US$ 891 |
US$ (41) |
- |
US$ 16,842 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 15,995 |
- |
US$ 477 |
US$ 488 |
US$ (11) |
- |
US$ 15,632 |
|
GNMA II Pool MA5264 |
〃 |
- |
- |
- |
- |
- |
US$ 16,635 |
- |
US$ 1,752 |
US$ 1,821 |
US$ (69) |
- |
US$ 14,811 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 14,044 |
- |
US$ 549 |
US$ 562 |
US$ (13) |
- |
US$ 13,606 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 13,778 |
- |
US$ 802 |
US$ 813 |
US$ (11) |
- |
US$ 13,233 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 14,112 |
- |
US$ 848 |
US$ 891 |
US$ (43) |
- |
US$ 13,223 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 12,515 |
- |
US$ 677 |
US$ 689 |
US$ (12) |
- |
US$ 12,007 |
|
FNMA TBA 30 Yr 4.5 |
〃 |
- |
- |
- |
- |
- |
US$ 388,963 |
- |
US$ 377,528 |
US$ 377,218 |
US$ 310 |
- |
US$ 11,766 |
|
Fannie Mae |
〃 |
- |
- |
- |
US$ 1,889 |
- |
US$ 10,203 |
- |
US$ 881 |
US$ 861 |
US$ 20 |
- |
US$ 11,349 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 11,094 |
- |
US$ 650 |
US$ 677 |
US$ (27) |
- |
US$ 10,493 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 10,205 |
- |
US$ 113 |
US$ 116 |
US$ (3) |
- |
US$ 10,072 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 10,296 |
- |
US$ 294 |
US$ 309 |
US$ (15) |
- |
US$ 9,968 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 10,212 |
- |
US$ 503 |
US$ 511 |
US$ (8) |
- |
US$ 9,873 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 10,064 |
- |
US$ 155 |
US$ 157 |
US$ (2) |
- |
US$ 9,834 |
|
GNMA II TBA 30 Yr 3.5 |
〃 |
- |
- |
- |
US$ 1,157 |
- |
US$ 205,008 |
- |
US$ 199,162 |
US$ 198,926 |
US$ 236 |
- |
US$ 7,241 |
|
Fannie Mae-Aces |
〃 |
- |
- |
- |
- |
- |
US$ 11,110 |
- |
US$ 4,174 |
US$ 4,054 |
US$ 120 |
- |
US$ 7,225 |
|
Fannie Mae |
〃 |
- |
- |
- |
US$ 11,146 |
- |
US$ 6,657 |
- |
US$ 11,650 |
US$ 11,622 |
US$ 28 |
- |
US$ 6,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 75 -
Marketable Securities |
Financial Statement Account |
Counter-party |
Nature of Relationship |
Beginning Balance |
Acquisition |
Disposal |
Ending Balance (Note) |
|||||||
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Carrying Value |
Gain/Loss on Disposal |
Shares/Units (In Thousands) |
Amount |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global |
Freddie Mac Gold Pool |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
$ - |
- |
US$ 21,042 |
- |
US$ 16,156 |
US$ 16,073 |
US$ 83 |
- |
US$ 5,008 |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 12,893 |
- |
US$ 9,113 |
US$ 8,898 |
US$ 215 |
- |
US$ 4,091 |
|
FNMA TBA 30 Yr 5 |
〃 |
- |
- |
- |
US$ 24,761 |
- |
US$ 90,915 |
- |
US$ 112,265 |
US$ 112,122 |
US$ 143 |
- |
US$ 3,611 |
|
FNMA TBA 15 Yr 3 |
〃 |
- |
- |
- |
- |
- |
US$ 102,896 |
- |
US$ 99,399 |
US$ 99,326 |
US$ 73 |
- |
US$ 3,576 |
|
Fannie Mae or Freddie Mac |
〃 |
- |
- |
- |
- |
- |
US$ 61,708 |
- |
US$ 58,764 |
US$ 58,670 |
US$ 94 |
- |
US$ 3,024 |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 23,067 |
- |
US$ 20,369 |
US$ 20,148 |
US$ 221 |
- |
US$ 2,976 |
|
Fannie Mae-Aces |
〃 |
- |
- |
- |
- |
- |
US$ 19,910 |
- |
US$ 18,513 |
US$ 17,849 |
US$ 664 |
- |
US$ 2,226 |
|
FNMA Pool BM4493 |
〃 |
- |
- |
- |
US$ 16,915 |
- |
US$ 1,795 |
- |
US$ 17,312 |
US$ 17,177 |
US$ 135 |
- |
US$ 1,679 |
|
Freddie Mac Multifamily Structured Pass Through Certificates |
〃 |
- |
- |
- |
- |
- |
US$ 33,864 |
- |
US$ 33,705 |
US$ 32,603 |
US$ 1,102 |
- |
US$ 1,362 |
|
Government National Mortgage Association |
〃 |
- |
- |
- |
US$ 15,253 |
- |
- |
- |
US$ 15,034 |
US$ 14,777 |
US$ 257 |
- |
US$ 894 |
|
Government National Mortgage Association |
〃 |
- |
- |
- |
US$ 16,485 |
- |
US$ 860 |
- |
US$ 17,175 |
US$ 16,908 |
US$ 267 |
- |
US$ 798 |
|
GNMA II TBA 30 Yr 4.5 |
〃 |
- |
- |
- |
US$ 587 |
- |
US$ 14,690 |
- |
US$ 14,691 |
US$ 14,683 |
US$ 8 |
- |
US$ 594 |
|
Freddie Mac Multifamily Structured Pass Through Certificates |
〃 |
- |
- |
- |
- |
- |
US$ 9,824 |
- |
US$ 10,426 |
US$ 9,819 |
US$ 607 |
- |
- |
|
Government National Mortgage Association |
〃 |
- |
- |
- |
US$ 10,590 |
- |
- |
- |
US$ 10,618 |
US$ 10,692 |
US$ (74) |
- |
- |
|
FED HM LN PC Pool G61553 |
〃 |
- |
- |
- |
US$ 15,045 |
- |
- |
- |
US$ 15,177 |
US$ 15,109 |
US$ 68 |
- |
- |
|
FNMA Pool CA2169 |
〃 |
- |
- |
- |
US$ 13,859 |
- |
- |
- |
US$ 13,966 |
US$ 13,892 |
US$ 74 |
- |
- |
|
FED HM LN PC Pool G61592 |
〃 |
- |
- |
- |
US$ 21,507 |
- |
- |
- |
US$ 21,673 |
US$ 21,448 |
US$ 225 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 23,009 |
- |
US$ 23,035 |
US$ 23,003 |
US$ 32 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
US$ 9,743 |
- |
- |
- |
US$ 9,881 |
US$ 10,148 |
US$ (267) |
- |
- |
|
Government National Mortgage Association |
〃 |
- |
- |
- |
US$ 12,897 |
- |
- |
- |
US$ 13,248 |
US$ 13,269 |
US$ (21) |
- |
- |
|
Fannie Mae-Aces |
〃 |
- |
- |
- |
- |
- |
US$ 10,575 |
- |
US$ 11,022 |
US$ 10,560 |
US$ 462 |
- |
- |
|
FED HM LN PC Pool G61654 |
〃 |
- |
- |
- |
US$ 18,555 |
- |
- |
- |
US$ 18,883 |
US$ 18,606 |
US$ 277 |
- |
- |
|
FED HM LN PC Pool G61603 |
〃 |
- |
- |
- |
US$ 25,515 |
- |
- |
- |
US$ 25,966 |
US$ 25,627 |
US$ 339 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,788 |
- |
US$ 19,817 |
US$ 19,783 |
US$ 34 |
- |
- |
|
GNMA II Pool MA5468 |
〃 |
- |
- |
- |
US$ 17,490 |
- |
- |
- |
US$ 17,460 |
US$ 17,591 |
US$ (131) |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 31,117 |
- |
US$ 30,925 |
US$ 31,115 |
US$ (190) |
- |
- |
|
FNMA Pool CA2352 |
〃 |
- |
- |
- |
US$ 25,130 |
- |
- |
- |
US$ 25,161 |
US$ 25,104 |
US$ 57 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 14,988 |
- |
US$ 15,037 |
US$ 14,987 |
US$ 50 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,999 |
- |
US$ 20,332 |
US$ 19,982 |
US$ 350 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,951 |
- |
US$ 20,336 |
US$ 19,929 |
US$ 407 |
- |
- |
|
Freddie Mac Pool |
〃 |
- |
- |
- |
- |
- |
US$ 19,993 |
- |
US$ 20,102 |
US$ 19,993 |
US$ 109 |
- |
- |
|
GNMA II TBA 30 Yr 4 |
〃 |
- |
- |
- |
US$ 2,129 |
- |
US$ 61,671 |
- |
US$ 63,840 |
US$ 63,791 |
US$ 49 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 14,610 |
- |
US$ 14,728 |
US$ 14,594 |
US$ 134 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 15,441 |
- |
US$ 15,631 |
US$ 15,460 |
US$ 171 |
- |
- |
|
Freddie Mac Gold Pool |
〃 |
- |
- |
- |
- |
- |
US$ 16,687 |
- |
US$ 16,832 |
US$ 16,668 |
US$ 164 |
- |
- |
|
FNMA TBA 30 Yr 3 |
〃 |
- |
- |
- |
- |
- |
US$ 196,491 |
- |
US$ 196,822 |
US$ 196,491 |
US$ 331 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 15,430 |
- |
US$ 15,615 |
US$ 15,461 |
US$ 154 |
- |
- |
|
FHLMC TBA 30 Yr 3 |
〃 |
- |
- |
- |
US$ 15 |
- |
US$ 51,813 |
- |
US$ 52,028 |
US$ 51,828 |
US$ 200 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 61,366 |
- |
US$ 61,131 |
US$ 61,332 |
US$ (201) |
- |
- |
|
GNMA II TBA 30 Yr 5 |
〃 |
- |
- |
- |
US$ 12,209 |
- |
US$ 38,655 |
- |
US$ 50,926 |
US$ 50,878 |
US$ 48 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 24,951 |
- |
US$ 25,391 |
US$ 24,902 |
US$ 489 |
- |
- |
|
Freddie Mac Multifamily Structured Pass Through Certificates |
〃 |
- |
- |
- |
US$ 513 |
- |
US$ 10,877 |
- |
US$ 11,560 |
US$ 11,380 |
US$ 180 |
- |
- |
|
FNMA Pool BM4495 |
〃 |
- |
- |
- |
US$ 27,324 |
- |
- |
- |
US$ 28,065 |
US$ 27,635 |
US$ 430 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 76 -
Marketable Securities |
Financial Statement Account |
Counter-party |
Nature of Relationship |
Beginning Balance |
Acquisition |
Disposal |
Ending Balance (Note) |
|||||||
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Shares/Units (In Thousands) |
Amount |
Carrying Value |
Gain/Loss on Disposal |
Shares/Units (In Thousands) |
Amount |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Global |
FNMA PooL BM4681 |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
US$ 31,784 |
- |
$ - |
- |
US$ 32,259 |
US$ 31,819 |
US$ 440 |
- |
$ - |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 26,015 |
- |
US$ 26,560 |
US$ 26,015 |
US$ 545 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 11,390 |
- |
US$ 11,544 |
US$ 11,369 |
US$ 175 |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
US$ 40,059 |
- |
- |
- |
US$ 41,005 |
US$ 41,421 |
US$ (416) |
- |
- |
|
FNMA Pool BM1948 |
〃 |
- |
- |
- |
US$ 26,046 |
- |
- |
- |
US$ 26,835 |
US$ 26,938 |
US$ (103) |
- |
- |
|
Fannie Mae Pool |
〃 |
- |
- |
- |
- |
- |
US$ 21,932 |
- |
US$ 22,196 |
US$ 21,977 |
US$ 219 |
- |
- |
|
FNMA TBA 15 Yr 3.5 |
〃 |
- |
- |
- |
US$ 2,020 |
- |
US$ 40,004 |
- |
US$ 42,091 |
US$ 42,014 |
US$ 77 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citibank Credit Card Issuance Trust |
Financial assets at fair value through other comprehensive income |
- |
- |
- |
US$ 68,487 |
- |
US$ 2,693 |
- |
US$ 60,899 |
US$ 60,848 |
US$ 51 |
- |
US$ 10,619 |
|
American Express Credit Account Master Trust |
〃 |
- |
- |
- |
US$ 27,285 |
- |
US$ 1,300 |
- |
US$ 26,097 |
US$ 26,128 |
US$ (31) |
- |
US$ 2,624 |
|
Discover Card Execution Note Trust |
〃 |
- |
- |
- |
US$ 37,495 |
- |
US$ 868 |
- |
US$ 37,509 |
US$ 37,528 |
US$ (19) |
- |
US$ 1,000 |
|
Ford Credit Floorplan Master Owner Trust A |
〃 |
- |
- |
- |
US$ 26,702 |
- |
- |
- |
US$ 26,696 |
US$ 26,748 |
US$ (52) |
- |
- |
|
Chase Issuance Trust |
〃 |
- |
- |
- |
US$ 43,604 |
- |
- |
- |
US$ 43,763 |
US$ 43,697 |
US$ 66 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
The ending balance includes the amortization of premium/discount on bonds investments, share of profits/losses of investees and other related adjustment. |
- 77 -
TABLE 5
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name |
Types of Property |
Transaction Date |
Transaction Amount (Foreign Currencies in Thousands) |
Payment Term |
Counter-party |
Nature of Relationships |
Prior Transaction of Related Counter-party |
Price Reference |
Purpose of Acquisition |
Other Terms |
|||
Owner |
Relationships |
Transfer Date |
Amount |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC |
Fab |
September 11, 2018 to August 12, 2019 |
$1,008,210 |
Monthly settlement by the construction progress and acceptance |
KEDGE Construction Co., Ltd. |
- |
N/A |
N/A |
N/A |
N/A |
Price comparison and price negotiation |
Manufacturing purpose |
None |
|
Fab |
March 25, 2019 |
888,800 |
Monthly settlement by the construction progress and acceptance |
PAN ASIA Corp. |
- |
N/A |
N/A |
N/A |
N/A |
Price comparison and price negotiation |
Manufacturing purpose |
None |
- 78 -
TABLE 6
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name |
Related Party |
Nature of Relationships |
Transaction Details |
Abnormal Transaction |
Notes/Accounts Payable or Receivable |
Note |
|||||
Purchases/ Sales |
Amount (Foreign Currencies in Thousands) |
% to Total |
Payment Terms |
Unit Price |
Payment Terms |
Ending Balance (Foreign Currencies in Thousands) |
% to Total |
||||
|
|
|
|
|
|
|
|
|
|
|
|
TSMC |
TSMC North America |
Subsidiary |
Sales |
$ 450,970,303 |
58 |
Net 30 days from invoice date (Note) |
- |
(Note) |
$ 83,416,197 |
61 |
|
|
GUC |
Associate |
Sales |
2,720,276 |
- |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
684,173 |
- |
|
|
TSMC Nanjing |
Subsidiary |
Purchases |
12,037,976 |
18 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
(1,460,517) |
4 |
|
|
TSMC China |
Subsidiary |
Purchases |
11,789,936 |
17 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
(1,553,384) |
4 |
|
|
WaferTech |
Indirect subsidiary |
Purchases |
4,990,242 |
7 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
(1,082,070) |
3 |
|
|
VIS |
Associate |
Purchases |
2,416,794 |
4 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
(212,513) |
1 |
|
|
SSMC |
Associate |
Purchases |
2,128,561 |
3 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
(511,252) |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC North America |
GUC |
Associate of TSMC |
Sales |
1,077,699 (US$ 34,759) |
- |
Net 30 days from invoice date |
- |
- |
213,716 (US$ 6,888) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Tech |
Xintec |
Associate of TSMC |
Sales |
375,526 |
17 |
Net 30 days from the end of the month of when invoice is issued |
- |
- |
282,891 |
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
The tenor is 30 days from TSMC’s invoice date or determined by the payment terms granted to its clients by TSMC North America. |
- 79 -
TABLE 7
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Related Party |
Nature of Relationships |
Ending Balance (Foreign Currencies in Thousands) |
Turnover Days (Note 1) |
Overdue |
Amounts Received in Subsequent Period |
Allowance for Bad Debts |
||
Amount |
Action Taken |
|||||||
|
|
|
|
|
|
|
|
|
TSMC |
TSMC North America |
Subsidiary |
$ 84,267,299 |
51 |
$ 4,101,187 |
- |
$ 39,870,487 |
$ - |
|
GUC |
Associate |
684,316 |
53 |
|
- |
- |
- |
|
|
|
|
|
|
|
|
|
TSMC China |
TSMC Nanjing |
The same parent company |
24,590,546 |
Note 2 |
- |
- |
- |
- |
|
|
|
(RMB 5,642,622) |
|
|
|
|
|
|
TSMC |
Parent company |
1,553,384 |
34 |
- |
- |
- |
- |
|
|
|
(RMB 356,442) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing |
TSMC |
Parent company |
1,466,986 |
22 |
- |
- |
- |
- |
|
|
|
(RMB 336,617) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WaferTech |
TSMC |
The ultimate parent of the Company |
1,082,070 (US$ 34,875) |
60 |
598,563 (US$ 19,292) |
- |
598,563 (US$ 19,292) |
- |
|
TSMC Development |
Parent company |
207,414 |
Note 2 |
|
|
|
|
|
|
|
(US$ 6,685) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VisEra Tech |
Xintec |
Associate of TSMC |
282,891 |
47 |
90,749 |
- |
90,749 |
- |
|
|
|
|
|
|
|
|
|
TSMC Technology |
TSMC |
The ultimate parent of the Company |
264,093 (US$ 8,512) |
Note 2 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
TSMC North America |
GUC |
Associate of TSMC |
214,202 (US$ 6,904 ) |
41 |
14,017 (US$ 452) |
- |
49,368 (US$ 1,591) |
- |
|
TSMC |
Parent company |
117,596 |
Note 2 |
- |
- |
- |
- |
|
|
|
(US$ 3,790) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Japan |
TSMC |
Parent company |
105,073 |
Note 2 |
- |
- |
- |
- |
|
|
|
(JPY 365,346) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 2: |
The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days. |
- 80 -
TABLE 8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars)
Company Name |
Counter Party |
Nature of Relationship (Note 1) |
Intercompany Transactions |
||||
Financial Statements Item |
Amount |
Terms (Note 2) |
Percentage of Consolidated Net Revenue or Total Assets |
||||
|
|
|
|
|
|
|
|
0 |
TSMC |
TSMC North America |
1 |
Net revenue from sale of goods |
$ 450,970,303 |
- |
60% |
|
|
|
|
Receivables from related parties |
83,416,197 |
- |
4% |
|
|
|
|
Other receivables from related parties |
851,102 |
- |
- |
|
|
|
|
Payables to related parties |
117,596 |
- |
- |
|
|
TSMC Japan |
1 |
Marketing expenses - commission |
169,798 |
- |
- |
|
|
|
|
Payables to related parties |
105,073 |
- |
- |
|
|
TSMC Europe |
1 |
Marketing expenses - commission |
331,636 |
- |
- |
|
|
TSMC China |
1 |
Purchases |
11,789,936 |
- |
2% |
|
|
|
|
Marketing expenses - commission |
121,540 |
- |
- |
|
|
|
|
Payables to related parties |
1,553,384 |
- |
- |
|
|
TSMC Nanjing |
1 |
Purchases |
12,037,976 |
- |
2% |
|
|
|
|
Proceeds from disposal of property, plant and equipment |
983,925 |
- |
- |
|
|
|
|
Payables to related parties |
1,460,517 |
- |
- |
|
|
TSMC Canada |
1 |
Research and development expenses |
234,121 |
- |
- |
|
|
TSMC Technology |
1 |
Research and development expenses |
1,866,660 |
- |
- |
|
|
|
|
Payables to related parties |
264,093 |
- |
- |
|
|
WaferTech |
1 |
Purchases |
4,990,242 |
- |
1% |
|
|
|
|
Payables to related parties |
1,082,070 |
- |
- |
1 |
TSMC China |
TSMC Nanjing |
3 |
Other receivables from related parties |
24,590,546 |
- |
1% |
2 |
TSMC Development |
WaferTech |
3 |
Other payables to related parties |
207,414 |
- |
- |
|
|
|
|
|
|
|
|
No. 3 represents the transactions between subsidiaries. |
Note 2: |
The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual agreements. |
- 81 -
TABLE 9
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investee Company |
Location |
Main Businesses and Products |
Original Investment Amount |
Balance as of September 30, 2019 |
Net Income (Losses) of the Investee |
Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands) |
Note |
||||
September 30, 2019 (Foreign Currencies in Thousands) |
December 31, 2018 (Foreign Currencies in Thousands) |
Shares (In Thousands) |
Percentage of Ownership |
Carrying Value (Foreign Currencies in Thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
TSMC |
TSMC Global |
Tortola, British Virgin Islands |
Investment activities |
$355,162,309 (Note 3) |
$355,162,309 |
11 |
100 |
$408,871,808 |
$ 8,953,014 |
$8,953,014 |
Subsidiary |
|
TSMC Partners |
Tortola, British Virgin Islands |
Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities |
31,456,130 |
31,456,130 |
988,268 |
100 |
54,501,106 |
1,581,494 |
1,581,494 |
Subsidiary |
|
VIS |
Hsin-Chu, Taiwan |
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks |
10,180,677 |
10,180,677 |
464,223 |
28 |
8,717,119 |
4,363,167 |
1,231,979 |
Associate |
|
SSMC |
Singapore |
Manufacturing and selling of integrated circuits and other semiconductor devices |
5,120,028 |
5,120,028 |
314 |
39 |
6,446,678 |
1,596,816 |
619,405 |
Associate |
|
TSMC North America |
San Jose, California, U.S.A |
Selling and marketing of integrated circuits and other semiconductor devices |
333,718 |
333,718 |
11,000 |
100 |
4,601,081 |
291,367 |
291,367 |
Subsidiary |
|
VisEra Tech |
Hsin-Chu, Taiwan |
Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter |
5,005,171 |
5,005,171 |
253,120 |
87 |
4,271,967 |
283,293 |
246,278 |
Subsidiary |
|
Xintec |
Taoyuan, Taiwan |
Wafer level chip size packaging and wafer level post passivation interconnection service |
1,988,317 |
1,988,317 |
111,282 |
41 |
1,762,753 |
(14,242) |
(5,321) |
Associate |
|
GUC |
Hsin-Chu, Taiwan |
Researching, developing, manufacturing, testing and marketing of integrated circuits |
386,568 |
386,568 |
46,688 |
35 |
1,232,543 |
358,208 |
124,800 |
Associate |
|
TSMC Europe |
Amsterdam, the Netherlands |
Customer service and supporting activities |
15,749 |
15,749 |
- |
100 |
458,645 |
28,700 |
28,700 |
Subsidiary |
|
VTAF III |
Cayman Islands |
Investing in new start-up technology companies |
1,309,772 |
1,308,244 |
- |
98 |
225,817 |
2,900 |
2,842 |
Subsidiary |
|
TSMC Japan |
Yokohama, Japan |
Customer service and supporting activities |
83,760 |
83,760 |
6 |
100 |
150,673 |
4,790 |
4,790 |
Subsidiary |
|
VTAF II |
Cayman Islands |
Investing in new start-up technology companies |
260,300 |
278,800 |
- |
98 |
90,660 |
(2,292) |
(2,246) |
Subsidiary |
|
TSMC Korea |
Seoul, Korea |
Customer service and supporting activities |
13,656 |
13,656 |
80 |
100 |
40,532 |
2,157 |
2,157 |
Subsidiary |
|
TSMC Solar Europe GmbH |
Hamburg, Germany |
Selling of solar related products and providing customer service |
- |
25,266 |
- |
- |
- |
- |
- |
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Partners |
TSMC Development |
Delaware, U.S.A |
Investing in companies involved in the manufacturing related business in the semiconductor industry |
18,210,950 (US$ 586,939) |
18,210,950 (US$ 586,939) |
- |
100 |
30,426,559 (US$ 980,648) |
913,834 (US$ 29,419) |
Note 2 |
Subsidiary |
|
TSMC Technology |
Delaware, U.S.A |
Engineering support activities |
443,128 |
443,128 |
- |
100 |
662,013 |
69,423 |
Note 2 |
Subsidiary |
|
|
|
|
(US$ 14,282) |
(US$ 14,282) |
|
|
(US$ 21,337) |
(US$ 2,241) |
|
|
|
TSMC Canada |
Ontario, Canada |
Engineering support activities |
71,362 |
71,362 |
2,300 |
100 |
234,653 |
21,845 |
Note 2 |
Subsidiary |
|
|
|
|
(US$ 2,300) |
(US$ 2,300) |
|
|
(US$ 7,563) |
(US$ 704) |
|
|
|
ISDF |
Cayman Islands |
Investing in new start-up technology companies |
- |
14,744 |
583 |
97 |
- |
10 |
Note 2 |
Subsidiary |
|
|
|
|
|
(US$ 475) |
|
|
|
(US$ -) |
|
|
|
ISDF II |
Cayman Islands |
Investing in new start-up technology companies |
- |
- |
9,299 |
97 |
- |
- |
Note 2 |
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
VTAF III |
Growth Fund |
Cayman Islands |
Investing in new start-up technology companies |
68,376 |
66,825 |
- |
100 |
120,049 |
(966) |
Note 2 |
Subsidiary |
|
|
|
|
(US$ 2,204) |
(US$ 2,154) |
|
|
(US$ 3,869) |
(US$ (31)) |
|
|
|
Mutual-Pak |
New Taipei, Taiwan |
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID |
49,437 (US$ 1,593) |
49,437 (US$ 1,593) |
4,693 |
30 |
34,876 (US$ 1,124) |
22,792 (US$ 732) |
Note 2 |
Associate |
|
|
|
|
|
|
|
|
|
|
|
|
(Continued)
- 82 -
Investor Company |
Investee Company |
Location |
Main Businesses and Products |
Original Investment Amount |
Balance as of September 30, 2019 |
Net Income (Losses) of the Investee |
Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands) |
Note |
|||
September 30, 2019 (Foreign Currencies in Thousands) |
December 31, 2018 (Foreign Currencies in Thousands) |
Shares (In Thousands) |
Percentage of Ownership |
Carrying Value (Foreign Currencies in Thousands) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Development |
WaferTech |
Washington, U.S.A |
Manufacturing, selling and testing of integrated circuits and other semiconductor devices |
$ - |
$ - |
293,637 |
100 |
$5,163,693 (US$ 166,426) |
$526,448 (US$ 16,938) |
Note 2 |
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: |
The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions. |
Note 2: |
The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company. |
Note 3: |
To lower the hedging cost, in August 2018, the Board of Directors of TSMC approved to inject US$2,000,000 thousand of capital into TSMC Global. This project was approved by the Investment Commission, Ministry of Economic Affairs, R.O.C. (MOEA). The prepayment for investment was US$100,000 thousand as of September 30, 2019. |
- 83 -
TABLE 10
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR NINE MONTHS ENDED SEPTEMBER 30, 2019
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investee Company |
Main Businesses and Products |
Total Amount of Paid-in Capital (RMB in Thousands) |
Method of Investment |
Accumulated Outflow of Investment from Taiwan as of January 1, 2019 (US$ in Thousands) |
Investment Flows |
Accumulated Outflow of Investment from Taiwan as of September 30, 2019 (US$ in Thousands) |
Net Income (Losses) of the Investee Company |
Percentage of Ownership |
Share of Profits/Losses |
Carrying Amount as of September 30, 2019 |
Accumulated Inward Remittance of Earnings as of September 30, 2019 |
|
Outflow (US$ in Thousands) |
Inflow |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC China |
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |
$18,939,667 (RMB 4,502,080) |
Note 1 |
$ 18,939,667 (US$ 596,000) |
$ - |
$ - |
$ 18,939,667 (US$ 596,000) |
$ 2,579,455 |
100% |
$ 2,615,362 (Note 2) |
$ 56,525,540 |
$ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
TSMC Nanjing |
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |
30,521,412 (RMB 6,650,119) |
Note 1 |
30,521,412 (US$ 1,000,000) |
- |
- |
30,521,412 (US$ 1,000,000) |
(1,408,396) |
100% |
(1,426,430) (Note 2) |
18,964,618 |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Investment in Mainland China as of September 30, 2019 (US$ in Thousands) |
Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands) |
Upper Limit on Investment |
|
|
|
$ 49,461,079 (US$ 1,596,000) |
$ 119,412,667 (US$ 3,596,000) |
952,498,201 (Note 3) |
|
|
|
Note 1: |
TSMC directly invested US$596,000 thousand in TSMC China and US$1,000,000 thousands in TSMC Nanjing. |
Note 2: |
Amount was recognized based on the reviewed financial statements. |
Note 3: |
The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company’s consolidated net worth. |
- 84 -
1FD8A]^2QR".BYXQ73>&-%.
M@Z#!9RR^==,6FNIO^>DSDL[?F3CVQ6Q0!RLGAG5-9MV&O:[,-RD"VTW,$2$C
M^]G>^/<@<=*2T\!6*6D-OJ&I:MJ<<2"-%N;QE4 ?[*;0?QS75T4 2[TJ\MH6VRS0/&C>A*D U:HH P/!-RMUX+TD@;6BME@D3^X\8V,I]
MP5(JYK^KIHFB7-\1OD1=L,?>24\(@]RQ JO-X=$=W/=Z5?W&FS7#;YEB"O%(
MW=BC @-TY&,]\U';^&=]_;W^K:E