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Segment Information
 12 Months Ended
Dec. 31, 2022
Disclosure of operating segments [abstract]  
Segment Information
43.
SEGMENT INFORMATION

In response to changes in the operating environment and new business challenges, the Company launched its organizational transformation and redesigned the operational decision-making processes and the performance assessment under the new structure. The aforementioned organizational transformation was effective from January 1, 2022. The Company redefined the reportable segments as "Consumer Business", "Enterprise Business", "International Business" and "Others" and restated the corresponding items of segment information for the comparative period. The reportable segments are managed separately because each segment represents a strategic business unit that serves different customers. Segment information is provided to the CEO who allocates resources and assesses segment performance. The Company’s measure of segment performance is mainly based on revenues and income before income tax.

Some operating segments have been aggregated into a single operating segment taking into account the following factors: (a) the type or class of customer for the telecommunications products and services are similar; (b) the nature of the telecommunications products and services are similar; and (c) the methods used to provide the services to the customers are similar.

The accounting policies of the operating segments are the same as those described in Note 3.

a.
Segment revenues and operating results

Analysis by reportable segment of revenues and operating results of continuing operations are as follows:

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Year ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

126,064

 

 

$

70,229

 

 

$

6,094

 

 

$

5,222

 

 

$

207,609

 

Intersegment revenues

 

 

2,616

 

 

 

1,351

 

 

 

950

 

 

 

261

 

 

 

5,178

 

Segment revenues

 

$

128,680

 

 

$

71,580

 

 

$

7,044

 

 

$

5,483

 

 

 

212,787

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,178

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

207,609

 

Segment income before income tax

 

$

25,928

 

 

$

12,263

 

 

$

908

 

 

$

3,727

 

 

$

42,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

129,912

 

 

$

69,258

 

 

$

6,122

 

 

$

5,186

 

 

$

210,478

 

Intersegment revenues

 

 

2,857

 

 

 

1,693

 

 

 

961

 

 

 

340

 

 

 

5,851

 

Segment revenues

 

$

132,769

 

 

$

70,951

 

 

$

7,083

 

 

$

5,526

 

 

 

216,329

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,851

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

210,478

 

Segment income before income tax

 

$

27,528

 

 

$

15,094

 

 

$

1,246

 

 

$

2,199

 

 

$

46,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From external customers

 

$

132,063

 

 

$

72,152

 

 

$

7,189

 

 

$

5,335

 

 

$

216,739

 

Intersegment revenues

 

 

2,166

 

 

 

952

 

 

 

864

 

 

 

348

 

 

 

4,330

 

Segment revenues

 

$

134,229

 

 

$

73,104

 

 

$

8,053

 

 

$

5,683

 

 

 

221,069

 

Intersegment elimination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,330

)

Consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

216,739

 

Segment income before income tax

 

$

28,505

 

 

$

15,607

 

 

$

1,694

 

 

$

1,398

 

 

$

47,204

 

 

b.
Other segment information

Other information reviewed by the chief operating decision maker or regularly provided to the chief operating decision maker was as follows:

For the year ended December 31, 2020

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(117

)

 

$

22

 

 

$

199

 

 

$

140

 

 

$

244

 

Interest income

 

$

8

 

 

$

19

 

 

$

22

 

 

$

67

 

 

$

116

 

Interest expenses

 

$

125

 

 

$

61

 

 

$

5

 

 

$

15

 

 

$

206

 

Depreciation and amortization

 

$

26,618

 

 

$

8,960

 

 

$

894

 

 

$

666

 

 

$

37,138

 

Gain (loss) on disposal of property,
   plant and equipment

 

$

(15

)

 

$

(8

)

 

$

(1

)

 

$

1,452

 

 

$

1,428

 

Gain on disposal of investment
   properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

151

 

 

$

151

 

Reversal of impairment loss on
   investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

27

 

 

$

27

 

Impairment loss on intangible assets

 

$

9

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

9

 

 

For the year ended December 31, 2021

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(48

)

 

$

11

 

 

$

272

 

 

$

186

 

 

$

421

 

Interest income

 

$

7

 

 

$

16

 

 

$

5

 

 

$

67

 

 

$

95

 

Interest expenses

 

$

131

 

 

$

66

 

 

$

7

 

 

$

14

 

 

$

218

 

Depreciation and amortization

 

$

27,953

 

 

$

9,700

 

 

$

865

 

 

$

698

 

 

$

39,216

 

Impairment loss on right-of-use assets

 

$

5

 

 

$

382

 

 

$

33

 

 

$

—

 

 

$

420

 

Reversal of impairment loss on
   investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

83

 

 

$

83

 

Impairment loss on intangible assets

 

$

29

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

29

 

 

For the year ended December 31, 2022

 

 

 

Consumer
Business

 

 

Enterprise
Business

 

 

International
Business

 

 

Others

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Share of profits of associates and
   joint ventures accounted for using
   equity method

 

$

(43

)

 

$

23

 

 

$

315

 

 

$

147

 

 

$

442

 

Interest income

 

$

11

 

 

$

28

 

 

$

8

 

 

$

202

 

 

$

249

 

Interest expenses

 

$

151

 

 

$

83

 

 

$

7

 

 

$

22

 

 

$

263

 

Depreciation and amortization

 

$

28,703

 

 

$

9,714

 

 

$

1,114

 

 

$

739

 

 

$

40,270

 

Reversal of impairment loss on
   investment properties

 

$

—

 

 

$

—

 

 

$

—

 

 

$

107

 

 

$

107

 

Impairment loss on intangible assets

 

$

9

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

9

 
c.
Main products and service revenues

The following is an analysis of the Company’s revenue from its major products and services.

 

 

 

Year Ended December 31

 

 

 

2020

 

 

2021

 

 

2022

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Consumer Business

 

 

 

 

 

 

 

 

 

Mobile services

 

$

48,183

 

 

$

49,043

 

 

$

51,821

 

Fixed-line services

 

 

42,171

 

 

 

42,277

 

 

 

42,766

 

Sales

 

 

33,167

 

 

 

36,145

 

 

 

35,172

 

Others

 

 

2,543

 

 

 

2,447

 

 

 

2,304

 

 

 

 

126,064

 

 

 

129,912

 

 

 

132,063

 

Enterprise Business

 

 

 

 

 

 

 

 

 

Fixed-line services

 

 

34,529

 

 

 

34,712

 

 

 

34,537

 

ICT business

 

 

24,073

 

 

 

22,299

 

 

 

24,248

 

Mobile services

 

 

8,190

 

 

 

8,446

 

 

 

8,942

 

Others

 

 

3,437

 

 

 

3,801

 

 

 

4,425

 

 

 

 

70,229

 

 

 

69,258

 

 

 

72,152

 

International Business

 

 

 

 

 

 

 

 

 

Fixed-line services

 

 

4,692

 

 

 

5,008

 

 

 

5,063

 

ICT business

 

 

772

 

 

 

679

 

 

 

1,506

 

Others

 

 

630

 

 

 

435

 

 

 

620

 

 

 

 

6,094

 

 

 

6,122

 

 

 

7,189

 

Others

 

 

 

 

 

 

 

 

 

Sales

 

 

4,313

 

 

 

4,335

 

 

 

4,553

 

Others

 

 

909

 

 

 

851

 

 

 

782

 

 

 

 

5,222

 

 

 

5,186

 

 

 

5,335

 

 

 

$

207,609

 

 

$

210,478

 

 

$

216,739

 

 

d.
Geographic information

The users of the Company’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues was as follows:

 

 

Year Ended December 31

 

 

 

2020

 

 

2021

 

 

2022

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Taiwan, ROC

 

$

200,881

 

 

$

204,473

 

 

$

209,727

 

Overseas

 

 

6,728

 

 

 

6,005

 

 

 

7,012

 

 

 

$

207,609

 

 

$

210,478

 

 

$

216,739

 

 

The Company has long-lived assets in U.S., Singapore, Hong Kong, China, Vietnam, Japan, and Thailand for $3,234 million and $3,212 million as of December 31, 2021 and 2022, respectively, in the aforementioned areas, the other long-lived assets are located in Taiwan, ROC.

e.
Major customers

As of December 31, 2020, 2021 and 2022, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.