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Property, Plant and Equipment (Tables)
12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Changes in Property, Plant and Equipment

(a) Changes in property, plant and equipment for the year ended December 31, 2017 are as follows:

 

(In millions of won)                                           
     Land     Buildings
and
structures
    Machinery
and
equipment
    Furniture
and
fixtures
    Construction-
in-progress
(*1)
    Others     Total  

Acquisition cost as of January 1, 2017

   W   461,484       6,284,778       37,472,177       775,682       2,981,964       202,306       48,178,391  

Accumulated depreciation as of January 1, 2017

     —         (2,397,967     (32,947,359     (651,424     —         (146,251     (36,143,001

Accumulated impairment loss as of January 1, 2017

     —         (1,651     (2,290     —         —         —         (3,941
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value as of January 1, 2017

   W 461,484       3,885,160       4,522,528       124,258       2,981,964       56,055       12,031,449  

Additions

     —         —         —         —         7,272,476       —         7,272,476  

Depreciation

     —         (295,045     (2,416,202     (66,963     —         (13,673     (2,791,883

Disposals

     (1,042     (7,206     (75,275     (52     —         (3,133     (86,708

Others(*2)

     69       339,640       3,825,155       87,186       (4,270,210     18,160       —    

Effect of movements in exchange rates

     —         (63,222     (140,306     (3,087     (14,213     (687     (221,515

Government grants received

     —         (548     (3,150     —         1,839       —         (1,859
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value as of December 31, 2017

   W 460,511       3,858,779       5,712,750       141,342       5,971,856       56,722       16,201,960  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Acquisition cost as of December 31, 2017

   W 460,511       6,539,506       38,901,158       772,824       5,971,856       205,475       52,851,330  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated depreciation as of December 31, 2017

   W —         (2,678,970     (33,186,118     (631,482     —         (148,753     (36,645,323
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated impairment loss as of December 31, 2017

   W —         (1,757     (2,290     —         —         —         (4,047
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*1)

As of December 31, 2017, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)

Others are mainly amounts transferred from construction-in-progress.

 

  (b)

Changes in property, plant and equipment for the year ended December 31, 2018 are as follows:

 

(In millions of won)                                           
     Land     Buildings
and
structures
    Machinery
and
equipment
    Furniture
and
fixtures
    Construction-
in-progress
(*1)
    Others     Total  

Acquisition cost as of January 1, 2018

   W   460,511       6,539,506       38,901,158       772,824       5,971,856       205,475       52,851,330  

Accumulated depreciation as of January 1, 2018

     —         (2,678,970     (33,186,118     (631,482     —         (148,753     (36,645,323

Accumulated impairment loss as of January 1, 2018

     —         (1,757     (2,290     —         —         —         (4,047
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value as of January 1, 2018

   W     460,511       3,858,779       5,712,750       141,342       5,971,856       56,722       16,201,960  

Additions

     —         —         —         —         8,605,551       —         8,605,551  

Depreciation

     —         (318,311     (2,568,335     (67,274     —         (169,739     (3,123,659

Disposals

     (15     (161     (112,752     (311     —         (2,971     (116,210

Impairment loss

     —         —         (25,711     —         (17,890     —         (43,601

Others(*2)

     1,332       55,430       1,959,645       68,177       (2,357,412     380,278       107,450  

Effect of movements in exchange rates

     —         9,809       14,520       359       15,010       312       40,010  

Government grants received

     —         —         (1,029     —         (181     —         (1,210

Reclassification to assets held-for-sale

     —         (69,758     (1     (37     —         (365     (70,161
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Book value as of December 31, 2018

   W 461,828       3,535,788       4,979,087       142,256       12,216,934       264,237       21,600,130  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Acquisition cost as of December 31, 2018

   W 461,828       6,528,939       39,825,070       834,628       12,234,824       633,220       60,518,509  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated depreciation as of December 31, 2018

   W —         (2,991,445     (34,817,982     (692,372     —         (368,893     (38,870,782
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated impairment loss as of December 31, 2018

   W —         (1,706     (28,001     —         (17,890     —         (47,597
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(*1)

As of December 31, 2018, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2)

Others are mainly amounts transferred from construction-in-progress.

Capitalized Borrowing Costs and Capitalization Rate

(c) Capitalized borrowing costs and capitalization rate for the years ended December 31, 2016, 2017 and 2018 are as follows:

 

(In millions of won)             
     2016     2017     2018  

Capitalized borrowing costs

   W   16,909       47,686       146,607  

Capitalization rate

     2.91     1.92     2.80