Page 195 - 2017 TSMC Annual Report

The major terms of overseas unsecured bonds are as follows:
Issuance Period
April 2013 to April 2016 April 2013 to April 2018
Total Amount (US$
in Thousands)
$ 350,000 1,150,000
Coupon Rate
0.95% 1.625%
Repayment and Interest Payment
Bullet repayment; interest payable semi-annually
The same as above
21. RETIREMENTBENEFITPLANS
a. Defined contribution plans
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, TSMC, Mutual-Pak and VisEra Tech have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC China, TSMC Nanjing, TSMC Europe, TSMC Canada, TSMC Technology and TSMC Solar Europe GmbH also make monthly contributions at certain percentages of the basic salary of their employees. Accordingly, the Company recognized expenses of NT$2,369,940 thousand and NT$2,164,900 thousand for the years ended December 31, 2017 and 2016, respectively.
b. Defined benefit plans
TSMC has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.
Amounts recognized in respect of these defined benefit plans were as follows:
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
Actuarial loss arising from experience adjustments Actuarial loss(gain) arising from changes in financial
assumptions
Actuarial loss arising from changes in demographic
assumptions
Components of defined benefit costs recognized in other
comprehensive income Total
$
Years Ended December 31
$
2017
145,026 126,525 271,551
29,290 483,846
(258,455) -
2016
132,786 139,355 272,141
45,721 38,195
694,632
278,672 1,057,220 $ 1,329,361
- 47 -
- 47 -
254,681 $ 526,232