Page 303 - TSMC 2020 Annual Report

Additions to right-of-use assets
Depreciation of right-of-use assets Land
Buildings
Machinery and equipment Office equipment
Income from subleasing right-of-use assets (classified under other operating income and expenses, net)
b. Lease liabilities
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)
Noncurrent portion
Ranges of discount rates for lease liabilities are as follows:
Land
Buildings
Machinery and equipment Office equipment
c. Material terms of right-of-use assets
2020
$ 12,558,794
$ 1,298,315 131,436 775,809 13,612
$ 2,219,172 $ 52,317
December 31, 2020
$ 1,379,097 18,480,111
$ 19,859,208
December 31, 2020
0.48%-0.94% 0.54%-0.71% - 0.28%-0.71%
2019
$ 639,879
$ 944,052 105,873 1,184,374 10,154
$ 2,244,453 $ 44,796
December 31, 2019
$ 1,843,556 13,300,263
$ 15,143,819
December 31, 2019
0.67%-0.94% 0.67%-0.71% 3.24% 0.64%-0.71%
Years Ended December 31
The Company leases land and buildings mainly for the use of plants and offices with lease terms of 2 to 22 years. The lease contracts for land located in the 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 use in operation with lease terms of 2 years. The Company has purchase options to acquire leasehold machinery and equipment at the end of the lease terms. As of September 30, 2020, the aforementioned lease contract has been expired.
d. Subleases
The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 2 years.
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