As
of September 30, 2016, based on the Company’s standard monthly subscription plan, the basic service fee was Won 11,000 and the usage fee was Won 1.8 per second.
SK Broadband provides broadband Internet access service, telephony, TV, corporate data services and other services for both individual and corporate customers.
As of September 30, 2016, broadband Internet and TV services comprised 57.9% of SK Broadband’s revenue, telephony service 15.4%, corporate data services 24.6% and other telecommunications services 2.1%. Price fluctuations in the different
services provided by SK Broadband are due to discounts provided for long term contracts, changes in equipment costs and competition between companies.
Set forth below are major products and
services of the Company’s material consolidated subsidiaries.
For the nine months ended September 30, 2016, the Company spent Won 410.5
billion for capital expenditures as set out below, including the investment of Won 170.9 billion to expand subscriber networks. In 2016, the Company expects to spend additional amounts to strengthen the competitiveness of its advanced media and IoT
solutions platforms; however, the overall capital expenditure amount is expected to be similar to 2015 through efficient management of investments.
Below are
SK Broadband’s contracts related to its telecommunications equipment. In addition to the below, SK Broadband also has entered into various real estate rental agreements.
The Company manages its corporate brand and other product brands in a comprehensive
way to protect and increase their value. The Company’s Brand Strategy Council in charge of overseeing its systematic corporate branding operates full-time to execute decisions involving major brands and operates “Brandnet,” an
intranet system to manage corporate brands by providing solutions such as registering and licensing of the brands.
As of September 30, 2016, the Company holds 6,087 Korean-registered patents, 427 U.S.-registered patents, 305 Chinese-registered patents (all including
patents held jointly with other companies) and more patents with other countries. The Company holds 966 Korean-registered trademarks and owns intellectual property rights to the design of the alphabet “T.” The designed alphabet
“T” is registered in all business categories for trademarks (total of 45) and is being used as the primary brand of the Company.
As of September 30, 2016, SK Broadband holds 419 Korean-registered patents relating to high-speed Internet, telephone and IPTV
service. In addition, SK Broadband has applied for a patent relating to two-way broadcasting system. SK Broadband also holds a number of trademarks and service marks relating to its service and brand.
As of September 30, 2016, SK Planet
held 2,292 registered patents, 126 registered design marks, 1,181 registered trademarks and five copyrights (including those held jointly with other companies) in Korea. It also holds 123 U.S.-registered patents, 91 Chinese-registered patents, 68
Japanese-registered patents, 33 E.U.-registered patents (all including patents held jointly with other companies) and 272 registered trademarks, along with a number of other intellectual property rights, in other countries.
As of September 30, 2016, SK Communications held 90 registered patents, 26 registered design rights and 633 registered trademarks in Korea.
The Company does not engage in any
manufacturing and therefore does not undertake any industrial processes that emit pollutants into the air or industrial processes in which hazardous materials are used.
Below is the summary consolidated financial information of
the Company as of September 30, 2016, December 31, 2015 and December 31, 2014 and for the nine months ended September 30, 2016 and 2015 and the years ended December 31, 2015 and 2014. The Company’s reviewed
consolidated financial statements as of September 30, 2016 and December 31, 2015 and for the nine months ended September 30, 2016 and 2015, which are prepared in accordance with K-IFRS, are attached hereto.
Below is the summary separate financial information of the
Company as of September 30, 2016, December 31, 2015 and December 31, 2014 and for the nine months ended September 30, 2016 and 2015 and the years ended December 31, 2015 and 2014. The Company’s reviewed separate
financial statements as of September 30, 2016 and December 31, 2015 and for the nine months ended September 30, 2016 and 2015, which are prepared in accordance with K-IFRS, are attached hereto.
The Company establishes allowances for doubtful accounts based on
the likelihood of recoverability of trade and other receivables based on their aging at the end of the period and past customer default experience for the past two years. With respect to trade receivables relating to wireless telecommunications
services, the Company considers the likelihood of recovery based on past customer default experience and the length of default in connection with the type of default (e.g., whether the customer’s service has been terminated or is continued).
For such trade receivables that have been overdue for more than two years after the customer’s service has been terminated, the Company records an allowance of 100% of such receivables. For such trade receivables that have been overdue for less
than two years after the customer’s service has been terminated or relates to a customer that is continuing his service, the Company records an allowance of a certain percentage of such receivable. Consistent with customary practice, the
Company writes off trade and other receivables for which the prescription period has passed or that are determined to be impossible or economically too costly to collect, including receivables that are less than Won 200,000 and more than six months
overdue and receivables that have been determined to be the subject of identity theft.
The Company holds handsets, ICT equipment for offline sales, etc. in inventory. The
Company conducts physical due diligence of its inventories with its auditors at the end of each year.
See notes 4(5) to 4(7) and 4(16) of the notes to the Company’s audited
consolidated financial statements as of and for the years ended December 31, 2015 and 2014 for more information.
Omitted in quarterly and semi-annual reports in accordance
with Korean disclosure rules.
The Company’s board of directors (the
“Board of Directors”) is composed of six members: four independent directors and two inside directors. Within the Board, there are five committees: Independent Director Nomination Committee, Audit Committee, Compensation Committee, CapEx
Review Committee, and Corporate Citizenship Committee.
At the 32nd General Meeting of Shareholders held on March 18, 2016, Dae Sik Cho and Dae Shick Oh were re-elected as an
inside director and an independent director, respectively.
The Company’s Audit Committee consists of three independent directors, Dae Shick Oh, Jae Hoon Lee and Jae Hyeon Ahn.
Major activities of the Audit Committee as of September 30, 2016 are set forth below.
Also, neither written or electronic voting system is applicable. Minority shareholder rights
were not exercised during the relevant period.
As of September 30, 2016, the Company’s largest
shareholder was SK Holdings Co., Ltd. (“SK Holdings”) with 20,363,452 shares (25.22%) of the Company. SK Holdings was established on April 13, 1991 and was made public on the securities market for the first time under the name SK
C&C Co., Ltd. on November 11, 2009. On August 3, 2015, SK Holdings merged with and into SK C&C and the merged entity was renamed SK Holdings. The main business of SK Holdings includes managing its subsidiaries as a holding company,
IT services, security services and logistics services, among others.
See note 33 of the notes to the Company’s consolidated financial statements attached hereto for more information regarding related party transactions.
On May 7, 2010, Korea Music Copyright Association (“KOMCA”) filed a lawsuit with the court demanding that
the Company pay KOMCA license fees for the Company’s “Coloring” services. The court rendered a judgment against the Company ordering the Company to pay Won 570 million to KOMCA, which was affirmed by the appellate court on
October 26, 2011. The Company filed an appeal at the Supreme Court of Korea and the judgment was overturned on July 11, 2013. The case was remanded down to the appellate court which ruled in favor of the Company on September 4, 2014.
KOMCA filed an appeal at the Supreme Court of Korea, and on January 15, 2015, the Supreme Court of Korea affirmed the Seoul High Court’s decision. There is no impact on the Company’s business or results of operation as the final
outcome of this litigation has been rendered in favor of the Company.
The Company does not believe that the outcome of any of the proceedings in which SK Broadband is named as a defendant will
have a material effect on the Company’s financial statements.
SK Broadband, upon approval by its board of directors, has provided guarantees for financial instruments amounting to Won 728 million to support
employees’ funding for the Employee Stock Ownership Program.
Additionally, SK Broadband has provided “geun” mortgage amounting to Won 7.0
billion to others, including Ilsan Guksa, on a part of its buildings in connection with the leasing of the buildings.
Seoul Guarantee Insurance Company
has provided a performance guarantee of Won 16.1 billion to SK Broadband in connection with the performance of certain contracts and the repair of any defects.
SK Broadband has entered into revolving credit facilities with a limit of Won 50 billion with Shinhan Bank in relation to the Company’s loans.
SK Broadband has entered into a leased line contract and a resale contract for fixed-line telecommunication services with SK Telecom.
KB Kookmin Bank has provided a payment guarantee of Won 100 million to SK Broadband in connection with its e-commerce business.
As of September 30, 2016, there were eight pending cases proceeding
with SK Planet as the defendant and the aggregate amount of the claim was Won 147.0 million. The management cannot reasonably forecast the outcome of this case and no amount in connection with this proceeding was recognized on the Company’s
financial statements.
On October 14, 2016, 12 creditors filed a lawsuit to demand a court
injunction against SK Telink regarding its plan to issue new stock (219,967 shares with a face value of Won 5,000) pursuant to the resolution of SK Telink’s board of directors on September 22, 2016. The court granted SK Telink’s
motion to dismiss on October 24, 2016. There is no impact on SK Telink’s business or results of operation as the claim has been conclusively dismissed.
As of September 30, 2016, the aggregate amount of claims was Won 764.0
million. The Company successfully defended some but not all suits relating to a leak of personal information of subscribers of NATE. Relevant proceedings remain pending at various courts in Korea. The management cannot reasonably forecast the
outcome of the pending proceedings, and as a result, adjustments were not made in the financial statements of the Company. The Company does not believe that the outcome of any of the proceedings in which SK Communications is named as a defendant
will have a material effect on the Company’s financial statements.
On July 4, 2012, the Fair Trade
Commission issued correctional orders and imposed fines on the Company and seven affiliated companies for alleged unfair advantage provided to SK C&C, an affiliated company, in services fees for information technology system management and
operation. The Company and SK Planet were imposed fines of Won 25,042 million and Won 1,349 million, respectively. The Company and the seven affiliated companies appealed the orders and on May 14, 2014, won the suit at the Seoul High
Court. The Fair Trade Commission appealed the decision, and on March 10, 2016, the Supreme Court of Korea ruled in favor of the Company.
On
December 27, 2013, the Korea Communications Commission imposed on the Company a fine of Won 56.0 billion and issued a correctional order for providing discriminatory subsidies to subscribers. The Company paid the fine and completed the
improvement of the procedures and reported to the Korea Communications Commission on the implementation of actions pursuant to the correctional order by January 2014.
On March 7, 2014, the MSIP imposed a suspension of operations for 45 days for failure to observe the order of the Korea Communications Commission to
cease providing discriminatory subsidies to subscribers. The Company suspended its operations during the period between April 5, 2014 and May 19, 2014, and reported to the MSIP on the implementation of actions pursuant to the suspension
order by May 2014.
On March 13, 2014, the Korea Communications Commission imposed on the Company a fine of Won 16.65 billion, imposed a suspension
on acquiring new customers for 7 days, and issued a correctional order for providing discriminatory subsidies to subscribers. In April 2014, the Company paid the fine and completed the improvement of the procedures and reported to the Korea
Communications Commission on the implementation of actions pursuant to the correctional order by April 2014. The Company suspended acquisition of new customers during the period beginning September 11, 2014 and ending September 17, 2014,
and reported to the Korea Communications Commission on the implementation of actions pursuant to the correctional order by September 2014.
On
January 31, 2013, the Seoul Central District Court acquitted Mr. Jae Won Chey, the Company’s former director and vice chairman, on all charges against him. On September 27, 2013, the Seoul High Court reversed the acquittal of the
above-mentioned former director, sentencing him to a prison term of three and a half years for violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes. On February 27, 2014, the Supreme Court of Korea affirmed the Seoul
High Court’s decision. While the court’s final decision on the appealed case is not expected to have a material effect on the Company’s financial position, investors should note that it is difficult to predict, among others, the
market’s assessment of such case.
On August 21, 2014, the Korea Communications Commission imposed on the Company a fine of Won 37.1 billion and
issued a correctional order for providing discriminatory subsidies to subscribers. The Company paid the fine and completed the improvement of the procedures and reported to the Korea Communications Commission on the implementation of actions
pursuant to the correctional order by September 2014.
On December 4, 2014, the Korea Communications Commission imposed on the Company a fine of Won
800 million and issued a correctional order for violating the Mobile Device Distribution Improvement Act. The Company paid the fine and completed the improvement of the procedures and reported to the Korea Communications Commission on the
implementation of actions pursuant to the correctional order by January 2015.
On March 12, 2015, the Korea Communications Commission imposed on the
Company a fine of Won 934 million and issued a correctional order for violating the Mobile Device Distribution Improvement Act with respect to the Company’s compensation programs for used handsets. The Company paid the fine and completed
the improvement of the procedures and reported to the Korea Communications Commission on the implementation of actions pursuant to the correctional order by April 2015.
On March 26, 2015, the Korea Communications Commission imposed on the Company a fine of Won 23.5 billion,
imposed a suspension on acquiring new customers for seven days, and issued a correctional order for violating the Mobile Device Distribution Improvement Act. The Company paid the fine and implemented the improvement of the procedures and reported to
the Korea Communications Commission on the implementation of actions pursuant to the correctional order in May 2015. The suspension on acquiring new customers was implemented from October 1, 2015 to October 7, 2015.
On May 13, 2015, the Korea Communications Commission imposed on the Company a fine of Won 3.56 billion and issued a correctional order for violating its
obligations to protect personal information (a fine of Won 360 million imposed for violation of its obligations to protect personal information and Won 3.2 billion imposed for damaging users’ interests). The Company paid the fine in July
2015 and reported to the Korea Communications Commission on the implementation of actions pursuant to the correctional order in September 2015. Whether the correctional order on the violation of obligations to protect personal information will be
enforced depends on the Court’s ruling following the Company’s filing of an administrative proceeding to appeal the order on June 24, 2015.
On May 28, 2015, the Korea Communications Commission imposed on the Company a fine of Won 350 million and issued a correctional order for misleading
and exaggerated advertisement of bundled media and telecommunications products. The Company paid the fine in August 2015 and reported to the Korea Communications Commission on the implementation of actions pursuant to the correctional order in
October 2015.
On December 10, 2015, the Korea Communications Commission imposed on the Company a fine of Won 560 million and issued a
correctional order for misleading and exaggerated advertisement of bundled media and telecommunications products. The Company paid the fine and reported to the Korea Communications Commission on the implementation of actions pursuant to the
correctional order in February 2016.
On January 14, 2016, the Korea Communications Commission imposed on the Company a fine of Won 15 million
and issued a correctional order for failure to comply with the retention period for its subscribers’ personal information. The Company paid the fine and reported to the Korea Communications Commission on the implementation of actions pursuant
to the correctional order.
Pursuant to the resolution of SK
Telink’s board of directors on September 22, 2016, SK Telink received a capital contribution of all of the 408,435 shares (an 83.93% equity interest) of Neosnetworks held by the Company. On October 25, 2016, SK Telink acquired a 100%
ownership interest in Neosnetworks through the purchase of the remaining 78,200 shares (a 16.07% equity interest).
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
SK Telecom Co., Ltd. (“the Company”) was incorporated in
March 1984 under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The Company mainly provides wireless telecommunications services in Korea. The Head office of the Company is
located at 65,
Eulji-ro,
Jung-gu,
Seoul, Korea.
The
Company’s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of September 30, 2016, the Company’s total issued shares are held by
the following shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares
|
|
|
Percentage of
total shares issued (%)
|
|
|
SK Holdings Co., Ltd.
|
|
|
20,363,452
|
|
|
|
25.22
|
|
|
National Pension Service, other institutional investors and other minority stockholders
|
|
|
50,245,708
|
|
|
|
62.23
|
|
|
Treasury stock
|
|
|
10,136,551
|
|
|
|
12.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80,745,711
|
|
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Statement of compliance
|
These condensed separate interim financial statements were prepared in
accordance with
K-IFRS
No. 1034,
Interim Financial Reporting,
as part of the period covered by the Company’s
K-IFRS
annual financial statements.
Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since December 31, 2015. These condensed separate interim
financial statements do not include all of the disclosures required for full annual financial statements.
These condensed interim
financial statements are separate interim financial statements prepared in accordance with
K-IFRS
No.1027,
Separate Financial Statements,
presented by a parent, an investor with joint control of, of
significant influence over, an investee, in which the investments are accounted for at cost.
|
|
(2)
|
Use of estimates and judgments
|
1) Critical judgments, assumptions and estimation uncertainties
The preparation of the condensed separate interim financial statements in conformity with
K-IFRS
requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed separate interim financial statements, the significant judgments made by management in applying the Company’s
accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as of and for the year ended December 31, 2015.
10
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
2.
|
Basis of Presentation, Continued
|
|
|
(2)
|
Use of estimates and judgments, Continued
|
2) Fair value measurement
A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial
assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing
all significant fair value measurements, including Level 3 fair values, and reports directly to the finance executive.
The valuation
team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the
third parties to support the conclusion that such valuations meet the requirements of
K-IFRS,
including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
|
|
•
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
|
•
|
|
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
|
|
|
•
|
|
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair
value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at
the end of the reporting period during which the change has occurred.
Information about assumptions used for fair value measurements are
included in Note 27.
|
3.
|
Significant Accounting Policies
|
The accounting policies applied by the Company in these
condensed separate interim financial statements are the same as those applied by the Company in its separate financial statements as of and for the year ended December 31, 2015.
11
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Deposits which are restricted in use as of September 30, 2016
and December 31, 2015 are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Short-term financial instruments(*)
|
|
W
|
79,000
|
|
|
|
79,000
|
|
|
Long-term financial instruments(*)
|
|
|
10,102
|
|
|
|
10,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
89,102
|
|
|
|
89,062
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Financial instruments include charitable trust fund established by the Company. Profits from the fund are donated to charitable institutions. As of September 30, 2016 the funds cannot be withdrawn.
|
|
5.
|
Trade and Other Receivables
|
|
|
(1)
|
Details of trade and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
|
|
Gross
amount
|
|
|
Allowances for
doubtful
accounts
|
|
|
Carrying
amount
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
1,743,700
|
|
|
|
(135,118
|
)
|
|
|
1,608,582
|
|
|
Short-term loans
|
|
|
59,666
|
|
|
|
(597
|
)
|
|
|
59,069
|
|
|
Accounts receivable - other
|
|
|
799,698
|
|
|
|
(62,923
|
)
|
|
|
736,775
|
|
|
Accrued income
|
|
|
8,810
|
|
|
|
—
|
|
|
|
8,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,611,874
|
|
|
|
(198,638
|
)
|
|
|
2,413,236
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
53,543
|
|
|
|
(19,234
|
)
|
|
|
34,309
|
|
|
Long-term receivables - other
|
|
|
226,168
|
|
|
|
—
|
|
|
|
226,168
|
|
|
Guarantee deposits
|
|
|
174,792
|
|
|
|
—
|
|
|
|
174,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
454,503
|
|
|
|
(19,234
|
)
|
|
|
435,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,066,377
|
|
|
|
(217,872
|
)
|
|
|
2,848,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
|
Gross
amount
|
|
|
Allowances for
doubtful
accounts
|
|
|
Carrying
amount
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
1,654,575
|
|
|
|
(125,824
|
)
|
|
|
1,528,751
|
|
|
Short-term loans
|
|
|
48,223
|
|
|
|
(482
|
)
|
|
|
47,741
|
|
|
Accounts receivable - other
|
|
|
323,870
|
|
|
|
(59,129
|
)
|
|
|
264,741
|
|
|
Accrued income
|
|
|
7,505
|
|
|
|
—
|
|
|
|
7,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,034,173
|
|
|
|
(185,435
|
)
|
|
|
1,848,738
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
54,322
|
|
|
|
(19,242
|
)
|
|
|
35,080
|
|
|
Guarantee deposits
|
|
|
166,656
|
|
|
|
—
|
|
|
|
166,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
220,978
|
|
|
|
(19,242
|
)
|
|
|
201,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,255,151
|
|
|
|
(204,677
|
)
|
|
|
2,050,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
5.
|
Trade and Other Receivables, Continued
|
|
|
(2)
|
Changes in allowances for doubtful accounts of trade and other receivables during the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Balance at January 1
|
|
W
|
204,677
|
|
|
|
189,851
|
|
|
Increase of bad debt allowances
|
|
|
21,807
|
|
|
|
35,307
|
|
|
Write-offs
|
|
|
(23,102
|
)
|
|
|
(36,515
|
)
|
|
Collection of receivables previously
written-off
|
|
|
14,490
|
|
|
|
14,971
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30
|
|
W
|
217,872
|
|
|
|
203,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of overdue but not impaired, and impaired trade and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Neither overdue nor impaired
|
|
W
|
1,276,458
|
|
|
|
1,177,159
|
|
|
|
1,188,225
|
|
|
|
488,244
|
|
|
Overdue but not impaired
|
|
|
29,351
|
|
|
|
—
|
|
|
|
45,146
|
|
|
|
—
|
|
|
Impaired
|
|
|
437,891
|
|
|
|
145,518
|
|
|
|
421,204
|
|
|
|
112,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,743,700
|
|
|
|
1,322,677
|
|
|
|
1,654,575
|
|
|
|
600,576
|
|
|
Allowances for doubtful accounts
|
|
|
(135,118
|
)
|
|
|
(82,754
|
)
|
|
|
(125,824
|
)
|
|
|
(78,853
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,608,582
|
|
|
|
1,239,923
|
|
|
|
1,528,751
|
|
|
|
521,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company establishes allowances for doubtful accounts based on the likelihood of recoverability of trade
and other receivables based on their aging at the end of the period, past customer default experience, customer credit status, and economic and industrial factors.
|
|
(4)
|
The aging of overdue but not impaired accounts receivable as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Less than 1 month
|
|
W
|
6,649
|
|
|
|
5,550
|
|
|
1 ~ 3 months
|
|
|
4,838
|
|
|
|
9,507
|
|
|
3 ~ 6 months
|
|
|
6,546
|
|
|
|
6,583
|
|
|
More than 6 months
|
|
|
11,318
|
|
|
|
23,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
29,351
|
|
|
|
45,146
|
|
|
|
|
|
|
|
|
|
|
|
13
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Details of short-term investment securities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Beneficiary certificates(*)
|
|
W
|
202,513
|
|
|
|
92,262
|
|
|
(*)
|
The income distributable in relation to beneficiary certificates as of September 30, 2016 were accounted for as accrued income.
|
|
|
(2)
|
Details of long-term investment securities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
Marketable equity securities
|
|
W
|
665,230
|
|
|
|
579,282
|
|
|
Unlisted equity securities
|
|
|
79,271
|
|
|
|
72,461
|
|
|
Equity investments
|
|
|
50,249
|
|
|
|
65,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
794,750
|
|
|
|
717,402
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
Investment bonds(*)
|
|
|
9,093
|
|
|
|
9,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
803,843
|
|
|
|
726,505
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The Company classified the convertible bonds of IRIVER LIMITED, amounting to
W
6,163 million, as financial assets at fair value through profit or loss and the difference between
carrying amount and fair value was accounted for as gain or loss relating to financial assets at fair value through profit or loss.
|
|
7.
|
Investments in Subsidiaries, Associates and Joint Ventures
|
|
|
(1)
|
Investments in subsidiaries, associates and joint ventures as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Investments in subsidiaries
|
|
W
|
4,414,391
|
|
|
|
4,469,997
|
|
|
Investments in associates and joint ventures
|
|
|
4,376,912
|
|
|
|
4,340,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,791,303
|
|
|
|
8,810,548
|
|
|
|
|
|
|
|
|
|
|
|
14
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
7.
|
Investments in Subsidiaries, Associates and Joint Ventures, Continued
|
|
|
(2)
|
Details of investments in subsidiaries as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31,
2015
|
|
|
|
|
Number of
shares
|
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
|
Carrying
amount
|
|
|
SK Telink Co., Ltd.
|
|
|
1,082,272
|
|
|
|
83.5
|
|
|
W
|
144,740
|
|
|
|
144,740
|
|
|
SK Broadband Co., Ltd.(*1)
|
|
|
298,460,212
|
|
|
|
100.0
|
|
|
|
1,870,582
|
|
|
|
1,870,582
|
|
|
SK Communications Co., Ltd.
|
|
|
28,029,945
|
|
|
|
64.5
|
|
|
|
151,934
|
|
|
|
151,934
|
|
|
PS&Marketing Corporation
|
|
|
66,000,000
|
|
|
|
100.0
|
|
|
|
313,934
|
|
|
|
313,934
|
|
|
Service Ace Co., Ltd.
|
|
|
4,385,400
|
|
|
|
100.0
|
|
|
|
21,927
|
|
|
|
21,927
|
|
|
Service Top Co., Ltd.
|
|
|
2,856,200
|
|
|
|
100.0
|
|
|
|
14,281
|
|
|
|
14,281
|
|
|
Network O&S Co., Ltd.
|
|
|
3,000,000
|
|
|
|
100.0
|
|
|
|
15,000
|
|
|
|
15,000
|
|
|
SK Planet Co., Ltd.(*2,3,5)
|
|
|
57,338,266
|
|
|
|
98.1
|
|
|
|
1,298,237
|
|
|
|
1,520,206
|
|
|
Neosnetworks Co., Ltd.
|
|
|
408,435
|
|
|
|
83.9
|
|
|
|
63,967
|
|
|
|
63,967
|
|
|
IRIVER LIMITED
|
|
|
15,202,039
|
|
|
|
48.9
|
|
|
|
54,503
|
|
|
|
54,503
|
|
|
SK Telecom China Holdings Co., Ltd.
|
|
|
—
|
|
|
|
100.0
|
|
|
|
38,652
|
|
|
|
38,652
|
|
|
SKT Vietnam PTE. Ltd.
|
|
|
180,476,700
|
|
|
|
73.3
|
|
|
|
2,364
|
|
|
|
2,364
|
|
|
SKT Americas, Inc.(*4)
|
|
|
122
|
|
|
|
100.0
|
|
|
|
45,701
|
|
|
|
93,319
|
|
|
YTK Investment Ltd.
|
|
|
—
|
|
|
|
100.0
|
|
|
|
18,693
|
|
|
|
18,693
|
|
|
Atlas Investment
|
|
|
—
|
|
|
|
100.0
|
|
|
|
82,042
|
|
|
|
78,618
|
|
|
SK Global Healthcare Business Group Ltd.
|
|
|
—
|
|
|
|
100.0
|
|
|
|
39,649
|
|
|
|
39,649
|
|
|
Entrix Co., Ltd.
|
|
|
4,157,000
|
|
|
|
100.0
|
|
|
|
27,628
|
|
|
|
27,628
|
|
|
SK techx Co., Ltd.(*2)
|
|
|
6,323,905
|
|
|
|
100.0
|
|
|
|
128,371
|
|
|
|
—
|
|
|
One Store Co., Ltd.(*2)
|
|
|
10,409,600
|
|
|
|
65.5
|
|
|
|
82,186
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,414,391
|
|
|
|
4,469,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
7.
|
Investments in Subsidiaries, Associates and Joint Ventures, Continued
|
|
|
(2)
|
Details of investments in subsidiaries as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
(*1)
|
On November 2, 2015, the board of directors of the Company entered into a share purchase agreement to acquire 30%(23,234,060 shares) of the issued and outstanding common shares of CJ Hello Vision Co., Ltd.
(“CJ Hello Vision”) from CJ O Shopping Co., Ltd. (“CJ O Shopping”) for an aggregate purchase price of
W
500,000 million. The agreement stated government’s approval as prerequisite.
|
On November 2, 2015, the board of directors of SK Broadband Co., Ltd. (“SK Broadband”), a subsidiary of the
Company, approved the merger of SK Broadband into CJ Hello Vision, and then SK Broadband entered into a merger agreement with CJ Hello Vision with government’s approval as prerequisite.
After the announcement of disapproval of proposed takeover of CJ Hello Vision by the Fair Trade Commission (FTC) on July 18, 2016, the
Company announced the revocation of share purchase agreement to CJ O Shopping while SK Broadband withdrew from merger agreement with CJ Hello vision on July 25, 2016 as execution of the share purchase agreement with CJ O Shopping and merger
agreement between SK Broadband and CJ Hello Vision became objectively impossible.
|
(*2)
|
During the nine-month period ended September 30, 2016, SK techx Co., Ltd. and One Store Co., Ltd. were established by spin-offs of platform service division and
T-store
service division of SK Planet Co., Ltd. from SK Planet Co., Ltd., respectively. In connection with the spin-offs, the Company exchanged 12,323,905 shares of SK Planet Co., Ltd. for 6,323,905 shares of SK techx Co., Ltd. and 6,000,000 shares of One
Store Co., Ltd. The Company additionally acquired 4,409,600 shares of One Store Co., Ltd. for
W
22,048 million by participating in capital increase. The Company has equity interest of 65.5% on One Store Co.,
Ltd. as a result of unparticipated disproportionate capital increase by One Store Co., Ltd.
|
|
(*3)
|
During the nine-month period ended September 30, 2016, the Company acquired Location Based Service(LBS) division and mobile phone verification services business,
spun-off
from SK Planet Co., Ltd., in order to strengthen the platform business capabilities. Since this is considered a business combination of entities under common control, the Company succeeded the assets and liabilities at the acquiree’s carrying
amounts and recognized the difference between the carrying amount of 1,547,516 shares of SK Planet Co., Ltd., which were retired, and the net assets acquired in capital surplus and others.
|
|
(*4)
|
W
47,618 million of impairment loss was recognized during the nine-month period ended September 30, 2016.
|
|
(*5)
|
The ownership interest changed due to the shares issued to employee stock ownership association by SK Planet Co., Ltd. during the nine-month period ended September 30, 2016.
|
16
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
7.
|
Investments in Subsidiaries, Associates and Joint Ventures, Continued
|
|
|
(3)
|
Details of investments in associates and joint ventures as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31,
2015
|
|
|
|
|
Number of
shares
|
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
|
Carrying
amount
|
|
|
Investments in associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.(*1)
|
|
|
720,000
|
|
|
|
9.6
|
|
|
W
|
47,830
|
|
|
|
47,830
|
|
|
HappyNarae Co., Ltd.
|
|
|
680,000
|
|
|
|
42.5
|
|
|
|
12,250
|
|
|
|
12,250
|
|
|
Korea IT Fund(*2)
|
|
|
190
|
|
|
|
63.3
|
|
|
|
220,957
|
|
|
|
220,957
|
|
|
Wave City Development Co., Ltd.(*1)
|
|
|
393,460
|
|
|
|
19.1
|
|
|
|
1,532
|
|
|
|
1,532
|
|
|
KEB HanaCard Co., Ltd.(*1)
|
|
|
39,902,323
|
|
|
|
15.0
|
|
|
|
253,739
|
|
|
|
253,739
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
1,675,124
|
|
|
|
29.0
|
|
|
|
8,340
|
|
|
|
8,340
|
|
|
NanoEnTek, Inc.
|
|
|
6,960,445
|
|
|
|
28.5
|
|
|
|
47,958
|
|
|
|
47,958
|
|
|
SK Industrial Development China Co., Ltd.
|
|
|
72,952,360
|
|
|
|
21.0
|
|
|
|
83,691
|
|
|
|
83,691
|
|
|
SK Technology Innovation Company
|
|
|
14,700
|
|
|
|
49.0
|
|
|
|
45,864
|
|
|
|
45,864
|
|
|
SK hynix Inc.
|
|
|
146,100,000
|
|
|
|
20.1
|
|
|
|
3,374,725
|
|
|
|
3,374,725
|
|
|
SK MENA Investment B.V.
|
|
|
9,772,686
|
|
|
|
32.1
|
|
|
|
14,485
|
|
|
|
14,485
|
|
|
SK Latin America Investment S.A.
|
|
|
9,448,937
|
|
|
|
32.1
|
|
|
|
14,243
|
|
|
|
14,243
|
|
|
SKY Property Mgmt. Ltd.
|
|
|
12,639
|
|
|
|
33.0
|
|
|
|
145,656
|
|
|
|
145,656
|
|
|
SK Wyverns Baseball Club Co., Ltd. and others
|
|
|
—
|
|
|
|
—
|
|
|
|
81,142
|
|
|
|
69,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,352,412
|
|
|
|
4,340,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in joint venture:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HanaSK Fintech Co., Ltd. (*3)
|
|
|
4,900,000
|
|
|
|
49.0
|
|
|
|
24,500
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,376,912
|
|
|
|
4,340,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Classified as investments in associates as the Company can exercise significant influence through its right to appoint the members of board of directors even though the Company has less than 20% of equity interests.
|
|
(*2)
|
Investment in Korea IT Fund was classified as investment in associates as the Company does not have control over Korea IT Fund under the agreement.
|
|
(*3)
|
Investment in HanaSK Fintech Co., Ltd., a company newly established during the nine-month period ended September 30, 2016 was classified as investment in joint venture as the Company has joint control.
|
17
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
7.
|
Investments in Subsidiaries, Associates and Joint Ventures, Continued
|
|
|
(4)
|
The market price of investments in listed subsidiaries as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
IRIVER LIMITED
|
|
W
|
3,790
|
|
|
|
15,202,039
|
|
|
|
57,616
|
|
|
|
5,400
|
|
|
|
15,202,039
|
|
|
|
82,091
|
|
|
SK Communications Co., Ltd.
|
|
|
3,650
|
|
|
|
28,029,945
|
|
|
|
102,309
|
|
|
|
4,390
|
|
|
|
28,029,945
|
|
|
|
123,051
|
|
|
8.
|
Property and Equipment
|
Changes in property and equipment for the nine-month periods
ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Others(*)
|
|
|
Ending
balance
|
|
|
Land
|
|
W
|
494,359
|
|
|
|
1,764
|
|
|
|
(2,881
|
)
|
|
|
7,795
|
|
|
|
—
|
|
|
|
—
|
|
|
|
501,037
|
|
|
Buildings
|
|
|
557,932
|
|
|
|
1,437
|
|
|
|
(8,603
|
)
|
|
|
20,182
|
|
|
|
(26,713
|
)
|
|
|
—
|
|
|
|
544,235
|
|
|
Structures
|
|
|
342,411
|
|
|
|
11,156
|
|
|
|
(15
|
)
|
|
|
9,837
|
|
|
|
(24,780
|
)
|
|
|
—
|
|
|
|
338,609
|
|
|
Machinery
|
|
|
5,222,023
|
|
|
|
84,255
|
|
|
|
(21,793
|
)
|
|
|
383,717
|
|
|
|
(1,209,017
|
)
|
|
|
2,612
|
|
|
|
4,461,797
|
|
|
Other
|
|
|
402,252
|
|
|
|
393,659
|
|
|
|
(3,153
|
)
|
|
|
(276,264
|
)
|
|
|
(83,965
|
)
|
|
|
344
|
|
|
|
432,873
|
|
|
Construction in progress
|
|
|
423,303
|
|
|
|
324,251
|
|
|
|
(6,848
|
)
|
|
|
(178,406
|
)
|
|
|
—
|
|
|
|
3,439
|
|
|
|
565,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,442,280
|
|
|
|
816,522
|
|
|
|
(43,293
|
)
|
|
|
(33,139
|
)
|
|
|
(1,344,475
|
)
|
|
|
6,395
|
|
|
|
6,844,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Composed of property and equipment acquired in connection with business combination.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending
balance
|
|
|
Land
|
|
W
|
448,255
|
|
|
|
3,122
|
|
|
|
(334
|
)
|
|
|
30,181
|
|
|
|
—
|
|
|
|
481,224
|
|
|
Buildings
|
|
|
568,874
|
|
|
|
1,052
|
|
|
|
(4,132
|
)
|
|
|
22,000
|
|
|
|
(26,200
|
)
|
|
|
561,594
|
|
|
Structures
|
|
|
350,915
|
|
|
|
3,462
|
|
|
|
(57
|
)
|
|
|
12,651
|
|
|
|
(25,623
|
)
|
|
|
341,348
|
|
|
Machinery
|
|
|
5,277,929
|
|
|
|
85,111
|
|
|
|
(10,172
|
)
|
|
|
802,952
|
|
|
|
(1,202,684
|
)
|
|
|
4,953,136
|
|
|
Other
|
|
|
430,478
|
|
|
|
580,839
|
|
|
|
(12,589
|
)
|
|
|
(456,621
|
)
|
|
|
(83,942
|
)
|
|
|
458,165
|
|
|
Construction in progress
|
|
|
629,455
|
|
|
|
361,941
|
|
|
|
(1,011
|
)
|
|
|
(477,454
|
)
|
|
|
—
|
|
|
|
512,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,705,906
|
|
|
|
1,035,527
|
|
|
|
(28,295
|
)
|
|
|
(66,291
|
)
|
|
|
(1,338,449
|
)
|
|
|
7,308,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Goodwill as of September 30, 2016 and December 31, 2015 is as
follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Goodwill related to acquisition of Shinsegi Telecom, Inc.
|
|
W
|
1,306,236
|
|
|
|
1,306,236
|
|
|
|
(1)
|
Changes in intangible assets for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Others(*)
|
|
|
Ending
balance
|
|
|
Frequency usage rights
|
|
W
|
1,103,517
|
|
|
|
1,254,664
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(220,514
|
)
|
|
|
—
|
|
|
|
2,137,667
|
|
|
Land usage rights
|
|
|
11,695
|
|
|
|
995
|
|
|
|
(50
|
)
|
|
|
—
|
|
|
|
(3,307
|
)
|
|
|
—
|
|
|
|
9,333
|
|
|
Industrial rights
|
|
|
11,828
|
|
|
|
3,598
|
|
|
|
(120
|
)
|
|
|
—
|
|
|
|
(3,261
|
)
|
|
|
202
|
|
|
|
12,247
|
|
|
Facility usage rights
|
|
|
16,486
|
|
|
|
1,013
|
|
|
|
(4
|
)
|
|
|
72
|
|
|
|
(1,919
|
)
|
|
|
—
|
|
|
|
15,648
|
|
|
Memberships
|
|
|
61,512
|
|
|
|
118
|
|
|
|
(1,267
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
60,363
|
|
|
Other
|
|
|
561,031
|
|
|
|
25,870
|
|
|
|
(359
|
)
|
|
|
41,946
|
|
|
|
(158,414
|
)
|
|
|
25,676
|
|
|
|
495,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,766,069
|
|
|
|
1,286,258
|
|
|
|
(1,800
|
)
|
|
|
42,018
|
|
|
|
(387,415
|
)
|
|
|
25,878
|
|
|
|
2,731,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Composed of intangible assets acquired in connection with business combination.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Ending
balance
|
|
|
Frequency usage rights
|
|
W
|
1,384,044
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(210,395
|
)
|
|
|
1,173,649
|
|
|
Land usage rights
|
|
|
14,016
|
|
|
|
1,592
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(3,625
|
)
|
|
|
11,982
|
|
|
Industrial rights
|
|
|
10,583
|
|
|
|
3,507
|
|
|
|
(2
|
)
|
|
|
—
|
|
|
|
(2,938
|
)
|
|
|
11,150
|
|
|
Facility usage rights
|
|
|
15,843
|
|
|
|
1,059
|
|
|
|
(23
|
)
|
|
|
293
|
|
|
|
(1,912
|
)
|
|
|
15,260
|
|
|
Memberships
|
|
|
63,465
|
|
|
|
62
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63,527
|
|
|
Other
|
|
|
440,218
|
|
|
|
12,987
|
|
|
|
(7
|
)
|
|
|
74,217
|
|
|
|
(132,109
|
)
|
|
|
395,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,928,169
|
|
|
|
19,207
|
|
|
|
(33
|
)
|
|
|
74,510
|
|
|
|
(350,979
|
)
|
|
|
1,670,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Intangible Assets, Continued
|
|
|
(2)
|
The carrying amount and residual useful lives of frequency usage rights as of September 30, 2016 are as follows, all of which are amortized on a straight-line basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
|
|
Description
|
|
Commencement
of amortization
|
|
Completion of
amortization
|
|
W-CDMA
license
|
|
W
|
31,062
|
|
|
Frequency usage rights relating to
W-CDMA
service
|
|
Dec. 2003
|
|
Dec. 2016
|
|
W-CDMA
license
|
|
|
4,078
|
|
|
Frequency usage rights relating to
W-CDMA
service
|
|
Oct. 2010
|
|
Dec. 2016
|
|
800MHz license
|
|
|
192,584
|
|
|
Frequency usage rights relating to CDMA and LTE service
|
|
Jul. 2011
|
|
Jun. 2021
|
|
1.8GHz license
|
|
|
659,505
|
|
|
Frequency usage rights relating to LTE service
|
|
Sep. 2013
|
|
Dec. 2021
|
|
WiBro license
|
|
|
5,893
|
|
|
WiBro service
|
|
Mar. 2012
|
|
Mar. 2019
|
|
2.6GHz license
|
|
|
1,244,545
|
|
|
Frequency usage rights relating to LTE service
|
|
Sep. 2016
|
|
Dec. 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,137,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.
|
Borrowings and Debentures
|
|
|
(1)
|
There are no short-term borrowings as of September 30, 2016. Short-term borrowings as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual interest
rate (%)
|
|
|
Maturity
|
|
December 31,
2015
|
|
|
Kookmin Bank
|
|
|
2.47
|
|
|
Jan. 21, 2016
|
|
W
|
40,000
|
|
|
Commercial Papers
|
|
|
1.84
|
|
|
Jan. 14, 2016
|
|
|
190,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
230,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Long-term borrowings as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of U.S. dollars)
|
|
|
Lender
|
|
Annual interest
rate (%)
|
|
|
Maturity
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Export Kreditnamnden(*)
|
|
|
1.70
|
|
|
|
Apr. 29, 2022
|
|
|
W
|
75,706
|
|
|
|
87,685
|
|
|
|
|
|
|
|
|
|
|
|
|
(USD
|
69,056
|
)
|
|
(USD
|
74,817
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less present value discount
|
|
|
|
|
|
|
|
|
|
|
(1,567
|
)
|
|
|
(2,124
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,139
|
|
|
|
85,561
|
|
|
Less current installments
|
|
|
|
|
|
|
|
|
|
|
(12,338
|
)
|
|
|
(13,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
61,801
|
|
|
|
72,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Prior to 2015, the Company obtained long-term borrowings from Export Kreditnamnden, an export credit agency. The long-term borrowings are repaid by installments on an annual basis from 2014 to 2022.
|
20
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
11.
|
Borrowings and Debentures, Continued
|
|
|
(3)
|
Debentures as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars, and thousands of other currencies)
|
|
|
|
|
Purpose
|
|
Maturity
|
|
|
Annual
interest rate
(%)
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
|
2016
|
|
|
|
5.00
|
|
|
W
|
—
|
|
|
|
200,000
|
|
|
Unsecured private bonds
|
|
Other fund
|
|
|
2018
|
|
|
|
5.00
|
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
|
|
5.54
|
|
|
|
—
|
|
|
|
40,000
|
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
|
|
5.92
|
|
|
|
—
|
|
|
|
230,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
|
2016
|
|
|
|
3.95
|
|
|
|
110,000
|
|
|
|
110,000
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
|
|
4.22
|
|
|
|
190,000
|
|
|
|
190,000
|
|
|
Unsecured private bonds
|
|
Operating and refinancing fund
|
|
|
2019
|
|
|
|
3.24
|
|
|
|
170,000
|
|
|
|
170,000
|
|
|
Unsecured private bonds
|
|
|
|
2022
|
|
|
|
3.30
|
|
|
|
140,000
|
|
|
|
140,000
|
|
|
Unsecured private bonds
|
|
|
|
2032
|
|
|
|
3.45
|
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
|
2023
|
|
|
|
3.03
|
|
|
|
230,000
|
|
|
|
230,000
|
|
|
Unsecured private bonds
|
|
|
|
2033
|
|
|
|
3.22
|
|
|
|
130,000
|
|
|
|
130,000
|
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
|
|
3.30
|
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
|
|
3.64
|
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2029
|
|
|
|
4.72
|
|
|
|
54,366
|
|
|
|
54,695
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
|
2019
|
|
|
|
2.53
|
|
|
|
160,000
|
|
|
|
160,000
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
|
|
2.66
|
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
|
|
2.82
|
|
|
|
190,000
|
|
|
|
190,000
|
|
|
Unsecured private bonds
|
|
Operating and refinancing fund
|
|
|
2022
|
|
|
|
2.40
|
|
|
|
100,000
|
|
|
|
100,000
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
|
|
2.49
|
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
|
|
2.61
|
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
|
2018
|
|
|
|
1.89
|
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
|
|
2.66
|
|
|
|
70,000
|
|
|
|
70,000
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
|
|
2.82
|
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds(*2,3)
|
|
|
|
2030
|
|
|
|
3.40
|
|
|
|
—
|
|
|
|
50,485
|
|
|
Unsecured private bonds
|
|
Operating and refinancing fund
|
|
|
2018
|
|
|
|
2.07
|
|
|
|
80,000
|
|
|
|
80,000
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
|
|
2.55
|
|
|
|
100,000
|
|
|
|
100,000
|
|
|
Unsecured private bonds
|
|
|
|
2035
|
|
|
|
2.75
|
|
|
|
70,000
|
|
|
|
70,000
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2030
|
|
|
|
3.10
|
|
|
|
50,113
|
|
|
|
50,524
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
|
2019
|
|
|
|
1.65
|
|
|
|
70,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
|
|
1.80
|
|
|
|
100,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2026
|
|
|
|
2.08
|
|
|
|
90,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2036
|
|
|
|
2.24
|
|
|
|
80,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
|
|
1.62
|
|
|
|
50,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
|
|
1.71
|
|
|
|
50,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2026
|
|
|
|
1.97
|
|
|
|
120,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2031
|
|
|
|
2.17
|
|
|
|
50,000
|
|
|
|
—
|
|
21
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
11.
|
Borrowings and Debentures, Continued
|
|
|
(3)
|
Debentures as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars, and thousands of other currencies)
|
|
|
|
|
Purpose
|
|
|
Maturity
|
|
|
Annual
interest rate
(%)
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Unsecured global bonds
|
|
|
|
|
|
|
2027
|
|
|
|
6.63
|
|
|
|
438,520
|
|
|
|
468,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(USD
|
400,000
|
)
|
|
(USD
|
400,000
|
)
|
|
Unsecured private Swiss bonds
|
|
|
|
|
|
|
2017
|
|
|
|
1.75
|
|
|
|
340,518
|
|
|
|
355,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(CHF
|
300,000
|
)
|
|
(CHF
|
300,000
|
)
|
|
Unsecured global bonds
|
|
|
|
|
|
|
2018
|
|
|
|
2.13
|
|
|
|
767,410
|
|
|
|
820,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(USD
|
700,000
|
)
|
|
(USD
|
700,000
|
)
|
|
Unsecured private Australian bonds
|
|
|
|
|
|
|
2017
|
|
|
|
4.75
|
|
|
|
251,124
|
|
|
|
255,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(AUD
|
300,000
|
)
|
|
(AUD
|
300,000
|
)
|
|
Floating rate notes (*1)
|
|
|
|
|
|
|
2020
|
|
|
|
3M LIBOR + 0.88
|
|
|
|
328,890
|
|
|
|
351,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(USD
|
300,000
|
)
|
|
(USD
|
300,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,600,941
|
|
|
|
5,638,051
|
|
|
Less discounts on bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,761
|
)
|
|
|
(24,926
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,579,180
|
|
|
|
5,613,125
|
|
|
Less current installments of bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(450,147
|
)
|
|
|
(579,630
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,129,033
|
|
|
|
5,033,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
As of September 30, 2016, 3M LIBOR rate is 0.85%.
|
|
(*2)
|
The Company eliminated a measurement inconsistency of accounting profit or loss between the bonds and related derivatives by designating the structured bonds as financial liabilities at fair value through profit or
loss.
|
|
(*3)
|
The principal amount and the fair value of the structured bonds that were designated as financial liabilities at fair value through profit or loss as of December 31, 2015 were
W
50,000 million and
W
50,485 million, respectively. The bond was early redeemed during the nine-month period ended September 30, 2016.
|
The carrying amount of financial liabilities designated at fair value through profit or loss exceeds the principal amount required to pay at
maturity by
W
4,479 million as of September 30, 2016.
22
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
12.
|
Long-term Payables - Other
|
|
|
(1)
|
As of September 30, 2016 and December 31, 2015, details of long-term payables – other which consist of payables related to the acquisition of
W-CDMA
and LTE
licenses for 2.3GHz and 1.8GHz frequencies are as follows (See Note 10):
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Long-term payables - other
|
|
W
|
1,586,747
|
|
|
|
709,888
|
|
|
|
|
|
|
|
|
|
|
|
|
Present value discount on long-term payables – other
|
|
|
(102,428
|
)
|
|
|
(38,739
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,484,319
|
|
|
|
671,149
|
|
|
Less current installments of long-term payables – other
|
|
|
(215,769
|
)
|
|
|
(120,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount at period end
|
|
W
|
1,268,550
|
|
|
|
550,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The repayment schedule of the principal amount of long-term payables related to acquisition of
W-CDMA
and LTE licenses as of September 30, 2016 is as follows:
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Amount
|
|
|
Less than 1 year
|
|
W
|
217,592
|
|
|
1~3 years
|
|
|
435,184
|
|
|
3~5 years
|
|
|
435,184
|
|
|
More than 5 years
|
|
|
498,787
|
|
|
|
|
|
|
|
|
|
|
W
|
1,586,747
|
|
|
|
|
|
|
|
23
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Changes in provisions for the nine-month periods ended September 30, 2016 and 2015 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
As of September 30,
2016
|
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-
current
|
|
|
Provision for installment of handset subsidy
|
|
W
|
5,670
|
|
|
|
—
|
|
|
|
(1,019
|
)
|
|
|
—
|
|
|
|
4,651
|
|
|
|
1,213
|
|
|
|
3,438
|
|
|
Provision for restoration
|
|
|
50,459
|
|
|
|
3,047
|
|
|
|
(559
|
)
|
|
|
(863
|
)
|
|
|
52,084
|
|
|
|
28,845
|
|
|
|
23,239
|
|
|
Emission allowance
|
|
|
1,477
|
|
|
|
1,016
|
|
|
|
(169
|
)
|
|
|
—
|
|
|
|
2,324
|
|
|
|
2,324
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
57,606
|
|
|
|
4,063
|
|
|
|
(1,747
|
)
|
|
|
(863
|
)
|
|
|
59,059
|
|
|
|
32,382
|
|
|
|
26,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
As of September 30,
2015
|
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-
current
|
|
|
Provision for installment of handset subsidy
|
|
W
|
26,799
|
|
|
|
—
|
|
|
|
(4,288
|
)
|
|
|
(17,583
|
)
|
|
|
4,928
|
|
|
|
2,951
|
|
|
|
1,977
|
|
|
|
|
|
|
|
|
|
|
|
Provision for restoration
|
|
|
51,333
|
|
|
|
2,444
|
|
|
|
(479
|
)
|
|
|
(3,431
|
)
|
|
|
49,867
|
|
|
|
33,029
|
|
|
|
16,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
78,132
|
|
|
|
2,444
|
|
|
|
(4,767
|
)
|
|
|
(21,014
|
)
|
|
|
54,795
|
|
|
|
35,980
|
|
|
|
18,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has provided handset subsidy to subscribers who purchase handsets on an installment basis and
recognized a provision for subsidy amounts which the Company is expected to pay in future periods.
|
14.
|
Defined Benefit Liabilities
|
|
|
(1)
|
Details of defined benefit liabilities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Present value of defined benefit obligations
|
|
W
|
250,776
|
|
|
|
212,139
|
|
|
Fair value of plan assets
|
|
|
(225,056
|
)
|
|
|
(208,133
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
25,720
|
|
|
|
4,006
|
|
|
|
|
|
|
|
|
|
|
|
24
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
14.
|
Defined Benefit Liabilities, Continued
|
|
|
(2)
|
Changes in defined benefit obligations for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Beginning balance
|
|
W
|
212,139
|
|
|
|
195,130
|
|
|
Current service cost
|
|
|
27,961
|
|
|
|
26,171
|
|
|
Interest cost
|
|
|
4,212
|
|
|
|
4,072
|
|
|
Remeasurement:
|
|
|
|
|
|
|
|
|
|
- Demographic assumption
|
|
|
—
|
|
|
|
16
|
|
|
- Adjustment based on experience
|
|
|
6,925
|
|
|
|
4,309
|
|
|
Benefit paid
|
|
|
(4,192
|
)
|
|
|
(22,194
|
)
|
|
Others
|
|
|
3,731
|
|
|
|
2,126
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
250,776
|
|
|
|
209,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Changes in plan assets for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Beginning balance
|
|
W
|
208,133
|
|
|
|
179,575
|
|
|
Interest income
|
|
|
3,976
|
|
|
|
3,769
|
|
|
Actuarial loss
|
|
|
(5,040
|
)
|
|
|
(2,368
|
)
|
|
Contributions
|
|
|
19,000
|
|
|
|
25,000
|
|
|
Benefit paid
|
|
|
(3,766
|
)
|
|
|
(20,117
|
)
|
|
Others
|
|
|
2,753
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
225,056
|
|
|
|
185,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Expenses recognized in profit and loss for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Current service cost
|
|
W
|
27,961
|
|
|
|
26,171
|
|
|
Net Interest cost
|
|
|
236
|
|
|
|
303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
28,197
|
|
|
|
26,474
|
|
|
|
|
|
|
|
|
|
|
|
The above costs are recognized in labor cost and research and development.
25
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
15.
|
Derivative Instruments
|
|
|
(1)
|
Currency and interest rate swap contracts under cash flow hedge accounting as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of foreign currencies)
|
|
Borrowing
date
|
|
Hedging Instrument (Hedged item)
|
|
Hedged risk
|
|
Contract
type
|
|
Financial
institution
|
|
Duration of
contract
|
|
Jul. 20, 2007
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 400,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Morgan Stanley and five other banks
|
|
Jul. 20, 2007 ~
Jul. 20, 2027
|
|
Jun. 12, 2012
|
|
Fixed-to-fixed
cross currency swap (Swiss Franc denominated bonds with face value of CHF 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Citibank and four other banks
|
|
Jun. 12, 2012 ~ Jun.12, 2017
|
|
Nov. 1, 2012
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 700,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Barclays and eight other banks
|
|
Nov. 1, 2012 ~ May. 1, 2018
|
|
Jan. 17, 2013
|
|
Fixed-to-fixed
cross currency swap (Australia dollar denominated bonds with face value of AUD 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
BNP Paribas and three other banks
|
|
Jan. 17, 2013 ~ Nov. 17, 2017
|
|
Mar. 7, 2013
|
|
Floating-to-fixed
cross currency interest rate swap
(U.S. dollar denominated bonds with face value of USD 300,000)
|
|
Foreign currency risk and interest rate risk
|
|
Currency and interest rate swap
|
|
DBS Bank
|
|
Mar. 7, 2013 ~ Mar. 7, 2020
|
|
Dec. 16, 2013
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 69,056)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Deutsche Bank
|
|
Dec.16, 2013 ~ Apr. 29, 2022
|
26
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
15.
|
Derivative Instruments, Continued
|
|
|
(2)
|
As of September 30, 2016, details of fair values of the above derivatives recorded in assets or liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of foreign currencies)
|
|
|
|
|
Fair value
|
|
|
|
|
Cash flow hedge
|
|
|
Held for
trading
|
|
|
Total
|
|
|
Hedging Instrument (Hedged item)
|
|
Accumulated
gain (loss) on
valuation of
derivatives
|
|
|
Tax
effect
|
|
|
Accumulated
foreign
currency
translations
(gain) loss
|
|
|
Others
(*)
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structured bond (face value of KRW 100,000)
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,292
|
|
|
|
9,292
|
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 400,000)
|
|
|
(58,972
|
)
|
|
|
(18,828
|
)
|
|
|
(18,707
|
)
|
|
|
129,806
|
|
|
|
—
|
|
|
W
|
33,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed
cross currency swap (Swiss Franc denominated bonds with face value of CHF 300,000)
|
|
W
|
(8,242
|
)
|
|
|
(2,631
|
)
|
|
|
(22,935
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(33,808
|
)
|
|
Non-current
liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 700,000)
|
|
|
(16,021
|
)
|
|
|
(5,115
|
)
|
|
|
3,947
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17,189
|
)
|
|
Floating-to-fixed
cross currency interest rate swap (U.S. dollar denominated bonds with face value of USD 300,000)
|
|
|
(9,009
|
)
|
|
|
(2,876
|
)
|
|
|
3,788
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,097
|
)
|
|
Fixed-to-fixed
long-term borrowings (U.S. dollar denominated bonds with face value of USD 69,056)
|
|
|
(3,592
|
)
|
|
|
(1,147
|
)
|
|
|
2,830
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,909
|
)
|
|
Fixed-to-fixed
cross currency swap (Australia dollar denominated bonds with face value of AUD 300,000)
|
|
|
3,512
|
|
|
|
1,121
|
|
|
|
(84,045
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(79,412
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(140,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Cash flow hedge accounting has been applied to the relevant contracts from May 12, 2010. Others represent gain on valuation of currency swap recognized in profit or loss prior to May 12, 2010, when the Company
started to apply hedge accounting to these contracts.
|
27
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
16.
|
Share Capital and Capital Surplus and Others
|
The Company’s outstanding share
capital consists entirely of common stocks with a par value of
W
500. The number of authorized, issued and outstanding common shares and capital surplus and others as of September 30, 2016 and December 31,
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Number of authorized shares
|
|
|
220,000,000
|
|
|
|
220,000,000
|
|
|
Number of issued shares(*)
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Share capital:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
W
|
44,639
|
|
|
|
44,639
|
|
|
Capital surplus and others:
|
|
|
|
|
|
|
|
|
|
Paid-in
surplus
|
|
|
2,915,887
|
|
|
|
2,915,887
|
|
|
Treasury stock (Note 17)
|
|
|
(2,260,626
|
)
|
|
|
(2,260,626
|
)
|
|
Hybrid bond (Note 18)
|
|
|
398,518
|
|
|
|
398,518
|
|
|
Others
|
|
|
(682,298
|
)
|
|
|
(684,333
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
371,481
|
|
|
|
369,446
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Prior to 2015, the Company retired shares of treasury stock which reduced its retained earnings before appropriation. As a result, the Company’s outstanding shares have decreased without change in the share
capital.
|
There were no changes in share capital for the nine-month period ended September 30, 2016 and the year ended
December 31, 2015 and details of shares outstanding as of September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Beginning
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
Disposal of treasury stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,692,824
|
)
|
|
|
1,692,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
8,116,551
|
|
|
|
72,629,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company acquired treasury stocks to provide stock dividends, merge
with Shinsegi Telecom, Inc. and SK IMT Co, Ltd., increase shareholder value and to stabilize its stock prices.
Treasury stocks as of
September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Number of shares
|
|
|
10,136,551
|
|
|
|
10,136,551
|
|
|
Amount
|
|
W
|
2,260,626
|
|
|
|
2,260,626
|
|
28
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Hybrid bonds classified as equity as of September 30, 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Type
|
|
Issuance date
|
|
Maturity
|
|
Annual
interest
rate (%)
|
|
|
Amount
|
|
|
Private hybrid bonds
|
|
Unsecured subordinated bearer bond
|
|
June 7, 2013
|
|
June 7, 2073(*1)
|
|
|
4.21
|
(*2)
|
|
W
|
400,000
|
|
|
Issuance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
398,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hybrid bonds issued by the Company are classified as equity as there is no contractual obligation for delivery
of financial assets to the bond holders. These are subordinated bonds which rank before common stocks in the event of a liquidation or reorganization of the Company.
|
(*1)
|
The Company has a right to extend the maturity under the same terms at issuance without any notice or announcement. The Company also has the right to defer interest payment at its sole discretion.
|
|
(*2)
|
Annual interest rate is calculated as yield rate of 5 year national bonds plus premium. According to
Step-up
clause, additional premium of 0.25% and 0.75%, respectively, after 10
years and 25 years from the issuance date are applied.
|
Retained earnings as of September 30, 2016 and December 31,
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Appropriated:
|
|
|
|
|
|
|
|
|
|
Legal reserve
|
|
W
|
22,320
|
|
|
|
22,320
|
|
|
Reserve for research & manpower development
|
|
|
60,001
|
|
|
|
87,301
|
|
|
Reserve for business expansion
|
|
|
9,871,138
|
|
|
|
9,671,138
|
|
|
Reserve for technology development
|
|
|
2,826,300
|
|
|
|
2,616,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,779,759
|
|
|
|
12,397,059
|
|
|
Unappropriated
|
|
|
906,195
|
|
|
|
1,021,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,685,954
|
|
|
|
13,418,603
|
|
|
|
|
|
|
|
|
|
|
|
29
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Details of reserves, net of taxes, as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Changes in unrealized fair value of
available-for-sale
financial assets
|
|
W
|
88,282
|
|
|
|
23,578
|
|
|
Changes in unrealized fair value of derivatives
|
|
|
(92,324
|
)
|
|
|
(76,806
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(4,042
|
)
|
|
|
(53,228
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Changes in reserves for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Unrealized
fair value
of
available-for-sale
financial assets
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Total
|
|
|
Balance at January 1, 2016
|
|
W
|
23,578
|
|
|
|
(76,806
|
)
|
|
|
(53,228
|
)
|
|
Changes
|
|
|
85,361
|
|
|
|
(20,473
|
)
|
|
|
64,888
|
|
|
Tax effect
|
|
|
(20,657
|
)
|
|
|
4,955
|
|
|
|
(15,702
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2016
|
|
W
|
88,282
|
|
|
|
(92,324
|
)
|
|
|
(4,042
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Unrealized
fair value
of
available-for-sale
financial assets
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Total
|
|
|
Balance at January 1, 2015
|
|
W
|
145,106
|
|
|
|
(78,208
|
)
|
|
|
66,898
|
|
|
Changes
|
|
|
(155,644
|
)
|
|
|
(16,891
|
)
|
|
|
(172,535
|
)
|
|
Tax effect
|
|
|
37,666
|
|
|
|
4,088
|
|
|
|
41,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2015
|
|
W
|
27,128
|
|
|
|
(91,011
|
)
|
|
|
(63,883
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
21.
|
Other Operating Expenses
|
Details of other operating expenses for the three and
nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Other Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communication
|
|
W
|
6,698
|
|
|
|
22,240
|
|
|
|
8,069
|
|
|
|
26,127
|
|
|
Utilities
|
|
|
57,956
|
|
|
|
158,353
|
|
|
|
57,242
|
|
|
|
152,502
|
|
|
Taxes and dues
|
|
|
7,235
|
|
|
|
16,542
|
|
|
|
7,466
|
|
|
|
16,974
|
|
|
Repair
|
|
|
54,105
|
|
|
|
155,965
|
|
|
|
54,217
|
|
|
|
145,708
|
|
|
Research and development
|
|
|
66,098
|
|
|
|
199,616
|
|
|
|
62,596
|
|
|
|
173,549
|
|
|
Training
|
|
|
5,487
|
|
|
|
15,478
|
|
|
|
7,055
|
|
|
|
17,217
|
|
|
Bad debt for accounts receivable - trade
|
|
|
2,474
|
|
|
|
14,198
|
|
|
|
4,123
|
|
|
|
27,735
|
|
|
Other
|
|
|
12,998
|
|
|
|
36,008
|
|
|
|
9,862
|
|
|
|
30,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
213,051
|
|
|
|
618,400
|
|
|
|
210,630
|
|
|
|
590,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22.
|
Other
Non-operating
Income and Expenses
|
Details
of other
non-operating
income and expenses for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Other
Non-operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property and equipment and intangible assets
|
|
W
|
1,663
|
|
|
|
2,533
|
|
|
|
1,137
|
|
|
|
2,075
|
|
|
Others
|
|
|
5,076
|
|
|
|
41,534
|
|
|
|
2,264
|
|
|
|
8,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,739
|
|
|
|
44,067
|
|
|
|
3,401
|
|
|
|
10,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Non-operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on disposal of property and equipment and intangible assets
|
|
W
|
18,080
|
|
|
|
28,050
|
|
|
|
11,340
|
|
|
|
13,396
|
|
|
Donations
|
|
|
17,444
|
|
|
|
58,091
|
|
|
|
13,155
|
|
|
|
36,717
|
|
|
Bad debt for accounts receivable - other
|
|
|
4,196
|
|
|
|
7,609
|
|
|
|
3,487
|
|
|
|
7,572
|
|
|
Others
|
|
|
4,315
|
|
|
|
6,108
|
|
|
|
1,812
|
|
|
|
33,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
44,035
|
|
|
|
99,858
|
|
|
|
29,794
|
|
|
|
91,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
23.
|
Finance Income and Costs
|
|
|
(1)
|
Details of finance income and costs for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Finance Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
9,644
|
|
|
|
21,862
|
|
|
|
4,785
|
|
|
|
15,946
|
|
|
Dividends
|
|
|
16,591
|
|
|
|
113,024
|
|
|
|
143,315
|
|
|
|
200,046
|
|
|
Gain on foreign currency transactions
|
|
|
1,444
|
|
|
|
7,045
|
|
|
|
4,935
|
|
|
|
9,418
|
|
|
Gain on foreign currency translation
|
|
|
—
|
|
|
|
43
|
|
|
|
688
|
|
|
|
1,769
|
|
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
1,048
|
|
|
|
1,225
|
|
|
|
—
|
|
|
|
5,188
|
|
|
Gain relating to financial assets at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
857
|
|
|
|
168
|
|
|
Gain on disposal of long-term investment securities
|
|
|
2,476
|
|
|
|
4,227
|
|
|
|
—
|
|
|
|
2,828
|
|
|
Gain on valuation of derivatives
|
|
|
1,024
|
|
|
|
4,708
|
|
|
|
3,603
|
|
|
|
4,633
|
|
|
Gain on disposal of accounts receivable - trade
|
|
|
4,853
|
|
|
|
12,708
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
37,080
|
|
|
|
164,842
|
|
|
|
158,183
|
|
|
|
239,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
62,040
|
|
|
|
178,747
|
|
|
|
60,134
|
|
|
|
181,266
|
|
|
Loss on foreign currency transactions
|
|
|
5,060
|
|
|
|
10,100
|
|
|
|
1,151
|
|
|
|
8,178
|
|
|
Loss on foreign currency translation
|
|
|
1,588
|
|
|
|
1,860
|
|
|
|
—
|
|
|
|
8
|
|
|
Loss on disposal of long-term investment securities
|
|
|
108
|
|
|
|
152
|
|
|
|
—
|
|
|
|
2
|
|
|
Loss on settlement of derivatives
|
|
|
1,518
|
|
|
|
1,837
|
|
|
|
—
|
|
|
|
4,517
|
|
|
Loss relating to financial assets at fair value through profit or loss
|
|
|
532
|
|
|
|
910
|
|
|
|
—
|
|
|
|
—
|
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
4,676
|
|
|
|
4,850
|
|
|
Other finance costs
|
|
|
—
|
|
|
|
815
|
|
|
|
37,375
|
|
|
|
37,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
70,846
|
|
|
|
194,421
|
|
|
|
103,336
|
|
|
|
236,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
23.
|
Finance Income and Costs, Continued
|
|
|
(2)
|
Details of interest income included in finance income for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Interest income on cash equivalents and deposits
|
|
W
|
1,908
|
|
|
|
5,658
|
|
|
|
2,075
|
|
|
|
7,351
|
|
|
Interest income on installment receivables and others
|
|
|
7,736
|
|
|
|
16,204
|
|
|
|
2,710
|
|
|
|
8,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,644
|
|
|
|
21,862
|
|
|
|
4,785
|
|
|
|
15,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of interest expenses included in finance costs for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Interest expenses on borrowings
|
|
W
|
922
|
|
|
|
4,193
|
|
|
|
2,842
|
|
|
|
12,853
|
|
|
Interest expenses on debentures
|
|
|
49,763
|
|
|
|
147,017
|
|
|
|
48,297
|
|
|
|
139,650
|
|
|
Others
|
|
|
11,355
|
|
|
|
27,537
|
|
|
|
8,995
|
|
|
|
28,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
62,040
|
|
|
|
178,747
|
|
|
|
60,134
|
|
|
|
181,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Details of impairment losses for financial assets for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Accounts receivable - trade
|
|
W
|
2,475
|
|
|
|
14,198
|
|
|
|
4,123
|
|
|
|
27,735
|
|
|
Other receivables
|
|
|
4,196
|
|
|
|
7,609
|
|
|
|
3,487
|
|
|
|
7,572
|
|
|
Available-for-sale
financial assets
|
|
|
—
|
|
|
|
815
|
|
|
|
37,375
|
|
|
|
37,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,671
|
|
|
|
22,622
|
|
|
|
44,985
|
|
|
|
72,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense was calculated by considering current tax expense
adjusted to changes in estimates related to prior periods, deferred tax expenses by origination and reversal of temporary differences.
33
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Basic earnings per share
|
|
|
1)
|
Basic earnings per share for the three and nine-month periods ended September 30, 2016 and 2015 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Profit for the period
|
|
W
|
324,583
|
|
|
|
990,933
|
|
|
|
361,591
|
|
|
|
889,374
|
|
|
Interest on hybrid bond
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
Profit for the period on common shares
|
|
|
324,583
|
|
|
|
982,513
|
|
|
|
361,591
|
|
|
|
880,954
|
|
|
Weighted average number of common shares outstanding
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
72,629,160
|
|
|
|
71,637,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in won)
|
|
W
|
4,597
|
|
|
|
13,915
|
|
|
|
4,979
|
|
|
|
12,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
The weighted average number of common shares outstanding for the three and nine-month periods ended September 30, 2016 and 2015 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
shares)
|
|
|
|
|
Weighted number of shares
|
|
|
|
|
Number of
shares
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Issued common shares at January 1, 2016
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Weighted average number of treasury stock
|
|
|
(10,136,551
|
)
|
|
|
(10,136,551
|
)
|
|
|
(10,136,551
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding at September 30, 2016
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
|
|
|
Weighted number of shares
|
|
|
|
|
Number of
shares
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Issued common shares at January 1, 2015
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Weighted average number of treasury stock
|
|
|
(8,116,551
|
)
|
|
|
(8,116,551
|
)
|
|
|
(9,108,682
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding at September 30, 2015
|
|
|
72,629,160
|
|
|
|
72,629,160
|
|
|
|
71,637,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Diluted earnings per share
|
For the nine-month periods ended September 30, 2016 and 2015,
there were no potentially dilutive shares. Therefore, diluted earnings per share for the nine-month periods ended September 30, 2016 and 2015 are the same as basic earnings per share.
34
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
26.
|
Categories of Financial Instruments
|
|
|
(1)
|
Financial assets by categories as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
|
|
Financial
assets at
fair value
through
profit or
loss
|
|
|
Available-
for-sale
financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Cash and cash equivalents
|
|
W
|
—
|
|
|
|
—
|
|
|
|
326,889
|
|
|
|
—
|
|
|
|
326,889
|
|
|
Financial instruments
|
|
|
—
|
|
|
|
—
|
|
|
|
116,602
|
|
|
|
—
|
|
|
|
116,602
|
|
|
Short-term investment securities
|
|
|
—
|
|
|
|
202,513
|
|
|
|
—
|
|
|
|
—
|
|
|
|
202,513
|
|
|
Long-term investment securities(*1)
|
|
|
6,163
|
|
|
|
797,680
|
|
|
|
—
|
|
|
|
—
|
|
|
|
803,843
|
|
|
Accounts receivable - trade
|
|
|
—
|
|
|
|
—
|
|
|
|
1,608,582
|
|
|
|
—
|
|
|
|
1,608,582
|
|
|
Loans and other receivables(*2)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,239,923
|
|
|
|
—
|
|
|
|
1,239,923
|
|
|
Derivative financial assets
|
|
|
9,292
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,299
|
|
|
|
42,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,455
|
|
|
|
1,000,193
|
|
|
|
3,291,996
|
|
|
|
33,299
|
|
|
|
4,340,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Financial
assets at
fair value
through
profit or
loss
|
|
|
Available-
for-sale
financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Cash and cash equivalents
|
|
W
|
—
|
|
|
|
—
|
|
|
|
431,666
|
|
|
|
—
|
|
|
|
431,666
|
|
|
Financial instruments
|
|
|
—
|
|
|
|
—
|
|
|
|
131,562
|
|
|
|
—
|
|
|
|
131,562
|
|
|
Short-term investment securities
|
|
|
—
|
|
|
|
92,262
|
|
|
|
—
|
|
|
|
—
|
|
|
|
92,262
|
|
|
Long-term investment securities(*1)
|
|
|
7,073
|
|
|
|
719,432
|
|
|
|
—
|
|
|
|
—
|
|
|
|
726,505
|
|
|
Accounts receivable - trade
|
|
|
—
|
|
|
|
—
|
|
|
|
1,528,751
|
|
|
|
—
|
|
|
|
1,528,751
|
|
|
Loans and other receivables(*2)
|
|
|
—
|
|
|
|
—
|
|
|
|
521,723
|
|
|
|
—
|
|
|
|
521,723
|
|
|
Derivative financial assets
|
|
|
6,277
|
|
|
|
—
|
|
|
|
—
|
|
|
|
133,646
|
|
|
|
139,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
13,350
|
|
|
|
811,694
|
|
|
|
2,613,702
|
|
|
|
133,646
|
|
|
|
3,572,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Long-term investment securities were designated as financial assets at fair value through profit of loss since the embedded derivative (conversion right option) could not be separately measured.
|
35
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
26.
|
Categories of Financial Instruments, Continued
|
|
|
(1)
|
Financial assets by categories as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
(*2)
|
Details of loans and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Short-term loans
|
|
W
|
59,069
|
|
|
|
47,741
|
|
|
Accounts receivable – other
|
|
|
736,775
|
|
|
|
264,741
|
|
|
Accrued income
|
|
|
8,810
|
|
|
|
7,505
|
|
|
Long-term loans
|
|
|
34,309
|
|
|
|
35,080
|
|
|
Long-term receivables - other
|
|
|
226,168
|
|
|
|
—
|
|
|
Guarantee deposits
|
|
|
174,792
|
|
|
|
166,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,239,923
|
|
|
|
521,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Financial liabilities by categories as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
|
|
Financial
liabilities at
fair value
through
profit or
loss
|
|
|
Financial
liabilities
measured at
amortized
cost
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Derivative financial liabilities
|
|
W
|
—
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
140,415
|
|
|
Borrowings
|
|
|
—
|
|
|
|
74,139
|
|
|
|
—
|
|
|
|
74,139
|
|
|
Debentures (*1)
|
|
|
104,479
|
|
|
|
5,474,701
|
|
|
|
—
|
|
|
|
5,579,180
|
|
|
Accounts payable - other and others (*2)
|
|
|
—
|
|
|
|
3,095,966
|
|
|
|
—
|
|
|
|
3,095,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
104,479
|
|
|
|
8,644,806
|
|
|
|
140,415
|
|
|
|
8,889,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Financial
liabilities at
fair value
through
profit or
loss
|
|
|
Financial
liabilities
measured at
amortized
cost
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Derivative financial liabilities
|
|
W
|
—
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
89,296
|
|
|
Borrowings
|
|
|
—
|
|
|
|
315,561
|
|
|
|
—
|
|
|
|
315,561
|
|
|
Debentures (*1)
|
|
|
155,704
|
|
|
|
5,457,421
|
|
|
|
—
|
|
|
|
5,613,125
|
|
|
Accounts payable – other and others (*2)
|
|
|
—
|
|
|
|
2,171,141
|
|
|
|
—
|
|
|
|
2,171,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
155,704
|
|
|
|
7,944,123
|
|
|
|
89,296
|
|
|
|
8,189,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
26.
|
Categories of Financial Instruments, Continued
|
|
|
(2)
|
Financial liabilities by categories as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
(*1)
|
Bonds classified as financial liabilities at fair value through profit or loss as of September 30, 2016 and December 31, 2015 are structured bonds and they were designated as financial liabilities at fair
value through profit or loss in order to eliminate a measurement inconsistency with the related derivatives.
|
|
|
(*2)
|
Details of accounts payable and other payables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Accounts payable - other
|
|
W
|
934,322
|
|
|
|
927,170
|
|
|
Withholdings
|
|
|
50
|
|
|
|
—
|
|
|
Accrued expenses
|
|
|
642,034
|
|
|
|
540,770
|
|
|
Current installments of long-term
payables - other
|
|
|
215,769
|
|
|
|
120,185
|
|
|
Long-term payables - other
|
|
|
1,268,550
|
|
|
|
550,964
|
|
|
Other
non-current
liabilities
|
|
|
35,241
|
|
|
|
32,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,095,966
|
|
|
|
2,171,141
|
|
|
|
|
|
|
|
|
|
|
|
|
27.
|
Financial Risk Management
|
|
|
(1)
|
Financial risk management
|
The Company is exposed to credit risk, liquidity risk and market
risk. Market risk is the risk related to the changes in market prices, such as foreign exchange rates, interest rates and equity prices. The Company implements a risk management system to monitor and manage these specific risks.
The Company’s financial assets consist of cash and cash equivalents, financial instruments,
available-for-sale
financial assets, trade and other receivables. Financial liabilities consist of trade and other payables, borrowings, and debentures.
1) Market risk
(i) Currency risk
Currency risk occurs on forecasted transaction and recognized assets and liabilities which are denominated in a currency other than the
functional currency of the Company. The Company manages currency risk by using currency forward, etc., if needed, to hedge currency risk on business transactions.
37
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
1) Market risk, Continued
(i) Currency risk, Continued
Foreign currency monetary assets and liabilities as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of foreign currencies)
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
Foreign
currencies
|
|
|
Won
equivalent
|
|
|
Foreign
currencies
|
|
|
Won
equivalent
|
|
|
USD
|
|
|
57,767
|
|
|
W
|
63,330
|
|
|
|
1,461,787
|
|
|
W
|
1,602,561
|
|
|
EUR
|
|
|
15,078
|
|
|
|
18,551
|
|
|
|
—
|
|
|
|
—
|
|
|
JPY
|
|
|
68,701
|
|
|
|
744
|
|
|
|
—
|
|
|
|
—
|
|
|
AUD
|
|
|
—
|
|
|
|
—
|
|
|
|
299,401
|
|
|
|
250,623
|
|
|
CHF
|
|
|
—
|
|
|
|
—
|
|
|
|
299,697
|
|
|
|
340,174
|
|
|
Others
|
|
|
—
|
|
|
|
1,514
|
|
|
|
—
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
84,139
|
|
|
|
|
|
|
W
|
2,193,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition, the Company has entered into cross currency swaps to hedge against currency risk related to
foreign currency borrowings and debentures. (See Note 15)
As of September 30, 2016, effects on income (loss) before income tax as a
result of change in exchange rate by 10% are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
If increased by 10%
|
|
|
If decreased by 10%
|
|
|
USD
|
|
W
|
6,031
|
|
|
|
(6,031
|
)
|
|
EUR
|
|
|
1,855
|
|
|
|
(1,855
|
)
|
|
JPY
|
|
|
74
|
|
|
|
(74
|
)
|
|
Others
|
|
|
153
|
|
|
|
(153
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,113
|
|
|
|
(8,113
|
)
|
|
|
|
|
|
|
|
|
|
|
(ii) Equity price risk
The Company has equity securities which include listed and
non-listed
securities for its liquidity
management and operating purpose. As of September 30, 2016,
available-for-sale
equity instruments measured at fair value amounts to
W
715,744 million.
(iii) Interest rate risk
Since the Company’s interest bearing assets are mostly fixed-interest bearing assets, the Company’s revenue and operating cash flows
are not influenced by the changes in market interest rates. However, the Company still has interest rate risk arising from borrowings and debentures.
Accordingly, the Company performs various analysis of interest rate risk to reduce interest rate risk and to optimize its financing. To
minimize risks from changes in interest rates, the Company takes various measures such as refinancing, renewal, alternative financing and hedging.
38
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
1) Market risk, Continued
(iii) Interest rate risk, Continued
The Company’s interest rate risk arises from floating-rate borrowings and payables. As of September 30, 2016, floating-rate
debentures amount to
W
328,890 million and the Company has entered into interest rate swaps to hedge interest rate risk related to floating-rate borrowings and debentures (See Note 15). Therefore, income before
income taxes for the nine-month period ended September 30, 2016 would not have been changed by the interest expense from floating-rate borrowings and debentures.
2) Credit risk
Credit risk is
the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet his/her contractual obligations. The maximum credit exposure as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Cash and cash equivalents
|
|
W
|
326,833
|
|
|
|
431,636
|
|
|
Financial instruments
|
|
|
116,602
|
|
|
|
131,562
|
|
|
Available-for-sale
financial assets
|
|
|
2,930
|
|
|
|
2,030
|
|
|
Accounts receivable – trade
|
|
|
1,608,582
|
|
|
|
1,528,751
|
|
|
Loans and receivables
|
|
|
1,239,923
|
|
|
|
521,723
|
|
|
Derivative financial assets
|
|
|
42,591
|
|
|
|
139,923
|
|
|
Financial assets at fair value through profit or loss
|
|
|
6,163
|
|
|
|
7,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,343,624
|
|
|
|
2,762,698
|
|
|
|
|
|
|
|
|
|
|
|
To manage credit risk, the Company evaluates the credit worthiness of each customer or counterparty
considering the party’s financial information, its own trading records and other factors. Based on such information, the Company establishes credit limits for each customer or counterparty.
For the nine-month period ended September 30, 2016, the Company has no trade and other receivables or loans which have indications of
significant impairment loss or are overdue for a prolonged period. As a result, the Company believes that the possibility of default is remote. Also, the Company’s credit risk can arise due to transactions with financial institutions related to
its cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Company has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Company is
the carrying amount of financial assets as of September 30, 2016.
39
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
3) Liquidity risk
Contractual maturities of financial liabilities as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash
flows
|
|
|
Less than
1 year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
|
Borrowings(*)
|
|
W
|
74,139
|
|
|
|
80,610
|
|
|
|
13,988
|
|
|
|
53,797
|
|
|
|
12,825
|
|
|
Debentures(*)
|
|
|
5,579,180
|
|
|
|
6,746,453
|
|
|
|
614,863
|
|
|
|
2,829,730
|
|
|
|
3,301,860
|
|
|
Accounts payable - other and others
|
|
|
3,095,966
|
|
|
|
3,232,646
|
|
|
|
1,745,220
|
|
|
|
971,917
|
|
|
|
515,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
8,749,285
|
|
|
|
10,059,709
|
|
|
|
2,374,071
|
|
|
|
3,855,444
|
|
|
|
3,830,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company does not expect that the cash flows included in the maturity analysis could occur significantly
earlier or at different amounts.
|
(*)
|
Includes interest to be paid.
|
As of September 30, 2016, periods which cash flows from
cash flow hedge derivatives are expected to occur are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash
flows
|
|
|
Less than
1 year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
|
Assets
|
|
W
|
33,299
|
|
|
|
33,986
|
|
|
|
8,200
|
|
|
|
32,140
|
|
|
|
(6,354
|
)
|
|
Liabilities
|
|
|
(140,415
|
)
|
|
|
(143,196
|
)
|
|
|
(40,835
|
)
|
|
|
(101,954
|
)
|
|
|
(407
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(107,116
|
)
|
|
|
(109,210
|
)
|
|
|
(32,635
|
)
|
|
|
(69,814
|
)
|
|
|
(6,761
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company manages its capital to ensure that it will be able to continue
as a business while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Company is the same as that of the Company as of and for the year ended December 31, 2015.
The Company monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total
equity; the total liabilities and equity is derived from the financial statements.
40
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(2)
|
Capital management, Continued
|
Debt-equity ratios as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Total liabilities
|
|
W
|
10,149,590
|
|
|
|
9,367,480
|
|
|
Total equity
|
|
|
14,098,032
|
|
|
|
13,779,460
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-equity ratios
|
|
|
71.99
|
%
|
|
|
67.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Carrying
amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Financial assets that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
15,455
|
|
|
|
—
|
|
|
|
9,292
|
|
|
|
6,163
|
|
|
|
15,455
|
|
|
Derivative financial assets
|
|
|
33,299
|
|
|
|
—
|
|
|
|
33,299
|
|
|
|
—
|
|
|
|
33,299
|
|
|
Available-for-sale
financial assets
|
|
|
715,744
|
|
|
|
665,230
|
|
|
|
47,513
|
|
|
|
3,001
|
|
|
|
715,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
764,498
|
|
|
|
665,230
|
|
|
|
90,104
|
|
|
|
9,164
|
|
|
|
764,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
104,479
|
|
|
|
—
|
|
|
|
104,479
|
|
|
|
—
|
|
|
|
104,479
|
|
|
Derivative financial liabilities
|
|
|
140,415
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
244,894
|
|
|
|
—
|
|
|
|
244,894
|
|
|
|
—
|
|
|
|
244,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are not measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
74,139
|
|
|
|
—
|
|
|
|
77,310
|
|
|
|
—
|
|
|
|
77,310
|
|
|
Debentures
|
|
|
5,474,701
|
|
|
|
—
|
|
|
|
6,042,433
|
|
|
|
—
|
|
|
|
6,042,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,548,840
|
|
|
|
—
|
|
|
|
6,119,743
|
|
|
|
—
|
|
|
|
6,119,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(3)
|
Fair value, Continued
|
|
|
2)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Carrying
amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Financial assets that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
13,350
|
|
|
|
—
|
|
|
|
6,277
|
|
|
|
7,073
|
|
|
|
13,350
|
|
|
Derivative financial assets
|
|
|
133,646
|
|
|
|
—
|
|
|
|
133,646
|
|
|
|
—
|
|
|
|
133,646
|
|
|
Available-for-sale
financial assets
|
|
|
655,845
|
|
|
|
579,282
|
|
|
|
47,262
|
|
|
|
29,301
|
|
|
|
655,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
802,841
|
|
|
|
579,282
|
|
|
|
187,185
|
|
|
|
36,374
|
|
|
|
802,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
155,704
|
|
|
|
—
|
|
|
|
155,704
|
|
|
|
—
|
|
|
|
155,704
|
|
|
Derivative financial liabilities
|
|
|
89,296
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
245,000
|
|
|
|
—
|
|
|
|
245,000
|
|
|
|
—
|
|
|
|
245,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are not measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
315,561
|
|
|
|
—
|
|
|
|
316,726
|
|
|
|
—
|
|
|
|
316,726
|
|
|
Debentures
|
|
|
5,457,421
|
|
|
|
—
|
|
|
|
5,887,378
|
|
|
|
—
|
|
|
|
5,887,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,772,982
|
|
|
|
—
|
|
|
|
6,204,104
|
|
|
|
—
|
|
|
|
6,204,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above information does not include fair values of financial assets and liabilities of which fair values
have not been measured as carrying amounts are reasonable approximation of fair values.
Available-for-sale
financial assets amounting to
W
284,449 million and
W
155,849 million as of September 30, 2016 and
December 31, 2015, respectively, are measured at cost in accordance with
K-IFRS
1039 since they are considered as equity instruments which do not have quoted price in an active market for the identical
instruments (inputs for level 1) and cannot be reliably measured using other valuation methods.
42
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(3)
|
Fair value, Continued
|
Fair value of the financial instruments that are traded in an active market
(available-for-sale
financial assets, financial liabilities at fair value through profit or loss, etc.) is measured based on the bid price at the end of the reporting date.
The Company uses various valuation methods for determination of fair value of financial instruments that are not traded in an active
market. Fair value of
available-for-sale
securities is determined using the market approach methods and financial assets through profit or loss are measured using the
option pricing model. In addition, derivative financial contracts and long-term liabilities are measured using the present value methods. Inputs used to such valuation methods include swap rate, interest rate, and risk premium, and the Company
performs valuation using the inputs which are consistent with natures of assets and liabilities measured.
Interest rates used by the
Company for the fair value measurement as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
Interest rate
|
|
|
Derivative instruments
|
|
|
1.90 ~ 3.44
|
%
|
|
Borrowings and debentures
|
|
|
1.55 ~ 1.57
|
%
|
|
|
3)
|
There have been no transfers between Level 2 and Level 1 for the nine-month period ended September 30, 2016 and changes of financial assets classified as Level 3 for the nine-month period ended
September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
January 1,
2016
|
|
|
Loss for the
period
|
|
|
Other
comprehensive
income
|
|
|
Disposal
|
|
|
Balance at
September 30,
2016
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
7,073
|
|
|
|
(910
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
6,163
|
|
|
Available-for-sale
financial assets
|
|
|
29,301
|
|
|
|
—
|
|
|
|
195
|
|
|
|
(26,495
|
)
|
|
|
3,001
|
|
43
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
27.
|
Financial Risk Management, Continued
|
|
|
(4)
|
Enforceable master netting agreement or similar agreement
|
Carrying amount of financial instruments recognized of which offset agreements are applicable
as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross financial
instruments
recognized
|
|
|
Amount offset
|
|
|
Net financial
instruments
presented on the
statement of
financial position
|
|
|
Relevant financial
instruments not
offset
|
|
|
Net
amount
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
35,191
|
|
|
|
—
|
|
|
|
35,191
|
|
|
|
(35,191
|
)
|
|
|
—
|
|
|
Accounts receivable – trade and others
|
|
|
123,919
|
|
|
|
(112,970
|
)
|
|
|
10,949
|
|
|
|
—
|
|
|
|
10,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
159,110
|
|
|
|
(112,970
|
)
|
|
|
46,140
|
|
|
|
(35,191
|
)
|
|
|
10,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
52,271
|
|
|
|
—
|
|
|
|
52,271
|
|
|
|
(35,191
|
)
|
|
|
17,080
|
|
|
Accounts payable – other and others
|
|
|
112,970
|
|
|
|
(112,970
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
165,241
|
|
|
|
(112,970
|
)
|
|
|
52,271
|
|
|
|
(35,191
|
)
|
|
|
17,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount of financial instruments recognized of which offset agreements are applicable as of
December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross financial
instruments
recognized
|
|
|
Amount
offset
|
|
|
Net financial
instruments
presented on the
statement of
financial position
|
|
|
Relevant financial
instruments not
offset
|
|
|
Net
amount
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
55,673
|
|
|
|
—
|
|
|
|
55,673
|
|
|
|
(55,673
|
)
|
|
|
—
|
|
|
Accounts receivable – trade and others
|
|
|
129,527
|
|
|
|
(113,003
|
)
|
|
|
16,524
|
|
|
|
—
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
185,200
|
|
|
|
(113,003
|
)
|
|
|
72,197
|
|
|
|
(55,673
|
)
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
89,734
|
|
|
|
—
|
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
34,061
|
|
|
Accounts payable – other and others
|
|
|
113,003
|
|
|
|
(113,003
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
202,737
|
|
|
|
(113,003
|
)
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
34,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The balance represents the net amount under the standard terms and conditions of International Swap and Derivatives Association.
|
44
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties
|
|
|
(1)
|
List of related parties
|
|
|
|
|
|
Relationship
|
|
Company
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
Subsidiaries
|
|
SK Planet Co., Ltd. and 39 other companies(*)
|
|
Joint ventures
|
|
Dogus Planet, Inc. and 4 other companies
|
|
Associates
|
|
SK hynix Inc. and 49 other companies
|
|
Affiliates
|
|
The Ultimate Controlling Entity’s other subsidiaries and associates, etc.
|
|
(*)
|
As of September 30, 2016, subsidiaries of the Company are as follows:
|
|
|
|
|
|
|
|
|
|
Company
|
|
Ownership
percentage (%)
|
|
|
Types of business
|
|
SK Telink Co., Ltd.
|
|
|
83.5
|
|
|
Telecommunication and MVNO(Mobile Virtual Network Operator) service
|
|
M&Service Co., Ltd.(*1)
|
|
|
100.0
|
|
|
Database and internet website service
|
|
SK Communications Co., Ltd.
|
|
|
64.5
|
|
|
Internet website services
|
|
Stonebridge Cinema Fund
|
|
|
55.2
|
|
|
Investment
|
|
SK Broadband Co., Ltd.
|
|
|
100.0
|
|
|
Telecommunication services
|
|
K-net
Culture and Contents Venture Fund
|
|
|
59.0
|
|
|
Investment
|
|
Fitech Focus Limited Partnership II
|
|
|
66.7
|
|
|
Investment
|
|
Open Innovation Fund
|
|
|
98.9
|
|
|
Investment
|
|
PS&Marketing Corporation
|
|
|
100.0
|
|
|
Communications device retail business
|
|
Service Ace Co., Ltd.
|
|
|
100.0
|
|
|
Customer center management service
|
|
Service Top Co., Ltd.
|
|
|
100.0
|
|
|
Customer center management service
|
|
Network O&S Co., Ltd.
|
|
|
100.0
|
|
|
Base station maintenance service
|
|
SK Planet Co., Ltd.
|
|
|
98.1
|
|
|
Telecommunication services
|
|
Neosnetworks Co., Ltd.
|
|
|
83.9
|
|
|
Security systems service
|
|
IRIVER LIMITED
|
|
|
48.9
|
|
|
Manufacturing of media and audio equipment
|
|
iriver Enterprise Ltd.(*2)
|
|
|
100.0
|
|
|
Management of Chinese subsidiaries
|
|
iriver America Inc.(*2)
|
|
|
100.0
|
|
|
Sales and marketing in North America
|
|
iriver Inc. (*2)
|
|
|
100.0
|
|
|
Sales and marketing in North America
|
|
iriver China Co., Ltd. (*2)
|
|
|
100.0
|
|
|
Sales and manufacturing of MP3 and 4 in China
|
|
Dongguan iriver Electronics Co., Ltd. (*2)
|
|
|
100.0
|
|
|
Sales and Manufacturing of
e-book
in China
|
|
groovers Japan Co., Ltd.. (*2)
|
|
|
100.0
|
|
|
Digital music contents sourcing and distribution service
|
|
SK Telecom China Holdings Co., Ltd.
|
|
|
100.0
|
|
|
Investment
|
|
SK Global Healthcare Business Group., Ltd.
|
|
|
100.0
|
|
|
Investment
|
|
SK Planet Japan, K. K.(*1)
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
|
SKT Vietnam PTE. Ltd.
|
|
|
73.3
|
|
|
Telecommunication services
|
|
SK Planet Global PTE. Ltd. (*1)
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
|
SKP GLOBAL HOLDINGS PTE. LTD. (*1)
|
|
|
100.0
|
|
|
Investment
|
|
SKT Americas, Inc.
|
|
|
100.0
|
|
|
Information gathering and consulting
|
|
SKP America LLC. (*1)
|
|
|
100.0
|
|
|
Digital contents sourcing service
|
|
YTK Investment Ltd.
|
|
|
100.0
|
|
|
Investment
|
|
Atlas Investment
|
|
|
100.0
|
|
|
Investment
|
|
SK Telecom Innovation Fund, L.P. (formerly, Technology Innovation Partners, L.P.)(*3)
|
|
|
100.0
|
|
|
Investment
|
|
SK Telecom China Fund I L.P.
|
|
|
100.0
|
|
|
Investment
|
|
Entrix Co., Ltd.
|
|
|
100.0
|
|
|
Cloud streaming service
|
|
SK techx Co., Ltd.
|
|
|
100.0
|
|
|
System software development and supply
|
|
One Store Co., Ltd.
|
|
|
65.5
|
|
|
Telecommunication services
|
|
shopkick Management Company, Inc. (*1)
|
|
|
100.0
|
|
|
Investment
|
|
shopkick, Inc. (*1)
|
|
|
100.0
|
|
|
Mileage-based online transaction application development
|
|
Planet11
E-commerce
Solutions India Pvt. Ltd.
(*1)
|
|
|
100.0
|
|
|
Electronic commerce platform service
|
|
11street (Thailand) Co., Ltd. (*1)
|
|
|
100.0
|
|
|
Electronic commerce
|
45
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(1)
|
List of related parties, Continued
|
|
(*)
|
As of September 30, 2016, subsidiaries of the Company are as follows, Continued:
|
|
(*1)
|
The ownership interest owned by SK Planet Co., Ltd.
|
|
(*2)
|
The ownership interest owned by IRIVER LIMITED.
|
|
(*3)
|
Changed its name to SK Telecom Innovation Fund, L.P. during the nine-month period ended September 30, 2016.
|
|
|
(2)
|
Compensation for the key management members
|
The Company considers registered directors who
have substantial role and responsibility in planning, operating, and controlling of the business as key management members. The compensation given to such key management members for the three and nine-month periods ended September 30, 2016 and
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month period
ended September 30
|
|
|
Nine-month period
ended September 30
|
|
|
Three-month period
ended September 30
|
|
|
Nine-month period
ended September 30
|
|
|
Salaries
|
|
W
|
220
|
|
|
|
1,421
|
|
|
|
207
|
|
|
|
1,767
|
|
|
Defined benefits plan expenses
|
|
|
48
|
|
|
|
376
|
|
|
|
42
|
|
|
|
584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
268
|
|
|
|
1,797
|
|
|
|
249
|
|
|
|
2,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation for the key management members includes salaries,
non-monetary
salaries and contributions made in relation to pension plans.
46
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
|
|
|
|
Operating
revenue and
others
|
|
|
Operating
expenses and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Collection of
loans
|
|
|
Scope
|
|
Company
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep.30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep.30
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.(*1)
|
|
W
|
2,199
|
|
|
|
7,916
|
|
|
|
81,414
|
|
|
|
452,059
|
|
|
|
54,910
|
|
|
|
67,906
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
30,082
|
|
|
|
91,535
|
|
|
|
148,360
|
|
|
|
401,941
|
|
|
|
19,835
|
|
|
|
26,934
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation(*7)
|
|
|
2,677
|
|
|
|
8,309
|
|
|
|
380,030
|
|
|
|
1,136,983
|
|
|
|
2,877
|
|
|
|
3,232
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
1,295
|
|
|
|
4,405
|
|
|
|
49,008
|
|
|
|
141,577
|
|
|
|
5,712
|
|
|
|
8,531
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Planet Co., Ltd.
|
|
|
7,362
|
|
|
|
25,800
|
|
|
|
11,560
|
|
|
|
127,025
|
|
|
|
—
|
|
|
|
331
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Telink Co., Ltd.(*2)
|
|
|
16,098
|
|
|
|
50,300
|
|
|
|
5,069
|
|
|
|
15,925
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Ace Co., Ltd.(*3)
|
|
|
7,454
|
|
|
|
11,341
|
|
|
|
34,000
|
|
|
|
101,899
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Top Co., Ltd.(*4)
|
|
|
9,848
|
|
|
|
14,232
|
|
|
|
35,871
|
|
|
|
109,149
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK techx Co., Ltd
|
|
|
463
|
|
|
|
891
|
|
|
|
53,748
|
|
|
|
124,149
|
|
|
|
2,421
|
|
|
|
5,019
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
7,323
|
|
|
|
15,321
|
|
|
|
13,281
|
|
|
|
37,747
|
|
|
|
918
|
|
|
|
1,769
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82,602
|
|
|
|
222,134
|
|
|
|
730,927
|
|
|
|
2,196,395
|
|
|
|
31,763
|
|
|
|
45,816
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
399
|
|
|
|
1,207
|
|
|
|
10,571
|
|
|
|
30,987
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
20
|
|
|
|
57
|
|
|
|
2,904
|
|
|
|
6,491
|
|
|
|
5,769
|
|
|
|
9,639
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*5)
|
|
|
6,979
|
|
|
|
87,652
|
|
|
|
28
|
|
|
|
215
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
284
|
|
|
|
852
|
|
|
|
2
|
|
|
|
14,312
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
4,929
|
|
|
|
14,928
|
|
|
|
3,667
|
|
|
|
11,146
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others(*6)
|
|
|
2
|
|
|
|
6,084
|
|
|
|
1,070
|
|
|
|
2,855
|
|
|
|
316
|
|
|
|
359
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,613
|
|
|
|
110,780
|
|
|
|
18,242
|
|
|
|
66,006
|
|
|
|
6,085
|
|
|
|
9,998
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
751
|
|
|
|
3,060
|
|
|
|
—
|
|
|
|
831
|
|
|
|
1,245
|
|
|
|
1,890
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
1,297
|
|
|
|
3,837
|
|
|
|
3,475
|
|
|
|
11,690
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks service Co., Ltd.
|
|
|
166
|
|
|
|
662
|
|
|
|
12,641
|
|
|
|
35,711
|
|
|
|
1,492
|
|
|
|
2,024
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
342
|
|
|
|
389
|
|
|
|
1,833
|
|
|
|
5,593
|
|
|
|
14,513
|
|
|
|
38,644
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK TNS Co., Ltd.
|
|
|
24
|
|
|
|
66
|
|
|
|
10,141
|
|
|
|
20,656
|
|
|
|
77,495
|
|
|
|
135,360
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
3,780
|
|
|
|
12,961
|
|
|
|
5,184
|
|
|
|
15,077
|
|
|
|
2,621
|
|
|
|
4,762
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,360
|
|
|
|
20,975
|
|
|
|
33,274
|
|
|
|
89,558
|
|
|
|
97,366
|
|
|
|
182,680
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
103,774
|
|
|
|
361,805
|
|
|
|
863,857
|
|
|
|
2,804,018
|
|
|
|
190,124
|
|
|
|
306,400
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the three and nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
(*1)
|
Operating expenses and others include
W
203,635 million of dividends paid by the Company.
|
|
(*2)
|
Operating revenue and others include
W
2,489 million of dividends received.
|
|
(*3)
|
Operating revenue and others include
W
5,504 million of dividends received.
|
|
(*4)
|
Operating revenue and others include
W
7,700 million of dividends received.
|
|
(*5)
|
Operating revenue and others include
W
73,050 million of dividends received.
|
|
(*6)
|
Operating revenue and others include
W
6,082 million of dividends received from Korea IT Fund.
|
|
(*7)
|
Operating expenses and others include
W
589,587 million paid to PS&Marketing Corporation relating to purchase of accounts receivables from the sale of handsets.
|
48
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the three and nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2015
|
|
|
|
|
|
|
Operating revenue
and others
|
|
|
Operating expense
and others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Scope
|
|
Company
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly,
SK C&C Co.,Ltd.)(*1)
|
|
W
|
2,191
|
|
|
|
4,217
|
|
|
|
88,561
|
|
|
|
210,247
|
|
|
|
28,082
|
|
|
|
91,524
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Holdings Co., Ltd. (formerly,
SK Holdings Co., Ltd.)(*2,3)
|
|
|
22
|
|
|
|
369
|
|
|
|
22,617
|
|
|
|
207,193
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,213
|
|
|
|
4,586
|
|
|
|
111,178
|
|
|
|
417,440
|
|
|
|
28,082
|
|
|
|
91,524
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
30,982
|
|
|
|
95,360
|
|
|
|
143,012
|
|
|
|
403,911
|
|
|
|
12,803
|
|
|
|
14,803
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PS&Marketing Corporation
|
|
|
2,871
|
|
|
|
8,492
|
|
|
|
204,378
|
|
|
|
620,406
|
|
|
|
424
|
|
|
|
739
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
1,848
|
|
|
|
3,407
|
|
|
|
53,141
|
|
|
|
132,814
|
|
|
|
4,784
|
|
|
|
4,784
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Planet Co., Ltd(*4)
|
|
|
150,893
|
|
|
|
178,076
|
|
|
|
138,112
|
|
|
|
404,855
|
|
|
|
5,258
|
|
|
|
6,978
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Telink Co., Ltd.
|
|
|
16,145
|
|
|
|
46,441
|
|
|
|
5,347
|
|
|
|
18,854
|
|
|
|
5
|
|
|
|
5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Service Ace Co., Ltd.
|
|
|
1,907
|
|
|
|
5,712
|
|
|
|
41,449
|
|
|
|
116,855
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Service Top Co., Ltd.
|
|
|
2,138
|
|
|
|
6,259
|
|
|
|
41,087
|
|
|
|
119,209
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others
|
|
|
2,756
|
|
|
|
8,991
|
|
|
|
10,568
|
|
|
|
25,608
|
|
|
|
97
|
|
|
|
247
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
209,540
|
|
|
|
352,738
|
|
|
|
637,094
|
|
|
|
1,842,512
|
|
|
|
23,371
|
|
|
|
27,556
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
404
|
|
|
|
1,257
|
|
|
|
10,124
|
|
|
|
30,842
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
33
|
|
|
|
67
|
|
|
|
518
|
|
|
|
2,273
|
|
|
|
2,192
|
|
|
|
4,835
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*5)
|
|
|
1,514
|
|
|
|
49,712
|
|
|
|
36
|
|
|
|
2,235
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
280
|
|
|
|
841
|
|
|
|
2,002
|
|
|
|
12,910
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
5,325
|
|
|
|
16,175
|
|
|
|
3,958
|
|
|
|
12,181
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others(*6)
|
|
|
16
|
|
|
|
2,560
|
|
|
|
1,010
|
|
|
|
4,447
|
|
|
|
—
|
|
|
|
11
|
|
|
|
—
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,572
|
|
|
|
70,612
|
|
|
|
17,648
|
|
|
|
64,888
|
|
|
|
2,192
|
|
|
|
4,846
|
|
|
|
—
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
1,223
|
|
|
|
5,361
|
|
|
|
9,577
|
|
|
|
18,167
|
|
|
|
59,346
|
|
|
|
142,961
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
1,201
|
|
|
|
5,647
|
|
|
|
3,894
|
|
|
|
12,170
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK Networks service Co., Ltd.
|
|
|
2,773
|
|
|
|
7,504
|
|
|
|
13,083
|
|
|
|
30,243
|
|
|
|
1,418
|
|
|
|
1,845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
38
|
|
|
|
133
|
|
|
|
1,984
|
|
|
|
5,838
|
|
|
|
19,843
|
|
|
|
67,791
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
5,086
|
|
|
|
11,417
|
|
|
|
8,598
|
|
|
|
21,332
|
|
|
|
1,996
|
|
|
|
3,878
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,321
|
|
|
|
30,062
|
|
|
|
37,136
|
|
|
|
87,750
|
|
|
|
82,603
|
|
|
|
216,475
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
229,646
|
|
|
|
457,998
|
|
|
|
803,056
|
|
|
|
2,412,590
|
|
|
|
136,248
|
|
|
|
340,401
|
|
|
|
—
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the three and nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
(*1)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entity’s equity method investee, merged with SK Holdings Co., Ltd. the ultimate controlling entity of the Company, and changed its name to SK,
Holdings Co., Ltd.
|
|
(*2)
|
These relates to transactions occurred until July 31, 2015 before the merger with SK C&C Co., Ltd.
|
|
(*3)
|
Operating expense and others include
W
191,416 million of dividends paid by the Company.
|
|
(*4)
|
Operating revenue and others include
W
140,834 million of dividend recognized due to the declaration of dividend in kind of SK Planet Co., Ltd., a subsidiary of the Company.
|
|
(*5)
|
Operating revenue and others include
W
43,830 million of dividends received from SK hynix Inc.
|
|
(*6)
|
Operating revenue and others include
W
2,103 million and
W
227 million of dividends received from Korea IT Fund and UniSK, respectively.
|
50
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(4)
|
Account balances as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts receivable
- trade and others
|
|
|
Accounts payable
– trade and others
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
W
|
—
|
|
|
|
423
|
|
|
|
34,478
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
—
|
|
|
|
2,254
|
|
|
|
26,385
|
|
|
|
|
PS&Marketing Corporation
|
|
|
—
|
|
|
|
122
|
|
|
|
93,786
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
—
|
|
|
|
25
|
|
|
|
20,930
|
|
|
|
|
SK Planet Co., Ltd.
|
|
|
—
|
|
|
|
4,046
|
|
|
|
21,918
|
|
|
|
|
SK Telink Co., Ltd.
|
|
|
—
|
|
|
|
9,674
|
|
|
|
3,797
|
|
|
|
|
Service Ace Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
22,478
|
|
|
|
|
Service Top Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
23,252
|
|
|
|
|
SK techx Co., Ltd
|
|
|
—
|
|
|
|
243
|
|
|
|
8,464
|
|
|
|
|
One Store Co., Ltd
|
|
|
—
|
|
|
|
—
|
|
|
|
17,942
|
|
|
|
|
Others(*)
|
|
|
—
|
|
|
|
8,800
|
|
|
|
24,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
25,164
|
|
|
|
263,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
3,914
|
|
|
|
|
SK hynix Inc.
|
|
|
—
|
|
|
|
4,917
|
|
|
|
—
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,017
|
|
|
|
108
|
|
|
|
—
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
—
|
|
|
|
38,412
|
|
|
|
—
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
8,114
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
—
|
|
|
|
1,595
|
|
|
|
5,069
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
21
|
|
|
|
1,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,164
|
|
|
|
53,167
|
|
|
|
10,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering and Construction Co., Ltd.
|
|
|
—
|
|
|
|
195
|
|
|
|
—
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
—
|
|
|
|
513
|
|
|
|
1,285
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
4,804
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
—
|
|
|
|
412
|
|
|
|
1,863
|
|
|
|
|
SK Innovation Co., Ltd.
|
|
|
—
|
|
|
|
1,966
|
|
|
|
155
|
|
|
|
|
SK TNS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
23,778
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
552
|
|
|
|
4,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
3,638
|
|
|
|
36,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
23,164
|
|
|
|
82,392
|
|
|
|
344,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The convertible bonds amounting to
W
6,163 million are included in accounts receivable - trade and others.
|
51
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Transactions with Related Parties, Continued
|
|
|
(4)
|
Account balances as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts
receivable - trade
and others
|
|
|
Accounts payable
– trade and others
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.)(*)
|
|
W
|
—
|
|
|
|
1,100
|
|
|
|
107,995
|
|
|
Subsidiaries
|
|
SK Broadband Co., Ltd.
|
|
|
—
|
|
|
|
2,160
|
|
|
|
24,847
|
|
|
|
|
PS&Marketing Corporation
|
|
|
—
|
|
|
|
614
|
|
|
|
62,592
|
|
|
|
|
Network O&S Co., Ltd.
|
|
|
—
|
|
|
|
665
|
|
|
|
33,658
|
|
|
|
|
SK Planet Co., Ltd.
|
|
|
—
|
|
|
|
6,722
|
|
|
|
36,874
|
|
|
|
|
SK Telink Co., Ltd.
|
|
|
—
|
|
|
|
10,026
|
|
|
|
3,068
|
|
|
|
|
Service Ace Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
20,684
|
|
|
|
|
Service Top Co., Ltd.
|
|
|
—
|
|
|
|
63
|
|
|
|
21,772
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
4,722
|
|
|
|
17,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
24,972
|
|
|
|
220,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
4,987
|
|
|
|
|
SK hynix Inc.
|
|
|
—
|
|
|
|
4,360
|
|
|
|
155
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,017
|
|
|
|
4,502
|
|
|
|
—
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,890
|
|
|
|
38,412
|
|
|
|
—
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
—
|
|
|
|
1,771
|
|
|
|
7,262
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
74
|
|
|
|
1,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,054
|
|
|
|
49,119
|
|
|
|
14,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering and Construction Co., Ltd.
|
|
|
—
|
|
|
|
648
|
|
|
|
14,877
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
—
|
|
|
|
656
|
|
|
|
924
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
8,963
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
—
|
|
|
|
117
|
|
|
|
3,585
|
|
|
|
|
SK Innovation Co., Ltd.
|
|
|
—
|
|
|
|
2,133
|
|
|
|
292
|
|
|
|
|
SK TNS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
29,252
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
2,581
|
|
|
|
9,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
6,135
|
|
|
|
67,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
25,054
|
|
|
|
81,326
|
|
|
|
410,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entity’s investor, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Company, and changed its name to SK Holdings Co., Ltd.
|
|
|
(5)
|
The Company made additional investments in subsidiaries, associates and joint ventures during the nine-month period ended September 30, 2016 as presented in Note 7.
|
52
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
For the year ended December 31, 2012, the Company disposed a
portion of its property and equipment and investment property, and entered into lease agreements with respect to those assets. These sale and leaseback transactions were accounted as operating leases.
The Company recognized lease payment of
W
11,074 million and
W
10,904 million, respectively, in relation to the operating lease agreements and lease revenue of
W
6,811 million and
W
7,155 million,
respectively, in relation to sublease agreements for the nine-month periods ended September 30, 2016 and 2015. Future lease payments and revenue from the operating lease agreements and sublease agreements are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Lease payments
|
|
|
Revenue
|
|
|
Less than 1 year
|
|
W
|
15,312
|
|
|
|
9,105
|
|
|
1~5 years
|
|
|
52,431
|
|
|
|
25,823
|
|
|
More than 5 years
|
|
|
17,374
|
|
|
|
7,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
85,117
|
|
|
|
42,777
|
|
|
|
|
|
|
|
|
|
|
|
53
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
30.
|
Statements of Cash Flows
|
|
|
(1)
|
Adjustments for income and expenses from operating activities for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Interest income
|
|
W
|
(21,862
|
)
|
|
|
(15,946
|
)
|
|
Gain on disposal of accounts receivable - trade
|
|
|
(12,708
|
)
|
|
|
—
|
|
|
Dividends
|
|
|
(113,024
|
)
|
|
|
(200,046
|
)
|
|
Gain on foreign currency translation
|
|
|
(43
|
)
|
|
|
(1,769
|
)
|
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
(1,225
|
)
|
|
|
(5,188
|
)
|
|
Gain on disposal of long-term investment securities
|
|
|
(4,227
|
)
|
|
|
(2,828
|
)
|
|
Gain on valuation of derivatives
|
|
|
(4,708
|
)
|
|
|
(4,633
|
)
|
|
Gain on disposal of property and equipment and intangible assets
|
|
|
(2,533
|
)
|
|
|
(2,075
|
)
|
|
Other income
|
|
|
(758
|
)
|
|
|
(168
|
)
|
|
Interest expenses
|
|
|
178,747
|
|
|
|
181,266
|
|
|
Loss on foreign currency translation
|
|
|
1,860
|
|
|
|
8
|
|
|
Loss on disposal of long-term investments securities
|
|
|
152
|
|
|
|
2
|
|
|
Loss on settlement of derivatives
|
|
|
1,837
|
|
|
|
4,517
|
|
|
Loss relating to financial assets at fair value through profit or loss
|
|
|
910
|
|
|
|
—
|
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
—
|
|
|
|
4,850
|
|
|
Other finance costs
|
|
|
815
|
|
|
|
37,407
|
|
|
Bad debt for accounts receivable - trade
|
|
|
14,198
|
|
|
|
27,735
|
|
|
Bad debt for accounts receivable - other
|
|
|
7,609
|
|
|
|
7,572
|
|
|
Loss relating to investments in subsidiaries, associates and joint ventures
|
|
|
47,618
|
|
|
|
3,819
|
|
|
Depreciation and amortization
|
|
|
1,731,890
|
|
|
|
1,689,428
|
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
28,050
|
|
|
|
13,396
|
|
|
Retirement benefit expenses
|
|
|
28,197
|
|
|
|
26,474
|
|
|
Income tax expense
|
|
|
261,246
|
|
|
|
299,603
|
|
|
Other expenses
|
|
|
15,890
|
|
|
|
4,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,157,931
|
|
|
|
2,067,842
|
|
|
|
|
|
|
|
|
|
|
|
54
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
30.
|
Statements of Cash Flows, Continued
|
|
|
(2)
|
Changes in assets and liabilities from operating activities for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Accounts receivable – trade
|
|
W
|
(86,273
|
)
|
|
|
(104,537
|
)
|
|
Accounts receivable – other
|
|
|
(471,450
|
)
|
|
|
(23,889
|
)
|
|
Advance payments
|
|
|
18,666
|
|
|
|
(27,826
|
)
|
|
Prepaid expenses
|
|
|
(9,956
|
)
|
|
|
(2,215
|
)
|
|
Inventories
|
|
|
5,244
|
|
|
|
(15,742
|
)
|
|
Long-term receivables - other
|
|
|
(226,168
|
)
|
|
|
—
|
|
|
Long-term prepaid expenses
|
|
|
2,532
|
|
|
|
(98
|
)
|
|
Guarantee deposits
|
|
|
(3,104
|
)
|
|
|
(9,376
|
)
|
|
Accounts payable – other
|
|
|
87,258
|
|
|
|
(182,128
|
)
|
|
Advanced receipts
|
|
|
11,977
|
|
|
|
10,511
|
|
|
Withholdings
|
|
|
147,039
|
|
|
|
57,277
|
|
|
Deposits received
|
|
|
3,189
|
|
|
|
(7,256
|
)
|
|
Accrued expenses
|
|
|
68,874
|
|
|
|
(154,137
|
)
|
|
Unearned revenue
|
|
|
(9,598
|
)
|
|
|
(88,191
|
)
|
|
Provisions
|
|
|
(1,188
|
)
|
|
|
(11,892
|
)
|
|
Long-term provisions
|
|
|
—
|
|
|
|
(6,907
|
)
|
|
Plan assets
|
|
|
(15,234
|
)
|
|
|
(4,883
|
)
|
|
Retirement benefit payment
|
|
|
(4,192
|
)
|
|
|
(22,194
|
)
|
|
Others
|
|
|
(72
|
)
|
|
|
1,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(482,456
|
)
|
|
|
(592,126
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Significant
non-cash
transactions for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Increase(decrease) of accounts payable - other related to acquisition of property and equipment
and intangible assets
|
|
W
|
839,033
|
|
|
|
(165,657
|
)
|
55
SK TELECOM CO., LTD.
Notes to the Condensed Separate Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Accounts receivables from the sale of handsets
|
The agents of the Company sell handsets to our
subscribers on an installment basis. During the nine-month period ended September 30, 2016, the Company entered into comprehensive agreement to purchase the accounts receivables from the handset sales with agents and to transfer the accounts
receivables from the handset sales to a Special Purpose Company, respectively.
The accounts receivables from the sale of handsets
amounting to
W
714,074 million as of September 30, 2016, which the Company purchased according to the relevant comprehensive agreement are recognized as accounts receivable – other and long-term
accounts receivable- other.
|
|
(2)
|
Frequency usage rights
|
During the nine-month period ended September 30, 2016, the Company
secured bandwidth blocs in the 2.6 GHz band for
W
1,330,100 million at the spectrum auction held by the Ministry of Science, ICT and Future Planning (MSIP) of Korea. The Company acquired the ownership of
frequency usage rights for 2.6 GHz band and made the initial payment in accordance with the terms of the agreement in August 2016. The remaining consideration will be paid on an annual installment basis for 10 years from March 2017.
56
SK TELECOM CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
(Unaudited)
September 30, 2016 and 2015
(With Independent Auditors’ Review Report Thereon)
Contents
Independent Auditors’ Review Report
Based on a report originally issued in Korean
To The
Board of Directors and Shareholders
SK Telecom Co., Ltd.:
Reviewed financial statements
We have reviewed the
accompanying condensed consolidated interim financial statements of SK Telecom Co., Ltd. and its subsidiaries (the “Group”), which comprise the condensed consolidated statement of financial position as of September 30, 2016, the
related condensed consolidated statements of income and comprehensive income for the three and nine-month periods ended September 30, 2016 and 2015, the condensed consolidated statements of changes in equity and cash flows for the nine-month
periods ended September 30, 2016 and 2015, and notes, comprising a summary of significant accounting policies and other explanatory information.
Management’s responsibility
Management is
responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards
(“K-IFRS”)
No.
1034,
Interim Financial Reporting
, and for such internal controls as management determines necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ responsibility
Our
responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews.
We conducted our reviews in
accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statements consists principally 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 conducted in accordance with Korean Standards on Auditing 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 causes us to believe that the accompanying condensed consolidated interim financial statements referred to above are not prepared fairly, in all material respects, in accordance with
K-IFRS
No.1034,
Interim Financial Reporting
.
Other matters
The consolidated statement of financial position of the Group as of December 31, 2015, and the related consolidated statements of income, comprehensive
income, changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us in accordance with Korean Standards on Auditing and our report thereon, dated February 23, 2016, expressed an
unqualified opinion. The accompanying condensed consolidated statement of financial position of the Group as of December 31, 2015, presented for comparative purposes, is consistent, in all material respects, with the audited consolidated
financial statements from which it has been derived.
The procedures and practices utilized in the Republic of Korea to review such condensed consolidated
interim financial statements may differ from those generally accepted and applied in other countries.
KPMG Samjong Accounting Corp.
Seoul, Korea
November 4, 2016
|
|
|
This report is effective as of November 4, 2016, the review report date. Certain subsequent events or circumstances, which may occur between the review
report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above
review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
|
2
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Financial Position
As of September 30, 2016 and December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
31,32
|
|
|
W
|
859,222
|
|
|
|
768,922
|
|
|
Short-term financial instruments
|
|
|
5,31,32,34
|
|
|
|
523,245
|
|
|
|
691,090
|
|
|
Short-term investment securities
|
|
|
8,31,32
|
|
|
|
202,513
|
|
|
|
92,262
|
|
|
Accounts receivable – trade, net
|
|
|
6,31,32,33
|
|
|
|
2,324,873
|
|
|
|
2,344,867
|
|
|
Short-term loans, net
|
|
|
6,31,32,33
|
|
|
|
65,702
|
|
|
|
53,895
|
|
|
Accounts receivable – other, net
|
|
|
6,31,32,33,34
|
|
|
|
1,255,813
|
|
|
|
673,739
|
|
|
Prepaid expenses
|
|
|
|
|
|
|
166,235
|
|
|
|
151,978
|
|
|
Inventories, net
|
|
|
7
|
|
|
|
274,047
|
|
|
|
273,556
|
|
|
Advanced payments and other
|
|
|
6,8,31,32
|
|
|
|
106,007
|
|
|
|
109,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets
|
|
|
|
|
|
|
5,777,657
|
|
|
|
5,160,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term financial instruments
|
|
|
5,31,32,34
|
|
|
|
10,638
|
|
|
|
10,623
|
|
|
Long-term investment securities
|
|
|
8,31,32
|
|
|
|
1,073,976
|
|
|
|
1,207,226
|
|
|
Investments in associates and joint ventures
|
|
|
10
|
|
|
|
6,962,193
|
|
|
|
6,896,293
|
|
|
Property and equipment, net
|
|
|
11,33,34
|
|
|
|
9,790,522
|
|
|
|
10,371,256
|
|
|
Investment property, net
|
|
|
12
|
|
|
|
8,214
|
|
|
|
15,071
|
|
|
Goodwill
|
|
|
13
|
|
|
|
1,902,478
|
|
|
|
1,908,590
|
|
|
Intangible assets, net
|
|
|
14
|
|
|
|
3,198,834
|
|
|
|
2,304,784
|
|
|
Long-term loans, net
|
|
|
6,31,32,33
|
|
|
|
88,480
|
|
|
|
62,454
|
|
|
Long-term accounts receivable - other
|
|
|
6,31,32,34
|
|
|
|
228,686
|
|
|
|
2,420
|
|
|
Long-term prepaid expenses
|
|
|
34
|
|
|
|
82,448
|
|
|
|
76,034
|
|
|
Guarantee deposits
|
|
|
6,31,32,33
|
|
|
|
301,998
|
|
|
|
297,281
|
|
|
Long-term derivative financial assets
|
|
|
20,31,32
|
|
|
|
47,660
|
|
|
|
166,399
|
|
|
Deferred tax assets
|
|
|
29
|
|
|
|
15,697
|
|
|
|
17,257
|
|
|
Other
non-current
assets
|
|
|
6,31,32
|
|
|
|
66,224
|
|
|
|
85,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Non-Current
Assets
|
|
|
|
|
|
|
23,778,048
|
|
|
|
23,421,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
|
|
W
|
29,555,705
|
|
|
|
28,581,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements
.
3
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Financial Position, Continued
As of September 30, 2016 and December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
15,31,32
|
|
|
W
|
827
|
|
|
|
260,000
|
|
|
Current installments of long-term debt, net
|
|
|
15,31,32
|
|
|
|
682,640
|
|
|
|
703,087
|
|
|
Current installments of finance lease liabilities
|
|
|
31,32
|
|
|
|
—
|
|
|
|
26
|
|
|
Current installments of long-term payables – other
|
|
|
16,31,32,34
|
|
|
|
215,769
|
|
|
|
120,185
|
|
|
Accounts payable - trade
|
|
|
31,32,33
|
|
|
|
306,722
|
|
|
|
279,782
|
|
|
Accounts payable - other
|
|
|
31,32,33
|
|
|
|
1,191,608
|
|
|
|
1,323,434
|
|
|
Withholdings
|
|
|
31,32
|
|
|
|
1,081,402
|
|
|
|
865,327
|
|
|
Accrued expenses
|
|
|
31,32
|
|
|
|
1,162,960
|
|
|
|
920,739
|
|
|
Income tax payable
|
|
|
29
|
|
|
|
344,338
|
|
|
|
381,794
|
|
|
Unearned revenue
|
|
|
|
|
|
|
190,037
|
|
|
|
224,233
|
|
|
Derivative financial liabilities
|
|
|
20,31,32
|
|
|
|
33,808
|
|
|
|
—
|
|
|
Provisions
|
|
|
17
|
|
|
|
38,024
|
|
|
|
40,988
|
|
|
Receipts in advance
|
|
|
|
|
|
|
145,022
|
|
|
|
136,844
|
|
|
Other current liabilities
|
|
|
|
|
|
|
51
|
|
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities
|
|
|
|
|
|
|
5,393,208
|
|
|
|
5,256,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures, excluding current installments, net
|
|
|
15,31,32
|
|
|
|
6,393,588
|
|
|
|
6,439,147
|
|
|
Long-term borrowings, excluding current installments, net
|
|
|
15,31,32
|
|
|
|
95,901
|
|
|
|
121,553
|
|
|
Long-term payables – other
|
|
|
16,31,32,34
|
|
|
|
1,303,535
|
|
|
|
581,697
|
|
|
Long-term unearned revenue
|
|
|
|
|
|
|
2,600
|
|
|
|
2,842
|
|
|
Defined benefit liabilities
|
|
|
19
|
|
|
|
150,773
|
|
|
|
98,856
|
|
|
Long-term derivative financial liabilities
|
|
|
20,31,32
|
|
|
|
106,607
|
|
|
|
89,296
|
|
|
Long-term provisions
|
|
|
17
|
|
|
|
36,951
|
|
|
|
29,217
|
|
|
Deferred tax liabilities
|
|
|
29
|
|
|
|
482,177
|
|
|
|
538,114
|
|
|
Other
non-current
liabilities
|
|
|
31,32
|
|
|
|
46,178
|
|
|
|
50,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Non-Current
Liabilities
|
|
|
|
|
|
|
8,618,310
|
|
|
|
7,950,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
14,011,518
|
|
|
|
13,207,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
1,21
|
|
|
|
44,639
|
|
|
|
44,639
|
|
|
Capital surplus and others
|
|
|
21,22,23
|
|
|
|
192,098
|
|
|
|
189,510
|
|
|
Retained earnings
|
|
|
24
|
|
|
|
15,469,391
|
|
|
|
15,007,627
|
|
|
Reserves
|
|
|
25
|
|
|
|
(328,654
|
)
|
|
|
9,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the Parent Company
|
|
|
|
|
|
|
15,377,474
|
|
|
|
15,251,079
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
166,713
|
|
|
|
123,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders’ Equity
|
|
|
|
|
|
|
15,544,187
|
|
|
|
15,374,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders’ Equity
|
|
|
|
|
|
W
|
29,555,705
|
|
|
|
28,581,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
4
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Income
For the three and nine-month periods ended September 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won except for per share data)
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
Note
|
|
|
Three-month
period ended
|
|
|
Nine-month
period ended
|
|
|
Three-month
period ended
|
|
|
Nine-month
period ended
|
|
|
Operating revenue:
|
|
|
4,33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
W
|
4,243,804
|
|
|
|
12,739,556
|
|
|
|
4,261,360
|
|
|
|
12,757,385
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor
|
|
|
|
|
|
|
448,799
|
|
|
|
1,391,385
|
|
|
|
426,408
|
|
|
|
1,445,270
|
|
|
Commissions
|
|
|
|
|
|
|
1,314,583
|
|
|
|
3,965,062
|
|
|
|
1,274,460
|
|
|
|
3,883,758
|
|
|
Depreciation and amortization
|
|
|
4
|
|
|
|
733,040
|
|
|
|
2,169,642
|
|
|
|
719,126
|
|
|
|
2,115,573
|
|
|
Network interconnection
|
|
|
|
|
|
|
264,460
|
|
|
|
783,816
|
|
|
|
236,009
|
|
|
|
710,118
|
|
|
Leased line
|
|
|
|
|
|
|
91,472
|
|
|
|
302,443
|
|
|
|
97,257
|
|
|
|
293,647
|
|
|
Advertising
|
|
|
|
|
|
|
103,897
|
|
|
|
299,476
|
|
|
|
92,928
|
|
|
|
290,366
|
|
|
Rent
|
|
|
|
|
|
|
130,104
|
|
|
|
388,905
|
|
|
|
125,224
|
|
|
|
364,712
|
|
|
Cost of products that have been resold
|
|
|
|
|
|
|
417,394
|
|
|
|
1,295,574
|
|
|
|
477,432
|
|
|
|
1,418,282
|
|
|
Others
|
|
|
26
|
|
|
|
315,757
|
|
|
|
909,464
|
|
|
|
321,888
|
|
|
|
929,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,819,506
|
|
|
|
11,505,767
|
|
|
|
3,770,732
|
|
|
|
11,451,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
4
|
|
|
|
424,298
|
|
|
|
1,233,789
|
|
|
|
490,628
|
|
|
|
1,306,154
|
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
4,28
|
|
|
|
34,933
|
|
|
|
411,337
|
|
|
|
31,813
|
|
|
|
93,115
|
|
|
Finance costs
|
|
|
4,28
|
|
|
|
(89,509
|
)
|
|
|
(241,447
|
)
|
|
|
(88,242
|
)
|
|
|
(259,282
|
)
|
|
Gains relating to investments in associates and joint ventures, net
|
|
|
4,10
|
|
|
|
112,005
|
|
|
|
228,813
|
|
|
|
173,955
|
|
|
|
626,278
|
|
|
Other
non-operating
income
|
|
|
4,27
|
|
|
|
12,125
|
|
|
|
53,449
|
|
|
|
4,643
|
|
|
|
20,006
|
|
|
Other
non-operating
expenses
|
|
|
4,27
|
|
|
|
(62,679
|
)
|
|
|
(153,894
|
)
|
|
|
(57,955
|
)
|
|
|
(155,824
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
4
|
|
|
|
431,173
|
|
|
|
1,532,047
|
|
|
|
554,842
|
|
|
|
1,630,447
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
29
|
|
|
|
109,060
|
|
|
|
346,646
|
|
|
|
173,045
|
|
|
|
408,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
W
|
322,113
|
|
|
|
1,185,401
|
|
|
|
381,797
|
|
|
|
1,222,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent Company
|
|
|
|
|
|
W
|
325,102
|
|
|
|
1,187,084
|
|
|
|
382,251
|
|
|
|
1,222,585
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
(2,989
|
)
|
|
|
(1,683
|
)
|
|
|
(454
|
)
|
|
|
(153
|
)
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (in won)
|
|
|
|
|
|
W
|
4,604
|
|
|
|
16,693
|
|
|
|
5,263
|
|
|
|
16,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements.
5
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
For the three and nine-month periods ended September 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
Note
|
|
|
Three-month
period ended
|
|
|
Nine-month
period ended
|
|
|
Three-month
period ended
|
|
|
Nine-month
period ended
|
|
|
Profit for the period
|
|
|
|
|
|
W
|
322,113
|
|
|
|
1,185,401
|
|
|
|
381,797
|
|
|
|
1,222,432
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to profit or loss, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit liabilities
|
|
|
19
|
|
|
|
678
|
|
|
|
(10,959
|
)
|
|
|
(4,472
|
)
|
|
|
(7,564
|
)
|
|
Items that are or may be reclassified subsequently to profit or loss, net of
taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized fair value of
available-for-sale
financial assets
|
|
|
25
|
|
|
|
30,903
|
|
|
|
(159,646
|
)
|
|
|
(62,971
|
)
|
|
|
(9,923
|
)
|
|
Net change in other comprehensive income of investments in associates and joint ventures
|
|
|
25
|
|
|
|
(96,142
|
)
|
|
|
(127,296
|
)
|
|
|
24,463
|
|
|
|
52,343
|
|
|
Net change in unrealized fair value of derivatives
|
|
|
20,25
|
|
|
|
(8,420
|
)
|
|
|
(14,349
|
)
|
|
|
5,427
|
|
|
|
(15,246
|
)
|
|
Foreign currency translations differences for foreign operations
|
|
|
25
|
|
|
|
(27,534
|
)
|
|
|
(41,423
|
)
|
|
|
30,790
|
|
|
|
40,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) for the period, net of taxes
|
|
|
|
|
|
|
(100,515
|
)
|
|
|
(353,673
|
)
|
|
|
(6,763
|
)
|
|
|
59,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
|
|
|
|
W
|
221,598
|
|
|
|
831,728
|
|
|
|
375,034
|
|
|
|
1,282,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent Company
|
|
|
|
|
|
W
|
229,550
|
|
|
|
838,319
|
|
|
|
374,872
|
|
|
|
1,279,604
|
|
|
Non-controlling
interests
|
|
|
|
|
|
|
(7,952
|
)
|
|
|
(6,591
|
)
|
|
|
162
|
|
|
|
2,646
|
|
See accompanying notes to the condensed consolidated interim financial statements.
6
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Changes in Equity
For the nine-month periods ended September 30, 2016 and 2015
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controlling Interest
|
|
|
Non-
controlling
interests
|
|
|
Total equity
|
|
|
|
|
Share capital
|
|
|
Capital surplus
(deficit) and
others
|
|
|
Retained
earnings
|
|
|
Reserves
|
|
|
Sub-total
|
|
|
|
|
Balance at January 1, 2015
|
|
W
|
44,639
|
|
|
|
277,998
|
|
|
|
14,188,591
|
|
|
|
(4,489
|
)
|
|
|
14,506,739
|
|
|
|
741,531
|
|
|
|
15,248,270
|
|
|
Total comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
1,222,585
|
|
|
|
—
|
|
|
|
1,222,585
|
|
|
|
(153
|
)
|
|
|
1,222,432
|
|
|
Other comprehensive income (loss)
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,477
|
)
|
|
|
63,496
|
|
|
|
57,019
|
|
|
|
2,799
|
|
|
|
59,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,216,108
|
|
|
|
63,496
|
|
|
|
1,279,604
|
|
|
|
2,646
|
|
|
|
1,282,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
—
|
|
|
|
—
|
|
|
|
(668,494
|
)
|
|
|
—
|
|
|
|
(668,494
|
)
|
|
|
(143
|
)
|
|
|
(668,637
|
)
|
|
Interest on hybrid bond
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
Treasury stocks
|
|
|
—
|
|
|
|
425,744
|
|
|
|
—
|
|
|
|
—
|
|
|
|
425,744
|
|
|
|
—
|
|
|
|
425,744
|
|
|
Changes in consolidation scope
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5,226
|
)
|
|
|
(5,226
|
)
|
|
Changes in ownership in subsidiaries
|
|
|
—
|
|
|
|
(27,508
|
)
|
|
|
(832
|
)
|
|
|
(3,286
|
)
|
|
|
(31,626
|
)
|
|
|
(608,585
|
)
|
|
|
(640,211
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
398,236
|
|
|
|
(677,746
|
)
|
|
|
(3,286
|
)
|
|
|
(282,796
|
)
|
|
|
(613,954
|
)
|
|
|
(896,750
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2015
|
|
W
|
44,639
|
|
|
|
676,234
|
|
|
|
14,726,953
|
|
|
|
55,721
|
|
|
|
15,503,547
|
|
|
|
130,223
|
|
|
|
15,633,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
W
|
44,639
|
|
|
|
189,510
|
|
|
|
15,007,627
|
|
|
|
9,303
|
|
|
|
15,251,079
|
|
|
|
123,017
|
|
|
|
15,374,096
|
|
|
Total comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
—
|
|
|
|
—
|
|
|
|
1,187,084
|
|
|
|
—
|
|
|
|
1,187,084
|
|
|
|
(1,683
|
)
|
|
|
1,185,401
|
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
(10,808
|
)
|
|
|
(337,957
|
)
|
|
|
(348,765
|
)
|
|
|
(4,908
|
)
|
|
|
(353,673
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,176,276
|
|
|
|
(337,957
|
)
|
|
|
838,319
|
|
|
|
(6,591
|
)
|
|
|
831,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
—
|
|
|
|
—
|
|
|
|
(706,092
|
)
|
|
|
—
|
|
|
|
(706,092
|
)
|
|
|
(300
|
)
|
|
|
(706,392
|
)
|
|
Interest on hybrid bond
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
Changes in ownership in subsidiaries
|
|
|
—
|
|
|
|
2,588
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,588
|
|
|
|
50,587
|
|
|
|
53,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
2,588
|
|
|
|
(714,512
|
)
|
|
|
—
|
|
|
|
(711,924
|
)
|
|
|
50,287
|
|
|
|
(661,637
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2016
|
|
W
|
44,639
|
|
|
|
192,098
|
|
|
|
15,469,391
|
|
|
|
(328,654
|
)
|
|
|
15,377,474
|
|
|
|
166,713
|
|
|
|
15,544,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements
.
7
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine-month periods ended September 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Note
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
W
|
1,185,401
|
|
|
|
1,222,432
|
|
|
Adjustments for income and expenses
|
|
|
35
|
|
|
|
2,410,078
|
|
|
|
2,361,343
|
|
|
Changes in assets and liabilities related to operating activities
|
|
|
35
|
|
|
|
(478,564
|
)
|
|
|
(693,307
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
3,116,915
|
|
|
|
2,890,468
|
|
|
Interest received
|
|
|
|
|
|
|
38,040
|
|
|
|
32,386
|
|
|
Dividends received
|
|
|
|
|
|
|
97,336
|
|
|
|
62,231
|
|
|
Interest paid
|
|
|
|
|
|
|
(174,812
|
)
|
|
|
(202,508
|
)
|
|
Income tax paid
|
|
|
|
|
|
|
(367,200
|
)
|
|
|
(138,634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
2,710,279
|
|
|
|
2,643,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash inflows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in short-term financial instruments, net
|
|
|
|
|
|
|
175,346
|
|
|
|
16,366
|
|
|
Decrease in short-term investment securities, net
|
|
|
|
|
|
|
—
|
|
|
|
60,158
|
|
|
Collection of short-term loans
|
|
|
|
|
|
|
142,048
|
|
|
|
343,472
|
|
|
Decrease in long-term financial instruments
|
|
|
|
|
|
|
27
|
|
|
|
6,764
|
|
|
Proceeds from disposal of long-term investment securities
|
|
|
|
|
|
|
249,481
|
|
|
|
118,199
|
|
|
Proceeds from disposal of investments in associates and joint ventures
|
|
|
|
|
|
|
45,908
|
|
|
|
187,791
|
|
|
Proceeds from disposal of property and equipment
|
|
|
|
|
|
|
14,200
|
|
|
|
26,612
|
|
|
Proceeds from disposal of intangible assets
|
|
|
|
|
|
|
10,487
|
|
|
|
2,005
|
|
|
Proceeds from disposal of assets held for sale
|
|
|
|
|
|
|
—
|
|
|
|
1,007
|
|
|
Collection of long-term loans
|
|
|
|
|
|
|
1,327
|
|
|
|
1,772
|
|
|
Decrease in deposits
|
|
|
|
|
|
|
13,421
|
|
|
|
13,670
|
|
|
Proceeds from disposal of other
non-current
assets
|
|
|
|
|
|
|
257
|
|
|
|
2,783
|
|
|
Increase in cash due to acquisition of subsidiaries
|
|
|
|
|
|
|
—
|
|
|
|
10,148
|
|
|
Receipt of government grants
|
|
|
|
|
|
|
300
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
652,802
|
|
|
|
790,747
|
|
|
Cash outflows for investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in short-term investment securities, net
|
|
|
|
|
|
|
(110,000
|
)
|
|
|
—
|
|
|
Increase in short-term loans
|
|
|
|
|
|
|
(150,054
|
)
|
|
|
(302,676
|
)
|
|
Increase in long-term loans
|
|
|
|
|
|
|
(30,857
|
)
|
|
|
(15,706
|
)
|
|
Increase in long-term financial instruments
|
|
|
|
|
|
|
(237
|
)
|
|
|
(10,007
|
)
|
|
Acquisition of long-term investment securities
|
|
|
|
|
|
|
(27,741
|
)
|
|
|
(214,458
|
)
|
|
Acquisition of investments in associates and joint ventures
|
|
|
|
|
|
|
(101,901
|
)
|
|
|
(47,825
|
)
|
|
Acquisition of property and equipment
|
|
|
|
|
|
|
(1,431,744
|
)
|
|
|
(1,724,586
|
)
|
|
Acquisition of intangible assets
|
|
|
|
|
|
|
(407,031
|
)
|
|
|
(61,098
|
)
|
|
Increase in deposits
|
|
|
|
|
|
|
(10,882
|
)
|
|
|
(11,247
|
)
|
|
Increase in other
non-current
assets
|
|
|
|
|
|
|
(763
|
)
|
|
|
—
|
|
|
Acquisition of businesses, net of cash acquired
|
|
|
|
|
|
|
(4,498
|
)
|
|
|
(13,957
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
(2,275,708
|
)
|
|
|
(2,401,560
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
W
|
(1,622,906
|
)
|
|
|
(1,610,813
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements
.
8
SK TELECOM CO., LTD. and Subsidiaries
Condensed Consolidated Statements of Cash Flows, Continued
For
the nine-month periods ended September 30, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Cash inflows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from short-term borrowings, net
|
|
W
|
—
|
|
|
|
28,400
|
|
|
Proceeds from issuance of debentures
|
|
|
607,474
|
|
|
|
946,330
|
|
|
Cash inflows from settlement of derivatives
|
|
|
—
|
|
|
|
361
|
|
|
Cash inflows related to equity interest transactions
|
|
|
49,060
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
656,534
|
|
|
|
975,091
|
|
|
Cash outflows for financing activities:
|
|
|
|
|
|
|
|
|
|
Decrease in short-term borrowings, net
|
|
|
(259,173
|
)
|
|
|
—
|
|
|
Repayments of long-term account payables-other
|
|
|
(122,062
|
)
|
|
|
(191,018
|
)
|
|
Repayments of debentures
|
|
|
(530,000
|
)
|
|
|
(480,000
|
)
|
|
Repayments of long-term borrowings
|
|
|
(21,681
|
)
|
|
|
(13,489
|
)
|
|
Cash outflows from settlement of derivatives
|
|
|
(144
|
)
|
|
|
(475
|
)
|
|
Payments of finance lease liabilities
|
|
|
(26
|
)
|
|
|
(2,698
|
)
|
|
Payments of dividends
|
|
|
(706,092
|
)
|
|
|
(668,494
|
)
|
|
Payments of interest on hybrid bond
|
|
|
(8,420
|
)
|
|
|
(8,420
|
)
|
|
Cash outflows related to equity interest transactions
|
|
|
—
|
|
|
|
(218,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
(1,647,598
|
)
|
|
|
(1,582,772
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(991,064
|
)
|
|
|
(607,681
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
96,309
|
|
|
|
425,449
|
|
|
Cash and cash equivalents at beginning of the period
|
|
|
768,922
|
|
|
|
834,429
|
|
|
Effects of exchange rate changes on cash and cash equivalents
|
|
|
(6,009
|
)
|
|
|
3,870
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period
|
|
W
|
859,222
|
|
|
|
1,263,748
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the condensed consolidated interim financial statements
.
9
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
SK Telecom Co., Ltd. (“the Parent Company”) was incorporated in March 1984
under the laws of the Republic of Korea (“Korea”) to provide cellular telephone communication services in Korea. The Parent Company mainly provides wireless telecommunications services in Korea. The Head office of the Parent Company is
located at 65,
Eulji-ro,
Jung-gu,
Seoul, Korea.
The Parent
Company’s common shares and depositary receipts (DRs) are listed on the Stock Market of Korea Exchange, the New York Stock Exchange and the London Stock Exchange. As of September 30, 2016, the Parent Company’s total issued shares are
held by the following shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares
|
|
|
Percentage of
total shares issued (%)
|
|
|
SK Holdings Co., Ltd.
|
|
|
20,363,452
|
|
|
|
25.22
|
|
|
National Pension Service, other institutional investors and other minority stockholders
|
|
|
50,245,708
|
|
|
|
62.23
|
|
|
Treasury stock
|
|
|
10,136,551
|
|
|
|
12.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80,745,711
|
|
|
|
100.00
|
|
|
|
|
|
|
|
|
|
|
|
These condensed consolidated interim financial statements comprise the Parent Company and its subsidiaries
(together referred to as the “Group” and individuals as “Group entities”). SK Holdings Co., Ltd. is the ultimate controlling entity of the Parent Company.
The list of subsidiaries as of September 30, 2016 and
December 31, 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)
|
|
|
Subsidiary
|
|
Location
|
|
Primary business
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
SK Telink Co., Ltd.
|
|
Korea
|
|
Telecommunication and MVNO(Mobile Virtual Network Operator) service
|
|
|
83.5
|
|
|
|
83.5
|
|
|
M&Service Co., Ltd.(*8)
|
|
Korea
|
|
Database and internet website service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Communications Co., Ltd.
|
|
Korea
|
|
Internet website services
|
|
|
64.5
|
|
|
|
64.5
|
|
|
Stonebridge Cinema Fund
|
|
Korea
|
|
Investment
|
|
|
55.2
|
|
|
|
55.2
|
|
|
Commerce Planet Co., Ltd.(*7)
|
|
Korea
|
|
Online shopping mall operation agency
|
|
|
—
|
|
|
|
100.0
|
|
|
SK Broadband Co., Ltd.(*1)
|
|
Korea
|
|
Telecommunication services
|
|
|
100.0
|
|
|
|
100.0
|
|
|
K-net
Culture and Contents Venture Fund
|
|
Korea
|
|
Investment
|
|
|
59.0
|
|
|
|
59.0
|
|
|
Fitech Focus Limited Partnership II
|
|
Korea
|
|
Investment
|
|
|
66.7
|
|
|
|
66.7
|
|
|
Open Innovation Fund
|
|
Korea
|
|
Investment
|
|
|
98.9
|
|
|
|
98.9
|
|
|
PS&Marketing Corporation
|
|
Korea
|
|
Communications device retail business
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Service Ace Co., Ltd.
|
|
Korea
|
|
Customer center management service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Service Top Co., Ltd.
|
|
Korea
|
|
Customer center management service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Network O&S Co., Ltd.
|
|
Korea
|
|
Base station maintenance service
|
|
|
100.0
|
|
|
|
100.0
|
|
10
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
1.
|
Reporting Entity, Continued
|
|
|
(2)
|
List of subsidiaries, Continued
|
The list of subsidiaries as of September 30, 2016 and December 31, 2015 is as
follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)
|
|
|
Subsidiary
|
|
Location
|
|
Primary business
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
SK Planet Co., Ltd.(*6)
|
|
Korea
|
|
Telecommunication service
|
|
|
98.1
|
|
|
|
100.0
|
|
|
Neosnetworks Co.,Ltd.(*2)
|
|
Korea
|
|
Security systems service
|
|
|
83.9
|
|
|
|
83.9
|
|
|
IRIVER LIMITED(*3)
|
|
Korea
|
|
Manufacturing digital audio players and other portable media devices.
|
|
|
48.9
|
|
|
|
49.0
|
|
|
iriver Enterprise Ltd.(*9)
|
|
Hong
Kong
|
|
Management of Chinese subsidiaries
|
|
|
100.0
|
|
|
|
100.0
|
|
|
iriver America Inc. (*9)
|
|
USA
|
|
Marketing and sales in North America
|
|
|
100.0
|
|
|
|
100.0
|
|
|
iriver Inc. (*9)
|
|
USA
|
|
Marketing and sales in North America
|
|
|
100.0
|
|
|
|
100.0
|
|
|
iriver China Co., Ltd. (*9)
|
|
China
|
|
Sales and manufacturing MP3 and 4 in China
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Dongguan iriver Electronics Co., Ltd. (*9)
|
|
China
|
|
Sales and manufacturing
e-book
in China
|
|
|
100.0
|
|
|
|
100.0
|
|
|
groovers Japan Co., Ltd. (*9)
|
|
Japan
|
|
Digital music contents sourcing and distribution service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Telecom China Holdings Co., Ltd.
|
|
China
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Global Healthcare Business Group., Ltd.
|
|
Hong
Kong
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Planet Japan, K. K.(*8)
|
|
Japan
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SKT Vietnam PTE. Ltd.
|
|
Singapore
|
|
Telecommunication service
|
|
|
73.3
|
|
|
|
73.3
|
|
|
SK Planet Global PTE. Ltd. (*8)
|
|
Singapore
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SKP GLOBAL HOLDINGS PTE. LTD.(*8)
|
|
Singapore
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SKT Americas, Inc.
|
|
USA
|
|
Information gathering and consulting
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SKP America LLC. (*8)
|
|
USA
|
|
Digital contents sourcing service
|
|
|
100.0
|
|
|
|
100.0
|
|
|
YTK Investment Ltd.
|
|
Cayman
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Atlas Investment
|
|
Cayman
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Telecom Innovation Fund, L.P. (formerly, Technology Innovation Partners, LP.) (*5)
|
|
USA
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK Telecom China Fund I L.P.
|
|
Cayman
|
|
Investment
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Entrix Co., Ltd.
|
|
Korea
|
|
Cloud streaming services
|
|
|
100.0
|
|
|
|
100.0
|
|
|
SK techx Co., Ltd.(*7)
|
|
Korea
|
|
System software development and supply
|
|
|
100.0
|
|
|
|
—
|
|
|
One Store Co., Ltd.(*7)
|
|
Korea
|
|
Telecommunication service
|
|
|
65.5
|
|
|
|
—
|
|
11
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
1.
|
Reporting Entity, Continued
|
|
|
(2)
|
List of subsidiaries, Continued
|
The list of subsidiaries as of September 30, 2016 and December 31, 2015 is as
follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%)
|
|
|
Subsidiary
|
|
Location
|
|
Primary business
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
shopkick Management Company, Inc.(*4,8)
|
|
USA
|
|
Investment
|
|
|
100.0
|
|
|
|
95.2
|
|
|
shopkick, Inc. (*8)
|
|
USA
|
|
Mileage-based online transaction application development
|
|
|
100.0
|
|
|
|
100.0
|
|
|
Planet11
E-commerce
Solutions India Pvt.
Ltd.(*7,8)
|
|
India
|
|
Electronic commerce platform service
|
|
|
100.0
|
|
|
|
—
|
|
|
11street (Thailand) Co., Ltd. (*7,8)
|
|
Thailand
|
|
Electronic commerce
|
|
|
100.0
|
|
|
|
—
|
|
|
(*1)
|
On November 2, 2015, the board of directors of the Parent Company entered into a share purchase agreement to acquire 30%(23,234,060 shares) of the issued and outstanding common shares of CJ Hello Vision Co., Ltd.
(“CJ Hello Vision”) from CJ O Shopping Co., Ltd. (“CJ O Shopping”) for an aggregate purchase price of
W
500,000 million. The agreement stated government’s approval as prerequisite.
|
On November 2, 2015, the board of directors of SK Broadband Co., Ltd. (“SK Broadband”), a subsidiary of the Parent Company,
approved the merger of SK Broadband into CJ Hello Vision, and then SK Broadband entered into a merger agreement with CJ Hello Vision with government’s approval as prerequisite.
After the announcement of disapproval of proposed takeover of CJ Hello Vision by the Fair Trade Commission (FTC) on July 18, 2016, the
Parent Company announced the revocation of share purchase agreement to CJ O Shopping while SK Broadband withdrew from merger agreement with CJ Hello Vision on July 25, 2016 as execution of the share purchase agreement with CJ O Shopping and
merger agreement between SK Broadband and CJ Hello Vision became objectively impossible.
|
(*2)
|
Due to the shareholders’ agreement which grants put option to the
non-controlling
shareholders, this entity is consolidated as a wholly owned subsidiary in the consolidated
financial statements.
|
|
(*3)
|
Although the Group has less than 50% of the voting rights of IRIVER LIMITED, the Group is considered to have control over IRIVER LIMITED since the Group holds significantly more voting rights than any other vote holder
or organized group of vote holders, and the other shareholdings are widely dispersed.
|
|
(*4)
|
During the nine-month period ended September 30, 2016, the Group acquired all of the
non-controlling
interests in shopkick Management Company, Inc.
|
|
(*5)
|
Changed its name to SK Telecom Innovation Fund, L.P. during the nine-month period ended September 30, 2016.
|
|
(*6)
|
The ownership interest changed due to the shares issued to employee stock ownership association by SK Planet Co., Ltd. during the nine-month period ended September 30, 2016.
|
12
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
1.
|
Reporting Entity, Continued
|
|
|
(2)
|
List of subsidiaries, Continued
|
The list of subsidiaries as of September 30, 2016 and December 31, 2015 is as
follows, Continued:
|
(*7)
|
Changes in subsidiaries are explained in Note
1-(4).
|
|
(*8)
|
The ownership interest owned by SK Planet Co., Ltd.
|
|
(*9)
|
The ownership interest owned by IRIVER LIMITED.
|
|
|
(3)
|
Condensed financial information of subsidiaries
|
Condensed financial information of
subsidiaries as of and for the nine-month period ended September 30, 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
Subsidiary
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total
equity
|
|
|
Revenue
|
|
|
Profit
(loss)
|
|
|
SK Telink Co., Ltd.
|
|
W
|
350,913
|
|
|
|
103,939
|
|
|
|
246,974
|
|
|
|
309,427
|
|
|
|
54,596
|
|
|
M&Service Co., Ltd.
|
|
|
96,647
|
|
|
|
47,601
|
|
|
|
49,046
|
|
|
|
121,327
|
|
|
|
3,427
|
|
|
SK Communications Co., Ltd.
|
|
|
139,911
|
|
|
|
30,079
|
|
|
|
109,832
|
|
|
|
44,345
|
|
|
|
(7,683
|
)
|
|
SK Broadband Co., Ltd.
|
|
|
3,314,417
|
|
|
|
2,173,306
|
|
|
|
1,141,111
|
|
|
|
2,173,052
|
|
|
|
17,216
|
|
|
PS&Marketing Corporation
|
|
|
542,002
|
|
|
|
329,037
|
|
|
|
212,965
|
|
|
|
1,187,840
|
|
|
|
3,757
|
|
|
Service Ace Co., Ltd.
|
|
|
68,786
|
|
|
|
41,317
|
|
|
|
27,469
|
|
|
|
149,018
|
|
|
|
3,271
|
|
|
Service Top Co., Ltd.
|
|
|
60,506
|
|
|
|
41,020
|
|
|
|
19,486
|
|
|
|
140,643
|
|
|
|
4,075
|
|
|
Network O&S Co., Ltd.
|
|
|
63,748
|
|
|
|
29,246
|
|
|
|
34,502
|
|
|
|
154,165
|
|
|
|
4,968
|
|
|
SK Planet Co., Ltd.(*1)
|
|
|
1,978,957
|
|
|
|
753,330
|
|
|
|
1,225,627
|
|
|
|
886,138
|
|
|
|
94,457
|
|
|
IRIVER LIMITED(*2)
|
|
|
56,626
|
|
|
|
15,092
|
|
|
|
41,534
|
|
|
|
40,837
|
|
|
|
(6,454
|
)
|
|
SKP America LLC.
|
|
|
385,930
|
|
|
|
3
|
|
|
|
385,927
|
|
|
|
—
|
|
|
|
1,065
|
|
|
SK techx Co., Ltd.
|
|
|
217,711
|
|
|
|
51,006
|
|
|
|
166,705
|
|
|
|
136,336
|
|
|
|
32,816
|
|
|
One Store Co., Ltd.
|
|
|
148,940
|
|
|
|
46,330
|
|
|
|
102,610
|
|
|
|
68,933
|
|
|
|
(11,584
|
)
|
|
shopkick Management Company, Inc.
|
|
|
309,168
|
|
|
|
—
|
|
|
|
309,168
|
|
|
|
—
|
|
|
|
(85
|
)
|
|
shopkick, Inc.
|
|
|
22,593
|
|
|
|
33,955
|
|
|
|
(11,362
|
)
|
|
|
27,707
|
|
|
|
(29,445
|
)
|
|
(*1)
|
The condensed financial information of SK Planet Co., Ltd. includes
pre-merger
income and expenses of Commerce Planet Co., Ltd. prior to the merger date of February 1, 2016.
|
|
(*2)
|
The condensed financial information of IRIVER LIMITED includes financial information of iriver Enterprise Ltd., iriver America Inc., iriver Inc., iriver China Co., Ltd., Dongguan iriver Electronics Co., Ltd. and
groovers Japan Co., Ltd., subsidiaries of IRIVER LIMITED.
|
13
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
1.
|
Reporting Entity, Continued
|
|
|
(3)
|
Condensed financial information of subsidiaries, Continued
|
Condensed financial information of subsidiaries as of and for the year ended
December 31, 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
Subsidiary
|
|
Total
assets
|
|
|
Total
liabilities
|
|
|
Total
equity
|
|
|
Revenue
|
|
|
Profit
(loss)
|
|
|
SK Telink Co., Ltd.
|
|
W
|
309,955
|
|
|
|
113,878
|
|
|
|
196,077
|
|
|
|
431,368
|
|
|
|
55,781
|
|
|
M&Service Co., Ltd.
|
|
|
89,452
|
|
|
|
42,414
|
|
|
|
47,038
|
|
|
|
143,255
|
|
|
|
5,549
|
|
|
SK Communications Co., Ltd.
|
|
|
152,496
|
|
|
|
35,014
|
|
|
|
117,482
|
|
|
|
80,147
|
|
|
|
(14,826
|
)
|
|
SK Broadband Co., Ltd.
|
|
|
3,291,707
|
|
|
|
2,170,484
|
|
|
|
1,121,223
|
|
|
|
2,731,344
|
|
|
|
10,832
|
|
|
PS&Marketing Corporation
|
|
|
509,580
|
|
|
|
300,364
|
|
|
|
209,216
|
|
|
|
1,791,944
|
|
|
|
4,835
|
|
|
Service Ace Co., Ltd.
|
|
|
65,424
|
|
|
|
34,240
|
|
|
|
31,184
|
|
|
|
206,338
|
|
|
|
2,778
|
|
|
Service Top Co., Ltd.
|
|
|
61,897
|
|
|
|
38,482
|
|
|
|
23,415
|
|
|
|
197,092
|
|
|
|
4,396
|
|
|
Network O&S Co., Ltd.
|
|
|
77,426
|
|
|
|
48,069
|
|
|
|
29,357
|
|
|
|
210,676
|
|
|
|
6,466
|
|
|
SK Planet Co., Ltd.
|
|
|
2,406,988
|
|
|
|
784,631
|
|
|
|
1,622,357
|
|
|
|
1,624,630
|
|
|
|
(75,111
|
)
|
|
IRIVER LIMITED(*)
|
|
|
60,434
|
|
|
|
12,377
|
|
|
|
48,057
|
|
|
|
55,637
|
|
|
|
635
|
|
|
SKP America LLC.
|
|
|
380,141
|
|
|
|
—
|
|
|
|
380,141
|
|
|
|
—
|
|
|
|
791
|
|
|
Entrix Co., Ltd.
|
|
|
30,876
|
|
|
|
3,186
|
|
|
|
27,690
|
|
|
|
4,895
|
|
|
|
(1,826
|
)
|
|
shopkick Management Company, Inc.
|
|
|
306,248
|
|
|
|
7
|
|
|
|
306,241
|
|
|
|
7
|
|
|
|
(2,455
|
)
|
|
shopkick, Inc.
|
|
|
25,388
|
|
|
|
32,243
|
|
|
|
(6,855
|
)
|
|
|
33,851
|
|
|
|
(52,390
|
)
|
|
(*)
|
The condensed financial information of IRIVER LIMITED includes financial information of iriver Enterprise Ltd., iriver America Inc., iriver Inc., iriver China Co., Ltd., Dongguan iriver Electronics Co., Ltd. and
groovers Japan Co., Ltd., subsidiaries of IRIVER LIMITED.
|
|
|
(4)
|
Changes in subsidiaries
|
The list of subsidiaries that were newly included in consolidation
during the nine-month period ended September 30, 2016 is as follows:
|
|
|
|
|
Subsidiary
|
|
Reason
|
|
SK techx Co., Ltd.
|
|
Established by
spin-off
from SK Planet Co., Ltd., a
subsidiary of the Parent Company.
|
|
|
|
|
One Store Co., Ltd.
|
|
Established by
spin-off
from SK Planet Co., Ltd., a
subsidiary of the Parent Company.
|
|
|
|
|
Planet11
E-commerce
Solutions
India Pvt.
Ltd.
|
|
Acquired by SK Planet Co., Ltd., a subsidiary of the Parent Company.
|
|
|
|
|
11street (Thailand) Co., Ltd.
|
|
Established from SK Planet Co., Ltd., a subsidiary of the Parent Company.
|
The following subsidiary was excluded from the Group during the nine-month period ended September 30,
2016:
|
|
|
|
|
Subsidiary
|
|
Reason
|
|
Commerce Planet Co., Ltd.
|
|
Merged into SK Planet Co., Ltd., a subsidiary of the Parent Company
|
14
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
1.
|
Reporting Entity, Continued
|
|
|
(5)
|
The information of significant
non-controlling
interests of the Group as of and for the nine-month period ended September 30, 2016, and as of and for the year ended
December 31, 2015 is as follows. There were no dividends paid during the nine-month period ended September 30, 2016 and the year ended December 31, 2015 by the subsidiary of which
non-controlling
interests are significant.
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
|
|
SK Communications
Co., Ltd.
|
|
|
One Store Co., Ltd.
|
|
|
Ownership of
non-controlling
interests (%)
|
|
|
35.46
|
|
|
|
34.46
|
|
|
|
|
|
|
Current assets
|
|
W
|
81,161
|
|
|
|
106,247
|
|
|
Non-current
assets
|
|
|
58,750
|
|
|
|
42,693
|
|
|
Current liabilities
|
|
|
(27,995
|
)
|
|
|
(45,413
|
)
|
|
Non-current
liabilities
|
|
|
(2,084
|
)
|
|
|
(917
|
)
|
|
Net assets
|
|
|
109,832
|
|
|
|
102,610
|
|
|
Carrying amount of
non-controlling
interests
|
|
|
38,944
|
|
|
|
35,357
|
|
|
|
|
|
|
Revenue
|
|
W
|
44,345
|
|
|
|
68,933
|
|
|
Loss for the period
|
|
|
7,683
|
|
|
|
11,584
|
|
|
Total comprehensive loss
|
|
|
7,658
|
|
|
|
11,596
|
|
|
Loss attributable to
non-controlling
interests
|
|
|
2,724
|
|
|
|
3,127
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
W
|
(4,273
|
)
|
|
|
73,570
|
|
|
Net cash provided by investing activities
|
|
|
19,097
|
|
|
|
9,088
|
|
|
Net cash used in financing activities
|
|
|
—
|
|
|
|
(46
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
14,824
|
|
|
|
82,612
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
|
SK Communications
Co., Ltd.
|
|
|
Ownership of
non-controlling
interests (%)
|
|
|
35.46
|
|
|
|
|
|
Current assets
|
|
W
|
95,662
|
|
|
Non-current
assets
|
|
|
56,834
|
|
|
Current liabilities
|
|
|
(33,306
|
)
|
|
Non-current
liabilities
|
|
|
(1,708
|
)
|
|
Net assets
|
|
|
117,482
|
|
|
Carrying amount of
non-controlling
interests
|
|
|
41,659
|
|
|
|
|
|
Revenue
|
|
W
|
80,147
|
|
|
Loss for the period
|
|
|
14,826
|
|
|
Total comprehensive loss
|
|
|
16,698
|
|
|
Loss attributable to
non-controlling
interests
|
|
|
5,254
|
|
|
|
|
|
Net cash used in operating activities
|
|
W
|
(2,706
|
)
|
|
Net cash provided by investing activities
|
|
|
8,723
|
|
|
Net cash provided by financing activities
|
|
|
—
|
|
|
Net increase in cash and cash equivalents
|
|
|
6,017
|
|
15
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Statement of compliance
|
These condensed consolidated interim financial statements were
prepared in accordance with
K-IFRS
No. 1034,
Interim Financial Reporting
, as part of the period covered by the Group’s
K-IFRS
annual financial
statements. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since December 31, 2015. These condensed
consolidated interim financial statements do not include all of the disclosures required for full annual financial statements.
|
|
(2)
|
Use of estimates and judgments
|
1) Critical judgments, assumptions and estimation uncertainties
The preparation of the condensed consolidated interim financial statements in conformity with
K-IFRS
requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgments made by
management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as of and for the year ended December 31, 2015.
2) Fair value measurement
Group’s accounting policies and disclosures require the measurement of fair values, for both financial and
non-financial
assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for
overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the finance executive.
The
valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained
from the third parties to support the conclusion that such valuations meet the requirements of
K-IFRS,
including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized
into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
|
|
•
|
|
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
|
•
|
|
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
|
|
|
•
|
|
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
16
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
2.
|
Basis of Preparation, Continued
|
|
|
(2)
|
Use of estimates and judgments, Continued
|
If the inputs used to measure the fair value of an asset or a liability fall into different
levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers
between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Information about
assumptions used for fair value measurements are included in Note 32.
|
3.
|
Significant Accounting Policies
|
The accounting policies applied by the Group in these
condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2015.
The Group’s operating segments have been determined to be each
business unit which provides different services and merchandise. The Group’s reportable segments are: 1) cellular services, which include cellular voice service, wireless data service and wireless internet services, and 2) fixed-line
telecommunication services, which include telephone services, internet services, and leased line services. The other operating segments, which include the Group’s internet portal services and other operations, do not meet the quantitative
thresholds separately to be considered reportable segments and are collectively presented as Others.
|
|
(1)
|
Details of the segment information as of and for the nine-month period ended September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cellular
services
|
|
|
Fixed-line
Telecommu-
nication
services
|
|
|
Others
|
|
|
Sub-total
|
|
|
Adjustments
|
|
|
Total
|
|
|
Total revenue
|
|
W
|
10,923,701
|
|
|
|
2,482,479
|
|
|
|
1,394,602
|
|
|
|
14,800,782
|
|
|
|
(2,061,226
|
)
|
|
|
12,739,556
|
|
|
Inter-segment revenue
|
|
|
1,205,079
|
|
|
|
489,279
|
|
|
|
366,868
|
|
|
|
2,061,226
|
|
|
|
(2,061,226
|
)
|
|
|
—
|
|
|
External revenue
|
|
|
9,718,622
|
|
|
|
1,993,200
|
|
|
|
1,027,734
|
|
|
|
12,739,556
|
|
|
|
—
|
|
|
|
12,739,556
|
|
|
Depreciation and amortization
|
|
|
1,661,941
|
|
|
|
411,535
|
|
|
|
96,166
|
|
|
|
2,169,642
|
|
|
|
—
|
|
|
|
2,169,642
|
|
|
Operating income (loss)
|
|
|
1,404,043
|
|
|
|
103,243
|
|
|
|
(273,497
|
)
|
|
|
1,233,789
|
|
|
|
—
|
|
|
|
1,233,789
|
|
|
Finance income and costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169,890
|
|
|
Gain related to investments in associates and joint ventures, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
228,813
|
|
|
Other
non-operating
income and expenses, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(100,445
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,532,047
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
24,982,664
|
|
|
|
3,665,331
|
|
|
|
2,723,592
|
|
|
|
31,371,587
|
|
|
|
(1,815,882
|
)
|
|
|
29,555,705
|
|
|
Total liabilities
|
|
|
10,590,209
|
|
|
|
2,277,245
|
|
|
|
998,337
|
|
|
|
13,865,791
|
|
|
|
145,727
|
|
|
|
14,011,518
|
|
17
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
4.
|
Operating Segments, Continued
|
|
|
(2)
|
Details of the segment information as of and for the nine-month period ended September 30, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cellular
Services
|
|
|
Fixed-line
Telecommu-
nication
services
|
|
|
Others
|
|
|
Sub-total
|
|
|
Adjustments
|
|
|
Total
|
|
|
Total revenue
|
|
W
|
11,197,968
|
|
|
|
2,328,102
|
|
|
|
1,536,305
|
|
|
|
15,062,375
|
|
|
|
(2,304,990
|
)
|
|
|
12,757,385
|
|
|
Inter-segment revenue
|
|
|
1,288,867
|
|
|
|
470,496
|
|
|
|
545,627
|
|
|
|
2,304,990
|
|
|
|
(2,304,990
|
)
|
|
|
—
|
|
|
External revenue
|
|
|
9,909,101
|
|
|
|
1,857,606
|
|
|
|
990,678
|
|
|
|
12,757,385
|
|
|
|
—
|
|
|
|
12,757,385
|
|
|
Depreciation and amortization
|
|
|
1,616,493
|
|
|
|
394,646
|
|
|
|
104,434
|
|
|
|
2,115,573
|
|
|
|
—
|
|
|
|
2,115,573
|
|
|
Operating income (loss)
|
|
|
1,288,478
|
|
|
|
74,686
|
|
|
|
(57,010
|
)
|
|
|
1,306,154
|
|
|
|
—
|
|
|
|
1,306,154
|
|
|
Finance income and costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(166,167
|
)
|
|
Gain related to investments in subsidiaries, associates and joint ventures, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
626,278
|
|
|
Other
non-operating
income and expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(135,818
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,630,447
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
23,885,941
|
|
|
|
3,628,563
|
|
|
|
3,220,129
|
|
|
|
30,734,633
|
|
|
|
(2,175,913
|
)
|
|
|
28,558,720
|
|
|
Total liabilities
|
|
|
9,545,761
|
|
|
|
2,323,767
|
|
|
|
1,098,331
|
|
|
|
12,967,859
|
|
|
|
(42,909
|
)
|
|
|
12,924,950
|
|
Intersegment sales and purchases are conducted on an arms-length basis and eliminated on consolidation. The
Group principally operates its businesses in Korea and the revenue amounts earned outside of Korea are immaterial. Therefore, no entity-wide geographical information is presented.
No single customer contributed 10% or more to the Group’s total revenue for the nine-month periods ended September 30, 2016 and 2015.
Deposits which are restricted in use as of September 30, 2016
and December 31, 2015 are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Short-term financial instruments(*)
|
|
W
|
80,278
|
|
|
|
82,469
|
|
|
Long-term financial instruments(*)
|
|
|
10,636
|
|
|
|
10,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
90,914
|
|
|
|
93,065
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Financial instruments include charitable trust fund established by the Group. Profits from the fund are donated to charitable institutions. As of September 30, 2016, the funds cannot be withdrawn.
|
18
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
6.
|
Trade and Other Receivables
|
|
|
(1)
|
Details of trade and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
|
|
Gross
amount
|
|
|
Allowances for
doubtful
accounts
|
|
|
Carrying
amount
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
2,585,619
|
|
|
|
(260,746
|
)
|
|
|
2,324,873
|
|
|
Short-term loans
|
|
|
66,299
|
|
|
|
(597
|
)
|
|
|
65,702
|
|
|
Accounts receivable - other
|
|
|
1,339,044
|
|
|
|
(83,231
|
)
|
|
|
1,255,813
|
|
|
Accrued income
|
|
|
12,676
|
|
|
|
—
|
|
|
|
12,676
|
|
|
Others
|
|
|
1,807
|
|
|
|
—
|
|
|
|
1,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,005,445
|
|
|
|
(344,574
|
)
|
|
|
3,660,871
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
112,888
|
|
|
|
(24,408
|
)
|
|
|
88,480
|
|
|
Long-term accounts receivable - other
|
|
|
228,686
|
|
|
|
—
|
|
|
|
228,686
|
|
|
Guarantee deposits
|
|
|
301,998
|
|
|
|
—
|
|
|
|
301,998
|
|
|
Long-term accounts receivable - trade
|
|
|
23,890
|
|
|
|
(477
|
)
|
|
|
23,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
667,462
|
|
|
|
(24,885
|
)
|
|
|
642,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
4,672,907
|
|
|
|
(369,459
|
)
|
|
|
4,303,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
|
Gross
amount
|
|
|
Allowances for
doubtful
accounts
|
|
|
Carrying
amount
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable - trade
|
|
W
|
2,583,558
|
|
|
|
(238,691
|
)
|
|
|
2,344,867
|
|
|
Short-term loans
|
|
|
54,377
|
|
|
|
(482
|
)
|
|
|
53,895
|
|
|
Accounts receivable - other
|
|
|
752,731
|
|
|
|
(78,992
|
)
|
|
|
673,739
|
|
|
Accrued income
|
|
|
10,753
|
|
|
|
—
|
|
|
|
10,753
|
|
|
Others
|
|
|
1,861
|
|
|
|
—
|
|
|
|
1,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,403,280
|
|
|
|
(318,165
|
)
|
|
|
3,085,115
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans
|
|
|
87,501
|
|
|
|
(25,047
|
)
|
|
|
62,454
|
|
|
Long-term accounts receivable - other
|
|
|
2,420
|
|
|
|
—
|
|
|
|
2,420
|
|
|
Guarantee deposits
|
|
|
297,281
|
|
|
|
—
|
|
|
|
297,281
|
|
|
Long-term accounts receivable - trade
|
|
|
46,047
|
|
|
|
(804
|
)
|
|
|
45,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
433,249
|
|
|
|
(25,851
|
)
|
|
|
407,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,836,529
|
|
|
|
(344,016
|
)
|
|
|
3,492,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
6.
|
Trade and Other Receivables, Continued
|
|
|
(2)
|
Changes in allowances for doubtful accounts of trade and other receivables during the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Balance at January 1
|
|
W
|
344,016
|
|
|
|
328,191
|
|
|
Increase of bad debt allowances
|
|
|
40,299
|
|
|
|
51,425
|
|
|
Write-offs
|
|
|
(33,360
|
)
|
|
|
(58,100
|
)
|
|
Others
|
|
|
18,504
|
|
|
|
21,450
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30
|
|
W
|
369,459
|
|
|
|
342,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of overdue but not impaired, and impaired trade and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Neither overdue nor impaired
|
|
W
|
1,804,923
|
|
|
|
1,872,362
|
|
|
|
1,841,442
|
|
|
|
1,053,096
|
|
|
Overdue but not impaired
|
|
|
52,269
|
|
|
|
4,613
|
|
|
|
77,008
|
|
|
|
5,155
|
|
|
Impaired
|
|
|
752,317
|
|
|
|
186,423
|
|
|
|
711,155
|
|
|
|
148,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,609,509
|
|
|
|
2,063,398
|
|
|
|
2,629,605
|
|
|
|
1,206,924
|
|
|
Allowance for doubtful accounts
|
|
|
(261,223
|
)
|
|
|
(108,236
|
)
|
|
|
(239,495
|
)
|
|
|
(104,521
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,348,286
|
|
|
|
1,955,162
|
|
|
|
2,390,110
|
|
|
|
1,102,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group establishes allowances for doubtful accounts based on the likelihood of recoverability of trade and
other receivables based on their aging at the end of the period, past customer default experience, customer credit status, and economic and industrial factors.
|
|
(4)
|
The aging of overdue but not impaired accounts receivable as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Accounts
receivable -
trade
|
|
|
Other
receivables
|
|
|
Less than 1 month
|
|
W
|
16,817
|
|
|
|
2,525
|
|
|
|
20,908
|
|
|
|
2,770
|
|
|
1 ~ 3 months
|
|
|
13,173
|
|
|
|
4
|
|
|
|
21,941
|
|
|
|
924
|
|
|
3 ~ 6 months
|
|
|
7,443
|
|
|
|
1
|
|
|
|
7,043
|
|
|
|
265
|
|
|
More than 6 months
|
|
|
14,836
|
|
|
|
2,083
|
|
|
|
27,116
|
|
|
|
1,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
52,269
|
|
|
|
4,613
|
|
|
|
77,008
|
|
|
|
5,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Details of inventories as of September 30, 2016 and December 31,
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
Acquisition
cost
|
|
|
Write-
down
|
|
|
Carrying
amount
|
|
|
Acquisition
cost
|
|
|
Write-
down
|
|
|
Carrying
amount
|
|
|
Merchandise
|
|
W
|
243,529
|
|
|
|
(3,730
|
)
|
|
|
239,799
|
|
|
|
247,294
|
|
|
|
(5,064
|
)
|
|
|
242,230
|
|
|
Finished goods
|
|
|
2,306
|
|
|
|
(171
|
)
|
|
|
2,135
|
|
|
|
3,530
|
|
|
|
(179
|
)
|
|
|
3,351
|
|
|
Work in process
|
|
|
3,099
|
|
|
|
(197
|
)
|
|
|
2,902
|
|
|
|
1,976
|
|
|
|
(149
|
)
|
|
|
1,827
|
|
|
Raw materials and supplies
|
|
|
30,495
|
|
|
|
(1,284
|
)
|
|
|
29,211
|
|
|
|
27,296
|
|
|
|
(1,148
|
)
|
|
|
26,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
279,429
|
|
|
|
(5,382
|
)
|
|
|
274,047
|
|
|
|
280,096
|
|
|
|
(6,540
|
)
|
|
|
273,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Details of short-term investment securities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Beneficiary certificates(*)
|
|
W
|
202,513
|
|
|
|
92,262
|
|
|
(*)
|
The income distributable in relation to beneficiary certificates as of September 30, 2016 were accounted for as accrued income.
|
|
|
(2)
|
Details of long-term investment securities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
Marketable equity securities(*)
|
|
W
|
776,262
|
|
|
|
897,958
|
|
|
Unlisted equity securities
|
|
|
103,142
|
|
|
|
96,899
|
|
|
Equity investments
|
|
|
190,915
|
|
|
|
207,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,070,319
|
|
|
|
1,202,773
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
Investment bonds
|
|
|
3,657
|
|
|
|
4,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,073,976
|
|
|
|
1,207,226
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
During the nine-month period ended September 30, 2016, the Group sold 3,793,756 shares of Loen Entertainment, Inc. to Kakao Corp. and received 1,357,376 shares of Kakao Corp. and
W
218,037 million of cash in return.
|
21
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
9.
|
Business Combinations under common control
|
LBS(Location based service) division and
mobile phone verification services business,
spun-off
from SK Planet Co., Ltd., were acquired by the Parent Company during the nine-month period ended September 30, 2016. Since this is considered a
business combination of entities under common control, there is no impact on the Group’s consolidated financial statements.
|
10.
|
Investments in Associates and Joint Ventures
|
|
|
(1)
|
Investments in associates and joint ventures accounted for using the equity method as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
Country
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
|
Ownership
percentage
|
|
|
Carrying
amount
|
|
|
Investments in associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.(*1)
|
|
China
|
|
|
9.6
|
|
|
W
|
42,480
|
|
|
|
9.6
|
|
|
W
|
43,814
|
|
|
Korea IT Fund(*2)
|
|
Korea
|
|
|
63.3
|
|
|
|
260,159
|
|
|
|
63.3
|
|
|
|
260,456
|
|
|
KEB HanaCard Co., Ltd.(*1)
|
|
Korea
|
|
|
15.0
|
|
|
|
263,245
|
|
|
|
15.0
|
|
|
|
254,177
|
|
|
Candle Media Co., Ltd.(*3)
|
|
Korea
|
|
|
—
|
|
|
|
—
|
|
|
|
35.1
|
|
|
|
20,144
|
|
|
NanoEnTek, Inc.
|
|
Korea
|
|
|
28.5
|
|
|
|
41,314
|
|
|
|
28.6
|
|
|
|
45,008
|
|
|
SK Industrial Development China Co., Ltd.
|
|
Hong Kong
|
|
|
21.0
|
|
|
|
70,694
|
|
|
|
21.0
|
|
|
|
86,324
|
|
|
SK Technology Innovation Company
|
|
Cayman
|
|
|
49.0
|
|
|
|
43,078
|
|
|
|
49.0
|
|
|
|
45,891
|
|
|
HappyNarae Co., Ltd.
|
|
Korea
|
|
|
42.5
|
|
|
|
16,203
|
|
|
|
42.5
|
|
|
|
17,095
|
|
|
SK hynix Inc.
|
|
Korea
|
|
|
20.1
|
|
|
|
5,723,762
|
|
|
|
20.1
|
|
|
|
5,624,493
|
|
|
SK MENA Investment B.V.
|
|
Netherlands
|
|
|
32.1
|
|
|
|
14,022
|
|
|
|
32.1
|
|
|
|
14,929
|
|
|
SKY Property Mgmt. Ltd.
|
|
Virgin Island
|
|
|
33.0
|
|
|
|
242,748
|
|
|
|
33.0
|
|
|
|
251,166
|
|
|
Xinan Tianlong Science and Technology Co., Ltd.
|
|
China
|
|
|
49.0
|
|
|
|
25,754
|
|
|
|
49.0
|
|
|
|
25,767
|
|
|
Daehan Kanggun BcN Co., Ltd. and others
|
|
—
|
|
|
—
|
|
|
|
130,066
|
|
|
|
—
|
|
|
|
161,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
6,873,525
|
|
|
|
|
|
|
|
6,850,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in joint ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.(*4,6)
|
|
Turkey
|
|
|
50.0
|
|
|
|
22,443
|
|
|
|
50.0
|
|
|
|
15,118
|
|
|
PT. Melon Indonesia(*6)
|
|
Indonesia
|
|
|
49.0
|
|
|
|
5,208
|
|
|
|
49.0
|
|
|
|
4,339
|
|
|
Celcom Planet(*2,4,6)
|
|
Malaysia
|
|
|
51.0
|
|
|
|
4,228
|
|
|
|
51.0
|
|
|
|
3,406
|
|
|
PT XL Planet Digital(*4,6)
|
|
Indonesia
|
|
|
50.0
|
|
|
|
32,293
|
|
|
|
50.0
|
|
|
|
23,108
|
|
|
HanaSK Fintech Co., Ltd. (*5)
|
|
Korea
|
|
|
49.0
|
|
|
|
24,496
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
88,668
|
|
|
|
|
|
|
|
45,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
W
|
6,962,193
|
|
|
|
|
|
|
W
|
6,896,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(1)
|
Investments in associates and joint ventures accounted for using the equity method as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
(*1)
|
Classified as investments in associates as the Group can exercise significant influence through its right to appoint the members of board of directors even though the Group has less than 20% of equity interests.
|
|
(*2)
|
Classified as investment in associates as the Group does not have control over investments under the agreement.
|
|
(*3)
|
Candle Media Co., Ltd. was disposed during the nine-month period ended September 30, 2016.
|
|
(*4)
|
The carrying amount has been increased due to additional investment during the nine-month period ended September 30, 2016. There was no change in ownership interests after additional investment.
|
|
(*5)
|
The investment in HanaSK Fintech Co., Ltd., a company newly established during the nine-month period ended September 30, 2016, was classified as investment in joint venture as the Parent Company has joint control.
|
|
(*6)
|
The ownership interest owned by SK Planet Co., Ltd.
|
|
|
(2)
|
The market price of investments in listed associates as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
Market
value per
share
(In won)
|
|
|
Number of
shares
|
|
|
Market
price
|
|
|
NanoEnTek, Inc.
|
|
W
|
4,850
|
|
|
|
6,960,445
|
|
|
|
33,758
|
|
|
|
7,300
|
|
|
|
6,960,445
|
|
|
|
50,811
|
|
|
SK hynix Inc.
|
|
|
40,200
|
|
|
|
146,100,000
|
|
|
|
5,873,220
|
|
|
|
30,750
|
|
|
|
146,100,000
|
|
|
|
4,492,575
|
|
23
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(3)
|
The financial information of the significant investees as of and for the nine-month period ended September 30, 2016 and as of and for the year ended December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the nine-month period ended September 30, 2016
|
|
|
|
|
SK hynix Inc.
|
|
|
KEB
HanaCard
Co., Ltd.
|
|
|
SKY Property
Mgmt. Ltd.
|
|
|
Korea IT Fund
|
|
|
Current assets
|
|
W
|
8,228,379
|
|
|
|
6,619,270
|
|
|
|
165,669
|
|
|
|
160,312
|
|
|
Non-current
assets
|
|
|
20,938,615
|
|
|
|
231,834
|
|
|
|
412,294
|
|
|
|
250,465
|
|
|
Current liabilities
|
|
|
2,974,255
|
|
|
|
1,182,840
|
|
|
|
14,531
|
|
|
|
—
|
|
|
Non-current
liabilities
|
|
|
4,188,158
|
|
|
|
4,272,913
|
|
|
|
43,485
|
|
|
|
—
|
|
|
Revenue
|
|
|
11,840,289
|
|
|
|
1,046,372
|
|
|
|
50,398
|
|
|
|
21,629
|
|
|
Profit for the period
|
|
|
1,331,909
|
|
|
|
59,303
|
|
|
|
51,401
|
|
|
|
17,641
|
|
|
Other comprehensive loss
|
|
|
(355,501
|
)
|
|
|
(524
|
)
|
|
|
(75,846
|
)
|
|
|
(8,506
|
)
|
|
Total comprehensive income (loss)
|
|
|
976,408
|
|
|
|
58,779
|
|
|
|
(24,445
|
)
|
|
|
9,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2015
|
|
|
|
|
SK hynix Inc.
|
|
|
KEB
HanaCard
Co., Ltd.
|
|
|
SKY Property
Mgmt. Ltd.
|
|
|
Korea IT Fund
|
|
|
Current assets
|
|
W
|
9,760,030
|
|
|
|
6,228,076
|
|
|
|
176,517
|
|
|
|
152,070
|
|
|
Non-current
assets
|
|
|
19,917,876
|
|
|
|
509,579
|
|
|
|
650,661
|
|
|
|
259,176
|
|
|
Current liabilities
|
|
|
4,840,698
|
|
|
|
1,103,873
|
|
|
|
242,002
|
|
|
|
—
|
|
|
Non-current
liabilities
|
|
|
3,449,505
|
|
|
|
4,297,289
|
|
|
|
39,154
|
|
|
|
—
|
|
|
Revenue
|
|
|
18,797,998
|
|
|
|
1,472,830
|
|
|
|
89,161
|
|
|
|
30,875
|
|
|
Profit for the period
|
|
|
4,323,595
|
|
|
|
10,119
|
|
|
|
19,722
|
|
|
|
21,655
|
|
|
Other comprehensive income (loss)
|
|
|
40,215
|
|
|
|
(547
|
)
|
|
|
(11,872
|
)
|
|
|
15,651
|
|
|
Total comprehensive income
|
|
|
4,363,810
|
|
|
|
9,572
|
|
|
|
7,850
|
|
|
|
37,306
|
|
24
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(4)
|
The condensed financial information of joint ventures as of and for the nine-month period ended September 30, 2016 and as of and for the year ended December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the nine-month period ended September 30,
2016
|
|
|
|
|
Dogus
Planet, Inc.
|
|
|
PT. Melon
Indonesia
|
|
|
PT XL
Planet
Digital
|
|
|
Celcom
Planet
|
|
|
HanaSK
Fintech
Co., Ltd.
|
|
|
Current assets
|
|
W
|
55,571
|
|
|
|
15,728
|
|
|
|
28,530
|
|
|
|
20,803
|
|
|
|
48,849
|
|
|
Cash and cash equivalents
|
|
|
54,029
|
|
|
|
3,871
|
|
|
|
23,154
|
|
|
|
18,017
|
|
|
|
48,849
|
|
|
Non-current
assets
|
|
|
15,496
|
|
|
|
1,821
|
|
|
|
47,300
|
|
|
|
2,583
|
|
|
|
424
|
|
|
Current liabilities
|
|
|
26,098
|
|
|
|
6,766
|
|
|
|
10,102
|
|
|
|
15,096
|
|
|
|
1
|
|
|
Accounts payable, other payables and provision
|
|
|
3,193
|
|
|
|
3,036
|
|
|
|
4,256
|
|
|
|
8,947
|
|
|
|
1
|
|
|
Non-current
liabilities
|
|
|
83
|
|
|
|
105
|
|
|
|
1,141
|
|
|
|
—
|
|
|
|
—
|
|
|
Revenue
|
|
|
34,492
|
|
|
|
19,496
|
|
|
|
7,058
|
|
|
|
4,080
|
|
|
|
—
|
|
|
Depreciation and amortization
|
|
|
(3,470
|
)
|
|
|
(100
|
)
|
|
|
(2,678
|
)
|
|
|
(1,514
|
)
|
|
|
—
|
|
|
Interest income
|
|
|
261
|
|
|
|
201
|
|
|
|
187
|
|
|
|
127
|
|
|
|
—
|
|
|
Interest expense
|
|
|
(1,901
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Income tax benefit
|
|
|
—
|
|
|
|
—
|
|
|
|
831
|
|
|
|
—
|
|
|
|
—
|
|
|
Profit (loss) for the period
|
|
|
(17,662
|
)
|
|
|
1,873
|
|
|
|
(36,771
|
)
|
|
|
(32,677
|
)
|
|
|
(8
|
)
|
|
Total comprehensive income (loss)
|
|
|
(15,803
|
)
|
|
|
1,772
|
|
|
|
(36,771
|
)
|
|
|
(32,677
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
As of and for the year ended December 31, 2015
|
|
|
|
|
Dogus
Planet, Inc.
|
|
|
PT. Melon
Indonesia
|
|
|
PT XL
Planet
Digital
|
|
|
Celcom
Planet
|
|
|
Current assets
|
|
W
|
46,248
|
|
|
|
12,805
|
|
|
|
9,500
|
|
|
|
21,416
|
|
|
Cash and cash equivalents
|
|
|
8,091
|
|
|
|
4,027
|
|
|
|
5,034
|
|
|
|
19,371
|
|
|
Non-current
assets
|
|
|
18,088
|
|
|
|
2,657
|
|
|
|
46,013
|
|
|
|
5,519
|
|
|
Current liabilities
|
|
|
34,022
|
|
|
|
6,416
|
|
|
|
8,583
|
|
|
|
20,257
|
|
|
Accounts payable, other payables and provision
|
|
|
4,317
|
|
|
|
3,396
|
|
|
|
3,648
|
|
|
|
5,889
|
|
|
Non-current
liabilities
|
|
|
78
|
|
|
|
140
|
|
|
|
714
|
|
|
|
—
|
|
|
Revenue
|
|
|
38,944
|
|
|
|
17,094
|
|
|
|
5,536
|
|
|
|
1,647
|
|
|
Depreciation and amortization
|
|
|
(5,318
|
)
|
|
|
(132
|
)
|
|
|
(2,746
|
)
|
|
|
(1,332
|
)
|
|
Interest income
|
|
|
465
|
|
|
|
288
|
|
|
|
525
|
|
|
|
345
|
|
|
Income tax benefit
|
|
|
—
|
|
|
|
—
|
|
|
|
7,025
|
|
|
|
—
|
|
|
Profit (loss) for the period
|
|
|
(32,713
|
)
|
|
|
1,853
|
|
|
|
(21,381
|
)
|
|
|
(25,881
|
)
|
|
Total comprehensive income (loss)
|
|
|
(32,713
|
)
|
|
|
1,853
|
|
|
|
(21,381
|
)
|
|
|
(25,881
|
)
|
25
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(5)
|
Reconciliations of financial information of significant associates to carrying amounts of investments in associates in the consolidated financial statements as of September 30, 2016 and December 31, 2015 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
|
|
Net assets
|
|
|
Ownership
interests
(%)
|
|
|
Net assets
attributable to
the ownership
interests
|
|
|
Goodwill
|
|
|
Carrying
amount
|
|
|
Associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*1,2)
|
|
W
|
22,000,634
|
|
|
|
20.1
|
|
|
|
4,552,807
|
|
|
|
1,170,955
|
|
|
|
5,723,762
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
1,395,351
|
|
|
|
15.0
|
|
|
|
209,303
|
|
|
|
53,942
|
|
|
|
263,245
|
|
|
SKY Property Mgmt. Ltd.(*1)
|
|
|
514,134
|
|
|
|
33.0
|
|
|
|
169,664
|
|
|
|
73,084
|
|
|
|
242,748
|
|
|
Korea IT Fund
|
|
|
410,777
|
|
|
|
63.3
|
|
|
|
260,159
|
|
|
|
—
|
|
|
|
260,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Net assets
|
|
|
Ownership
interests
(%)
|
|
|
Net assets
attributable to
the ownership
interests
|
|
|
Goodwill
|
|
|
Carrying
amount
|
|
|
Associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK hynix Inc.(*1,2)
|
|
W
|
21,386,863
|
|
|
|
20.1
|
|
|
|
4,425,794
|
|
|
|
1,198,699
|
|
|
|
5,624,493
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
1,336,493
|
|
|
|
15.0
|
|
|
|
200,474
|
|
|
|
53,703
|
|
|
|
254,177
|
|
|
SKY Property Mgmt. Ltd.(*1)
|
|
|
537,847
|
|
|
|
33.0
|
|
|
|
177,490
|
|
|
|
73,676
|
|
|
|
251,166
|
|
|
Korea IT Fund
|
|
|
411,246
|
|
|
|
63.3
|
|
|
|
260,456
|
|
|
|
—
|
|
|
|
260,456
|
|
|
(*1)
|
Net assets of these entities represent net assets excluding their
non-controlling
interests.
|
|
(*2)
|
The ownership interest is based on the number of shares owned by the Parent Company for the total shares issued by the investee company. The Group applied the equity method using the effective ownership interest of
20.69% which is based on the number of shares owned by the Parent Company for the total issued shares outstanding less investee’s treasury shares.
|
26
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(6)
|
Details of changes in investments in associates and joint ventures accounted for using the equity method for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
and
Disposal
|
|
|
Share of
profits
(losses)
|
|
|
Other
compre-
hensive
income
(loss)
|
|
|
Other
decrease
|
|
|
Ending
balance
|
|
|
Investments in associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.
|
|
W
|
43,814
|
|
|
|
—
|
|
|
|
1,788
|
|
|
|
(3,122
|
)
|
|
|
—
|
|
|
|
42,480
|
|
|
Korea IT Fund(*)
|
|
|
260,456
|
|
|
|
—
|
|
|
|
11,172
|
|
|
|
(5,387
|
)
|
|
|
(6,082
|
)
|
|
|
260,159
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
254,177
|
|
|
|
—
|
|
|
|
9,135
|
|
|
|
(67
|
)
|
|
|
—
|
|
|
|
263,245
|
|
|
Candle Media Co., Ltd.
|
|
|
20,144
|
|
|
|
(19,393
|
)
|
|
|
(673
|
)
|
|
|
(78
|
)
|
|
|
—
|
|
|
|
—
|
|
|
NanoEnTek, Inc.
|
|
|
45,008
|
|
|
|
—
|
|
|
|
(2,496
|
)
|
|
|
(1,198
|
)
|
|
|
—
|
|
|
|
41,314
|
|
|
SK Industrial Development China Co., Ltd.
|
|
|
86,324
|
|
|
|
—
|
|
|
|
(5,925
|
)
|
|
|
(9,705
|
)
|
|
|
—
|
|
|
|
70,694
|
|
|
SK Technology Innovation Company
|
|
|
45,891
|
|
|
|
—
|
|
|
|
160
|
|
|
|
(2,973
|
)
|
|
|
—
|
|
|
|
43,078
|
|
|
HappyNarae Co., Ltd.
|
|
|
17,095
|
|
|
|
—
|
|
|
|
(850
|
)
|
|
|
(42
|
)
|
|
|
—
|
|
|
|
16,203
|
|
|
SK hynix Inc.(*)
|
|
|
5,624,493
|
|
|
|
—
|
|
|
|
246,887
|
|
|
|
(74,568
|
)
|
|
|
(73,050
|
)
|
|
|
5,723,762
|
|
|
SK MENA Investment B.V.
|
|
|
14,929
|
|
|
|
—
|
|
|
|
43
|
|
|
|
(950
|
)
|
|
|
—
|
|
|
|
14,022
|
|
|
SKY Property Mgmt. Ltd.
|
|
|
251,166
|
|
|
|
—
|
|
|
|
15,932
|
|
|
|
(24,350
|
)
|
|
|
—
|
|
|
|
242,748
|
|
|
Xian Tianlong Science and Technology Co., Ltd
|
|
|
25,767
|
|
|
|
—
|
|
|
|
(13
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
25,754
|
|
|
Daehan Kanggun BcN Co., Ltd. and others
|
|
|
161,058
|
|
|
|
(21,581
|
)
|
|
|
(6,265
|
)
|
|
|
(1,766
|
)
|
|
|
(1,380
|
)
|
|
|
130,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
6,850,322
|
|
|
|
(40,974
|
)
|
|
|
268,895
|
|
|
|
(124,206
|
)
|
|
|
(80,512
|
)
|
|
|
6,873,525
|
|
|
Investments in joint ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.
|
|
|
15,118
|
|
|
|
18,848
|
|
|
|
(8,831
|
)
|
|
|
(2,692
|
)
|
|
|
—
|
|
|
|
22,443
|
|
|
PT. Melon Indonesia
|
|
|
4,339
|
|
|
|
—
|
|
|
|
918
|
|
|
|
(49
|
)
|
|
|
—
|
|
|
|
5,208
|
|
|
Celcom Planet
|
|
|
3,406
|
|
|
|
17,488
|
|
|
|
(16,666
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
4,228
|
|
|
PT XL Planet Digital
|
|
|
23,108
|
|
|
|
27,571
|
|
|
|
(18,386
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
32,293
|
|
|
HanaSK Fintech Co., Ltd.
|
|
|
—
|
|
|
|
24,500
|
|
|
|
(4
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
24,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
45,971
|
|
|
|
88,407
|
|
|
|
(42,969
|
)
|
|
|
(2,741
|
)
|
|
|
—
|
|
|
|
88,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
6,896,293
|
|
|
|
47,433
|
|
|
|
225,926
|
|
|
|
(126,947
|
)
|
|
|
(80,512
|
)
|
|
|
6,962,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Dividends received from the associate are deducted from the carrying amount during the nine-month period ended September 30, 2016.
|
27
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(6)
|
Details of changes in investments in associates and joint ventures accounted for using the equity method for the nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
and
Disposal
|
|
|
Share of
profits
(losses)
|
|
|
Other
compre-
hensive
income
(loss)
|
|
|
Other
increase
(decrease)
|
|
|
Ending
balance
|
|
|
Investments in associates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SK China Company Ltd.
|
|
W
|
35,817
|
|
|
|
—
|
|
|
|
(1,702
|
)
|
|
|
4,703
|
|
|
|
—
|
|
|
|
38,818
|
|
|
Korea IT Fund(*)
|
|
|
240,676
|
|
|
|
—
|
|
|
|
5,037
|
|
|
|
(1,444
|
)
|
|
|
(2,103
|
)
|
|
|
242,166
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
425,140
|
|
|
|
(174,475
|
)
|
|
|
5,101
|
|
|
|
496
|
|
|
|
—
|
|
|
|
256,262
|
|
|
Candle Media Co., Ltd.
|
|
|
19,486
|
|
|
|
—
|
|
|
|
401
|
|
|
|
41
|
|
|
|
—
|
|
|
|
19,928
|
|
|
NanoEnTek, Inc.
|
|
|
36,527
|
|
|
|
10,000
|
|
|
|
(853
|
)
|
|
|
64
|
|
|
|
—
|
|
|
|
45,738
|
|
|
SK Industrial Development China Co., Ltd.
|
|
|
79,394
|
|
|
|
—
|
|
|
|
(870
|
)
|
|
|
3,620
|
|
|
|
—
|
|
|
|
82,144
|
|
|
Packet One Network
|
|
|
53,670
|
|
|
|
—
|
|
|
|
(8,714
|
)
|
|
|
(565
|
)
|
|
|
(44,391
|
)
|
|
|
—
|
|
|
SK Technology Innovation Company
|
|
|
44,052
|
|
|
|
—
|
|
|
|
(1,991
|
)
|
|
|
5,661
|
|
|
|
—
|
|
|
|
47,722
|
|
|
HappyNarae Co., Ltd.
|
|
|
15,551
|
|
|
|
—
|
|
|
|
1,270
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
16,820
|
|
|
SK hynix Inc.(*)
|
|
|
4,849,159
|
|
|
|
—
|
|
|
|
672,739
|
|
|
|
30,918
|
|
|
|
(43,830
|
)
|
|
|
5,508,986
|
|
|
SK MENA Investment B.V.
|
|
|
14,015
|
|
|
|
—
|
|
|
|
4
|
|
|
|
1,193
|
|
|
|
—
|
|
|
|
15,212
|
|
|
SKY Property Mgmt. Ltd.
|
|
|
248,534
|
|
|
|
—
|
|
|
|
4,831
|
|
|
|
6,179
|
|
|
|
—
|
|
|
|
259,544
|
|
|
Xian Tianlong Science and Technology Co., Ltd
|
|
|
25,874
|
|
|
|
—
|
|
|
|
(1,290
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
24,584
|
|
|
Daehan Kanggun BcN Co., Ltd. and others (*)
|
|
|
158,725
|
|
|
|
4,251
|
|
|
|
(10,612
|
)
|
|
|
5,515
|
|
|
|
4,177
|
|
|
|
162,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
6,246,620
|
|
|
|
(160,224
|
)
|
|
|
663,351
|
|
|
|
56,380
|
|
|
|
(86,147
|
)
|
|
|
6,719,980
|
|
|
Investments in joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dogus Planet, Inc.
|
|
|
11,441
|
|
|
|
10,627
|
|
|
|
(10,154
|
)
|
|
|
2,208
|
|
|
|
—
|
|
|
|
14,122
|
|
|
PT. Melon Indonesia
|
|
|
3,564
|
|
|
|
—
|
|
|
|
631
|
|
|
|
(307
|
)
|
|
|
—
|
|
|
|
3,888
|
|
|
Television Media Korea Ltd.
|
|
|
6,944
|
|
|
|
(6,712
|
)
|
|
|
(232
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Celcom Planet
|
|
|
16,605
|
|
|
|
—
|
|
|
|
(6,898
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
9,707
|
|
|
PT XL Planet Digital
|
|
|
12,914
|
|
|
|
17,491
|
|
|
|
(6,587
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
23,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
51,468
|
|
|
|
21,406
|
|
|
|
(23,240
|
)
|
|
|
1,901
|
|
|
|
—
|
|
|
|
51,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
W
|
6,298,088
|
|
|
|
(138,818
|
)
|
|
|
640,111
|
|
|
|
58,281
|
|
|
|
(86,147
|
)
|
|
|
6,771,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Dividends paid by the associate are deducted from the carrying amount during the nine-month period ended September 30, 2015.
|
28
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
10.
|
Investments in Associates and Joint Ventures, Continued
|
|
|
(7)
|
The Group discontinued the application of the equity method for the following investees due to the carrying amount of the Group’s share being reduced to zero. The details of unrecognized accumulated equity losses
as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
Unrealized loss
|
|
|
Unrealized change in equity
|
|
|
|
|
Period ended
September 30,
2016
|
|
|
Accumulated
|
|
|
Period ended
September 30,
2016
|
|
|
Accumulated
|
|
|
Wave City Development Co., Ltd.
|
|
W
|
(1,440
|
)
|
|
|
3,098
|
|
|
|
—
|
|
|
|
—
|
|
|
SK Wyverns Baseball Club Co., Ltd. and others
|
|
|
—
|
|
|
|
6,510
|
|
|
|
—
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(1,440
|
)
|
|
|
9,608
|
|
|
|
—
|
|
|
|
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.
|
Property and Equipment
|
Changes in property and equipment for the nine-month periods
ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Impairment
|
|
|
Ending balance
|
|
|
Land
|
|
W
|
812,947
|
|
|
|
1,764
|
|
|
|
(2,881
|
)
|
|
|
12,564
|
|
|
|
—
|
|
|
|
—
|
|
|
|
824,394
|
|
|
Buildings
|
|
|
911,129
|
|
|
|
1,504
|
|
|
|
(8,603
|
)
|
|
|
22,167
|
|
|
|
(37,666
|
)
|
|
|
—
|
|
|
|
888,531
|
|
|
Structures
|
|
|
344,221
|
|
|
|
11,265
|
|
|
|
(15
|
)
|
|
|
9,837
|
|
|
|
(24,830
|
)
|
|
|
—
|
|
|
|
340,478
|
|
|
Machinery
|
|
|
7,342,009
|
|
|
|
368,633
|
|
|
|
(26,126
|
)
|
|
|
522,214
|
|
|
|
(1,605,325
|
)
|
|
|
(883
|
)
|
|
|
6,600,522
|
|
|
Other
|
|
|
473,438
|
|
|
|
414,793
|
|
|
|
(3,976
|
)
|
|
|
(275,251
|
)
|
|
|
(106,076
|
)
|
|
|
—
|
|
|
|
502,928
|
|
|
Construction in progress
|
|
|
487,512
|
|
|
|
509,635
|
|
|
|
(7,419
|
)
|
|
|
(356,059
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
633,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,371,256
|
|
|
|
1,307,594
|
|
|
|
(49,020
|
)
|
|
|
(64,528
|
)
|
|
|
(1,773,897
|
)
|
|
|
(883
|
)
|
|
|
9,790,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Business
combination
|
|
|
Ending balance
|
|
|
Land
|
|
W
|
766,780
|
|
|
|
4,493
|
|
|
|
(2,031
|
)
|
|
|
30,569
|
|
|
|
—
|
|
|
|
—
|
|
|
|
799,811
|
|
|
Buildings
|
|
|
933,867
|
|
|
|
4,630
|
|
|
|
(6,839
|
)
|
|
|
23,622
|
|
|
|
(36,996
|
)
|
|
|
—
|
|
|
|
918,284
|
|
|
Structures
|
|
|
352,789
|
|
|
|
3,462
|
|
|
|
(57
|
)
|
|
|
12,652
|
|
|
|
(25,670
|
)
|
|
|
—
|
|
|
|
343,176
|
|
|
Machinery
|
|
|
7,310,815
|
|
|
|
362,615
|
|
|
|
(14,162
|
)
|
|
|
910,549
|
|
|
|
(1,585,542
|
)
|
|
|
3,641
|
|
|
|
6,987,916
|
|
|
Other
|
|
|
499,050
|
|
|
|
601,542
|
|
|
|
(13,710
|
)
|
|
|
(455,947
|
)
|
|
|
(106,561
|
)
|
|
|
—
|
|
|
|
524,374
|
|
|
Construction in progress
|
|
|
704,400
|
|
|
|
509,744
|
|
|
|
(1,045
|
)
|
|
|
(616,110
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
596,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
10,567,701
|
|
|
|
1,486,486
|
|
|
|
(37,844
|
)
|
|
|
(94,665
|
)
|
|
|
(1,754,769
|
)
|
|
|
3,641
|
|
|
|
10,170,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Changes in investment property for the nine-month periods ended
September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending
balance
|
|
|
Land
|
|
W
|
10,634
|
|
|
|
(4,770
|
)
|
|
|
—
|
|
|
|
5,864
|
|
|
Buildings
|
|
|
4,437
|
|
|
|
(1,984
|
)
|
|
|
(103
|
)
|
|
|
2,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,071
|
|
|
|
(6,754
|
)
|
|
|
(103
|
)
|
|
|
8,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Transfer
|
|
|
Depreciation
|
|
|
Ending
balance
|
|
|
Land
|
|
W
|
10,418
|
|
|
|
216
|
|
|
|
—
|
|
|
|
10,634
|
|
|
Buildings
|
|
|
4,579
|
|
|
|
97
|
|
|
|
(180
|
)
|
|
|
4,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
14,997
|
|
|
|
313
|
|
|
|
(180
|
)
|
|
|
15,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Goodwill as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Goodwill related to acquisition of Shinsegi Telecom, Inc.
|
|
W
|
1,306,236
|
|
|
|
1,306,236
|
|
|
Goodwill related to acquisition of SK Broadband Co., Ltd.
|
|
|
358,443
|
|
|
|
358,443
|
|
|
Other goodwill
|
|
|
237,799
|
|
|
|
243,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,902,478
|
|
|
|
1,908,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Changes in goodwill for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Beginning balance
|
|
W
|
1,908,590
|
|
|
|
1,917,595
|
|
|
Acquisition
|
|
|
4,498
|
|
|
|
3,682
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
(1,976
|
)
|
|
Other
|
|
|
(10,610
|
)
|
|
|
13,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,902,478
|
|
|
|
1,932,658
|
|
|
|
|
|
|
|
|
|
|
|
30
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Changes in intangible assets for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Impairment
|
|
|
Ending
balance
|
|
|
Frequency usage rights
|
|
W
|
1,103,517
|
|
|
|
1,254,664
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(220,514
|
)
|
|
|
—
|
|
|
|
2,137,667
|
|
|
Land usage rights
|
|
|
26,576
|
|
|
|
5,127
|
|
|
|
(1,840
|
)
|
|
|
—
|
|
|
|
(7,010
|
)
|
|
|
—
|
|
|
|
22,853
|
|
|
Industrial rights
|
|
|
116,542
|
|
|
|
3,768
|
|
|
|
(141
|
)
|
|
|
(185
|
)
|
|
|
(4,959
|
)
|
|
|
—
|
|
|
|
115,025
|
|
|
Development costs
|
|
|
7,472
|
|
|
|
1,300
|
|
|
|
—
|
|
|
|
338
|
|
|
|
(3,021
|
)
|
|
|
(278
|
)
|
|
|
5,811
|
|
|
Facility usage rights
|
|
|
48,019
|
|
|
|
1,015
|
|
|
|
(4
|
)
|
|
|
71
|
|
|
|
(6,444
|
)
|
|
|
—
|
|
|
|
42,657
|
|
|
Customer relations
|
|
|
7,175
|
|
|
|
504
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,971
|
)
|
|
|
—
|
|
|
|
4,708
|
|
|
Memberships
|
|
|
91,507
|
|
|
|
7,348
|
|
|
|
(6,570
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(20
|
)
|
|
|
92,265
|
|
|
Other
|
|
|
903,976
|
|
|
|
58,189
|
|
|
|
(7,941
|
)
|
|
|
72,854
|
|
|
|
(247,182
|
)
|
|
|
(2,048
|
)
|
|
|
777,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,304,784
|
|
|
|
1,331,915
|
|
|
|
(16,496
|
)
|
|
|
73,078
|
|
|
|
(492,101
|
)
|
|
|
(2,346
|
)
|
|
|
3,198,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
|
|
Beginning
balance
|
|
|
Acquisition
|
|
|
Disposal
|
|
|
Transfer
|
|
|
Amortization
|
|
|
Business
combination
|
|
|
Ending
balance
|
|
|
Frequency usage rights
|
|
W
|
1,384,044
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(210,395
|
)
|
|
|
—
|
|
|
|
1,173,649
|
|
|
Land usage rights
|
|
|
25,353
|
|
|
|
9,579
|
|
|
|
(193
|
)
|
|
|
—
|
|
|
|
(7,016
|
)
|
|
|
—
|
|
|
|
27,723
|
|
|
Industrial rights
|
|
|
107,760
|
|
|
|
9,349
|
|
|
|
—
|
|
|
|
4,175
|
|
|
|
(4,346
|
)
|
|
|
—
|
|
|
|
116,938
|
|
|
Development costs
|
|
|
8,331
|
|
|
|
1,856
|
|
|
|
—
|
|
|
|
22
|
|
|
|
(3,448
|
)
|
|
|
—
|
|
|
|
6,761
|
|
|
Facility usage rights
|
|
|
52,636
|
|
|
|
1,059
|
|
|
|
(23
|
)
|
|
|
293
|
|
|
|
(6,322
|
)
|
|
|
—
|
|
|
|
47,643
|
|
|
Customer relations
|
|
|
6,404
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,335
|
|
|
|
(3,961
|
)
|
|
|
8,219
|
|
|
|
11,997
|
|
|
Memberships
|
|
|
94,119
|
|
|
|
554
|
|
|
|
(1,576
|
)
|
|
|
68
|
|
|
|
—
|
|
|
|
—
|
|
|
|
93,165
|
|
|
Other
|
|
|
805,347
|
|
|
|
38,737
|
|
|
|
(2,187
|
)
|
|
|
111,887
|
|
|
|
(232,456
|
)
|
|
|
—
|
|
|
|
721,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,483,994
|
|
|
|
61,134
|
|
|
|
(3,979
|
)
|
|
|
117,780
|
|
|
|
(467,944
|
)
|
|
|
8,219
|
|
|
|
2,199,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
14.
|
Intangible Assets, Continued
|
|
|
(2)
|
The carrying amount and residual useful lives of frequency usage rights as of September 30, 2016 are as follows, all of which are amortized on a straight-line basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Amount
|
|
|
Description
|
|
Commencement
of amortization
|
|
|
Completion of
amortization
|
|
|
W-CDMA
license
|
|
W
|
31,062
|
|
|
Frequency usage rights relating to
W-CDMA
service
|
|
|
Dec. 2003
|
|
|
|
Dec. 2016
|
|
|
W-CDMA
license
|
|
|
4,078
|
|
|
Frequency usage rights relating to
W-CDMA
service
|
|
|
Oct. 2010
|
|
|
|
Dec. 2016
|
|
|
800MHz license
|
|
|
192,584
|
|
|
Frequency usage rights relating to CDMA and LTE service
|
|
|
Jul. 2011
|
|
|
|
Jun. 2021
|
|
|
1.8GHz license
|
|
|
659,505
|
|
|
Frequency usage rights relating to LTE service
|
|
|
Sep. 2013
|
|
|
|
Dec. 2021
|
|
|
WiBro license
|
|
|
5,893
|
|
|
WiBro service
|
|
|
Mar. 2012
|
|
|
|
Mar. 2019
|
|
|
2.6GHz license
|
|
|
1,244,545
|
|
|
Frequency usage rights relating to LTE service
|
|
|
Sep. 2016
|
|
|
|
Dec. 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,137,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
15.
|
Borrowings and Debentures
|
|
|
(1)
|
Short-term borrowings as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
Lender
|
|
Annual
interest rate (%)
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Commercial Paper
|
|
KTB Investment and Securities Co., Ltd., etc.
|
|
|
1.76~1.84
|
|
|
W
|
—
|
|
|
|
220,000
|
|
|
Short-term borrowings
|
|
Woori Bank, etc.
|
|
|
2.88
|
|
|
|
827
|
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
827
|
|
|
|
260,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Long-term borrowings as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of U.S. dollars)
|
|
|
Lender
|
|
Annual interest
rate (%)
|
|
|
Maturity
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Kookmin Bank
|
|
|
1.98
|
|
|
|
Jun. 15, 2016
|
|
|
W
|
—
|
|
|
|
1,625
|
|
|
Shinhan Bank
|
|
|
6M bank debenture rate+1.58
|
|
|
|
Apr. 30, 2016
|
|
|
|
—
|
|
|
|
10,000
|
|
|
Kookmin Bank
|
|
|
1.54
|
|
|
|
Mar. 15, 2017
|
|
|
|
999
|
|
|
|
2,498
|
|
|
Kookmin Bank
|
|
|
1.54
|
|
|
|
Mar. 15, 2018
|
|
|
|
4,300
|
|
|
|
6,450
|
|
|
Korea Development Bank
|
|
|
3.32
|
|
|
|
Jul. 30 ,2019
|
|
|
|
39,000
|
|
|
|
39,000
|
|
|
Korea Development Bank
|
|
|
2.94
|
|
|
|
Jul. 30 ,2019
|
|
|
|
10,000
|
|
|
|
10,000
|
|
|
Export Kreditnamnden(*)
|
|
|
1.70
|
|
|
|
Apr. 29, 2022
|
|
|
|
75,706
|
|
|
|
87,685
|
|
|
|
|
|
|
|
|
|
|
|
|
(USD
|
69,056
|
)
|
|
(USD
|
74,817
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
130,005
|
|
|
|
157,258
|
|
|
Less present value discount
|
|
|
|
|
|
|
|
|
|
|
(1,567
|
)
|
|
|
(2,124
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128,438
|
|
|
|
155,134
|
|
|
Less current installments
|
|
|
|
|
|
|
|
|
|
|
(32,537
|
)
|
|
|
(33,581
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
95,901
|
|
|
|
121,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Prior to 2015, the Group obtained long-term borrowings from Export Kreditnamnden, an export credit agency. The long-term borrowings are repaid by installments on an annual basis from 2014 to 2022.
|
33
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
15.
|
Borrowings and Debentures, Continued
|
|
|
(3)
|
Debentures as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars and thousands of other currencies)
|
|
|
|
|
Purpose
|
|
Maturity
|
|
Annual
interest rate
(%)
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2016
|
|
5.00
|
|
W
|
—
|
|
|
|
200,000
|
|
|
Unsecured private bonds
|
|
Other fund
|
|
2018
|
|
5.00
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.54
|
|
|
—
|
|
|
|
40,000
|
|
|
Unsecured private bonds
|
|
|
|
2016
|
|
5.92
|
|
|
—
|
|
|
|
230,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2016
|
|
3.95
|
|
|
110,000
|
|
|
|
110,000
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
4.22
|
|
|
190,000
|
|
|
|
190,000
|
|
|
Unsecured private bonds
|
|
Operating and
|
|
2019
|
|
3.24
|
|
|
170,000
|
|
|
|
170,000
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2022
|
|
3.30
|
|
|
140,000
|
|
|
|
140,000
|
|
|
Unsecured private bonds
|
|
|
|
2032
|
|
3.45
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2023
|
|
3.03
|
|
|
230,000
|
|
|
|
230,000
|
|
|
Unsecured private bonds
|
|
|
|
2033
|
|
3.22
|
|
|
130,000
|
|
|
|
130,000
|
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
3.30
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
3.64
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds(*4)
|
|
|
|
2029
|
|
4.72
|
|
|
54,366
|
|
|
|
54,695
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2019
|
|
2.53
|
|
|
160,000
|
|
|
|
160,000
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
2.66
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds
|
|
|
|
2024
|
|
2.82
|
|
|
190,000
|
|
|
|
190,000
|
|
|
Unsecured private bonds
|
|
Operating and
|
|
2022
|
|
2.40
|
|
|
100,000
|
|
|
|
100,000
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2025
|
|
2.49
|
|
|
150,000
|
|
|
|
150,000
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.61
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2018
|
|
1.89
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds
|
|
|
|
2025
|
|
2.66
|
|
|
70,000
|
|
|
|
70,000
|
|
|
Unsecured private bonds
|
|
|
|
2030
|
|
2.82
|
|
|
90,000
|
|
|
|
90,000
|
|
|
Unsecured private bonds(*4,5)
|
|
|
|
2030
|
|
3.40
|
|
|
—
|
|
|
|
50,485
|
|
|
Unsecured private bonds
|
|
Operating and
|
|
2018
|
|
2.07
|
|
|
80,000
|
|
|
|
80,000
|
|
|
Unsecured private bonds
|
|
Refinancing fund
|
|
2025
|
|
2.55
|
|
|
100,000
|
|
|
|
100,000
|
|
|
Unsecured private bonds
|
|
|
|
2035
|
|
2.75
|
|
|
70,000
|
|
|
|
70,000
|
|
|
Unsecured private bonds(*4)
|
|
|
|
2030
|
|
3.10
|
|
|
50,113
|
|
|
|
50,524
|
|
|
Unsecured private bonds
|
|
Operating fund
|
|
2019
|
|
1.65
|
|
|
70,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
1.80
|
|
|
100,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2026
|
|
2.08
|
|
|
90,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2036
|
|
2.24
|
|
|
80,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2019
|
|
1.62
|
|
|
50,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2021
|
|
1.71
|
|
|
50,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2026
|
|
1.97
|
|
|
120,000
|
|
|
|
—
|
|
|
Unsecured private bonds
|
|
|
|
2031
|
|
2.17
|
|
|
50,000
|
|
|
|
—
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2017
|
|
4.28
|
|
|
100,000
|
|
|
|
100,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2017
|
|
3.27
|
|
|
120,000
|
|
|
|
120,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2016
|
|
3.05
|
|
|
80,000
|
|
|
|
80,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2019
|
|
3.49
|
|
|
210,000
|
|
|
|
210,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2019
|
|
2.76
|
|
|
130,000
|
|
|
|
130,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2018
|
|
2.23
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2020
|
|
2.49
|
|
|
160,000
|
|
|
|
160,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2020
|
|
2.43
|
|
|
140,000
|
|
|
|
140,000
|
|
|
Unsecured private bonds(*1)
|
|
|
|
2020
|
|
2.18
|
|
|
130,000
|
|
|
|
130,000
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2016
|
|
3.24
|
|
|
—
|
|
|
|
10,000
|
|
|
Unsecured private bonds(*2)
|
|
|
|
2017
|
|
3.48
|
|
|
20,000
|
|
|
|
20,000
|
|
|
Unsecured global bonds
|
|
|
|
2027
|
|
6.63
|
|
|
438,520
|
|
|
|
468,800
|
|
|
|
|
|
|
|
|
|
|
(USD
|
400,000
|
)
|
|
(USD
|
400,000
|
)
|
34
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
15.
|
Borrowings and Debentures, Continued
|
|
|
(3)
|
Debentures as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of U.S. dollars and thousands of other currencies)
|
|
|
|
|
|
|
|
Purpose
|
|
|
Maturity
|
|
|
Annual
interest rate
(%)
|
|
|
September 30,
2016
|
|
|
December 31,
2015
|
|
|
Unsecured private Swiss bonds
|
|
|
Operating fund
|
|
|
|
2017
|
|
|
|
1.75
|
|
|
(CHF
|
340,518
300,000
|
)
|
|
(CHF
|
355,617
300,000
|
)
|
|
Unsecured global bonds
|
|
|
|
|
|
|
2018
|
|
|
|
2.13
|
|
|
(USD
|
767,410
700,000
|
)
|
|
(USD
|
820,400
700,000
|
)
|
|
Unsecured private Australian bonds
|
|
|
|
|
|
|
2017
|
|
|
|
4.75
|
|
|
(AUD
|
251,124
300,000
|
)
|
|
(AUD
|
255,930
300,000
|
)
|
|
Floating rate notes(*3)
|
|
|
|
|
|
|
2020
|
|
|
|
3M LIBOR + 0.88
|
|
|
(USD
|
328,890
300,000
|
)
|
|
(USD
|
351,600
300,000
|
)
|
|
Unsecured global bonds(*1)
|
|
|
|
|
|
|
2018
|
|
|
|
2.88
|
|
|
(USD
|
328,890
300,000
|
)
|
|
(USD
|
351,600
300,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,069,831
|
|
|
|
7,139,651
|
|
|
Less discounts on bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(26,140
|
)
|
|
|
(30,998
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,043,691
|
|
|
|
7,108,653
|
|
|
Less current portion of bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(650,103
|
)
|
|
|
(669,506
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,393,588
|
|
|
|
6,439,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Unsecured private bonds were issued by SK Broadband Co., Ltd., a subsidiary of the Parent Company.
|
|
(*2)
|
Unsecured private bonds were issued by PS&Marketing Corporation, a subsidiary of the Parent Company.
|
|
(*3)
|
As of September 30, 2016, 3M LIBOR rate is 0.85%.
|
|
(*4)
|
The Parent Company eliminated a measurement inconsistency of accounting profit or loss between the bonds and related derivatives by designating the structured bonds as financial liabilities at fair value through profit
or loss.
|
|
(*5)
|
The principal amount and the fair value of the structured bonds that were designated as financial liabilities at fair value through profit or loss as of December 31, 2015 were
W
50,000 million and
W
50,485 million, respectively. The entire bond was early redeemed during the nine-month period ended September 30, 2016.
|
The carrying amount of financial liabilities designated at fair value through profit or loss exceeds the principal amount required to pay at
maturity by
W
4,479 million as of September 30, 2016.
35
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
16.
|
Long-term Payables - other
|
|
|
(1)
|
Long-term payables – other as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Payables related to acquisition of
W-CDMA
licenses
|
|
W
|
1,268,550
|
|
|
|
550,964
|
|
|
Other(*)
|
|
|
34,985
|
|
|
|
30,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,303,535
|
|
|
|
581,697
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Other includes vested compensation claims of employees who have rendered long-term services, etc.
|
|
|
(2)
|
As of September 30, 2016 and December 31, 2015, details of long-term payables – other which consist of payables related to the acquisition of
W-CDMA
and LTE
licenses for 2.6GHz and 1.8GHz frequencies are as follows (See Note 14):
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Long-term payables - other
|
|
W
|
1,586,747
|
|
|
|
709,888
|
|
|
Present value discount on long-term payables – other
|
|
|
(102,428
|
)
|
|
|
(38,739
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,484,319
|
|
|
|
671,149
|
|
|
Less current installments of long-term payables – other
|
|
|
(215,769
|
)
|
|
|
(120,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount at period end
|
|
W
|
1,268,550
|
|
|
|
550,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
The repayment schedule of the principal amount of long-term payables related to acquisition of
W-CDMA
and LTE licenses as of September 30, 2016 is as follows:
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
Amount
|
|
|
Less than 1 year
|
|
W
|
217,592
|
|
|
1~3 years
|
|
|
435,184
|
|
|
3~5 years
|
|
|
435,184
|
|
|
More than 5 years
|
|
|
498,787
|
|
|
|
|
|
|
|
|
|
|
W
|
1,586,747
|
|
|
|
|
|
|
|
36
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Changes in provisions for the nine-month periods ended September 30,
2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2016
|
|
|
As of
September 30,
2016
|
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Other
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-
current
|
|
|
Provision for installment of handset subsidy
|
|
W
|
5,670
|
|
|
|
—
|
|
|
|
(1,019
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
4,651
|
|
|
|
1,213
|
|
|
|
3,438
|
|
|
Provision for restoration
|
|
|
59,954
|
|
|
|
4,405
|
|
|
|
(586
|
)
|
|
|
(863
|
)
|
|
|
(65
|
)
|
|
|
62,845
|
|
|
|
29,332
|
|
|
|
33,513
|
|
|
Emission allowance
|
|
|
1,477
|
|
|
|
1,016
|
|
|
|
(169
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
2,324
|
|
|
|
2,324
|
|
|
|
—
|
|
|
Other provisions
|
|
|
3,104
|
|
|
|
2,370
|
|
|
|
(319
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
5,155
|
|
|
|
5,155
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
70,205
|
|
|
|
7,791
|
|
|
|
(2,093
|
)
|
|
|
(863
|
)
|
|
|
(65
|
)
|
|
|
74,975
|
|
|
|
38,024
|
|
|
|
36,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended September 30, 2015
|
|
|
As of
September 30,
2015
|
|
|
|
|
Beginning
balance
|
|
|
Increase
|
|
|
Utilization
|
|
|
Reversal
|
|
|
Other
|
|
|
Ending
balance
|
|
|
Current
|
|
|
Non-
current
|
|
|
Provision for installment of handset subsidy
|
|
W
|
26,799
|
|
|
|
—
|
|
|
|
(4,288
|
)
|
|
|
(17,583
|
)
|
|
|
—
|
|
|
|
4,928
|
|
|
|
2,951
|
|
|
|
1,977
|
|
|
Provision for restoration
|
|
|
59,727
|
|
|
|
3,126
|
|
|
|
(510
|
)
|
|
|
(5,115
|
)
|
|
|
1,346
|
|
|
|
58,574
|
|
|
|
33,479
|
|
|
|
25,095
|
|
|
Other provisions
|
|
|
562
|
|
|
|
2,929
|
|
|
|
(424
|
)
|
|
|
(472
|
)
|
|
|
—
|
|
|
|
2,595
|
|
|
|
1,976
|
|
|
|
619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
87,088
|
|
|
|
6,055
|
|
|
|
(5,222
|
)
|
|
|
(23,170
|
)
|
|
|
1,346
|
|
|
|
66,097
|
|
|
|
38,406
|
|
|
|
27,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group has provided handset subsidy to subscribers who purchase handsets on an installment basis and
recognized a provision for subsidy amounts which the Group is expected to pay in future periods.
37
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
In 2012, the Group disposed a portion of its property and equipment and
investment property, and entered into lease agreements with respect to those assets. These sale and leaseback transactions were accounted for as operating leases. The Group entered into operating lease agreements and sublease agreements in relation
to rented office space and the expected future lease payments and lease revenues as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
Lease payments
|
|
|
Revenues
|
|
|
Less than 1 year
|
|
W
|
36,562
|
|
|
|
1,882
|
|
|
1~5 years
|
|
|
70,282
|
|
|
|
896
|
|
|
More than 5 years
|
|
|
21,242
|
|
|
|
392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
128,086
|
|
|
|
3,170
|
|
|
|
|
|
|
|
|
|
|
|
|
19.
|
Defined Benefit Liabilities
|
|
|
(1)
|
Details of defined benefit liabilities as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Present value of defined benefit obligations
|
|
W
|
599,851
|
|
|
|
525,269
|
|
|
Fair value of plan assets
|
|
|
(449,078
|
)
|
|
|
(426,413
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
150,773
|
|
|
|
98,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Changes in defined benefit obligations for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Beginning balance
|
|
W
|
525,269
|
|
|
|
437,844
|
|
|
Current service cost
|
|
|
85,323
|
|
|
|
78,469
|
|
|
Interest cost
|
|
|
9,884
|
|
|
|
9,009
|
|
|
Remeasurement
|
|
|
|
|
|
|
|
|
|
- Demographic assumption
|
|
|
—
|
|
|
|
(6
|
)
|
|
- Financial assumption
|
|
|
—
|
|
|
|
1,488
|
|
|
- Adjustment based on experience
|
|
|
9,542
|
|
|
|
7,673
|
|
|
Benefit paid
|
|
|
(32,415
|
)
|
|
|
(43,416
|
)
|
|
Others
|
|
|
2,248
|
|
|
|
5,343
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
599,851
|
|
|
|
496,404
|
|
|
|
|
|
|
|
|
|
|
|
38
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
19.
|
Defined Benefit Liabilities, Continued
|
|
|
(3)
|
Changes in plan assets for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Beginning balance
|
|
W
|
426,413
|
|
|
|
346,257
|
|
|
Interest income
|
|
|
7,401
|
|
|
|
7,035
|
|
|
Remeasurement
|
|
|
(5,182
|
)
|
|
|
(1,917
|
)
|
|
Contributions
|
|
|
45,009
|
|
|
|
34,424
|
|
|
Benefit paid
|
|
|
(26,286
|
)
|
|
|
(35,093
|
)
|
|
Others
|
|
|
1,723
|
|
|
|
2,425
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
W
|
449,078
|
|
|
|
353,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Expenses recognized in profit and loss for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions
of
won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
Current service cost
|
|
W
|
85,323
|
|
|
|
78,469
|
|
|
Net interest cost
|
|
|
2,483
|
|
|
|
1,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
87,806
|
|
|
|
80,443
|
|
|
|
|
|
|
|
|
|
|
|
The above costs are recognized in labor cost and research and development.
39
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
20.
|
Derivative Instruments
|
|
|
(1)
|
Currency and interest rate swap contracts under cash flow hedge accounting as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands of foreign currencies)
|
|
Borrowing
date
|
|
Hedging Instrument (Hedged item)
|
|
Hedged risk
|
|
Contract type
|
|
Financial
institution
|
|
Duration of
contract
|
|
Jul. 20, 2007
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 400,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Morgan
Stanley and
five other
banks
|
|
Jul. 20, 2007 ~
Jul. 20, 2027
|
|
Jun. 12, 2012
|
|
Fixed-to-fixed
cross currency swap (Swiss Franc denominated bonds with face value of CHF 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Citibank and
four other
banks
|
|
Jun. 12, 2012 ~
Jun.12, 2017
|
|
Nov. 1,
2012
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 700,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Barclays and
eight other
banks
|
|
Nov. 1, 2012~
May 1, 2018
|
|
Jan. 17,
2013
|
|
Fixed-to-fixed
cross currency swap (Australia dollar denominated bonds with face value of AUD 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
BNP Paribas
and three
other banks
|
|
Jan. 17, 2013 ~
Nov. 17, 2017
|
|
Mar. 7,
2013
|
|
Floating-to-fixed
cross currency interest rate swap
(U.S. dollar denominated bonds with face value of USD 300,000)
|
|
Foreign currency risk and interest rate risk
|
|
Currency and interest rate swap
|
|
DBS Bank
|
|
Mar. 7, 2013 ~
Mar. 7, 2020
|
|
Oct. 29, 2013
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 300,000)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Korea
Development
Bank and
others
|
|
Oct.29, 2013 ~
Oct. 26, 2018
|
|
Dec. 16, 2013
|
|
Fixed-to-fixed
cross currency swap (U.S. dollar denominated bonds with face value of USD 69,056)
|
|
Foreign currency risk
|
|
Currency swap
|
|
Deutsche bank
|
|
Dec.16, 2013 ~
Apr. 29, 2022
|
40
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
20.
|
Derivative Instruments, Continued
|
|
|
(2)
|
As of September 30, 2016, details of fair values of above derivatives recorded in assets or liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won and thousands of foreign currencies)
|
|
|
|
|
Fair value
|
|
|
|
|
Cash flow hedge
|
|
|
Held for
trading
|
|
|
Total
|
|
|
Hedging Instrument (Hedged item)
|
|
Accumulated
gain (loss) on
valuation of
derivatives
|
|
|
Tax
effect
|
|
|
Accumulated
foreign
currency
translation
(gain) loss
|
|
|
Others
(*)
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structured bond(face value of KRW 100,000)
|
|
W
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9,292
|
|
|
|
9,292
|
|
|
Fixed-to-fixed
cross currency swap
(U.S. dollar denominated bonds with face value of USD 400,000)
|
|
|
(58,972
|
)
|
|
|
(18,828
|
)
|
|
|
(18,707
|
)
|
|
|
129,806
|
|
|
|
—
|
|
|
|
33,299
|
|
|
Fixed-to-fixed
cross currency swap
(U.S. dollar denominated bonds with face value of USD 300,000)
|
|
|
1,169
|
|
|
|
—
|
|
|
|
3,900
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
47,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed
cross currency swap
(Swiss Franc denominated bonds with face value of CHF 300,000)
|
|
W
|
(8,242
|
)
|
|
|
(2,631
|
)
|
|
|
(22,935
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(33,808
|
)
|
|
Non-current
liability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-to-fixed
cross currency swap
(U.S. dollar denominated bonds with face value of USD 700,000)
|
|
|
(16,021
|
)
|
|
|
(5,115
|
)
|
|
|
3,947
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17,189
|
)
|
|
Fixed-to-fixed
cross currency swap
(U.S. dollar denominated bonds with face value of AUD 300,000)
|
|
|
3,512
|
|
|
|
1,121
|
|
|
|
(84,045
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(79,412
|
)
|
|
Floating-to-fixed
cross currency interest rate swap
(U.S. dollar denominated bonds with face value of USD 300,000)
|
|
|
(9,009
|
)
|
|
|
(2,876
|
)
|
|
|
3,788
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,097
|
)
|
|
Fixed-to-fixed
long-term borrowings
(U.S. dollar denominated bonds with face value of USD 69,056)
|
|
|
(3,592
|
)
|
|
|
(1,147
|
)
|
|
|
2,830
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,909
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(140,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
Cash flow hedge accounting has been applied to the relevant contracts from May 12, 2010. Others represent gain on valuation of currency swap recognized in profit or loss prior to May 12, 2010, when the Group
started to apply hedge accounting to these contracts.
|
41
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
21.
|
Share Capital and Capital Surplus and Others
|
The Parent Company’s outstanding
share capital consists entirely of common stocks with a par value of
W
500. The number of authorized, issued and outstanding common shares and capital surplus and others as of September 30, 2016 and December 31, 2015 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, except for share data)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Number of authorized shares
|
|
|
220,000,000
|
|
|
|
220,000,000
|
|
|
Number of issued shares (*1)
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Share capital:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
W
|
44,639
|
|
|
|
44,639
|
|
|
Capital surplus and others
|
|
|
|
|
|
|
|
|
|
Paid-in
surplus
|
|
|
2,915,887
|
|
|
|
2,915,887
|
|
|
Treasury stock (Note 22)
|
|
|
(2,260,626
|
)
|
|
|
(2,260,626
|
)
|
|
Hybrid bond (Note 23)
|
|
|
398,518
|
|
|
|
398,518
|
|
|
Others (*2)
|
|
|
(861,681
|
)
|
|
|
(864,269
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
192,098
|
|
|
|
189,510
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Prior to 2015, the Parent Company retired shares of treasury stock which reduced its retained earnings before appropriation. As a result, the Parent Company’s outstanding shares have decreased without change in the
share capital.
|
|
(*2)
|
Others primarily consist of the excess of the consideration paid by the Group over the carrying values of net assets acquired from common control transactions with entities within the control of the Ultimate Controlling
Entity.
|
There were no changes in share capital for the nine-month periods ended September 30, 2016 and 2015 and
details of shares outstanding as of September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
September 30, 2015
|
|
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Issued
shares
|
|
|
Treasury
stock
|
|
|
Outstanding
shares
|
|
|
Beginning
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
9,809,375
|
|
|
|
70,936,336
|
|
|
Disposal of treasury stock
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,692,824
|
)
|
|
|
1,692,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
|
|
|
80,745,711
|
|
|
|
10,136,551
|
|
|
|
70,609,160
|
|
|
|
80,745,711
|
|
|
|
8,116,551
|
|
|
|
72,629,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Parent Company acquired treasury stocks to provide stock dividends,
merge with Shinsegi Telecom, Inc. and SK IMT Co, Ltd., increase shareholder value and to stabilize its stock prices.
Treasury stocks as
of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Number of shares
|
|
|
10,136,551
|
|
|
|
10,136,551
|
|
|
Amount
|
|
W
|
2,260,626
|
|
|
|
2,260,626
|
|
42
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
Hybrid bonds classified as equity as of September 30, 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
Type
|
|
Issuance
date
|
|
Maturity
|
|
Annual
interest
rate (%)
|
|
|
Amount
|
|
|
Private hybrid bonds
|
|
Unsecured subordinated bearer bond
|
|
June 7,
2013
|
|
June 7,
2073(*1)
|
|
|
4.21
|
(*2)
|
|
W
|
400,000
|
|
|
Issuance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,482
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
398,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hybrid bonds issued by the Parent Company are classified as equity as there is no contractual obligation for
delivery of financial assets to the bond holders. These are subordinated bonds which rank before common stocks in the event of a liquidation or reorganization of the Parent Company.
|
(*1)
|
The Parent Company has a right to extend the maturity under the same terms at issuance without any notice or announcement. The Parent Company also has the right to defer interest payment at its sole discretion.
|
|
(*2)
|
Annual interest rate is calculated as yield rate of 5 year national bonds plus premium. According to
Step-up
clause, additional premium of 0.25% and 0.75%, respectively, after 10
years and 25 years from the issuance date are applied.
|
Retained earnings as of September 30, 2016 and December 31,
2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Appropriated:
|
|
|
|
|
|
|
|
|
|
Legal reserve
|
|
W
|
22,320
|
|
|
|
22,320
|
|
|
Reserve for research & manpower development
|
|
|
60,001
|
|
|
|
87,301
|
|
|
Reserve for business expansion
|
|
|
9,871,138
|
|
|
|
9,671,138
|
|
|
Reserve for technology development
|
|
|
2,826,300
|
|
|
|
2,616,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,779,759
|
|
|
|
12,397,059
|
|
|
Unappropriated
|
|
|
2,689,632
|
|
|
|
2,610,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
15,469,391
|
|
|
|
15,007,627
|
|
|
|
|
|
|
|
|
|
|
|
43
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Details of reserves, net of taxes, as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Changes in unrealized fair value of
available-for-sale
financial assets
|
|
W
|
76,723
|
|
|
|
232,316
|
|
|
Other comprehensive loss of investments in associates and joint ventures
|
|
|
(296,558
|
)
|
|
|
(169,520
|
)
|
|
Changes in unrealized fair value of derivatives
|
|
|
(97,549
|
)
|
|
|
(83,200
|
)
|
|
Foreign currency translations differences for foreign operations
|
|
|
(11,270
|
)
|
|
|
29,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(328,654
|
)
|
|
|
9,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Change in reserves for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
fair value of
available-for-
sale
financial
assets
|
|
|
Other comprehensive
gain(loss) of
investment in
associates
|
|
|
Unrealized
fair value of
derivatives
|
|
|
Foreign
currency
translations
differences
for foreign
operations
|
|
|
Total
|
|
|
Balance at January 1, 2015
|
|
W
|
235,385
|
|
|
|
(163,808
|
)
|
|
|
(77,531
|
)
|
|
|
1,465
|
|
|
|
(4,489
|
)
|
|
Changes
|
|
|
(14,461
|
)
|
|
|
52,539
|
|
|
|
(23,732
|
)
|
|
|
37,452
|
|
|
|
51,798
|
|
|
Tax effect
|
|
|
4,523
|
|
|
|
(199
|
)
|
|
|
4,088
|
|
|
|
—
|
|
|
|
8,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2015
|
|
W
|
225,447
|
|
|
|
(111,468
|
)
|
|
|
(97,175
|
)
|
|
|
38,917
|
|
|
|
55,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
W
|
232,316
|
|
|
|
(169,520
|
)
|
|
|
(83,200
|
)
|
|
|
29,707
|
|
|
|
9,303
|
|
|
Changes
|
|
|
(188,470
|
)
|
|
|
(126,880
|
)
|
|
|
(19,304
|
)
|
|
|
(40,977
|
)
|
|
|
(375,631
|
)
|
|
Tax effect
|
|
|
32,877
|
|
|
|
(158
|
)
|
|
|
4,955
|
|
|
|
—
|
|
|
|
37,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2016
|
|
W
|
76,723
|
|
|
|
(296,558
|
)
|
|
|
(97,549
|
)
|
|
|
(11,270
|
)
|
|
|
(328,654
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
26.
|
Other Operating Expenses
|
Details of other operating expenses for the three and
nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Other Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communication
|
|
W
|
7,065
|
|
|
|
25,215
|
|
|
|
10,253
|
|
|
|
34,304
|
|
|
Utilities
|
|
|
77,450
|
|
|
|
209,862
|
|
|
|
76,194
|
|
|
|
202,802
|
|
|
Taxes and dues
|
|
|
10,628
|
|
|
|
28,469
|
|
|
|
11,330
|
|
|
|
27,798
|
|
|
Repair
|
|
|
81,588
|
|
|
|
237,077
|
|
|
|
76,323
|
|
|
|
222,155
|
|
|
Research and development
|
|
|
85,469
|
|
|
|
253,580
|
|
|
|
78,959
|
|
|
|
226,381
|
|
|
Training
|
|
|
8,237
|
|
|
|
22,028
|
|
|
|
9,967
|
|
|
|
24,536
|
|
|
Bad debt for accounts receivable - trade
|
|
|
10,052
|
|
|
|
32,695
|
|
|
|
8,860
|
|
|
|
43,855
|
|
|
Travel
|
|
|
6,310
|
|
|
|
18,428
|
|
|
|
6,513
|
|
|
|
20,478
|
|
|
Supplies and other
|
|
|
28,958
|
|
|
|
82,110
|
|
|
|
43,489
|
|
|
|
127,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
315,757
|
|
|
|
909,464
|
|
|
|
321,888
|
|
|
|
929,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.
|
Other
Non-operating
Income and Expenses
|
|
|
(1)
|
Details of other
non-operating
income and expenses for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Other
Non-operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees revenues
|
|
W
|
158
|
|
|
|
425
|
|
|
|
—
|
|
|
|
—
|
|
|
Gain on disposal of property and equipment and intangible assets
|
|
|
2,645
|
|
|
|
4,893
|
|
|
|
1,640
|
|
|
|
4,406
|
|
|
Others
|
|
|
9,322
|
|
|
|
48,131
|
|
|
|
3,003
|
|
|
|
15,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
12,125
|
|
|
|
53,449
|
|
|
|
4,643
|
|
|
|
20,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Non-operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on impairment of property and equipment and intangible assets
|
|
W
|
2,432
|
|
|
|
3,229
|
|
|
|
—
|
|
|
|
1,976
|
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
19,296
|
|
|
|
37,495
|
|
|
|
14,313
|
|
|
|
17,604
|
|
|
Donations
|
|
|
23,115
|
|
|
|
70,253
|
|
|
|
13,240
|
|
|
|
44,009
|
|
|
Bad debt for accounts receivable – others
|
|
|
4,195
|
|
|
|
7,604
|
|
|
|
3,496
|
|
|
|
7,570
|
|
|
Loss on impairment of investment assets
|
|
|
3,109
|
|
|
|
14,977
|
|
|
|
15,719
|
|
|
|
34,387
|
|
|
Others
|
|
|
10,532
|
|
|
|
20,336
|
|
|
|
11,187
|
|
|
|
50,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
62,679
|
|
|
|
153,894
|
|
|
|
57,955
|
|
|
|
155,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Finance Income and Costs
|
|
|
(1)
|
Details of finance income and costs for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Finance Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
W
|
14,642
|
|
|
|
39,037
|
|
|
|
11,316
|
|
|
|
36,497
|
|
|
Dividends
|
|
|
3,388
|
|
|
|
18,230
|
|
|
|
2,742
|
|
|
|
16,081
|
|
|
Gain on foreign currency transactions
|
|
|
2,475
|
|
|
|
9,988
|
|
|
|
7,213
|
|
|
|
13,502
|
|
|
Gain on foreign currency translations
|
|
|
4,353
|
|
|
|
5,389
|
|
|
|
6,359
|
|
|
|
10,382
|
|
|
Gain on disposal of long-term investment securities(*)
|
|
|
3,150
|
|
|
|
320,052
|
|
|
|
580
|
|
|
|
6,832
|
|
|
Gain on valuation of derivatives
|
|
|
1,024
|
|
|
|
4,708
|
|
|
|
3,603
|
|
|
|
4,633
|
|
|
Gain relating to financial liabilities at fair value through profit or loss
|
|
|
1,048
|
|
|
|
1,225
|
|
|
|
—
|
|
|
|
5,188
|
|
|
Gain on disposal of accounts receivable - trade
|
|
|
4,853
|
|
|
|
12,708
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
34,933
|
|
|
|
411,337
|
|
|
|
31,813
|
|
|
|
93,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
W
314,745 million of gain on disposal of long-term investment securities was recognized upon disposal of the Group’s remaining equity interest of Loen Entertainment, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Finance Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
W
|
74,657
|
|
|
|
217,066
|
|
|
|
73,866
|
|
|
|
224,090
|
|
|
Loss on foreign currency transactions
|
|
|
6,001
|
|
|
|
13,393
|
|
|
|
3,428
|
|
|
|
11,619
|
|
|
Loss on foreign currency translations
|
|
|
7,023
|
|
|
|
8,707
|
|
|
|
6,111
|
|
|
|
9,243
|
|
|
Loss on disposal of long-term
investment securities
|
|
|
310
|
|
|
|
444
|
|
|
|
95
|
|
|
|
1,746
|
|
|
Loss on settlement of derivatives
|
|
|
1,518
|
|
|
|
1,837
|
|
|
|
—
|
|
|
|
4,517
|
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
—
|
|
|
|
—
|
|
|
|
4,676
|
|
|
|
4,850
|
|
|
Other finance costs
|
|
|
—
|
|
|
|
—
|
|
|
|
66
|
|
|
|
3,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
89,509
|
|
|
|
241,447
|
|
|
|
88,242
|
|
|
|
259,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
28.
|
Finance Income and Costs, Continued
|
|
|
(2)
|
Details of interest income included in finance income for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Interest income on cash equivalents and deposits
|
|
W
|
4,616
|
|
|
|
14,962
|
|
|
|
6,630
|
|
|
|
21,781
|
|
|
Interest income on installment receivables and others
|
|
|
10,026
|
|
|
|
24,075
|
|
|
|
4,686
|
|
|
|
14,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
14,642
|
|
|
|
39,037
|
|
|
|
11,316
|
|
|
|
36,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Details of interest expense included in finance costs for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Interest expenses on borrowings
|
|
W
|
1,659
|
|
|
|
6,617
|
|
|
|
4,052
|
|
|
|
16,775
|
|
|
Interest expenses on debentures
|
|
|
61,557
|
|
|
|
182,532
|
|
|
|
60,562
|
|
|
|
177,076
|
|
|
Interest on finance lease liabilities
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
|
|
56
|
|
|
Others
|
|
|
11,441
|
|
|
|
27,917
|
|
|
|
9,243
|
|
|
|
30,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
74,657
|
|
|
|
217,066
|
|
|
|
73,866
|
|
|
|
224,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Details of impairment losses for financial assets for the three and nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Available-for-sale
financial assets
|
|
W
|
—
|
|
|
|
—
|
|
|
|
66
|
|
|
|
3,217
|
|
|
Accounts receivable - trade
|
|
|
10,289
|
|
|
|
32,695
|
|
|
|
8,860
|
|
|
|
43,855
|
|
|
Other receivables
|
|
|
4,195
|
|
|
|
7,604
|
|
|
|
3,496
|
|
|
|
7,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
14,484
|
|
|
|
40,299
|
|
|
|
12,422
|
|
|
|
54,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense was calculated by considering current tax expense
adjusted to changes in estimates related to prior periods, deferred tax expenses by origination and reversal of temporary differences.
47
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
|
(1)
|
Basic earnings per share
|
|
|
1)
|
Basic earnings per share for the three and nine-month periods ended September 30, 2016 and 2015 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, shares)
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Basic earnings per share attributable to owners of the Parent Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit attributable to owners of the Parent Company on common shares
|
|
W
|
325,102
|
|
|
|
1,187,084
|
|
|
|
382,251
|
|
|
|
1,222,585
|
|
|
Interest on hybrid bonds
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
|
—
|
|
|
|
(8,420
|
)
|
|
Profit for the period on common shares
|
|
|
325,102
|
|
|
|
1,178,664
|
|
|
|
382,251
|
|
|
|
1,214,165
|
|
|
Weighted average number of common shares outstanding
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
72,629,160
|
|
|
|
71,637,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (in won)
|
|
W
|
4,604
|
|
|
|
16,693
|
|
|
|
5,263
|
|
|
|
16,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
|
The weighted average number of common shares outstanding for the three and nine-month periods ended September 30, 2016 and 2015 are calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In shares)
|
|
|
|
|
|
|
|
|
|
Number of
shares
|
|
|
Weighted number of shares
|
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Issued common shares at January 1, 2016
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Weighted average number of treasury stock
|
|
|
(10,136,551
|
)
|
|
|
(10,136,551
|
)
|
|
|
(10,136,551
|
)
|
|
Weighted average number of common shares outstanding at September 30, 2016
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
70,609,160
|
|
|
|
|
|
|
(In shares)
|
|
Number of
shares
|
|
|
Weighted number of shares
|
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Issued common shares at January 1, 2015
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
|
80,745,711
|
|
|
Weighted average number of treasury stock
|
|
|
(8,116,551
|
)
|
|
|
(8,116,551
|
)
|
|
|
(9,108,682
|
)
|
|
Weighted average number of common shares outstanding at September 30, 2015
|
|
|
72,629,160
|
|
|
|
72,629,160
|
|
|
|
71,637,029
|
|
|
|
(2)
|
Diluted earnings per share
|
For the nine-month periods ended September 30, 2016 and 2015,
there were no potentially dilutive shares. Therefore, diluted earnings per share for the nine-month periods ended September 30, 2016 and 2015 are the same as basic earnings per share.
48
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
31. Categories of Financial Instruments
(1) Financial assets by categories as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
September 30, 2016
|
|
|
|
|
Financial
assets at fair
value through
profit or loss
|
|
|
Available-for-
sale financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Cash and cash equivalents
|
|
W
|
—
|
|
|
|
—
|
|
|
|
859,222
|
|
|
|
—
|
|
|
|
859,222
|
|
|
Financial instruments
|
|
|
—
|
|
|
|
—
|
|
|
|
533,883
|
|
|
|
—
|
|
|
|
533,883
|
|
|
Short-term investment securities
|
|
|
—
|
|
|
|
202,513
|
|
|
|
—
|
|
|
|
—
|
|
|
|
202,513
|
|
|
Long-term investment securities
|
|
|
—
|
|
|
|
1,073,976
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,073,976
|
|
|
Accounts receivable – trade
|
|
|
—
|
|
|
|
—
|
|
|
|
2,348,286
|
|
|
|
—
|
|
|
|
2,348,286
|
|
|
Loans and other receivables(*)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,955,162
|
|
|
|
—
|
|
|
|
1,955,162
|
|
|
Derivative financial assets
|
|
|
9,292
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38,368
|
|
|
|
47,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,292
|
|
|
|
1,276,489
|
|
|
|
5,696,553
|
|
|
|
38,368
|
|
|
|
7,020,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
December 31, 2015
|
|
|
|
|
Financial
assets at fair
value through
profit or loss
|
|
|
Available-for-
sale financial
assets
|
|
|
Loans and
receivables
|
|
|
Derivative
financial
instruments
designated
as hedged
item
|
|
|
Total
|
|
|
Cash and cash equivalents
|
|
W
|
—
|
|
|
|
—
|
|
|
|
768,922
|
|
|
|
—
|
|
|
|
768,922
|
|
|
Financial instruments
|
|
|
—
|
|
|
|
—
|
|
|
|
701,713
|
|
|
|
—
|
|
|
|
701,713
|
|
|
Short-term investment securities
|
|
|
—
|
|
|
|
92,262
|
|
|
|
—
|
|
|
|
—
|
|
|
|
92,262
|
|
|
Long-term investment securities
|
|
|
—
|
|
|
|
1,207,226
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,207,226
|
|
|
Accounts receivable – trade
|
|
|
—
|
|
|
|
—
|
|
|
|
2,390,110
|
|
|
|
—
|
|
|
|
2,390,110
|
|
|
Loans and other receivables(*)
|
|
|
—
|
|
|
|
—
|
|
|
|
1,102,403
|
|
|
|
—
|
|
|
|
1,102,403
|
|
|
Derivative financial assets
|
|
|
6,277
|
|
|
|
—
|
|
|
|
—
|
|
|
|
160,122
|
|
|
|
166,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
6,277
|
|
|
|
1,299,488
|
|
|
|
4,963,148
|
|
|
|
160,122
|
|
|
|
6,429,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
31.
|
Categories of Financial Instruments, Continued
|
|
|
(1)
|
Financial assets by categories as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
(*)
|
Details of loans and other receivables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Short-term loans
|
|
W
|
65,702
|
|
|
|
53,895
|
|
|
Accounts receivable - other
|
|
|
1,255,813
|
|
|
|
673,739
|
|
|
Accrued income
|
|
|
12,676
|
|
|
|
10,753
|
|
|
Other current assets
|
|
|
1,807
|
|
|
|
1,861
|
|
|
Long-term loans
|
|
|
88,480
|
|
|
|
62,454
|
|
|
Long-term accounts receivable - other
|
|
|
228,686
|
|
|
|
2,420
|
|
|
Guarantee deposits
|
|
|
301,998
|
|
|
|
297,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,955,162
|
|
|
|
1,102,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Financial liabilities by categories as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
September 30, 2016
|
|
|
|
|
Financial
liabilities at fair
value through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized cost
|
|
|
Derivative financial
instruments
designated as
hedged item
|
|
|
Total
|
|
|
Accounts payable – trade
|
|
W
|
—
|
|
|
|
306,722
|
|
|
|
—
|
|
|
|
306,722
|
|
|
Derivative financial liabilities
|
|
|
—
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
140,415
|
|
|
Borrowings
|
|
|
—
|
|
|
|
129,265
|
|
|
|
—
|
|
|
|
129,265
|
|
|
Debentures(*1)
|
|
|
104,479
|
|
|
|
6,939,212
|
|
|
|
—
|
|
|
|
7,043,691
|
|
|
Accounts payable - other and others (*2)
|
|
|
—
|
|
|
|
3,896,739
|
|
|
|
—
|
|
|
|
3,896,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
104,479
|
|
|
|
11,271,938
|
|
|
|
140,415
|
|
|
|
11,516,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
December 31, 2015
|
|
|
|
|
Financial
liabilities at fair
value through
profit or loss
|
|
|
Financial
liabilities
measured at
amortized cost
|
|
|
Derivative financial
instruments
designated as
hedged item
|
|
|
Total
|
|
|
Accounts payable – trade
|
|
W
|
—
|
|
|
|
279,782
|
|
|
|
—
|
|
|
|
279,782
|
|
|
Derivative financial liabilities
|
|
|
—
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
89,296
|
|
|
Borrowings
|
|
|
—
|
|
|
|
415,134
|
|
|
|
—
|
|
|
|
415,134
|
|
|
Debentures(*1)
|
|
|
155,704
|
|
|
|
6,952,949
|
|
|
|
—
|
|
|
|
7,108,653
|
|
|
Accounts payable - other and others (*2)
|
|
|
—
|
|
|
|
2,970,801
|
|
|
|
—
|
|
|
|
2,970,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
155,704
|
|
|
|
10,618,666
|
|
|
|
89,296
|
|
|
|
10,863,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
31.
|
Categories of Financial Instruments, Continued
|
|
|
(2)
|
Financial liabilities by categories as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
(*1)
|
Bonds classified as financial liabilities at fair value through profit or loss as of September 30, 2016 and December 31, 2015 are structured bonds and they were designated as financial liabilities at fair
value through profit or loss in order to eliminate a measurement inconsistency with the related derivatives.
|
|
|
(*2)
|
Details of accounts payable and other payables as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Accounts payable - other
|
|
W
|
1,191,608
|
|
|
|
1,323,434
|
|
|
Withholdings
|
|
|
1,637
|
|
|
|
1,178
|
|
|
Accrued expenses
|
|
|
1,162,960
|
|
|
|
920,739
|
|
|
Current installments of long-term payables - other
|
|
|
215,769
|
|
|
|
120,211
|
|
|
Long-term payables - other
|
|
|
1,303,535
|
|
|
|
581,697
|
|
|
Other
non-current
liabilities
|
|
|
21,230
|
|
|
|
23,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
3,896,739
|
|
|
|
2,970,801
|
|
|
|
|
|
|
|
|
|
|
|
|
32.
|
Financial Risk Management
|
|
|
(1)
|
Financial risk management
|
The Group is exposed to credit risk, liquidity risk and market risk.
Market risk is the risk related to the changes in market prices, such as foreign exchange rates, interest rates and equity prices. The Group implements a risk management system to monitor and manage these specific risks.
The Group’s financial assets consist of cash and cash equivalents, financial instruments, financial assets
available-for-sale,
trade and other receivables. Financial liabilities consist of trade and other payables, borrowings, and debentures.
Currency risk occurs on forecasted transaction and recognized assets and
liabilities which are denominated in a currency other than the functional currency of the Group. The Group manages currency risk by using currency forward, etc. to hedge currency risk on business transactions.
51
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
1) Market risk, Continued
(i) Currency risk, Continued
Foreign currency monetary assets and liabilities as of September 30, 2016 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won, thousands of foreign currencies)
|
|
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
Foreign
currencies
|
|
|
Won
translation
|
|
|
Foreign
Currencies
|
|
|
Won
translation
|
|
|
USD
|
|
|
151,023
|
|
|
W
|
165,567
|
|
|
|
1,842,455
|
|
|
W
|
2,019,887
|
|
|
EUR
|
|
|
15,089
|
|
|
|
18,565
|
|
|
|
19
|
|
|
|
23
|
|
|
JPY
|
|
|
122,865
|
|
|
|
1,331
|
|
|
|
9,306
|
|
|
|
101
|
|
|
AUD
|
|
|
—
|
|
|
|
—
|
|
|
|
299,401
|
|
|
|
250,623
|
|
|
CHF
|
|
|
—
|
|
|
|
—
|
|
|
|
299,697
|
|
|
|
340,174
|
|
|
Others
|
|
|
—
|
|
|
|
1,514
|
|
|
|
—
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
186,977
|
|
|
|
|
|
|
W
|
2,610,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition, the Group has entered into cross currency swaps to hedge against currency risk related to foreign
currency borrowings and debentures. (See Note 20)
As of September 30, 2016, effects on income before income tax as a result of change
in exchange rate by 10% are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
If increased by 10%
|
|
|
If decreased by 10%
|
|
|
USD
|
|
W
|
8,269
|
|
|
|
(8,269
|
)
|
|
EUR
|
|
|
959
|
|
|
|
(959
|
)
|
|
JPY
|
|
|
158
|
|
|
|
(158
|
)
|
|
Others
|
|
|
174
|
|
|
|
(174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
9,560
|
|
|
|
(9,560
|
)
|
|
|
|
|
|
|
|
|
|
|
(ii) Equity price risk
The Group has equity securities which include listed and
non-listed
securities for its liquidity
management and operating purpose. As of September 30, 2016,
available-for-sale
equity instruments measured at fair value amount of
W
931,455 million.
(iii) Interest rate risk
Since the Group’s interest bearing assets are mostly fixed-interest bearing assets, the Group’s revenue and operating cash flows are
not influenced by the changes in market interest rates. However, the Group still has interest rate risk arising from borrowings and debentures.
Accordingly, the Group performs various analysis of interest rate risk to reduce interest rate risk and to optimize its financing. To minimize
risks from changes in interest rates, the Group takes various measures such as refinancing, renewal, alternative financing and hedging.
52
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
|
|
1)
|
Market risk, Continued
|
|
|
(iii)
|
Interest rate risk, Continued
|
The Group’s interest rate risk arises from floating-rate borrowings and debentures. As
of September 30, 2016, floating-rate borrowings and debentures amount to
W
5,299 million and
W
328,890 million respectively, and the Group has entered into interest
rate swaps to hedge interest rate risk related to floating-rate debentures (See Note 20). On the other hand, if the interest rate increases (decreases) 1% with all other variables held constant, income before income taxes over the next one year will
fluctuate as much as
W
53 million due to the interest expense on floating-rate borrowings that have not entered into an interest rate swap agreement.
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet his/her contractual obligations. The maximum credit exposure as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Cash and cash equivalents
|
|
W
|
858,971
|
|
|
|
768,794
|
|
|
Financial instruments
|
|
|
533,883
|
|
|
|
701,713
|
|
|
Available-for-sale
financial assets
|
|
|
2,930
|
|
|
|
3,430
|
|
|
Accounts receivable – trade
|
|
|
2,348,286
|
|
|
|
2,390,110
|
|
|
Loans and receivables
|
|
|
1,955,162
|
|
|
|
1,102,403
|
|
|
Derivative financial assets
|
|
|
47,660
|
|
|
|
166,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
5,746,892
|
|
|
|
5,132,849
|
|
|
|
|
|
|
|
|
|
|
|
To manage credit risk, the Group evaluates the credit worthiness of each customer or counterparty considering
the party’s financial information, its own trading records and other factors. Based on such information, the Group establishes credit limits for each customer or counterparty.
For the nine-month period ended September 30, 2016, the Group has no trade and other receivables or loans which have indications of
significant impairment loss or are overdue for a prolonged period. As a result, the Group believes that the possibility of default is remote. Also, the Group’s credit risk can arise due to transactions with financial institutions related to its
cash and cash equivalents, financial instruments and derivatives. To minimize such risk, the Group has a policy to deal only with financial institutions with high credit ratings. The amount of maximum exposure to credit risk of the Group is the
carrying amount of financial assets as of September 30, 2016.
53
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
(1)
|
Financial risk management, Continued
|
Contractual maturities of financial liabilities as of September 30, 2016
are as follows:
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than
1 year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
|
Accounts payable - trade
|
|
W
|
306,722
|
|
|
|
306,722
|
|
|
|
306,722
|
|
|
|
—
|
|
|
|
—
|
|
|
Borrowings(*)
|
|
|
129,265
|
|
|
|
139,194
|
|
|
|
37,274
|
|
|
|
89,095
|
|
|
|
12,825
|
|
|
Debentures(*)
|
|
|
7,043,691
|
|
|
|
8,324,620
|
|
|
|
855,867
|
|
|
|
4,166,893
|
|
|
|
3,301,860
|
|
|
Accounts payable - other and others
|
|
|
3,896,739
|
|
|
|
4,022,868
|
|
|
|
2,502,719
|
|
|
|
996,261
|
|
|
|
523,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
11,376,417
|
|
|
|
12,793,404
|
|
|
|
3,702,582
|
|
|
|
5,252,249
|
|
|
|
3,838,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group does not expect that the cash flows included in the maturity analysis could occur significantly
earlier or at different amounts.
|
(*)
|
Includes interest to be paid.
|
As of September 30, 2016, periods which cash flows from
cash flow hedge derivatives are expected to occur are as follows:
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
amount
|
|
|
Contractual
cash flows
|
|
|
Less than
1 year
|
|
|
1 - 5 years
|
|
|
More than 5
years
|
|
|
Assets
|
|
W
|
38,368
|
|
|
|
39,379
|
|
|
|
6,149
|
|
|
|
39,584
|
|
|
|
(6,354
|
)
|
|
Liabilities
|
|
|
(140,415
|
)
|
|
|
(143,196
|
)
|
|
|
(40,835
|
)
|
|
|
(101,954
|
)
|
|
|
(407
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(102,047
|
)
|
|
|
(103,817
|
)
|
|
|
(34,686
|
)
|
|
|
(62,370
|
)
|
|
|
(6,761
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
The Group manages its capital to ensure that it will be able to continue as
a business while maximizing the return to shareholders through the optimization of its debt and equity structure. The overall strategy of the Group is the same as that of the Group as of and for the year ended December 31, 2015.
The Group monitors its debt-equity ratio as a capital management indicator. This ratio is calculated as total liabilities divided by total
equity; the total liabilities and equity is derived from the financial statements.
Debt-equity ratios as of September 30, 2016 and
December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
Total liabilities
|
|
W
|
14,011,518
|
|
|
|
13,207,291
|
|
|
Total equity
|
|
|
15,544,187
|
|
|
|
15,374,096
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-equity ratios
|
|
|
90.14
|
%
|
|
|
85.91
|
%
|
|
|
|
|
|
|
|
|
|
|
55
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
1)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Financial assets that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
9,292
|
|
|
|
—
|
|
|
|
9,292
|
|
|
|
—
|
|
|
|
9,292
|
|
|
Derivative financial assets
|
|
|
38,368
|
|
|
|
—
|
|
|
|
38,368
|
|
|
|
—
|
|
|
|
38,368
|
|
|
Available-for-sale
financial assets
|
|
|
925,293
|
|
|
|
776,262
|
|
|
|
47,513
|
|
|
|
101,518
|
|
|
|
925,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
972,953
|
|
|
|
776,262
|
|
|
|
95,173
|
|
|
|
101,518
|
|
|
|
972,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
104,479
|
|
|
|
—
|
|
|
|
104,479
|
|
|
|
—
|
|
|
|
104,479
|
|
|
Derivative financial liabilities
|
|
|
140,415
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
244,894
|
|
|
|
—
|
|
|
|
244,894
|
|
|
|
—
|
|
|
|
244,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are not measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
129,265
|
|
|
|
—
|
|
|
|
133,102
|
|
|
|
—
|
|
|
|
133,102
|
|
|
Debentures
|
|
|
6,939,212
|
|
|
|
—
|
|
|
|
7,550,641
|
|
|
|
—
|
|
|
|
7,550,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,068,477
|
|
|
|
—
|
|
|
|
7,683,743
|
|
|
|
—
|
|
|
|
7,683,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
32. Financial Risk Management, Continued
|
|
(3)
|
Fair value, Continued
|
|
|
2)
|
Fair value and carrying amount of financial assets and liabilities including fair value hierarchy as of December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Financial assets that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through profit or loss
|
|
W
|
6,277
|
|
|
|
—
|
|
|
|
6,277
|
|
|
|
—
|
|
|
|
6,277
|
|
|
Derivative financial assets
|
|
|
160,122
|
|
|
|
—
|
|
|
|
160,122
|
|
|
|
—
|
|
|
|
160,122
|
|
|
Available-for-sale
financial assets
|
|
|
1,076,291
|
|
|
|
897,958
|
|
|
|
47,262
|
|
|
|
131,071
|
|
|
|
1,076,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
1,242,690
|
|
|
|
897,958
|
|
|
|
213,661
|
|
|
|
131,071
|
|
|
|
1,242,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at fair value through profit or loss
|
|
W
|
155,704
|
|
|
|
—
|
|
|
|
155,704
|
|
|
|
—
|
|
|
|
155,704
|
|
|
Derivative financial liabilities
|
|
|
89,296
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
—
|
|
|
|
89,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
245,000
|
|
|
|
—
|
|
|
|
245,000
|
|
|
|
—
|
|
|
|
245,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities that are not measured at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
W
|
415,134
|
|
|
|
—
|
|
|
|
416,702
|
|
|
|
—
|
|
|
|
416,702
|
|
|
Debentures
|
|
|
6,952,949
|
|
|
|
—
|
|
|
|
7,411,909
|
|
|
|
—
|
|
|
|
7,411,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
7,368,083
|
|
|
|
—
|
|
|
|
7,828,611
|
|
|
|
—
|
|
|
|
7,828,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above information does not include fair values of financial assets and liabilities of which fair values
have not been measured as carrying amounts are reasonable approximation of fair values.
Available-for-sale
financial assets amounting to
W
351,196 million and
W
223,197 million as of September 30, 2016 and December 31, 2015, respectively, are
measured at cost in accordance with
K-IFRS
1039 since they are considered as equity instruments which do not have quoted price in an active market for the identical instruments (inputs for level 1) and cannot
be reliably measured using other valuation methods.
Fair value of the financial instruments that are traded in an active market
(available-for-sale
financial assets, financial liabilities at fair value through profit or loss, etc.) is measured based on the bid price at the end of the reporting date.
57
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
(3)
|
Fair value, Continued
|
The Group uses various valuation methods for determination of fair value
of financial instruments that are not traded in an active market. Fair value of
available-for-sale
securities is determined using the market approach methods and
financial assets through profit or loss are measured using the option pricing model. In addition, derivative financial contracts and long-term liabilities are measured using the present value methods. Inputs used to such valuation methods include
swap rate, interest rate, and risk premium, and the Group performs valuation using the inputs which are consistent with natures of assets and liabilities measured.
Interest rates used by the Group for the fair value measurement as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
Interest rate
|
|
|
Derivative instruments
|
|
|
1.90 ~ 3.44
|
%
|
|
Borrowings and debentures
|
|
|
1.55 ~ 3.48
|
%
|
|
|
3)
|
There have been no transfers between Level 2 and Level 1 for the nine-month period ended September 30, 2016 and changes of financial assets classified as Level 3 for the nine-month period ended
September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
January 1,
2016
|
|
|
Transfer
|
|
|
Other
comprehensive
loss
|
|
|
Disposal
|
|
|
Balance at
September 30,
2016
|
|
|
Available-for-sale
financial assets
|
|
W
|
131,071
|
|
|
|
4,446
|
|
|
|
(7,208
|
)
|
|
|
(26,791
|
)
|
|
|
101,518
|
|
58
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
32.
|
Financial Risk Management, Continued
|
|
|
(4)
|
Enforceable master netting agreement or similar agreement
|
Carrying amount of financial
instruments recognized of which offset agreements are applicable as of September 30, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross financial
instruments
recognized
|
|
|
Amount offset
|
|
|
Net financial
instruments presented
on the statement of
financial position
|
|
|
Relevant financial
instruments not
offset
|
|
|
Net
amount
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
42,591
|
|
|
|
—
|
|
|
|
42,591
|
|
|
|
(42,591
|
)
|
|
|
—
|
|
|
Accounts receivable – trade and others
|
|
|
128,867
|
|
|
|
(112,475
|
)
|
|
|
16,392
|
|
|
|
—
|
|
|
|
16,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
171,458
|
|
|
|
(112,475
|
)
|
|
|
58,983
|
|
|
|
(42,591
|
)
|
|
|
16,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
140,415
|
|
|
|
—
|
|
|
|
140,415
|
|
|
|
(42,591
|
)
|
|
|
97,824
|
|
|
Accounts payable – other and others
|
|
|
118,800
|
|
|
|
(112,475
|
)
|
|
|
6,325
|
|
|
|
—
|
|
|
|
6,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
259,215
|
|
|
|
(112,475
|
)
|
|
|
146,740
|
|
|
|
(42,591
|
)
|
|
|
104,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount of financial instruments recognized of which offset agreements are applicable as of
December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross financial
instruments
recognized
|
|
|
Amount offset
|
|
|
Net financial
instruments presented
on the statement of
financial position
|
|
|
Relevant financial
instruments not
offset
|
|
|
Net
amount
|
|
|
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
55,673
|
|
|
|
—
|
|
|
|
55,673
|
|
|
|
(55,673
|
)
|
|
|
—
|
|
|
Accounts receivable – trade and others
|
|
|
129,527
|
|
|
|
(113,003
|
)
|
|
|
16,524
|
|
|
|
—
|
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
185,200
|
|
|
|
(113,003
|
)
|
|
|
72,197
|
|
|
|
(55,673
|
)
|
|
|
16,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives(*)
|
|
W
|
89,734
|
|
|
|
—
|
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
34,061
|
|
|
Accounts payable – other and others
|
|
|
113,003
|
|
|
|
(113,003
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
202,737
|
|
|
|
(113,003
|
)
|
|
|
89,734
|
|
|
|
(55,673
|
)
|
|
|
34,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The balance represents the net amount under the standard terms and conditions of International Swap and Derivatives Association.
|
59
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
33.
|
Transactions with Related Parties
|
|
|
(1)
|
List of related parties
|
|
|
|
|
|
Relationship
|
|
Company
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
Joint ventures
|
|
Dogus Planet, Inc. and 4 other companies
|
|
Associates
|
|
SK hynix Inc. and 49 other companies
|
|
Affiliates
|
|
The Ultimate Controlling Entity’s other subsidiaries and associates, etc.
|
|
|
(2)
|
Compensation for the key management members
|
The Parent Company considers registered directors
who have substantial role and responsibility in planning, operating, and controlling of the business as key management members. The compensation given to such key management members for the three and nine-month periods ended September 30, 2016
and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Three-month
period ended
September 30
|
|
|
Nine-month
period ended
September 30
|
|
|
Salaries
|
|
W
|
220
|
|
|
|
1,421
|
|
|
|
207
|
|
|
|
1,767
|
|
|
Defined benefits plan expenses
|
|
|
48
|
|
|
|
376
|
|
|
|
42
|
|
|
|
584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
268
|
|
|
|
1,797
|
|
|
|
249
|
|
|
|
2,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation for the key management members includes salaries,
non-monetary
salaries and contributions made in relation to pension plans.
60
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
33.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Collection of
loans
|
|
|
Scope
|
|
Company
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.(*1)
|
|
W
|
5,984
|
|
|
|
16,988
|
|
|
|
119,102
|
|
|
|
567,221
|
|
|
|
69,386
|
|
|
|
118,972
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
560
|
|
|
|
1,630
|
|
|
|
11,998
|
|
|
|
35,335
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
73
|
|
|
|
225
|
|
|
|
5,418
|
|
|
|
11,139
|
|
|
|
7,479
|
|
|
|
11,788
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK hynix Inc.(*2)
|
|
|
9,027
|
|
|
|
94,331
|
|
|
|
83
|
|
|
|
373
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
328
|
|
|
|
948
|
|
|
|
2
|
|
|
|
14,971
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
4,929
|
|
|
|
14,928
|
|
|
|
3,667
|
|
|
|
11,146
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others(*3)
|
|
|
2
|
|
|
|
6,084
|
|
|
|
1,085
|
|
|
|
3,800
|
|
|
|
316
|
|
|
|
359
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,919
|
|
|
|
118,146
|
|
|
|
22,253
|
|
|
|
76,764
|
|
|
|
7,795
|
|
|
|
12,147
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
1,053
|
|
|
|
4,083
|
|
|
|
265
|
|
|
|
1,427
|
|
|
|
1,245
|
|
|
|
1,890
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
3,299
|
|
|
|
8,486
|
|
|
|
301,420
|
|
|
|
834,915
|
|
|
|
—
|
|
|
|
16
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Networks service Co., Ltd.
|
|
|
234
|
|
|
|
1,020
|
|
|
|
23,506
|
|
|
|
68,336
|
|
|
|
1,492
|
|
|
|
2,101
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
392
|
|
|
|
525
|
|
|
|
38,860
|
|
|
|
57,216
|
|
|
|
30,076
|
|
|
|
84,669
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK TNS Co., Ltd
|
|
|
29
|
|
|
|
76
|
|
|
|
11,575
|
|
|
|
28,960
|
|
|
|
103,969
|
|
|
|
195,310
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Energy Co., Ltd.
|
|
|
2,300
|
|
|
|
5,048
|
|
|
|
163
|
|
|
|
618
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Gas Co., Ltd.
|
|
|
721
|
|
|
|
1,662
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others
|
|
|
9,676
|
|
|
|
26,737
|
|
|
|
21,043
|
|
|
|
47,637
|
|
|
|
14,985
|
|
|
|
21,273
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,704
|
|
|
|
47,637
|
|
|
|
396,832
|
|
|
|
1,039,111
|
|
|
|
151,767
|
|
|
|
305,259
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
38,607
|
|
|
|
182,771
|
|
|
|
538,187
|
|
|
|
1,683,096
|
|
|
|
228,948
|
|
|
|
436,378
|
|
|
|
—
|
|
|
|
1,100
|
|
|
|
1,290
|
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
Operating expenses and others include
W
203,635 million of dividends paid by the Parent Company.
|
|
(*2)
|
Operating revenue and others include
W
73,050 million of dividends paid by the associates which was deducted from the investment in associates.
|
|
(*3)
|
Operating revenue and others include
W
6,082 million of dividends received from the Korea IT Fund.
|
61
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
33.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
Operating
revenue and
others
|
|
|
Operating
expense and
others
|
|
|
Acquisition of
property and
equipment
|
|
|
Loans
|
|
|
Scope
|
|
Company
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Three-
month
period
ended
Sep. 30
|
|
|
Nine-
month
period
ended
Sep. 30
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.(formerly, SK C&C Co., Ltd.)(*1)
|
|
W
|
6,855
|
|
|
|
14,234
|
|
|
|
109,558
|
|
|
|
270,486
|
|
|
|
43,677
|
|
|
|
134,061
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Holdings Co., Ltd. (formerly, SK Holding Co., Ltd.) (*2,3)
|
|
|
55
|
|
|
|
1,299
|
|
|
|
23,257
|
|
|
|
212,378
|
|
|
|
117
|
|
|
|
117
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,910
|
|
|
|
15,533
|
|
|
|
132,815
|
|
|
|
482,864
|
|
|
|
43,794
|
|
|
|
134,178
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates
|
|
F&U Credit information Co., Ltd.
|
|
|
633
|
|
|
|
1,964
|
|
|
|
11,114
|
|
|
|
33,480
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
HappyNarae Co., Ltd.
|
|
|
88
|
|
|
|
227
|
|
|
|
1,651
|
|
|
|
4,610
|
|
|
|
2,352
|
|
|
|
5,221
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK hynix Inc.(*4)
|
|
|
2,725
|
|
|
|
52,903
|
|
|
|
36
|
|
|
|
2,235
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
413
|
|
|
|
3,543
|
|
|
|
2,002
|
|
|
|
13,437
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
5,325
|
|
|
|
16,175
|
|
|
|
3,958
|
|
|
|
12,181
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Xian Tianlong Science and Technology Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,463
|
|
|
|
8,616
|
|
|
|
|
Others(*5)
|
|
|
898
|
|
|
|
5,954
|
|
|
|
1,822
|
|
|
|
11,334
|
|
|
|
—
|
|
|
|
1,141
|
|
|
|
—
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,082
|
|
|
|
80,766
|
|
|
|
20,583
|
|
|
|
77,277
|
|
|
|
2,352
|
|
|
|
6,362
|
|
|
|
1,463
|
|
|
|
9,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
1,537
|
|
|
|
6,296
|
|
|
|
12,845
|
|
|
|
25,902
|
|
|
|
98,555
|
|
|
|
223,949
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Networks Co., Ltd.
|
|
|
3,114
|
|
|
|
9,137
|
|
|
|
284,214
|
|
|
|
904,931
|
|
|
|
2
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Networks service Co., Ltd.
|
|
|
2,837
|
|
|
|
7,667
|
|
|
|
24,552
|
|
|
|
62,326
|
|
|
|
1,441
|
|
|
|
1,967
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
104
|
|
|
|
316
|
|
|
|
13,996
|
|
|
|
35,097
|
|
|
|
34,595
|
|
|
|
107,954
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Energy Co., Ltd.
|
|
|
2,919
|
|
|
|
5,934
|
|
|
|
318
|
|
|
|
761
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
SK Gas Co., Ltd.
|
|
|
756
|
|
|
|
2,641
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others
|
|
|
7,773
|
|
|
|
20,867
|
|
|
|
13,677
|
|
|
|
33,337
|
|
|
|
6,230
|
|
|
|
10,793
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,040
|
|
|
|
52,858
|
|
|
|
349,603
|
|
|
|
1,062,355
|
|
|
|
140,823
|
|
|
|
344,665
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
W
|
36,032
|
|
|
|
149,157
|
|
|
|
503,001
|
|
|
|
1,622,496
|
|
|
|
186,969
|
|
|
|
485,205
|
|
|
|
1,463
|
|
|
|
9,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entity’s equity method investee , merged with SK Holdings Co., Ltd., the ultimate controlling entity of the Parent Company, and changed its
name to SK Holdings Co., Ltd.
|
|
(*2)
|
These relate to transactions occurred prior to the merger with SK C&C Co., Ltd on July 31, 2015.
|
|
(*3)
|
Operating expense and others include
W
191,416 million of dividends paid by the Parent Company.
|
62
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
33.
|
Transactions with Related Parties, Continued
|
|
|
(3)
|
Transactions with related parties for the nine-month periods ended September 30, 2016 and 2015 are as follows, Continued:
|
|
(*4)
|
Operating revenue and others include
W
43,830 million of dividends paid by SK hynix Inc. which was deducted from the investment in associates.
|
|
(*5)
|
Operating revenue and others include
W
2,103 million and
W
227 million of dividends paid by Korea IT Fund and UniSK, respectively, which were
deducted from the investment in associates.
|
|
|
(4)
|
Account balances as of September 30, 2016 and December 31, 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts
receivable-trade
and others
|
|
|
Accounts
payable – other
and others
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd.
|
|
W
|
—
|
|
|
|
1,294
|
|
|
|
64,904
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
—
|
|
|
|
35
|
|
|
|
6,416
|
|
|
|
|
F&U Credit information Co., Ltd.
|
|
|
—
|
|
|
|
13
|
|
|
|
1,065
|
|
|
|
|
SK hynix Inc.
|
|
|
—
|
|
|
|
33,710
|
|
|
|
26
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,017
|
|
|
|
136
|
|
|
|
—
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
—
|
|
|
|
38,412
|
|
|
|
—
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
8,114
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
—
|
|
|
|
1,595
|
|
|
|
5,097
|
|
|
|
|
Xian Tianlong Science and Technology Co., Ltd.
|
|
|
8,287
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
280
|
|
|
|
771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,451
|
|
|
|
82,295
|
|
|
|
13,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
—
|
|
|
|
996
|
|
|
|
—
|
|
|
|
|
SK Networks. Co., Ltd.
|
|
|
—
|
|
|
|
1,660
|
|
|
|
191,671
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
—
|
|
|
|
2
|
|
|
|
4,858
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
—
|
|
|
|
420
|
|
|
|
14,677
|
|
|
|
|
SK TNS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
24,665
|
|
|
|
|
SK innovation co., ltd.
|
|
|
—
|
|
|
|
9,019
|
|
|
|
166
|
|
|
|
|
SK Energy Co., Ltd.
|
|
|
—
|
|
|
|
1,723
|
|
|
|
1,104
|
|
|
|
|
SK Gas Co., Ltd.
|
|
|
—
|
|
|
|
11
|
|
|
|
9
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
1,434
|
|
|
|
11,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
15,265
|
|
|
|
248,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
31,451
|
|
|
|
98,854
|
|
|
|
326,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
33.
|
Transactions with Related Parties, Continued
|
|
|
(4)
|
Account balances as of September 30, 2016 and December 31, 2015 are as follows, Continued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
Accounts receivable
|
|
|
Accounts payable
|
|
|
Scope
|
|
Company
|
|
Loans
|
|
|
Accounts
receivable-trade
and others
|
|
|
Accounts
payable – other
and others
|
|
|
Ultimate Controlling Entity
|
|
SK Holdings Co., Ltd. (formerly, SK C&C Co., Ltd.) (*)
|
|
W
|
—
|
|
|
|
1,836
|
|
|
|
160,133
|
|
|
Associates
|
|
HappyNarae Co., Ltd.
|
|
|
—
|
|
|
|
12
|
|
|
|
6,162
|
|
|
|
|
F&U Credit information Co., Ltd.
|
|
|
—
|
|
|
|
66
|
|
|
|
934
|
|
|
|
|
SK hynix Inc.
|
|
|
—
|
|
|
|
4,360
|
|
|
|
155
|
|
|
|
|
SK Wyverns Baseball Club Co., Ltd.
|
|
|
1,017
|
|
|
|
4,502
|
|
|
|
—
|
|
|
|
|
Wave City Development Co., Ltd.
|
|
|
1,890
|
|
|
|
38,412
|
|
|
|
—
|
|
|
|
|
Daehan Kanggun BcN Co., Ltd.
|
|
|
22,147
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
KEB HanaCard Co., Ltd.
|
|
|
—
|
|
|
|
1,771
|
|
|
|
9,042
|
|
|
|
|
Xian Tianlong Science and Technology Co., Ltd.
|
|
|
8,287
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
299
|
|
|
|
964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,341
|
|
|
|
49,422
|
|
|
|
17,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
SK Engineering & Construction Co., Ltd.
|
|
|
—
|
|
|
|
1,005
|
|
|
|
14,877
|
|
|
|
|
SK Networks. Co., Ltd.
|
|
|
—
|
|
|
|
1,569
|
|
|
|
208,291
|
|
|
|
|
SK Networks Services Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
9,414
|
|
|
|
|
SK Telesys Co., Ltd.
|
|
|
—
|
|
|
|
140
|
|
|
|
37,491
|
|
|
|
|
SK TNS Co., Ltd.
|
|
|
—
|
|
|
|
—
|
|
|
|
43,585
|
|
|
|
|
SK innovation co., ltd.
|
|
|
—
|
|
|
|
2,159
|
|
|
|
1,424
|
|
|
|
|
SK Energy Co., Ltd.
|
|
|
—
|
|
|
|
1,681
|
|
|
|
173
|
|
|
|
|
SK Gas Co., Ltd.
|
|
|
—
|
|
|
|
1,830
|
|
|
|
9
|
|
|
|
|
Others
|
|
|
—
|
|
|
|
2,886
|
|
|
|
14,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
11,270
|
|
|
|
329,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
33,341
|
|
|
|
62,528
|
|
|
|
507,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
On August 1, 2015, SK C&C Co., Ltd., the Ultimate Controlling Entity’s investor using equity method, merged SK Holdings Co., Ltd., the ultimate controlling entity of the Parent Company, and changed its
name to SK, Holdings Co., Ltd.
|
|
|
(5)
|
M&Service Co., Ltd., a subsidiary of the Parent Company, entered into performance agreement with SK Energy Co., Ltd. and provided a blank note to SK Energy Co., Ltd., with regard to this transaction.
|
|
|
(6)
|
There were additional investments in associates and joint ventures during the nine-month period ended September 30, 2016 as presented in Note 10.
|
64
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
34.
|
Commitments and Contingencies
|
|
|
(1)
|
Collateral assets and commitments
|
SK Broadband Co., Ltd., a subsidiary of the
Parent Company, has pledged its properties as collateral for leases on buildings in the amount of
W
7,035 million as of September 30, 2016.
SK Broadband Co., Ltd. has guaranteed for employees’ borrowings relating to employee stock ownership program and provided short-term
financial instruments amounting to
W
728 million as collateral as of September 30, 2016.
As of September 30, 2016 the Group is involved in various legal claims and
litigation. Provision recognized in relation to these claims and litigation is immaterial. For those legal claims and litigation for which no provision was recognized, management does not believe the Group has a present obligation for these matters,
nor is it expected any of these claims or litigation will have a significant impact on the Group’s financial position or operating results in the event an outflow of resources is ultimately necessary.
|
|
(3)
|
Accounts receivables from the sale of handsets
|
The agents of the Parent Company sell handsets
to our subscribers on an installment basis. During the nine-month period ended September 30, 2016, the Parent Company entered into comprehensive agreement to purchase the accounts receivables from the handset sales with agents and to transfer
the accounts receivables from the handset sales to a Special Purpose Company, respectively.
The accounts receivables from the sale of
handsets amounting to
W
714,074 million as of September 30, 2016, which the Parent Company purchased according to relevant comprehensive agreement are recognized as accounts receivable – other and long-term accounts
receivable- other.
|
|
(4)
|
Frequency usage rights
|
During the nine-month period ended September 30, 2016, the Parent
Company secured bandwidth blocs in the 2.6 GHz band for
W
1,330,100 million at the spectrum auction held by the Ministry of Science, ICT and Future Planning (MSIP) of Korea. The Parent Company acquired the
ownership of frequency usage rights for 2.6 GHz band and made the initial payment in accordance with the terms of the agreement in August 2016. The remaining consideration will be paid on an annual installment basis for 10 years from March 2017.
65
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
35.
|
Statements of Cash Flows
|
|
|
(1)
|
Adjustments for income and expenses from operating activities for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Interest income
|
|
W
|
(39,037
|
)
|
|
|
(36,497
|
)
|
|
Dividends
|
|
|
(18,230
|
)
|
|
|
(16,081
|
)
|
|
Gain on foreign currency translation
|
|
|
(5,389
|
)
|
|
|
(10,382
|
)
|
|
Gain on relating to financial liabilities at fair value through profit or loss
|
|
|
(1,225
|
)
|
|
|
(5,188
|
)
|
|
Gain on disposal of long-term investments securities
|
|
|
(320,052
|
)
|
|
|
(6,832
|
)
|
|
Gain on valuation of derivatives
|
|
|
(4,708
|
)
|
|
|
(4,633
|
)
|
|
Gain on disposal of accounts receivable - trade
|
|
|
(12,708
|
)
|
|
|
—
|
|
|
Gain related to investments in associates and joint ventures, net
|
|
|
(228,813
|
)
|
|
|
(626,278
|
)
|
|
Gain on disposal of property and equipment and intangible assets
|
|
|
(4,893
|
)
|
|
|
(4,406
|
)
|
|
Other income
|
|
|
(794
|
)
|
|
|
(98
|
)
|
|
Interest expense
|
|
|
217,066
|
|
|
|
224,090
|
|
|
Loss on foreign currency translation
|
|
|
8,707
|
|
|
|
9,243
|
|
|
Loss on disposal of long-term investments securities
|
|
|
444
|
|
|
|
1,746
|
|
|
Loss on settlement of derivatives
|
|
|
1,837
|
|
|
|
4,517
|
|
|
Loss relating to financial liabilities at fair value through profit or loss
|
|
|
—
|
|
|
|
4,850
|
|
|
Other finance costs
|
|
|
—
|
|
|
|
3,217
|
|
|
Bad debt expense
|
|
|
32,695
|
|
|
|
43,855
|
|
|
Income tax expense
|
|
|
346,646
|
|
|
|
408,015
|
|
|
Depreciation and amortization
|
|
|
2,266,101
|
|
|
|
2,222,893
|
|
|
Loss on impairment of property and equipment and intangible assets
|
|
|
3,229
|
|
|
|
1,976
|
|
|
Loss on disposal of property and equipment and intangible assets
|
|
|
37,495
|
|
|
|
17,604
|
|
|
Provision for retirement benefits
|
|
|
87,806
|
|
|
|
80,443
|
|
|
Loss on impairment of investment assets
|
|
|
14,977
|
|
|
|
34,387
|
|
|
Bad debt for accounts receivable - other
|
|
|
7,604
|
|
|
|
7,570
|
|
|
Other expenses
|
|
|
21,320
|
|
|
|
7,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
2,410,078
|
|
|
|
2,361,343
|
|
|
|
|
|
|
|
|
|
|
|
66
SK TELECOM CO., LTD. and Subsidiaries
Notes to the Condensed Consolidated Interim Financial Statements
For the nine-month periods ended September 30, 2016 and 2015
|
35.
|
Statements of Cash Flows, Continued
|
|
|
(2)
|
Changes in assets and liabilities from operating activities for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Accounts receivable - trade
|
|
W
|
(2,254
|
)
|
|
|
(193,599
|
)
|
|
Accounts receivable - other
|
|
|
(484,036
|
)
|
|
|
(53,057
|
)
|
|
Accrued income
|
|
|
441
|
|
|
|
84
|
|
|
Advance payments
|
|
|
10,864
|
|
|
|
(35,155
|
)
|
|
Prepaid expenses
|
|
|
(21,616
|
)
|
|
|
(31,866
|
)
|
|
Value-Added Tax refundable
|
|
|
(1,527
|
)
|
|
|
295
|
|
|
Inventories
|
|
|
(6,125
|
)
|
|
|
(5,662
|
)
|
|
Long-term receivables - other
|
|
|
(226,167
|
)
|
|
|
—
|
|
|
Guarantee deposits
|
|
|
(3,449
|
)
|
|
|
(14,647
|
)
|
|
Accounts payable - trade
|
|
|
37,497
|
|
|
|
59,267
|
|
|
Accounts payable - other
|
|
|
(117,347
|
)
|
|
|
(173,754
|
)
|
|
Advanced receipts
|
|
|
7,966
|
|
|
|
(3,399
|
)
|
|
Withholdings
|
|
|
210,506
|
|
|
|
9,761
|
|
|
Deposits received
|
|
|
(1,974
|
)
|
|
|
(5,746
|
)
|
|
Accrued expenses
|
|
|
207,212
|
|
|
|
(51,303
|
)
|
|
Value-Added Tax payable
|
|
|
7,685
|
|
|
|
10,957
|
|
|
Unearned revenue
|
|
|
(34,438
|
)
|
|
|
(105,404
|
)
|
|
Provisions
|
|
|
905
|
|
|
|
(29,555
|
)
|
|
Long-term provisions
|
|
|
(20
|
)
|
|
|
(6,623
|
)
|
|
Plan assets
|
|
|
(18,723
|
)
|
|
|
669
|
|
|
Retirement benefit payment
|
|
|
(32,415
|
)
|
|
|
(43,416
|
)
|
|
Others
|
|
|
(11,549
|
)
|
|
|
(21,154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W
|
(478,564
|
)
|
|
|
(693,307
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Significant
non-cash
transactions for the nine-month periods ended September 30, 2016 and 2015 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of won)
|
|
|
|
|
|
|
|
|
|
For the nine-month period ended
|
|
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
Increase(decrease) of accounts payable - other related to acquisition of property and equipment
and intangible assets
|
|
W
|
800,734
|
|
|
|
(238,064
|
)
|
67