Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | LN |
Entity Registrant Name | LINE Corp |
Entity Central Index Key | 1,611,820 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 238,496,810 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | ¥ 123,606 | ¥ 134,698 |
Trade and other receivables | 42,892 | 28,167 |
Other financial assets, current | 13,258 | 6,952 |
Inventories | 3,455 | 961 |
Other current assets | 7,438 | 3,929 |
Total current assets | 190,649 | 174,707 |
Non-current assets | ||
Property and equipment | 15,125 | 9,029 |
Goodwill | 16,767 | 3,400 |
Other intangible assets | 6,486 | 1,851 |
Investments in associates and joint ventures | 24,844 | 12,712 |
Other financial assets, non-current | 32,084 | 35,715 |
Deferred tax assets | 16,492 | 18,385 |
Other non-current assets | 992 | 290 |
Total non-current assets | 112,790 | 81,382 |
Total assets | 303,439 | 256,089 |
Current liabilities | ||
Trade and other payables | 28,810 | 21,532 |
Other financial liabilities, current | 28,003 | 24,497 |
Accrued expenses | 12,087 | 9,049 |
Income tax payables | 2,365 | 5,699 |
Advances received | 17,975 | 11,286 |
Deferred revenue | 9,246 | 9,739 |
Provisions, current | 991 | 964 |
Other current liabilities | 1,940 | 3,670 |
Total current liabilities | 101,417 | 86,436 |
Non-current liabilities | ||
Other financial liabilities, non-current | 602 | |
Deferred tax liabilities | 1,573 | 1,161 |
Provisions, non-current | 3,060 | 1,120 |
Post-employment benefits | 6,162 | 6,204 |
Other non-current liabilities | 648 | 145 |
Total non-current liabilities | 12,045 | 8,630 |
Total liabilities | 113,462 | 95,066 |
Shareholders' equity | ||
Share capital | 92,369 | 77,856 |
Share premium | 93,560 | 91,208 |
Treasury shares | (4,000) | |
Accumulated deficit | (4,294) | (12,381) |
Accumulated other comprehensive income | 7,440 | 4,151 |
Equity attributable to the shareholders of the Company | 185,075 | 160,834 |
Non-controlling interests | 4,902 | 189 |
Total shareholders' equity | 189,977 | 161,023 |
Total liabilities and shareholders' equity | ¥ 303,439 | ¥ 256,089 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues and other operating income: | |||
Revenues | ¥ 167,147 | ¥ 140,704 | ¥ 120,406 |
Other operating income | 12,011 | 5,892 | 474 |
Total revenues and other operating income | 179,158 | 146,596 | 120,880 |
Operating expenses: | |||
Payment processing and licensing expenses | (29,589) | (29,781) | (28,742) |
Employee compensation expenses | (42,469) | (39,445) | (35,572) |
Marketing expenses | (15,477) | (11,833) | (16,596) |
Infrastructure and communication expenses | (9,087) | (7,770) | (7,712) |
Authentication and other service expenses | (24,906) | (14,394) | (12,133) |
Depreciation and amortization expenses | (7,149) | (5,100) | (3,733) |
Other operating expenses | (25,403) | (18,376) | (14,432) |
Total operating expenses | (154,080) | (126,699) | (118,920) |
Profit from operating activities | 25,078 | 19,897 | 1,960 |
Finance income | 257 | 87 | 71 |
Finance costs | (26) | (65) | (106) |
Share of loss of associates and joint ventures | (6,321) | (833) | (205) |
Loss on foreign currency transactions, net | (818) | (43) | (520) |
Other non-operating income | 1,963 | 9 | 157 |
Other non-operating expenses | (1,988) | (1,062) | (1,887) |
(Loss)/profit before tax from continuing operations | 18,145 | 17,990 | (530) |
Income tax benefits/(expenses) | (9,922) | (8,904) | 146 |
(Loss)/profit for the year from continuing operations | 8,223 | 9,086 | (384) |
Loss from discontinued operations, net of tax | (13) | (1,982) | (7,588) |
(Loss)/profit for the year | 8,210 | 7,104 | (7,972) |
Attributable to: | |||
The shareholders of the Company | 8,078 | 6,763 | (7,582) |
Non-controlling interests | 132 | 341 | (390) |
(Loss)/profit for the year | ¥ 8,210 | ¥ 7,104 | ¥ (7,972) |
Earnings per share | |||
Basic (loss)/profit for the year attributable to the shareholders of the Company | ¥ 36.56 | ¥ 34.84 | ¥ (43.33) |
Diluted (loss)/profit for the year attributable to the shareholders of the Company | 34.01 | 31.48 | (39.12) |
Earnings per share from continuing operations | |||
Basic profit from continuing operations attributable to the shareholders of the Company | 36.62 | 45.05 | 0.04 |
Diluted profit from continuing operations attributable to the shareholders of the Company | 34.06 | 40.70 | 0.03 |
Earnings per share from discontinued operations | |||
Basic loss from discontinued operations attributable to the shareholders of the Company | (0.06) | (10.21) | (43.37) |
Diluted loss from discontinued operations attributable to the shareholders of the Company | ¥ (0.05) | ¥ (9.22) | ¥ (39.15) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [Abstract] | |||
(Loss)/profit for the year | ¥ 8,210 | ¥ 7,104 | ¥ (7,972) |
Other comprehensive income - Items that will not be reclassified to profit or loss | |||
Remeasurement of defined benefit plans | 2,093 | 674 | (1,722) |
Income tax relating to items that will not be reclassified to profit or loss | (488) | (209) | 576 |
Other comprehensive income - Items that may be reclassified to profit or loss | |||
Available-for-sale financial assets: Net changes in fair value | (3,339) | (2,019) | 1,551 |
Available-for-sale financial assets: Reclassification to profit or loss | 1,090 | 293 | 1,790 |
Exchange differences on translation of foreign operations: (Loss)/gain arising during the year | 3,751 | (299) | (281) |
Exchange differences on translation of foreign operations: Reclassification to profit or loss | (13) | 50 | |
Proportionate share of other comprehensive income of associates and joint ventures | 106 | 3 | 15 |
Income tax relating to items that may be reclassified subsequently to profit or loss | 333 | 255 | (290) |
Total other comprehensive income for the year, net of tax | 3,533 | (1,252) | 1,639 |
Total comprehensive (loss)/income for the year | 11,743 | 5,852 | (6,333) |
Attributable to: | |||
The shareholders of the Company | 11,365 | 5,546 | (5,964) |
Non-controlling interests | ¥ 378 | ¥ 306 | ¥ (369) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - JPY (¥) ¥ in Millions | Total | Share capital [member] | Share premium [member] | Treasury shares [member] | Accumulated deficit [member] | Accumulated other comprehensive income [member]Foreign currency translation reserve [member] | Accumulated other comprehensive income [member]Available-for-sale reserve [member] | Accumulated other comprehensive income [member]Defined benefit plan reserve [member] | Total equity attributable to the shareholder of the company [member] | Non-controlling interests [member] |
Beginning balance at Dec. 31, 2014 | ¥ 12,511 | ¥ 12,596 | ¥ 7,772 | ¥ (11,622) | ¥ 528 | ¥ 3,865 | ¥ (643) | ¥ 12,496 | ¥ 15 | |
Comprehensive income/(loss) | ||||||||||
Profit/(loss) for the year | (7,972) | (7,582) | (7,582) | (390) | ||||||
Other comprehensive income | 1,639 | (288) | 3,052 | (1,146) | 1,618 | 21 | ||||
Total comprehensive income/(loss) for the year | (6,333) | (7,582) | (288) | 3,052 | (1,146) | (5,964) | (369) | |||
Net investment by non-controlling interests | 144 | 0 | 0 | 144 | ||||||
Recognition of share-based payments | 11,213 | 11,213 | 11,213 | |||||||
Acquisition of subsidiary | 0 | 0 | ||||||||
Acquisition of non-controlling interest | (2) | (2) | (2) | 0 | ||||||
Ending balance at Dec. 31, 2015 | 17,533 | 12,596 | 18,983 | (19,204) | 240 | 6,917 | (1,789) | 17,743 | (210) | |
Comprehensive income/(loss) | ||||||||||
Profit/(loss) for the year | 7,104 | 6,763 | 6,763 | 341 | ||||||
Other comprehensive income | (1,252) | (414) | (1,268) | 465 | (1,217) | (35) | ||||
Total comprehensive income/(loss) for the year | 5,852 | 6,763 | (414) | (1,268) | 465 | 5,546 | 306 | |||
Recognition of share-based payments | 9,520 | 9,520 | 9,520 | |||||||
Forfeiture of stock options | (60) | 60 | ||||||||
Exercise of stock options | 1,748 | 1,836 | (88) | 1,748 | ||||||
Acquisition of subsidiary | 93 | 93 | ||||||||
Initial public offering | 126,277 | 63,424 | 62,853 | 126,277 | ||||||
Other | 0 | 0 | ||||||||
Ending balance at Dec. 31, 2016 | 161,023 | 77,856 | 91,208 | (12,381) | (174) | 5,649 | (1,324) | 160,834 | 189 | |
Comprehensive income/(loss) | ||||||||||
Profit/(loss) for the year | 8,210 | 8,078 | 8,078 | 132 | ||||||
Other comprehensive income | 3,533 | 3,328 | (1,721) | 1,680 | 3,287 | 246 | ||||
Total comprehensive income/(loss) for the year | 11,743 | 8,078 | 3,328 | (1,721) | 1,680 | 11,365 | 378 | |||
Recognition of share-based payments | 1,882 | 1,882 | 1,882 | |||||||
Forfeiture of stock options | (9) | 9 | ||||||||
Exercise of stock options | 11,425 | 12,513 | (1,088) | 11,425 | ||||||
Acquisition of subsidiary | 4,168 | 4,168 | ||||||||
Acquisition of non-controlling interest | (254) | (423) | 4 | (2) | (421) | 167 | ||||
Issuance of common shares and acquisition of treasury shares under Employee Stock Ownership Plan | (10) | 2,000 | 1,990 | ¥ (4,000) | (10) | |||||
Ending balance at Dec. 31, 2017 | ¥ 189,977 | ¥ 92,369 | ¥ 93,560 | ¥ (4,000) | ¥ (4,294) | ¥ 3,158 | ¥ 3,928 | ¥ 354 | ¥ 185,075 | ¥ 4,902 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
(Loss)/profit before tax from continuing operations | ¥ 18,145 | ¥ 17,990 | ¥ (530) |
Loss before tax from discontinued operations | (19) | (2,726) | (11,503) |
(Loss)/profit before tax | 18,126 | 15,264 | (12,033) |
Adjustments for: | |||
Depreciation and amortization expenses | 7,149 | 5,100 | 4,057 |
Finance income | (257) | (87) | (71) |
Finance costs | 26 | 65 | 106 |
Dividend income | (69) | ||
Share-based compensation expenses | 2,686 | 9,519 | 11,213 |
Gain on loss of control of subsidiaries and business transfer | (10,444) | (1,731) | |
(Gain)/loss on financial assets at fair value through profit or loss | (1,026) | 656 | (111) |
Gain on disposal of property and equipment and intangible assets | (2,345) | (2) | |
Impairment loss of other intangible assets | 214 | 1,447 | |
Impairment loss of available-for-sale financial assets | 1,761 | 293 | 1,790 |
Gain on sale of available-for-sale financial assets | (751) | ||
Impairment loss of goodwill | 2,692 | ||
Share of loss of associates and joint ventures | 6,321 | 833 | 205 |
Loss/(gain) on foreign currency transactions, net | (182) | 514 | 331 |
Changes in: | |||
Trade and other receivables | (13,539) | (756) | (3,067) |
Inventories | (2,366) | 407 | 582 |
Trade and other payables | 6,215 | (1,620) | 2,263 |
Accrued expenses | 2,642 | 2,229 | 179 |
Advances received | 6,338 | 1,762 | 4,350 |
Deferred revenue | (700) | 1,931 | 3,680 |
Provisions | 187 | 297 | 349 |
Post-employment benefits | 2,054 | 1,339 | 903 |
Other current assets | (2,860) | (1,780) | (416) |
Other current liabilities | 1,311 | 4,148 | (704) |
Others | 232 | 205 | 50 |
Cash provided by operating activities | 23,068 | 36,243 | 17,793 |
Interest received | 252 | 86 | 76 |
Interest paid | (32) | (58) | (92) |
Dividend received | 98 | 4 | 46 |
Income taxes paid | (12,421) | (7,522) | (10,844) |
Net cash provided by operating activities | 10,965 | 28,753 | 6,979 |
Cash flows from investing activities | |||
Purchases of time deposits | (1,282) | (10,790) | (1,892) |
Proceeds from maturities of time deposits | 401 | 377 | 2,384 |
Purchase of equity investments | (4,880) | (1,245) | (437) |
Proceeds from sales of equity investments | 1,672 | ||
Investments in debt instruments | (6,433) | (7,642) | |
Proceeds from redemption of debt instruments | 5,209 | ||
Acquisition of property and equipment and intangible assets | (12,622) | (6,352) | (5,696) |
Proceeds from disposal of property and equipment and intangible assets | 472 | 5,124 | 279 |
Investments in associates and joint ventures | (5,566) | (9,333) | (1,567) |
Payments of office security deposits | (1,112) | (2,533) | (2,036) |
Refund of office security deposits | 1,581 | 168 | 138 |
Return of the office security deposits received under sublease agreement | (19) | (8) | (394) |
Guarantee deposits for the Japanese Payment Services Act | (530) | (1,815) | (190) |
Return of the guarantee deposits for the Japanese Payment Services Act | 3,340 | 900 | |
Acquisition of subsidiaries and businesses, net of cash acquired | (11,887) | (423) | (2,927) |
Cash disposed on loss of control of subsidiary and business transfer | (581) | (485) | |
Payments for loan receivables | (2,165) | (2) | (23) |
Collection of loan receivables | 124 | ||
Others | 48 | (27) | 132 |
Net cash used in investing activities | (34,230) | (34,086) | (12,229) |
Cash flows from financing activities | |||
Proceeds from/(repayment of) short-term borrowings, net | (107) | (20,752) | 19,808 |
Payments for redemption of bonds | (510) | (641) | |
Repayment of borrowing arrangement | (451) | ||
Payments of common shares issuance costs | (30) | (706) | |
Proceeds from initial public offering | 126,848 | ||
Proceeds from exercise of stock options | 11,489 | 1,750 | |
Payment for acquisition of interest in subsidiaries from non-controllinginterests | (255) | ||
Capital contribution from third party non-controlling interests | 343 | 0 | 144 |
Others | (1) | (2) | 0 |
Net cash provided by financing activities | 11,439 | 106,628 | 18,860 |
Net increase/(decrease) in cash and cash equivalents | (11,826) | 101,295 | 13,610 |
Cash and cash equivalents at the beginning of the year | 134,698 | 33,652 | 20,254 |
Effect of exchange rate fluctuations on cash and cash equivalents | 734 | (249) | (212) |
Cash and cash equivalents at the end of the year | ¥ 123,606 | ¥ 134,698 | ¥ 33,652 |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Reporting Entity | 1. Reporting Entity LINE Corporation (the “Company”) was incorporated in September 2000 in Japan in accordance with the Companies Act of Japan under the name Hangame Japan Corporation to provide online gaming services. The Company changed its name to NHN Japan Corporation in August 2003, and subsequently changed its name to LINE Corporation in April 2013. The Company is a subsidiary of NAVER Corporation (“NAVER”), formerly NHN Corporation, which is domiciled in Korea and which is the Company’s ultimate parent company. The Company’s head office is located at 4-1-6 Shinjuku-ku, The Company listed shares of its common shares in the form of American depositary shares on the New York Stock Exchange and shares of its common shares on the Tokyo Stock Exchange. The Company and its subsidiaries (collectively, the “Group”) Group mainly operate a cross-platform messenger application, LINE, and provides communication and content sales and advertising services. Communication and content are provided via the LINE platform, while advertising services are provided via LINE advertising, and web portals livedoor and NAVER Matome. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Basis of Preparation | 2. Basis of Preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Group’s consolidated financial statements are presented in millions of Japanese yen, which is also the Company’s functional currency. The Group changed the rounding of its financial statements from thousands to millions in the year ended December 31, 2017. Prior periods have been revised to reflect this change in presentation. The consolidated financial statements were approved by Representative Director, President and Chief Executive Officer Takeshi Idezawa and Director and Chief Financial Officer In Joon Hwang on March 30, 2018. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies The significant accounting policies applied by the Group in preparing its consolidated financial statements are set out below. The accounting policies have been applied consistently to all periods presented in these consolidated financial statements. The adoption of new and revised IFRSs issued by the IASB that are mandatorily effective for an accounting period that begins on or after January 1, 2017 had no impact on the Group’s annual consolidated financial statements as of December 31, 2016 and 2017, and for the years ended December 31, 2015, 2016 and 2017. (1) Basis of Consolidation The consolidated financial statements include the accounts of the Group, which are directly or indirectly controlled. Control is generally conveyed by ownership of the majority of voting rights. The Group controls an entity when the Group has power over the entity, is exposed, or has rights, to variable returns from the involvement with the entity and has the ability to affect those returns through its power over the entity. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. If the end of the reporting period of a subsidiary differs from that of the Company, the subsidiary prepares, for the purpose of preparing consolidation financial statements, additional financial statements as of the same date as the consolidated financial statements of the Group. Non-controlling non-controlling non-controlling non-controlling On February 12, 2016, the board of directors approved the abandonment of the MixRadio service (“MixRadio”) segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. Intercompany balances and transactions have been eliminated upon consolidation. (2) Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value, which is the price that would be received to sell such financial instruments or paid to transfer the related liability in an orderly transaction between market participants at the measurement date. (3) Business Combinations (a) Business combinations In accordance with IFRS 3 Business Combinations, – Deferred tax assets or liabilities which are recognized and measured in accordance with IAS 12 Income Taxes; and – Employee benefit arrangements which are recognized and measured in accordance with IAS 19 Employee Benefits Leases and insurance contracts are classified on the basis of the contractual terms and other factors at the inception of the contract or at the date of modification, which could be the acquisition date if the terms of the contract have been modified in a manner that would change its classification. Contingent liabilities assumed in a business combination are recognized when such liabilities are present obligations and their fair value can be measured reliably. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree and the equity interests issued by the acquirer. Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed in the periods in which the costs are incurred and the services are received. The Group measures goodwill at the acquisition date as: – the fair value of the consideration transferred; plus – the recognized amount of any non-controlling – if the business combination is achieved in stages, the fair value of the pre-existing – the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses. (b) Business combinations under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and in which control is not transitory. The Group has accounted for the acquisition of business combination under common control based on the carrying amounts recorded in the consolidated financial statements of the acquired companies. The financial statements of acquired companies have been retrospectively consolidated as part of the Group’s consolidated financial statements as if the acquisition of acquired companies had occurred on the date of its original acquisition by the common control group, regardless of the actual date of acquisition by the Group. (4) Associates and Joint Arrangements (a) Associates An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity, unless it can be clearly demonstrated that it is not the case. The Group’s investments in associates are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost and the carrying amount is adjusted to recognize the Group’s share of the profit or loss and changes in equity of the associate after the date of acquisition. Gains and losses from transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Intra-group losses are recognized as an expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements. If an associate uses accounting policies different from those of the Group for like transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method. When the Group’s share of losses exceeds its interest in associates, the carrying amount of that interest, including any long-term investments, is reduced to nil and the recognition of further losses is discontinued. (b) Joint arrangements A joint arrangement is an arrangement in which two or more parties have joint control. The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in joint operations in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint ventures are accounted for using the equity method. (5) Foreign Currencies (a) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate. Non-monetary Non-monetary Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of available-for-sale (b) Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency at the average foreign exchange rates for the reporting period. Foreign currency differences are recognized in other comprehensive income. When a foreign operation is disposed of, the relevant amount after the translation is reclassified to profit or loss as part of profit or loss on disposal. In the event that a partial disposal does not lead to a loss of control in a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling (6) Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments with maturity dates that are within three months from the purchase dates. Such investments are highly liquid and readily convertible to known amounts of cash. Cash and cash equivalents are subject to an insignificant risk of changes in value, and are used by the Group in managing its short-term commitments. (7) Financial Assets The Group classifies and measures financial assets based on the following four categories: financial assets at fair value through profit or loss; held-to-maturity available-for-sale Upon initial recognition, financial assets are measured at their fair value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition. Regular way purchases or sales of financial assets, i.e. purchases or sales under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned, are accounted for at the trade date. (a) Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (b) Held-to-maturity Financial assets with fixed or determinable payments and fixed maturities, for which the Group has the positive intention and ability to hold to maturity, are classified as held-to-maturity held-to-maturity (c) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, except for loans and receivables for which the effect of discounting is immaterial. (d) Available-for-sale Available-for-sale held-to-maturity Dividends on an available-for-sale (e) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts, to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured Derivative financial instruments embedded in non-derivative (f) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. (8) Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. The Group derecognizes a financial liability from the Consolidated Statements of Financial Position when it is extinguished (i.e. when the obligation specified in the contract is discharged, canceled or expires). (9) Inventories Inventories, consisting of merchandise for resale, are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (10) Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and stock options are recognized as a deduction from equity, net of any tax effects. (11) Treasury Shares Treasury shares are measured at costs and deducted from equity. No gain or loss is recognized on the purchase, sales, or cancellation of the Company’s treasury shares. The difference between the book value and consideration received at the times of sales is recognized in equity. (12) Property and Equipment Property and equipment are measured and recognized at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Cost includes any other costs directly attributable to bring the assets to a working condition for their intended use and the costs of dismantling and removing the assets and restoring the site on which they are located. The cost of replacing a part of property and equipment is included in the carrying amount of the asset or recognized as a separate asset, as necessary, if it is probable that the future economic benefits embodied within the part will flow into the Group and if the cost can be reliably measured. Accordingly, the carrying amount of the replaced part is derecognized. The costs of day to day servicing of property and equipment are recognized in profit or loss as incurred. Land and assets held within construction-in-progress Gains or losses arising from the derecognition of an item of property and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other operating income or expenses. The estimated useful lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3–5 Furniture and fixtures 3–5 Others 3–5 Depreciation methods, useful lives and residual values are reviewed at each fiscal year-end (13) Borrowing Costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are expensed as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset, which is the effective interest rate of the general borrowing. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period. No borrowing costs were capitalized during the years ended December 31, 2016 and 2017. (14) Intangible Assets Intangible assets are initially measured at cost, and carried at cost less accumulated amortization and accumulated impairment losses after initial recognition. Within intangible assets with finite lives, customer relationships are amortized by the declining balance method and other intangible assets with finite lives are amortized mainly using the straight-line method over the useful lives of the respective assets as provided below. Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The residual value of intangible assets is assumed to be zero. The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Software 2–10 Customer relationships 7 Domain name 20 Others 1–10 The amortization periods and methods for intangible assets with finite useful lives are reviewed at each fiscal year-end. Research and development Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. No development expenditure was capitalized for the years ended December 31, 2015, 2016 and 2017. (15) Leases Lease Transactions The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. In the event that fulfillment of the arrangement is dependent on the use of specific assets or the arrangement transfers a right to use the asset, such assets are defined as a lease transaction. (a) Finance Leases Leases that transfer substantially all risks and benefits of ownership of the leased item to the lessee are classified as finance leases. Group as lessee Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine; if not, the lessee’s incremental borrowing rate shall be used. The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. A leased asset is depreciated over the shorter of the estimated useful life of the asset or the lease term. (b) Operating Leases All lease arrangements, except finance leases that have been capitalized in the Consolidated Statements of Financial Position, are classified as operating leases. Group as lessee For operating lease transactions, lease payments are recognized as an expense using the straight-line method over the lease term in the Consolidated Statements of Profit or Loss. Group as lessor The Group had cancelable lease contracts related to servers, data storage, network equipment, personal computers and software with third parties for the years ended December 31, 2015, 2016 and 2017. The leased assets are included in “Property and equipment” in the Consolidated Statements of Financial Position and are depreciated over their expected useful lives on a basis consistent with similar assets included in property and equipment. Income from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term. (16) Impairment of Financial Assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that financial assets, including equity securities, are impaired can include significant financial distress of issuers of financial assets or debtors, default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security, or the existence of observable data that shows the negative effect on expected future cash flows of the group of financial assets after the initial recognition can be reliably estimated, though the decrease in expected future cash flows of individual financial assets cannot be reliably estimated. In addition, for an investment in an equity security classified as an available-for-sale If financial assets have objective evidence that they are impaired, impairment losses are measured and recognized. (a) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. If it is not practicable to obtain the instrument’s estimated future cash flows, impairment losses are measured by using prices from any observable current market transactions. The Group can recognize impairment losses directly or establish a provision to cover impairment losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting an allowance account. Financial assets are directly written off when there is no realistic prospect of future recovery. (b) Available-for-sale While other evidence and indicators are taken into consideration, generally, when the fair value of an available-for-sale available-for-sale available-for-sale available-for-sale available-for-sale (17) Impairment of Non-financial Assets The Group’s non-financial non-current If it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of the cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less costs to sell. The value in use is estimated by applying a pre-tax pre-tax An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill Goodwill acquired in a business combination is, from the acquisition date, allocated to each CGU that is expected to benefit from the synergies arising from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Impairment losses are recognized in profit or loss, and impairment losses recognized for goodwill are not reversed in subsequent periods. On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. (18) Employee Compensation (a) Short-term employee compensation Short-term employee compensations are employee compensations that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. The undiscounted short-term employee compensations are accounted for on an accrual basis over the period in which employees have provided the services. (b) Defined benefit plans The Group has defined benefit plans for employees of subsidiaries located in Korea, Taiwan and Thailand. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s obligation represents the estimated amount of future benefits that employees have earned in return for their services in the current and prior periods. The calculation is performed annually by an independent actuary using the projected unit credit method. The calculation is reviewed and approved by the management of the Group. The assets or the liabilities relating to the defined benefit plans were recognized in the Consolidated Statement of Financial Position as the present value of obligations as of the reporting date, excluding the fair value of plan assets. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost, which is the change in the present value of the defined benefits obligation for employee services in prior periods, resulting in the current period from the introduction of, or change to post-employment benefits, is recognized in full in profit or loss in the period in which the plan amendment occurs. Remeasurement of the net defined benefit liability is mainly comprised of actuarial gains and losses resulting from experience adjustments and the effects of changes in actuarial assumptions. Experience adjustments are the effects of differences between the previous actuarial assumptions and what has actually occurred. The Group recognizes all remeasurements of the net defined benefit liability in other comprehensive income when incurred. The discount rate used in the present valuation calculation is the yield at the reporting date on high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Net interest on the net defined benefit liability is determined by multiplying the net defined benefit liability by the discount rate noted above, taking account of any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Interest on the net defined benefit liability is recognized in profit or loss. (c) Defined contribution plans The Group has defined contribution plans for employees of subsidiaries located in Korea. The contribution relating to the plans is recognized as expense when incurred. (19) Share-based Payments The Group has granted stock options to directors and employees. The fair values of the stock options are measured at the grant dates. Compensation expenses related to stock options are recognized over the vesting period. Refer to Note 4 Significant Accounting Judgments, Estimates and Assumptions and Note 27 Share-based Payments for more details on the valuation methodology of stock options and the assumptions used in such valuation. The Group has introduced equity-settled Employee Stock Ownership Plan (J-ESOP) The Group has introduced cash-settled Employee Stock Ownership Plan (J-ESOP) (20) Marketing Expenses The Group incurs marketing expenses to increase brand awareness and to promote the launch of new services. The Group’s marketing expenses are primarily related to advertising in mass media, namely television advertising and advertising on mobile applications, and expenses incurred for brand promotional events. Marketing personnel compensation expenses are not included in marketing expenses, and are recorded as part of the employee compensation expenses. Expenditures related to marketing activities are recognized as expenses when incurred. (21) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. There are uncertainties about the amount and timing of the cash outflows related to provisions. The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The Group’s provisions mainly comprise provision for restoration obligations for leased property, and the provision for the licensing expense payable to the third-party partners upon redemption of free promotional virtual credits upon exchange with virtual items by customers in the future. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. A provision may only apply to expenditures for which the provision was originally recognized. (22) Revenue The Group mainly operates a cross-platform messenger application, LINE, and provides communication and content sales and advertising services. Communication and content sales are primarily made to end users in the form of communication products such as LINE Stickers, and content such as LINE Games. Advertising services are provided on the LINE platform through advertising products such as LINE Official Accounts and Sponsored Stickers, as well as the Group’s web portals, livedoor and NAVER Matome. Refer to Note 5 Segment Information for more details on product lines and services provided. The Group recognizes revenues associated with the transactions by reference to the stage of completion of the transactions at the end of the reporting period. Determination of the stage of completion for the different revenue streams is described below. Revenue is measured at the fair value of the consideration of services provided in the ordinary course of business, less applicable sales and other taxes, where appropriate. Virtual Credits Virtual credits, which are the prepaid payment instruments may be purchased with credit cards or cash. Depending on the type of service, end users may make payments using cash, credit cards or the virtual credits issued by the Group. Most of the end-user LINE business and portal (i) Communication—LINE Stickers and Creator Stickers LINE Stickers and Creator Stickers are emoticons that end users may purchase and use in instant messaging. Payments may be made with cash, virtual credits, LINE Points or credit cards. When virtual credits are redeemed for the purchase of Stickers, virtual credits’ balances of the end users are reduced by the price of the purcha |
Significant Accounting Judgment
Significant Accounting Judgments, Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2017 | |
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Significant Accounting Judgments, Estimates and Assumptions | 4. Significant Accounting Judgments, Estimates and Assumptions The preparation of the Group’s consolidated financial statements requires the management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. These estimates and assumptions are based on the best judgment of the management in light of historical experience and various factors deemed to be reasonable as of the fiscal year end date. Given their nature, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and assumptions are continuously reviewed by the management. The effects of a change in estimates and assumptions are recognized in the period of the change or in the period of the change and future periods. Among estimates and assumptions made by the management, the following are ones that may have a material effect on the amounts recognized in the consolidated financial statements of the Group: (a) Impairment – Non-financial Non-current Non-current Goodwill The goodwill impairment test requires the Group to exercise judgment and assess whether the carrying value of the CGU to which goodwill has been allocated can be supported by the recoverable amount of such CGU to which goodwill has been allocated. The recoverable amount of a CGU is determined based on a value in use calculation which involves the use of estimates. The main assumptions used in the value in use calculation include the discount rate, terminal growth rate and expected future cash flow projections for a period of up to five years from financial budgets approved by the management. Cash flow projections beyond the planning period are extrapolated using terminal growth rates. Cash flow projections take into account past experience and represent management’s best estimates. These assumptions can be subject to significant adjustments from such factors as user trend, spending on marketing, IT spending of corporations, and competition from competitors. The key assumptions used to determine the recoverable amounts of the different CGU to which goodwill has been allocated are disclosed and further explained in Note 11 Impairment. – Financial assets measured at amortized cost Regarding the financial assets measured at amortized cost, the Group assesses whether there is any objective evidence that financial assets are impaired on a quarterly basis. If there is any objective evidence, the Group recognizes the difference between carrying value of the asset and the present value of estimated future cash flows as an impairment loss. When the Group estimates the future cash flows, the management considers the probability of default, time of recovery and past trend of losses, and decides whether the actual loss, which reflects current economic and credit conditions, is more or less than past trends. The Group considers these estimates to be significant because any adjustments may significantly affect the amount of an impairment loss for the financial assets measured at amortized cost. (b) Recoverability of deferred tax assets Regarding temporary differences, which are differences between carrying value of an asset or liability in the Consolidated Statements of Financial Position and its tax base, the Group recognizes deferred tax assets and deferred tax liabilities. The deferred tax assets and deferred tax liabilities are calculated using the tax rates based on tax laws that have been enacted or substantively enacted by the end of the reporting period and the tax rates that are expected to apply to the period when the deferred tax asset is realized or the deferred tax liability is settled. Deferred tax assets are recognized for all deductible temporary differences, unused tax losses carryforward and unused tax credits carryforward to the extent that it is probable that taxable income will be available. The estimation of future taxable income is calculated based on financial budgets approved by management of the Group, and it is based on management’s subjective judgments and assumptions. The Group considers these estimates to be significant because any adjustments in the assumed conditions and amendments of tax laws in the future may significantly affect the amounts of deferred tax assets and deferred tax liabilities. (c) Methods of determining fair value for financial instruments measured at fair value Financial assets and financial liabilities held by the Group are measured at the following fair values: – quoted prices in active markets for identical assets or liabilities; – fair value calculated using observable inputs other than quoted prices for the assets or liabilities, either directly or indirectly; and – fair value calculated using valuation techniques incorporating unobservable inputs. In particular, the fair value estimates using valuation techniques that incorporate unobservable inputs are based on the judgment and assumptions of Group management, such as experience assumptions, and the use of specific numerical calculation models, such as discounted cash flow models. (d) Provisions The Group recognizes asset retirement obligations related to assets leased under operating leases in the Consolidated Statements of Financial Position. These provisions are recognized based on the best estimates of the costs expected to incur for the restoration of the operating lease properties to the state as specified in the rental agreements upon termination of the operating leases. The estimation takes risks and uncertainty related to the obligations into account as of the fiscal year end date. The Group records a provision for the licensing expense payable to the third-party platform partners upon redemption of promotional virtual credits for virtual items by end users in the future. For promotional and marketing purposes, virtual credits are given to end users free of charge. (e) Defined benefit plans The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions, including the determination of the discount rate and future salary increases. The Group determines the discount rate based on market returns of high-quality corporate bonds consistent with currencies and estimated payment terms applicable to the defined benefit obligations as of the reporting date in order to calculate present value of the defined benefit obligations. Estimated future salary increases are based on historical salary increases and expected future inflation rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Further details about the Group’s defined benefit obligations are presented in Note 16 Employment Benefits. (f) Share-based payments Share-based payment expenses related to stock options granted to directors and employees are estimated based on the option’s fair value determined under the Black-Scholes-Merton (“Black-Scholes”) option pricing model. The Black-Scholes model requires various highly judgmental assumptions, including expected volatility, expected life of stock options and fair value of share capital at the time of option grants, which will be discussed further below. Expected volatility is estimated based on the historical volatility of reference companies which are comparable with the Company and the Group. The expected life of stock options is estimated based on the expectation of future stock price movements and expected exercise patterns of the option holders. (g) Valuation of common shares Until the Company’s initial public offering in July 2016, the Group exercised significant judgment in determining fair value of common shares at the time of option grants. Valuation is based on all relevant facts and circumstances known at the time of valuation, including but not limited to factors such as historical financial results and projections of the Group’s future operating and financial performance; market performance of comparable publicly traded companies; overall economic and industry outlook; and third-party valuations of the Group’s common shares as of the date of stock option grants. (h) Revenues For revenues attributable to the sales of in-game/app log-on For revenues attributable to the sales of LINE Stickers, Creator Stickers and Sponsored Stickers, revenues are recognized over the estimated periods over which LINE Stickers, Creator Stickers and Sponsored Stickers are expected to be used by users, taking into consideration historical data on usage and user behavior. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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Segment Information | 5. Segment Information Since the fourth quarter of 2015, the structure of the business units that management uses to make decisions about operating matters, and the main performance measures used for the purpose of allocating resources to the units had changed. Segment reporting was based on two business units, the LINE business and portal segment and the MixRadio segment. However, the MixRadio segment was subsequently abandoned on March 21, 2016, and retrospectively classified as a discontinued operation in the Consolidated Statements of Profit or Loss. Refer to Note 23 Discontinued Operations for further details. Segment information is presented for continuing operations. No operating segments have been aggregated to form the reportable segments. Refer to Note 3(27) Significant Accounting Policies for further details on the identification of operating segments. (1) Description of Reportable Segment The Group has a single reportable segment: LINE business and portal segment – The Group mainly operates a cross-platform messenger application, LINE, and provides communication and content and advertising services. Communication and content are primarily provided to end users via various communication and content. Communication mainly includes LINE Stickers. Content includes LINE Games and LINE PLAY. Others within Communication and Contents include LINE Friends service. Advertising services are provided via LINE advertising, livedoor blog and NAVER Matome. LINE advertising includes “messenger ads” such as LINE Official Accounts, LINE Sponsored Stickers and LINE Point Ads and “performance ads” on services such as Timeline and LINE NEWS. (2) Revenues from Major Services The Group’s revenues from continuing operations from its major services for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 LINE business and portal segment Communication and content Communication (1) 28,725 29,290 30,225 Content (2) 49,284 44,784 40,144 Others (3) 5,985 11,923 20,241 Sub-total 83,994 85,997 90,610 Advertising LINE advertising (4) Messenger ads 26,487 33,997 39,495 Performance ads — 10,524 26,609 Sub-total 26,487 44,521 66,104 Portal advertising (5) 9,925 10,186 10,433 Sub-total 36,412 54,707 76,537 Total 120,406 140,704 167,147 (1) Revenues from communication were mainly attributable to sales of LINE Stickers, Creator Stickers and Themes. (2) Revenues from content primarily consisted of sales of LINE Games and LINE PLAY’s virtual items. (3) Revenues from others primarily consisted of sales from LINE Friends service, LINE Part-time Job, LINE Pay service and LINE Mobile. (4) Revenues from LINE advertising consisted of fees from “messenger ads” such as LINE Official Accounts, Sponsored Stickers and LINE Points as well as “performance ads” on Timeline and LINE NEWS. (5) Revenues from portal advertising were mainly attributable to advertising revenue from web portals, livedoor and NAVER Matome. (3) Geographic Information Revenues from external customers Revenues from external customers classified by country or region were based on the locations of customers. Revenues attributable to communication and content have been classified based on the geographical location of the end users. Revenues attributable to advertising have been classified based on the geographical locations where the services were provided. (In millions of yen) 2015 2016 2017 Japan (country of domicile) 84,780 100,939 121,283 Taiwan 17,058 15,614 16,630 Others 18,568 24,151 29,234 Total 120,406 140,704 167,147 Non-current Non-current (In millions of yen) December 31, December 31, Japan (country of domicile) 10,661 23,089 Korea 3,219 10,605 Others 690 5,676 Total 14,570 39,370 (4) Major Customers No single customer accounted for 10 percent or more of the Group’s total revenues for the years ended December 31, 2015, 2016 and 2017. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
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Cash and Cash Equivalents | 6. Cash and Cash Equivalents The breakdown of cash and cash equivalents as of December 31, 2016 and 2017 is as follows: (In millions of yen) December 31, December 31, 2017 Cash on hand 8 13 Demand deposits 134,690 123,593 Total cash and cash equivalents 134,698 123,606 |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and Other Receivables | 7. Trade and Other Receivables Trade and other receivables as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, 2017 Trade and other receivables, current 29,108 43,375 Allowance for doubtful accounts, general (941 ) (483 ) Trade receivables, non-current (1) 82 14 Allowance for doubtful accounts, specific (82 ) (14 ) Total trade and other receivables 28,167 42,892 (1) The non-current For movement in the allowance of doubtful accounts for trade and other receivables, refer to Note 25 Financial Risk Management. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
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Inventories | 8. Inventories Inventories as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, Goods 961 3,455 Total Inventories 961 3,455 Cost of goods recognized from continuing operations for the years ended December 31, 2015, 2016 and 2017, were 2,475 million yen, 3,333 million yen and 4,436 million yen, respectively. Inventory valuation losses recognized from continuing operations for the years ended December 31, 2015, 2016 and 2017, were 734 million yen, 186 million yen and 510 million yen, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property and Equipment | 9. Property and Equipment (1) Changes in property and equipment for the year ended December 31, 2016 are as follows: (In millions of yen) Furniture Equipment Land (1) Construction- in-progress Others Total Acquisition cost Balance at January 1, 2016 2,950 12,253 2,584 60 356 18,203 Acquisitions 1,144 4,012 — 179 401 5,736 Disposals (74 ) (665 ) (2,584 ) — (13 ) (3,336 ) Deconsolidation of LINE BIZ Plus Ltd. — (27 ) — — (3 ) (30 ) Exchange differences (3 ) (44 ) — — 14 (33 ) Other (200 ) 0 — (55 ) — (255 ) Balance at December 31, 2016 3,817 15,529 — 184 755 20,285 Accumulated depreciation and impairment Balance at January 1, 2016 1,479 6,121 — — 102 7,702 Disposals (57 ) (471 ) — — (5 ) (533 ) Depreciation 680 3,333 — — 121 4,134 Deconsolidation of LINE BIZ Plus Ltd. — (4 ) — — (1 ) (5 ) Exchange differences (3 ) (13 ) — — 2 (14 ) Other (17 ) (11 ) — — — (28 ) Balance at December 31, 2016 2,082 8,955 — — 219 11,256 Carrying amounts Balance at January 1, 2016 1,471 6,132 2,584 60 254 10,501 Balance at December 31, 2016 1,735 6,574 — 184 536 9,029 (1) On June 29, 2016, the Group sold its land in Fukuoka. Refer to Note 22 (1) Other Income and Expenses for more details. (2) Changes in property and equipment for the year ended December 31, 2017 are as follows: (In millions of yen) Furniture Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2017 3,817 15,529 184 755 20,285 Acquisitions 4,156 7,038 42 361 11,597 Disposals (1,305 ) (911 ) — (174 ) (2,390 ) Acquisition through business combinations 12 184 — 297 493 Exchange differences 1 152 — 43 196 Other (180 ) 204 (184 ) 61 (99 ) Balance at December 31, 2017 6,501 22,196 42 1,343 30,082 Accumulated depreciation and impairment Balance at January 1, 2017 2,082 8,955 — 219 11,256 Disposals (1,291 ) (810 ) — (3 ) (2,104 ) Depreciation 1,146 4,111 — 266 5,523 Acquisition through business combinations 4 125 — 171 300 Exchange differences 1 53 — 15 69 Other (63 ) (32 ) — 8 (87 ) Balance at December 31, 2017 1,879 12,402 — 676 14,957 Carrying amounts Balance at January 1, 2017 1,735 6,574 184 536 9,029 Balance at December 31, 2017 4,622 9,794 42 667 15,125 (3) Contractual commitments for the acquisition of property and equipment: (In millions of yen) December 31, 2016 December 31, 2017 1,464 527 The carrying amounts of property and equipment held under finance leases contracts were nil as of December 31, 2016 and 2017. Additions during the year included nil in 2016 and 2017 of property and equipment under finance leases and installment payment contracts. Construction-in-progress Construction-in-progress |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Goodwill and Other Intangible Assets | 10. Goodwill and Other Intangible Assets (1) Changes in goodwill and other intangible assets for the year ended December 31, 2016 are as follows: (In millions of yen) Item Goodwill Software (1) Music rights Customer relationships Others Total Acquisition cost Balance at January 1, 2016 5,852 1,543 542 108 933 8,978 Acquisitions — 99 — — 1,286 1,385 Acquisition through a business combination (2) 416 26 — 401 — 843 Deconsolidation of LINE BIZ Plus Ltd. (3) (126 ) — — — — (126 ) Disposal — (9 ) — — — (9 ) Exchange differences (550 ) (170 ) (109 ) (22 ) (36 ) (887 ) Other — (2 ) — — (174 ) (176 ) Balance at December 31, 2016 5,592 1,487 433 487 2,009 10,008 Accumulated amortization and impairment Balance at January 1, 2016 2,732 1,157 542 108 308 4,847 Disposals — (8 ) — — — (8 ) Amortization — 153 — 125 688 966 Exchange differences (540 ) (169 ) (109 ) (21 ) (31 ) (870 ) Other — (4 ) — — (174 ) (178 ) Balance at December 31, 2016 2,192 1,129 433 212 791 4,757 Carrying amounts Balance at January 1, 2016 3,120 386 — — 625 4,131 Balance at December 31, 2016 3,400 358 — 275 1,218 5,251 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2016 was two years. (2) The balances were mainly related to the Group’s acquisition of M.T. Burn Inc. Refer to Note 29 Business Combinations for further details. (3) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) Changes in goodwill and other intangible assets for the year ended December 31, 2017 are as follows: (In millions of yen) Item Goodwill Software (1) Music rights Customer relationships Game Others (2) Total Acquisition cost Balance at January 1, 2017 5,592 1,487 433 487 — 2,009 10,008 Acquisitions — 247 — — — 2,243 2,490 Acquisition through business combinations (3) 13,114 588 — 249 1,640 2,290 17,881 Disposal — (57 ) — — — (1,191 ) (1,248 ) Exchange differences 387 84 27 5 109 83 695 Other — 1 — — — 11 12 Balance at December 31, 2017 19,093 2,350 460 741 1,749 5,445 29,838 Accumulated amortization and impairment Balance at January 1, 2017 2,192 1,129 433 212 — 791 4,757 Disposals — (35 ) — — — (242 ) (277 ) Amortization — 210 — 108 270 1,039 1,627 Impairment — — — — — 214 214 Exchange differences 134 67 27 5 14 26 273 Other — (9 ) — — — 0 (9 ) Balance at December 31, 2017 2,326 1,362 460 325 284 1,828 6,585 Carrying amounts Balance at January 1, 2017 3,400 358 — 275 — 1,218 5,251 Balance at December 31, 2017 16,767 988 — 416 1,465 3,617 23,253 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2017 was three years. (2) Others mainly was mainly comprised of 1,114 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for acquisition of Gatebox Inc.’s trademark and patented technology. The carrying amounts as of December 31, 2017 of these intangible assets were 329 million yen, 646 million yen and 375 million yen, respectively. (3) The balances were related to the Group’s acquisitions of NextFloor Corporation and its subsidiary as well as FIVE Inc. Refer to Note 29 Business Combinations for further details. (3) Contractual commitments for the acquisition of intangible assets: (In millions of yen) December 31, 2016 December 31, 2017 — 215 |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2017 | |
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Impairment | 11. Impairment (1) Impairment of Goodwill Annual impairment testing for goodwill was performed as of October 1 for the years ended December 31, 2015, 2016 and 2017. Goodwill has been allocated to two CGUs for the year ended December 31, 2015 and one CGU for the years ended December 31, 2016 and 2017. For the years ended December 31, 2015, 2016 and 2017, the Group’s CGUs were the Group’s operating segments and also the reportable segments. Carrying amount of goodwill allocated to each of the CGUs for impairment testing is as follows: (In millions of yen) For the year ended December 31, 2015 LINE business and portal CGU MixRadio CGU Total 3,120 2,692 5,812 (In millions of yen) For the year ended December 31, 2016 LINE business and portal CGU Total 3,400 3,400 (In millions of yen) For the year ended December 31, 2017 LINE business and portal CGU Total 16,767 16,767 The recoverable amounts of the CGUs have been determined based on a value in use calculation using cash flow projections for a period of up to five years from financial budgets approved by the Group’s management. Cash flow projections take into account past experience and represent management’s best estimates. The main assumptions used in the value in use calculation include the discount rate, terminal growth rate and expected future cash flows. These assumptions can be subject to significant adjustments due to factors such as marketing budgets, IT spending of corporations, and competition from competitors. Cash flows beyond the planning periods were extrapolated using terminal growth rates. To estimate the discount rate that reflects the time value of money and the risks specific to the CGUs, the Group has assumed a risk-free rate equal to one-month 10-year (a) LINE business and portal CGU The significant assumptions used in the value in use calculations are as follows: 2015 2016 2017 CGU Pre-tax Terminal Pre-tax Terminal Pre-tax Terminal LINE business and portal CGU 14.7 % 1.4 % 11.7 % 1.1 % 10.3 % 1.6 % No impairment losses were recognized for goodwill for the year ended December 31, 2015, 2016 and 2017, as a result of the annual impairment testing. (b) MixRadio CGU The Group acquired MixRadio in the first quarter of 2015 in order to expand the range of services. Refer to Note 29 Business Combinations for further details. However, the music streaming industry grew increasingly competitive over the second half of 2015, mainly due to the expansion by major technology firms in the music space and to market consolidation by competitors with large user bases. This intensified competition led to significant increases in royalties from music labels and publishers, and increases in marketing costs related to user acquisition. These factors negatively impacted the long term profitability of the MixRadio CGU and the Group. As a result, in the fourth quarter of 2015, the Group changed its strategic decision and decided to focus on its core LINE business and portal segment, and planned on exiting the MixRadio business by either selling its operations or, if no buyer was identified, abandoning MixRadio operations in 2016. As of December 31, 2015, as no potential buyer was identified, the Group considered the abandonment of the MixRadio business to be probable. Therefore, as the future cash flows are expected to be negative, goodwill allocated to MixRadio CGU of 2,692 million yen was fully impaired. Further, as a result of the subsequent abandonment on March 21, 2016, the MixRadio CGU was retrospectively classified as a “Loss from discontinued operations, net of tax” in the Consolidated Statements of Profit or Loss. Refer to Note 23 Discontinued Operations for further details. (2) Sensitivity to Changes in Assumptions For LINE business and portal CGU, in the opinion of the Group’s management, the recoverable amount considerably exceeded the carrying amount of the CGU, and the outcomes of the impairment test are not sensitive to reasonably likely changes in any of the assumptions underlying the cash flow projections used for the impairment test or the discount rates in the periods presented for the CGU. For the MixRadio CGU, due to the full impairment as described above, a sensitivity analysis has not been presented. (3) Impairment of Tangible Assets and Intangible Assets with Definite Useful Lives For the year ended December 31, 2015, in connection with the MixRadio segment impairment as explained above, impairments of intangible assets with definite useful life in the amount of 1,374 million yen and property and equipment in the amount of 54 million yen were recognized. For the years ended December 31, 2016, no impairment loss was recognized for tangible assets and intangible assets with definite useful lives. For the year ended December 31, 2017, in connection with Kiwiple and LINE Games Global Gateway L.P., impairments of intangible assets with definite useful life in the amounts of 134 million yen and 80 million yen, respectively were recognized. No impairment loss was recognized for tangible assets. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
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Provisions | 12. Provisions Changes in provisions for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) Restoration Promotional Other Total At January 1, 2016 1,213 290 279 1,782 Arising during the year 618 490 198 1,306 Utilized (339 ) (161 ) (43 ) (543 ) Reversal (237 ) (110 ) (92 ) (439 ) Unwinding of discount and changes in the discount rate 1 — — 1 Exchange differences (19 ) — (1 ) (20 ) Other (3 ) — — (3 ) At December 31, 2016 1,234 509 341 2,084 Arising during the year 1,708 2,945 337 4,990 Utilized (25 ) (2,686 ) (211 ) (2,922 ) Reversal (16 ) (162 ) (55 ) (233 ) Unwinding of discount and changes in the discount rate 0 — — 0 Increase due to business combinations 85 — 2 87 Exchange differences 44 1 0 45 Other 0 — — 0 At December 31, 2017 3,030 607 414 4,051 Restoration obligations for operating lease properties The Group records provisions for restoration obligations related to its operating lease properties as the Group is required to restore these properties upon termination of the operating leases to the state specified in the rental agreements. The reversal in 2016 mainly consisted of a change of 212 million yen in the estimated restoration obligations as the obligation related to the relocation of the Company’s head office was finalized. Promotional virtual credits For promotional and marketing purposes, LINE Points and virtual credits are given to end users free of charge. The Group records a provision for the licensing expense payable to the third-party platform partners upon redemption of free promotional virtual credits for virtual items by end users in the future. The reversal is mainly related to the expiration of certain LINE Points and virtual credits that were given to end users free of charge. Other Other mainly consisted of a provision for the losses expected to be incurred in relation to the outsourcing contracts for cloud AI platform “Clova” and the rental agreement as a result of the foreclosure of LINE FRIENDS STORE. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Income Taxes | 13. Income Taxes (1) Current and deferred taxes related to each component of other comprehensive income for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Pretax Tax Post tax Pretax Tax Post tax Pretax Tax Post tax Remeasurement of defined benefit plans (1,722 ) 576 (1,146 ) 674 (209 ) 465 2,093 (488 ) 1,605 Foreign currency translation adjustments (281 ) 14 (267 ) (299 ) (199 ) (498 ) 3,751 (146 ) 3,605 Reclassification adjustments for foreign currency translation adjustments — — — 50 — 50 (13 ) — (13 ) Proportionate share of other comprehensive income of associates 15 (3 ) 12 3 (0 ) 3 106 (14 ) 92 Net change in fair value of available-for-sale 1,551 276 1,827 (2,019 ) 546 (1,473 ) (3,339 ) 836 (2,503 ) Reclassification adjustments for net change in fair value of available-for-sale 1,790 (577 ) 1,213 293 (92 ) 201 1,090 (343 ) 747 Total 1,353 286 1,639 (1,298 ) 46 (1,252 ) 3,688 (155 ) 3,533 Current and deferred taxes related to items directly charged or credited to equity are as follows: (In millions of yen) 2016 2017 Current tax: Share issuance costs related to initial public offering (153 ) — Share issuance costs related to exercise of stock options (4 ) (9 ) Share issuance costs related to Employee Stock Ownership Plan — (5 ) Deferred tax: Share issuance costs related to initial public offering (114 ) — Share issuance costs related to exercise of stock options — (20 ) Total tax directly (credited) to equity (271 ) (34 ) (2) Deferred Tax Assets and Deferred Tax Liabilities The movements in deferred tax assets and deferred tax liabilities for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) Beginning Amounts Amounts Other (1) Ending Deferred tax assets: Tax losses 3,132 (2,311 ) — 89 910 Depreciation 920 849 — 0 1,769 Advances received 2,967 332 — — 3,299 Deferred revenue 2,350 381 — — 2,731 Restoration obligations for operating lease properties 208 (151 ) — 0 57 Accrued bonuses 614 135 — 1 750 Allowance for doubtful accounts 85 495 — — 580 Other accrued expenses 421 263 — 1 685 Accrued enterprise taxes 248 218 — — 466 Available-for-sale 558 80 8 (2 ) 644 Share-based compensation 719 378 — — 1,097 Post-employment benefits 1,018 416 (209 ) 60 1,285 Tax effect on investments in subsidiaries and associates 3,967 354 (199 ) — 4,122 Other 425 488 — 36 949 Total 17,632 1,927 (400 ) 185 19,344 Deferred tax liabilities: Available-for-sale (2,107 ) 36 446 (2 ) (1,627 ) Prepaid expenses (350 ) (41 ) — 46 (345 ) Intangible assets — 45 — (148 ) (103 ) Other (77 ) 35 — (2 ) (44 ) Total (2,534 ) 75 446 (106 ) (2,119 ) (1) Movements in others are attributable mainly to the acquisition of M.T. Burn Corporation and to incremental costs directly attributable to the issuance of common shares, which were recognized as a deduction from equity. (In millions of yen) Beginning Amounts Amounts Other (1) Ending Deferred tax assets: Tax losses 910 (712 ) — 61 259 Depreciation 1,769 601 — (110 ) 2,260 Advances received 3,299 549 — — 3,848 Deferred revenue 2,731 (263 ) — 3 2,471 Restoration obligations for operating lease properties 57 159 — (1 ) 215 Accrued bonuses 750 121 — (117 ) 754 Allowance for doubtful accounts 580 (209 ) — 6 377 Other accrued expenses 685 (82 ) — 134 737 Accrued enterprise taxes 466 (223 ) — (2 ) 241 Available-for-sale 644 (387 ) 27 (68 ) 216 Share-based compensation 1,097 77 — (5 ) 1,169 Post-employment benefits 1,285 361 (488 ) 26 1,184 Tax effect on investments in subsidiaries and associates 4,122 (1,610 ) (160 ) 24 2,376 Other 949 74 — (3 ) 1,020 Total 19,344 (1,544 ) (621 ) (52 ) 17,127 Deferred tax liabilities: Available-for-sale (1,627 ) 266 466 (132 ) (1,027 ) Prepaid expenses (345 ) (11 ) — — (356 ) Intangible assets (103 ) 125 — (846 ) (824 ) Other (44 ) 65 — (22 ) (1 ) Total (2,119 ) 445 466 (1,000 ) (2,208 ) (1) Movements in others are attributable mainly to the acquisition of NextFloor Corporation. The deferred tax assets and liabilities reconcile to the amounts presented in the Consolidated Statements of Financial Position as follows: (In millions of yen) December 31, December 31, Total deferred tax assets 19,344 17,127 Adjustment to offset deferred tax assets and liabilities (959 ) (635 ) Net deferred tax assets 18,385 16,492 (In millions of yen) December 31, 2016 December 31, 2017 Total deferred tax liabilities (2,119 ) (2,208 ) Adjustment to offset deferred tax assets and liabilities 958 635 Net deferred tax liabilities (1,161 ) (1,573 ) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Below is a breakdown of the deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets were recognized: (In millions of yen) December 31, 2016 December 31, 2017 Deductible temporary differences 20,591 35,997 Unused tax losses 18,434 32,985 Unused tax credits — 157 Total 39,025 69,139 Below is a breakdown of the unused tax losses by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2016 December 31, 2017 Less than one year — 792 Between one year and five years 2,104 1,741 Five years and more 3,826 12,965 No expiration date 12,504 17,487 Total 18,434 32,985 Below is a breakdown of unused tax credits by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, December 31, Less than one year — 36 Between one year and five years — 121 Five years and more — — No expiration date — — Total — 157 As of December 31, 2016 and 2017, the total amounts of taxable temporary differences relating to investments in subsidiaries and joint ventures for which deferred tax liabilities are not recognized were 6,190 million yen and 8,472 million yen, respectively. (3) The components of income tax benefits/(expenses) for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Current income tax: Current income tax expenses (1) (7,595 ) (10,162 ) (8,818 ) Deferred tax: Changes related to origination and reversal of temporary differences (2) 8,758 1,949 (1,107 ) Changes in the tax rate (3) (1,017 ) (691 ) 3 Income tax benefits/(expenses) 146 (8,904 ) (9,922 ) (1) Current income tax expenses include previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences. These benefits were 1,801 million yen, and 489 million yen and 105 million yen for the years ended December 31, 2015, 2016 and 2017, respectively. (2) These balances represent the deferred tax benefit or expense from the increase and decrease of temporary differences, the reversal of previously written-down deferred tax assets and write-downs of deferred tax assets. The Group had deferred tax benefits of 5,699 million yen, 541 million yen and 105 million yen for the years ended December 31, 2015, 2016 and 2017, respectively, due to the reversal of previously written-down deferred tax assets. The reason for having negative amount of deferred tax for the year ended December 31, 2017 is mainly because of the recognition of deferred tax liabilities due to the transfer of camera application business. (3) Amendments to the Japanese tax regulations were enacted into law on March 31, 2014, March 31, 2015 and March 29, 2016. As a result of these amendments, the statutory income tax rate has been reduced from 38.0% to approximately 35.6% and 33.5% effective from the year ended December 31, 2015 and 2016, respectively, and the statutory income tax rates are scheduled to be reduced to approximately 31.7% effective from the year ending December 31, 2017 and 31.5% effective from the year ending December 31, 2019. The Group measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the assets are realized or the liabilities are settled. (4) The income tax expenses calculated by applying the statutory tax rates to the Group’s profit or loss before tax differ from the actual tax expenses in the Consolidated Statements of Profit or Loss for the years ended December 31, 2015, 2016 and 2017 for the following reasons: (In millions of yen) 2015 2016 2017 (Loss)/profit before tax from continuing operations (530 ) 17,990 18,145 Loss before tax from discontinued operations (11,503 ) (2,726 ) (19 ) Accounting (loss)/profit before tax (12,033 ) 15,264 18,126 Income tax benefits/(expenses) at a statutory rate of 31.7% 4,289 (5,119 ) (5,744 ) Permanent non-deductible (1) (3,386 ) (2,703 ) (353 ) Assessment of the recoverability of deferred tax assets (2) 2,214 (752 ) (2,932 ) Effects of changes in tax rate (1,017 ) (691 ) 3 Differences in applicable tax rate of subsidiaries (3) (2,218 ) (81 ) 776 Tax effect on investment in subsidiaries and associates (4) 4,260 591 377 Gain on fair value measurement relating to the deconsolidation (5) — 581 — Share of loss of associates and joint ventures (6) (50 ) (279 ) (1,836 ) Others (31 ) 293 (207 ) Income tax (expenses)/benefits at an effective tax rate of 54.7% 4,061 (8,160 ) (9,916 ) Income tax benefits/(expenses) reported in the statements of profit or loss 146 (8,904 ) (9,922 ) Income tax benefits attributable to discontinued operations 3,915 744 6 4,061 (8,160) (9,916) (1) Permanent non-deductible non-deductible non-resident (2) For the year ended December 31, 2015, the amount was due to recognizing previously unrecognized deferred tax assets of 3,092 million yen and 2,434 million yen for tax loss carryforwards and deductible temporary differences, respectively, primarily for one of the Group’s Korean subsidiaries on a stand-alone basis. Such impact was partially offset by unrecognized deferred tax assets of 2,368 million yen and 944 million yen in connection with the pre-tax For the year ended December 31, 2016, the amount was due to unrecognized deferred tax assets of 966 million yen, 361 million yen and 189 million yen in connection with the pre-tax pre-tax (3) For the year ended December 31, 2016, the amount mainly due to pre-tax pre-tax pre-tax (4) This tax effect is mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred losses during the year. This tax effect offsets MixRadio Limited’s stand-alone tax impacts described in (2) and (3) above. (5) The amount was related to the re-measurement (6) The amount was mainly related to pre-tax |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Other Current Liabilities | 14. Other Current Liabilities Other current liabilities as of December 31, 2016 and 2017 mainly consist of consumption tax payables. |
Financial Assets and Financial
Financial Assets and Financial Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Financial Assets and Financial Liabilities | 15. Financial Assets and Financial Liabilities The carrying amounts and fair value of financial instruments, except for cash and cash equivalents, by line item in the Consolidated Statements of Financial Position and by category as defined in IAS39 Financial Instruments: Recognition and Measurement as of December 31, 2016 and 2017 are as follows: The fair value is not disclosed for those financial instruments whose fair value approximates their carrying amount due to their short-term and/or variable-interest bearing nature among those not measured at fair value in the Consolidated Statements of Financial Position. Refer to Note 26 Fair Value Measurements for more details on the fair value information of the financial instruments whose fair value is disclosed in this footnote. (In millions of yen) December 31, 2016 December 31, 2017 Items Book value Fair value Book value Fair value Financial assets Trade and other receivables Loans and receivables 28,167 42,892 Other financial assets, current Loans and receivables Time deposits 764 12,002 Short-term loans 2 206 Corporate bonds and other debt instruments 4,012 849 Available-for-sale 1,000 1,000 6 6 Office security deposits 1,170 195 Other 4 — Total 6,952 13,258 Other financial assets, non-current Held-to-maturity (1) 280 294 280 291 Loans and receivables Time deposits 10,000 10,000 — — Corporate bonds and other debt instruments 2,632 2,632 7,986 8,036 Guarantee deposits (1) 3,447 726 Office security deposits 4,858 4,739 5,709 5,546 Financial assets at fair value through profit or loss Conversion right and redemption right of 325 325 1,862 1,862 Available-for-sale (2) 14,141 14,141 15,388 15,388 Other 32 133 Total 35,715 32,084 (In millions of yen) December 31, 2016 December 31, 2017 Items Book value Fair value Book value Fair value Financial liabilities Trade and other payables Financial liabilities measured at amortized cost 21,532 28,810 Other financial liabilities, current Financial liabilities measured at amortized cost Deposits received 2,572 5,730 Short-term borrowings (3) 21,925 22,224 Others — 49 Total 24,497 28,003 Other financial liabilities non-current Financial liabilities at fair value through profit or loss Put option liabilities — — 486 486 Financial liabilities measured at amortized cost Office security deposits received under sublease agreement — — 23 23 Others — 93 Total — 602 (1) The Japanese Payment Services Act requires non-banking (2) Impairment losses of 293 million yen and 1,761 million yen were recognized for available-for-sale available-for-sale (3) The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2016 and 2017 was 0.1% and 0.1%, respectively. |
Employment Benefits
Employment Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Employment Benefits | 16. Employment Benefits The Group offers its employees in Korea, Taiwan and Thailand defined benefit plans (unfunded and funded) and defined contribution plans. The specific features of these plans vary depending on the applicable laws and regulations in each country where the employees work. The majority of the Group’s defined benefit obligations represents the defined benefit plans for employees of LINE Plus Corporation, LINE PLAY Corporation, LINE Biz Plus Corporation, LINE Friends Corporation, LINE STUDIO Corporation, LINE UP Corporation, NemusTech Co., Ltd., PiG Corporation, Studio 4LEAF Corporation, Bapul Corporation and Markt co., ltd (collectively, the “subsidiaries with defined benefit plans”) which are located in Korea, while LINE GAMES Corporation, NextFloor Corporation., Next Floor Basement Lab Corporation and InnoAG. inc offer their employees defined contribution plans. The expenses recognized in the Consolidated Statements of Profit or Loss in relation to the defined contribution plans amounted to nil for the years ended December 31, 2015 and 2016, and 47 million yen for the year ended December 31, 2017. The feature of the defined benefit plans in Korea is described below. The legal and regulatory framework for the plans is based on the applicable Korean Employee Retirement Benefit Security Act (“ERBSA”). Post-employment defined benefit plan provides lump sum payments to the eligible employees. Directors and current employees of the subsidiaries offer defined benefit plans with a service period of over one year are eligible for such post-employment defined benefits, which are calculated based on a final average pay formula. Furthermore, the plans expose the Group to actuarial risks, such as interest rate risk, salary increase risk, and longevity risk. Interest rate risk refers to the risk of fluctuation of bond yields. A decrease in the bond yields will increase the defined benefit obligations liability. The salary increase risk refers to the risk that an increase in future salary will increase the defined benefit obligations liability. Longevity risk refers to the risk that an increase in life expectancy of the plan participants will increase the defined benefit obligations liability. The plan assets of the defined benefit plans expose the Group to the risk of underperformance in comparison with the Group’s expectation. (1) Liabilities for defined benefit obligations as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Unfunded Funded Total Unfunded Funded Total Present value of defined benefit obligations 6,204 — 6,204 6,089 100 6,189 Plan assets (1) — — — — (27 ) (27 ) Liabilities for post-employment benefits 6,204 — 6,204 6,089 73 6,162 (1) All of the plan assets are held by NemusTech, Co., Ltd. which the Group acquired during the year ended December 31, 2017. (2) Expenses related to defined benefit plans are recognized in the Consolidated Statements of Profit or Loss as operating expenses for the years ended December 31, 2015, 2016 and 2017 are comprised of the following: (In millions of yen) 2015 2016 2017 Current service costs 1,025 1,620 1,933 Interest costs 81 127 208 Total 1,106 1,747 2,141 (3) Movements in the present value of the defined benefit obligations for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) 2016 2017 Defined benefit obligations at the beginning of year 5,495 6,204 Current service costs 1,620 1,933 Interest costs 127 208 Remeasurement losses/(gains): Actuarial losses arising from changes in demographic assumptions (1) 7,742 (28 ) Actuarial gains arising from changes in financial assumptions (2) (8,314 ) (1,513 ) Experience adjustments (3) (102 ) (552 ) Payments from the plan (174 ) (453 ) Net transfer (4) 49 (57 ) Increase due to business combinations — 261 Exchange differences on translation of foreign operations (239 ) 186 Defined benefit obligations at the end of year 6,204 6,189 (1) In 2016, actuarial losses arising from changes in demographic assumptions resulted mainly from a decrease in estimated termination rates compared with 2015. The decrease in the estimated termination rates primarily related to the fact that the rate of the increase of the number of separation fell below compared to that of the number of employee who are subject to defined benefit plans compared to 2015. In 2017, there is no material change of the estimated termination rates compared with those in 2016. (2) In 2016, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in the discount rate and a decrease in the period end weighted average salary increase rate at year end 2016, as compared to corresponding rates at year end in 2015. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligation, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased. In 2017, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in discount rate in comparison with 2016 and a decrease in the weighted average salary increase rate. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligations, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased. (3 ) Experience adjustments represent the impact on the liabilities of differences between actual experiences during the year compared with the previous actuarial assumptions. (4) Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE PLAY Corporation, LINE Biz Plus Corporation and LINE Friends Corporation and vice versa. (4) Movements in the plan assets for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) 2016 2017 Plan assets at the beginning of year — — Interest income — 2 Employer contributions — 31 Benefits paid — (6 ) Exchange differences on translation of foreign operations — — Plan assets at the end of year — 27 The plan assets contains only cash and cash equivalents. Employer contributions expected to be paid to the plan for the year ending December 31, 2018 are 24 million yen. The amount of employer contributions is determined so that balance of plan assets can be more than 80% of the balance of NemusTech Co., Ltd.’s defined benefit obligations at each year end in the long term. (5) Significant judgment is required when selecting key assumptions for measuring defined benefit expenses for a period and the defined benefit obligations at the period end for each defined benefit plan. The principal actuarial assumptions used include discount rates and salary increase rates. The Group determined the discount rate based on market returns of high-quality corporate bonds consistent with the currencies and estimated payment terms corresponding to the defined benefit obligations as of the reporting date in order to calculate the present value of the defined benefit obligations. December 31, December 31, December 31, Discount rate 2.6% 3.4% 3.2%-3.7% Weighted average of salary increase 9.5%-14.4% 8.6%-11.3% 4.5%-7.7% (6) Economic factors and conditions often affect multiple assumptions simultaneously; as such, the effects of changes in key assumptions are not necessarily linear. The following sensitivity analysis illustrates the impact of changes in certain significant actuarial assumptions, leaving all other assumptions constant, as of December 31, 2016 and 2017: (In millions of yen) Impact on the defined benefit Assumptions and sensitivity level December 31, December 31, Discount rate 100 basis point increase (842 ) (5,019 ) 100 basis point decrease 1,040 6,561 Salary increase rate 100 basis point increase 972 7,057 100 basis point decrease (810 ) (5,620 ) (7) The average duration of the defined benefit plan obligations as of December 31, 2016 and 2017 were 15.2 and 13.3 years, respectively. The following table shows estimated future benefit payments within ten years from December 31, 2017. Actual payments may differ from those shown because of uncertain future events. Years (In millions of yen) 2018 242 2019 320 2020 392 2021 468 2022 1,000 2023–2027 4,250 |
Leases-Group as Lessee
Leases-Group as Lessee | 12 Months Ended |
Dec. 31, 2017 | |
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Leases-Group as Lessee | 17. Leases—Group as Lessee Operating lease commitments—Group as lessee The Group has entered into commercial lease agreements for certain office space and stores. The significant leases have life of five years without renewal option included in the contracts. There are no restrictions placed upon the Group by entering into these leases. Future minimum rentals payable under non-cancelable (In millions of yen) December 31, December 31, Within one year 3,945 4,139 After one year but not more than five years 12,100 10,223 16,045 14,362 Of the operating lease expenses of 2,840 million yen for the year ended December 31, 2015, 1,891 million yen was attributable to minimum lease payment expenses, and the remaining 949 million yen was related to the variable lease payment expenses. Of the operating lease expenses of 4,580 million yen for the year ended December 31, 2016, 3,309 million yen was attributable to minimum lease payment expenses, and the remaining 1,271 million yen was related to the variable lease payment expenses. Of the operating lease expenses of 5,468 million yen for the year ended December 31, 2017, 3,759 million yen was attributable to minimum lease payment expenses, and the remaining 1,709 million yen was related to the variable lease payment expenses. |
Leases-Group as Lessor
Leases-Group as Lessor | 12 Months Ended |
Dec. 31, 2017 | |
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Leases-Group as Lessor | 18. Leases—Group as Lessor Operating leases—Group as lessor In 2015, 2016 and 2017, the Group subleased part of its head office to a third party. There was no minimum payment requirement in the sublease arrangement, and sublease income was based on the actual square footage occupied by the third party. Future minimum rentals payable under non-cancelable (In millions of yen) December 31, December 31, Within one year 19 23 After one year but not more than five years — 25 19 48 The Group recognized sublease income of 51 million yen, 54 million yen and 49 million yen for the years ended December 31, 2015, 2016 and 2017, respectively. |
Issued Capital and Reserves
Issued Capital and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
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Issued Capital and Reserves | 19. Issued Capital and Reserves The movements in issued capital and reserves for the years ended December 31, 2015, 2016 and 2017 are as follows: (1) Authorized shares and shares issued The movements of authorized shares and shares issued for the years ended December 31, 2015, 2016 and 2017 are as follows: Authorized capital with no-par Shares issued no-par Share Common Class A January 1, 2015 400,000,000 174,992,000 — 12,596 Conversion of common shares to class A shares (1) 290,000,000 (174,992,000 ) 174,992,000 — December 31, 2015 690,000,000 — 174,992,000 12,596 Conversion of class A shares to common shares (2) — 174,992,000 (174,992,000 ) — Initial public offering (3) — 40,250,000 — 63,424 Exercise of stock options (4) — 2,533,500 — 1,836 December 31, 2016 690,000,000 217,775,500 — 77,856 Exercise of stock options (4) — 19,713,500 — 12,513 Issuance of common shares (5) — 1,007,810 — 2,000 December 31, 2017 690,000,000 238,496,810 — 92,369 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company introduced a dual class structure of common shares and class A shares. Under the dual class structure, each common share has one vote per unit of 100 shares, and each class A share has one vote per unit of 10 shares, while both classes of shares have the same rights to share in profit, distribution of retained earnings and residual assets. As part of the amendment, the total number of authorized shares was increased to 690,000,000, of which up to 190,872,500 shares may be issued as class A shares. Additionally, the Company converted all outstanding shares held by NAVER into class A shares. Class A shares are mandatorily converted to common shares on a one-to-one (2) Through an amendment of its article of incorporation effective as of March 31, 2016, the Company terminated its dual class structure of shares and converted all outstanding class A shares to common shares. (3) The Company issued 35,000,000 shares of common shares through the initial public offering of new shares on July 14, 2016. Additionally, on August 16, 2016, Nomura Securities Co., Ltd. and Morgan Stanley & Co. LLC. exercised their options to purchase 5,250,000 additional common shares in an allotment of new shares. As of December 31, 2016, there were no outstanding over-allotment options granted to underwriters. (4) Refer to Note 27 Share-Based Payments for further details. (5) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (2) Share premium and retained earnings Share premium The movements in share premium for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) Share-based (1) Common combinations Others (2) Share January 1, 2015 3,810 294 3,668 7,772 Share-based payments 11,213 — — 11,213 Change in ownership interest in a subsidiary without losing control — — (2 ) (2 ) December 31, 2015 15,023 294 3,666 18,983 Share-based payments 9,520 — — 9,520 Exercise of stock options (2,548 ) — 2,460 (88 ) Forfeiture of stock options (60 ) — — (60 ) Initial public offering (3) — — 63,424 63,424 Cost related to initial public offering (4) — — (571 ) (571 ) December 31, 2016 21,935 294 68,979 91,208 Share-based payments 1,882 — — 1,882 Exercise of stock options (16,746 ) — 15,721 (1,025 ) Forfeiture of stock options (9 ) — — (9 ) Issuance of common shares (5) — — 2,000 2,000 Cost related to issuance of common shares (4) — — (73 ) (73 ) Acquisition of non-controlling — — (423 ) (423 ) December 31, 2017 7,062 294 86,204 93,560 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company amended the terms applicable to a portion of two tranches of stock options, which are the acquisition rights for common shares (the “Common Stock Options”). As a result of the amendment, 24,724 Common Stock Options originally granted on December 17, 2012 and 6,949 Common Stock Options originally granted on February 4, 2015 were converted to the acquisition rights for class A shares (the “Class A Stock Options”), with the holders of such options entitled to acquire 500 class A shares upon exercise of each stock option. Refer to Note 27 Share-Based Payments for further details. Through an amendment of its article of incorporation effective as of March 31, 2016, the Company amended the terms applicable to stock options from class A shares to common shares. (2) Others mainly consists of capital reserve required under the Companies Act of Japan. (3) The Company issued 35,000,000 common shares through the initial public offering of new shares on July 14, 2016. Additionally, on August 16, 2016, Nomura Securities Co., Ltd. and Morgan Stanley & Co. LLC. exercised their options to purchase 5,250,000 additional shares of common stock in an allotment of new shares. As of December 31, 2016, there were no outstanding allotment options granted to underwriters. (4) Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects, in accordance with IAS 32 Financial instruments: Presentation. Refer to Note 13 (1) Income Taxes for further details on these tax effects. (5) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) Under the Companies Act of Japan, at least 50% of the proceeds of certain issuances of share capital shall be credited to share capital. The remaining proceeds shall be credited to share premium. The Companies Act permits, upon approval at the general meeting of shareholders, the transfer of amounts from share premium to share capital. Retained earnings The Companies Act of Japan requires that an amount equal to at least 10% of dividends from surplus, as defined under the Companies Act, shall be appropriated as capital reserve (part of share premium) or appropriated for legal earnings reserve (part of retained earnings) until the aggregate amount of capital reserve and legal earnings reserve is equal to 25% of share capital. The legal earnings reserve may be used to eliminate or reduce a deficit or be transferred to other retained earnings upon approval at the general meeting of shareholders. The Company has not declared or paid cash dividends to date, and therefore no legal earnings reserves have been recorded as of December 31, 2016 and 2017. (3) Treasury shares The movements in treasury shares for the year ended December 31, 2017 are as follows: Number of shares no-par Amount (In millions of yen) January 1, 2017 — — Increase during the year (1) 1,007,810 4,000 Decrease during the year (2) (100 ) (0 ) December 31, 2017 1,007,710 4,000 (1) Resulted from the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (2) Resulted from the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
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Supplemental Cash Flow Information | 20. Supplemental Cash Flow Information Deconsolidation of LINE BIZ Plus Ltd. On April 25, 2016, an issuance of new shares to BSS Holdings group, a provider of smart cards for mass transit systems and offline e-payment at retail stores in Thailand, resulted in a decrease of the Group’s ownership of LINE BIZ Plus Ltd. (subsequently renamed to RABBIT LINE PAY COMPANY LIMITED) from 100.0% to 50.0%. LINE BIZ Plus Ltd. was accounted for as a joint venture under the equity method because the Group had joint control of the entity under the shareholders agreement. The assets, liabilities and other items of LINE BIZ Plus Ltd. transferred in connection with the deconsolidation were as follows: (In millions of yen) Cash and cash equivalents (1) 482 Other current assets 19 Non-current assets 28 Current liabilities (71 ) Non-current liabilities (4 ) Goodwill 150 Non-controlling interests 0 Exchange differences on translation of foreign operations 49 Total 653 (1) This amount is included in “Cash disposed on loss of control of subsidiary” in the Group’s Consolidated Statements of Cash Flows. As of the transaction date, the re-measurement to fair value of the investment retained by the Group in LINE BIZ Plus Ltd. amounted to 2,384 million yen and was based on the issuance of new shares for 750 million Baht. As a result, the Group recognized a gain of 1,731 million yen, which was recognized in the Consolidated Statements of Profit or Loss as “Other operating income”. Divestiture of Bonsai Garage Corporation On February 29, 2016, the Company sold all of its shares of Bonsai Garage Corporation to a third party. The assets and liabilities of the Bonsai Garage Corporation, gain on divesture of the subsidiary, and cash consideration received in connection with such sales are presented below: (In millions of yen) Cash and cash equivalents 3 Other current assets 10 Current liabilities (34 ) Gain on divestiture of business and subsidiary 21 Total consideration received in cash 0 Net decrease in cash and cash equivalents due to the divestiture of Bonsai Garage Corporation ( ) (3 ) ( ) This amount is included in “Cash disposed on loss of control of subsidiary” in the Company’s Consolidated Statements of Cash Flows. Proceeds from/(repayments of) short-term borrowings “Proceeds from/(repayments of) short-term borrowings, net” in the Company’s Consolidated Statements of Cash Flows consists of 22,080 million yen of proceeds and 42,833 million yen of repayments for the year ended December 31, 2016. Transfer of Camera Application Business to Snow Corporation On May 1, 2017, the Group transferred the camera application business, which was operated by LINE Plus Corporation, to Snow Corporation, an associate of the Group and a subsidiary of NAVER. The camera application business includes services such as B612, LINE Camera, Foodie and Looks. The Group acquired 208,455 newly issued common shares of Snow Corporation in exchange for the camera application business. The number of common shares newly issued by Snow Corporation was determined based on the ratio of the fair value of the camera application business transferred as well as the cash and cash equivalent comparing to the enterprise value of Snow Corporation. As a result of this transaction, the Group’s ownership in Snow Corporation increased from 25.0% to 48.6%, followed by an additional capital injection to Snow Corporation by the Company and NAVER in August 2017, resulting in a decrease of the Group’s ownership from 48.6% to 45.0%. The Group continues to account for its ownership in Snow Corporation using the equity method. Also, the ownership of NAVER in Snow Corporation decreased from 75.0% to 55.0% as a result of this transaction. Refer to Note 31 Investments in Associates and Joint Ventures for further details. The common shares of Snow Corporation received in exchange for the camera application business are measured and recorded at fair value as of the transaction date. The fair value of the common shares were measured based on the fair value of the camera application business which was estimated using the discounted cash flow method. All the variances between the assets and liabilities of the camera application business transferred to Snow Corporation and the consideration of transfer were recognized as gain on transfer as presented below. (In millions of yen) Current assets 603 Cash and cash equivalents 581 Other current assets 22 Non-current 71 Current liabilities (133 ) Non-current (334 ) Total 207 Consideration received in exchange for the transfer of camera application business (*1) 10,651 Gain on transfer (*2) 10,444 (*1) This amount is solely for the newly issued common shares of Snow Corporation. This transaction is considered as a non-cash transaction. (*2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. Material non-cash (1) Acquisition of treasury shares by issuance of common shares In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP), As a result, the amounts of share capital, share premium, and treasury shares in the fiscal year 2017 were increased by 2,000 million yen, 2,000 million yen and 4,000 million yen, respectively. (2) Acquisition of interest in subsidiaries by debt equity swap On June 19, 2017, the Group provided loan to NextFloor Corporation. (“NextFloor”) for the amount of 1,976 million yen. Subsequently, on July 24, 2017, the all of the loan was converted into common share of NextFloor through the process of acquiring 51.0% interests of NextFloor. Refer to Note 29. Business Combinations for further details. Movements on liabilities from financing activities (In millions of yen) Borrowings Borrowings Total Net liabilities as of January 1, 2017 21,925 — 21,925 Cash flows (107 ) (1 ) (108 ) Increase due to business combinations 405 91 496 Items such as foreign currency translation adjustments 1 3 4 Net liabilities as of December 31, 2017 22,224 93 22,317 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2017 | |
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Revenues | 21. Revenues Revenues were derived from the rendering of services, the sale of goods and royalties. Revenues by category for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Sale of goods 4,250 8,056 10,823 Rendering of services 115,515 131,201 154,356 Royalties 641 1,447 1,968 Total 120,406 140,704 167,147 |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Other Income and Expenses | 22. Other Income and Expenses (1) Other operating income for the years ended December 31, 2015, 2016 and 2017 is as follows: (In millions of yen) 2015 2016 2017 Virtual credits breakage income 347 1,491 815 Gain on divestiture of business and subsidiaries (1) — 1,731 10,444 Gain on sale of land (2) — 2,461 — Others 127 209 752 Total 474 5,892 12,011 (1) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) On June 29, 2016, the Company sold land in Fukuoka prefecture with a carrying amount of 2,584 million yen to Kyushu Railway Company. The sale price was 5,050 million yen and the Group recognized a gain on the sale of 2,461 million yen. (2) Other operating expenses for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Rent 2,302 3,529 6,143 Travel 1,851 1,737 2,259 Supplies 723 1,154 2,378 Taxes and dues 250 801 1,516 Professional fees 2,256 2,030 2,182 Cost of goods 3,209 3,519 4,946 Training 823 1,006 1,344 Others (1) 3,018 4,600 4,635 Total 14,432 18,376 25,403 (1) The amount consists of office management fees and other miscellaneous expenses. (3) Other non-operating (In millions of yen) 2015 2016 2017 Gain on financial assets at fair value through profit or loss 111 — 1,096 Dividend income 46 4 69 Gain on sale of financial assets — — 751 Others — 5 47 Total 157 9 1,963 (4) Other non-operating (In millions of yen) 2015 2016 2017 Loss on financial assets at fair value through profit or loss — 656 118 Loss on impairment of available-for-sale 1,790 293 1,761 Loss from derivatives 62 60 — Others 35 53 109 Total 1,887 1,062 1,988 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
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Discontinued Operations | 23. Discontinued Operations The Group acquired MixRadio on March 16, 2015. Subsequently, the Group made a strategic decision to focus on its core LINE business and portal segment. On February 12, 2016, the board of directors approved the abandonment of the MixRadio segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. The aggregated results of the discontinued operations for the years ended December 31, 2015, 2016 and 2017 are presented below. (In millions of yen) 2015 2016 2017 Revenues 264 444 — Other income — 9 — Expenses (1) (11,767 ) (3,179 ) (19 ) Loss before tax from discontinued operations (11,503 ) (2,726 ) (19 ) Income tax benefits on disposal (2) 3,915 744 6 Loss for the year from discontinued operations (attributable to the shareholders of the Company) (7,588 ) (1,982 ) (13 ) (1) In connection with the abandonment of the MixRadio business on March 21, 2016, restructuring expenses related to employee termination benefits of 1,165 million yen and office lease termination fees of 126 million yen have been incurred. (2) The income tax benefits for the years ended December 31, 2015, 2016 and 2017 are mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred loss during the periods. The aggregated cash flow information of the discontinued operations for the years ended December 31, 2015, 2016 and 2017, are presented below. (In millions of yen) 2015 2016 2017 Operating (6,457 ) (4,654 ) (136 ) Investing (2,427 ) 22 — Financing — — — Net cash outflow (8,884 ) (4,632 ) (136 ) |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings per Share | 24. Earnings per Share The profit or loss for the year and the weighted average number of shares used in the calculation of earnings per share are as follows: (In millions of yen, except number of shares) 2015 2016 2017 Profit for the year attributable to the shareholders of the Company from continuing operations 6 8,745 8,091 Loss for the year attributable to the shareholders of the Company from discontinued operations (7,588 ) (1,982 ) (13 ) Total (loss)/profit for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share (7,582 ) 6,763 8,078 Weighted average number of total common shares and class A shares 174,992,000 194,083,995 221,405,391 Weighted average number of total treasury shares — — (459,843 ) Weighted average number of common and class A shares for basic earnings per share (1) 174,992,000 194,083,995 220,945,548 Effect of dilution: Stock options 18,805,566 20,790,013 16,559,789 Employee Stock Ownership Plan (J-ESOP) — — 47,369 Weighted average number of total common and class A shares adjusted for the effect of dilution (1) 193,797,566 214,874,008 237,552,706 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company introduced a dual class structure of common shares and class A shares and converted all outstanding common shares into class A shares; therefore, the weighted average number of shares for the year ended December 31, 2016 includes the average number of common shares and class A shares for the year ended December 31, 2016. Additionally, through an amendment of its article of incorporation effective as of March 31, 2016, the Company terminated its dual class structure of commons shares and class A shares and converted all class A shares into common shares. In calculating diluted earnings per share, share options outstanding and other potential shares are taken into account where their impact is dilutive. Potential common shares used in the calculation of diluted earnings per share for the year ended December 31, 2015, included options representing 9,848,000 common shares and 15,836,500 class A shares which were outstanding as of December 31, 2015 as they had a dilutive impact. For the year ended December 31, 2015, diluted loss per share attributable to the shareholder of the Company is lower than basic loss per share attributable to the shareholders of the Company because of the effect of losses from the discontinued operations. Potential common shares used in the calculation of diluted earnings per share for the year ended December 31, 2016, included options representing 22,911,500 shares which were outstanding as of December 31, 2016 as they had a dilutive impact. Potential common shares used in the calculation of diluted earnings per share for the year ended December 31, 2017, included options representing 5,828,302 shares which were outstanding as of December 31, 2017 as their impact was dilutive. The Company has granted 23,860 of stock options (warrants) to directors and executive officers of the Company and a director of a subsidiary with the grant date of July 18, 2017. Upon exercise of those stock options, common shares of 2,386,000 will be issued. Moreover, the Company has issued 1,007,810 of new common shares through a third-party allotment in accordance with the introduction of the Employee Stock Ownership Plan (J-ESOP) |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
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Financial Risk Management | 25. Financial Risk Management The Group has exposure to the following risks from its use of financial instruments: – Credit risk – Liquidity risk – Market risk This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout the Group’s consolidated financial statements. (1) Risk Management Framework The Group limits its fund management to highly liquid and low risk investments, such as time deposits and other debt instruments. The Group raises funds mainly through the issuance of corporate bonds, and borrowings from financial institutions, including banks, with high credit ratings. The Group may enter into foreign exchange forward contracts to hedge foreign exchange risk. The Group does not enter into any financial transactions for speculative purposes. (2) Credit Risk Credit risk is the risk of financial losses to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investments. (a) Maximum amounts of possible financial loss to the Group due to credit risk as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, Book value Book value Demand deposits (1) 134,690 123,593 Time deposits (1) 10,764 12,002 Loan receivables (3) 2 206 Guarantee deposits (1)(2) 3,447 726 Trade and other receivables (3) (4) 28,167 42,892 Japanese government bonds (1)(2) 280 280 Corporate bonds and other debt instruments (1) 7,643 8,835 Office security deposits (1)(5) 6,028 5,904 Total 191,021 194,438 (1) None of these assets were past due or impaired at the end of the respective reporting period. (2) Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. (3) For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of loan receivables, trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical experience for similar assets. (4) The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 38.5% and 30.5% of trade and other receivables as of December 31, 2016 and 2017, respectively. (5) The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. (b) Impaired or past-due In case of impairment of financial assets, the Group does not directly write off such assets by reducing the carrying amount, but instead records an allowance for doubtful accounts. However, in the event that there is no realistic prospect of future recovery, financial assets are directly written off. Below is the movement in the allowance for doubtful accounts attributable to trade and other receivables, and other financial assets current: (In millions of yen) Allowance for doubtful accounts Balance at January 1, 2016 430 Provision for the year 663 Reversal (9 ) Utilized (9 ) Translation 2 Balance at December 31, 2016 1,077 Provision for the year 83 Reversal (515 ) Utilized (204 ) Acquisition of subsidiary 44 Translation 7 Balance at December 31, 2017 492 Refer to Note 7 Trade and Other Receivables for more details on non-current (3) Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as much as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group monitors its cash flow through long-term and short-term management strategies and ensures it has sufficient cash on hand to meet expected operational expenses. (a) Financial liabilities The book values of financial liabilities based on the remaining maturities as of December 31, 2016 and 2017 are as follows. The amounts below include estimated interest from financial liabilities scheduled to be paid. (In millions of yen) December 31, 2016 Book value Contractual cash outflows Less than One to After Trade and other payables 21,532 21,532 21,532 — — Short-term borrowings (1) 21,925 21,937 21,937 — — Deposits received 2,572 2,572 2,572 — — Total 46,029 46,041 46,041 — — (In millions of yen) December 31, 2017 Book value Contractual Less than One to After Trade and other payables 28,810 28,810 28,810 — — Short-term borrowings (1) 22,224 22,341 22,341 — — Deposits received 5,730 5,730 5,730 — — Office security deposits received under sublease agreement 23 23 — 23 — Put option liabilities 486 486 — 486 — Total 57,273 57,390 56,881 509 — (1) The Group had lines of credit with four banks for the years ended December 31, 2016 and 2017. The lines of credit available and the lines of credit used are as follows: (In millions of yen) December 31, December 31, Lines of credit available 24,380 22,712 Lines of credit used 21,667 22,000 Remaining lines of credit available 2,713 712 (b) Financial assets Private equity investments As a limited partner of the private equity investment funds, the Group may be required at any time to contribute to the partnership its pro rata share of the aggregate amount to be contributed by all limited partners for such portfolio investment, up to the amount of its unfunded capital commitment (17 million U.S. dollars, equivalent of 1,956 million yen, as of December 31, 2016 and 810 million yen, 26 million U.S. dollars, equivalent of 2,942 million yen, and 45 million Taiwan dollars, equivalent of 170 million yen, as of December 31, 2017) as of the day of the capital contribution call. (4) Market Risk Market risk is the risk that changes in market prices which will affect the future cash flow or the value of the Group’s holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. (a) Exchange rate risk The Group has exposure to currency risk on sales and purchase transactions denominated in currencies other than the functional currencies. The main currencies used for transactions of the Group are the Japanese yen (“JPY”), the Korean won (“KRW”), the euro (“EUR”), the U.S. dollar (“USD”), and the Thai baht (“THB”). The book values of major monetary assets and liabilities denominated in currencies other than the functional currency as of December 31, 2016 and 2017 are as follows: (In millions) December 31, 2016 Currency Amount Exchange rate Yen equivalent Monetary assets: Cash and cash equivalents KRW 37,595 0.10 3,626 USD 32 116.56 3,775 EUR 6 122.26 750 Trade receivables KRW 2,310 0.10 223 USD 6 116.56 725 THB 395 3.24 1,282 Time deposits KRW 5,100 0.10 492 USD 2 116.56 257 Office security deposits KRW 5,623 0.10 542 Available-for-sale USD 9 116.56 1,059 (In millions) December 31, 2017 Currency Amount Exchange rate Yen equivalent Monetary assets: Cash and cash equivalents KRW 7,312 0.11 770 USD 101 112.88 11,364 EUR 2 134.78 213 JPY 258 1.00 258 Trade receivables USD 12 112.88 1,336 THB 188 3.45 649 Other receivables USD 5 112.88 611 Time deposits KRW 6,100 0.11 643 USD 10 112.88 1,131 Office security deposits KRW 5,655 0.11 596 Available-for-sale USD 35 112.88 3,949 (In millions) December 31, 2016 Currency Amount Exchange rate Yen equivalent Monetary liabilities: Trade and other payables KRW (7,669 ) 0.10 (740 ) USD (5 ) 116.56 (612 ) EUR (2 ) 122.26 (211 ) (In millions) December 31, 2017 Currency Amount Exchange rate Yen equivalent Monetary liabilities: Trade and other payables KRW (20,456) 0.11 (2,155) USD (10) 112.88 (1,166) THB (97) 3.45 (334) Put option liabilities KRW (2,114) 0.11 (223) The effects on profit or loss before tax from continuing operations and shareholders’ equity as a result of exchange rate fluctuations as of December 31, 2016 and 2017, are as follows: (In millions of yen) December 31, 2016 Shareholder’s equity Profit or (loss) before tax Currency Appreciation Depreciation Appreciation Depreciation EUR 20 (19 ) 27 (26 ) KRW 157 (150 ) 207 (197 ) USD 195 (186 ) 260 (248 ) THB 47 (45 ) 64 (61 ) (In millions of yen) December 31, 2017 Shareholders’ equity Profit or (loss) before tax Currency Appreciation Depreciation Appreciation Depreciation EUR 11 (10 ) 8 (8 ) KRW (18 ) 18 (13 ) 12 USD 861 (820 ) 603 (574 ) THB 16 (15 ) 11 (10 ) JPY 13 (12 ) 10 (10 ) The tables above demonstrate the sensitivity to a change in EUR, KRW, USD, THB and JPY assuming all other variables are constant. (b) Interest rate risk Interest bearing financial assets and liabilities as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Fixed rate Variable rate Fixed rate Variable rate Financial assets Japanese government bonds 280 — 280 — Time deposits 10,764 — 12,002 — Loan receivables 2 — 116 — Corporate bonds and other debt instruments 4,632 3,012 8,835 — Total financial assets 15,678 3,012 21,233 — Financial liabilities Short-term borrowings 258 21,667 43 22,042 Total financial liabilities 258 21,667 43 22,042 The Group has exposure to interest rate risk as it possesses financial assets and liabilities bearing variable interest rates. The analysis below was performed using balances of the financial liabilities with variable interest rates outstanding as of December 31, 2016 and 2017, assuming such liabilities were outstanding for the full fiscal year immediately before the respective dates, while holding all other variables constant. Potential effects on shareholders’ equity and profit or loss for one year from the reporting date as a result of a change in the interest rate are as follows. (In millions of yen) December 31, 2016 Shareholder’s equity Profit or (loss) before tax Increase of 50 Decrease of 50 Increase of 50 Decrease of 50 Interest expenses (74 ) 11 (108 ) 16 (In millions of yen) December 31, 2017 Shareholders’ equity Profit or (loss) before tax Increase of 50 Decrease of 50 Increase of 50 Decrease of 50 Interest expenses (75 ) 13 (110 ) 19 (5) Capital management The Group maintains a strong capital base to ensure the Group will be able to continue as a going concern. In addition, through management of the debt and equity balances, the Group aims to maintain investor, creditor and market confidence, and to sustain future development of the business. In order to achieve sustainable growth, the Group understands that financing capacities sufficient to make business investments when there are opportunities, such as the acquisition of external resources for business growth, are required. For that reason, the Group aims to maintain a well-balanced capital structure by ensuring sound and flexible financial conditions for future business investment. (In millions of yen) December 31, December 31, Short-term borrowings 21,925 22,224 Total 21,925 22,224 Total shareholders’ equity 161,023 189,977 The Group is not subject to any externally imposed capital requirements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Fair Value Measurements | 26. Fair Value Measurements (1) Fair value hierarchy The Group referred to the levels of the fair value hierarchy for financial instruments measured at fair value in the consolidated financial statements based on the following inputs: – Level 1 inputs are quoted prices in active markets for identical assets or liabilities. – Level 2 inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. – Level 3 inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions that market participants would use in establishing a price. Transfers between levels of the fair value hierarchy are recognized as if they have occurred at the beginning of the reporting period. (2) Fair value measurements by fair value hierarchy Assets and liabilities measured at fair value on a recurring basis in the Consolidated Statements of Financial Position as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss Conversion right and redemption right of preferred stock — — 325 325 Available-for-sale Listed equity investments 2,346 — — 2,346 Private equity and other financial instruments — — 12,795 12,795 Total 2,346 — 13,120 15,466 (In millions of yen) December 31, 2017 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss Conversion right and redemption right of preferred stock — — 1,862 1,862 Available-for-sale Listed equity investments 1,574 — — 1,574 Private equity and other financial instruments — — 13,820 13,820 Total 1,574 — 15,682 17,256 Financial liability at fair value through profit or loss Put option liabilities — — 486 486 Total — — 486 486 Assets and liabilities not measured at fair values in the Consolidated Statements of Financial Position, but for which fair values are disclosed as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 Level 1 Level 2 Level 3 Total Held-to-maturity Japanese government bonds — 294 — 294 Loans and receivables Time deposits — 10,000 — 10,000 Corporate bonds and other debt instruments — 2,632 — 2,632 Office security deposits — 4,739 — 4,739 Total — 17,665 — 17,665 (In millions of yen) December 31, 2017 Level 1 Level 2 Level 3 Total Held-to-maturity Japanese government bonds — 291 — 291 Loans and receivables Corporate bonds and other debt instruments — 8,036 — 8,036 Office security deposits — 5,546 — 5,546 Total — 13,873 — 13,873 Financial liability measured at amortized cost Office securities deposits received under sublease agreement — 23 — 23 Total — 23 — 23 There have been no transfers among Level 1, Level 2 and Level 3 during the years ended December 31, 2016 and 2017, except for the transfer from Level 1 to Level 3 as described in (3) below. (3) Reconciliations from the opening balance to the closing balance of financial instruments categorized within Level 3 are as follows: (In millions of yen) 2016 2017 Private and other financial Conversion right of Private and other financial Conversion right of Put option Fair value at the beginning of the year 13,648 871 12,795 325 — Total (loss)/gain for the year: Included in profit or loss (1) (29 ) (656 ) (1,535 ) 1,062 (7 ) Included in other comprehensive income (2) (2,140 ) — (2,456 ) — — Comprehensive (loss)/income (2,169 ) (656 ) (3,991 ) 1,062 (7 ) Purchases 2,054 197 4,949 363 457 Sales and settlements — — (1,619 ) — — Return of capital (8 ) — (121 ) — — Increase due to business combination — — 610 — 33 Transfers in (3) — — 326 — — Effect of exchange rate changes (730 ) (87 ) 871 112 3 Fair value at the end of the year 12,795 325 13,820 1,862 486 (1) This amount is included in “Other non-operating non-operating (2) This amount is included in “Net changes in fair value” of available-for-sale (3) During the year ended December 31, 2017, the issuing company of the equity was delisted from a stock exchange in the U.S. subsequent to our purchase of its equity securities. Accordingly, such equity investment was transferred from Level 1 to Level 3. (4) Valuation techniques and inputs Assets and liabilities measured at fair value on a recurring basis in the Group’s Consolidated Statements of Financial Position Conversion right and redemption right of preferred stock The conversion right and redemption right of preferred stock are embedded derivatives. Such conversion right and redemption right are bifurcated from the underlying preferred stock and measured at fair value using mainly a binomial option pricing model. Below is the quantitative information regarding the valuation technique and significant unobservable inputs used in measuring the fair value of certain conversion right and redemption right of preferred stock: Valuation technique Significant 2016 2017 Binomial option pricing model Comparable listed companies’ average historical volatility 13.6%-39.6% 46.0%-49.2% Discount rate 1.6% 2.5% A significant increase (decrease) in the comparable listed companies’ average historical volatility would result in a higher (lower) fair value of the conversion right and redemption right of preferred stock, while a significant increase (decrease) in the discount rate would result in a lower (higher) fair value of the conversion right and redemption right of preferred stock. Put option liabilities The put option liabilities are options written on shares of subsidiaries, associates, and investments. Such put option liabilities are measured at fair value using mainly option pricing model or the Monte Carlo simulation. Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain put option liabilities: Valuation technique Significant 2016 2017 Option pricing model Comparable listed companies’ average historical volatility — 45.0% Discount rate — 4.3% Monte Carlo simulation Comparable listed companies’ average historical volatility — 41.4%-49.2% Discount rate — 2.5% A significant increase (decrease) in the comparable listed companies’ average historical volatility would result in a higher (lower) fair value of the put option liabilities, while a significant increase (decrease) in the discount rate would result in a lower (higher) fair value of the put option liabilities. Private equity and other financial instruments Available-for-sale Unlisted equity securities are measured at fair value either based on the most recent transactions, the market approach and option pricing model, or the discount cash flow model. Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain unlisted equity securities: Valuation technique Significant unobservable input 2016 2017 Market approach—market comparable companies EBITDA multiple 10.4 11.6-12.8 EBIT multiple — 11.4-19.3 Revenue multiple 1.7-3.6 1.4-6.2 Liquidity discount 30% 30% Option pricing model Comparable listed companies’ average historical volatility 39.6%-78.9% 49.7%-76.2% Discount rate (0.1%)-1.6% (0.1%)-2.6% Discount cash flow model Discount rate 16.8% 12.8%-13.0% Growth rate — 1.0%-2.0% A significant increase (decrease) in the EBITDA, EBIT, revenue multiple and growth rate would result in a higher (lower) fair value of the unlisted equity securities, while a significant increase (decrease) in the liquidity discount, comparable listed companies’ average historical volatility, discount rate, weighted average cost of capital and risk premium would result in a lower (higher) fair value of the unlisted equity securities. The valuation techniques and the valuation results of the Level 3 financial assets, including those performed by the external experts, were reviewed and approved by the management of the Group. Assets and liabilities not measured at fair value in the Consolidated Statements of Financial Position, but for which fair values are disclosed Japanese government bonds Japanese government bonds are included in held-to-maturity Office security deposits, office security deposits received under sublease agreements, time deposits, corporate bonds and other debt instruments The fair values of the office security deposits office security deposits received under sublease agreements, time deposits, corporate bonds and other debt instruments are calculated by using the discounted cash flow method which utilizes observable inputs such as risk-free interest rates and credit spreads of the Group as of the reporting dates. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Share-Based Payments | 27. Share-Based Payments The Group has stock option incentive plans for directors and employees. (1) Stock Option Plan For the stock options granted during the years ended December 31, 2012, 2013, 2014, and 2015, each stock option represents the right to purchase 500 common shares at a fixed price for a defined period of time. The exercise price of stock options, which were granted during the years ended December 31, 2012 and 2013 was 344 yen, whereas that of those options, which were granted during the years ended December 31, 2014 and 2015 was 1,320 yen. In the year ended December 31, 2017, the Company has granted 23,860 of stock options equivalent to 2,386,000 of common shares with the exercise price of 4,206 yen. The fair value of stock options is determined using the Black-Scholes model, a commonly accepted stock option pricing method. Stock options granted during the years ended December 31, 2012, 2013, 2014 and 2015 vest after two years from the grant date and are exercisable for a period of eight years from the vesting date. Stock options granted during the year ended December 31, 2017 vest 25% of stock options per year over a period of four years from the grant date and are exercisable from the vesting date until July 18, 2027. Conditions for vesting and exercise of the stock options require that those who received the allotment of stock options continue to be employed by the Group from the grant date to the vesting date, and from the grant date to the exercise date, respectively, unless otherwise permitted by the board of directors. Refer to Note 4 Significant Accounting Judgments, Estimates and Assumptions (f) for more details on the valuation methodology of stock options, and the assumptions used in such valuation. There were no cancellations or modifications to the awards in 2015, 2016 or 2017. On June 15, 2015, through the amendment of its articles of incorporation, the Company introduced a dual class structure of common shares and class A shares. Under the dual class structure, each common share has one vote per unit of 100 shares, and each class A share has one vote per unit of 10 shares, while both classes of shares have the same rights to share in profit, distribution of retained earnings and residual assets. Additionally, the Company amended the terms applicable to a portion of two tranches of stock options. As a result of the amendment, 24,724 Common Stock Options originally granted on December 17, 2012 and 6,949 Common Stock Options originally granted on February 4, 2015 were converted to Class A Stock Options. While all other contract terms remain unchanged, the holders of Class A Stock Options are entitled to acquire 500 class A shares upon exercise of each stock option. The Class A Stock Options are mandatorily converted to Common Stock Options on a one-to-one Through an amendment of its article of incorporation effective as of March 31, 2016, the Company amended the terms applicable to stock options from class A shares to common shares. i. Movements during the years ended December 31, 2015, 2016 and 2017 The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, outstanding stock options on a per-common-share 2015 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 20,217,500 481 — — Granted during the period 5,773,500 1,320 — — Forfeited during the period (306,500 ) 1,178 — — Exercised during the period — — — — Expired during the period — — — — Conversion of Common Stock Options to Class A Stock Options (15,836,500 ) 558 15,836,500 558 Outstanding at December 31 9,848,000 827 15,836,500 558 Exercisable at December 31 4,970,500 344 12,362,000 344 2016 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 9,848,000 827 15,836,500 558 Granted during the period — — — — Forfeited during the period (239,500 ) 1,137 — — Exercised during the period (1) (2,533,500 ) 691 — — Expired during the period — — — — Conversion of Class A Stock Options to Common Stock Options 15,836,500 558 (15,836,500 ) 558 Outstanding at December 31 22,911,500 653 — — Exercisable at December 31 17,321,500 438 — — 2017 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 22,911,500 653 — — Granted during the period 2,386,000 4,206 — — Forfeited during the period (7,000 ) 1,320 — — Exercised during the period (1) (19,713,500 ) 583 — — Expired during the period — — — — Outstanding at December 31 5,577,000 2,421 — — Exercisable at December 31 3,191,000 1,086 — — (1) The weighted average share price at the date of exercise of these options during the years ended December 31, 2016 and 2017 were 4,255 yen and 4,580 yen, respectively. ii. The exercise price and the number of shares for options outstanding as of December 31, 2015, 2016 and 2017 are as follows: Number (Shares) Grant dates Exercise price December 31, December 31, December 31, December 18, 2012 344 14,000,000 14,000,000 — December 17, 2013 344 3,322,500 1,654,000 763,500 February 8, 2014 1,320 1,667,000 1,135,000 818,000 August 9, 2014 1,320 697,000 311,000 218,000 November 1, 2014 1,320 323,000 221,500 145,000 February 4, 2015 1,320 5,665,000 5,590,000 1,246,500 July 18, 2017 4,206 — — 2,386,000 iii. The weighted average remaining contractual life for the stock options outstanding as of December 31, 2015, 2016 and 2017 was 7.7 years, 6.7 years and 7.8 years respectively. iv. The following tables list the inputs to the models used for deriving the fair value of the stock options granted for the years ended December 31, 2015, 2016 and 2017 Grant dates 2015 2017 February 4 July 18 Dividend yield 0.0 % 0.0 % Expected volatility 56 % 44.9-45.7 % Risk-free interest rate 0.0 % (0.04)-0.00 % Expected life of stock options (years) 6 5.5-7 Exercise price (yen) 1,320 4,206 Fair value per common share at the grant date (yen) 4,225 3,840 Model used Black-Scholes Black-Scholes The fair value of the options granted on February 4, 2015 was 3,219 yen on a per-common-share per-common-share The expected volatility was derived from the historical volatility over a period similar to the expected life of the stock options for publicly listed companies that are comparable to the Company and the Group, and such volatility is assumed to be indicative of future trends, which may not necessarily be the actual outcome. v. The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from equity-settled share-based payment transactions 11,213 9,519 1,602 (2) Equity-settled Employee Stock Ownership Plan (J-ESOP) The Group has a Group policy, the Regulations on Stock Compensation, which regulates an incentive for the employees in line with the stock price movement and for the purpose of securing excellent human resources and their long-term success. In accordance with the Regulations on Stock Compensation, the Group has granted points equivalent to 262,069 shares to the employees of the Group on July 18, 2017. The points vest once the employees who received the points satisfy the conditions under the Regulations on the Stock Compensation. As the points vest, the trust grants the Company’s shares equivalent to the number of points, which the trust owns, to the employees of the Company and its domestic subsidiary. Under the Regulations on Stock Compensation, the employees granted the points on July 18, 2017 are required to be employed by the Group until the vesting dates, which are set between April 1, 2018 and April 1, 2020. i. Movements during the year ended December 31, 2017 The following table illustrates the movements in outstanding points during the year ended December 31, 2017: J-ESOP (Equity-settled) Number (Points (1) Outstanding at January 1, 2017 — Granted during the period 262,069 Forfeited during the period (10,767 ) Exercised during the period — Expired during the period — Outstanding at December 31, 2017 251,302 Exercisable at December 31, 2017 — (1) One point is equal to one share. ii. The Group’s J-ESOP iii. The fair value of the points issued on July 18, 2017 was the share price of the day the points were granted, 3,840 yen. iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from equity-settled share-based payment transactions — — 279 (3) Cash-settled Employee Stock Ownership Plan (J-ESOP) In accordance with the Regulations on Stock Compensation, the Group has granted points equivalent to 567,056 shares to the employees of the Group on July 18, 2017. The points vest once the employees who received the points satisfy the conditions under the Regulations on the Stock Compensation. As the points vest, the trust sells the shares of the Company which are equivalent to the number of points in the market and distributes the cash obtained from the transaction to the employees. Under the Regulations on Stock Compensation, the employees granted the points on July 18, 2017 are required to be employed by the Group until the vesting dates, which are set between April 1, 2018 and April 1, 2020. i. Movements during the year ended December 31, 2017 The following table illustrates the movements in outstanding points during the year ended December 31, 2017: J-ESOP (Cash-settled) Number (Points (1) Outstanding at January 1, 2017 — Granted during the period 567,056 Forfeited during the period (33,554 ) Exercised during the period — Expired during the period — Outstanding at December 31, 2017 533,502 Exercisable at December 31, 2017 — (1) One point is equal to one share. ii. The Group’s J-ESOP iii. The fair value of the points granted on July 18, 2017 as of the grant date and December 31, 2017 were 3,840 yen and 4,595 yen respectively. iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from cash-settled share-based payment transactions — — 805 v. The Group has recognized nil of liabilities associated with Cash-settled J-ESOP |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Related Party Transactions | 28. Related Party Transactions Note 30 Principal Subsidiaries provides information about the Group’s structure, including details of the subsidiaries and the parent company. The following table provides the total amount of outstanding balances and related party transactions entered into during 2015, 2016 and 2017. (1) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2015 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 1,127 160 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,139 (942 ) (1) LINE Plus and NAVER entered into an agreement for exchange of services in which LINE Plus provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 1,127 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2015. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (2) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2016 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 332 67 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 7,458 (902 ) (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 332 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2016. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (3) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2017 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 518 108 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,475 (976 ) Associate of the Group Snow Corporation Transfer of camera (4) 10,651 — Director of the Company Joongho Shin Exercise of stock (5) 6,922 — Director of the Company Hae Jin Lee Exercise of stock (5) 1,917 — (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 518 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2017. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (4) In May, 2017, LINE Plus Corporation transferred its camera application business to Snow Corporation. In exchange for the transfer of the business, LINE Plus Corporation received 208,455 newly issued common shares of Snow Corporation, and the transaction amount represents the fair value of the newly issued common shares received on the transaction date. Refer to Note 20 Supplemental Cash Flow Information for further details. (5) Stock options which had been issued with resolution at the meeting of board of director on December 17, 2012 and January 30, 2015, have been exercised. The transaction amount includes the amount paid in by exercising stock options during the year ended December 31, 2017. (4) The total compensation of key management personnel for the years ended December 31, 2015, 2016 and 2017, was as follows: (In millions of yen) 2015 2016 2017 Salaries (including bonuses) 315 459 739 Share-based payments (1) 5,286 5,714 928 Total 5,601 6,173 1,667 (1) Refer to Note 27 Share-Based Payments for further details. Key management personnel includes directors and corporate auditors of the Company. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Business Combinations | 29. Business Combinations Acquisition in 2015 Acquisition of MixRadio On March 16, 2015, the Group acquired MixRadio, a music streaming service, from Microsoft Mobile Oy. The acquisition of MixRadio allows the Group to expand the range of services. The Group determined that the acquisition of MixRadio is a business combination in accordance with IFRS 3, as the Group acquired inputs and processes, such as music rights and the trade name of MixRadio, with which principal activities have been commenced. The valuation of the fair values of the assets acquired and the liabilities assumed was completed as of December 31, 2015, and remained unchanged as compared to the preliminary assessment at the time of acquisition. The Group changed its strategic decision and decided to focus on its core LINE business and portal segment in the fourth quarter of 2015. As of December 31, 2015, the Group considered the abandonment of the MixRadio business to be probable. Therefore, as the future cash flows were expected to be negative, goodwill allocated to MixRadio CGU was fully impaired. Intangible assets with definite useful life and property and equipment were also fully impaired. As a result of the subsequent abandonment on March 21, 2016, the MixRadio was retrospectively classified as a discontinued operation in the Consolidated Statements of Profit or Loss. Refer to Note 23 Discontinued Operations for further details. Assets acquired and liabilities assumed The fair values of the identifiable assets and liabilities of MixRadio as of the date of acquisition were as follows: (In millions of yen) Fair value on Assets Property and equipment 39 Intangible assets Technology 845 Music rights 543 Trademarks 157 Customer relationships 109 Other intangible assets 4 1,697 Liabilities Trade and other payables 1,544 Other liabilities 552 2,096 Total identifiable net liabilities at fair value (399 ) Goodwill 2,698 Total consideration 2,299 The Group paid 2,299 million yen in cash, which was included as part of cash flows from investing activities in the Consolidated Statements of Cash Flows, and assumed certain liabilities in acquiring MixRadio. Goodwill of 2,698 million yen represented the value of expected synergies arising from the acquisition. As part of the business combination, the Group also acquired an assembled workforce from MixRadio. However, the assembled workforce did not meet the criteria for recognition as an intangible asset under IAS 38. All of the goodwill recognized is expected to be deductible for income tax purposes. From the date of acquisition, MixRadio has increased loss from discontinued operations, net of tax, of the Group by 7,588 million yen, which includes the impairments discussed in Note 11 (1), (3) Impairment. Because MixRadio was classified as a discontinued operation, revenues and expenses from continuing operations are not impacted. If the combination had taken place on January 1, 2015, the loss for the year would have been 8,827 million yen (unaudited) for the year ended December 31, 2015. Because MixRadio was classified as a discontinued operation, revenues and expenses from continuing operations are not impacted. Transaction costs of 74 million yen have been expensed and are included in “Other operating expenses” in the Consolidated Statements of Profit or Loss. Acquisition in 2016 Acquisition of M.T. Burn On February 29, 2016, the Group acquired 50.5% of the voting shares of M.T. Burn Inc., (“M.T. Burn”), an unlisted company based in Japan, specialized in developing and providing a native mobile advertising platform, “Hike”. M.T. Burn became a consolidated subsidiary. The Group acquired M.T. Burn for the purpose of enhancing the Group’s knowledge and technological capability for advertisement. The final purchase price allocation of M.T. Burn was completed in the second quarter of 2016. Assets acquired and liabilities assumed The identifiable assets and liabilities of M.T. Burn, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 87 Trade receivables 83 Customer relationships 401 Software 26 Deferred tax assets 88 Other assets 1 686 Liabilities Trade and other payables 78 Other financial liabilities, current 50 Other financial liabilities, non-current 210 Deferred tax liabilities 149 Other liabilities 13 500 Total identifiable net assets at fair value 186 Non-controlling (92 ) Goodwill 416 Total consideration 510 All consideration was paid in cash. The fair value of the trade receivables was 83 million yen. The gross contractual amounts of the trade receivables were not materially different from the fair value determined as part of the purchase price allocation. Non-controlling Goodwill of 416 million yen represented the value of expected synergies arising from the acquisition and was allocated entirely to the LINE business and portal segment. None of the goodwill recognized was expected to be deductible for income tax purposes. From the date of acquisition, M.T. Burn had contributed 252 million yen to revenue and had reduced profit from continuing operations of the Group by 1,305 million yen for the year ended December 31, 2016. If the combination had taken place on January 1, 2016, revenue for the Group would have been 140,841 million yen (unaudited) and profit from continuing operations for the Group would have been 9,076 million yen (unaudited) for the year ended December 31, 2016. Acquisition related transaction costs of 5 million yen have been expensed and are included in “Other operating expenses” in the Group’s Consolidated Statements of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (510 ) Net cash and cash equivalents acquired at the acquisition date 87 Net cash flows on acquisition (included in cash flows from investing activities) (423 ) Acquisition in 2017 Acquisition of NextFloor Group On July 24, 2017, the Group acquired 51.0% of the voting shares of NextFloor Corporation. (“NextFloor”), an unlisted company based in Korea, specializing in developing and publishing smartphone games. As a result of the acquisition, the Group obtained control, and NextFloor and its subsidiaries (“NextFloor Group”) became consolidated subsidiaries of the Group. The Group acquired NextFloor for the purpose of acquiring an organizational structure to develop and operate mainly middle core game contents. The valuation of the fair values of the assets acquired and the liabilities assumed was completed in the fourth quarter of 2017 and remained unchanged as compared the preliminary assessment at the time of acquisition. Assets acquired and liabilities assumed The identifiable assets and liabilities of NextFloor Group, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 1,946 Trade receivables 335 Other financial assets, current 307 Other financial assets, non-current 754 Property and equipment 145 Intangible assets Software 153 Publishing rights 1,640 Other intangible assets 277 Investments in associates 805 Other assets 320 6,682 Liabilities Trade and other payables 404 Other financial liabilities, current 123 Other financial liabilities, non-current 63 Deferred tax liabilities 391 Other liabilities 264 1,245 Total identifiable net assets at fair value 5,437 Non-controlling (2,664 ) Goodwill 3,154 Total consideration 5,927 All consideration was paid in cash except for the loan receivables of 1,976 million yen from NextFloor to the Group, which was converted into the common shares of NextFloor. The fair value of the trade receivables was 335 million yen. The gross contractual amounts of the trade receivables were not materially different from the fair value determined as part of the purchase price allocation. Non-controlling Goodwill of 3,154 million yen represented the value of expected synergies arising from the acquisition and was allocated entirely to the LINE business and portal segment. None of the goodwill recognized is expected to be deductible for income tax purposes. From the date of acquisition, NextFloor Group had contributed 1,058 million yen to the revenue of the Group and had reduced profit from continuing operations of the Group by 947 million yen. Transaction costs of 18 million yen have been expensed and are included in “Other operating expenses” in the Group’s Condensed Consolidated Statement of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,927 ) Debt equity swap 1,976 Net cash and cash equivalents acquired at the acquisition date 1,946 Net cash flows on acquisition (included in cash flows from investing activities) (2,005 ) Acquisition of FIVE Inc. On December 15, 2017, the Group acquired 100.0% of the voting shares of FIVE Inc. (“FIVE”), an unlisted company based in Japan, and FIVE became a consolidated subsidiary of the Group. FIVE is specialized in developing, selling and operating a video advertising platform for smartphones. The Group acquired FIVE for the purpose of utilizing FIVE’s technological capability and resources for video advertisement and enhancing the Group’s video advertising for LINE services such as “LINE Ads Platform”. The valuation of the fair values of the assets acquired and the liabilities assumed was completed in the forth quarter of 2017. Assets acquired and liabilities assumed The identifiable assets and liabilities of FIVE, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 231 Trade and other receivables, current 307 Other financial assets, non-current 10 Property and equipment 9 Technology 391 Other assets 7 955 Liabilities Trade and other payables 288 Other financial liabilities, current 50 Deferred tax liabilities 123 Other liabilities 44 505 Total identifiable net assets at fair value 450 Goodwill 4,996 Total consideration 5,446 All consideration was paid in cash. The fair value of the trade receivables was 306 million yen. The gross contractual amounts of the trade receivables were not materially different from the fair value determined as part of the purchase price allocation. Goodwill of 4,996 million yen represented the value of expected synergies arising from the acquisition and was allocated entirely to the LINE business and portal segment. None of the goodwill recognized was expected to be deductible for income tax purposes. From the date of acquisition, FIVE had contributed 68 million yen to the revenue of the Group and had reduced profit from continuing operations of the Group by 4 million yen. Transaction costs of 11 million yen have been expensed and are included in “Other operating expenses” in the Group’s Consolidated Statements of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,446 ) Net cash and cash equivalents acquired at the acquisition date 231 Net cash flows on acquisition (included in cash flows from investing activities) (5,215 ) If the business combinations of NextFloor Group and FIVE had taken place on January 1, 2017, revenue for the Group would have been 168,915 million yen (unaudited) and the profit from continuing operations for the Group would have been 6,701 million yen (unaudited) for the year ended December 31, 2017. Other business combinations There were no other significant business combinations for the year ended December 31, 2017. |
Principal Subsidiaries
Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
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Principal Subsidiaries | 30. Principal Subsidiaries Information on subsidiaries The Group has 53 consolidated subsidiaries. The significant subsidiaries of the Group include the following subsidiaries: Percentage of ownership Name Primary business Country of December 31, December 31, LINE Business Partners Corporation (1) Online advertisement Japan 100.0 % — LINE Fukuoka Corp. Management support Japan 100.0 % 100.0 % LINE Pay Corporation Software Development and mobile payment service Japan 100.0 % 100.0 % LINE Book Distribution Corporation Mobile Contents Japan 52.0 % 52.0 % LINE Ventures Corporation Investment Japan 100.0 % 100.0 % LINE GAME Global Gateway, L.P. Investment Japan 100.0 % 100.0 % LINE Life Global Gateway, L.P. Investment Japan 100.0 % 100.0 % LINE Mobile Corporation Mobile virtual network operator Japan 100.0 % 100.0 % M.T. Burn Corporation Online advertisement Japan 50.5 % 50.5 % Gatebox Inc. (2) IoT hologram technology development Japan — 51.0 % BALIE Corporation (3) LINE distributor Japan — 60.0 % STAIRS Corporation (4) Game Development Japan — 100.0 % LINE Friends Japan Corporation (5) Character goods business Japan — 100.0 % LINE TICKET Corporation (6) Electronic ticket service Japan — 51.0 % FIVE Inc. (7) Game Development Japan — 100.0 % LINE PLAY Corporation Content sales Korea 100.0 % 100.0 % LINE Plus Corporation Global marketing Korea 100.0 % 100.0 % LINE C&I Corporation Investment Korea 100.0 % 100.0 % LINE Biz Plus Corporation Mobile payment service Korea 100.0 % 100.0 % LINE Friends Corporation Character goods business Korea 100.0 % 100.0 % LINE Games Corporation (8) Game Development and Publishing Korea — 100.0 % NextFloor Corporation. (9) Game Development and Publishing Korea — 51.0 % LINE UP Corporation (10) Global Marketing Korea — 100.0 % LINE Digital Technology (Shanghai) Limited. Social Media China 100.0 % 100.0 % LINE Friends(Shanghai) Commercial Trade Co., Ltd. (11) Character goods business China — 100.0 % LINE Taiwan Limited Mobile Service Taiwan 100.0 % 100.0 % Line Biz+ Taiwan Limited Payment service Taiwan 100.0 % 100.0 % LINE BIZ+ PTE. LTD. Software Development and mobile payment service Singapore 100.0 % 100.0 % LINE Company (Thailand) Limited (12) e-commerce Thailand 50.0 % 50.0 % LINE Euro-Americas Corp. Global marketing United States of America 100.0 % 100.0 % LINE Friends Inc. (13) Character goods business United States of America — 100.0 % MixRadio Limited Music distribution United Kingdom of Great Britain and Northern Ireland 100.0 % 100.0 % LINE Vietnam Co., Ltd (14) Online advertisement Vietnam 95.0 % 100.0 % PT. LINE PLUS INDONESIA Marketing Indonesia 99.8 % 99.9 % (1) LINE Business Partners Corporation was merged with LINE Pay Corporation in December 2017 (2) The Company acquired Gatebox Inc. (renamed from vinclu Inc. in July 2017) in April 2017, resulting in the 51.0% ownership. (3) LINE Business Partners acquired the shares of BALIE Corporation in July 2017, followed by the merger of LINE Business Partners by LINE Pay Corporation in December 2017. As a result, the Group’s has 60.0% ownership of BALIE Corporation (4) LINE Games Corporation acquired the shares of NextFloor Corporation. in July 2017, resulting in the Group’s 51.0% ownership. Additionally, in October, 2017, LINE Games Corporation acquired shares of STAIRS Corporation from NextFloor Corporations., resulting in an increase of the Group’s ownership in STAIRS Corporation from 51.0% to 100.0%. (5) The Company established LINE Friends Japan Corporation and transferred its LINE Friends store business to LINE Friends Japan Corporation in September 2017. (6) The Company established LINE TICKET Corporation with third-parties in September 2017, resulting in the 51.0% ownership of LINE TICKET Corporation by the Company. (7) The Company acquired shares of FIVE Inc., resulting in FIVE Inc.to become a wholly owned subsidiary of the Group. (8) The Company established LINE Games Corporation in June 2017. (9) LINE Games Corporation acquired the shares of NextFloor Corporation. in July 2017, resulting in the Group’s 51.0% ownership. (10) LINE Plus Corporation established LINE UP Corporation and transferred its game development business to LINE UP Corporation in November 2017. (11) LINE Friends Corporation established LINE Friends (Shanghai) Commercial Trade Co., Ltd. in March 2017. (12) The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consolidation for the Group’s consolidated financial statements. (13) LINE Friends Corporation established LINE Friends America, LLC in February 2017 and renamed it as LINE Friends Inc. in May 2017. (14) LINE Plus Corporation acquired additional shares of LINE Vietnam Co., Ltd. in March 2017 from a third party, resulting in an increase of the Group’s ownership in LINE Vietnam Co., Ltd. from 95.0% to 100.0%. Ultimate parent company of the Group The next senior and the ultimate parent company of the Group is NAVER, which is domiciled in Korea and listed on the Korean Stock Exchange. |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
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Investments in Associates and Joint Ventures | 31. Investments in Associates and Joint Ventures (1) Details of investments in the Group’s significant associates and joint ventures are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Primary business activities Country of Percentage Carrying Percentage Carrying Associates LINE Project Production Partnership Animation production Japan 50.0 % — 50.0 % — Collab+LINE LLC Investment United States of America 50.0 % 133 50.0 % 130 Epic Voyage, Inc. Mobile games Japan 30.0 % 3 30.0 % 3 Green Monster, Inc. (1) Mobile games Japan 35.0 % — — — LINE MUSIC Corporation Music distribution Japan 33.4 % 413 33.4 % 47 AUBE, Ltd. Job listing Japan 49.0 % 340 49.0 % 334 transcosmos online communications inc. (2) Customer service Japan 40.0 % 42 37.1 % 121 NPLE GAMES Co., Ltd. Mobile games Korea 14.8 % 69 43.5 % 457 Yume no Machi Souzou Iinkai Co., Ltd. Delivery portal site Japan 22.0 % 3,973 22.0 % 3,865 Snow Corporation (3) Mobile app Korea 25.0 % 4,387 45.0 % 12,998 K-Fund (4) Investment France — % — 25.0 % 1,388 Orfeo SoundWorks Corporation (5) Earphone technology Korea — % — 20.7 % 154 Oozoo Inc. (6) Game Development Korea — % — 44.5 % 247 Nano Interactive Inc. (7) Game Development Korea — % — 35.5 % 54 Motif Co.,Ltd. (8) Game Development Korea — % — 41.5 % 207 Skeinglobe Corporation (9) Game Development Korea — % — 28.7 % 108 Joint ventures Lantu Games Limited Mobile games Hong Kong 50.0 % 1,025 50.0 % 394 RABBIT-LINE PAY COMPANY LIMITED Payment service Thailand 50.0 % 2,327 50.0 % 2,121 Drama & Company (10) Software Development Korea — % — 37.2 % 2,216 (1) In September 2017, the Company disposed all of the shares of Green Monster, Inc., as Green Monster Inc. was liquidated. (2) In October 2017, the Company’s ownership in transcosmos online communications inc., decreased from 40.0% to 37.1% as a result of the issuance of new shares by transcosmos online communications inc. (3) In May 2017, the Group transferred its camera application business, which was a part of LINE Plus Corporation, to Snow Corporation. In exchange for this transfer, Snow Corporation newly issued common stocks for LINE Plus Corporation and the Group has acquired common shares of Snow Corporation. As a result, the share of the Group increased from 25.0% to 48.6%. In August 2017, the Company and NAVER injected capital to Snow Corporation 984 million yen and 3,938 million yen, respectively. As a result, the share of the Group decreased from 48.6% to 45.0%. Refer to Note 20 Supplemental Cash Flow Information for further details. (4) In January 2017, LINE Plus Corporation and NAVER established K-Fund start-up K-Fund K-Fund K-Fund K-Fund (5) In June 2017, LINE Friends Corporation acquired a 20.7% interest in Orfeo SoundWorks Corporation (“Orfeo SoundWorks”) to develop and sell products with Orfeo SoundWorks’s technology such as earphones and headsets. As the Group has significant influence over Orfeo SoundWorks, the Group accounts for its ownership in Orfeo SoundWorks using the equity method. (6) In July 2017, LINE Games Corporation acquired NextFloor Corporation., and NextFloor Corporation owns a 44.5% interest in Oozoo Inc., a game developing company. As the Group has significant influence over Oozoo Inc., the Group accounts for its ownership in Oozoo Inc. using the equity method. (7) In July 2017, LINE Games Corporation acquired NextFloor Corporation., and NextFloor Corporation owns 35.5% interest in Nano Interactive Inc., a game developing company. As the Group has significant influence over Nano Interactive Inc., the Group accounts for its ownership in Nano Interactive Inc. using the equity method. (8) In November 2017, LINE Games Corporation acquired a 41.5% interest in Motif Co., Ltd., which provides game planning and development services. As the Group has significant influence over Motif Co., Ltd., the Group accounts for its ownership in Motif Co., Ltd. using the equity method. (9) In December 2017, LINE Games Corporation acquired a 28.7% interest in Skeinglobe Corporation, which provides a mobile game planning and development service. As the Group has significant influence over Skeinglobe Corporation, the Group accounts for its ownership in Skeinglobe Corporation using the equity method. (10) In November 2017, LINE Plus Corporation acquired a 37.2% interest in Drama & Company, which provides software planning and development services such as a business card management service, ”REMEMBER”. As the Group has significant influence over Drama & Company was accounted for as a joint venture under the equity method as the Group has joint control of the entity under the shareholders agreement. (2) Financial information on the Group’s investment in the associates is summarized as follows: (In millions of yen) Snow Corporation December 31, December 31, Current assets 4,365 2,469 Non-current 1,493 17,213 Current liabilities 506 1,180 Non-current 641 2,678 Equity 4,711 15,824 Proportion of the Group’s ownership 25.0 % 45.0 % Group’s share of equity 1,178 7,121 Goodwill and other adjustments 3,209 5,877 Carrying amount of the interests 4,387 12,998 Snow Corporation 2015 2016 2017 Revenue — — 271 Loss for the year from continuing operations — (952 ) (10,348 ) Other comprehensive income for the year, net of tax — — 131 Total comprehensive loss for the year, net of tax — (952 ) (10,217 ) Group’s share of loss for the year — (238 ) (4,531 ) (3) The aggregate amount of individually immaterial associates accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Current assets 6,273 10,699 Non-current 6,875 7, 762 Current liabilities 3,131 4,025 Non-current 2,074 1,683 Equity 7,943 12,753 Group’s share of equity 2,127 3,368 Unrecognized loss (1) 116 — Goodwill 2,730 3,747 Carrying amount of the interests 4,973 7,115 2015 2016 2017 Revenue 1,108 6,322 12,657 Loss for the year from continuing operations (242 ) (1,642 ) (3,050 ) Other comprehensive income for the year, net of tax 31 2 84 Total comprehensive loss for the year, net of tax (211 ) (1,640 ) (2,966 ) Unrecognized loss (1) — 116 — Group’s share of loss for the year (78 ) (386 ) (831 ) (1) Since the Company’s share of losses in one of these individually immaterial associates exceeded the interest in that associate, the Company has discontinued recognizing its share of further losses. The Group had no contingent liabilities or capital commitments relating to its associates as of December 31, 2016 and 2017. The Group had outstanding payment for capital commitments of nil and 5,796 million yen relating to associates above capital commitments as at December 31, 2016 and 2017, respectively. (4) The aggregate amount of individually immaterial joint ventures accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, 2016 December 31, 2017 Current assets (1) 4,942 5,237 Non-current 29 227 Current liabilities (2) 192 1,342 Non-current 7 44 Equity 4,772 4,078 Group’s share of equity 2,386 1,795 Goodwill 966 2,936 Carrying amount of the interests 3,352 4,731 2015 2016 2017 Revenue — 39 366 Depreciation and amortization — (4 ) (19 ) Interest income — 25 37 Interest expense — — (17 ) Loss for the year from continuing operations — (417 ) (2,211 ) Other comprehensive income for the year, net of tax — — 81 Total comprehensive loss for the year, net of tax — (417 ) (2,130 ) Group’s share of loss for the year — (209 ) (959 ) (1) Including cash and cash equivalents of 2,251 million yen and 1,863 million yen as of December 31, 2016 and 2017, respectively. (2) Including current financial liabilities excluding trade and other payables and provisions of nil as of December 31, 2016 and 2017. The joint ventures had no contingent liabilities or capital commitments as at December 31, 2016 and 2017, respectively. The Group’s joint ventures cannot distribute its profits without the consent from the venture partners. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
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Subsequent Events | 32. Subsequent Events Deconsolidation of a subsidiary into an associate Based on the resolution at the meeting of the board of directors on January 31, 2018, the Group entered into an agreement with a third party in regard to the Group’s mobile communication service. Based on this agreement, LINE Mobile Corporation which is a subsidiary of the Company, entered into an agreement to allot its new shares to the third party on March 20, 2018. The procedures of the third-party allotment are expected to be completed on April 2, 2018. Upon completion of the third-party allotment, the Group’s ownership of LINE Mobile Corporation will decrease from 100.0% to 49.0%, resulting in LINE Mobile Corporation to be accounted for as an associate under the equity method. Establishment of operating segments Based on the resolution at the meeting of the board of directors on January 31, 2018, the Group determined to establish two operating segments, “Core business segment” and “Strategic business segment”, due to the expansion of its business and to monitor the operating results based on the operating segments. Core business segment mainly includes LINE Stickers, LINE advertising and LINE Games. Strategic business segment mainly includes Fin Tech and AI. |
Significant Accounting Polici39
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Basis of Consolidation | (1) Basis of Consolidation The consolidated financial statements include the accounts of the Group, which are directly or indirectly controlled. Control is generally conveyed by ownership of the majority of voting rights. The Group controls an entity when the Group has power over the entity, is exposed, or has rights, to variable returns from the involvement with the entity and has the ability to affect those returns through its power over the entity. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. If the end of the reporting period of a subsidiary differs from that of the Company, the subsidiary prepares, for the purpose of preparing consolidation financial statements, additional financial statements as of the same date as the consolidated financial statements of the Group. Non-controlling non-controlling non-controlling non-controlling On February 12, 2016, the board of directors approved the abandonment of the MixRadio service (“MixRadio”) segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. Intercompany balances and transactions have been eliminated upon consolidation. |
Basis of Measurement | (2) Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value, which is the price that would be received to sell such financial instruments or paid to transfer the related liability in an orderly transaction between market participants at the measurement date. |
Business Combinations | (3) Business Combinations (a) Business combinations In accordance with IFRS 3 Business Combinations, – Deferred tax assets or liabilities which are recognized and measured in accordance with IAS 12 Income Taxes; and – Employee benefit arrangements which are recognized and measured in accordance with IAS 19 Employee Benefits Leases and insurance contracts are classified on the basis of the contractual terms and other factors at the inception of the contract or at the date of modification, which could be the acquisition date if the terms of the contract have been modified in a manner that would change its classification. Contingent liabilities assumed in a business combination are recognized when such liabilities are present obligations and their fair value can be measured reliably. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree and the equity interests issued by the acquirer. Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed in the periods in which the costs are incurred and the services are received. The Group measures goodwill at the acquisition date as: – the fair value of the consideration transferred; plus – the recognized amount of any non-controlling – if the business combination is achieved in stages, the fair value of the pre-existing – the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses. (b) Business combinations under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and in which control is not transitory. The Group has accounted for the acquisition of business combination under common control based on the carrying amounts recorded in the consolidated financial statements of the acquired companies. The financial statements of acquired companies have been retrospectively consolidated as part of the Group’s consolidated financial statements as if the acquisition of acquired companies had occurred on the date of its original acquisition by the common control group, regardless of the actual date of acquisition by the Group. |
Associates and Joint Arrangements | (4) Associates and Joint Arrangements (a) Associates An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity, unless it can be clearly demonstrated that it is not the case. The Group’s investments in associates are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost and the carrying amount is adjusted to recognize the Group’s share of the profit or loss and changes in equity of the associate after the date of acquisition. Gains and losses from transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Intra-group losses are recognized as an expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements. If an associate uses accounting policies different from those of the Group for like transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method. When the Group’s share of losses exceeds its interest in associates, the carrying amount of that interest, including any long-term investments, is reduced to nil and the recognition of further losses is discontinued. (b) Joint arrangements A joint arrangement is an arrangement in which two or more parties have joint control. The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in joint operations in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint ventures are accounted for using the equity method. |
Foreign Currencies | (5) Foreign Currencies (a) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate. Non-monetary Non-monetary Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of available-for-sale (b) Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency at the average foreign exchange rates for the reporting period. Foreign currency differences are recognized in other comprehensive income. When a foreign operation is disposed of, the relevant amount after the translation is reclassified to profit or loss as part of profit or loss on disposal. In the event that a partial disposal does not lead to a loss of control in a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling |
Cash and Cash Equivalents | (6) Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments with maturity dates that are within three months from the purchase dates. Such investments are highly liquid and readily convertible to known amounts of cash. Cash and cash equivalents are subject to an insignificant risk of changes in value, and are used by the Group in managing its short-term commitments. |
Financial Assets | (7) Financial Assets The Group classifies and measures financial assets based on the following four categories: financial assets at fair value through profit or loss; held-to-maturity available-for-sale Upon initial recognition, financial assets are measured at their fair value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition. Regular way purchases or sales of financial assets, i.e. purchases or sales under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned, are accounted for at the trade date. (a) Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (b) Held-to-maturity Financial assets with fixed or determinable payments and fixed maturities, for which the Group has the positive intention and ability to hold to maturity, are classified as held-to-maturity held-to-maturity (c) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, except for loans and receivables for which the effect of discounting is immaterial. (d) Available-for-sale Available-for-sale held-to-maturity Dividends on an available-for-sale (e) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts, to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured Derivative financial instruments embedded in non-derivative (f) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. |
Financial Liabilities | (8) Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. The Group derecognizes a financial liability from the Consolidated Statements of Financial Position when it is extinguished (i.e. when the obligation specified in the contract is discharged, canceled or expires). |
Inventories | (9) Inventories Inventories, consisting of merchandise for resale, are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out |
Share Capital | (10) Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and stock options are recognized as a deduction from equity, net of any tax effects. |
Treasury Shares | (11) Treasury Shares Treasury shares are measured at costs and deducted from equity. No gain or loss is recognized on the purchase, sales, or cancellation of the Company’s treasury shares. The difference between the book value and consideration received at the times of sales is recognized in equity. |
Property and Equipment | (12) Property and Equipment Property and equipment are measured and recognized at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Cost includes any other costs directly attributable to bring the assets to a working condition for their intended use and the costs of dismantling and removing the assets and restoring the site on which they are located. The cost of replacing a part of property and equipment is included in the carrying amount of the asset or recognized as a separate asset, as necessary, if it is probable that the future economic benefits embodied within the part will flow into the Group and if the cost can be reliably measured. Accordingly, the carrying amount of the replaced part is derecognized. The costs of day to day servicing of property and equipment are recognized in profit or loss as incurred. Land and assets held within construction-in-progress Gains or losses arising from the derecognition of an item of property and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other operating income or expenses. The estimated useful lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3–5 Furniture and fixtures 3–5 Others 3–5 Depreciation methods, useful lives and residual values are reviewed at each fiscal year-end |
Borrowing Costs | (13) Borrowing Costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are expensed as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset, which is the effective interest rate of the general borrowing. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period. No borrowing costs were capitalized during the years ended December 31, 2016 and 2017. |
Intangible Assets | (14) Intangible Assets Intangible assets are initially measured at cost, and carried at cost less accumulated amortization and accumulated impairment losses after initial recognition. Within intangible assets with finite lives, customer relationships are amortized by the declining balance method and other intangible assets with finite lives are amortized mainly using the straight-line method over the useful lives of the respective assets as provided below. Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The residual value of intangible assets is assumed to be zero. The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Software 2–10 Customer relationships 7 Domain name 20 Others 1–10 The amortization periods and methods for intangible assets with finite useful lives are reviewed at each fiscal year-end. Research and development Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. No development expenditure was capitalized for the years ended December 31, 2015, 2016 and 2017. |
Leases | (15) Leases Lease Transactions The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. In the event that fulfillment of the arrangement is dependent on the use of specific assets or the arrangement transfers a right to use the asset, such assets are defined as a lease transaction. (a) Finance Leases Leases that transfer substantially all risks and benefits of ownership of the leased item to the lessee are classified as finance leases. Group as lessee Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine; if not, the lessee’s incremental borrowing rate shall be used. The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. A leased asset is depreciated over the shorter of the estimated useful life of the asset or the lease term. (b) Operating Leases All lease arrangements, except finance leases that have been capitalized in the Consolidated Statements of Financial Position, are classified as operating leases. Group as lessee For operating lease transactions, lease payments are recognized as an expense using the straight-line method over the lease term in the Consolidated Statements of Profit or Loss. Group as lessor The Group had cancelable lease contracts related to servers, data storage, network equipment, personal computers and software with third parties for the years ended December 31, 2015, 2016 and 2017. The leased assets are included in “Property and equipment” in the Consolidated Statements of Financial Position and are depreciated over their expected useful lives on a basis consistent with similar assets included in property and equipment. Income from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term. |
Impairment of Financial Assets | (16) Impairment of Financial Assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that financial assets, including equity securities, are impaired can include significant financial distress of issuers of financial assets or debtors, default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security, or the existence of observable data that shows the negative effect on expected future cash flows of the group of financial assets after the initial recognition can be reliably estimated, though the decrease in expected future cash flows of individual financial assets cannot be reliably estimated. In addition, for an investment in an equity security classified as an available-for-sale If financial assets have objective evidence that they are impaired, impairment losses are measured and recognized. (a) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. If it is not practicable to obtain the instrument’s estimated future cash flows, impairment losses are measured by using prices from any observable current market transactions. The Group can recognize impairment losses directly or establish a provision to cover impairment losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting an allowance account. Financial assets are directly written off when there is no realistic prospect of future recovery. (b) Available-for-sale While other evidence and indicators are taken into consideration, generally, when the fair value of an available-for-sale available-for-sale available-for-sale available-for-sale available-for-sale |
Impairment of Non-financial Assets | (17) Impairment of Non-financial Assets The Group’s non-financial non-current If it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of the cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less costs to sell. The value in use is estimated by applying a pre-tax pre-tax An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill Goodwill acquired in a business combination is, from the acquisition date, allocated to each CGU that is expected to benefit from the synergies arising from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Impairment losses are recognized in profit or loss, and impairment losses recognized for goodwill are not reversed in subsequent periods. On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. |
Employee Compensation | (18) Employee Compensation (a) Short-term employee compensation Short-term employee compensations are employee compensations that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. The undiscounted short-term employee compensations are accounted for on an accrual basis over the period in which employees have provided the services. (b) Defined benefit plans The Group has defined benefit plans for employees of subsidiaries located in Korea, Taiwan and Thailand. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s obligation represents the estimated amount of future benefits that employees have earned in return for their services in the current and prior periods. The calculation is performed annually by an independent actuary using the projected unit credit method. The calculation is reviewed and approved by the management of the Group. The assets or the liabilities relating to the defined benefit plans were recognized in the Consolidated Statement of Financial Position as the present value of obligations as of the reporting date, excluding the fair value of plan assets. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost, which is the change in the present value of the defined benefits obligation for employee services in prior periods, resulting in the current period from the introduction of, or change to post-employment benefits, is recognized in full in profit or loss in the period in which the plan amendment occurs. Remeasurement of the net defined benefit liability is mainly comprised of actuarial gains and losses resulting from experience adjustments and the effects of changes in actuarial assumptions. Experience adjustments are the effects of differences between the previous actuarial assumptions and what has actually occurred. The Group recognizes all remeasurements of the net defined benefit liability in other comprehensive income when incurred. The discount rate used in the present valuation calculation is the yield at the reporting date on high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Net interest on the net defined benefit liability is determined by multiplying the net defined benefit liability by the discount rate noted above, taking account of any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Interest on the net defined benefit liability is recognized in profit or loss. (c) Defined contribution plans The Group has defined contribution plans for employees of subsidiaries located in Korea. The contribution relating to the plans is recognized as expense when incurred. |
Share-based Payments | (19) Share-based Payments The Group has granted stock options to directors and employees. The fair values of the stock options are measured at the grant dates. Compensation expenses related to stock options are recognized over the vesting period. Refer to Note 4 Significant Accounting Judgments, Estimates and Assumptions and Note 27 Share-based Payments for more details on the valuation methodology of stock options and the assumptions used in such valuation. The Group has introduced equity-settled Employee Stock Ownership Plan (J-ESOP) The Group has introduced cash-settled Employee Stock Ownership Plan (J-ESOP) |
Marketing Expenses | (20) Marketing Expenses The Group incurs marketing expenses to increase brand awareness and to promote the launch of new services. The Group’s marketing expenses are primarily related to advertising in mass media, namely television advertising and advertising on mobile applications, and expenses incurred for brand promotional events. Marketing personnel compensation expenses are not included in marketing expenses, and are recorded as part of the employee compensation expenses. Expenditures related to marketing activities are recognized as expenses when incurred. |
Provisions | (21) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. There are uncertainties about the amount and timing of the cash outflows related to provisions. The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The Group’s provisions mainly comprise provision for restoration obligations for leased property, and the provision for the licensing expense payable to the third-party partners upon redemption of free promotional virtual credits upon exchange with virtual items by customers in the future. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. A provision may only apply to expenditures for which the provision was originally recognized. |
Revenue | (22) Revenue The Group mainly operates a cross-platform messenger application, LINE, and provides communication and content sales and advertising services. Communication and content sales are primarily made to end users in the form of communication products such as LINE Stickers, and content such as LINE Games. Advertising services are provided on the LINE platform through advertising products such as LINE Official Accounts and Sponsored Stickers, as well as the Group’s web portals, livedoor and NAVER Matome. Refer to Note 5 Segment Information for more details on product lines and services provided. The Group recognizes revenues associated with the transactions by reference to the stage of completion of the transactions at the end of the reporting period. Determination of the stage of completion for the different revenue streams is described below. Revenue is measured at the fair value of the consideration of services provided in the ordinary course of business, less applicable sales and other taxes, where appropriate. Virtual Credits Virtual credits, which are the prepaid payment instruments may be purchased with credit cards or cash. Depending on the type of service, end users may make payments using cash, credit cards or the virtual credits issued by the Group. Most of the end-user LINE business and portal (i) Communication—LINE Stickers and Creator Stickers LINE Stickers and Creator Stickers are emoticons that end users may purchase and use in instant messaging. Payments may be made with cash, virtual credits, LINE Points or credit cards. When virtual credits are redeemed for the purchase of Stickers, virtual credits’ balances of the end users are reduced by the price of the purchase, and the electronic credits redeemed are recognized as revenues over the revenue recognition period for Stickers. The Group acts as a principal in providing LINE Stickers and Creator Stickers to end users. Based on historical usage patterns tracked by the Group, the Group determined that a substantial majority of total expected usage of Stickers by end users occurred over 90 days from purchase, with actual usage concentrated during the earlier part of this period. Accordingly, the Group recognizes Stickers revenues over an estimated usage period of 90 days and on an accelerated basis within such period. (ii) Content—LINE Games and Applications – Games developed by third-party game developers All games developed by third-party game developers are free to download from the LINE platform. End users may purchase in-game The Group enters into revenue sharing arrangements with the third-party game developers. The terms of such arrangements provide that when end users purchase in-game With respect to the sale of in-game in-game The Group views the third-party game developers to be its customers, and the Group’s deliverables to its customers over the term of the game are: 1) channeling users to the mobile games, 2) providing payment processing services, and 3) providing server hosting services. The Group determined that each deliverable was a separate unit of account and it estimates the selling price of payment processing services and server hosting services based on cost plus margin, taking into consideration historical cost and industry profit margin range. The Group then allocates any residual amount to services for channeling users to the mobile games. The Group’s performance obligations with respect to channeling services are fulfilled at the time that the in-game Game termination announcements are made by sending notifications to end users two months prior to game termination. Once the game termination announcement is made, in-game The Group’s performance obligations with respect to the hosting services and payment processing services are fulfilled as such services are provided, i.e., from game inception through game termination, and from game inception through one month subsequent to game termination, respectively. Accordingly, the revenues attributable to the hosting services and payment processing services are recognized ratably over the service periods as described above. However, as the Group does not generate revenues subsequent to the announcement of game termination, the Group defers the revenue attributable to the post-termination-announcement performance obligations for hosting services and payment processing services from the amounts received in the first month of the arrangement, and recognizes such revenues over the two and three months, respectively, following the announcement of game termination. The Group began providing third party games on its platform in 2012. As of December 31, 2017, the average life of third party games, which included both active and terminated third party games, was approximately 19 months. For the year ended December 31, 2017, on average, server hosting services revenues were recognized ratably over approximately 19 months, while payment processing services revenues were recognized ratably over approximately 20 months. – Internally developed games and applications The Group also provides games and applications (“apps”) developed internally for end users, and considers itself the principal in providing the games or apps to end users. The Group’s primary responsibility is to develop, maintain and provide the games and apps, and in-game/in-app in-game/in-app A durable virtual item represents an item that provides the end user with continuing benefits. The period of benefit of a durable virtual item generally ends at the earliest of 1) an item ceasing to provide further benefits to an end user (i.e., the period of benefit is represented by the usage period of such item), 2) an item being removed from the game board or app, by specific in app/in-game The estimated usage period for durable virtual items is developed by taking into consideration historical data on purchase patterns and user usage behavior. The Group recognizes revenues through the estimated usage period for durable virtual items in one of the internally developed games. For the year ended December 31, 2015, the usage periods were estimated to be several days and the sales generated by such durable items were immaterial. For the year ended December 31, 2016, the usage periods were estimated to be several days and the sales generated by such durable items were immaterial. For the year ended December 31, 2017, the usage periods were estimated to be several days and the sales generated by such durable items were immaterial. The Group defines the playing period as the period from when a paying user first purchased virtual credits to when a paying user is deemed to have become inactive, i.e. when a paying user has not logged onto the game/app for two consecutive months. To estimate the average playing period for a paying user, the Group analyzes monthly cohorts composed of paying users who made their first purchase of payment instruments during such month. The Group tracks these monthly cohorts and analyzes the dates on which paying users within each cohort become inactive. Based on the actual data observed, the Group extrapolates the future declines in paying users to determine the ending point of a paying user’s life beyond the date for which observable data is available. The Group then uses the actual and extrapolated data to calculate the average playing period. The Group recognizes revenues arising from internally developed apps by using the estimated average playing periods. For the years ended December 31, 2015, 2016 and 2017, the estimated average playing periods ranged from approximately 11 months to 21 months, 8 months to 28 months and 2 months to 30 months, respectively. Revenue attributable to the durable virtual items removed from the game board or app is recognized by developing estimated removal rates, i.e. the rates at which durable virtual items are being removed from the game board or app by end users, and applying such rates to total sales generated from durable virtual items. Upon launching a new game/app, the Group evaluates the nature of the virtual items, the behavior of end users with respect to such items and the availability of supporting data in determining the related revenue recognition policy. The Group may also consider other existing internally developed games/apps data and industry data in determining the related revenue recognition policy if insufficient history has been developed for such new game/app. In the situation where the Group does not have sufficient data to analyze user behavior, and cannot identify any similar games/apps to serve as references for the Group to reasonably estimate the life of the game/app, the Group defers all sales until such history is developed. Once sufficient history is developed, the Group assesses the estimations (such as the estimated usage period and the estimated average playing period for paying users), for durable virtual items quarterly on a game/app by game/app basis. In Q2’2015, the Group launched an internally developed game for which it had insufficient data to reasonably estimate the average playing period until the beginning of Q4’2015. Accordingly, for the purposes of recognizing revenue for this game, for the quarters ended June 30, 2015 and September 30, 2015, the Group recognized revenue based on the estimated average playing period of another game with similar characteristics. Beginning of Q4’2015, the Group determined that it had sufficient history to reasonably estimate the average playing period for such game. Accordingly, the Group began recognizing revenues for virtual items which continued to be available to end users over the average playing period for this game. For the year ended December 31, 2016, the Group had one internally developed game for which it had insufficient data to reasonably estimate the average playing period until the beginning of Q2’2016. Accordingly, for the purpose of recognizing revenue for this game, for the quarters ended March 31, 2016, the Group deferred all the revenue arising from sales of durable virtual items and only recognized revenue attributable to the consumable virtual items. Beginning of Q2’ 2016, the Group determine that it had sufficient history to reasonably estimate the average playing period for such game. Accordingly, the Group began recognizing revenues for durable virtual items which continued to be available to end users over the average playing period for this game. Also, in Q3’2016, the Group launched an internally developed game for which it has insufficient data to reasonably estimate the average playing period until the end of Q4’2016. Accordingly, for the purpose of recognizing revenue for this game, the Group only recognized revenue attributable to the sales of consumable virtual items and deferred all the revenue arising from sales of durable virtual items. For the year ended December 31, 2017, the Group has recognized revenues for virtual items which continued to be available to end users over the average playing period for this game, as it has sufficient history to reasonably estimate the average playing period for all internally developed games. (iii) Others Others mainly includes revenue from the sales of LINE character merchandise. Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and trade discounts. (iv) LINE advertising—Official Accounts, Sponsored Stickers, LINE Points (formerly, Free LINE Coins service), Timeline Ads and LINE NEWS Ads. LINE Official Accounts enable businesses and celebrities to send messages directly to LINE users who have added them as friends. The Group recognizes Official Accounts subscription revenues ratably over the advertising contract periods. In addition, advertisers with Official Accounts may offer Sponsored Stickers to LINE users, who may download them for free. Similar to the user usage pattern of LINE Stickers, the total Sponsored Stickers usage was also observed to be significantly weighted towards the earlier part of the usage period. Accordingly, the Group recognizes Sponsored Stickers revenue on an accelerated basis over a 208-day Free LINE Coins service is a pay-per-action LINE advertising also includes Timeline Ads and other services such as LINE NEWS Ads. The Group has contractual relationships with advertisers for actions such as advertising impressions, views and clicks. Advertising revenues are recognized when these performance obligations are fulfilled. (v) Portal advertising The Group provides advertising services through its web portals, livedoor and NAVER Matome. The Group recognizes web portal advertising revenues ratably over the advertising contract periods. |
Finance Income and Finance Costs | (23) Finance Income and Finance Costs Finance income mainly comprises interest income from time deposits and held-to-maturity Finance costs comprise interest expense on borrowings and unwinding of the discount on provisions. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. |
Other Non-operating Income and Expenses | (24) Other Non-operating Other non-operating available-for-sale Other non-operating available-for-sale |
Income Taxes | (25) Income Taxes Income tax expenses comprise current and deferred tax. Current tax and deferred tax are recognized in profit or loss, except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. (a) Current tax Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable non-deductible (b) Deferred tax Deferred tax is recognized using the asset-liability method in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income. The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow, in a manner that the Group expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied on the same taxable entity by the same tax authority. |
Earnings per Share | (26) Earnings per Share The Group presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to the holders of common shares of the Company by the weighted average number of common shares outstanding during the year, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to the holders of common shares and the weighted average number of common shares outstanding, adjusted for own shares held, for the effects of all dilutive potential common shares, such as stock options granted to directors and employees of the Group. Potential common shares are antidilutive when their conversion to common shares would increase earnings per share or decrease loss per share from continuing operations. The calculation of diluted earnings per share does not assume conversion, exercise, or other issue of potential common shares that would have an antidilutive effect on earnings per share. |
Operating Segments | (27) Operating Segments The Group identifies operating segments based on the internal report regularly reviewed by the Group’s Chief Operating Decision Maker to make decisions about resources to be allocated to segments and assess performance. An operating segment of the Group is a component for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the Company’s board of directors. |
Discontinued Operations and Non-current Assets Held for Sale | (28) Discontinued Operations and Non-current Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for sale or has been disposed of, if the component either (1) represents a separate major line of business or geographical area of operations and (2) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or (3) is a subsidiary acquired exclusively with a view to resale. The Group determined to dispose its MixRadio business in February 2016. In the Consolidated Statements of Profit or Loss, income from the discontinued operations is reported separately from loss from continuing operations; prior periods are presented on a comparable basis. The cash flows from discontinued operations are presented in Note 23 Discontinued Operations. References made to the Consolidated Statements of Profit or Loss, except for those noted in Note 23 Discontinued Operations, are related to continuing operations. In the event that certain non-current non-current Non-current Non-current |
Standards Issued but not yet Effective | (29) Standards Issued but not yet Effective The standards and interpretations that are issued but not yet effective as of December 31, 2017 are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective. – IFRS 9 Financial Instruments The IASB issued the final version of IFRS 9 Financial Instruments non-financial so-called The Group has determined not to early adopt the standard, and IFRS 9 will be applied from the year ending December 31, 2018. Also, the Group has assessed the impacts of IFRS 9’s adoption on the Consolidated Financial Statement of the Group is immaterial. – IFRS 15 Revenue from Contracts with Customers The IASB issued IFRS 15 Revenue from Contracts with Customers The Group recognizes revenue associated with communication and content sales and with advertising services by reference to the stage of completion. These transactions are satisfied over time and measured by the progress towards complete satisfaction of performance obligations. The Group has assessed that most of the method currently used to measure the progress towards complete satisfaction of these performance obligations will continue to be appropriate under IFRS 15 with some following exceptions. The Group does not intend to early adopt the standard as it plans to apply from the fiscal year of 2018. Even though the Group disclosed in its 2016 financial statements that the Group intended to use the full retrospective method upon adoption, due to the costs of applying such method, the Group has determined to use the modified retrospective method which is to record cumulative amount of the impact at the beginning balance of the retained earnings upon adoption. The Group has completed the assessment of impact of IFRS 15’s adoption, and related system has been already modified. (1) LINE Stickers and Creator Stickers The new standard will result in a change to the timing of revenue recognition, whereby revenue will be recognized over an estimated usage period on a straight-line method rather than the current method, which is over time but on an accelerated basis. Under the current standard, the Group determines that the measuring method which best depicts the progress towards satisfaction of performance based on a contract is the user usage pattern of Stickers which represents the consumption of the user’s benefits, and recognizes revenue during the earlier part of the estimated usage period. On the other hand, the concept of a service of standing ready is clarified under IFRS 15. IFRS 15 clarified the service of standing ready as to provide services or to make services available to the users for their use as and when the users decide. The Group determines that LINE Stickers and Creator Stickers services which the Group provides to its users are similar to the concept of a service of standing ready. The performance obligation of the Group to the customers which are the users who purchased Stickers is to make the Stickers and Creator Stickers available to the users for their use at any given time. Accordingly, the users receive the benefit of the services and consume such services as the Group makes LINE Stickers and Creator Stickers available to the users for their use. Therefore, the Group determines that its performance obligation is evenly satisfied over time and assessed that a straight-line method over an estimated usage period is the best method to measure the progress towards complete satisfaction of the performance obligation. As a result, the beginning balance of retained earnings, net of tax for the year ending December 31, 2018 has decreased by 967 million yen. (2) LINE Sponsored Stickers The new standard will result in a change to the timing of revenue recognition, whereby revenue will be recognized over a contract period on a straight-line method rather than the current method, which is over time but on an accelerated basis. Under the current standard, the Group determines that the measuring method which best depicts the progress towards satisfaction of performance based on a contract is the users usage pattern of Sponsors Stickers which represent its progress of rendering the services, and recognizes revenue based on the users usage pattern of Sponsors Stickers which is weighted towards the earlier part of the period. On the other hand, under IFRS 15, the definition of a “customer” is clarified and it is defined as “a party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration”. Also, the contract with “customers” is within the scope of IFRS 15, and IFRS 15 requires to measure the progress towards complete satisfaction of a performance obligation to “customers”. In the LINE Sponsored Stickers contract, only an advertiser is obligated to pay consideration for Sponsored Stickers service to the Group, and the users who use Sponsored Stickers do not pay any consideration to the Group directly or indirectly. Therefore, the Group determines the advertisers as “customers”. The performance obligation of the Group to the advertisers is to make the Sponsored Stickers available to the users for their use at any time over a contract period. Accordingly, the Group has assessed that a straight-line method over a contract period is the best method to measure the progress towards complete satisfaction of the performance obligation. As a result, the beginning balance of retained earnings, net of tax for the year ending December 31, 2018 has decreased by 760 million yen. (3) LINE Point Ad The new standard will result in a change to the timing of revenue recognition, whereby the Group will recognize revenue at the time when the LINE Points are issued to the users rather than when the LINE Points are utilized by the users. Under the current standard, the portion of the revenue of LINE Point Ad service attributable to LINE Points is measured at the fair value of LINE Points, and revenue related to unused LINE Points at the end of the accounting period is deferred, while revenue related to redeemed LINE Points is recognized in accordance with the revenue recognition policy for the virtual item purchased. On the other hand, the definition of a “customer” is clarified under IFRS 15 as mentioned above. Upon the adoption of the IFRS 15, the Group determines the advertisers as customers for LINE Point Ad services because only the advertisers pay the transaction prices consideration to the Group for the advertising services the Group provides and the users who receive LINE Points, do not pay any transaction prices directly or indirectly. The Group considers its performance obligation in the contract with a customer who is an advertiser, is to be satisfied when the Group issues the LINE Points to the users because the Company does not have any obligations toward the advertisers to manage LINE Points or to provide users other services in exchange for the LINE points, thereafter for the advertisers. As a result, the Group has preliminarily assessed to recognize revenue at the time when LINE Points are issued to the users. Also, upon the adoption of IFRS 15, the Group expects to recognize provisions for the expenses expected to be incurred in relation to the consumption of LINE points and such expenses are recognized at the same time as LINE Points are issued to the users and as the Group satisfies its performance obligations. As a result, the beginning balance of retained earnings, net of tax for the year ending December 31, 2018 has increased by 667 million yen. (4) LINE advertising and Portal advertising For advertising services such as official account, an advertising agency may be involved to obtain contracts from customers and provide, on behalf of the Company, services to customers such as formatting advertisement publication to comply with the Group’s specification or standards of advertisement publication. In such transaction, the new standard will result in a change to the method of revenue recognition, whereby the Group will recognize revenue by the gross recognition where the Group recognizes consideration received from customers including the share of advertising agencies rather than net recognition where the Group recognizes consideration received from customers excluding the share of advertising agency. Under the current standard, the Company recognizes revenue by excluding the share attributable to the advertising agency from the total consideration received from the customer due to the facts that the share of the advertising agency is identified as an individually identifiable element, that the Company does not directly provide the service and earns revenue at constant rate, and that the Company does not bear credit risks. On the other hand, IFRS 15 clarifies the evaluation of whether an entity is a principal or an agent based on the identification of performance obligations and transfer of control for the services. Especially, it is stated that “an entity is a principal if it controls the specified good or service before that good or service is transferred to a customer”. Guidance and indicators for whether an entity controls the specified goods or services to be provided by another parties to customers are revised. This revision of the guidance and indicators includes a right to a service to be performed by the other party which gives the entity the ability to direct that party to provide the service to the customer on the entity’s behalf. Since the service provided by advertising agencies such as formatting advertisement publication is provided to customers based on the Group’s specification or standards of advertisement publication, the Group determined that the Group controls the service provided by the advertising agency and thus the Group is the principal. As a result, the Company determined to change the recognition method of revenue based on the total consideration received from a customer, including the service provided by the advertising agent. Moreover, in accordance with IFRS 15, the Group recognizes costs of contract which consist of consideration payable to the advertising agency as an asset and will expense as the related revenues are recognized. If the advertising contract is renewed at the end of the original term, another consideration payable to the advertising agency will be incurred, and such cost will be expensed during the period that is the same period which the revenue of the advertising contract is recognized for. Therefore, there is no effect on the beginning balance of retained earnings for the year ending December 31, 2018 even if the Group applies above treatment instead of the current treatment when such cost is excluded from the revenue. – IFRS 16 Leases The IASB issued IFRS 16 Leases. IFRS 16 governs the accounting for leases and the related contractual rights and obligations. In the future, lessees will no longer make a distinction between finance and operating leases as they have been required to do thus far under IAS17. At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use right-of-use The Group has started an assessment of the potential impact on its consolidated financial statements. So far, the most significant impact identified is that the Group will recognize new assets and liabilities for its operating leases of certain office space and stores. In addition, the nature of expenses related to those leases will change as IFRS 16 replaces the straight-line operating expense with a depreciation charge for right-of-use – IFRS 2 Classification and Measurement of Share-based Payment Transactions – Amendments to IFRS 2 The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. The amendments are effective for annual periods beginning on or after 1 January 2018, with early application permitted. The Group has assessed the effect of adopting amended IFRS 2 is immaterial. |
New and amended standards and interpretations | (30) New and amended standards and interpretations The adoption of new and revised IFRSs issued by the IASB that are mandatorily effective for an annual period beginning on or after January 1, 2017 had no material impact on the Group’s annual consolidated financial statements as of December 31, 2016 and 2017, and for the years ended December 31, 2015, 2016 and 2017. The Group has not early adopted any other standards, interpretations or amendments that has been issued but is not yet effective. Standards and amendments which are effective for annual periods beginning on or after January 1, 2017: – IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses – Amendments to IAS 12 IASB has issued amendments to IAS 12 “Recognition of Deferred Tax Assets for Unrealized Losses” in order to clarify the accounting treatment of deferred tax when the assets are measured at fair value in the financial statements and the fair value of the asset does not exceed its tax basis. This amendments also clarifies that deductible temporary difference always exists when the book value of the asset at the last day of the period is lower than its tax basis. Moreover, if an entity assumes that it will recover an asset for more than its carrying amount when estimating probable future taxable profit and when tax law restricts the sources of taxable profits against which it may make deductions on the reversal of the deductible temporary difference, the entity carries out a combined assessment of all its deductible temporary differences relating to the same taxation authority and the same taxable entity. This amendment has been adopted prospectively from the annual periods beginning on or after January 1, 2017. The Group has assessed the effect of adopting amended IFRS 2 is immaterial. |
Significant Accounting Polici40
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Estimated Useful Lives for Property and Equipment | The estimated useful lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3–5 Furniture and fixtures 3–5 Others 3–5 |
Estimated Useful Lives for Intangible Assets with Finite Lives | The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2015, 2016 and 2017 are as follows: Estimated useful lives (years) Software 2–10 Customer relationships 7 Domain name 20 Others 1–10 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Revenues from Continuing Operations from Major Services | The Group’s revenues from continuing operations from its major services for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 LINE business and portal segment Communication and content Communication (1) 28,725 29,290 30,225 Content (2) 49,284 44,784 40,144 Others (3) 5,985 11,923 20,241 Sub-total 83,994 85,997 90,610 Advertising LINE advertising (4) Messenger ads 26,487 33,997 39,495 Performance ads — 10,524 26,609 Sub-total 26,487 44,521 66,104 Portal advertising (5) 9,925 10,186 10,433 Sub-total 36,412 54,707 76,537 Total 120,406 140,704 167,147 (1) Revenues from communication were mainly attributable to sales of LINE Stickers, Creator Stickers and Themes. (2) Revenues from content primarily consisted of sales of LINE Games and LINE PLAY’s virtual items. (3) Revenues from others primarily consisted of sales from LINE Friends service, LINE Part-time Job, LINE Pay service and LINE Mobile. (4) Revenues from LINE advertising consisted of fees from “messenger ads” such as LINE Official Accounts, Sponsored Stickers and LINE Points as well as “performance ads” on Timeline and LINE NEWS. (5) Revenues from portal advertising were mainly attributable to advertising revenue from web portals, livedoor and NAVER Matome. |
Revenues from External Customers | Revenues from external customers classified by country or region were based on the locations of customers. Revenues attributable to communication and content have been classified based on the geographical location of the end users. Revenues attributable to advertising have been classified based on the geographical locations where the services were provided. (In millions of yen) 2015 2016 2017 Japan (country of domicile) 84,780 100,939 121,283 Taiwan 17,058 15,614 16,630 Others 18,568 24,151 29,234 Total 120,406 140,704 167,147 |
Summary of Non-current Operating Assets Classified by Country or Region | Non-current Non-current (In millions of yen) December 31, December 31, Japan (country of domicile) 10,661 23,089 Korea 3,219 10,605 Others 690 5,676 Total 14,570 39,370 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Breakdown of Cash and Cash Equivalents | The breakdown of cash and cash equivalents as of December 31, 2016 and 2017 is as follows: (In millions of yen) December 31, December 31, 2017 Cash on hand 8 13 Demand deposits 134,690 123,593 Total cash and cash equivalents 134,698 123,606 |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Summary of Trade and Other Receivables | Trade and other receivables as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, 2017 Trade and other receivables, current 29,108 43,375 Allowance for doubtful accounts, general (941 ) (483 ) Trade receivables, non-current (1) 82 14 Allowance for doubtful accounts, specific (82 ) (14 ) Total trade and other receivables 28,167 42,892 (1) The non-current |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Summary of Inventories | Inventories as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, Goods 961 3,455 Total Inventories 961 3,455 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Changes in Property and Equipment | Changes in property and equipment for the year ended December 31, 2016 are as follows: (In millions of yen) Furniture Equipment Land (1) Construction- in-progress Others Total Acquisition cost Balance at January 1, 2016 2,950 12,253 2,584 60 356 18,203 Acquisitions 1,144 4,012 — 179 401 5,736 Disposals (74 ) (665 ) (2,584 ) — (13 ) (3,336 ) Deconsolidation of LINE BIZ Plus Ltd. — (27 ) — — (3 ) (30 ) Exchange differences (3 ) (44 ) — — 14 (33 ) Other (200 ) 0 — (55 ) — (255 ) Balance at December 31, 2016 3,817 15,529 — 184 755 20,285 Accumulated depreciation and impairment Balance at January 1, 2016 1,479 6,121 — — 102 7,702 Disposals (57 ) (471 ) — — (5 ) (533 ) Depreciation 680 3,333 — — 121 4,134 Deconsolidation of LINE BIZ Plus Ltd. — (4 ) — — (1 ) (5 ) Exchange differences (3 ) (13 ) — — 2 (14 ) Other (17 ) (11 ) — — — (28 ) Balance at December 31, 2016 2,082 8,955 — — 219 11,256 Carrying amounts Balance at January 1, 2016 1,471 6,132 2,584 60 254 10,501 Balance at December 31, 2016 1,735 6,574 — 184 536 9,029 (1) On June 29, 2016, the Group sold its land in Fukuoka. Refer to Note 22 (1) Other Income and Expenses for more details. Changes in property and equipment for the year ended December 31, 2017 are as follows: (In millions of yen) Furniture Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2017 3,817 15,529 184 755 20,285 Acquisitions 4,156 7,038 42 361 11,597 Disposals (1,305 ) (911 ) — (174 ) (2,390 ) Acquisition through business combinations 12 184 — 297 493 Exchange differences 1 152 — 43 196 Other (180 ) 204 (184 ) 61 (99 ) Balance at December 31, 2017 6,501 22,196 42 1,343 30,082 Accumulated depreciation and impairment Balance at January 1, 2017 2,082 8,955 — 219 11,256 Disposals (1,291 ) (810 ) — (3 ) (2,104 ) Depreciation 1,146 4,111 — 266 5,523 Acquisition through business combinations 4 125 — 171 300 Exchange differences 1 53 — 15 69 Other (63 ) (32 ) — 8 (87 ) Balance at December 31, 2017 1,879 12,402 — 676 14,957 Carrying amounts Balance at January 1, 2017 1,735 6,574 184 536 9,029 Balance at December 31, 2017 4,622 9,794 42 667 15,125 |
Contractual Commitments for Acquisition of Property and Equipment | Contractual commitments for the acquisition of property and equipment: (In millions of yen) December 31, 2016 December 31, 2017 1,464 527 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Changes in Goodwill and Other Intangible Assets | (1) Changes in goodwill and other intangible assets for the year ended December 31, 2016 are as follows: (In millions of yen) Item Goodwill Software (1) Music rights Customer relationships Others Total Acquisition cost Balance at January 1, 2016 5,852 1,543 542 108 933 8,978 Acquisitions — 99 — — 1,286 1,385 Acquisition through a business combination (2) 416 26 — 401 — 843 Deconsolidation of LINE BIZ Plus Ltd. (3) (126 ) — — — — (126 ) Disposal — (9 ) — — — (9 ) Exchange differences (550 ) (170 ) (109 ) (22 ) (36 ) (887 ) Other — (2 ) — — (174 ) (176 ) Balance at December 31, 2016 5,592 1,487 433 487 2,009 10,008 Accumulated amortization and impairment Balance at January 1, 2016 2,732 1,157 542 108 308 4,847 Disposals — (8 ) — — — (8 ) Amortization — 153 — 125 688 966 Exchange differences (540 ) (169 ) (109 ) (21 ) (31 ) (870 ) Other — (4 ) — — (174 ) (178 ) Balance at December 31, 2016 2,192 1,129 433 212 791 4,757 Carrying amounts Balance at January 1, 2016 3,120 386 — — 625 4,131 Balance at December 31, 2016 3,400 358 — 275 1,218 5,251 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2016 was two years. (2) The balances were mainly related to the Group’s acquisition of M.T. Burn Inc. Refer to Note 29 Business Combinations for further details. (3) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) Changes in goodwill and other intangible assets for the year ended December 31, 2017 are as follows: (In millions of yen) Item Goodwill Software (1) Music rights Customer relationships Game Others (2) Total Acquisition cost Balance at January 1, 2017 5,592 1,487 433 487 — 2,009 10,008 Acquisitions — 247 — — — 2,243 2,490 Acquisition through business combinations (3) 13,114 588 — 249 1,640 2,290 17,881 Disposal — (57 ) — — — (1,191 ) (1,248 ) Exchange differences 387 84 27 5 109 83 695 Other — 1 — — — 11 12 Balance at December 31, 2017 19,093 2,350 460 741 1,749 5,445 29,838 Accumulated amortization and impairment Balance at January 1, 2017 2,192 1,129 433 212 — 791 4,757 Disposals — (35 ) — — — (242 ) (277 ) Amortization — 210 — 108 270 1,039 1,627 Impairment — — — — — 214 214 Exchange differences 134 67 27 5 14 26 273 Other — (9 ) — — — 0 (9 ) Balance at December 31, 2017 2,326 1,362 460 325 284 1,828 6,585 Carrying amounts Balance at January 1, 2017 3,400 358 — 275 — 1,218 5,251 Balance at December 31, 2017 16,767 988 — 416 1,465 3,617 23,253 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2017 was three years. (2) Others mainly was mainly comprised of 1,114 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for acquisition of Gatebox Inc.’s trademark and patented technology. The carrying amounts as of December 31, 2017 of these intangible assets were 329 million yen, 646 million yen and 375 million yen, respectively. (3) The balances were related to the Group’s acquisitions of NextFloor Corporation and its subsidiary as well as FIVE Inc. Refer to Note 29 Business Combinations for further details. |
Goodwill and Other Intangible Assets | (3) Contractual commitments for the acquisition of intangible assets: (In millions of yen) December 31, 2016 December 31, 2017 — 215 |
Impairment (Tables)
Impairment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Carrying Amount of Goodwill Allocated to Each of Cash Generating Units for Impairment Testing | Carrying amount of goodwill allocated to each of the CGUs for impairment testing is as follows: (In millions of yen) For the year ended December 31, 2015 LINE business and portal CGU MixRadio CGU Total 3,120 2,692 5,812 (In millions of yen) For the year ended December 31, 2016 LINE business and portal CGU Total 3,400 3,400 (In millions of yen) For the year ended December 31, 2017 LINE business and portal CGU Total 16,767 16,767 |
Significant Assumptions Used in Value in Use Calculations | The significant assumptions used in the value in use calculations are as follows: 2015 2016 2017 CGU Pre-tax Terminal Pre-tax Terminal Pre-tax Terminal LINE business and portal CGU 14.7 % 1.4 % 11.7 % 1.1 % 10.3 % 1.6 % |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Changes in Provisions | Changes in provisions for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) Restoration Promotional Other Total At January 1, 2016 1,213 290 279 1,782 Arising during the year 618 490 198 1,306 Utilized (339 ) (161 ) (43 ) (543 ) Reversal (237 ) (110 ) (92 ) (439 ) Unwinding of discount and changes in the discount rate 1 — — 1 Exchange differences (19 ) — (1 ) (20 ) Other (3 ) — — (3 ) At December 31, 2016 1,234 509 341 2,084 Arising during the year 1,708 2,945 337 4,990 Utilized (25 ) (2,686 ) (211 ) (2,922 ) Reversal (16 ) (162 ) (55 ) (233 ) Unwinding of discount and changes in the discount rate 0 — — 0 Increase due to business combinations 85 — 2 87 Exchange differences 44 1 0 45 Other 0 — — 0 At December 31, 2017 3,030 607 414 4,051 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Current and Deferred Taxes Related to Each Component of Other Comprehensive Income | (1) Current and deferred taxes related to each component of other comprehensive income for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Pretax Tax Post tax Pretax Tax Post tax Pretax Tax Post tax Remeasurement of defined benefit plans (1,722 ) 576 (1,146 ) 674 (209 ) 465 2,093 (488 ) 1,605 Foreign currency translation adjustments (281 ) 14 (267 ) (299 ) (199 ) (498 ) 3,751 (146 ) 3,605 Reclassification adjustments for foreign currency translation adjustments — — — 50 — 50 (13 ) — (13 ) Proportionate share of other comprehensive income of associates 15 (3 ) 12 3 (0 ) 3 106 (14 ) 92 Net change in fair value of available-for-sale 1,551 276 1,827 (2,019 ) 546 (1,473 ) (3,339 ) 836 (2,503 ) Reclassification adjustments for net change in fair value of available-for-sale 1,790 (577 ) 1,213 293 (92 ) 201 1,090 (343 ) 747 Total 1,353 286 1,639 (1,298 ) 46 (1,252 ) 3,688 (155 ) 3,533 |
Current and Deferred Taxes Related to Items Directly Charged or Credited to Equity | Current and deferred taxes related to items directly charged or credited to equity are as follows: (In millions of yen) 2016 2017 Current tax: Share issuance costs related to initial public offering (153 ) — Share issuance costs related to exercise of stock options (4 ) (9 ) Share issuance costs related to Employee Stock Ownership Plan — (5 ) Deferred tax: Share issuance costs related to initial public offering (114 ) — Share issuance costs related to exercise of stock options — (20 ) Total tax directly (credited) to equity (271 ) (34 ) |
Movements in Deferred Tax Assets and Deferred Tax Liabilities | The movements in deferred tax assets and deferred tax liabilities for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) Beginning Amounts Amounts Other (1) Ending Deferred tax assets: Tax losses 3,132 (2,311 ) — 89 910 Depreciation 920 849 — 0 1,769 Advances received 2,967 332 — — 3,299 Deferred revenue 2,350 381 — — 2,731 Restoration obligations for operating lease properties 208 (151 ) — 0 57 Accrued bonuses 614 135 — 1 750 Allowance for doubtful accounts 85 495 — — 580 Other accrued expenses 421 263 — 1 685 Accrued enterprise taxes 248 218 — — 466 Available-for-sale 558 80 8 (2 ) 644 Share-based compensation 719 378 — — 1,097 Post-employment benefits 1,018 416 (209 ) 60 1,285 Tax effect on investments in subsidiaries and associates 3,967 354 (199 ) — 4,122 Other 425 488 — 36 949 Total 17,632 1,927 (400 ) 185 19,344 Deferred tax liabilities: Available-for-sale (2,107 ) 36 446 (2 ) (1,627 ) Prepaid expenses (350 ) (41 ) — 46 (345 ) Intangible assets — 45 — (148 ) (103 ) Other (77 ) 35 — (2 ) (44 ) Total (2,534 ) 75 446 (106 ) (2,119 ) (1) Movements in others are attributable mainly to the acquisition of M.T. Burn Corporation and to incremental costs directly attributable to the issuance of common shares, which were recognized as a deduction from equity. (In millions of yen) Beginning Amounts Amounts Other (1) Ending Deferred tax assets: Tax losses 910 (712 ) — 61 259 Depreciation 1,769 601 — (110 ) 2,260 Advances received 3,299 549 — — 3,848 Deferred revenue 2,731 (263 ) — 3 2,471 Restoration obligations for operating lease properties 57 159 — (1 ) 215 Accrued bonuses 750 121 — (117 ) 754 Allowance for doubtful accounts 580 (209 ) — 6 377 Other accrued expenses 685 (82 ) — 134 737 Accrued enterprise taxes 466 (223 ) — (2 ) 241 Available-for-sale 644 (387 ) 27 (68 ) 216 Share-based compensation 1,097 77 — (5 ) 1,169 Post-employment benefits 1,285 361 (488 ) 26 1,184 Tax effect on investments in subsidiaries and associates 4,122 (1,610 ) (160 ) 24 2,376 Other 949 74 — (3 ) 1,020 Total 19,344 (1,544 ) (621 ) (52 ) 17,127 Deferred tax liabilities: Available-for-sale (1,627 ) 266 466 (132 ) (1,027 ) Prepaid expenses (345 ) (11 ) — — (356 ) Intangible assets (103 ) 125 — (846 ) (824 ) Other (44 ) 65 — (22 ) (1 ) Total (2,119 ) 445 466 (1,000 ) (2,208 ) (1) Movements in others are attributable mainly to the acquisition of NextFloor Corporation. |
Deferred Tax Assets and Liabilities Reconcile to Amounts Presented in Consolidated Statements of Financial Position | The deferred tax assets and liabilities reconcile to the amounts presented in the Consolidated Statements of Financial Position as follows: (In millions of yen) December 31, December 31, Total deferred tax assets 19,344 17,127 Adjustment to offset deferred tax assets and liabilities (959 ) (635 ) Net deferred tax assets 18,385 16,492 (In millions of yen) December 31, 2016 December 31, 2017 Total deferred tax liabilities (2,119 ) (2,208 ) Adjustment to offset deferred tax assets and liabilities 958 635 Net deferred tax liabilities (1,161 ) (1,573 ) |
Breakdown of Deductible Temporary Differences, Unused Tax Losses and Unused Tax Credits for which No Deferred Tax Assets Recognized | Below is a breakdown of the deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets were recognized: (In millions of yen) December 31, 2016 December 31, 2017 Deductible temporary differences 20,591 35,997 Unused tax losses 18,434 32,985 Unused tax credits — 157 Total 39,025 69,139 |
Breakdown of Unused Tax Losses by Expiry Date for which No Deferred Tax Assets Recognized | Below is a breakdown of the unused tax losses by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2016 December 31, 2017 Less than one year — 792 Between one year and five years 2,104 1,741 Five years and more 3,826 12,965 No expiration date 12,504 17,487 Total 18,434 32,985 |
Breakdown of Unused Tax Credits by Expiry Date for which No Deferred Tax Assets Recognized | Below is a breakdown of unused tax credits by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, December 31, Less than one year — 36 Between one year and five years — 121 Five years and more — — No expiration date — — Total — 157 |
Components of Income Tax Benefits/(Expenses) | (3) The components of income tax benefits/(expenses) for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Current income tax: Current income tax expenses (1) (7,595 ) (10,162 ) (8,818 ) Deferred tax: Changes related to origination and reversal of temporary differences (2) 8,758 1,949 (1,107 ) Changes in the tax rate (3) (1,017 ) (691 ) 3 Income tax benefits/(expenses) 146 (8,904 ) (9,922 ) (1) Current income tax expenses include previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences. These benefits were 1,801 million yen, and 489 million yen and 105 million yen for the years ended December 31, 2015, 2016 and 2017, respectively. (2) These balances represent the deferred tax benefit or expense from the increase and decrease of temporary differences, the reversal of previously written-down deferred tax assets and write-downs of deferred tax assets. The Group had deferred tax benefits of 5,699 million yen, 541 million yen and 105 million yen for the years ended December 31, 2015, 2016 and 2017, respectively, due to the reversal of previously written-down deferred tax assets. The reason for having negative amount of deferred tax for the year ended December 31, 2017 is mainly because of the recognition of deferred tax liabilities due to the transfer of camera application business. (3) Amendments to the Japanese tax regulations were enacted into law on March 31, 2014, March 31, 2015 and March 29, 2016. As a result of these amendments, the statutory income tax rate has been reduced from 38.0% to approximately 35.6% and 33.5% effective from the year ended December 31, 2015 and 2016, respectively, and the statutory income tax rates are scheduled to be reduced to approximately 31.7% effective from the year ending December 31, 2017 and 31.5% effective from the year ending December 31, 2019. The Group measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the assets are realized or the liabilities are settled. |
Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses | (4) The income tax expenses calculated by applying the statutory tax rates to the Group’s profit or loss before tax differ from the actual tax expenses in the Consolidated Statements of Profit or Loss for the years ended December 31, 2015, 2016 and 2017 for the following reasons: (In millions of yen) 2015 2016 2017 (Loss)/profit before tax from continuing operations (530 ) 17,990 18,145 Loss before tax from discontinued operations (11,503 ) (2,726 ) (19 ) Accounting (loss)/profit before tax (12,033 ) 15,264 18,126 Income tax benefits/(expenses) at a statutory rate of 31.7% 4,289 (5,119 ) (5,744 ) Permanent non-deductible (1) (3,386 ) (2,703 ) (353 ) Assessment of the recoverability of deferred tax assets (2) 2,214 (752 ) (2,932 ) Effects of changes in tax rate (1,017 ) (691 ) 3 Differences in applicable tax rate of subsidiaries (3) (2,218 ) (81 ) 776 Tax effect on investment in subsidiaries and associates (4) 4,260 591 377 Gain on fair value measurement relating to the deconsolidation (5) — 581 — Share of loss of associates and joint ventures (6) (50 ) (279 ) (1,836 ) Others (31 ) 293 (207 ) Income tax (expenses)/benefits at an effective tax rate of 54.7% 4,061 (8,160 ) (9,916 ) Income tax benefits/(expenses) reported in the statements of profit or loss 146 (8,904 ) (9,922 ) Income tax benefits attributable to discontinued operations 3,915 744 6 4,061 (8,160) (9,916) (1) Permanent non-deductible non-deductible non-resident (2) For the year ended December 31, 2015, the amount was due to recognizing previously unrecognized deferred tax assets of 3,092 million yen and 2,434 million yen for tax loss carryforwards and deductible temporary differences, respectively, primarily for one of the Group’s Korean subsidiaries on a stand-alone basis. Such impact was partially offset by unrecognized deferred tax assets of 2,368 million yen and 944 million yen in connection with the pre-tax For the year ended December 31, 2016, the amount was due to unrecognized deferred tax assets of 966 million yen, 361 million yen and 189 million yen in connection with the pre-tax pre-tax (3) For the year ended December 31, 2016, the amount mainly due to pre-tax pre-tax pre-tax (4) This tax effect is mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred losses during the year. This tax effect offsets MixRadio Limited’s stand-alone tax impacts described in (2) and (3) above. (5) The amount was related to the re-measurement (6) The amount was mainly related to pre-tax |
Financial Assets and Financia50
Financial Assets and Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IAS39 | (In millions of yen) December 31, 2016 December 31, 2017 Items Book value Fair value Book value Fair value Financial assets Trade and other receivables Loans and receivables 28,167 42,892 Other financial assets, current Loans and receivables Time deposits 764 12,002 Short-term loans 2 206 Corporate bonds and other debt instruments 4,012 849 Available-for-sale 1,000 1,000 6 6 Office security deposits 1,170 195 Other 4 — Total 6,952 13,258 Other financial assets, non-current Held-to-maturity (1) 280 294 280 291 Loans and receivables Time deposits 10,000 10,000 — — Corporate bonds and other debt instruments 2,632 2,632 7,986 8,036 Guarantee deposits (1) 3,447 726 Office security deposits 4,858 4,739 5,709 5,546 Financial assets at fair value through profit or loss Conversion right and redemption right of 325 325 1,862 1,862 Available-for-sale (2) 14,141 14,141 15,388 15,388 Other 32 133 Total 35,715 32,084 (In millions of yen) December 31, 2016 December 31, 2017 Items Book value Fair value Book value Fair value Financial liabilities Trade and other payables Financial liabilities measured at amortized cost 21,532 28,810 Other financial liabilities, current Financial liabilities measured at amortized cost Deposits received 2,572 5,730 Short-term borrowings (3) 21,925 22,224 Others — 49 Total 24,497 28,003 Other financial liabilities non-current Financial liabilities at fair value through profit or loss Put option liabilities — — 486 486 Financial liabilities measured at amortized cost Office security deposits received under sublease agreement — — 23 23 Others — 93 Total — 602 (1) The Japanese Payment Services Act requires non-banking (2) Impairment losses of 293 million yen and 1,761 million yen were recognized for available-for-sale available-for-sale (3) The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2016 and 2017 was 0.1% and 0.1%, respectively. |
Employment Benefits (Tables)
Employment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Liabilities for Defined Benefit Obligations | (1) Liabilities for defined benefit obligations as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Unfunded Funded Total Unfunded Funded Total Present value of defined benefit obligations 6,204 — 6,204 6,089 100 6,189 Plan assets (1) — — — — (27 ) (27 ) Liabilities for post-employment benefits 6,204 — 6,204 6,089 73 6,162 (1) All of the plan assets are held by NemusTech, Co., Ltd. which the Group acquired during the year ended December 31, 2017. |
Expenses Related to Defined Benefit Plans Recognized in Consolidated Statements of Profit or Loss as Operating Expenses | (2) Expenses related to defined benefit plans are recognized in the Consolidated Statements of Profit or Loss as operating expenses for the years ended December 31, 2015, 2016 and 2017 are comprised of the following: (In millions of yen) 2015 2016 2017 Current service costs 1,025 1,620 1,933 Interest costs 81 127 208 Total 1,106 1,747 2,141 |
Movements in Present Value of Defined Benefit Obligations | (3) Movements in the present value of the defined benefit obligations for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) 2016 2017 Defined benefit obligations at the beginning of year 5,495 6,204 Current service costs 1,620 1,933 Interest costs 127 208 Remeasurement losses/(gains): Actuarial losses arising from changes in demographic assumptions (1) 7,742 (28 ) Actuarial gains arising from changes in financial assumptions (2) (8,314 ) (1,513 ) Experience adjustments (3) (102 ) (552 ) Payments from the plan (174 ) (453 ) Net transfer (4) 49 (57 ) Increase due to business combinations — 261 Exchange differences on translation of foreign operations (239 ) 186 Defined benefit obligations at the end of year 6,204 6,189 (1) In 2016, actuarial losses arising from changes in demographic assumptions resulted mainly from a decrease in estimated termination rates compared with 2015. The decrease in the estimated termination rates primarily related to the fact that the rate of the increase of the number of separation fell below compared to that of the number of employee who are subject to defined benefit plans compared to 2015. In 2017, there is no material change of the estimated termination rates compared with those in 2016. (2) In 2016, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in the discount rate and a decrease in the period end weighted average salary increase rate at year end 2016, as compared to corresponding rates at year end in 2015. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligation, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased. In 2017, actuarial gains arising from changes in financial assumptions resulted mainly from an increase in discount rate in comparison with 2016 and a decrease in the weighted average salary increase rate. The increase in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligations, increased due to the decrease in estimated termination rates described above. The decrease in the weighted average salary increase rate primarily related to the fact that the salary increase rates for the current year and the estimated future inflation rate decreased. (3 ) Experience adjustments represent the impact on the liabilities of differences between actual experiences during the year compared with the previous actuarial assumptions. (4) Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE PLAY Corporation, LINE Biz Plus Corporation and LINE Friends Corporation and vice versa. |
Movements in the Plan Assets | (4) Movements in the plan assets for the years ended December 31, 2016 and 2017 are as follows: (In millions of yen) 2016 2017 Plan assets at the beginning of year — — Interest income — 2 Employer contributions — 31 Benefits paid — (6 ) Exchange differences on translation of foreign operations — — Plan assets at the end of year — 27 |
Principal Actuarial Assumptions Used for Measuring Defined Benefit Expenses and Defined Benefit Obligation | December 31, December 31, December 31, Discount rate 2.6% 3.4% 3.2%-3.7% Weighted average of salary increase 9.5%-14.4% 8.6%-11.3% 4.5%-7.7% |
Sensitivity Analysis for Impact of Changes in Certain Significant Actuarial Assumptions Leaving All Other Assumptions Constant | (6) Economic factors and conditions often affect multiple assumptions simultaneously; as such, the effects of changes in key assumptions are not necessarily linear. The following sensitivity analysis illustrates the impact of changes in certain significant actuarial assumptions, leaving all other assumptions constant, as of December 31, 2016 and 2017: (In millions of yen) Impact on the defined benefit Assumptions and sensitivity level December 31, December 31, Discount rate 100 basis point increase (842 ) (5,019 ) 100 basis point decrease 1,040 6,561 Salary increase rate 100 basis point increase 972 7,057 100 basis point decrease (810 ) (5,620 ) |
Estimated Future Benefit Payments within Ten Years from December 31, 2017 | The following table shows estimated future benefit payments within ten years from December 31, 2017. Actual payments may differ from those shown because of uncertain future events. Years (In millions of yen) 2018 242 2019 320 2020 392 2021 468 2022 1,000 2023–2027 4,250 |
Leases-Group as Lessee (Tables)
Leases-Group as Lessee (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Future Minimum Rentals Payable under Non-cancelable Operating Leases | Future minimum rentals payable under non-cancelable (In millions of yen) December 31, December 31, Within one year 3,945 4,139 After one year but not more than five years 12,100 10,223 16,045 14,362 |
Leases-Group as Lessor (Tables)
Leases-Group as Lessor (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Future Minimum Rentals | Future minimum rentals payable under non-cancelable (In millions of yen) December 31, December 31, Within one year 19 23 After one year but not more than five years — 25 19 48 |
Issued Capital and Reserves (Ta
Issued Capital and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Movements of Authorized Shares and Shares Issued | The movements of authorized shares and shares issued for the years ended December 31, 2015, 2016 and 2017 are as follows: Authorized capital with no-par Shares issued no-par Share Common Class A January 1, 2015 400,000,000 174,992,000 — 12,596 Conversion of common shares to class A shares (1) 290,000,000 (174,992,000 ) 174,992,000 — December 31, 2015 690,000,000 — 174,992,000 12,596 Conversion of class A shares to common shares (2) — 174,992,000 (174,992,000 ) — Initial public offering (3) — 40,250,000 — 63,424 Exercise of stock options (4) — 2,533,500 — 1,836 December 31, 2016 690,000,000 217,775,500 — 77,856 Exercise of stock options (4) — 19,713,500 — 12,513 Issuance of common shares (5) — 1,007,810 — 2,000 December 31, 2017 690,000,000 238,496,810 — 92,369 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company introduced a dual class structure of common shares and class A shares. Under the dual class structure, each common share has one vote per unit of 100 shares, and each class A share has one vote per unit of 10 shares, while both classes of shares have the same rights to share in profit, distribution of retained earnings and residual assets. As part of the amendment, the total number of authorized shares was increased to 690,000,000, of which up to 190,872,500 shares may be issued as class A shares. Additionally, the Company converted all outstanding shares held by NAVER into class A shares. Class A shares are mandatorily converted to common shares on a one-to-one (2) Through an amendment of its article of incorporation effective as of March 31, 2016, the Company terminated its dual class structure of shares and converted all outstanding class A shares to common shares. (3) The Company issued 35,000,000 shares of common shares through the initial public offering of new shares on July 14, 2016. Additionally, on August 16, 2016, Nomura Securities Co., Ltd. and Morgan Stanley & Co. LLC. exercised their options to purchase 5,250,000 additional common shares in an allotment of new shares. As of December 31, 2016, there were no outstanding over-allotment options granted to underwriters. (4) Refer to Note 27 Share-Based Payments for further details. (5) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) |
Movements in Share Premium | The movements in share premium for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) Share-based (1) Common combinations Others (2) Share January 1, 2015 3,810 294 3,668 7,772 Share-based payments 11,213 — — 11,213 Change in ownership interest in a subsidiary without losing control — — (2 ) (2 ) December 31, 2015 15,023 294 3,666 18,983 Share-based payments 9,520 — — 9,520 Exercise of stock options (2,548 ) — 2,460 (88 ) Forfeiture of stock options (60 ) — — (60 ) Initial public offering (3) — — 63,424 63,424 Cost related to initial public offering (4) — — (571 ) (571 ) December 31, 2016 21,935 294 68,979 91,208 Share-based payments 1,882 — — 1,882 Exercise of stock options (16,746 ) — 15,721 (1,025 ) Forfeiture of stock options (9 ) — — (9 ) Issuance of common shares (5) — — 2,000 2,000 Cost related to issuance of common shares (4) — — (73 ) (73 ) Acquisition of non-controlling — — (423 ) (423 ) December 31, 2017 7,062 294 86,204 93,560 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company amended the terms applicable to a portion of two tranches of stock options, which are the acquisition rights for common shares (the “Common Stock Options”). As a result of the amendment, 24,724 Common Stock Options originally granted on December 17, 2012 and 6,949 Common Stock Options originally granted on February 4, 2015 were converted to the acquisition rights for class A shares (the “Class A Stock Options”), with the holders of such options entitled to acquire 500 class A shares upon exercise of each stock option. Refer to Note 27 Share-Based Payments for further details. Through an amendment of its article of incorporation effective as of March 31, 2016, the Company amended the terms applicable to stock options from class A shares to common shares. (2) Others mainly consists of capital reserve required under the Companies Act of Japan. (3) The Company issued 35,000,000 common shares through the initial public offering of new shares on July 14, 2016. Additionally, on August 16, 2016, Nomura Securities Co., Ltd. and Morgan Stanley & Co. LLC. exercised their options to purchase 5,250,000 additional shares of common stock in an allotment of new shares. As of December 31, 2016, there were no outstanding allotment options granted to underwriters. (4) Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects, in accordance with IAS 32 Financial instruments: Presentation. Refer to Note 13 (1) Income Taxes for further details on these tax effects. (5) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) |
Summary of Movement of Treasury Shares | The movements in treasury shares for the year ended December 31, 2017 are as follows: Number of shares no-par Amount (In millions of yen) January 1, 2017 — — Increase during the year (1) 1,007,810 4,000 Decrease during the year (2) (100 ) (0 ) December 31, 2017 1,007,710 4,000 (1) Resulted from the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (2) Resulted from the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). |
Supplemental Cash Flow Inform55
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement [Line Items] | |
Movements of Liabilities From Financing Activities | Movements on liabilities from financing activities (In millions of yen) Borrowings Borrowings Total Net liabilities as of January 1, 2017 21,925 — 21,925 Cash flows (107 ) (1 ) (108 ) Increase due to business combinations 405 91 496 Items such as foreign currency translation adjustments 1 3 4 Net liabilities as of December 31, 2017 22,224 93 22,317 |
Bonsai Garage Corporation [member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | Corporation to a third party. The assets and liabilities of the Bonsai Garage Corporation, gain on divesture of the subsidiary, and cash consideration received in connection with such sales are presented below: (In millions of yen) Cash and cash equivalents 3 Other current assets 10 Current liabilities (34 ) Gain on divestiture of business and subsidiary 21 Total consideration received in cash 0 Net decrease in cash and cash equivalents due to the divestiture of Bonsai Garage Corporation ( ) (3 ) ( ) This amount is included in “Cash disposed on loss of control of subsidiary” in the Company’s Consolidated Statements of Cash Flows. |
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | All the variances between the assets and liabilities of the camera application business transferred to Snow Corporation and the consideration of transfer were recognized as gain on transfer as presented below. (In millions of yen) Current assets 603 Cash and cash equivalents 581 Other current assets 22 Non-current 71 Current liabilities (133 ) Non-current (334 ) Total 207 Consideration received in exchange for the transfer of camera application business (*1) 10,651 Gain on transfer (*2) 10,444 (*1) This amount is solely for the newly issued common shares of Snow Corporation. This transaction is considered as a non-cash transaction. (*2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. |
LINE BIZ Plus Ltd. (subsequently renamed to RABBIT LINE PAY COMPANY LIMITED) [Member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | The assets, liabilities and other items of LINE BIZ Plus Ltd. transferred in connection with the deconsolidation were as follows: (In millions of yen) Cash and cash equivalents (1) 482 Other current assets 19 Non-current assets 28 Current liabilities (71 ) Non-current liabilities (4 ) Goodwill 150 Non-controlling interests 0 Exchange differences on translation of foreign operations 49 Total 653 (1) This amount is included in “Cash disposed on loss of control of subsidiary” in the Group’s Consolidated Statements of Cash Flows. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Revenues by Category | Revenues by category for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Sale of goods 4,250 8,056 10,823 Rendering of services 115,515 131,201 154,356 Royalties 641 1,447 1,968 Total 120,406 140,704 167,147 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Summary of Other Operating Income | (1) Other operating income for the years ended December 31, 2015, 2016 and 2017 is as follows: (In millions of yen) 2015 2016 2017 Virtual credits breakage income 347 1,491 815 Gain on divestiture of business and subsidiaries (1) — 1,731 10,444 Gain on sale of land (2) — 2,461 — Others 127 209 752 Total 474 5,892 12,011 (1) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) On June 29, 2016, the Company sold land in Fukuoka prefecture with a carrying amount of 2,584 million yen to Kyushu Railway Company. The sale price was 5,050 million yen and the Group recognized a gain on the sale of 2,461 million yen. |
Summary of Other Operating Expenses | (2) Other operating expenses for the years ended December 31, 2015, 2016 and 2017 are as follows: (In millions of yen) 2015 2016 2017 Rent 2,302 3,529 6,143 Travel 1,851 1,737 2,259 Supplies 723 1,154 2,378 Taxes and dues 250 801 1,516 Professional fees 2,256 2,030 2,182 Cost of goods 3,209 3,519 4,946 Training 823 1,006 1,344 Others (1) 3,018 4,600 4,635 Total 14,432 18,376 25,403 (1) The amount consists of office management fees and other miscellaneous expenses. |
Summary of Other Non-Operating Income | (3) Other non-operating (In millions of yen) 2015 2016 2017 Gain on financial assets at fair value through profit or loss 111 — 1,096 Dividend income 46 4 69 Gain on sale of financial assets — — 751 Others — 5 47 Total 157 9 1,963 |
Summary of Other Non-Operating Expenses | (4) Other non-operating (In millions of yen) 2015 2016 2017 Loss on financial assets at fair value through profit or loss — 656 118 Loss on impairment of available-for-sale 1,790 293 1,761 Loss from derivatives 62 60 — Others 35 53 109 Total 1,887 1,062 1,988 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Aggregated Results of Discontinued Operations | The aggregated results of the discontinued operations for the years ended December 31, 2015, 2016 and 2017 are presented below. (In millions of yen) 2015 2016 2017 Revenues 264 444 — Other income — 9 — Expenses (1) (11,767 ) (3,179 ) (19 ) Loss before tax from discontinued operations (11,503 ) (2,726 ) (19 ) Income tax benefits on disposal (2) 3,915 744 6 Loss for the year from discontinued operations (attributable to the shareholders of the Company) (7,588 ) (1,982 ) (13 ) (1) In connection with the abandonment of the MixRadio business on March 21, 2016, restructuring expenses related to employee termination benefits of 1,165 million yen and office lease termination fees of 126 million yen have been incurred. (2) The income tax benefits for the years ended December 31, 2015, 2016 and 2017 are mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred loss during the periods. |
Cash Flow Information of Discontinued Operations | The aggregated cash flow information of the discontinued operations for the years ended December 31, 2015, 2016 and 2017, are presented below. (In millions of yen) 2015 2016 2017 Operating (6,457 ) (4,654 ) (136 ) Investing (2,427 ) 22 — Financing — — — Net cash outflow (8,884 ) (4,632 ) (136 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Profit or Loss and Weighted Average Number of Shares Used in Calculation of Earnings per Share | The profit or loss for the year and the weighted average number of shares used in the calculation of earnings per share are as follows: (In millions of yen, except number of shares) 2015 2016 2017 Profit for the year attributable to the shareholders of the Company from continuing operations 6 8,745 8,091 Loss for the year attributable to the shareholders of the Company from discontinued operations (7,588 ) (1,982 ) (13 ) Total (loss)/profit for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share (7,582 ) 6,763 8,078 Weighted average number of total common shares and class A shares 174,992,000 194,083,995 221,405,391 Weighted average number of total treasury shares — — (459,843 ) Weighted average number of common and class A shares for basic earnings per share (1) 174,992,000 194,083,995 220,945,548 Effect of dilution: Stock options 18,805,566 20,790,013 16,559,789 Employee Stock Ownership Plan (J-ESOP) — — 47,369 Weighted average number of total common and class A shares adjusted for the effect of dilution (1) 193,797,566 214,874,008 237,552,706 (1) Through the amendment of its articles of incorporation on June 15, 2015, the Company introduced a dual class structure of common shares and class A shares and converted all outstanding common shares into class A shares; therefore, the weighted average number of shares for the year ended December 31, 2016 includes the average number of common shares and class A shares for the year ended December 31, 2016. Additionally, through an amendment of its article of incorporation effective as of March 31, 2016, the Company terminated its dual class structure of commons shares and class A shares and converted all class A shares into common shares. |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement [Line Items] | |
Maximum Amounts of Possible Financial Loss Due to Credit Risk | (a) Maximum amounts of possible financial loss to the Group due to credit risk as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, December 31, Book value Book value Demand deposits (1) 134,690 123,593 Time deposits (1) 10,764 12,002 Loan receivables (3) 2 206 Guarantee deposits (1)(2) 3,447 726 Trade and other receivables (3) (4) 28,167 42,892 Japanese government bonds (1)(2) 280 280 Corporate bonds and other debt instruments (1) 7,643 8,835 Office security deposits (1)(5) 6,028 5,904 Total 191,021 194,438 (1) None of these assets were past due or impaired at the end of the respective reporting period. (2) Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. (3) For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of loan receivables, trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical experience for similar assets. (4) The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 38.5% and 30.5% of trade and other receivables as of December 31, 2016 and 2017, respectively. (5) The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. |
Movement in Allowance for Doubtful Accounts Attributable to Trade and Other Receivables, and Other Financial Assets Current | Below is the movement in the allowance for doubtful accounts attributable to trade and other receivables, and other financial assets current: (In millions of yen) Allowance for doubtful accounts Balance at January 1, 2016 430 Provision for the year 663 Reversal (9 ) Utilized (9 ) Translation 2 Balance at December 31, 2016 1,077 Provision for the year 83 Reversal (515 ) Utilized (204 ) Acquisition of subsidiary 44 Translation 7 Balance at December 31, 2017 492 |
Summary of Capital Management | (In millions of yen) December 31, December 31, Short-term borrowings 21,925 22,224 Total 21,925 22,224 Total shareholders’ equity 161,023 189,977 |
Liquidity risk [Member] | |
Statement [Line Items] | |
Book Values of Financial Liabilities Based on Remaining Maturities | The book values of financial liabilities based on the remaining maturities as of December 31, 2016 and 2017 are as follows. The amounts below include estimated interest from financial liabilities scheduled to be paid. (In millions of yen) December 31, 2016 Book value Contractual cash outflows Less than One to After Trade and other payables 21,532 21,532 21,532 — — Short-term borrowings (1) 21,925 21,937 21,937 — — Deposits received 2,572 2,572 2,572 — — Total 46,029 46,041 46,041 — — (In millions of yen) December 31, 2017 Book value Contractual Less than One to After Trade and other payables 28,810 28,810 28,810 — — Short-term borrowings (1) 22,224 22,341 22,341 — — Deposits received 5,730 5,730 5,730 — — Office security deposits received under sublease agreement 23 23 — 23 — Put option liabilities 486 486 — 486 — Total 57,273 57,390 56,881 509 — (1) The Group had lines of credit with four banks for the years ended December 31, 2016 and 2017. |
Line of Credit | (1) The Group had lines of credit with four banks for the years ended December 31, 2016 and 2017. The lines of credit available and the lines of credit used are as follows: (In millions of yen) December 31, December 31, Lines of credit available 24,380 22,712 Lines of credit used 21,667 22,000 Remaining lines of credit available 2,713 712 |
Currency risk [member] | |
Statement [Line Items] | |
Exposure to Market Risks | The book values of major monetary assets and liabilities denominated in currencies other than the functional currency as of December 31, 2016 and 2017 are as follows: (In millions) December 31, 2016 Currency Amount Exchange rate Yen equivalent Monetary assets: Cash and cash equivalents KRW 37,595 0.10 3,626 USD 32 116.56 3,775 EUR 6 122.26 750 Trade receivables KRW 2,310 0.10 223 USD 6 116.56 725 THB 395 3.24 1,282 Time deposits KRW 5,100 0.10 492 USD 2 116.56 257 Office security deposits KRW 5,623 0.10 542 Available-for-sale USD 9 116.56 1,059 (In millions) December 31, 2017 Currency Amount Exchange rate Yen equivalent Monetary assets: Cash and cash equivalents KRW 7,312 0.11 770 USD 101 112.88 11,364 EUR 2 134.78 213 JPY 258 1.00 258 Trade receivables USD 12 112.88 1,336 THB 188 3.45 649 Other receivables USD 5 112.88 611 Time deposits KRW 6,100 0.11 643 USD 10 112.88 1,131 Office security deposits KRW 5,655 0.11 596 Available-for-sale USD 35 112.88 3,949 (In millions) December 31, 2016 Currency Amount Exchange rate Yen equivalent Monetary liabilities: Trade and other payables KRW (7,669 ) 0.10 (740 ) USD (5 ) 116.56 (612 ) EUR (2 ) 122.26 (211 ) (In millions) December 31, 2017 Currency Amount Exchange rate Yen equivalent Monetary liabilities: Trade and other payables KRW (20,456) 0.11 (2,155) USD (10) 112.88 (1,166) THB (97) 3.45 (334) Put option liabilities KRW (2,114) 0.11 (223) |
Sensitivity Analysis for Each Type of Market Risk | The effects on profit or loss before tax from continuing operations and shareholders’ equity as a result of exchange rate fluctuations as of December 31, 2016 and 2017, are as follows: (In millions of yen) December 31, 2016 Shareholder’s equity Profit or (loss) before tax Currency Appreciation Depreciation Appreciation Depreciation EUR 20 (19 ) 27 (26 ) KRW 157 (150 ) 207 (197 ) USD 195 (186 ) 260 (248 ) THB 47 (45 ) 64 (61 ) (In millions of yen) December 31, 2017 Shareholders’ equity Profit or (loss) before tax Currency Appreciation Depreciation Appreciation Depreciation EUR 11 (10 ) 8 (8 ) KRW (18 ) 18 (13 ) 12 USD 861 (820 ) 603 (574 ) THB 16 (15 ) 11 (10 ) JPY 13 (12 ) 10 (10 ) |
Interest rate risk [Member] | |
Statement [Line Items] | |
Exposure to Market Risks | Interest bearing financial assets and liabilities as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Fixed rate Variable rate Fixed rate Variable rate Financial assets Japanese government bonds 280 — 280 — Time deposits 10,764 — 12,002 — Loan receivables 2 — 116 — Corporate bonds and other debt instruments 4,632 3,012 8,835 — Total financial assets 15,678 3,012 21,233 — Financial liabilities Short-term borrowings 258 21,667 43 22,042 Total financial liabilities 258 21,667 43 22,042 |
Sensitivity Analysis for Each Type of Market Risk | Potential effects on shareholders’ equity and profit or loss for one year from the reporting date as a result of a change in the interest rate are as follows. (In millions of yen) December 31, 2016 Shareholder’s equity Profit or (loss) before tax Increase of 50 Decrease of 50 Increase of 50 Decrease of 50 Interest expenses (74 ) 11 (108 ) 16 (In millions of yen) December 31, 2017 Shareholders’ equity Profit or (loss) before tax Increase of 50 Decrease of 50 Increase of 50 Decrease of 50 Interest expenses (75 ) 13 (110 ) 19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | ssets and liabilities measured at fair value on a recurring basis in the Consolidated Statements of Financial Position as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss Conversion right and redemption right of preferred stock — — 325 325 Available-for-sale Listed equity investments 2,346 — — 2,346 Private equity and other financial instruments — — 12,795 12,795 Total 2,346 — 13,120 15,466 (In millions of yen) December 31, 2017 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss Conversion right and redemption right of preferred stock — — 1,862 1,862 Available-for-sale Listed equity investments 1,574 — — 1,574 Private equity and other financial instruments — — 13,820 13,820 Total 1,574 — 15,682 17,256 Financial liability at fair value through profit or loss Put option liabilities — — 486 486 Total — — 486 486 |
Not measured at fair values in Consolidated Statements of Financial Position but for which fair values are disclosed [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | Assets and liabilities not measured at fair values in the Consolidated Statements of Financial Position, but for which fair values are disclosed as of December 31, 2016 and 2017 are as follows: (In millions of yen) December 31, 2016 Level 1 Level 2 Level 3 Total Held-to-maturity Japanese government bonds — 294 — 294 Loans and receivables Time deposits — 10,000 — 10,000 Corporate bonds and other debt instruments — 2,632 — 2,632 Office security deposits — 4,739 — 4,739 Total — 17,665 — 17,665 (In millions of yen) December 31, 2017 Level 1 Level 2 Level 3 Total Held-to-maturity Japanese government bonds — 291 — 291 Loans and receivables Corporate bonds and other debt instruments — 8,036 — 8,036 Office security deposits — 5,546 — 5,546 Total — 13,873 — 13,873 Financial liability measured at amortized cost Office securities deposits received under sublease agreement — 23 — 23 Total — 23 — 23 |
Level 3 [Member] | Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | (3) Reconciliations from the opening balance to the closing balance of financial instruments categorized within Level 3 are as follows: (In millions of yen) 2016 2017 Private and other financial Conversion right of Private and other financial Conversion right of Put option Fair value at the beginning of the year 13,648 871 12,795 325 — Total (loss)/gain for the year: Included in profit or loss (1) (29 ) (656 ) (1,535 ) 1,062 (7 ) Included in other comprehensive income (2) (2,140 ) — (2,456 ) — — Comprehensive (loss)/income (2,169 ) (656 ) (3,991 ) 1,062 (7 ) Purchases 2,054 197 4,949 363 457 Sales and settlements — — (1,619 ) — — Return of capital (8 ) — (121 ) — — Increase due to business combination — — 610 — 33 Transfers in (3) — — 326 — — Effect of exchange rate changes (730 ) (87 ) 871 112 3 Fair value at the end of the year 12,795 325 13,820 1,862 486 (1) This amount is included in “Other non-operating non-operating (2) This amount is included in “Net changes in fair value” of available-for-sale (3) During the year ended December 31, 2017, the issuing company of the equity was delisted from a stock exchange in the U.S. subsequent to our purchase of its equity securities. Accordingly, such equity investment was transferred from Level 1 to Level 3. |
Put Option Liabilities [Member] | Level 3 [Member] | Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain put option liabilities: Valuation technique Significant 2016 2017 Option pricing model Comparable listed companies’ average historical volatility — 45.0% Discount rate — 4.3% Monte Carlo simulation Comparable listed companies’ average historical volatility — 41.4%-49.2% Discount rate — 2.5% |
Conversion right and redemption right of preferred stock [member] | Level 3 [Member] | Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation technique and significant unobservable inputs used in measuring the fair value of certain conversion right and redemption right of preferred stock: Valuation technique Significant 2016 2017 Binomial option pricing model Comparable listed companies’ average historical volatility 13.6%-39.6% 46.0%-49.2% Discount rate 1.6% 2.5% |
Private equity and other financial instruments [Member] | Level 3 [Member] | Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain unlisted equity securities: Valuation technique Significant unobservable input 2016 2017 Market approach—market comparable companies EBITDA multiple 10.4 11.6-12.8 EBIT multiple — 11.4-19.3 Revenue multiple 1.7-3.6 1.4-6.2 Liquidity discount 30% 30% Option pricing model Comparable listed companies’ average historical volatility 39.6%-78.9% 49.7%-76.2% Discount rate (0.1%)-1.6% (0.1%)-2.6% Discount cash flow model Discount rate 16.8% 12.8%-13.0% Growth rate — 1.0%-2.0% |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement [Line Items] | |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Options on a Per-common-share Basis | i. Movements during the years ended December 31, 2015, 2016 and 2017 The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, outstanding stock options on a per-common-share 2015 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 20,217,500 481 — — Granted during the period 5,773,500 1,320 — — Forfeited during the period (306,500 ) 1,178 — — Exercised during the period — — — — Expired during the period — — — — Conversion of Common Stock Options to Class A Stock Options (15,836,500 ) 558 15,836,500 558 Outstanding at December 31 9,848,000 827 15,836,500 558 Exercisable at December 31 4,970,500 344 12,362,000 344 2016 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 9,848,000 827 15,836,500 558 Granted during the period — — — — Forfeited during the period (239,500 ) 1,137 — — Exercised during the period (1) (2,533,500 ) 691 — — Expired during the period — — — — Conversion of Class A Stock Options to Common Stock Options 15,836,500 558 (15,836,500 ) 558 Outstanding at December 31 22,911,500 653 — — Exercisable at December 31 17,321,500 438 — — 2017 Common Stock Options Class A Stock Options Number WAEP (yen Number WAEP (yen Outstanding at January 1 22,911,500 653 — — Granted during the period 2,386,000 4,206 — — Forfeited during the period (7,000 ) 1,320 — — Exercised during the period (1) (19,713,500 ) 583 — — Expired during the period — — — — Outstanding at December 31 5,577,000 2,421 — — Exercisable at December 31 3,191,000 1,086 — — (1) The weighted average share price at the date of exercise of these options during the years ended December 31, 2016 and 2017 were 4,255 yen and 4,580 yen, respectively. |
Summary of Exercise Price and Number for Shares of Options Outstanding | The exercise price and the number of shares for options outstanding as of December 31, 2015, 2016 and 2017 are as follows: Number (Shares) Grant dates Exercise price December 31, December 31, December 31, December 18, 2012 344 14,000,000 14,000,000 — December 17, 2013 344 3,322,500 1,654,000 763,500 February 8, 2014 1,320 1,667,000 1,135,000 818,000 August 9, 2014 1,320 697,000 311,000 218,000 November 1, 2014 1,320 323,000 221,500 145,000 February 4, 2015 1,320 5,665,000 5,590,000 1,246,500 July 18, 2017 4,206 — — 2,386,000 |
Inputs to Models Used for Deriving Fair Value of Stock Options Granted | The following tables list the inputs to the models used for deriving the fair value of the stock options granted for the years ended December 31, 2015, 2016 and 2017 Grant dates 2015 2017 February 4 July 18 Dividend yield 0.0 % 0.0 % Expected volatility 56 % 44.9-45.7 % Risk-free interest rate 0.0 % (0.04)-0.00 % Expected life of stock options (years) 6 5.5-7 Exercise price (yen) 1,320 4,206 Fair value per common share at the grant date (yen) 4,225 3,840 Model used Black-Scholes Black-Scholes |
Expenses Recognized in Connection with Share-Based Payments | The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from equity-settled share-based payment transactions 11,213 9,519 1,602 |
ESOP equity settled [member] | |
Statement [Line Items] | |
Expenses Recognized in Connection with Share-Based Payments | The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from equity-settled share-based payment transactions — — 279 |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis | The following table illustrates the movements in outstanding points during the year ended December 31, 2017: J-ESOP (Equity-settled) Number (Points (1) Outstanding at January 1, 2017 — Granted during the period 262,069 Forfeited during the period (10,767 ) Exercised during the period — Expired during the period — Outstanding at December 31, 2017 251,302 Exercisable at December 31, 2017 — (1) One point is equal to one share. |
ESOP cash settled [member] | |
Statement [Line Items] | |
Expenses Recognized in Connection with Share-Based Payments | iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2015, 2016 and 2017 are shown in the following table: (In millions of yen) 2015 2016 2017 Total expenses arising from cash-settled share-based payment transactions — — 805 |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis | The following table illustrates the movements in outstanding points during the year ended December 31, 2017: J-ESOP (Cash-settled) Number (Points (1) Outstanding at January 1, 2017 — Granted during the period 567,056 Forfeited during the period (33,554 ) Exercised during the period — Expired during the period — Outstanding at December 31, 2017 533,502 Exercisable at December 31, 2017 — (1) One point is equal to one share. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Significant Related Party Transactions and Outstanding Balances with Related Parties | (1) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2015 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 1,127 160 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,139 (942 ) (1) LINE Plus and NAVER entered into an agreement for exchange of services in which LINE Plus provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 1,127 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2015. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (2) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2016 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 332 67 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 7,458 (902 ) (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 332 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2016. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (3) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2017 are as follows: (In millions of yen) Relationship Name Transaction Transaction Outstanding (3) Parent company NAVER Advertising service (1) 518 108 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,475 (976 ) Associate of the Group Snow Corporation Transfer of camera (4) 10,651 — Director of the Company Joongho Shin Exercise of stock (5) 6,922 — Director of the Company Hae Jin Lee Exercise of stock (5) 1,917 — (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 518 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2017. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (4) In May, 2017, LINE Plus Corporation transferred its camera application business to Snow Corporation. In exchange for the transfer of the business, LINE Plus Corporation received 208,455 newly issued common shares of Snow Corporation, and the transaction amount represents the fair value of the newly issued common shares received on the transaction date. Refer to Note 20 Supplemental Cash Flow Information for further details. (5) Stock options which had been issued with resolution at the meeting of board of director on December 17, 2012 and January 30, 2015, have been exercised. The transaction amount includes the amount paid in by exercising stock options during the year ended December 31, 2017. |
Total Compensation of Key Management Personnel | (4) The total compensation of key management personnel for the years ended December 31, 2015, 2016 and 2017, was as follows: (In millions of yen) 2015 2016 2017 Salaries (including bonuses) 315 459 739 Share-based payments (1) 5,286 5,714 928 Total 5,601 6,173 1,667 (1) Refer to Note 27 Share-Based Payments for further details. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
MixRadio Limited [member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The fair values of the identifiable assets and liabilities of MixRadio as of the date of acquisition were as follows: (In millions of yen) Fair value on Assets Property and equipment 39 Intangible assets Technology 845 Music rights 543 Trademarks 157 Customer relationships 109 Other intangible assets 4 1,697 Liabilities Trade and other payables 1,544 Other liabilities 552 2,096 Total identifiable net liabilities at fair value (399 ) Goodwill 2,698 Total consideration 2,299 |
M.T. Burn Corporation [Member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The identifiable assets and liabilities of M.T. Burn, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 87 Trade receivables 83 Customer relationships 401 Software 26 Deferred tax assets 88 Other assets 1 686 Liabilities Trade and other payables 78 Other financial liabilities, current 50 Other financial liabilities, non-current 210 Deferred tax liabilities 149 Other liabilities 13 500 Total identifiable net assets at fair value 186 Non-controlling (92 ) Goodwill 416 Total consideration 510 |
Analysis of Cash Flows on Acquisition | (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (510 ) Net cash and cash equivalents acquired at the acquisition date 87 Net cash flows on acquisition (included in cash flows from investing activities) (423 ) |
NextFloor Group [Member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The identifiable assets and liabilities of NextFloor Group, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 1,946 Trade receivables 335 Other financial assets, current 307 Other financial assets, non-current 754 Property and equipment 145 Intangible assets Software 153 Publishing rights 1,640 Other intangible assets 277 Investments in associates 805 Other assets 320 6,682 Liabilities Trade and other payables 404 Other financial liabilities, current 123 Other financial liabilities, non-current 63 Deferred tax liabilities 391 Other liabilities 264 1,245 Total identifiable net assets at fair value 5,437 Non-controlling (2,664 ) Goodwill 3,154 Total consideration 5,927 |
Analysis of Cash Flows on Acquisition | (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,927 ) Debt equity swap 1,976 Net cash and cash equivalents acquired at the acquisition date 1,946 Net cash flows on acquisition (included in cash flows from investing activities) (2,005 ) |
FIVE Inc. [Member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The identifiable assets and liabilities of FIVE, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value Assets Cash and cash equivalents 231 Trade and other receivables, current 307 Other financial assets, non-current 10 Property and equipment 9 Technology 391 Other assets 7 955 Liabilities Trade and other payables 288 Other financial liabilities, current 50 Deferred tax liabilities 123 Other liabilities 44 505 Total identifiable net assets at fair value 450 Goodwill 4,996 Total consideration 5,446 |
Analysis of Cash Flows on Acquisition | (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,446 ) Net cash and cash equivalents acquired at the acquisition date 231 Net cash flows on acquisition (included in cash flows from investing activities) (5,215 ) |
Principal Subsidiaries (Tables)
Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block1 [Abstract] | |
Information on Subsidiaries | The Group has 53 consolidated subsidiaries. The significant subsidiaries of the Group include the following subsidiaries: Percentage of ownership Name Primary business Country of December 31, December 31, LINE Business Partners Corporation (1) Online advertisement Japan 100.0 % — LINE Fukuoka Corp. Management support Japan 100.0 % 100.0 % LINE Pay Corporation Software Development and mobile payment service Japan 100.0 % 100.0 % LINE Book Distribution Corporation Mobile Contents Japan 52.0 % 52.0 % LINE Ventures Corporation Investment Japan 100.0 % 100.0 % LINE GAME Global Gateway, L.P. Investment Japan 100.0 % 100.0 % LINE Life Global Gateway, L.P. Investment Japan 100.0 % 100.0 % LINE Mobile Corporation Mobile virtual network operator Japan 100.0 % 100.0 % M.T. Burn Corporation Online advertisement Japan 50.5 % 50.5 % Gatebox Inc. (2) IoT hologram technology development Japan — 51.0 % BALIE Corporation (3) LINE distributor Japan — 60.0 % STAIRS Corporation (4) Game Development Japan — 100.0 % LINE Friends Japan Corporation (5) Character goods business Japan — 100.0 % LINE TICKET Corporation (6) Electronic ticket service Japan — 51.0 % FIVE Inc. (7) Game Development Japan — 100.0 % LINE PLAY Corporation Content sales Korea 100.0 % 100.0 % LINE Plus Corporation Global marketing Korea 100.0 % 100.0 % LINE C&I Corporation Investment Korea 100.0 % 100.0 % LINE Biz Plus Corporation Mobile payment service Korea 100.0 % 100.0 % LINE Friends Corporation Character goods business Korea 100.0 % 100.0 % LINE Games Corporation (8) Game Development and Publishing Korea — 100.0 % NextFloor Corporation. (9) Game Development and Publishing Korea — 51.0 % LINE UP Corporation (10) Global Marketing Korea — 100.0 % LINE Digital Technology (Shanghai) Limited. Social Media China 100.0 % 100.0 % LINE Friends(Shanghai) Commercial Trade Co., Ltd. (11) Character goods business China — 100.0 % LINE Taiwan Limited Mobile Service Taiwan 100.0 % 100.0 % Line Biz+ Taiwan Limited Payment service Taiwan 100.0 % 100.0 % LINE BIZ+ PTE. LTD. Software Development and mobile payment service Singapore 100.0 % 100.0 % LINE Company (Thailand) Limited (12) e-commerce Thailand 50.0 % 50.0 % LINE Euro-Americas Corp. Global marketing United States of America 100.0 % 100.0 % LINE Friends Inc. (13) Character goods business United States of America — 100.0 % MixRadio Limited Music distribution United Kingdom of Great Britain and Northern Ireland 100.0 % 100.0 % LINE Vietnam Co., Ltd (14) Online advertisement Vietnam 95.0 % 100.0 % PT. LINE PLUS INDONESIA Marketing Indonesia 99.8 % 99.9 % (1) LINE Business Partners Corporation was merged with LINE Pay Corporation in December 2017 (2) The Company acquired Gatebox Inc. (renamed from vinclu Inc. in July 2017) in April 2017, resulting in the 51.0% ownership. (3) LINE Business Partners acquired the shares of BALIE Corporation in July 2017, followed by the merger of LINE Business Partners by LINE Pay Corporation in December 2017. As a result, the Group’s has 60.0% ownership of BALIE Corporation (4) LINE Games Corporation acquired the shares of NextFloor Corporation. in July 2017, resulting in the Group’s 51.0% ownership. Additionally, in October, 2017, LINE Games Corporation acquired shares of STAIRS Corporation from NextFloor Corporations., resulting in an increase of the Group’s ownership in STAIRS Corporation from 51.0% to 100.0%. (5) The Company established LINE Friends Japan Corporation and transferred its LINE Friends store business to LINE Friends Japan Corporation in September 2017. (6) The Company established LINE TICKET Corporation with third-parties in September 2017, resulting in the 51.0% ownership of LINE TICKET Corporation by the Company. (7) The Company acquired shares of FIVE Inc., resulting in FIVE Inc.to become a wholly owned subsidiary of the Group. (8) The Company established LINE Games Corporation in June 2017. (9) LINE Games Corporation acquired the shares of NextFloor Corporation. in July 2017, resulting in the Group’s 51.0% ownership. (10) LINE Plus Corporation established LINE UP Corporation and transferred its game development business to LINE UP Corporation in November 2017. (11) LINE Friends Corporation established LINE Friends (Shanghai) Commercial Trade Co., Ltd. in March 2017. (12) The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consolidation for the Group’s consolidated financial statements. (13) LINE Friends Corporation established LINE Friends America, LLC in February 2017 and renamed it as LINE Friends Inc. in May 2017. (14) LINE Plus Corporation acquired additional shares of LINE Vietnam Co., Ltd. in March 2017 from a third party, resulting in an increase of the Group’s ownership in LINE Vietnam Co., Ltd. from 95.0% to 100.0%. |
Investments in Associates and66
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Statement [Line Items] | |
Details of Investments in Significant Associates and Joint Ventures | (1) Details of investments in the Group’s significant associates and joint ventures are as follows: (In millions of yen) December 31, 2016 December 31, 2017 Primary business activities Country of Percentage Carrying Percentage Carrying Associates LINE Project Production Partnership Animation production Japan 50.0 % — 50.0 % — Collab+LINE LLC Investment United States of America 50.0 % 133 50.0 % 130 Epic Voyage, Inc. Mobile games Japan 30.0 % 3 30.0 % 3 Green Monster, Inc. (1) Mobile games Japan 35.0 % — — — LINE MUSIC Corporation Music distribution Japan 33.4 % 413 33.4 % 47 AUBE, Ltd. Job listing Japan 49.0 % 340 49.0 % 334 transcosmos online communications inc. (2) Customer service Japan 40.0 % 42 37.1 % 121 NPLE GAMES Co., Ltd. Mobile games Korea 14.8 % 69 43.5 % 457 Yume no Machi Souzou Iinkai Co., Ltd. Delivery portal site Japan 22.0 % 3,973 22.0 % 3,865 Snow Corporation (3) Mobile app Korea 25.0 % 4,387 45.0 % 12,998 K-Fund (4) Investment France — % — 25.0 % 1,388 Orfeo SoundWorks Corporation (5) Earphone technology Korea — % — 20.7 % 154 Oozoo Inc. (6) Game Development Korea — % — 44.5 % 247 Nano Interactive Inc. (7) Game Development Korea — % — 35.5 % 54 Motif Co.,Ltd. (8) Game Development Korea — % — 41.5 % 207 Skeinglobe Corporation (9) Game Development Korea — % — 28.7 % 108 Joint ventures Lantu Games Limited Mobile games Hong Kong 50.0 % 1,025 50.0 % 394 RABBIT-LINE PAY COMPANY LIMITED Payment service Thailand 50.0 % 2,327 50.0 % 2,121 Drama & Company (10) Software Development Korea — % — 37.2 % 2,216 (1) In September 2017, the Company disposed all of the shares of Green Monster, Inc., as Green Monster Inc. was liquidated. (2) In October 2017, the Company’s ownership in transcosmos online communications inc., decreased from 40.0% to 37.1% as a result of the issuance of new shares by transcosmos online communications inc. (3) In May 2017, the Group transferred its camera application business, which was a part of LINE Plus Corporation, to Snow Corporation. In exchange for this transfer, Snow Corporation newly issued common stocks for LINE Plus Corporation and the Group has acquired common shares of Snow Corporation. As a result, the share of the Group increased from 25.0% to 48.6%. In August 2017, the Company and NAVER injected capital to Snow Corporation 984 million yen and 3,938 million yen, respectively. As a result, the share of the Group decreased from 48.6% to 45.0%. Refer to Note 20 Supplemental Cash Flow Information for further details. (4) In January 2017, LINE Plus Corporation and NAVER established K-Fund start-up K-Fund K-Fund K-Fund K-Fund (5) In June 2017, LINE Friends Corporation acquired a 20.7% interest in Orfeo SoundWorks Corporation (“Orfeo SoundWorks”) to develop and sell products with Orfeo SoundWorks’s technology such as earphones and headsets. As the Group has significant influence over Orfeo SoundWorks, the Group accounts for its ownership in Orfeo SoundWorks using the equity method. (6) In July 2017, LINE Games Corporation acquired NextFloor Corporation., and NextFloor Corporation owns a 44.5% interest in Oozoo Inc., a game developing company. As the Group has significant influence over Oozoo Inc., the Group accounts for its ownership in Oozoo Inc. using the equity method. (7) In July 2017, LINE Games Corporation acquired NextFloor Corporation., and NextFloor Corporation owns 35.5% interest in Nano Interactive Inc., a game developing company. As the Group has significant influence over Nano Interactive Inc., the Group accounts for its ownership in Nano Interactive Inc. using the equity method. (8) In November 2017, LINE Games Corporation acquired a 41.5% interest in Motif Co., Ltd., which provides game planning and development services. As the Group has significant influence over Motif Co., Ltd., the Group accounts for its ownership in Motif Co., Ltd. using the equity method. (9) In December 2017, LINE Games Corporation acquired a 28.7% interest in Skeinglobe Corporation, which provides a mobile game planning and development service. As the Group has significant influence over Skeinglobe Corporation, the Group accounts for its ownership in Skeinglobe Corporation using the equity method. (10) In November 2017, LINE Plus Corporation acquired a 37.2% interest in Drama & Company, which provides software planning and development services such as a business card management service, ”REMEMBER”. As the Group has significant influence over Drama & Company was accounted for as a joint venture under the equity method as the Group has joint control of the entity under the shareholders agreement. |
Summary of Financial Information on Investment in Joint Ventures | (4) The aggregate amount of individually immaterial joint ventures accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, 2016 December 31, 2017 Current assets (1) 4,942 5,237 Non-current 29 227 Current liabilities (2) 192 1,342 Non-current 7 44 Equity 4,772 4,078 Group’s share of equity 2,386 1,795 Goodwill 966 2,936 Carrying amount of the interests 3,352 4,731 2015 2016 2017 Revenue — 39 366 Depreciation and amortization — (4 ) (19 ) Interest income — 25 37 Interest expense — — (17 ) Loss for the year from continuing operations — (417 ) (2,211 ) Other comprehensive income for the year, net of tax — — 81 Total comprehensive loss for the year, net of tax — (417 ) (2,130 ) Group’s share of loss for the year — (209 ) (959 ) (1) Including cash and cash equivalents of 2,251 million yen and 1,863 million yen as of December 31, 2016 and 2017, respectively. (2) Including current financial liabilities excluding trade and other payables and provisions of nil as of December 31, 2016 and 2017. |
Snow Corporation [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (2) Financial information on the Group’s investment in the associates is summarized as follows: (In millions of yen) Snow Corporation December 31, December 31, Current assets 4,365 2,469 Non-current 1,493 17,213 Current liabilities 506 1,180 Non-current 641 2,678 Equity 4,711 15,824 Proportion of the Group’s ownership 25.0 % 45.0 % Group’s share of equity 1,178 7,121 Goodwill and other adjustments 3,209 5,877 Carrying amount of the interests 4,387 12,998 Snow Corporation 2015 2016 2017 Revenue — — 271 Loss for the year from continuing operations — (952 ) (10,348 ) Other comprehensive income for the year, net of tax — — 131 Total comprehensive loss for the year, net of tax — (952 ) (10,217 ) Group’s share of loss for the year — (238 ) (4,531 ) |
Aggregated individually immaterial associates [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (3) The aggregate amount of individually immaterial associates accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Current assets 6,273 10,699 Non-current 6,875 7, 762 Current liabilities 3,131 4,025 Non-current 2,074 1,683 Equity 7,943 12,753 Group’s share of equity 2,127 3,368 Unrecognized loss (1) 116 — Goodwill 2,730 3,747 Carrying amount of the interests 4,973 7,115 2015 2016 2017 Revenue 1,108 6,322 12,657 Loss for the year from continuing operations (242 ) (1,642 ) (3,050 ) Other comprehensive income for the year, net of tax 31 2 84 Total comprehensive loss for the year, net of tax (211 ) (1,640 ) (2,966 ) Unrecognized loss (1) — 116 — Group’s share of loss for the year (78 ) (386 ) (831 ) (1) Since the Company’s share of losses in one of these individually immaterial associates exceeded the interest in that associate, the Company has discontinued recognizing its share of further losses. |
Significant Accounting Polici67
Significant Accounting Policies - Additional Information (Detail) - JPY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of performance obligations [Line Items] | |||
Gain loss on purchase, sales or cancellation of treasury shares | ¥ 0 | ||
Development expenditure capitalized | ¥ 0 | ¥ 0 | ¥ 0 |
Threshold percentage of value decline in available-for-sale financial assets to be considered other than temporary impairment | 20.00% | ||
IFRS 15 [member] | Line stickers and creator stickers [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Decrease in retained earnings | ¥ 967,000,000 | ||
IFRS 15 [member] | Line sponsored stickers [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Decrease in retained earnings | 760,000,000 | ||
IFRS 15 [member] | Line point Ad [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Decrease in retained earnings | 667,000,000 | ||
IFRS 15 [member] | Line advertising and portal advertising [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Decrease in retained earnings | ¥ 0 | ||
LINE stickers and creator stickers [member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 90 days | ||
Server Hosting Services [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 19 | ||
Period of recognizing revenue attributable to the post-termination-announcement performance obligations | 2 months | ||
Payment Processing Services [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 20 | ||
Period of recognizing revenue attributable to the post-termination-announcement performance obligations | 3 months | ||
Third Party Games [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 19 | ||
Internally developed games and applications [Member] | Bottom of Range [member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 2 months | 8 months | 11 months |
Internally developed games and applications [Member] | Top of Range [member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 30 months | 28 months | 21 months |
Sponsored Stickers [Member] | |||
Disclosure of performance obligations [Line Items] | |||
Estimated period of recognizing revenues for each type of communication and content sales services | 208-day |
Significant Accounting Polici68
Significant Accounting Policies - Estimated Useful Lives for Property and Equipment (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equipment (mainly consist of servers) [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P3Y | P3Y | P3Y |
Equipment (mainly consist of servers) [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P5Y | P5Y | P5Y |
Furniture and fixtures [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P3Y | P3Y | P3Y |
Furniture and fixtures [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P5Y | P5Y | P5Y |
Others [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P3Y | P3Y | P3Y |
Others [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Estimated useful lives for property and equipment | P5Y | P5Y | P5Y |
Significant Accounting Polici69
Significant Accounting Policies - Estimated Useful Lives for Intangible Assets with Finite Lives (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer relationships [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 7 years | 7 years | 7 years |
Domain Name [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 20 years | 20 years | 20 years |
Bottom of Range [member] | Software [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 2 years | 2 years | 2 years |
Bottom of Range [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 1 year | 1year | 1 year |
Top of Range [member] | Software [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 10 years | 10 years | 10 years |
Top of Range [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [Line Items] | |||
Estimated useful lives for the intangible assets with finite lives | 10 years | 10 years | 10 years |
Segment Information - Revenues
Segment Information - Revenues from Continuing Operations from Major Services (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of products and services [Line Items] | |||
Revenues from communication and content | ¥ 90,610 | ¥ 85,997 | ¥ 83,994 |
Revenues from advertising | 76,537 | 54,707 | 36,412 |
Revenues | 167,147 | 140,704 | 120,406 |
Communication [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from communication and content | 30,225 | 29,290 | 28,725 |
Content [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from communication and content | 40,144 | 44,784 | 49,284 |
Others [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from communication and content | 20,241 | 11,923 | 5,985 |
Messenger ads [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from advertising | 39,495 | 33,997 | 26,487 |
Performance ads [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from advertising | 26,609 | 10,524 | |
LINE advertising [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from advertising | 66,104 | 44,521 | 26,487 |
Portal advertising [member] | |||
Disclosure of products and services [Line Items] | |||
Revenues from advertising | ¥ 10,433 | ¥ 10,186 | ¥ 9,925 |
Segment Information - Revenue71
Segment Information - Revenues from External Customers and Non-current Operating Assets Classified by Country or Region (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [Line Items] | |||
Revenues | ¥ 167,147 | ¥ 140,704 | ¥ 120,406 |
Non-current operating assets | 39,370 | 14,570 | |
Japan (country of domicile) [member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenues | 121,283 | 100,939 | 84,780 |
Non-current operating assets | 23,089 | 10,661 | |
Taiwan [member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenues | 16,630 | 15,614 | 17,058 |
Korea [member] | |||
Disclosure of geographical areas [Line Items] | |||
Non-current operating assets | 10,605 | 3,219 | |
Others [member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenues | 29,234 | 24,151 | ¥ 18,568 |
Non-current operating assets | ¥ 5,676 | ¥ 690 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [Abstract] | |||
Information about major customers | No single customer accounted for 10 percent or more of the Group's total revenues | No single customer accounted for 10 percent or more of the Group's total revenues | No single customer accounted for 10 percent or more of the Group's total revenues |
Cash and Cash Equivalents - Bre
Cash and Cash Equivalents - Breakdown of Cash and Cash Equivalents (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents [Abstract] | ||||
Cash on hand | ¥ 13 | ¥ 8 | ||
Demand deposits | 123,593 | 134,690 | ||
Total cash and cash equivalents | ¥ 123,606 | ¥ 134,698 | ¥ 33,652 | ¥ 20,254 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [Line Items] | ||
Trade and other receivables, current | ¥ 42,892 | ¥ 28,167 |
Total trade and other receivables | 42,892 | 28,167 |
Gross carrying amount [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and other receivables, current | 43,375 | 29,108 |
Trade receivables, non-current | 14 | 82 |
Allowance for doubtful accounts [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and other receivables, current | (483) | (941) |
Trade receivables, non-current | ¥ (14) | ¥ (82) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Classes of current inventories [Abstract] | ||
Goods | ¥ 3,455 | ¥ 961 |
Total Inventories | ¥ 3,455 | ¥ 961 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [Abstract] | |||
Cost of goods recognized from continuing operations | ¥ 4,436 | ¥ 3,333 | ¥ 2,475 |
Inventory valuation losses recognized from continuing operations | ¥ 510 | ¥ 186 | ¥ 734 |
Property and Equipment - Change
Property and Equipment - Changes in Property and Equipment (Detail) - JPY (¥) ¥ in Millions | Jun. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | ¥ 9,029 | ¥ 10,501 | |
Ending balance | 15,125 | 9,029 | |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 20,285 | 18,203 | |
Acquisitions | 11,597 | 5,736 | |
Disposals | (2,390) | (3,336) | |
Acquisition through business combinations | 493 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (30) | ||
Exchange differences | 196 | (33) | |
Other | (99) | (255) | |
Ending balance | 30,082 | 20,285 | |
Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 11,256 | 7,702 | |
Disposals | (2,104) | (533) | |
Depreciation | 5,523 | 4,134 | |
Acquisition through business combinations | 300 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (5) | ||
Exchange differences | 69 | (14) | |
Other | (87) | (28) | |
Ending balance | 14,957 | 11,256 | |
Furniture and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 1,735 | 1,471 | |
Ending balance | 4,622 | 1,735 | |
Furniture and fixtures [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 3,817 | 2,950 | |
Acquisitions | 4,156 | 1,144 | |
Disposals | (1,305) | (74) | |
Acquisition through business combinations | 12 | ||
Exchange differences | 1 | (3) | |
Other | (180) | (200) | |
Ending balance | 6,501 | 3,817 | |
Furniture and fixtures [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,082 | 1,479 | |
Disposals | (1,291) | (57) | |
Depreciation | 1,146 | 680 | |
Acquisition through business combinations | 4 | ||
Exchange differences | 1 | (3) | |
Other | (63) | (17) | |
Ending balance | 1,879 | 2,082 | |
Equipment (mainly consist of servers) [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 6,574 | 6,132 | |
Ending balance | 9,794 | 6,574 | |
Equipment (mainly consist of servers) [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 15,529 | 12,253 | |
Acquisitions | 7,038 | 4,012 | |
Disposals | (911) | (665) | |
Acquisition through business combinations | 184 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (27) | ||
Exchange differences | 152 | (44) | |
Other | 204 | 0 | |
Ending balance | 22,196 | 15,529 | |
Equipment (mainly consist of servers) [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 8,955 | 6,121 | |
Disposals | (810) | (471) | |
Depreciation | 4,111 | 3,333 | |
Acquisition through business combinations | 125 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (4) | ||
Exchange differences | 53 | (13) | |
Other | (32) | (11) | |
Ending balance | 12,402 | 8,955 | |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,584 | ||
Land [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,584 | ||
Disposals | ¥ (2,584) | (2,584) | |
Construction-in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 184 | 60 | |
Ending balance | 42 | 184 | |
Construction-in-progress [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 184 | 60 | |
Acquisitions | 42 | 179 | |
Other | (184) | (55) | |
Ending balance | 42 | 184 | |
Others [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 536 | 254 | |
Ending balance | 667 | 536 | |
Others [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 755 | 356 | |
Acquisitions | 361 | 401 | |
Disposals | (174) | (13) | |
Acquisition through business combinations | 297 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (3) | ||
Exchange differences | 43 | 14 | |
Other | 61 | ||
Ending balance | 1,343 | 755 | |
Others [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 219 | 102 | |
Disposals | (3) | (5) | |
Depreciation | 266 | 121 | |
Acquisition through business combinations | 171 | ||
Deconsolidation of LINE BIZ Plus Ltd. | (1) | ||
Exchange differences | 15 | 2 | |
Other | 8 | ||
Ending balance | ¥ 676 | ¥ 219 |
Property and Equipment - Contra
Property and Equipment - Contractual Commitments for Acquisition of Property and Equipment (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about property, plant and equipment [Abstract] | ||
Contractual commitments for acquisition of property and equipment | ¥ 527 | ¥ 1,464 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - JPY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
Gross carrying amount [member] | Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [Line Items] | ||
Recognised finance lease as assets |
Goodwill and Other Intangible80
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Intangible Assets (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | ¥ 5,251 | ¥ 4,131 |
Ending balance | 23,253 | 5,251 |
Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 10,008 | 8,978 |
Acquisitions | 2,490 | 1,385 |
Acquisition through a business combination | 17,881 | 843 |
Deconsolidation of LINE BIZ Plus Ltd. | (126) | |
Disposal | (1,248) | (9) |
Exchange differences | 695 | (887) |
Other | 12 | (176) |
Ending balance | 29,838 | 10,008 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 4,757 | 4,847 |
Disposal | (277) | (8) |
Amortization | 1,627 | 966 |
Impairment | 214 | |
Exchange differences | 273 | (870) |
Other | (9) | (178) |
Ending balance | 6,585 | 4,757 |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 3,400 | 3,120 |
Ending balance | 16,767 | 3,400 |
Goodwill [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 5,592 | 5,852 |
Acquisition through a business combination | 13,114 | 416 |
Deconsolidation of LINE BIZ Plus Ltd. | (126) | |
Exchange differences | 387 | (550) |
Ending balance | 19,093 | 5,592 |
Goodwill [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 2,192 | 2,732 |
Exchange differences | 134 | (540) |
Ending balance | 2,326 | 2,192 |
Software [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 358 | 386 |
Ending balance | 988 | 358 |
Software [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 1,487 | 1,543 |
Acquisitions | 247 | 99 |
Acquisition through a business combination | 588 | 26 |
Disposal | (57) | (9) |
Exchange differences | 84 | (170) |
Other | 1 | (2) |
Ending balance | 2,350 | 1,487 |
Software [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 1,129 | 1,157 |
Disposal | (35) | (8) |
Amortization | 210 | 153 |
Exchange differences | 67 | (169) |
Other | (9) | (4) |
Ending balance | 1,362 | 1,129 |
Music rights [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 433 | 542 |
Exchange differences | 27 | (109) |
Ending balance | 460 | 433 |
Music rights [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 433 | 542 |
Exchange differences | 27 | (109) |
Ending balance | 460 | 433 |
Customer relationships [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 275 | |
Ending balance | 416 | 275 |
Customer relationships [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 487 | 108 |
Acquisition through a business combination | 249 | 401 |
Exchange differences | 5 | (22) |
Ending balance | 741 | 487 |
Customer relationships [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 212 | 108 |
Amortization | 108 | 125 |
Exchange differences | 5 | (21) |
Ending balance | 325 | 212 |
Game publishing rights [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Ending balance | 1,465 | |
Game publishing rights [Member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Acquisition through a business combination | 1,640 | |
Exchange differences | 109 | |
Ending balance | 1,749 | |
Game publishing rights [Member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Amortization | 270 | |
Exchange differences | 14 | |
Ending balance | 284 | |
Other intangible assets [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 1,218 | 625 |
Ending balance | 3,617 | 1,218 |
Other intangible assets [member] | Gross carrying amount [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 2,009 | 933 |
Acquisitions | 2,243 | 1,286 |
Acquisition through a business combination | 2,290 | |
Disposal | (1,191) | |
Exchange differences | 83 | (36) |
Other | 11 | (174) |
Ending balance | 5,445 | 2,009 |
Other intangible assets [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Beginning balance | 791 | 308 |
Disposal | (242) | |
Amortization | 1,039 | 688 |
Impairment | 214 | |
Exchange differences | 26 | (31) |
Other | 0 | (174) |
Ending balance | ¥ 1,828 | ¥ 791 |
Goodwill and Other Intangible81
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Intangible Assets (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Carrying amount, Intangible assets | ¥ 6,486 | ¥ 1,851 | |
LINE TV [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets acquired | 1,114 | ||
Gross carrying amount [member] | LINE TV [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Carrying amount, Intangible assets | ¥ 329 | ||
Domain Name [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Remaining useful life | 20 years | 20 years | 20 years |
Domain Name [member] | LINE TV [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets acquired | ¥ 651 | ||
Domain Name [member] | Gross carrying amount [member] | LINE TV [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Carrying amount, Intangible assets | 646 | ||
Trademark and Patented Technology [Member] | Gatebox Inc [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets acquired | 437 | ||
Trademark and Patented Technology [Member] | Gross carrying amount [member] | Gatebox Inc [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Carrying amount, Intangible assets | ¥ 375 | ||
Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Remaining useful life | 3 years | 2 years |
Goodwill and Other Intangible82
Goodwill and Other Intangible Assets - Contractual Commitments for Acquisition of Goodwill and Other Intangible Assets (Detail) ¥ in Millions | Dec. 31, 2017JPY (¥) |
Intangible assets [Member] | |
Disclosure of detailed information about intangible assets [Line Items] | |
Contractual commitments for acquisition of intangible assets | ¥ 215 |
Impairment - Carrying Amount of
Impairment - Carrying Amount of Goodwill Allocated to Each of Cash Generating Units for Impairment Testing (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of information for cash-generating units [Line Items] | |||
Goodwill | ¥ 16,767 | ¥ 3,400 | ¥ 5,812 |
LINE business and portal CGU [member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Goodwill | ¥ 16,767 | ¥ 3,400 | 3,120 |
MixRadio CGU [member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Goodwill | ¥ 2,692 |
Impairment - Significant Assump
Impairment - Significant Assumptions Used in Value in Use Calculations (Detail) - LINE business and portal CGU [member] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of information for cash-generating units [Line Items] | |||
Pre-tax discount rate | 10.30% | 11.70% | 14.70% |
Terminal growth rate | 1.60% | 1.10% | 1.40% |
Impairment - Additional Informa
Impairment - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of information for cash-generating units [Line Items] | |||
Impairment loss of other intangible assets | ¥ 214 | ¥ 1,447 | |
Impairment loss of property and equipment | |||
LINE business and portal CGU [member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Impairment loss of goodwill | |||
MixRadio Limited [member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Impairment loss of goodwill | 2,692 | ||
Impairment loss of other intangible assets | 1,374 | ||
Impairment loss of property and equipment | ¥ 54 | ||
Kiwiple [member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Impairment loss of other intangible assets | 134 | ||
LINE Games Global Gateway L.P.[member] | |||
Disclosure of information for cash-generating units [Line Items] | |||
Impairment loss of other intangible assets | ¥ 80 |
Provisions - Changes in Provisi
Provisions - Changes in Provisions (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [Line Items] | ||
Beginning balance | ¥ 2,084 | ¥ 1,782 |
Arising during the year | 4,990 | 1,306 |
Utilized | (2,922) | (543) |
Reversal | (233) | (439) |
Unwinding of discount and changes in the discount rate | 0 | 1 |
Increase due to business combinations | 87 | |
Exchange differences | 45 | (20) |
Other | 0 | (3) |
Ending balance | 4,051 | 2,084 |
Restoration obligations for operating lease properties [member] | ||
Disclosure of other provisions [Line Items] | ||
Beginning balance | 1,234 | 1,213 |
Arising during the year | 1,708 | 618 |
Utilized | (25) | (339) |
Reversal | (16) | (237) |
Unwinding of discount and changes in the discount rate | 0 | 1 |
Increase due to business combinations | 85 | |
Exchange differences | 44 | (19) |
Other | 0 | (3) |
Ending balance | 3,030 | 1,234 |
Promotional virtual credits reserve [member] | ||
Disclosure of other provisions [Line Items] | ||
Beginning balance | 509 | 290 |
Arising during the year | 2,945 | 490 |
Utilized | (2,686) | (161) |
Reversal | (162) | (110) |
Exchange differences | 1 | |
Ending balance | 607 | 509 |
Other [member] | ||
Disclosure of other provisions [Line Items] | ||
Beginning balance | 341 | 279 |
Arising during the year | 337 | 198 |
Utilized | (211) | (43) |
Reversal | (55) | (92) |
Increase due to business combinations | 2 | |
Exchange differences | 0 | (1) |
Ending balance | ¥ 414 | ¥ 341 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2016JPY (¥) | |
Restoration obligations for operating lease properties [member] | |
Disclosure of other provisions [Line Items] | |
Reversal due to change of estimated restoration obligations related to finalization of head office relocation obligation | ¥ 212 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Taxes Related to Each Component of Other Comprehensive Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax relating to components of other comprehensive income [Abstract] | |||
Remeasurement of defined benefit plans, Pretax | ¥ 2,093 | ¥ 674 | ¥ (1,722) |
Foreign currency translation adjustments, Pretax | 3,751 | (299) | (281) |
Reclassification adjustments for foreign currency translation adjustments, Pretax | (13) | 50 | |
Proportionate share of other comprehensive income of associates, Pretax | 106 | 3 | 15 |
Net change in fair value of available-for-sale financial assets, Pretax | (3,339) | (2,019) | 1,551 |
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Pretax | 1,090 | 293 | 1,790 |
Total, Pretax | 3,688 | (1,298) | 1,353 |
Remeasurement of defined benefit plans, Tax | (488) | (209) | 576 |
Foreign currency translation adjustments, Tax | (146) | (199) | 14 |
Reclassification adjustments for foreign currency translation adjustments, Tax | |||
Proportionate share of other comprehensive income of associates, Tax | (14) | 0 | (3) |
Net change in fair value of available-for-sale financial assets, Tax | 836 | 546 | 276 |
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Tax | (343) | (92) | (577) |
Total, Tax | (155) | 46 | 286 |
Remeasurement of defined benefit plans, Post tax | 1,605 | 465 | (1,146) |
Foreign currency translation adjustments, Post tax | 3,605 | (498) | (267) |
Reclassification adjustments for foreign currency translation adjustments, Post tax | (13) | 50 | |
Proportionate share of other comprehensive income of associates, Post tax | 92 | 3 | 12 |
Net change in fair value of available-for-sale financial assets, Post tax | (2,503) | (1,473) | 1,827 |
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Post tax | 747 | 201 | 1,213 |
Total other comprehensive income for the year, net of tax | ¥ 3,533 | ¥ (1,252) | ¥ 1,639 |
Income Taxes - Current and De89
Income Taxes - Current and Deferred Taxes Related to Items Directly Charged or Credited to Equity (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Total tax directly (credited) to equity | ¥ (34) | ¥ (271) |
Initial public offering [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Share issuance costs | (153) | |
Share issuance costs | (114) | |
Stock option 1 [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Share issuance costs | (9) | ¥ (4) |
Share issuance costs | (20) | |
Employee stock ownership plan [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Share issuance costs | ¥ (5) |
Income Taxes - Movements in Def
Income Taxes - Movements in Deferred Tax Assets and Deferred Tax Liabilities (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Amounts recognized under other comprehensive income | ¥ (155) | ¥ 46 | ¥ 286 |
Deferred tax liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | (2,119) | (2,534) | |
Amounts recorded under profit or loss | 445 | 75 | |
Amounts recognized under other comprehensive income | 466 | 446 | |
Other | (1,000) | (106) | |
Ending balance | (2,208) | (2,119) | (2,534) |
Deferred tax liabilities [member] | Available-for-sale financial assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | (1,627) | (2,107) | |
Amounts recorded under profit or loss | 266 | 36 | |
Amounts recognized under other comprehensive income | 466 | 446 | |
Other | (132) | (2) | |
Ending balance | (1,027) | (1,627) | (2,107) |
Deferred tax liabilities [member] | Prepaid expenses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | (345) | (350) | |
Amounts recorded under profit or loss | (11) | (41) | |
Other | 46 | ||
Ending balance | (356) | (345) | (350) |
Deferred tax liabilities [member] | Intangible assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | (103) | ||
Amounts recorded under profit or loss | 125 | 45 | |
Other | (846) | (148) | |
Ending balance | (824) | (103) | |
Deferred tax liabilities [member] | Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | (44) | (77) | |
Amounts recorded under profit or loss | 65 | 35 | |
Other | (22) | (2) | |
Ending balance | (1) | (44) | (77) |
Deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 19,344 | 17,632 | |
Amounts recorded under profit or loss | (1,544) | 1,927 | |
Amounts recognized under other comprehensive income | (621) | (400) | |
Other | (52) | 185 | |
Ending balance | 17,127 | 19,344 | 17,632 |
Deferred tax assets [member] | Tax losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 910 | 3,132 | |
Amounts recorded under profit or loss | (712) | (2,311) | |
Other | 61 | 89 | |
Ending balance | 259 | 910 | 3,132 |
Deferred tax assets [member] | Depreciation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 1,769 | 920 | |
Amounts recorded under profit or loss | 601 | 849 | |
Other | (110) | 0 | |
Ending balance | 2,260 | 1,769 | 920 |
Deferred tax assets [member] | Advances received [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 3,299 | 2,967 | |
Amounts recorded under profit or loss | 549 | 332 | |
Ending balance | 3,848 | 3,299 | 2,967 |
Deferred tax assets [member] | Deferred revenue [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 2,731 | 2,350 | |
Amounts recorded under profit or loss | (263) | 381 | |
Other | 3 | ||
Ending balance | 2,471 | 2,731 | 2,350 |
Deferred tax assets [member] | Restoration obligations for operating lease properties [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 57 | 208 | |
Amounts recorded under profit or loss | 159 | (151) | |
Other | (1) | 0 | |
Ending balance | 215 | 57 | 208 |
Deferred tax assets [member] | Accrued bonuses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 750 | 614 | |
Amounts recorded under profit or loss | 121 | 135 | |
Other | (117) | 1 | |
Ending balance | 754 | 750 | 614 |
Deferred tax assets [member] | Allowance for doubtful accounts [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 580 | 85 | |
Amounts recorded under profit or loss | (209) | 495 | |
Other | 6 | ||
Ending balance | 377 | 580 | 85 |
Deferred tax assets [member] | Other accrued expenses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 685 | 421 | |
Amounts recorded under profit or loss | (82) | 263 | |
Other | 134 | 1 | |
Ending balance | 737 | 685 | 421 |
Deferred tax assets [member] | Accrued enterprise taxes [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 466 | 248 | |
Amounts recorded under profit or loss | (223) | 218 | |
Other | (2) | ||
Ending balance | 241 | 466 | 248 |
Deferred tax assets [member] | Available-for-sale financial assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 644 | 558 | |
Amounts recorded under profit or loss | (387) | 80 | |
Amounts recognized under other comprehensive income | 27 | 8 | |
Other | (68) | (2) | |
Ending balance | 216 | 644 | 558 |
Deferred tax assets [member] | Share-based compensation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 1,097 | 719 | |
Amounts recorded under profit or loss | 77 | 378 | |
Other | (5) | ||
Ending balance | 1,169 | 1,097 | 719 |
Deferred tax assets [member] | Present value of defined benefit obligations [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 1,285 | 1,018 | |
Amounts recorded under profit or loss | 361 | 416 | |
Amounts recognized under other comprehensive income | (488) | (209) | |
Other | 26 | 60 | |
Ending balance | 1,184 | 1,285 | 1,018 |
Deferred tax assets [member] | Tax effect on investments in subsidiaries and associates [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 4,122 | 3,967 | |
Amounts recorded under profit or loss | (1,610) | 354 | |
Amounts recognized under other comprehensive income | (160) | (199) | |
Other | 24 | ||
Ending balance | 2,376 | 4,122 | 3,967 |
Deferred tax assets [member] | Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Beginning balance | 949 | 425 | |
Amounts recorded under profit or loss | 74 | 488 | |
Other | (3) | 36 | |
Ending balance | ¥ 1,020 | ¥ 949 | ¥ 425 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Reconcile to Amounts Presented in Consolidated Statements of Financial Position (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | ¥ 16,492 | ¥ 18,385 |
Deferred tax liabilities | (1,573) | (1,161) |
Gross carrying amount [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | 17,127 | 19,344 |
Deferred tax liabilities | (2,208) | (2,119) |
Adjustment to offset deferred tax assets and liabilities [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | (635) | (959) |
Deferred tax liabilities | ¥ 635 | ¥ 958 |
Income Taxes - Breakdown of Ded
Income Taxes - Breakdown of Deductible Temporary Differences (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Abstract] | ||
Deductible temporary differences | ¥ 35,997 | ¥ 20,591 |
Unused tax losses | 32,985 | 18,434 |
Unused tax credits | 157 | |
Total | ¥ 69,139 | ¥ 39,025 |
Income Taxes - Unused Tax Losse
Income Taxes - Unused Tax Losses (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax losses | ¥ 32,985 | ¥ 18,434 |
Less than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax losses | 792 | |
One to five years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax losses | 1,741 | 2,104 |
After five years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax losses | 12,965 | 3,826 |
No expiration date [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Unused tax losses | ¥ 17,487 | ¥ 12,504 |
Income Taxes - Unused Tax Credi
Income Taxes - Unused Tax Credits (Detail) ¥ in Millions | Dec. 31, 2017JPY (¥) |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |
Unused tax credits | ¥ 157 |
Less than one year [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |
Unused tax credits | 36 |
One to five years [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |
Unused tax credits | ¥ 121 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Abstract] | ||
Total amounts of taxable temporary differences relating to investments in subsidiaries and associates and joint ventures for which deferred tax liabilities are not recognized | ¥ 8,472 | ¥ 6,190 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Benefits/(Expenses) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax: | |||
Current income tax expenses | ¥ (8,818) | ¥ (10,162) | ¥ (7,595) |
Deferred tax: | |||
Changes related to origination and reversal of temporary differences | (1,107) | 1,949 | 8,758 |
Changes in the tax rate | 3 | (691) | (1,017) |
Income tax benefits/(expenses) | ¥ (9,922) | ¥ (8,904) | ¥ 146 |
Income Taxes - Components of 97
Income Taxes - Components of Income Tax Benefits/(Expenses) (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Major components of tax expense (income) [Abstract] | |||||
Previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences | ¥ 105 | ¥ 489 | ¥ 1,801 | ||
Deferred tax benefit from the reversal of previously written-down deferred tax assets | ¥ 105 | ¥ 541 | ¥ 5,699 | ||
Statutory income tax rate | 31.50% | 31.70% | 33.50% | 35.60% | 38.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [Abstract] | |||
(Loss)/profit before tax from continuing operations | ¥ 18,145 | ¥ 17,990 | ¥ (530) |
Loss before tax from discontinued operations | (19) | (2,726) | (11,503) |
Accounting (loss)/profit before tax | 18,126 | 15,264 | (12,033) |
Income tax benefits/(expenses) at a statutory rate of 31.7% (2015: 35.6% and 2016: 33.5%) | (5,744) | (5,119) | 4,289 |
Permanent non-deductible items | (353) | (2,703) | (3,386) |
Assessment of the recoverability of deferred tax assets | (2,932) | (752) | 2,214 |
Effects of changes in tax rate | 3 | (691) | (1,017) |
Differences in applicable tax rate of subsidiaries | 776 | (81) | (2,218) |
Tax effect on investment in subsidiaries and associates | 377 | 591 | 4,260 |
Gain on fair value measurement relating to the deconsolidation | 581 | ||
Share of loss of associates and joint ventures(6) | (1,836) | (279) | (50) |
Others | (207) | 293 | (31) |
Income tax (expenses)/benefits at an effective tax rate of 54.7% (2015: 33.7% and 2016: 53.5%) | (9,916) | (8,160) | 4,061 |
Income tax benefits/(expenses) reported in the statements of profit or loss | (9,922) | (8,904) | 146 |
Income tax benefits attributable to discontinued operations | ¥ 6 | ¥ 744 | ¥ 3,915 |
Income Taxes - Reconciliation99
Income Taxes - Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Income Taxes [Line Items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 105 | ¥ 489 | ¥ 1,801 |
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 32,985 | 18,434 | |
MixRadio Limited [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 4 | 361 | 2,368 |
Other subsidiaries [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 953 | 189 | 944 |
Korea [member] | Tax losses [member] | One subsidiary [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 3,092 | ||
Korea [member] | Tax losses [member] | Subsidiaries [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 107 | 222 | |
Korea [member] | Deductible temporary differences [member] | One subsidiary [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 2,434 | ||
Korea [member] | Deductible temporary differences [member] | Subsidiaries [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 0 | 256 | |
Japan (country of domicile) [member] | Subsidiaries [member] | |||
Disclosure Of Income Taxes [Line Items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | ¥ 2,407 | ¥ 966 |
Financial Assets and Financi100
Financial Assets and Financial Liabilities - Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IAS39 (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Trade and other receivables | ¥ 42,892 | ¥ 28,167 |
Other financial assets, current | 13,258 | 6,952 |
Other financial assets, non-current | 32,084 | 35,715 |
Trade and other payables | 28,810 | 21,532 |
Other financial liabilities, current | 28,003 | 24,497 |
Other financial liabilities non-current | 602 | |
Others [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities, current | 49 | |
Other financial liabilities non-current | 93 | |
Financial liabilities measured at amortized cost [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Trade and other payables | 28,810 | 21,532 |
Financial liabilities measured at amortized cost [member] | Deposits received [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities, current | 5,730 | 2,572 |
Financial liabilities measured at amortized cost [member] | Short-term borrowings [Member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities, current | 22,224 | 21,925 |
Financial liabilities measured at amortized cost [member] | Office security deposits received under sublease agreement [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities non-current | 23 | |
Financial liabilities at fair value through profit or loss, category [Member] | Put Option Liabilities [Member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities non-current | 486 | |
Held-to-maturity investments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 280 | 280 |
Loans and receivables [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Trade and other receivables | 42,892 | 28,167 |
Loans and receivables [member] | Time deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 12,002 | 764 |
Other financial assets, non-current | 10,000 | |
Loans and receivables [member] | Short-term loans [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 206 | 2 |
Loans and receivables [member] | Corporate bonds and other debt instruments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 849 | 4,012 |
Other financial assets, non-current | 7,986 | 2,632 |
Loans and receivables [member] | Guarantee deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 726 | 3,447 |
Loans and receivables [member] | Office security deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 5,709 | 4,858 |
Financial assets at fair value through profit or loss [member] | Conversion right and redemption right of preferred stock [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 1,862 | 325 |
Available-for-sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 6 | 1,000 |
Other financial assets, non-current | 15,388 | 14,141 |
Office security deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 195 | 1,170 |
Other [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 4 | |
Other financial assets, non-current | 133 | 32 |
Fair value [member] | Financial liabilities measured at amortized cost [member] | Office security deposits received under sublease agreement [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities non-current | 23 | |
Fair value [member] | Financial liabilities at fair value through profit or loss, category [Member] | Put Option Liabilities [Member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial liabilities non-current | 486 | |
Fair value [member] | Held-to-maturity investments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 291 | 294 |
Fair value [member] | Loans and receivables [member] | Time deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 10,000 | |
Fair value [member] | Loans and receivables [member] | Corporate bonds and other debt instruments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 8,036 | 2,632 |
Fair value [member] | Loans and receivables [member] | Office security deposits [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 5,546 | 4,739 |
Fair value [member] | Financial assets at fair value through profit or loss [member] | Conversion right and redemption right of preferred stock [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, non-current | 1,862 | 325 |
Fair value [member] | Available-for-sale financial assets [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Other financial assets, current | 6 | 1,000 |
Other financial assets, non-current | ¥ 15,388 | ¥ 14,141 |
Financial Assets and Financi101
Financial Assets and Financial Liabilities - Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IAS39 (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [Line Items] | |||
Minimum percentage of unused balance of virtual credits required to be secured as a certain amount of money under the Japanese Payment Services Act | 50.00% | ||
Other financial assets, non-current | ¥ 32,084 | ¥ 35,715 | |
Credit guarantee contracts with banks for compliance with the Japanese Payment Services Act | ¥ 12,500 | ¥ 10,100 | |
Guarantee fee rate for credit guarantee contracts with banks | 0.10% | 0.10% | |
Loss on impairment of available-for-sale financial assets | ¥ 1,761 | ¥ 293 | ¥ 1,790 |
Gain on available-for-sale financial assets | ¥ 751 | ||
Weighted average [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Weighted average interest rate | 0.10% | 0.10% | |
Held-to-maturity investments [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Other financial assets, non-current | ¥ 280 | ¥ 280 | |
Held-to-maturity investments [member] | Japanese government bonds [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Other financial assets, non-current | 280 | 280 | |
Loans and receivables [member] | Cash and cash equivalents [member] | Guarantee deposits [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Deposits made under requirements of the Japanese Payment Services Act | ¥ 635 | ¥ 3,445 |
Employment Benefits - Additiona
Employment Benefits - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥)yr | Dec. 31, 2016JPY (¥)yr | Dec. 31, 2015JPY (¥) | |
Disclosure of defined benefit plans [Line Items] | ||||
Expenses recognized in Consolidated Statements of Profit or Loss in relation to the defined contribution plans | ¥ 47,000,000 | ¥ 0 | ¥ 0 | |
Employer contribution to be paid | ¥ 24,000,000 | |||
Average duration of defined benefit plan obligations | yr | 13.3 | 15.2 | ||
Bottom of Range [member] | ||||
Disclosure of defined benefit plans [Line Items] | ||||
Percentage of plan assets outstanding | 80.00% |
Employment Benefits - Liabiliti
Employment Benefits - Liabilities for Defined Benefit Obligations (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [Line Items] | ||
Present value of defined benefit obligations | ¥ 6,189 | ¥ 6,204 |
Plan assets | (27) | |
Liabilities for post-employment benefits | 6,162 | 6,204 |
Unfunded [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Present value of defined benefit obligations | 6,089 | 6,204 |
Liabilities for post-employment benefits | 6,089 | ¥ 6,204 |
Funded [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Present value of defined benefit obligations | 100 | |
Plan assets | (27) | |
Liabilities for post-employment benefits | ¥ 73 |
Employment Benefits - Expenses
Employment Benefits - Expenses Related to Defined Benefit Plans Recognized in Consolidated Statements of Profit or Loss as Operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in net defined benefit liability (asset) [Abstract] | |||
Current service costs | ¥ 1,933 | ¥ 1,620 | ¥ 1,025 |
Interest costs | 208 | 127 | 81 |
Total | ¥ 2,141 | ¥ 1,747 | ¥ 1,106 |
Employment Benefits - Movements
Employment Benefits - Movements in Present Value of Defined Benefit Obligations (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [Line Items] | |||
Current service costs | ¥ 1,933 | ¥ 1,620 | ¥ 1,025 |
Interest costs | 208 | 127 | 81 |
Present value of defined benefit obligations [member] | |||
Disclosure of net defined benefit liability (asset) [Line Items] | |||
Beginning balance | 6,204 | 5,495 | |
Current service costs | 1,933 | 1,620 | |
Interest costs | 208 | 127 | |
Remeasurement losses/(gains): | |||
Actuarial losses arising from changes in demographic assumptions | (28) | 7,742 | |
Actuarial (gains)/losses arising from changes in financial assumptions | (1,513) | (8,314) | |
Experience adjustments | (552) | (102) | |
Payments from the plan | (453) | (174) | |
Net transfer | (57) | 49 | |
Increase due to business combinations | 261 | ||
Exchange differences on translation of foreign operations | 186 | (239) | |
Ending balance | ¥ 6,189 | ¥ 6,204 | ¥ 5,495 |
Employment Benefits - Moveme106
Employment Benefits - Movements in the Plan Assets (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [Line Items] | |||
Interest income | ¥ (208) | ¥ (127) | ¥ (81) |
Plan assets at the end of year | (27) | ||
Plan assets [member] | |||
Disclosure of net defined benefit liability (asset) [Line Items] | |||
Interest income | 2 | ||
Employer contributions | 31 | ||
Benefits paid | (6) | ||
Exchange differences on translation of foreign operations | |||
Plan assets at the end of year | ¥ 27 |
Employment Benefits - Principal
Employment Benefits - Principal Actuarial Assumptions Used for Measuring Defined Benefit Expenses and Defined Benefit Obligation (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |||
Discount rate | 3.40% | 2.60% | |
Bottom of Range [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |||
Discount rate | 3.20% | ||
Weighted average of salary increase | 4.50% | 8.60% | 9.50% |
Top of Range [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |||
Discount rate | 3.70% | ||
Weighted average of salary increase | 7.70% | 11.30% | 14.40% |
Employment Benefits - Sensitivi
Employment Benefits - Sensitivity Analysis for Impact of Changes in Certain Significant Actuarial Assumptions Leaving All Other Assumptions Constant (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
100 basis point increase | ¥ (5,019) | ¥ (842) |
100 basis point decrease | 6,561 | 1,040 |
Salary increase rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
100 basis point increase | 7,057 | 972 |
100 basis point decrease | ¥ (5,620) | ¥ (810) |
Employment Benefits - Estimated
Employment Benefits - Estimated Future Benefit Payments within Ten Years from December 31, 2017 (Detail) ¥ in Millions | Dec. 31, 2017JPY (¥) |
Less than one year [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | ¥ 242 |
2019 [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | 320 |
2020 [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | 392 |
2021 [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | 468 |
2022 [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | 1,000 |
2023-2027 [member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimated future benefit payments | ¥ 4,250 |
Leases-Group as Lessee - Additi
Leases-Group as Lessee - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of finance lease and operating lease by lessee [Abstract] | |||
Lives of significant operating leases | P5Y | ||
Operating lease expenses | ¥ 5,468 | ¥ 4,580 | ¥ 2,840 |
Minimum lease payment expenses | 3,759 | 3,309 | 1,891 |
Variable lease payment expenses | ¥ 1,709 | ¥ 1,271 | ¥ 949 |
Leases-Group as Lessee - Future
Leases-Group as Lessee - Future Minimum Rentals Payable under Non-cancelable Operating Leases (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis of operating lease payments [Line Items] | ||
Future minimum rentals payable under non-cancelable operating leases | ¥ 14,362 | ¥ 16,045 |
Less than one year [member] | ||
Disclosure of maturity analysis of operating lease payments [Line Items] | ||
Future minimum rentals payable under non-cancelable operating leases | 4,139 | 3,945 |
One to five years [member] | ||
Disclosure of maturity analysis of operating lease payments [Line Items] | ||
Future minimum rentals payable under non-cancelable operating leases | ¥ 10,223 | ¥ 12,100 |
Leases-Group as Lessor - Future
Leases-Group as Lessor - Future Minimum Rentals (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessor [Line Items] | ||
Future Minimum Rentals Payable Under Non-Cancelable Operating Leases | ¥ 48 | ¥ 19 |
Less than one year [member] | ||
Disclosure of finance lease and operating lease by lessor [Line Items] | ||
Future Minimum Rentals Payable Under Non-Cancelable Operating Leases | 23 | ¥ 19 |
One to five years [member] | ||
Disclosure of finance lease and operating lease by lessor [Line Items] | ||
Future Minimum Rentals Payable Under Non-Cancelable Operating Leases | ¥ 25 |
Leases-Group as Lessor - Additi
Leases-Group as Lessor - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of finance lease and operating lease by lessor [Abstract] | |||
Sublease income recognized | ¥ 49 | ¥ 54 | ¥ 51 |
Issued Capital and Reserves - M
Issued Capital and Reserves - Movements of Authorized Shares and Shares Issued (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017JPY (¥)shares | Dec. 31, 2016JPY (¥)shares | Dec. 31, 2015JPY (¥)shares | |
Disclosure of classes of share capital [Line Items] | |||
Authorized shares (Share capital with no-par value), Beginning balance | 690,000,000 | 690,000,000 | 400,000,000 |
Authorized shares (Share capital with no-par value), Conversion between common shares and class A shares | 290,000,000 | ||
Authorized shares (Share capital with no-par value), Ending balance | 690,000,000 | 690,000,000 | 690,000,000 |
Share capital, Beginning balance | ¥ | ¥ 77,856 | ||
Share capital, Initial public offering | ¥ | ¥ 126,277 | ||
Share capital, Ending balance | ¥ | ¥ 92,369 | ¥ 77,856 | |
Common shares [member] | |||
Disclosure of classes of share capital [Line Items] | |||
Shares issued (Share capital with no-par value), Beginning balance | 217,775,500 | 174,992,000 | |
Shares issued (Share capital with no-par value), Conversion between common shares and class A shares | 174,992,000 | (174,992,000) | |
Shares issued (Share capital with no-par value), Initial public offering | 40,250,000 | ||
Shares issued (Share capital with no-par value), Exercise of stock options | 19,713,500 | 2,533,500 | |
Shares issued (Share capital with no-par value), Issuance of common shares | 1,007,810 | ||
Shares issued (Share capital with no-par value), Ending balance | 238,496,810 | 217,775,500 | |
Class A shares [member] | |||
Disclosure of classes of share capital [Line Items] | |||
Authorized shares (Share capital with no-par value), Beginning balance | 190,872,500 | ||
Authorized shares (Share capital with no-par value), Ending balance | 190,872,500 | ||
Shares issued (Share capital with no-par value), Beginning balance | 174,992,000 | ||
Shares issued (Share capital with no-par value), Conversion between common shares and class A shares | (174,992,000) | 174,992,000 | |
Shares issued (Share capital with no-par value), Ending balance | 174,992,000 | ||
Share capital [member] | |||
Disclosure of classes of share capital [Line Items] | |||
Share capital, Beginning balance | ¥ | ¥ 77,856 | ¥ 12,596 | ¥ 12,596 |
Share capital, Initial public offering | ¥ | 63,424 | ||
Share capital, Exercise of stock options | ¥ | 12,513 | 1,836 | |
Share capital, Issuance of common shares | ¥ | 2,000 | ||
Share capital, Ending balance | ¥ | ¥ 92,369 | ¥ 77,856 | ¥ 12,596 |
Issued Capital and Reserves 115
Issued Capital and Reserves - Movements of Authorized Shares and Shares Issued (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Jul. 14, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | Jul. 18, 2017 | Dec. 31, 2016 | Aug. 16, 2016 | Dec. 31, 2014 |
Disclosure of classes of share capital [Line Items] | |||||||
Authorized shares (Share capital with no-par value) | 690,000,000 | 690,000,000 | 690,000,000 | 400,000,000 | |||
Number of shares issued | 1,007,810 | ||||||
Total issued shares | ¥ 4,000 | ||||||
Increase in share capital | ¥ 2,000 | ||||||
Trust And Custody Services Bank Ltd [member] | |||||||
Disclosure of classes of share capital [Line Items] | |||||||
Number of shares issued | 1,007,810 | ||||||
Common shares [member] | |||||||
Disclosure of classes of share capital [Line Items] | |||||||
Voting rights under dual class structure of share capital | Each common share has one vote per unit of 100 shares | ||||||
Common shares issued through the initial public offering of new shares | 35,000,000 | ||||||
Shares issued upon exercise of options to purchase additional common shares in an allotment of new shares | 5,250,000 | ||||||
Number of shares issued | 238,496,810 | 217,775,500 | 174,992,000 | ||||
Class A shares [member] | |||||||
Disclosure of classes of share capital [Line Items] | |||||||
Voting rights under dual class structure of share capital | Each class A share has one vote per unit of 10 shares | ||||||
Authorized shares (Share capital with no-par value) | 190,872,500 | ||||||
Number of shares issued | 174,992,000 |
Issued Capital and Reserves 116
Issued Capital and Reserves - Movements in Share Premium (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reserves within equity [Line Items] | |||
Share premium, Beginning balance | ¥ 91,208 | ||
Share-based payments | 1,882 | ¥ 9,520 | ¥ 11,213 |
Change in ownership interest in a subsidiary without losing control | (254) | (2) | |
Share premium, Ending balance | 93,560 | 91,208 | |
Share-based payments [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Share premium, Beginning balance | 21,935 | 15,023 | 3,810 |
Share-based payments | 1,882 | 9,520 | 11,213 |
Exercise of stock options | (16,746) | (2,548) | |
Forfeiture of stock options | (9) | (60) | |
Share premium, Ending balance | 7,062 | 21,935 | 15,023 |
Common control business combinations [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Share premium, Beginning balance | 294 | 294 | 294 |
Share premium, Ending balance | 294 | 294 | 294 |
Others [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Share premium, Beginning balance | 68,979 | 3,666 | 3,668 |
Change in ownership interest in a subsidiary without losing control | (2) | ||
Exercise of stock options | 15,721 | 2,460 | |
Initial public offering | 63,424 | ||
Issuance of common shares | 2,000 | ||
Cost related to initial public offering | (73) | (571) | |
Acquisition of non-controlling interests | (423) | ||
Share premium, Ending balance | 86,204 | 68,979 | 3,666 |
Share premium [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Share premium, Beginning balance | 91,208 | 18,983 | 7,772 |
Share-based payments | 1,882 | 9,520 | 11,213 |
Change in ownership interest in a subsidiary without losing control | (423) | (2) | |
Exercise of stock options | (1,025) | (88) | |
Forfeiture of stock options | (9) | (60) | |
Initial public offering | 63,424 | ||
Issuance of common shares | 2,000 | ||
Cost related to initial public offering | (73) | (571) | |
Acquisition of non-controlling interests | (423) | ||
Share premium, Ending balance | ¥ 93,560 | ¥ 91,208 | ¥ 18,983 |
Issued Capital and Reserves 117
Issued Capital and Reserves - Movements in Share Premium (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Jul. 14, 2016 | Jun. 15, 2015 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 18, 2017 | Dec. 31, 2016 | Aug. 16, 2016 |
Disclosure of reserves within equity [Line Items] | ||||||||||
Number of common shares represented by each stock option | 500 | 500 | 500 | 500 | ||||||
Number of shares issued | 1,007,810 | |||||||||
Total issued shares | ¥ 4,000 | |||||||||
Increase in share capital | ¥ 2,000 | |||||||||
Minimum percentage required under the Companies Act of Japan for proceeds of certain issuances of share capital credited to share capital | 50.00% | |||||||||
Trust And Custody Services Bank Ltd [member] | ||||||||||
Disclosure of reserves within equity [Line Items] | ||||||||||
Number of shares issued | 1,007,810 | |||||||||
Class A stock options [member] | ||||||||||
Disclosure of reserves within equity [Line Items] | ||||||||||
Number of common shares represented by each stock option | 500 | |||||||||
Common stock options [member] | Granted on December 17, 2012 [member] | ||||||||||
Disclosure of reserves within equity [Line Items] | ||||||||||
Number of stock options converted to other class due to amendment of articles of incorporation | 24,724 | |||||||||
Common stock options [member] | Granted on February 4, 2015 [member] | ||||||||||
Disclosure of reserves within equity [Line Items] | ||||||||||
Number of stock options converted to other class due to amendment of articles of incorporation | 6,949 | |||||||||
Common shares [member] | ||||||||||
Disclosure of reserves within equity [Line Items] | ||||||||||
Common shares issued through the initial public offering of new shares | 35,000,000 | |||||||||
Shares issued upon exercise of options to purchase additional common shares in an allotment of new shares | 5,250,000 | |||||||||
Number of shares issued | 238,496,810 | 174,992,000 | 217,775,500 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of reserves within equity [Abstract] | |
Minimum percentage required under the Companies Act of Japan for dividends from surplus be appropriated as capital reserve or legal earnings reserve | 10.00% |
Threshold percentage specified under the Companies Act of Japan for aggregate amount capital reserve and legal earnings reserve, over which the appropriation may cease | 25.00% |
Issued Capital and Reserves - S
Issued Capital and Reserves - Summary of Movement of Treasury Shares (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2017JPY (¥)shares | |
Disclosure of Movement of Treasury Shares [abstract] | |
Increase during the year(1) | ¥ | ¥ 4,000 |
Decrease during the year(2) | ¥ | 0 |
Treasury shares, Ending balance | ¥ | ¥ 4,000 |
Increase during the year | shares | 1,007,810 |
Decrease during the year | shares | (100) |
Treasury shares, Ending balance | shares | 1,007,710 |
Issued Capital and Reserves 120
Issued Capital and Reserves - Summary of Movement of Treasury Shares (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jul. 18, 2017 | |
Number of shares issued | 1,007,810 | |
Total issued shares | ¥ 4,000 | |
Trust And Custody Services Bank Ltd [member] | ||
Number of shares issued | 1,007,810 |
Supplemental Cash Flow Infor121
Supplemental Cash Flow Information - Additional Information (Detail) ฿ in Millions, ¥ in Millions | Jul. 24, 2017 | Jun. 19, 2017JPY (¥) | May 30, 2017 | Apr. 25, 2016 | Aug. 31, 2017 | May 31, 2017 | Dec. 31, 2017JPY (¥) | Dec. 31, 2017THB (฿) | Dec. 31, 2016JPY (¥) | Jul. 18, 2017shares | May 01, 2017shares |
Supplemental Cash Flow Information [Line Items] | |||||||||||
Gain on divestiture of business and subsidiaries | ¥ 10,444 | ¥ 1,731 | |||||||||
Proceeds from short-term borrowings | 22,080 | ||||||||||
Repayments of short-term borrowings | ¥ 42,833 | ||||||||||
Number of shares issued | shares | 1,007,810 | ||||||||||
Increase in share capital | 2,000 | ||||||||||
Increase in share premium | 2,000 | ||||||||||
Increase in treasury shares | ¥ 4,000 | ||||||||||
LINE BIZ Plus Ltd. (subsequently renamed to RABBIT LINE PAY COMPANY LIMITED) [Member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Joint venture ownership percentage under equity method | 100.00% | 50.00% | 50.00% | ||||||||
Re-measurement to fair value of investment retained | ¥ 2,384 | ||||||||||
Issuance of new shares | ฿ | ฿ 750 | ||||||||||
Gain on divestiture of business and subsidiaries | ¥ 1,731 | ||||||||||
Next Floor Corporation [member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Loan provided | ¥ 1,976 | ||||||||||
Percentage of ownership | 51.00% | 51.00% | |||||||||
Snow Corporation [member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Percentage of ownership | 45.00% | 45.00% | 25.00% | ||||||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Number of newly issued common shares received in exchange for transfer of business | shares | 208,455 | ||||||||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | Ultimate Parent Company [member] | NAVER Corporation [member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Percentage of ownership in Snow Corporation held by ultimate parent company | 55.00% | 55.00% | 75.00% | ||||||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | Snow Corporation [member] | |||||||||||
Supplemental Cash Flow Information [Line Items] | |||||||||||
Percentage of ownership | 25.00% | 48.60% | 48.60% | 48.60% | 25.00% | ||||||
Percentage of ownership in Snow Corporation held by ultimate parent company | 45.00% |
Supplemental Cash Flow Infor122
Supplemental Cash Flow Information - Summary of Assets Liabilities and Other Items Transferred in Connection with Deconsolidation (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | ||||
Cash and cash equivalents | ¥ (123,606) | ¥ (134,698) | ¥ (33,652) | ¥ (20,254) |
Non-current assets | (112,790) | (81,382) | ||
Current liabilities | 101,417 | 86,436 | ||
Non-current liabilities | 12,045 | 8,630 | ||
Exchange differences on translation of foreign operations: Reclassification to profit or loss | (13) | ¥ 50 | ||
LINE BIZ Plus Ltd. (subsequently renamed to RABBIT LINE PAY COMPANY LIMITED) [Member] | ||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | ||||
Cash and cash equivalents | 482 | |||
Other current assets | 19 | |||
Non-current assets | 28 | |||
Current liabilities | (71) | |||
Non-current liabilities | (4) | |||
Goodwill | 150 | |||
Non-controlling interests | 0 | |||
Exchange differences on translation of foreign operations: Reclassification to profit or loss | 49 | |||
Total | ¥ 653 |
Supplemental Cash Flow Infor123
Supplemental Cash Flow Information - Assets, Liabilities and Other Items of Bonsai Garage Corporation Transferred in Connection with Deconsolidation (Detail) - JPY (¥) ¥ in Millions | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Cash and cash equivalents | ¥ 123,606 | ¥ 134,698 | ¥ 33,652 | ¥ 20,254 | |
Current liabilities | (101,417) | (86,436) | |||
Gain on divestiture of business and subsidiary | 10,444 | 1,731 | |||
Cash disposed on loss of control of subsidiary | ¥ (581) | ¥ (485) | |||
Bonsai Garage Corporation [member] | |||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Cash and cash equivalents | ¥ 3 | ||||
Other current assets | 10 | ||||
Current liabilities | (34) | ||||
Gain on divestiture of business and subsidiary | 21 | ||||
Consideration received | 0 | ||||
Cash disposed on loss of control of subsidiary | ¥ (3) |
Supplemental Cash Flow Infor124
Supplemental Cash Flow Information - Assets, Liabilities and Other Items of Camera Application Business Transferred in Connection with Deconsolidation (Detail) - JPY (¥) ¥ in Millions | May 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | ¥ 190,649 | ¥ 174,707 | |||
Cash and cash equivalents | 123,606 | 134,698 | ¥ 33,652 | ¥ 20,254 | |
Non-current assets | 112,790 | 81,382 | |||
Current liabilities | (101,417) | (86,436) | |||
Non-current liabilities | ¥ (12,045) | ¥ (8,630) | |||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | |||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | ¥ 603 | ||||
Cash and cash equivalents | 581 | ||||
Other current assets | 22 | ||||
Non-current assets | 71 | ||||
Current liabilities | (133) | ||||
Non-current liabilities | (334) | ||||
Net assets transferred | 207 | ||||
Consideration received | 10,651 | ||||
Gain on transfer | ¥ 10,444 |
Supplemental Cash Flow Infor125
Supplemental Cash Flow Information - Movements on Liabilities from Financing Activities (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2017JPY (¥) | |
Disclosure of detailed information about borrowings [Line Items] | |
Net liabilities, Beginning balance | ¥ 21,925 |
Cash flows | (108) |
Increase due to business combinations | 496 |
Items such as foreign currency translation adjustments | 4 |
Net liabilities, Ending balance | 22,317 |
Short-term borrowings [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Net liabilities, Beginning balance | 21,925 |
Cash flows | (107) |
Increase due to business combinations | 405 |
Items such as foreign currency translation adjustments | 1 |
Net liabilities, Ending balance | 22,224 |
Borrowings which are due after one year [member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Cash flows | (1) |
Increase due to business combinations | 91 |
Items such as foreign currency translation adjustments | 3 |
Net liabilities, Ending balance | ¥ 93 |
Revenues - Revenues by Category
Revenues - Revenues by Category (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [Abstract] | |||
Sale of goods | ¥ 10,823 | ¥ 8,056 | ¥ 4,250 |
Rendering of services | 154,356 | 131,201 | 115,515 |
Royalties | 1,968 | 1,447 | 641 |
Revenues | ¥ 167,147 | ¥ 140,704 | ¥ 120,406 |
Other Income and Expenses - Sum
Other Income and Expenses - Summary of Other Operating Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [Abstract] | |||
Virtual credits breakage income | ¥ 815 | ¥ 1,491 | ¥ 347 |
Gain on divestiture of business and subsidiaries | 10,444 | 1,731 | |
Gain on sale of land | 2,461 | ||
Others | 752 | 209 | 127 |
Total | ¥ 12,011 | ¥ 5,892 | ¥ 474 |
Other Income and Expenses - 128
Other Income and Expenses - Summary of Other Operating Income (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Jun. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Income And Expenses [Line Items] | |||
Gain on sale of land | ¥ 2,461 | ||
Gross carrying amount [member] | |||
Other Income And Expenses [Line Items] | |||
Carrying amount of land sold | ¥ 2,390 | 3,336 | |
Land [member] | |||
Other Income And Expenses [Line Items] | |||
Sale price of land | ¥ 5,050 | ||
Gain on sale of land | 2,461 | ||
Land [member] | Gross carrying amount [member] | |||
Other Income And Expenses [Line Items] | |||
Carrying amount of land sold | ¥ 2,584 | ¥ 2,584 |
Other Income and Expenses - 129
Other Income and Expenses - Summary of Other Operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [Abstract] | |||
Rent | ¥ 6,143 | ¥ 3,529 | ¥ 2,302 |
Travel | 2,259 | 1,737 | 1,851 |
Supplies | 2,378 | 1,154 | 723 |
Taxes and dues | 1,516 | 801 | 250 |
Professional fees | 2,182 | 2,030 | 2,256 |
Cost of goods | 4,946 | 3,519 | 3,209 |
Training | 1,344 | 1,006 | 823 |
Others | 4,635 | 4,600 | 3,018 |
Total | ¥ 25,403 | ¥ 18,376 | ¥ 14,432 |
Other Income and Expenses - 130
Other Income and Expenses - Summary of Other Non-operating Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [Abstract] | |||
Gain on financial assets at fair value through profit or loss | ¥ 1,096 | ¥ 111 | |
Dividend income | 69 | ¥ 4 | 46 |
Gain on sale of financial assets | 751 | ||
Others | 47 | 5 | |
Total | ¥ 1,963 | ¥ 9 | ¥ 157 |
Other Income and Expenses - 131
Other Income and Expenses - Summary of Other Non-operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [Abstract] | |||
Loss on financial assets at fair value through profit or loss | ¥ 118 | ¥ 656 | |
Loss on impairment of available-for-sale financial assets | 1,761 | 293 | ¥ 1,790 |
Loss from derivatives | 60 | 62 | |
Others | 109 | 53 | 35 |
Total | ¥ 1,988 | ¥ 1,062 | ¥ 1,887 |
Discontinued Operations - Aggre
Discontinued Operations - Aggregated Results and Cash Flow Information of Discontinued Operations (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Discontinued Operations [line items] | |||
Loss before tax from discontinued operations | ¥ 19 | ¥ 2,726 | ¥ 11,503 |
Income tax benefits on disposal | 6 | 744 | 3,915 |
Discontinued Operations: MixRadio Limited [Member] | |||
Disclosure of Discontinued Operations [line items] | |||
Revenues | 444 | 264 | |
Other income | 9 | ||
Expenses | (19) | (3,179) | (11,767) |
Loss before tax from discontinued operations | (19) | (2,726) | (11,503) |
Income tax benefits on disposal | 6 | 744 | 3,915 |
Loss for the year from discontinued operations (attributable to the shareholders of the Company) | ¥ (13) | ¥ (1,982) | ¥ (7,588) |
Discontinued Operations - Ag133
Discontinued Operations - Aggregated Results and Cash Flow Information of Discontinued Operations (Parenthetical) (Detail) - Discontinued Operations: MixRadio Limited [Member] ¥ in Millions | 12 Months Ended |
Dec. 31, 2016JPY (¥) | |
Disclosure of Discontinued Operations [line items] | |
Employee termination benefits | ¥ 1,165 |
Office lease termination fees | ¥ 126 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Information of Discontinued Operations (Detail) - Discontinued Operations: MixRadio Limited [Member] - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Discontinued Operations [line items] | |||
Operating | ¥ (136) | ¥ (4,654) | ¥ (6,457) |
Investing | 22 | (2,427) | |
Financing | 0 | 0 | 0 |
Net cash outflow | ¥ (136) | ¥ (4,632) | ¥ (8,884) |
Earnings per Share - Profit or
Earnings per Share - Profit or Loss and Weighted Average Number of Shares Used in Calculation of Earnings per Share (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [Line Items] | |||
Profit for the year attributable to the shareholders of the Company from continuing operations | ¥ 8,091 | ¥ 8,745 | ¥ 6 |
Loss for the year attributable to the shareholders of the Company from discontinued operations | (13) | (1,982) | (7,588) |
Total (loss)/profit for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share | ¥ 8,078 | ¥ 6,763 | ¥ (7,582) |
Weighted average number of common and class A shares for basic earnings per share(1) | 220,945,548 | 194,083,995 | 174,992,000 |
Effect of dilution: Stock options | 16,559,789 | 20,790,013 | 18,805,566 |
Employee Stock Ownership Plan (J-ESOP) | 47,369 | ||
Weighted average number of total common and class A shares adjusted for the effect of dilution(1) | 237,552,706 | 214,874,008 | 193,797,566 |
Common Shares And Class A Shares [member] | |||
Earnings per share [Line Items] | |||
Weighted average number of common and class A shares for basic earnings per share(1) | 221,405,391 | 194,083,995 | 174,992,000 |
Treasury shares [member] | |||
Earnings per share [Line Items] | |||
Weighted average number of common and class A shares for basic earnings per share(1) | (459,843) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | Jul. 18, 2017shares | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 |
Earnings per share [Line Items] | |||||
Number of stock options granted | 23,860 | ||||
Number of equivalent common shares upon exercise of stock options granted | 2,386,000 | ||||
Number of common shares issued | 1,007,810 | ||||
Directors and executive officers of the Company and its subsidiary [Member] | |||||
Earnings per share [Line Items] | |||||
Number of stock options granted | 23,860 | ||||
Number of equivalent common shares upon exercise of stock options granted | 2,386,000 | ||||
Common stock options [member] | |||||
Earnings per share [Line Items] | |||||
Outstanding stock options, with a dilutive impact on profit per share from continuing operations | 5,577,000 | 9,848,000 | 22,911,500 | 20,217,500 | |
Number of equivalent common shares upon exercise of stock options granted | 2,386,000 | 5,773,500 | |||
Class A stock options [member] | |||||
Earnings per share [Line Items] | |||||
Outstanding stock options, with a dilutive impact on profit per share from continuing operations | 15,836,500 | ||||
Employee stock ownership plan [member] | |||||
Earnings per share [Line Items] | |||||
Number of common shares issued | 1,007,810 | ||||
Stock options and ESOP [member] | |||||
Earnings per share [Line Items] | |||||
Outstanding stock options, with a dilutive impact on profit per share from continuing operations | 5,828,302 |
Financial Risk Management - Max
Financial Risk Management - Maximum Amounts of Possible Financial Loss Due to Credit Risk (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | ¥ 194,438 | ¥ 191,021 |
Percentage of the Group's trade and other receivables representing significant concentrations of credit risk with two payment processing service providers | 30.50% | 38.50% |
Demand deposits [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | ¥ 123,593 | ¥ 134,690 |
Time deposits [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 12,002 | 10,764 |
Loan receivable [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 206 | 2 |
Guarantee deposits [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 726 | 3,447 |
Trade and other receivables [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 42,892 | 28,167 |
Japanese government bonds [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 280 | 280 |
Corporate bonds and other debt instruments [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | 8,835 | 7,643 |
Office security deposits [member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Maximum amounts of possible financial loss due to credit risk | ¥ 5,904 | ¥ 6,028 |
Financial Risk Management - Mov
Financial Risk Management - Movement in Allowance for Doubtful Accounts Attributable to Trade and Other Receivables, and Other Financial Assets Current (Detail) - Trade and other receivables, and other financial assets current [member] - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [Line Items] | ||
Beginning balance | ¥ 1,077 | ¥ 430 |
Provision for the year | 83 | 663 |
Reversal | (515) | (9) |
Utilized | (204) | (9) |
Acquisition of subsidiary | 44 | |
Translation | 7 | 2 |
Ending balance | ¥ 492 | ¥ 1,077 |
Financial Risk Management - Boo
Financial Risk Management - Book Values of Financial Liabilities Based on Remaining Maturities (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||
Trade and other payables | ¥ 28,810 | ¥ 21,532 |
Short-term borrowings | 22,224 | 21,925 |
Deposits received | 5,730 | 2,572 |
Office security deposits received under sublease agreement | 23 | |
Put option liabilities | 486 | |
Total | 57,273 | 46,029 |
Trade and other payables, Contractual cash outflows | 28,810 | 21,532 |
Short-term borrowings, Contractual cash outflows | 22,341 | 21,937 |
Deposits received, Contractual cash outflows | 5,730 | 2,572 |
Office security deposits received under sublease agreement, Contractual cash outflows | 23 | |
Put option liabilities, Contractual cash outflows | 486 | |
Total, Contractual cash outflows | 57,390 | 46,041 |
Lines of credit available | 22,712 | 24,380 |
Lines of credit used | 22,000 | 21,667 |
Remaining lines of credit available | 712 | 2,713 |
Less than one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||
Trade and other payables, Contractual cash outflows | 28,810 | 21,532 |
Short-term borrowings, Contractual cash outflows | 22,341 | 21,937 |
Deposits received, Contractual cash outflows | 5,730 | 2,572 |
Total, Contractual cash outflows | 56,881 | ¥ 46,041 |
One to five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||
Office security deposits received under sublease agreement, Contractual cash outflows | 23 | |
Put option liabilities, Contractual cash outflows | 486 | |
Total, Contractual cash outflows | ¥ 509 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) ¥ in Millions, $ in Millions, $ in Millions | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2016JPY (¥) | Dec. 31, 2016USD ($) |
Disclosure of detailed information about financial instruments [Line Items] | |||||
Contribution requirement as a limited partner of private equity investment funds, up to amount of the Group's unfunded capital commitment | ¥ 810 | ||||
USD [member] | |||||
Disclosure of detailed information about financial instruments [Line Items] | |||||
Contribution requirement as a limited partner of private equity investment funds, up to amount of the Group's unfunded capital commitment | 2,942 | $ 26 | ¥ 1,956 | $ 17 | |
TWD [member] | |||||
Disclosure of detailed information about financial instruments [Line Items] | |||||
Contribution requirement as a limited partner of private equity investment funds, up to amount of the Group's unfunded capital commitment | ¥ 170 | $ 45 |
Financial Risk Management - Exp
Financial Risk Management - Exposure to Exchange Rate Risk: Book Values of Major Monetary Assets and Liabilities Denominated in Currencies Other Than Functional Currency (Detail) - Currency risk [member] € in Millions, ₩ in Millions, ฿ in Millions, ¥ in Millions, $ in Millions | Dec. 31, 2017JPY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017KRW (₩) | Dec. 31, 2017THB (฿) | Dec. 31, 2017EUR (€) | Dec. 31, 2016JPY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016KRW (₩) | Dec. 31, 2016THB (฿) | Dec. 31, 2016EUR (€) |
Trade and other payables [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | $ (10) | ₩ (20,456) | ฿ (97) | $ (5) | ₩ (7,669) | € (2) | ||||
Trade and other payables [Member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent (Liability) | ¥ (2,155) | ¥ (740) | ||||||||
Trade and other payables [Member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | 116.56 | 116.56 | 116.56 | 116.56 | 116.56 |
Yen equivalent (Liability) | ¥ (1,166) | ¥ (612) | ||||||||
Trade and other payables [Member] | EUR [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 122.26 | 122.26 | 122.26 | 122.26 | 122.26 | |||||
Yen equivalent (Liability) | ¥ (211) | |||||||||
Trade and other payables [Member] | THB [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | |||||
Yen equivalent (Liability) | ¥ (334) | |||||||||
Put Option Liabilities [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ (2,114) | |||||||||
Put Option Liabilities [Member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | |||||
Yen equivalent (Liability) | ¥ (223) | |||||||||
Cash and cash equivalents [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | ¥ 258 | $ 101 | ₩ 7,312 | € 2 | $ 32 | ₩ 37,595 | € 6 | |||
Cash and cash equivalents [member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent (Asset) | ¥ 770 | ¥ 3,626 | ||||||||
Cash and cash equivalents [member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | 116.56 | 116.56 | 116.56 | 116.56 | 116.56 |
Yen equivalent (Asset) | ¥ 11,364 | ¥ 3,775 | ||||||||
Cash and cash equivalents [member] | EUR [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 134.78 | 134.78 | 134.78 | 134.78 | 134.78 | 122.26 | 122.26 | 122.26 | 122.26 | 122.26 |
Yen equivalent (Asset) | ¥ 213 | ¥ 750 | ||||||||
Cash and cash equivalents [member] | Japan, Yen[member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 1 | 1 | 1 | 1 | 1 | |||||
Yen equivalent (Asset) | ¥ 258 | |||||||||
Trade receivables [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | $ 12 | ฿ 188 | $ 6 | ₩ 2,310 | ฿ 395 | |||||
Trade receivables [Member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | |||||
Yen equivalent (Asset) | ¥ 223 | |||||||||
Trade receivables [Member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | 116.56 | 116.56 | 116.56 | 116.56 | 116.56 |
Yen equivalent (Asset) | ¥ 1,336 | ¥ 725 | ||||||||
Trade receivables [Member] | THB [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 3.45 | 3.45 | 3.45 | 3.45 | 3.45 | 3.24 | 3.24 | 3.24 | 3.24 | 3.24 |
Yen equivalent (Asset) | ¥ 649 | ¥ 1,282 | ||||||||
Other Receivables [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | $ | $ 5 | |||||||||
Other Receivables [Member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | |||||
Yen equivalent (Asset) | ¥ 611 | |||||||||
Time deposits [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | $ 10 | ₩ 6,100 | $ 2 | ₩ 5,100 | ||||||
Time deposits [member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent (Asset) | ¥ 643 | ¥ 492 | ||||||||
Time deposits [member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | 116.56 | 116.56 | 116.56 | 116.56 | 116.56 |
Yen equivalent (Asset) | ¥ 1,131 | ¥ 257 | ||||||||
Office security deposits [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 5,655 | ₩ 5,623 | ||||||||
Office security deposits [member] | KRW [Member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent (Asset) | ¥ 596 | ¥ 542 | ||||||||
Available-for-sale financial assets [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Amount denominated in currencies other than functional currency | $ | $ 35 | $ 9 | ||||||||
Available-for-sale financial assets [member] | USD [member] | ||||||||||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||||||||||
Exchange rate | 112.88 | 112.88 | 112.88 | 112.88 | 112.88 | 116.56 | 116.56 | 116.56 | 116.56 | 116.56 |
Yen equivalent (Asset) | ¥ 3,949 | ¥ 1,059 |
Financial Risk Management - Sen
Financial Risk Management - Sensitivity Analysis for Exchange Rate Risk on Profit or Loss Before Tax and Shareholders' Equity (Detail) - Currency risk [member] - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Shareholder's equity [Member] | EUR [Member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ 11 | ¥ 20 |
Shareholder's equity [Member] | EUR [Member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (10) | (19) |
Shareholder's equity [Member] | KRW [Member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (18) | 157 |
Shareholder's equity [Member] | KRW [Member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 18 | (150) |
Shareholder's equity [Member] | USD [member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 861 | 195 |
Shareholder's equity [Member] | USD [member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (820) | (186) |
Shareholder's equity [Member] | THB [member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 16 | 47 |
Shareholder's equity [Member] | THB [member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (15) | (45) |
Shareholder's equity [Member] | Japan, Yen[member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 13 | |
Shareholder's equity [Member] | Japan, Yen[member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (12) | |
Profit or (loss) before tax [Member] | EUR [Member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 8 | 27 |
Profit or (loss) before tax [Member] | EUR [Member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (8) | (26) |
Profit or (loss) before tax [Member] | KRW [Member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (13) | 207 |
Profit or (loss) before tax [Member] | KRW [Member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 12 | (197) |
Profit or (loss) before tax [Member] | USD [member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 603 | 260 |
Profit or (loss) before tax [Member] | USD [member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (574) | (248) |
Profit or (loss) before tax [Member] | THB [member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 11 | 64 |
Profit or (loss) before tax [Member] | THB [member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (10) | ¥ (61) |
Profit or (loss) before tax [Member] | Japan, Yen[member] | Appreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 10 | |
Profit or (loss) before tax [Member] | Japan, Yen[member] | Depreciation of functional currency by 5% [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ (10) |
Financial Risk Management - 143
Financial Risk Management - Exposure to Interest Rate Risk: Interest Bearing Financial Assets and Liabilities (Detail) - Interest rate risk [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | ¥ 21,233 | ¥ 15,678 |
Financial liabilities | 43 | 258 |
Variable rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | 3,012 | |
Financial liabilities | 22,042 | 21,667 |
Short-term borrowings [Member] | Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial liabilities | 43 | 258 |
Short-term borrowings [Member] | Variable rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial liabilities | 22,042 | 21,667 |
Japanese government bonds [member] | Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | 280 | 280 |
Time deposits [member] | Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | 12,002 | 10,764 |
Loan receivable [member] | Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | 116 | 2 |
Corporate bonds and other debt instruments [member] | Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | ¥ 8,835 | 4,632 |
Corporate bonds and other debt instruments [member] | Variable rate [Member] | ||
Disclosure of financial instruments by type of interest rate [Line Items] | ||
Financial assets | ¥ 3,012 |
Financial Risk Management - 144
Financial Risk Management - Sensitivity Analysis for Interest Rate Risk on Profit or Loss Before Tax and Shareholders' Equity (Detail) - Interest rate risk [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Shareholder's equity [Member] | Variable interest rate risk: Increase of 50 basis points [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ (75) | ¥ (74) |
Shareholder's equity [Member] | Variable interest rate risk: Decrease of 50 basis points [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | 13 | 11 |
Profit or (loss) before tax [Member] | Variable interest rate risk: Increase of 50 basis points [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | (110) | (108) |
Profit or (loss) before tax [Member] | Variable interest rate risk: Decrease of 50 basis points [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ 19 | ¥ 16 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Capital Management (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of objectives, policies and processes for managing capital [Abstract] | ||||
Short-term borrowings | ¥ 22,224 | ¥ 21,925 | ||
Total | 22,317 | 21,925 | ||
Total shareholders' equity | ¥ 189,977 | ¥ 161,023 | ¥ 17,533 | ¥ 12,511 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis by Fair Value Hierarchy (Detail) - Fair Value Measurement on a Recurring Basis [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [Line Items] | |||
Financial assets | ¥ 17,256 | ¥ 15,466 | |
Financial liabilities | 486 | ||
Level 1 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial assets | 1,574 | 2,346 | |
Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial assets | 15,682 | 13,120 | |
Financial liabilities | 486 | ||
Put Option Liabilities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial liability at fair value through profit or loss | 486 | ||
Put Option Liabilities [Member] | Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial assets | 486 | ||
Financial liability at fair value through profit or loss | 486 | ||
Conversion right and redemption right of preferred stock [member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial asset at fair value through profit or loss | 1,862 | 325 | |
Conversion right and redemption right of preferred stock [member] | Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Financial asset at fair value through profit or loss | 1,862 | 325 | |
Financial assets | 1,862 | 325 | ¥ 871 |
Listed Equity Investments [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Available-for-sale financial assets | 1,574 | 2,346 | |
Listed Equity Investments [Member] | Level 1 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Available-for-sale financial assets | 1,574 | 2,346 | |
Private equity and other financial instruments [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Available-for-sale financial assets | 13,820 | 12,795 | |
Private equity and other financial instruments [Member] | Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Available-for-sale financial assets | 13,820 | 12,795 | |
Financial assets | ¥ 13,820 | ¥ 12,795 | ¥ 13,648 |
Fair Value Measurements - As147
Fair Value Measurements - Assets Not Measured at Fair Values in Consolidated Statements of Financial Position but for which Fair Values are Disclosed by Fair Value Hierarchy (Detail) - Not measured at fair values in Consolidated Statements of Financial Position but for which fair values are disclosed [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of assets [Line Items] | ||
Financial assets | ¥ 13,873 | ¥ 17,665 |
Financial liabilities | 23 | |
Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Financial assets | 13,873 | 17,665 |
Financial liabilities | 23 | |
Japanese government bonds [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Held-to-maturity investments | 291 | 294 |
Japanese government bonds [member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Held-to-maturity investments | 291 | 294 |
Time deposits [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 10,000 | |
Time deposits [member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 10,000 | |
Corporate bonds and other debt instruments [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 8,036 | 2,632 |
Corporate bonds and other debt instruments [member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 8,036 | 2,632 |
Office security deposits [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 5,546 | 4,739 |
Office security deposits [member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Loans and receivables | 5,546 | ¥ 4,739 |
Office security deposits received under sublease agreement [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Financial liability measured at amortized cost | 23 | |
Office security deposits received under sublease agreement [member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Financial liability measured at amortized cost | ¥ 23 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliations of Assets Measured at Fair Value on a Recurring Basis Categorized within Level 3 (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of fair value measurement of assets [Line Items] | |||
Total comprehensive (loss)/income for the year | ¥ 11,743 | ¥ 5,852 | ¥ (6,333) |
Fair Value Measurement on a Recurring Basis [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Beginning balance | 15,466 | ||
Ending balance | 17,256 | 15,466 | |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Beginning balance | 13,120 | ||
Ending balance | 15,682 | 13,120 | |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Private equity and other financial instruments [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Beginning balance | 12,795 | 13,648 | |
Total gain for the year: Included in profit or loss | (1,535) | (29) | |
Total gain for the year: Included in other comprehensive income | (2,456) | (2,140) | |
Total comprehensive (loss)/income for the year | (3,991) | (2,169) | |
Purchases | 4,949 | 2,054 | |
Sales and settlements | (1,619) | ||
Return of capital | (121) | (8) | |
Increase due to business combination | 610 | ||
Transfers in | 326 | ||
Effect of exchange rate changes | 871 | (730) | |
Ending balance | 13,820 | 12,795 | 13,648 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Conversion right and redemption right of preferred stock [member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Beginning balance | 325 | 871 | |
Total gain for the year: Included in profit or loss | 1,062 | (656) | |
Total comprehensive (loss)/income for the year | 1,062 | (656) | |
Purchases | 363 | 197 | |
Effect of exchange rate changes | 112 | (87) | |
Ending balance | 1,862 | ¥ 325 | ¥ 871 |
Put Option Liabilities [Member] | Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total gain for the year: Included in profit or loss | (7) | ||
Total comprehensive (loss)/income for the year | (7) | ||
Purchases | 457 | ||
Increase due to business combination | 33 | ||
Effect of exchange rate changes | 3 | ||
Ending balance | ¥ 486 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Conversion Right and Redemption Right of Preferred Stock (Detail) - Fair Value Measurement on a Recurring Basis [Member] - Level 3 [Member] - Conversion right and redemption right of preferred stock [member] - Option pricing model [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Discount rate | 2.50% | 1.60% |
Bottom of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Comparable listed companies' average historical volatility | 46.00% | 13.60% |
Top of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Comparable listed companies' average historical volatility | 49.20% | 39.60% |
Fair Value Measurements - Qu150
Fair Value Measurements - Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Put Option Liabilities (Detail) - Fair Value Measurement on a Recurring Basis [Member] - Put Option Liabilities [Member] - Level 3 [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Option pricing model [Member] | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [Line Items] | |
Comparable listed companies' average historical volatility | 45.00% |
Discount rate | 4.30% |
Monte Carlo simulation model [Member] | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [Line Items] | |
Discount rate | 2.50% |
Monte Carlo simulation model [Member] | Bottom of Range [member] | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [Line Items] | |
Comparable listed companies' average historical volatility | 41.40% |
Monte Carlo simulation model [Member] | Top of Range [member] | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [Line Items] | |
Comparable listed companies' average historical volatility | 49.20% |
Fair Value Measurements - Qu151
Fair Value Measurements - Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Private Equity and Other Financial Instruments (Detail) - Fair Value Measurement on a Recurring Basis [Member] - Private equity and other financial instruments [Member] - Level 3 [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Market approach - market comparable companies [Member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
EBITDA multiple | 10.4 | |
Liquidity discount | 30.00% | 30.00% |
Market approach - market comparable companies [Member] | Bottom of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
EBITDA multiple | 11.6 | |
EBIT multiple | 11.4 | |
Revenue multiple | 1.4 | 1.7 |
Market approach - market comparable companies [Member] | Top of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
EBITDA multiple | 12.8 | 10.4 |
EBIT multiple | 19.3 | |
Revenue multiple | 6.2 | 3.6 |
Liquidity discount | 30.00% | |
Option pricing model [Member] | Bottom of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Comparable listed companies' average historical volatility | 49.70% | 39.60% |
Discount rate | (0.10%) | (0.10%) |
Option pricing model [Member] | Top of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Comparable listed companies' average historical volatility | 76.20% | 78.90% |
Discount rate | 2.60% | 1.60% |
Discount cash flow model [Member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Discount rate | 16.80% | |
Discount cash flow model [Member] | Bottom of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Discount rate | 12.80% | |
Growth rate | 1.00% | |
Discount cash flow model [Member] | Top of Range [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [Line Items] | ||
Discount rate | 13.00% | |
Growth rate | 2.00% |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) | Jul. 18, 2017JPY (¥)yr¥ / shares | Jun. 15, 2015shares | Feb. 04, 2015JPY (¥)yr¥ / shares | Dec. 31, 2017JPY (¥)yrshares | Dec. 31, 2016JPY (¥) | Dec. 31, 2015JPY (¥)shares | Dec. 31, 2014JPY (¥)shares | Dec. 31, 2013JPY (¥)shares | Dec. 31, 2012JPY (¥)shares |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Number of common shares represented by each stock option | shares | 500 | 500 | 500 | 500 | |||||
Exercise price of outstanding stock options | ¥ 1,320 | ¥ 1,320 | ¥ 344 | ¥ 344 | |||||
options granted during the years | 23,860 | ||||||||
Shares granted during the period | 2,386,000 | ||||||||
Stock options exercise price | ¥ 4,206 | ||||||||
Stock option vesting condition | 25% of stock options per year over a period of four years from the grant date and are exercisable from the vesting date until July 18, 2027. | Vest after two years from the grant date and are exercisable for a period of eight years from the vesting date. | Vest after two years from the grant date and are exercisable for a period of eight years from the vesting date. | Vest after two years from the grant date and are exercisable for a period of eight years from the vesting date. | Vest after two years from the grant date and are exercisable for a period of eight years from the vesting date. | ||||
Stock option vesting period | 6 | 4 | |||||||
Cancellations or modifications | 0 | 0 | 0 | ||||||
Weighted average remaining contractual life for the stock options outstanding | 7.8 | 6.7 | 7.7 | ||||||
Fair value of options granted in 2015 on a per-common-share basis | ¥ / shares | ¥ 3,219 | ||||||||
Fair value of options granted in 2017 on a per-common-share basis | ¥ / shares | ¥ 1,545 | ||||||||
Stock options exercise price | ¥ 3,840 | ¥ 4,225 | |||||||
Bottom of Range [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Stock option vesting period | 5.5 | 2 | 2 | 2 | 2 | ||||
Top of Range [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Stock option vesting period | 7 | 4 | 8 | 8 | 8 | 8 | |||
Common shares [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Voting rights under dual class structure of share capital | Each common share has one vote per unit of 100 shares | ||||||||
Class A shares [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Voting rights under dual class structure of share capital | Each class A share has one vote per unit of 10 shares | ||||||||
Common stock options [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Shares granted during the period | 2,386,000 | 5,773,500 | |||||||
Stock options exercise price | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
Cancellations or modifications | 7,000 | 239,500 | 306,500 | ||||||
Common stock options [member] | Granted on December 17, 2012 [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Number of stock options converted to other class due to amendment of articles of incorporation | shares | 24,724 | ||||||||
Common stock options [member] | Granted on February 4, 2015 [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Number of stock options converted to other class due to amendment of articles of incorporation | shares | 6,949 | ||||||||
Class A stock options [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Number of common shares represented by each stock option | shares | 500 | ||||||||
Stock options exercise price | ¥ 0 | ¥ 0 | ¥ 0 | ||||||
ESOP cash settled [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Stock options exercise price | ¥ 3,840 | ¥ 4,595 | |||||||
Granted during the period | 567,056 | 567,056 | |||||||
Weighted average remaining contractual life | yr | 1.5 | ||||||||
Liabilities associated Cash-settled J-ESOP | ¥ 805,000,000 | ¥ 0 | |||||||
ESOP equity settled [member] | |||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||||
Shares granted during the period | 262,069 | 262,069 | |||||||
Cancellations or modifications | 10,767 | ||||||||
Weighted average remaining contractual life for the stock options outstanding | yr | 1.5 |
Share-Based Payments - Number a
Share-Based Payments - Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Options on a Per-common-share Basis (Detail) | 12 Months Ended | ||
Dec. 31, 2017JPY (¥) | Dec. 31, 2016JPY (¥) | Dec. 31, 2015JPY (¥) | |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Number of shares, Granted | 2,386,000 | ||
Number of shares, Forfeited | 0 | 0 | 0 |
Weighted average exercise prices, Expired | ¥ 4,206 | ||
Weighted average share price at the date of exercise of stock options | ¥ 4,580 | ¥ 4,255 | |
Common stock options [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Number of shares, Beginning balance | 22,911,500 | 9,848,000 | 20,217,500 |
Number of shares, Granted | 2,386,000 | 5,773,500 | |
Number of shares, Forfeited | (7,000) | (239,500) | (306,500) |
Number of shares, Exercised | (19,713,500) | (2,533,500) | |
Number of shares, Expired | 0 | 0 | 0 |
Number of shares, Conversion between Common Stock Options and Class A Stock Options | 15,836,500 | (15,836,500) | |
Number of shares, Ending balance | 5,577,000 | 22,911,500 | 9,848,000 |
Number of shares, Exercisable | 3,191,000 | 17,321,500 | 4,970,500 |
Weighted average exercise prices, Beginning balance | ¥ 653 | ¥ 827 | ¥ 481 |
Weighted average exercise prices, Granted | 4,206 | 1,320 | |
Weighted average exercise prices, Forfeited | 1,320 | 1,137 | 1,178 |
Weighted average exercise prices, Exercised | 583 | 691 | |
Weighted average exercise prices, Expired | 0 | 0 | 0 |
Weighted average exercise prices, Conversion between Common Stock Options and Class A Stock Options | 558 | 558 | |
Weighted average exercise prices, Ending balance | 2,421 | 653 | 827 |
Weighted average exercise prices, Exercisable | ¥ 1,086 | ¥ 438 | ¥ 344 |
Class A stock options [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Number of shares, Beginning balance | 15,836,500 | ||
Number of shares, Expired | 0 | 0 | 0 |
Number of shares, Conversion between Common Stock Options and Class A Stock Options | (15,836,500) | 15,836,500 | |
Number of shares, Ending balance | 15,836,500 | ||
Number of shares, Exercisable | 12,362,000 | ||
Weighted average exercise prices, Beginning balance | ¥ 558 | ||
Weighted average exercise prices, Expired | ¥ 0 | 0 | ¥ 0 |
Weighted average exercise prices, Conversion between Common Stock Options and Class A Stock Options | ¥ 558 | 558 | |
Weighted average exercise prices, Ending balance | 558 | ||
Weighted average exercise prices, Exercisable | ¥ 344 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Exercise Price and Number for Shares of Options Outstanding (Detail) | 12 Months Ended | ||
Dec. 31, 2017¥ / shares | Dec. 31, 2016 | Dec. 31, 2015 | |
Grant Date, December 18, 2012 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 344 | ||
Number (shares) | 14,000,000 | 14,000,000 | |
Grant Date, December 17, 2013 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 344 | ||
Number (shares) | 763,500 | 1,654,000 | 3,322,500 |
Grant Date, February 8, 2014 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 1,320 | ||
Number (shares) | 818,000 | 1,135,000 | 1,667,000 |
Grant Date, August 9, 2014 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 1,320 | ||
Number (shares) | 218,000 | 311,000 | 697,000 |
Grant Date, November 1, 2014 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 1,320 | ||
Number (shares) | 145,000 | 221,500 | 323,000 |
Grant Date, February 4, 2015 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 1,320 | ||
Number (shares) | 1,246,500 | 5,590,000 | 5,665,000 |
Grant Date, July 18, 2017 [Member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Exercise price (yen) | ¥ 4,206 | ||
Number (shares) | 2,386,000 |
Share-Based Payments - Inputs t
Share-Based Payments - Inputs to Models Used for Deriving Fair Value of Stock Options Granted (Detail) | Jul. 18, 2017JPY (¥)yr | Feb. 04, 2015JPY (¥)yr | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||
Dividend yield | 0.00% | 0.00% | |||||
Expected volatility | 56.00% | ||||||
Risk-free interest rate | 0.00% | ||||||
Expected life of stock options (years) | 6 | 4 | |||||
Exercise price (yen) | ¥ 4,206 | ¥ 1,320 | |||||
Fair value per common share at the grant date (yen) | ¥ 3,840 | ¥ 4,225 | |||||
Model used | Black-Scholes | Black-Scholes | |||||
Bottom of Range [member] | |||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||
Expected volatility | 44.90% | ||||||
Risk-free interest rate | (0.04%) | ||||||
Expected life of stock options (years) | 5.5 | 2 | 2 | 2 | 2 | ||
Top of Range [member] | |||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||
Expected volatility | 45.70% | ||||||
Risk-free interest rate | 0.00% | ||||||
Expected life of stock options (years) | 7 | 4 | 8 | 8 | 8 | 8 |
Share-Based Payments - Expenses
Share-Based Payments - Expenses Recognized in Connection with Share-Based Payments (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from equity-settled share-based payment transactions | ¥ 1,602 | ¥ 9,519 | ¥ 11,213 |
ESOP equity settled [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from equity-settled share-based payment transactions | 279 | ||
ESOP cash settled [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from cash-settled share-based payment transactions | ¥ 805 |
Share-Based Payments - Numbe157
Share-Based Payments - Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis (Detail) | Jul. 18, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||
Granted during the period | 2,386,000 | |||
Forfeited during the period | 0 | 0 | 0 | |
ESOP equity settled [member] | ||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||
Number of shares, Beginning balance | 0 | |||
Granted during the period | 262,069 | 262,069 | ||
Forfeited during the period | (10,767) | |||
Exercised during the period | 0 | |||
Expired during the period | 0 | |||
Number of shares, Ending balance | 251,302 | 0 | ||
Exercisable at December 31, 2017 | 0 | |||
ESOP cash settled [member] | ||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||
Outstanding at January 1, 2017 | 0 | |||
Granted during the period | 567,056 | 567,056 | ||
Forfeited during the period | (33,554) | |||
Exercised during the period | 0 | |||
Expired during the period | 0 | |||
Outstanding at December 31, 2017 | 533,502 | 0 | ||
Exercisable at December 31, 2017 | 0 |
Related Party Transactions - Si
Related Party Transactions - Significant Related Party Transactions and Outstanding Balances with Related Parties (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Ultimate Parent Company [member] | NAVER Corporation [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Transaction | Advertising service | Advertising service | Advertising service |
Transaction amount | ¥ 518 | ¥ 332 | ¥ 1,127 |
Outstanding receivable balances | ¥ 108 | ¥ 67 | ¥ 160 |
Subsidiary of ultimate parent company [Member] | NAVER Business Platform Corp. [Member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Transaction | Operating expenses | Operating expenses | Operating expenses |
Transaction amount | ¥ 8,475 | ¥ 7,458 | ¥ 8,139 |
Outstanding payable balances | ¥ (976) | ¥ (902) | ¥ (942) |
Associates [Member] | Snow Corporation [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Transaction | Transfer of camera application business | ||
Transaction amount | ¥ 10,651 | ||
Director Joongho Shin [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Transaction | Exercise of stock options | ||
Transaction amount | ¥ 6,922 | ||
Director Hae Jin Lee [member ] | |||
Disclosure of transactions between related parties [Line Items] | |||
Transaction | Exercise of stock options | ||
Transaction amount | ¥ 1,917 |
Related Party Transactions -159
Related Party Transactions - Significant Related Party Transactions and Outstanding Balances with Related Parties (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 01, 2017 | |
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | ||||
Disclosure of transactions between related parties [Line Items] | ||||
Number of newly issued common shares received in exchange for transfer of business | 208,455 | |||
Ultimate Parent Company [member] | NAVER Corporation [member] | ||||
Disclosure of transactions between related parties [Line Items] | ||||
Transaction amount | ¥ 518 | ¥ 332 | ¥ 1,127 |
Related Party Transactions - To
Related Party Transactions - Total Compensation of Key Management Personnel (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [Abstract] | |||
Salaries (including bonuses) | ¥ 739 | ¥ 459 | ¥ 315 |
Share-based payments | 928 | 5,714 | 5,286 |
Total | ¥ 1,667 | ¥ 6,173 | ¥ 5,601 |
Business Combinations - Fair Va
Business Combinations - Fair Values of Identifiable Assets and Liabilities of MixRadio at Date of Acquisition (Detail) - MixRadio Limited [member] ¥ in Millions | Mar. 16, 2015JPY (¥) |
Disclosure of detailed information about business combination [Line Items] | |
Property and equipment | ¥ 39 |
Technology | 845 |
Music rights | 543 |
Trademarks | 157 |
Customer relationships | 109 |
Other intangible assets | 4 |
Total assets | 1,697 |
Trade and other payables | 1,544 |
Other liabilities | 552 |
Total liabilities | 2,096 |
Total identifiable net liabilities at fair value | (399) |
Goodwill | 2,698 |
Total consideration | ¥ 2,299 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) | Dec. 15, 2017JPY (¥) | Jul. 24, 2017JPY (¥) | Feb. 29, 2016JPY (¥) | Mar. 16, 2015JPY (¥) | Dec. 31, 2017JPY (¥) | Dec. 31, 2016JPY (¥) | Dec. 31, 2015JPY (¥) |
Disclosure of detailed information about business combination [Line Items] | |||||||
Goodwill | ¥ 16,767,000,000 | ¥ 3,400,000,000 | ¥ 5,812,000,000 | ||||
Number of additional significant business combinations completed | 0 | ||||||
MixRadio Limited [member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Total consideration | ¥ 2,299,000,000 | ||||||
Goodwill expected to be deductible for income tax purposes | 2,698,000,000 | ||||||
Loss from discontinued operations, net of tax | (7,588,000,000) | ||||||
Profit (loss) as if acquisitions occurred at beginning of period | ¥ (8,827,000,000) | ||||||
Acquisition related transaction costs | ¥ 74,000,000 | ||||||
M.T. Burn Corporation [Member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Total consideration | ¥ 510,000,000 | ||||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||||
Acquisition related transaction costs | ¥ 5,000,000 | ||||||
Percentage of voting shares acquired | 50.50% | ||||||
Fair value of trade receivables | ¥ 83,000,000 | ||||||
Goodwill | ¥ 416,000,000 | ||||||
Revenues | 252,000,000 | ||||||
(Loss)/profit for the year from continuing operations | 1,305,000,000 | ||||||
Revenue as if acquisitions occurred at beginning of period | 140,841,000,000 | ||||||
Profit (loss) as if acquisitions occurred at beginning of period | ¥ 9,076,000,000 | ||||||
NextFloor Group [Member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Total consideration | ¥ 5,927,000,000 | ||||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||||
Acquisition related transaction costs | ¥ 18,000,000 | ||||||
Percentage of voting shares acquired | 51.00% | ||||||
Fair value of trade receivables | ¥ 335,000,000 | ||||||
Goodwill | 3,154,000,000 | ||||||
Revenues | ¥ 1,058,000,000 | ||||||
(Loss)/profit for the year from continuing operations | (947,000,000) | ||||||
Loan receivables | 1,976,000,000 | ||||||
NextFloor Group [Member] | Fair value [member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Fair value of trade receivables | ¥ 335,000,000 | ||||||
FIVE Inc. [Member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Total consideration | ¥ 5,446,000,000 | ||||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||||
Acquisition related transaction costs | ¥ 11,000,000 | ||||||
Percentage of voting shares acquired | 100.00% | ||||||
Goodwill | ¥ 4,996,000,000 | ||||||
Revenues | 68,000,000 | ||||||
(Loss)/profit for the year from continuing operations | (4,000,000) | ||||||
FIVE Inc. [Member] | Fair value [member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Fair value of trade receivables | ¥ 306,000,000 | ||||||
Next floor group and FIVE [member] | |||||||
Disclosure of detailed information about business combination [Line Items] | |||||||
Revenue as if acquisitions occurred at beginning of period | 168,915,000,000 | ||||||
Profit (loss) as if acquisitions occurred at beginning of period | ¥ 6,701,000,000 |
Business Combinations - Fair163
Business Combinations - Fair Values of Identifiable Assets and Liabilities of M.T. Burn at Date of Acquisition (Detail) - JPY (¥) ¥ in Millions | Feb. 29, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about business combination [Line Items] | ||||
Goodwill | ¥ 16,767 | ¥ 3,400 | ¥ 5,812 | |
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (11,887) | ¥ (423) | ¥ (2,927) | |
M.T. Burn Corporation [Member] | ||||
Disclosure of detailed information about business combination [Line Items] | ||||
Cash and cash equivalents | ¥ 87 | |||
Trade receivables | 83 | |||
Customer relationships | 401 | |||
Software | 26 | |||
Deferred tax assets | 88 | |||
Other assets | 1 | |||
Total assets | 686 | |||
Trade and other payables | 78 | |||
Other financial liabilities, current | 50 | |||
Other financial liabilities, non-current | 210 | |||
Deferred tax liabilities | 149 | |||
Other liabilities | 13 | |||
Total liabilities | 500 | |||
Total identifiable net assets at fair value | 186 | |||
Non-controllinginterest | (92) | |||
Goodwill | 416 | |||
Total consideration | 510 | |||
Total consideration related to the acquisition | (510) | |||
Net cash and cash equivalents acquired at the acquisition date | 87 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (423) |
Business Combinations - Fair164
Business Combinations - Fair Values of Identifiable Assets and Liabilities of NextFloor Group at Date of Acquisition (Detail) - JPY (¥) ¥ in Millions | Jul. 24, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about business combination [Line Items] | ||||
Goodwill | ¥ 16,767 | ¥ 3,400 | ¥ 5,812 | |
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (11,887) | ¥ (423) | ¥ (2,927) | |
NextFloor Group [Member] | ||||
Disclosure of detailed information about business combination [Line Items] | ||||
Cash and cash equivalents | ¥ 1,946 | |||
Trade receivables | 335 | |||
Other financial assets, current | 307 | |||
Other financial assets, non-current | 754 | |||
Property and equipment | 145 | |||
Software | 153 | |||
Publishing rights | 1,640 | |||
Other intangible assets | 277 | |||
Investments in associates | 805 | |||
Other assets | 320 | |||
Total assets | 6,682 | |||
Trade and other payables | 404 | |||
Other financial liabilities, current | 123 | |||
Other financial liabilities, non-current | 63 | |||
Deferred tax liabilities | 391 | |||
Other liabilities | 264 | |||
Total liabilities | 1,245 | |||
Total identifiable net assets at fair value | 5,437 | |||
Non-controllinginterest | (2,664) | |||
Goodwill | 3,154 | |||
Total consideration | 5,927 | |||
Total consideration related to the acquisition | (5,927) | |||
Debt equity swap | 1,976 | |||
Net cash and cash equivalents acquired at the acquisition date | 1,946 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (2,005) |
Business Combinations - Fair165
Business Combinations - Fair Values of Identifiable Assets and Liabilities of FIVE Inc. at Date of Acquisition (Detail) - JPY (¥) ¥ in Millions | Dec. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about business combination [Line Items] | ||||
Goodwill | ¥ 16,767 | ¥ 3,400 | ¥ 5,812 | |
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (11,887) | ¥ (423) | ¥ (2,927) | |
FIVE Inc. [Member] | ||||
Disclosure of detailed information about business combination [Line Items] | ||||
Cash and cash equivalents | ¥ 231 | |||
Trade and other receivables, current | 307 | |||
Other financial assets, non-current | 10 | |||
Property and equipment | 9 | |||
Technology | 391 | |||
Other assets | 7 | |||
Total assets | 955 | |||
Trade and other payables | 288 | |||
Other financial liabilities, current | 50 | |||
Deferred tax liabilities | 123 | |||
Other liabilities | 44 | |||
Total liabilities | 505 | |||
Total identifiable net assets at fair value | 450 | |||
Goodwill | 4,996 | |||
Total consideration | 5,446 | |||
Total consideration related to the acquisition | (5,446) | |||
Net cash and cash equivalents acquired at the acquisition date | 231 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (5,215) |
Principal Subsidiaries - Additi
Principal Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Subsidiaries | |
Disclosure of subsidiaries [Abstract] | |
Number of consolidated subsidiaries | 53 |
Principal Subsidiaries - Inform
Principal Subsidiaries - Information on Subsidiaries (Detail) | Oct. 13, 2017 | Jul. 24, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
LINE Business Partners Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Business Partners Corporation | |||
Primary business activities | Online advertisement | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | |||
LINE Fukuoka Corp. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Fukuoka Corp. | |||
Primary business activities | Management support | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Pay Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Pay Corporation | |||
Primary business activities | Software Development and mobile payment service | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Book Distribution Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Book Distribution Corporation | |||
Primary business activities | Mobile Contents | |||
Country of incorporation | Japan | |||
Percentage of ownership | 52.00% | 52.00% | ||
LINE Ventures Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Ventures Corporation | |||
Primary business activities | Investment | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE GAME Global Gateway, L.P. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE GAME Global Gateway, L.P. | |||
Primary business activities | Investment | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Life Global Gateway, L.P. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Life Global Gateway, L.P. | |||
Primary business activities | Investment | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Mobile Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Mobile Corporation | |||
Primary business activities | Mobile virtual network operator | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 100.00% | ||
M.T. Burn Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | M.T. Burn Corporation | |||
Primary business activities | Online advertisement | |||
Country of incorporation | Japan | |||
Percentage of ownership | 50.50% | 50.50% | ||
Gatebox Inc [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | Gatebox Inc. | |||
Primary business activities | IoT hologram technology development | |||
Country of incorporation | Japan | |||
Percentage of ownership | 51.00% | |||
BALIE corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | BALIE Corporation | |||
Primary business activities | LINE@ distributor | |||
Country of incorporation | Japan | |||
Percentage of ownership | 60.00% | |||
STAIRS Corporation [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | STAIRS Corporation | |||
Primary business activities | Game Development | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | 51.00% | 100.00% | |
LINE friends Japan corporation [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Friends Japan Corporation | |||
Primary business activities | Character goods business | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | |||
LINE TICKET Corporation [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE TICKET Corporation | |||
Primary business activities | Electronic ticket service | |||
Country of incorporation | Japan | |||
Percentage of ownership | 51.00% | |||
FIVE Inc. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | FIVE Inc. | |||
Primary business activities | Game Development | |||
Country of incorporation | Japan | |||
Percentage of ownership | 100.00% | |||
LINE PLAY Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE PLAY Corporation | |||
Primary business activities | Content sales | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Plus Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Plus Corporation | |||
Primary business activities | Global marketing | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE C&I Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE C&I Corporation | |||
Primary business activities | Investment | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Biz Plus Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Biz Plus Corporation | |||
Primary business activities | Mobile payment service | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Friends Corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Friends Corporation | |||
Primary business activities | Character goods business | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINEGAME corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Games Corporation | |||
Primary business activities | Game Development and Publishing | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | |||
NextFloor Group [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | NextFloor Corporation. | |||
Primary business activities | Game Development and Publishing | |||
Country of incorporation | Korea | |||
Percentage of ownership | 51.00% | |||
LINEUP corporation [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE UP Corporation | |||
Primary business activities | Global Marketing | |||
Country of incorporation | Korea | |||
Percentage of ownership | 100.00% | |||
LINE Digital Technology (Shanghai) Limited. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Digital Technology (Shanghai) Limited. | |||
Primary business activities | Social Media | |||
Country of incorporation | China | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE friends Shanghai commercial trade Co Ltd [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Friends(Shanghai) Commercial Trade Co., Ltd. | |||
Primary business activities | Character goods business | |||
Country of incorporation | China | |||
Percentage of ownership | 100.00% | |||
LINE Taiwan Limited [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Taiwan Limited | |||
Primary business activities | Mobile Service | |||
Country of incorporation | Taiwan | |||
Percentage of ownership | 100.00% | 100.00% | ||
Line Biz+ Taiwan Limited [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | Line Biz+ Taiwan Limited | |||
Primary business activities | Payment service | |||
Country of incorporation | Taiwan | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE BIZ+ PTE. LTD [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE BIZ+ PTE. LTD. | |||
Primary business activities | Software Development and mobile payment service | |||
Country of incorporation | Singapore | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Company (Thailand) Limited [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Company (Thailand) Limited | |||
Primary business activities | e-commerce | |||
Country of incorporation | Thailand | |||
Percentage of ownership | 50.00% | 50.00% | ||
LINE Euro-Americas Corp. [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Euro-Americas Corp. | |||
Primary business activities | Global marketing | |||
Country of incorporation | United States of America | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Friends Inc [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Friends Inc. | |||
Primary business activities | Character goods business | |||
Country of incorporation | United States of America | |||
Percentage of ownership | 100.00% | |||
MixRadio Limited [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | MixRadio Limited | |||
Primary business activities | Music distribution | |||
Country of incorporation | United Kingdom of Great Britain and Northern Ireland | |||
Percentage of ownership | 100.00% | 100.00% | ||
LINE Vietnam Co., Ltd [member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | LINE Vietnam Co., Ltd | |||
Primary business activities | Online advertisement | |||
Country of incorporation | Vietnam | |||
Percentage of ownership | 100.00% | 95.00% | ||
PT. LINE PLUS INDONESIA [Member] | ||||
Disclosure of subsidiaries [Line Items] | ||||
Name of subusidiaries | PT. LINE PLUS INDONESIA | |||
Primary business activities | Marketing | |||
Country of incorporation | Indonesia | |||
Percentage of ownership | 99.90% | 99.80% |
Principal Subsidiaries - Inf168
Principal Subsidiaries - Information on Subsidiaries (Parenthetical) (Detail) | Dec. 11, 2017 | Oct. 13, 2017 | Jul. 24, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 01, 2017 | Apr. 01, 2017 | Mar. 31, 2017 | Mar. 30, 2017 |
Gatebox Inc [member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of voting shares acquired | 51.00% | ||||||||
Percentage of ownership | 51.00% | ||||||||
BALIE corporation [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 60.00% | ||||||||
BALIE corporation [Member] | LINE Business Partners Corporation [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 60.00% | ||||||||
STAIRS Corporation [member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 100.00% | 51.00% | 100.00% | ||||||
STAIRS Corporation [member] | Next Floor Corporation [member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 51.00% | ||||||||
LINE TICKET Corporation [member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of voting shares acquired | 51.00% | ||||||||
Percentage of ownership | 51.00% | ||||||||
NextFloor Group [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 51.00% | ||||||||
NextFloor Group [Member] | LINE Games Corporation [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of voting shares acquired | 51.00% | ||||||||
LINE Company (Thailand) Limited [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 50.00% | 50.00% | |||||||
Percentage of voting power held in subsidiary | 90.90% | ||||||||
LINE Vietnam Co., Ltd [member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 100.00% | 95.00% | |||||||
LINE Vietnam Co., Ltd [member] | LINE Plus Corporation [Member] | |||||||||
Disclosure of subsidiaries [Line Items] | |||||||||
Percentage of ownership | 100.00% | 95.00% |
Investments in Associates an169
Investments in Associates and Joint Ventures - Details of Investments in Significant Associates and Joint Ventures (Detail) - JPY (¥) ¥ in Millions | Oct. 17, 2017 | Oct. 16, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
LINE Project Production Partnership [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | LINE Project Production Partnership | |||
Primary business activities | Animation production | |||
Country of incorporation | Japan | |||
Percentage of ownership | 50.00% | 50.00% | ||
Collab+LINE LLC [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Collab+LINE LLC | |||
Primary business activities | Investment | |||
Country of incorporation | United States of America | |||
Percentage of ownership | 50.00% | 50.00% | ||
Carrying amount | ¥ 130 | ¥ 133 | ||
Epic Voyage, Inc. [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Epic Voyage, Inc. | |||
Primary business activities | Mobile games | |||
Country of incorporation | Japan | |||
Percentage of ownership | 30.00% | 30.00% | ||
Carrying amount | ¥ 3 | ¥ 3 | ||
Green Monster, Inc. [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Green Monster, Inc. | |||
Primary business activities | Mobile games | |||
Country of incorporation | Japan | |||
Percentage of ownership | 35.00% | |||
LINE MUSIC Corporation [member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | LINE MUSIC Corporation | |||
Primary business activities | Music distribution | |||
Country of incorporation | Japan | |||
Percentage of ownership | 33.40% | 33.40% | ||
Carrying amount | ¥ 47 | ¥ 413 | ||
AUBE, Ltd. [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | AUBE, Ltd. | |||
Primary business activities | Job listing | |||
Country of incorporation | Japan | |||
Percentage of ownership | 49.00% | 49.00% | ||
Carrying amount | ¥ 334 | ¥ 340 | ||
transcosmos online communications inc. [member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | transcosmos online communications inc. | |||
Primary business activities | Customer service | |||
Country of incorporation | Japan | |||
Percentage of ownership | 37.10% | 40.00% | 37.10% | 40.00% |
Carrying amount | ¥ 121 | ¥ 42 | ||
NPLE GAMES Co., Ltd. [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | NPLE GAMES Co., Ltd. | |||
Primary business activities | Mobile games | |||
Country of incorporation | Korea | |||
Percentage of ownership | 43.50% | 14.80% | ||
Carrying amount | ¥ 457 | ¥ 69 | ||
Yume no Machi Souzou Iinkai Co., Ltd. [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Yume no Machi Souzou Iinkai Co., Ltd. | |||
Primary business activities | Delivery portal site | |||
Country of incorporation | Japan | |||
Percentage of ownership | 22.00% | 22.00% | ||
Carrying amount | ¥ 3,865 | ¥ 3,973 | ||
Snow Corporation [member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Snow Corporation | |||
Primary business activities | Mobile app | |||
Country of incorporation | Korea | |||
Percentage of ownership | 45.00% | 25.00% | ||
Carrying amount | ¥ 12,998 | ¥ 4,387 | ||
K Fund I [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | K-Fund I | |||
Primary business activities | Investment | |||
Country of incorporation | France | |||
Percentage of ownership | 25.00% | |||
Carrying amount | ¥ 1,388 | |||
Orfeo Sound Works Corporation [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Orfeo SoundWorks Corporation | |||
Primary business activities | Earphone technology | |||
Country of incorporation | Korea | |||
Percentage of ownership | 20.70% | |||
Carrying amount | ¥ 154 | |||
Oozoo Inc [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Oozoo Inc. | |||
Primary business activities | Game Development | |||
Country of incorporation | Korea | |||
Percentage of ownership | 44.50% | |||
Carrying amount | ¥ 247 | |||
Nano Interactive Inc [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Nano Interactive Inc. | |||
Primary business activities | Game Development | |||
Country of incorporation | Korea | |||
Percentage of ownership | 35.50% | |||
Carrying amount | ¥ 54 | |||
Motif Co Ltd [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Motif Co.,Ltd. | |||
Primary business activities | Game Development | |||
Country of incorporation | Korea | |||
Percentage of ownership | 41.50% | |||
Carrying amount | ¥ 207 | |||
Skeinglobe Corporation [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Name of associate | Skeinglobe Corporation | |||
Primary business activities | Game Development | |||
Country of incorporation | Korea | |||
Percentage of ownership | 28.70% | |||
Carrying amount | ¥ 108 | |||
Lantu Games Limited [member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Primary business activities | Mobile games | |||
Name of joint venture | Lantu Games Limited | |||
Country of incorporation | Hong Kong (China) | |||
Percentage of ownership | 50.00% | 50.00% | ||
Carrying amount | ¥ 394 | ¥ 1,025 | ||
RABBIT-LINE PAY COMPANY LIMITED [member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Primary business activities | Payment service | |||
Name of joint venture | RABBIT-LINE PAY COMPANY LIMITED | |||
Country of incorporation | Thailand | |||
Percentage of ownership | 50.00% | 50.00% | ||
Carrying amount | ¥ 2,121 | ¥ 2,327 | ||
Drama & Company [Member] | ||||
Disclosure of investments in associates and joint ventures [line items] | ||||
Primary business activities | Software Development | |||
Name of joint venture | Drama & Company | |||
Country of incorporation | Korea | |||
Percentage of ownership | 37.20% | |||
Carrying amount | ¥ 2,216 |
Investments in Associates an170
Investments in Associates and Joint Ventures - Details of Investments in Significant Associates and Joint Ventures (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Oct. 17, 2017 | Oct. 16, 2017 | Jul. 24, 2017 | May 30, 2017 | Jan. 02, 2017 | Aug. 31, 2017 | May 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 08, 2017 | Nov. 30, 2017 | Nov. 03, 2017 | Sep. 29, 2017 | Jun. 27, 2017 |
Green Monster, Inc. [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting equity interest disposed | 35.00% | |||||||||||||
Percentage of ownership | 35.00% | |||||||||||||
transcosmos online communications inc. [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 37.10% | 40.00% | 37.10% | 40.00% | ||||||||||
Snow Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 45.00% | 25.00% | ||||||||||||
Snow Corporation [member] | Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 25.00% | 48.60% | 48.60% | 25.00% | ||||||||||
Percentage of ownership in Snow Corporation held by ultimate parent company | 45.00% | |||||||||||||
Snow Corporation [member] | Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | NAVER Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Share capital | ¥ 3,938 | |||||||||||||
K Fund I [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 25.00% | |||||||||||||
K Fund I [Member] | NAVER Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting shares acquired | 50.00% | |||||||||||||
K Fund I [Member] | LINE Plus Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 49.90% | 25.00% | ||||||||||||
Percentage of voting shares acquired | 49.90% | |||||||||||||
Orfeo Sound Works Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 20.70% | |||||||||||||
Orfeo Sound Works Corporation [Member] | LINE Friends Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting shares acquired | 20.70% | |||||||||||||
Oozoo Inc [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 44.50% | |||||||||||||
Oozoo Inc [Member] | Next Floor Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 44.50% | |||||||||||||
Nano Interactive Inc [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 35.50% | |||||||||||||
Nano Interactive Inc [Member] | Next Floor Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 35.50% | |||||||||||||
Motif Co Ltd [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 41.50% | |||||||||||||
Motif Co Ltd [Member] | LINE Games Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting shares acquired | 41.50% | |||||||||||||
Skeinglobe Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership | 28.70% | |||||||||||||
Skeinglobe Corporation [Member] | LINE Games Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting shares acquired | 28.70% | |||||||||||||
Drama & Company [Member] | LINE Plus Corporation [Member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of voting shares acquired | 37.20% | |||||||||||||
Ultimate Parent Company [member] | Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | NAVER Corporation [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Percentage of ownership in Snow Corporation held by ultimate parent company | 55.00% | 75.00% | ||||||||||||
Ultimate Parent Company [member] | Snow Corporation [member] | Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [member] | ||||||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||||||
Share capital | ¥ 984 |
Investments in Associates an171
Investments in Associates and Joint Ventures - Summary of Financial Information on Investment in Associates (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of associates [Line Items] | ||||
Current assets | ¥ 190,649 | ¥ 174,707 | ||
Non-current assets | 112,790 | 81,382 | ||
Current liabilities | 101,417 | 86,436 | ||
Non-current liabilities | 12,045 | 8,630 | ||
Equity | 189,977 | 161,023 | ¥ 17,533 | ¥ 12,511 |
Goodwill | 16,767 | 3,400 | 5,812 | |
Revenue | 167,147 | 140,704 | 120,406 | |
Loss for the year from continuing operations | 8,223 | 9,086 | (384) | |
Other comprehensive income for the year, net of tax | 3,533 | (1,252) | 1,639 | |
Total comprehensive (loss)/income for the year | 11,743 | 5,852 | (6,333) | |
Snow Corporation [member] | ||||
Disclosure of associates [Line Items] | ||||
Current assets | 2,469 | 4,365 | ||
Non-current assets | 17,213 | 1,493 | ||
Current liabilities | 1,180 | 506 | ||
Non-current liabilities | 2,678 | 641 | ||
Equity | ¥ 15,824 | ¥ 4,711 | ||
Proportion of the Group's ownership | 45.00% | 25.00% | ||
Group's share of equity | ¥ 7,121 | ¥ 1,178 | ||
Goodwill and other adjustments | 5,877 | 3,209 | ||
Carrying amount of the interests | 12,998 | 4,387 | ||
Revenue | 271 | |||
Loss for the year from continuing operations | (10,348) | (952) | ||
Other comprehensive income for the year, net of tax | 131 | |||
Total comprehensive (loss)/income for the year | (10,217) | (952) | ||
Group's share of loss for the year | (4,531) | (238) | ||
Aggregated individually immaterial associates [member] | ||||
Disclosure of associates [Line Items] | ||||
Current assets | 10,699 | 6,273 | ||
Non-current assets | 7,762 | 6,875 | ||
Current liabilities | 4,025 | 3,131 | ||
Non-current liabilities | 1,683 | 2,074 | ||
Equity | 12,753 | 7,943 | ||
Group's share of equity | 3,368 | 2,127 | ||
Goodwill | 3,747 | 2,730 | ||
Carrying amount of the interests | 7,115 | 4,973 | ||
Revenue | 12,657 | 6,322 | 1,108 | |
Loss for the year from continuing operations | (3,050) | (1,642) | (242) | |
Other comprehensive income for the year, net of tax | 84 | 2 | 31 | |
Total comprehensive (loss)/income for the year | (2,966) | (1,640) | (211) | |
Unrecognized loss | 116 | |||
Group's share of loss for the year | ¥ (831) | ¥ (386) | ¥ (78) |
Investments in Associates an172
Investments in Associates and Joint Ventures - Additional Information (Detail) - JPY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Investments In Associates And Joint Ventures [Abstract] | ||
Contingent liabilities incurred in relation to interests in associates | ¥ 0 | ¥ 0 |
Commitments in relation to associates | 5,796,000,000 | 0 |
Contingent liabilities incurred in relation to interests in joint ventures | 0 | 0 |
Commitments in relation to joint ventures | ¥ 0 | ¥ 0 |
Investments in Associates an173
Investments in Associates and Joint Ventures - Summary of Financial Information on Investment in Joint Ventures (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of joint ventures [Line Items] | ||||
Current assets | ¥ 190,649 | ¥ 174,707 | ||
Non-current assets | 112,790 | 81,382 | ||
Current liabilities | 101,417 | 86,436 | ||
Non-current liabilities | 12,045 | 8,630 | ||
Equity | 189,977 | 161,023 | ¥ 17,533 | ¥ 12,511 |
Goodwill | 16,767 | 3,400 | 5,812 | |
Revenue | 167,147 | 140,704 | 120,406 | |
Depreciation and amortization | (7,149) | (5,100) | (3,733) | |
Loss for the year from continuing operations | 8,223 | 9,086 | (384) | |
Other comprehensive income for the year, net of tax | 3,533 | (1,252) | 1,639 | |
Total comprehensive loss for the year, net of tax | 11,743 | 5,852 | ¥ (6,333) | |
Joint Ventures [Member] | ||||
Disclosure of joint ventures [Line Items] | ||||
Current assets | 5,237 | 4,942 | ||
Non-current assets | 227 | 29 | ||
Current liabilities | 1,342 | 192 | ||
Non-current liabilities | 44 | 7 | ||
Equity | 4,078 | 4,772 | ||
Group's share of equity | 1,795 | 2,386 | ||
Goodwill | 2,936 | 966 | ||
Carrying amount of the interests | 4,731 | 3,352 | ||
Revenue | 366 | 39 | ||
Depreciation and amortization | (19) | (4) | ||
Interest income | 37 | 25 | ||
Interest expense | (17) | |||
Loss for the year from continuing operations | (2,211) | (417) | ||
Other comprehensive income for the year, net of tax | 81 | |||
Total comprehensive loss for the year, net of tax | (2,130) | (417) | ||
Group's share of loss for the year | ¥ (959) | ¥ (209) |
Investments in Associates an174
Investments in Associates and Joint Ventures - Summary of Financial Information on Investment in Joint Ventures (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of joint ventures [Line Items] | ||||
Cash and cash equivalents | ¥ 123,606 | ¥ 134,698 | ¥ 33,652 | ¥ 20,254 |
Other financial liabilities, current | 28,003 | 24,497 | ||
Joint Ventures [Member] | ||||
Disclosure of joint ventures [Line Items] | ||||
Cash and cash equivalents | 1,863 | 2,251 | ||
Other financial liabilities, current |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Segment | Jan. 31, 2018 | Dec. 31, 2017 |
LINE Mobile Corporation [Member] | ||
Disclosure of non-adjusting events after reporting period [Line Items] | ||
Percentage of voting shares acquired | 100.00% | |
Disposal of major subsidiary [Member] | LINE Mobile Corporation [Member] | ||
Disclosure of non-adjusting events after reporting period [Line Items] | ||
Percentage of voting shares acquired | 49.00% | |
Major business expansion [Member] | ||
Disclosure of non-adjusting events after reporting period [Line Items] | ||
Number of operating segments | 2 |