Hyundai 2001 Annual Report Download - page 59

December 31, 2001 and 2000
At January 1, 1981, January 1, 1993 and July 1, 1998, the Company revalued property, plant and equipment at their respective
appraised values (which were appraised by the Korea Appraisal Board and approved by the relevant tax office). The resultant
cumulative appraisal gains, amounting to "2,547,417 million (US$1,920,984 thousand), were included in capital surplus, after
offsetting accumulated deficit of "16,022 million (US$12,082 thousand), a deferred foreign currency translation loss of
"594,275 million (US$448,137 thousand), reduction for an asset revaluation tax payment of "67,547 million (US$50,937
thousand) and adjustment of "16,702 million (US$ 12,595 thousand) due to the disposal of revalued assets within 1 year after
revaluation.
In 2001, the Company sold 2,290,800 shares of its common stock held as treasury stock to DaimlerChrysler Aktiengesellschaft
for "47,878 million (US$ 36,104 thousand) resulting in a gain of "7,783 million (US$ 5,869 thousand), net of tax effect of
"2,470 million (US$1,863 thousand), and 10,659,010 common shares held as treasury stock to INI Steel Company (formerly
Inchon Iron & Steel Co., Ltd.) for "185,725 million (US$ 140,054 thousand) resulting in a gain of "7,597 million (US$ 5,729
thousand), net of tax effect of "2,411 million (US$1,818 thousand). Total gains of "15,380 million (US$ 11,598 thousand)
were recorded in capital surplus.
15.Retained Earnings
Retained earnings as of December 31, 2001 and 2000 consist of the following:
The Korean Commercial Code requires the Company to appropriate, as a legal reserve, a minimum of 10 percent of annual
cash dividends declared, until such reserve equals 50 percent of its capital stock issued. Pursuant to the Tax Incentive
Limitation Law, the Company is required to appropriate, as a reserve for business rationalization, the exemption of income
taxes resulting from investment tax credits and certain deductions from taxable income specified by the Law. The Regulation
on Issues and Disclosures of the Securities for listed companies requires the Company to appropriate, as a reserve for
improvement of financial structure, an amount equal to at least 50 percent of the net gain on disposition of property, plant and
equipment and 10 percent of net income for each year until the Company's net worth equals 30 percent of total assets. These
reserves are not available for the payment of cash dividends, but may be transferred to capital stock or may be used to reduce
any accumulated deficit.
The reserves for overseas market development and technological development are voluntary reserves, which are available for
the payment of dividends.
16. Capital Adjustments
Capital adjustments as of December 31, 2001 and 2000 consist of the following:
Appropriated:
Legal reserve
Reserve for business rationalization
Reserve for improvement of financial structure
Reserve for overseas market development
Reserve for technological development
Unappropriated
2001
$ 76,819
411,583
74,615
36,799
1,104,819
1,704,635
145
$ 1,704,780
2000
$ 60,229
290,928
74,615
36,799
563,759
1,026,330
130,961
$ 1,157,291
2000
"79,870
385,800
98,947
48,800
747,600
1,361,017
173,667
"
"1,534,684
2001
"101,870
545,800
98,947
48,800
1,465,100
2,260,517
192
"
"2,260,709
U.S. dollars (Note 2) (in thousands)Korean won (in millions)
Treasury stock
Loss on valuation of investment equity
securities
Stock option cost
Cumulative translation adjustments for
overseas branches
Loss on valuation of derivatives (see Note 2)
2001
$ (54,133)
52,107
9,206
(1,397)
(17,416)
$ (11,633)
2000
$ (329,575)
(197,300)
4,921
(811)
(41,985)
$ (564,750)
2000
"(437,050)
(261,640)
6,526
(1,075)
(55,676)
"
"(748,915)
2001
"(71,786)
69,099
12,208
(1,853)
(23,094)
"
"(15,426)
U.S. dollars (Note 2) (in thousands)Korean won (in millions)
N OTES TO N ON -C ONSOLIDATED F INANCIAL S TATEMENTS
61
2001 Annual ReportHyundai Motor Company