Hyundai 2002 Annual Report Download - page 37

HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
6. INSURED ASSETS
As of December 31, 2002, certain property, plant and equipment are insured for 9,585,558 million ($7,985,303 thousand)
and the Company and its certain subsidiaries carry general insurance for vehicles and workers' compensation and casualty
insurance for employees. In addition, the Company and Kia carry products and completed operations liability insurance
with a maximum coverage of 182,260 million ($151,833 thousand) thousand with Hyundai Marine & Fire Insurance Co.,
Ltd..
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of December 31, 2002 and 2001 consists of the following:
Korean won U.S. dollars(Note 2)
(in millions) (in thousands)
2002 2001 2002 2001
Buildings and structures 5,266,364 5,007,175 $ 4,387,174 $ 4,171,255
Machinery and equipment 8,270,212 8,103,729 6,889,547 6,750,857
Vehicles 142,681 111,248 118,861 92,676
Tools, Dies and molds 3,486,128 3,277,943 2,904,139 2,730,709
Other equipment 948,627 794,554 790,259 661,908
18,114,012 17,294,649 15,089,980 14,407,405
Less: Accumulated depreciation (6,415,241) (5,317,325) (5,344,253) (4,429,627)
11,698,771 11,977,324 9,745,727 9,977,778
Land 3,942,288 3,848,526 3,284,145 3,206,036
Construction in progress 1,104,179 1,079,647 919,843 899,406
16,745,238 16,905,497 $13,949,715 $14,083,220
As of December 31, 2002 and 2001, the value of the land, which the Company and its subsidiaries own domestically, totals
3,097,198 million ($2,580,138thousand) and 2,901,555 million ($2,417,157 thousand), respectively, in terms of land
prices officially announced by the Korean government.
8. INTANGIBLES
Intangibles as of December 31, 2002 and 2001 consist of the following:
Korean won U. S. dollars (Note 2)
(in millions) (in thousands)
2002 2001 2002 2001
Accumulated
Acquisition Accumulated impairment
cost amortization loss Book value Book value Book value Book value
Goodwill 1,070,371 210,514 - 859,857 899,278 $ 716,309 $ 749,149
Negative goodwill (135,388) (22,719) - (112,669) (118,225) (93,860) (98,488)
Industrial property rights 30,021 10,624 - 19,397 19,298 16,159 16,076
Development costs 2,120,507 1,174,802 115,862 829,843 1,310,142 691,305 1,091,421
Other 109,625 27,943 - 81,682 40,742 68,046 33,940
3,195,136 1,401,164 115,862 1,678,110 2,151,235 $1,397,959 $1,792,098
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
(*1) The equity securities of these affiliates were excluded from using the equity method since the Company believes the
changes in the investment value due to the changes in the net assets of the investee, whose individual beginning
balance of total assets or paid-in capital at the date of its establishment is less than 7,000 million ($5,831 thousand),
are not material.
(*2) Percentage ownership is calculated by combining the ownership of the Company and its subsidiaries.
Unlisted investment equity securities are stated at cost, except where an investee’s net equity value has declined and is
not expected to recover.
Total net equity value of unlisted investment equity securities, which the Company and its subsidiaries hold as of
December 31, 2002 and 2001, amounts to 223,369 million ($186,079 thousand) and 208,891 million ($174,018
thousand), respectively, based on the investees’ latest individual financial statements.
Debt securities as of December 31, 2002 and 2001 consist of the following:
Book value
Korean won Korean won U.S. dollars (Note 2)
(in millions) (in millions) (in thousands)
Historical cost 2002 2001 2002 2001
Securities finance bonds - - 228,937 $ - $ 190,717
Overseas debentures 167,293 163,962 181,976 136,589 151,596
Subordinated debt 237,450 210,371 101,458 175,251 84,520
Private bonds 68,110 49,950 15,329 41,611 12,770
Other 38,845 35,874 49,970 29,885 41,628
511,698 460,157 577,670 $383,336 $481,231
Investment equity securities of the Company and its domestic subsidiaries pledged as collateral for various borrowings
and payables as of December 31, 2002 are as follows:
5. LEASED ASSETS
The Company and its subsidiaries have entered into lease agreements for certain machinery and equipment. The capital
lease obligations are included in long-term debt in the accompanying balance sheets. Annual payments on these lease
agreements as of December 31, 2002 are as follows (won in millions):
Financing leases Operating leases
Lease Interest Lease Lease
Payments Portion Obligation Payments
2003 97,765 15,214 82,551 39,963
2004 76,111 7,758 68,353 39,436
2005 62,521 6,571 55,950 18,260
2006 61,980 6,026 55,954 5,379
Thereafter 38,773 3,408 35,365 7,488
337,150 38,977 298,173 110,526
Company No. of shares pledged
Hyundai Corporation 1,514,841
Machinery Insurance Cooperative 150
Kisan Mutual Saving’s & Finance 306,160
Kia Motors Corporation 3,970,000
Kia Steel Co., Ltd. 175,100
Korea Defense Industry Association 1,500
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