Hyundai 2002 Annual Report Download - page 38

HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
The changes in intangibles in 2002 are as follows:
Korean won
(in millions)
Industrial
Negative property Development
Goodwill goodwill rights costs Other Total Total
Beginning of the year 899,278 (118,225) 19,298 1,310,142 40,742 2,151,235 $ 1,792,098
Addition:
Expenditures 19,758 (3,440) 6,082 996,742 46,449 1,065,591 887,697
Deduction:
Disposal - - - (16,645) - (16,645) (13,866)
Amortization (59,179) 8,996 (5,983) (710,723) (5,509) (772,398) (643,451)
Research - - - (308,187) - (308,187) (256,737)
Ordinary development - - - (383,157) - (383,157) (319,191)
Impairment loss - - - (58,329) - (58,329) (48,591)
End of the year 859,857 (112,669) 19,397 829,843 81,682 1,678,110 $ 1,397,959
Amortization on intangible assets except negative goodwill is recorded in selling and administrative expenses and in
manufacturing cost and amortization on negative goodwill is recorded in other expenses. In addition, the Company
accounted for ordinary development expenses, research expenses and impairment loss as manufacturing cost, selling and
administrative expenses and other expenses, respectively.
As of December 31, 2002, goodwill consists of 340,288 million ($283,479 thousand) related to investments in
subsidiaries and 519,569 million ($432,830 thousand) related to mergers with non-subsidiary companies or business
divisions. As of December 31, 2001, goodwill consists of 343,704 million ($286,325 thousand) related to investments in
subsidiaries and 555,574 million ($462,824 thousand) related to mergers with non-subsidiary companies or business
divisions.
As of December 31, 2002, negative goodwill consists of 108,169 million ($90,111 thousand) related to investments in
subsidiaries and 4,500 million ($3,749 thousand) related to mergers with non-subsidiary companies or business
divisions. As of December 31, 2001, negative goodwill is 118,225 million ($98,488 thousand) related to investments in
subsidiaries.
9. OTHER ASSETS
Other assets 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
Long-term notes and accounts receivable, net of
allowance for doubtful accounts of 1,630
million in 2002 and nil in 2001 and
unamortized discount of 6,332 million
in 2002 and 10,486 million in 2001 31,203 34,053 $ 25,994 $ 28,368
Lease and rental deposits 322,505 313,715 268,664 261,342
Long-term deposits 36,186 202,702 30,145 168,862
Deferred gain on valuation of derivatives
(see Note 2) 51,622 168 43,004 140
Long-term loan, net of allowance for doubtful
accounts of 45 million in 2002 and
nil in 2001 and unamortized discount of
4,397 million in 2002 and 4,967 million
in 2001 138,719 122,643 115,561 102,168
Other 113,607 58,126 94,641 48,423
693,842 731,407 $578,009 $609,303
U. S. dollars
(Note 2)
(in thousands)
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002
10. OTHER FINANCIAL BUSINESS ASSETS
Other financial business assets 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
Finance receivables 8,059,742 4,926,439
$ 6,714,213 $ 4,103,998
Lease receivables 290,169 120,287 241,727 100,206
Other 17,930 21,687 14,937 18,066
8,367,841 5,068,413 $6,970,877 $4,222,270
11. SHORT-TERM BORROWINGS
Short-term borrowings as of December 31, 2002 and 2001 amount to 7,526,948 million ($6,270,367 thousand) and
6,748,184 million ($5,621,613 thousand), respectively, and consist primarily of bank loans and export financing loans
with annual interest rates ranging from 0.48 percent to 10.50 percent.
12. LONG-TERM DEBT
Long-term debt as of December 31, 2002 and 2001 consists of the following:
Korean won U.S. dollars(Note 2)
Interest rate (%) (in millions) (in thousands)
2002 2002 2001 2002 2001
Debentures 3.00 ~ 9.40 9,250,885 7,948,036 7,706,502 6,621,156
Won currency loans
Capital lease 8.10 ~ 14.31 62,490 55,241 52,058 46,019
Reorganization claims (*) 524,855 942,547 437,233 785,194
Composition obligation 0.00 ~ 5.50 5,812 225,396 4,842 187,767
General loans 1.00 ~ 14.30 475,597 440,881 396,199 367,279
1,068,754 1,664,065 890,332 1,386,259
Foreign currency loans
Capital lease 3.10 ~ 6.81 219,621 357,876 182,957 298,131
Reorganization claims (*) 148,611 223,563 123,801 186,240
Composition obligation - - 59,786 - 49,805
Other 2.23 ~ 7.73 372,241 774,099 310,097 644,868
740,473 1,415,324 616,855 1,179,044
11,060,112 11,027,425 9,213,689 9,186,459
Less: Current maturities (3,049,849) (2,768,331) (2,540,694) (2,306,174)
8,010,263 8,259,094 $6,672,995 $6,880,285
(*) 3 year non-guaranteed bond circulating earning rate on the end of every quarter
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