Hyundai 2005 Annual Report Download - page 58

114
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
25. SEGMENT INFORMATION:
(1) Consolidated financial statements by industry
The consolidated balance sheets as of December 31, 2005 and 2004, and consolidated statements of income for the years
then ended, by industry under which the Company and its subsidiaries’ business are classified, are as follows:
Consolidated Balance Sheet as of December 31, 2005
ASSETS Non-financial Financial Non-financial Financial
industry industry industry industry
Current assets: ￦23,410,682 ￦1,552,756 $23,110,249 $1,532,829
Non-current assets:
Investments, net of
unamortized present value discount 4,735,303 2,608,660 4,674,534 2,575,183
Property, plant and equipment, net of
accumulated depreciation 21,211,029 130,657 20,938,824 128,980
Intangibles, net of amortization 2,254,645 74,735 2,225,711 73,776
Other financial business assets - 11,295,391 - 11,150,435
Total non-current assets 28,200,977 14,109,443 27,839,069 13,928,374
Total assets ￦51,611,659 ￦15,662,199 $50,949,318 $15,461,203
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities ￦22,709,571 ￦7,572,708 $22,418,135 $7,475,526
Non-current liabilities 9,746,884 6,245,002 9,621,801 6,164,859
Other financial business liabilities - 286,329 - 282,654
Total liabilities 32,456,455 14,104,039 32,039,936 13,923,039
Shareholders’ equity:
Capital stock 1,482,905 1,283,800 1,463,875 1,267,325
Capital surplus 5,038,670 866,340 4,974,008 855,222
Retained earnings 9,280,764 (666,721) 9,161,662 (658,165)
Capital adjustments (791,672) 74,741 (781,512) 73,782
Minority interests 4,144,537 - 4,091,349 -
Total shareholders’ equity 19,155,204 1,558,160 18,909,382 1,538,164
Total liabilities and shareholders’ equity ￦51,611,659 ￦15,662,199 $50,949,318 $15,461,203
Korean Won
(in millions)
Translation into
U.S. Dollars (Note 2)
(In thousands)
113
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
(2) As of December 31, 2005, the outstanding balance of accounts receivable discounted with recourse and transferred by the
Company and its subsidiaries amounts to ￦110,518 million (US$109,100 thousand).
(3) The Company and its subsidiaries have used a customer financing system related to a long-term installment sales system
and have provided guarantees to related banks amounting to ￦136,527 million (US$190,112 thousand) as of December
31, 2005. These guarantees are all covered by insurance contracts, which specify the customer and the Company and its
subsidiaries as contractor and beneficiary, respectively.
(4) The Company accrues estimated product liabilities expenses and carries the products and completed operations liability
insurance (See Note 8) in order to cover the potential loss, which may occur due to the lawsuits related to its operation such
as product liabilities. The Company expects that the resolution of cases pending against the Company as of December 31,
2005 will not have any material effect on its financial position.
Kia Motors Corporation, a domestic subsidiary, is a defendant pertaining to its claim in the in-court reorganization proceeding,
the lawsuits related to its operation such as product liabilities, lawsuits for compensation of losses or damages. KIA also has a
pending lawsuit in a Brazilian court pertaining to the disputes with the Brazilian Government and the Brazilian shareholders of
Asia Motors Do Brasil S.A. (AMB), which was established as a joint venture by Asia Motors with a Brazilian investor. Also, in
2001, KIA brought the case to the International Court of Arbitration to settle the disputes. KIA, a stockholder of AMB, had
already written off its investment of ￦14,057 million (US$13,877 thousand) and estimates that the above matter does not and
will not affect its financial statements at this time. The outcome of the creditors’ claims in relation to KIA’s denial of their claims
in the in-court reorganization proceedings is not currently determinable.
(5) As of December 31, 2005, the Company’s consolidated subsidiaries have been provided for payment guarantee by other
companies as follows:
Consolidated Subsidiaries Company providing Amounts of Translation into
guarantee of indebtedness guarantee U.S. Dollars (Note 2)
(In thousands) (In thousands)
Dymos Inc. Korea Exchange Bank & other KRW 25,050,000 $24,729
KEFICO Corporation Korea Exchange Bank USD 629 629
and other JPY 524,318 4,451
EUR 187 222
KRW 105,000 104
ROTEM Machinery Insurance Cooperative KRW 799,410,000 789,151
and other USD 72,397 72,397
EUR 131,513 155,810
NTD 8,084 311
CAD 8,033 6,909
HKD 45,138 5,821