Hyundai 2007 Annual Report Download - page 93

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91
HYUNDAI MOTOR COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
Capital stock as of December 31, 2006 consists of the following:
Authorized Issued Par value Korean Won Translation into
(In millions) U.S. Dollars
(Note 2)
(In thousands)
Common stock 450,000,000 shares 219,466,255 shares 5,000 1,153,931 $1,229,941
Preferred stock 150,000,000 shares 65,202,146 shares 5,000 331,011 352,815
1,484,942 $1,582,756
In 2007, a part of the stock options granted to the directors were exercised at an exercise price of 26,800 (US$28.56) and new common
stock of 407,553 shares were issued. This issue of new common stock resulted in the increase in capital stock by 2,038 million (US$2,172
thousand) and paid-in capital in excess of par value by 13,552 million (US$14,445 thousand).
The Company completed stock retirement of 1,320,000 common shares of treasury stock on May 4, 2004, which had been acquired for the
purpose of such retirement based on the decision of the Board of Directors on March 12, 2004. Also, the Company acquired treasury stock
after cancellation of Trust Cash Fund on March 2, 2001, and in accordance with the decision of the Board of Directors, on March 5, 2001, the
Company retired 10,000,000 common shares in treasury and 1,000,000 second preferred shares in treasury, which had additional dividend
rate of 2 percent to the rate of common stock, using the retained earnings. Due to these stock retirements, the total face value of
outstanding stock differs from the capital stock amount.
The preferred shares are non-cumulative, participating and non-voting. Of the total preferred stock issued of 65,202,146 shares as of
December 31, 2007, a total of 27,588,281 preferred shares (First and Third preferred shares) are eligible to receive cash dividends, if
declared, equal to that declared for common shares plus an additional 1 percent minimum increase while the dividend rate for the
remaining 37,613,865 preferred shares (Second preferred shares) is 2 percent higher than that declared for common shares.
19. CAPITAL ADJUSTMENTS:
Capital adjustments as of December 31, 2007 and 2006 consist of the following:
Korean Won
(In millions)
Translation into
U.S. Dollars (Note 2)
(In thousands)
Description 2007 2006 2007 2006
Treasury stock (723,524) (716,316) $(771,183) $(763,500)
Stock option cost 5,119 9,271 5,456 9,881
(718,405) (707,045) $(765,727) $(753,619)