Hyundai 2008 Annual Report Download - page 53

19. CAPITAL ADJUSTMENTS:
Capital adjustments as of December 31, 2008 and 2007 consist of the following:
Capital stock as of December 31, 2007 consists of the following:
In 2008, part of the stock options granted to the directors were exercised at an exercise price of
￦
26,800 (US$21.31) and new common stock of 402,671 shares were
issued. This issue of new common stock resulted in the increase in paid-in capital in excess of par value by
￦
13,391 million (US$10,649 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, 2008, 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.
HYUNDAI MOTOR COMPANY
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HYUNDAI MOTOR COMPANY
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HYUNDAI MOTOR COMPANY I 2008 AnnuAl RepoRt I HYUNDAI MOTOR COMPANY I 2008 AnnuAl RepoRt I 
Description 2008 2007 2008 2007
Treasury stock
￦
(719,685)
￦
(723,524) $(572,314) $(575,367)
Stock option cost 450 5,119 358 4,071
￦
(719,235)
￦
(718,405) $(571,956) $(571,296)
Authorized Issued Par value
Korean Won
In millions
U.S. Dollars (Note 2)
In thousands
Common stock 450,000,000 shares 219,873,808 shares
￦
5,000
￦
1,155,969 $919,260
Preferred stock 150,000,000 shares 65,202,146 shares 5,000 331,011 263,229
￦
1,486,980 $1,182,489
Korean Won In millions U.S. Dollars (Note 2) In thousands
(1) Treasury stock
For the stabilization of stock price, the Company has treasury stock consisting of 11,031,741 common shares and 2,950,960 preferred shares with a carrying value
of
￦
719,685 million (US$ 572,314 thousand) as of December 31, 2008, 11,071,741 common shares and 2,950,960 preferred shares with a carrying value of
￦
723,524
million (US$ 575,367 thousand) as of December 31, 2007, which were acquired directly or indirectly through the Treasury Stock Fund and Trust Cash Fund.
(2) Stock option cost
The Company granted directors stock options at an exercise price of
￦
26,800 (grant date: February 14, 2003, beginning date for exercise: February 14, 2006, expiry
date for exercise: February 13, 2011). These stock options all require at least two-year continued service starting from the grant date. There is no valid stock option as
of December 31, 2008, as 5,000 stock options were cancelled as of January 24, 2008, and 402,671 stock options were exercised as of December 2, 2008.
In addition, Kia Motors Corporation calculates the total compensation expense using an option-pricing model, in which the risk-free rate of 4.74%, an expected
exercise period of 5.5 years and an expected variation rate of stock price of 95.04 percent are used. Total compensation expenses amounting to
￦
450 million (US$358
thousand) have been accounted for as a charge to current operations and a credit to stock option cost in capital adjustments over the required period of service (two
years) from the grant date using the straight-line method.
Description 2008 2007 2008 2007
Gain on valuation of available-for-sale securities, net
￦
355,295
￦
771,594 $282,541 $613,594
Gain (loss) on valuation of investment securities accounted for
using the equity method, net 13,369 (102,391) 10,631 (81,424)
Loss on valuation of derivatives, net (296,916) (56,826) (236,116) (45,190)
Gain (loss) on overseas operation translation 546,561 (285,652) 434,641 (227,160)
￦
618,309
￦
326,725 $491,697 $259,820
Description 2008 2007 2008 2007
Net income
￦
1,092,552
￦
1,956,087 $868,828 $1,555,536
Other comprehensive income (loss):
Gain (loss) on valuation of available-for-sale securities, net of
deferred tax effect
￦
167,930 million and
￦
(216,896) million in
2008 and 2007, respectively. (416,299) 571,817 (331,053) 454,725
Korean Won In millions
Korean Won In millions
U.S. Dollars (Note 2) In thousands
U.S. Dollars (Note 2) In thousands
20. ACCUMULATED OTHER COMPREHENSIVE INCOME:
Accumulated other comprehensive income as of December 31, 2008 and 2007 consists of the following:
21. STATEMENTS OF COMPREHENSIVE INCOME:
Statements of comprehensive income in 2008 and 2007 consist of the following: