Hyundai 2009 Annual Report Download - page 55

HYUNDAI MOTOR COMPANY I 2010 ANNUAL REPORT I 109HYUNDAI MOTOR COMPANY I 2010 ANNUAL REPORT I 108
HYUNDAI MOTOR COMPANY
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
HYUNDAI MOTOR COMPANY
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2008
The components of accumulated temporary differences and deferred tax assets (liabilities) as of December 31, 2008 are as follows:
The temporary differences of ￦174,514 million (US$149,464 thousand) and ￦263,723 million (US$225,868 thousand) as of December 31, 2009 and 2008, respectively,
were not recognized since it is not probable that the temporary difference will be reversed in the foreseeable future.
The Company believes average taxable income in the coming years will exceed the amount of deferred taxes to be realized every year based on its assessment. The tax
rate used in calculating deferred tax assets or liabilities arising from temporary differences is 24.2% (tax rate used in calculating deferred tax assets or liabilities which are
realized after 2012 is 22%) including resident tax.
20. CAPITAL STOCK:
Capital stock as of December 31, 2009 and 2008 consists of the following:
Authorized Issued Par value
Korean Won
in millions
U. S. Dollars (Note 2)
in thousands
Common stock 450,000,000 shares 220,276,479 shares ￦ 5,000 ￦ 1,157,982 $ 991,763
Preferred stock 150,000,000 shares 65,202,146 shares 5,000 331,011 283,497
￦ 1,488,993 $ 1,275,260
In 2008, part of the stock options granted to the directors were exercised at an exercise price of ￦26,800 (US$22.95) 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$11,469 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, 2009, 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.
21. CAPITAL ADJUSTMENTS:
Capital adjustments as of December 31, 2009 and 2008 consist of the following:
Description 2009 2008 2009 2008
Treasury stock ￦ (743,909) ￦ (719,685) $ (637,127) $ (616,380)
Stock option cost - 450 - 386
￦ (743,909) ￦ (719,235) $ (637,127) $ (615,994)
Korean Won in millions
(1) Treasury stock
For the stabilization of stock price, the Company has treasury stock consisting of 11,213,999 common shares and 2,950,960 preferred shares with a carrying value
of ￦743,909 million (US$637,127 thousand) and 11,031,741 common shares and 2,950,960 preferred shares with a carrying value of ￦719,685 million (US$616,380
thousand) as of December 31, 2009 and 2008, respectively, 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, 2009, as 5,000 stock options were cancelled on January 24, 2008, and 402,671 stock options were exercised on December 2, 2008.
U. S. Dollars (Note 2) in thousands
Description 2009 2008 2009 2008
Gain on valuation of available- for-sale securities, net ￦ 361,445 ￦ 355,295 $ 309,562 $ 304,295
Gain on valuation of investment securities accounted for using the equity
method, net 56,620 13,369 48,493 11,450
Loss on valuation of derivatives, net (85,241) (296,916) (73,005) (254,296)
Gain on overseas operation translation 173,146 546,561 148,292 468,106
￦ 505,970 ￦ 618,309 $ 433,342 $ 529,555
Korean Won in millions U. S. Dollars (Note 2) in thousands
22. ACCUMULATED OTHER COMPREHENSIVE INCOME:
Accumulated other comprehensive income as of December 31, 2009 and 2008 consists of the following:
Description
Accumulated
temporary
differences
Deferred
tax assets
(liabilities)
Accumulated
temporary
differences
Deferred
tax assets
(liabilities)
Accrued warranties ￦ 4,470,609 ￦ 1,161,845 $ 3,828,887 $ 995,071
Long-term investment securities (56,647) (92,111) (48,516) (78,889)
Allowance for doubtful accounts 660,558 168,274 565,740 144,120
Investments in subsidiaries and associates (2,362,253) (498,287) (2,023,170) (426,762)
Reserve for research and manpower development (383,122) (82,890) (328,128) (70,992)
Derivative liabilities (1,297,230) (275,969) (1,111,023) (236,356)
Development cost (17,542) (6,178) (15,024) (5,291)
Depreciation (1,440,540) (446,552) (1,233,762) (382,453)
Accrued income (136,897) (33,105) (117,246) (28,353)
Advanced depreciation provisions (509,768) (2,377) (436,595) (2,036)
Loss on foreign exchange translation 2,019,944 482,396 1,729,997 413,152
Provision for other liabilities 397,532 88,572 340,469 75,858
Other 1,678,008 534,022 1,437,145 457,367
Accumulated temporary differences 3,022,652 997,640 2,588,774 854,436
Carry over tax deduction 403,260 400,825 345,375 343,290
￦ 3,425,912 ￦ 1,398,465 $ 2,934,149 $ 1,197,726
Korean Won in millions U. S. Dollars (Note 2) in thousands