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HYUNDAI MOTOR COMPANY Annual Report 2014
FINANCIAL STATEMENTS / 163162
(2) As of December 31, 2014, the Group is involved in domestic and foreign lawsuits as a defendant. In addition, the Group is
involved in lawsuits for product liabilities and others. The Group obtains insurance for potential losses which may result from
product liabilities and other lawsuits. Meanwhile, as of December 31, 2014, the Group is currently involved in lawsuits for
ordinary wage, which involves disputes over whether certain elements of remuneration are included in the earnings used for
the purposes of calculating overtime, allowances for unused annual paid leave and retirement benefits, and unable to
estimate the outcome or the potential consolidated financial impact.
(3) As of December 31, 2014, a substantial portion of the Group’s PP&E is pledged as collateral for various loans up to
￦890,640 million. In addition, the Group pledged certain bank deposits, checks, promissory notes and investment securities,
including 213,466 shares of Kia Motors Corporation, as collateral to financial institutions and others. Certain receivables held
by the Company’s foreign subsidiaries, such as financial services receivables are pledged as collateral for their borrowings.
(4) Hyundai Capital Services, Inc., a subsidiary of the Company, has Revolving Credit Facility Agreements with the following
financial institutions.
1) Credit Facility Agreement
Hyundai Capital Services, Inc. entered into a Credit Facility Agreement with GE Capital European Funding & CO (the “GE Capital”) on
February 15, 2013. The credit line of the agreement is Euro worth of USD 600 million as of December 31, 2014 and the agreement had
been renewed on January 9, 2015 with the same credit line. The entity will be able to extend the agreement until January 5, 2018 an-
nually. Otherwise, it will be automatically terminated.
2) Revolving Credit Facility
Hyundai Capital Services, Inc. has a Revolving Credit Facility Agreement which credit line is USD 200 million, EUR 10 million and
￦1,645,000 million with Kookmin Bank and 19 other financial institutions, as of December 31, 2014.
(5) Hyundai Card Co., Ltd, a subsidiary of the Company, has a Revolving Credit Facility Agreement which credit line is
￦490,000 million with Kookmin Bank and 9 other financial institutions, as of December 31, 2014.
38. SEGMENT INFORMATION:
(1) The Group has a vehicle segment, a finance segment and other segments. The vehicle segment is engaged in the manufacturing
and sale of motor vehicles. The finance segment operates vehicle financing, credit card processing and other financing
activities. Other segments include the R&D, train manufacturing and other activities, which cannot be classified in the vehicle
segment or in the finance segment.
(2) Sales and operating income by operating segments for the years ended December 31, 2014 and 2013, are as follows:
In millions of Korean Won
For the year ended December 31, 2014
Vehicle Finance Others
Consolidation
adjustments Total
Total sales ￦ 105,798,039 ￦ 10,997,532 ￦ 7,241,540 ￦ (34,780,792) ￦ 89,256,319
Inter-company sales (33,489,970) (227,146) (1,063,676) 34,780,792 -
Net sales 72,308,069 10,770,386 6,177,864 -89,256,319
Operating income 5,806,836 1,061,001 191,621 490,528 7,549,986
In millions of Korean Won
For the year ended December 31, 2013
Vehicle Finance Others
Consolidation
adjustments Total
Total sales ￦ 103,198,545 ￦ 10,146,973 ￦ 7,077,614 ￦ (33,115,496) ￦ 87,307,636
Inter-company sales (31,663,499) (254,543) (1,197,454) 33,115,496 -
Net sales 71,535,046 9,892,430 5,880,160 - 87,307,636
Operating income 6,412,596 1,120,128 388,421 394,352 8,315,497
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013