Kia 2009 Annual Report Download - page 59

REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

REDEFINING
MOBILITY
KIA MOTORS
ANNUAL REPORT
2009

NOTES TO NONCONSOLIDATED
FINANCIAL STATEMENTS
December 31, 2009 and 2008
(c) The company deferred the net income (loss) on valuation of the effective portion of derivative instruments for cash flow
hedging purposes as accumulated other comprehensive income (loss). Detail of accumulated other comprehensive income
(loss) as of December 31, 2009 and 2008 are summarized as follows:
In millions of Won Other comprehensive income (loss)
Financial instrument 2009 2008
Interest rate swap ￦ (5,307) (12,322)
Interest rate and currency swaps (950) (1,851)
foreign currency forward 3,113 -
Non derivative instruments (59,129) (99,863)
(d) The Company applied cash ow hedges to transactions expected to occur in the period ending June, 2011 and the amount of
gain on valuation of derivatives before tax included in accumulated other comprehensive income expected to be recognized
as current income within the twelve months from December 31, 2009 is ￦ 62,712 million.
(e) The company recorded ￦ 40,401 million and ￦ 2,061 million as gain on valuation of derivatives and loss on valuation of
derivatives for the year ended 2009, respectively, from the termination of derivative instrument contracts.
(f) The company recognized the net loss of ￦ 2,973 million and the net income of ￦ 36,288 million as other income (loss) for the
year ended 2009 and 2008, respectively, on valuation of the ineective portion of such instruments and the other derivative
instruments in current operations.
24. COMMON STOCK
(a) Capital Stock as of December 31, 2009 is summarized as follows:
25. CAPITAL SURPLUS
Capital surplus as of December 31, 2009 and 2008 are summarized as follows:
(*) Other includes gain from re-issuance of treasury stock and consideration for stock warrants.
26. RETAINED EARNINGS
Retained earnings as of December 31, 2009 and 2008 are summarized as follows:
Authorized Issued Outstanding Par Value Won (millions)
820,000,000 388,371,048 387,995,332 ￦ 5,000 ￦ 2,054,355
The Company retired 10 million shares of treasury stock on July 2, 2003, which had been acquired for such retirement purposes based on the
decision of the Board of Directors on May 9, 2003. Also, the Company retired 12.5 million shares of treasury stock on May 28, 2004, which had
been acquired for ￦ 136,701 million for such retirement purposes based on the decision of the Board of Directors on March 19, 2004. Due to
these stock retirements, the aggregate par value of issued shares diers from the common stock amount.
(b) Transactions in stockholders’ equity for the year ended December 31, 2009 and 2008 are as follows:
(c) As of December 31, 2009, 375,716 shares of treasury stock (0.10% of total stock) lost voting rights under paragraph 2 of Article
369 of the Korean Commercial Code and the law for the capital market and nancial investment.
In thousands of Won, except number of shares 2009 2008
Number of Number of
shares Amount shares Amount
BALANCE AT BEGINNING OF YEAR 347,230,455 ￦ 1,848,652 347,230,455 ￦ 1,848,652
Exercise of stock warrants 41,140,593 205,703 - -
BALANCE AT END OF YEAR 388,371,048 ￦ 2,054,355 347,230,455 ￦ 1,848,652
In millions of Won 2009 2008
Paid-in capital in excess of par value ￦ 1,632,557 1,580,065
Gain on capital reduction 119,859 119,859
Other(*) 8,987 4,659
￦ 1,761,403 1,704,583
In millions of Won 2009 2008
Legal reserve ￦ 42,800 42,800
Other reserve under tax law 1,061,583 1,546,463
Undisposed accumulated decit 1,260,937 (484,880)
￦ 2,365,320 1,104,383