LG 1999 Annual Report Download - page 37

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5
3
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 1999
As of December 31, 1999, the value of the Company’s land, as determined by the local government in Korea for property
tax assessment purpose, approximates
￦
581,759 million.
As of December 31, 1999, property, plant and equipment, other than land and certain construction in progress,
are insured against fire and other casualty losses up to approximately
￦
4,009,987 million.
A substantial portion of property, plant and equipment as of December 31, 1999 is pledged as collateral for
various loans from banks, including Korea Development Bank, up to a maximum Won equivalent amount of
approximately
￦
583,009 million (see Notes 10 and 11).
9. Intangible Assets :
Intangible assets as of December 31, 1999 comprise the following :
Millions of Won
Development costs
￦
82,938
Industrial property rights 15,979
Other 7,192
￦
106,109
Details of research and development costs incurred for the year ended December 31, 1999 are as follows :
Millions of Won
Capitalized
￦
74,271
Expensed 179,697
￦
253,968
10. Short-Term Borrowings :
Short-term borrowings as of December 31, 1999 comprise the following :
Annual Interest Rates (% ) as of December 31, 1999 In Millions
Bank overdrafts 13.0
￦
16,957
Won currency loans :
General term loans 7.0 - 12.2 81,500
Loans from insurance companies 8.1 20,000
101,500
Foreign currency loans 3.2 11,324
US$ 1
￥
897
￦
129,781
See Notes 3 and 8 for collateral arrangements for these borrowings. Repayment of certain borrowings has been guaranteed by affiliated
companies of the LG Group (see Note 14).
Current maturities of long-term debt as of December 31, 1999 comprise the following :
Millions of Won
Debentures
￦
1,154,450
Discount on debentures (6,158)
Long-term debt 217,800
￦
1,366,092
11. Long-Term Debt :
Long-term debt as of December 31, 1999 comprises the following :
Annual Interest Rate (% ) at December 31, 1999 In Millions
Debentures
Guaranteed, payable through 2001 11.0 - 25.0
￦
787,100
Non-guaranteed, payable through 2004 8.1 - 21.4 311,000
General, payable through 2002 8.0 - 12.0 1,320,000
Floating rate notes in foreign currency,
payable through 2000 (* 1) Libor+ 0.25~ 0.40 83,350
HK$ 550
US$ 2
2,501,450
Convertible Bonds (* 2)
Foreign currency, issued in 1991 3.25 40
(US$ - )
Foreign currency, issued in 1996 1.25 33,096
(US$ 40)