LG 2001 Annual Report Download - page 74

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ยป74
LG Electronics Inc. The
43
rd Annual Report
Notes to Financial Statements
for the years ended December 31, 2001 and 2000
Telecom, Inc. and others.
On December 31, 2001 and 2000, the Company was contingently liable for guarantees approximating
1,569,184 million and 1,594,887 million, respectively, on indebtedness of its subsidiaries and
affiliates as follows :
Millions of Won
2001 2000
Domestic companies
LG TeleCom, Ltd. 132,610 125,970
Other 14,278 26,465
146,888 152,435
Overseas companies
LG Electronics Wales Ltd. 173,404 252,225
PT LG Electronics Display Devices Indonesia 78,240 130,829
LG Electronics Alabama Inc. 183,002 205,331
LG Electronics U.S.A., Inc. 169,741 144,865
LG Electronics North of England Ltd. 61,761 40,847
Shuguang LG Electronics Co., Ltd. 36,335 78,605
LG Electronics Tianjin Appliances Co., Ltd. 90,451 50,388
Zenith Electronics Corporation 53,044 12,597
Other 576,318 526,765
1,422,296 1,442,452
Total 1,569,184 1,594,887
On December 31, 2001, the Company has no guarantees received, and on December 31, 2000, the
Company has received guarantees approximating 58,767 million from various banks for the repayment of
certain debentures of the Company.
As of December 31, 2001, the Company entered into a treasury stock sales and call option contract with
Credit Suisse First Boston International (CSFB) and Bank of America, N.A., Charlotte Head Office (BOA).
The terms and conditions of the contracts are as follows :
(1) Contract with CSFB
Treasury stock sales
Trade date: December 21, 2000
Number of shares: 11,000,000 shares of common stock
Sales price: the closing trade price on the trade date per share ( 12,400 per share)
Price adjustment:
On March 19, 2001, sales price was adjusted to the weighted average trade price during the initial
valuation period which was determined based on CSFB s executions. As a result, the Company recognized
a gain on transaction of derivatives amounting to 19,095 million.