LG 2002 Annual Report Download - page 37

LG Electronics Inc. IAnnual Report 2002 I80 81
Condensed financial information as of April 1, 2002 of two companies after the spin-off is as follows:
Depositary receipts (4,383,591 shares of non-voting preferred stock) which were transferred to the Company upon the spin-off were listed on the London Stock
Exchange in September 2002.
25. Supplemental Cash Flow Information:
The Company considers cash on hand, bank deposits and highly liquid marketable securities with original maturities of three months or less to be cash and cash
equivalents.
Significant transactions not affecting cash flow for the nine-month period from April 1, 2002 (date of spin-off) to December 31, 2002 are as follows :
Assets
￦ 11,982,532 ￦ 2,972,213 ￦ 9,443,488
Liabilities 7,514,855 887,074 6,627,781
Equity 4,467,677 2,085,139 2,815,707
LG Electronics
Prior to spin-off Investment Ltd. LG Electronics Inc.
Post spin-off
(Millions of Won)
Transfer to building, machinery and others from construction in-progress ￦ 47,475
Transfer to machinery and equipment from machinery in-transit 72,478
Reclassification of current maturities of debentures 587,599
Reclassification of current maturities of long-term debt 9,639
Changes in retained earnings and capital adjustments arising from the equity method of accounting for investments 63,922
(Millions of Won)
Sales
External sales ￦ 13,905,098 ￦ 5,931,025 ￦ 4,356,961 ￦ 2,740,895 ￦ 740,900 ￦ 135,317
Inter-division sales 175,236 61,254 16,917 32,310 2,061 62,694
14,080,334 5,992,279 4,373,878 2,773,205 742,961 198,011
Operating income (loss) 661,673 141,082 385,164 243,430 (34,934) (73,069)
Fixed assets
Property, plant and equipment 2,893,372 827,438 849,042 218,590 222,004 776,298
Intangible assets 972,467 71,449 13,343 314,204 99,239 474,232
Total 3,865,839 898,887 862,385 532,794 321,243 1,250,530
Depreciation and amortization ￦ 447,809 ￦ 130,949 ￦ 87,791 ￦ 76,539 ￦ 42,168 ￦ 110,362
24. Spin-Off:
Upon a resolution of the Board of Directors on November 15, 2001 and a resolution of the shareholders on December 28, 2001, the Company was spun-off from LG
Electronics Investment Ltd. on April 1, 2002. On April 2, 2002, the Company completed the registration process required for new company, in accordance with the
Commercial Code of the Republic of Korea.
In accordance with the provisions in the Commercial Code Article No. 530-2, LG Electronics Investment Ltd. established the Company to engage in the electronics and
information and communications businesses.
The Company issued shares within the amount of net assets, which is the difference between the transferred assets and liabilities, and the shares were distributed to
the shareholders of LG Electronics Investment Ltd. in proportion to their shares.
Accrued severance liabilities for employees working for the Company were transferred effective April 1, 2002.
The Company and LG Electronics Investment Ltd. jointly and severally hold a guarantee for the obligations before the spin-off.
Financial Data by Business Division
(Millions of Won)
Digital Display Digital Mobile Telecommunication Supporting
Total & Media Appliance Handset System Division
Financial Data by Geographic Area
(Millions of Won)
Central &
North South Central
Total Domestic America Europe America Asia Asia Oceania Others
Sales
External sales ￦ 13,905,098 ￦ 5,054,623 ￦ 3,146,157 ￦ 1,361,473 ￦ 257,346 ￦ 552,951 ￦ 3,102,253 ￦ 254,874 ￦ 175,421
Ratio (%) 100% 36% 23% 10% 2% 4% 22% 2% 1%
Inter-division sales 175,236 175,236 - - - - - - -
￦ 14,080,334 ￦ 5,229,859 ￦ 3,146,157 ￦ 1,361,473 ￦ 257,346 ￦ 552,951 ￦ 3,102,253 ￦ 254,874 ￦ 175,421
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