LG 2003 Annual Report Download - page 89

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LG Electronics Inc._Annual Report 2003 89
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
receivable with Hana Bank. However, in relation to the agreements, as of December 31, 2003, there is no
outstanding balance of factored accounts receivable.
As of December 31, 2003, the Company has entered into sales contracts with several companies, the
undelivered portions of which amounted to approximately ￦659 million for KT Freetel Co., Ltd., ￦47,355 million for
LG Telecom, Ltd., ￦16,248 million for KT Corp., and ￦2,900 million for SK Telecom Co. and others.
As of December 31, 2003, the Company was contingently liable for guarantees approximating ￦1,590,103
million on the indebtedness of its subsidiaries and affiliates as follows:
(in millions of Won)
DOMESTIC COMPANIES
Woosung Corp. ￦479
OVERSEAS COMPANIES
LG Electronics Wales Ltd. 79,807
PT LG Electronics Display Device Indonesia 118,582
LG Electronics da Amazonia Ltda. 56,297
LG Electronics Italy S.P.A. 44,419
LG Electronics Japan Inc. 64,936
LG Electronics Mexico S.A. de C.V. 114,255
LG Electronics Monterrey Mexico S.A. de C.V. 75,901
LG Electronics Service Europe Netherlands B.V. 85,782
LG Electronics de Sao Paulo Ltda. 59,890
LG Electronics Tianjin Appliance Co., Ltd. 96,807
LG Electronics U.S.A., Inc. 58,692
LG.Philips Displays Holding B.V. 239,560
Zenith Electronics Corporation 2,396
Others 492,300
1,589,624
￦1,590,103
In order to reduce the impact of changes in exchange rates on future cash flows, the Company has entered into
foreign currency forward contracts. As of December 31, 2003, the Company has outstanding forward contracts with
Credit Lyonnais and others for selling US dollars amounting to US$50 million (contract exchange rates: ￦1,156.50:
US$1 ~ ￦1,117.45: US$1, contract due dates: February through April 2004).
As of December 31, 2003, the Company has outstanding forward contracts with UFJ Bank and others for selling
Euro and buying US Dollars amounting to 25 million (contract exchange rates: 0.7968: US$1 ~ 0.8733: US$1,
contract due dates: January through March 2004).