LG 2003 Annual Report Download - page 94

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94
Notes to Non-Consolidated Financial Statements
For the years ended December 31, 2003 and 2002
21. Capital Adjustments
Capital adjustments as of December 31, 2003 and 2002 comprise the following:
(in millions of Won)
2003 2002
Treasury stock ￦(8,977) ￦(11,850)
Gain on valuation of equity method investment securities 163,609 98,456
Loss on valuation of available-for-sale securities (92,012) (19,218)
Loss from disposal of treasury stock (62) (166)
￦62,558 ￦67,222
The Company retains treasury stock consisting of 194,953 shares of common stock and 4,678 shares of
preferred stock as of December 31, 2003, and 215,973 shares of common stock and 4,678 shares of preferred
stock as of December 31, 2002. The Company intends to grant the treasury stock to employees and directors as
compensation or to sell these in the future.
22. Income Taxes
Income tax expense for the year ended December 31, 2003 and the nine-month period from April 1, 2002 (spin-
off date) to December 31, 2002 are as follows:
(in millions of Won)
2003 2002
Current income taxes ￦185,718 ￦168,624
Deferred income taxes (11,742) (47,227)
￦173,976 ￦121,397
The following table reconciles the expected amount of income tax expense based on statutory rates to the
actual amount of taxes recorded by the Company:
(in millions of Won)
2003 2002
Income before taxes ￦836,800 ￦399,113
Statutory tax rate 29.70% 29.70%
Expected taxes at statutory rate 248,516 118,537
Permanent differences 9,595 9,676
Tax credits (74,441) (8,232)