Samsung 2000 Annual Report Download - page 71

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15. Retained Earnings
Retained earnings as of December 31, 2000 and 1999 consist of the following:
(A) The Korean Commercial Code requires the Company to appropriate as a legal reserve an amount equal to a minimum of 10% of annual
cash dividends declared until the reserve equals 50% of capital stock. This reserve is not available for the payment of cash dividends,
but may be transferred to capital stock or used to reduce the accumulated deficit, if any.
(B) Pursuant to the Tax Exemption and Reduction Control Law, the Company is required to appropriate as a reserve for business
rationalization an amount equal to the exemption of income taxes resulting from investment tax credits and certain deductions from
taxable income specified by such law. This reserve may be used for the reduction of the accumulated deficit, if any, or transferred to
capital stock.
(C) In accordance with the Regulation for Securities Issuance and Disclosure, the Company is required to appropriate as a reserve for
improvement of financial structure an amount equal to at least 50% of the net extraordinary gain on disposal of property, plant and
equipment and 10% of net earnings for each year until shareholders’ equity equals 30% of total assets. This reserve is not available for
payment of cash dividends, but may be transferred to capital stock or used to reduce the accumulated deficit, if any.
(D) Pursuant to Korean tax law, the Company is allowed to claim a tax deduction in determining taxable income for the amounts of retained
earnings appropriated to reserves for overseas market development, overseas investment losses, technology development, export
losses and losses on disposal of treasury stock. These amounts are not available for dividends until used for the specified purposes or
reversed.
(E) The reserve for facilities represents amounts appropriated by the Company for capital expenditures and may be used for any purpose
through a shareholders’ resolution.
16. Dividends
On June 30, 2000 and 1999, the Company declared a 10% cash dividend to shareholders of common stock and preferred stock as an interim
dividend for the six-month period ended June 30, 2000 and 1999. A cash dividend of 85,886 million and 84,664 million was paid on June
30, 2000 and 1999 respectively.
71
Retained Earnings
Appropriated:
Legal reserve
Reserve for business rationalization
Reserve for improvement of financial structure
Reserve for overseas market development
Reserve for overseas investment losses
Reserve for technology development
Reserve for export losses
Reserve for loss on disposal of treasury stock
Reserve for facilities investment
Unappropriated:
Total
Reference
(A)
(B)
(C)
(D)
(D)
(D)
(D)
(D)
(E)
440,789,000
2,512,100,829
204,815,000
510,750,423
164,982,454
3,838,397,908
167,749,074
200,000,000
2,714,811,000
10,754,395,688
31,409
10,754,427,097
387,789,000
1,512,100,829
204,815,000
548,741,108
213,382,454
2,023,097,908
217,118,059
–
134,615,000
5,241,659,358
31,989
5,241,691,347
Thousands of Won
2000 1999