Samsung 2000 Annual Report Download - page 72

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The year-end cash dividend for the prior fiscal year was 342,729 million. For the year ended December 31, 2000, a cash dividend of
422,670 million (common stock: 50%, preferred stock: 51%) excluding the interim dividend is proposed for the general shareholders’
meeting to be held on March 16, 2001. Including this proposed final dividend, the dividend payout ratio is approximately 8.46% and 13.48%
at December 31, 2000 and 1999, respectively.
17. Treasury Stock
During the year ended December 31, 2000, the Company has acquired 3,000,000 shares of its own common stock and 400,000 shares of its
own non-voting preferred stock. As of December 31, 2000, the Company holds 6,449,625 shares of its own common stock and 1,269,693
shares of its own preferred stock. This treasury stock is recorded as a capital adjustment .
18. Stock Option Plan
The Company has a stock option plan that provides for granting stock purchase options to employees or directors who have contributed or
are expected to contribute to the management and technology innovation of the Company.
The Company granted such options on March 16, 2000, which can be exercised for up to 1,500,000 common shares (see Note 1) at an
exercise price of 272,700 per share. This price will be adjusted in the event of a new share offering, stock dividend, stock split or stock
merger. These options, with a service period of two years from the date of the grant, can be exercised after three and within seven years
from the date of the grant.
The Company recognized the compensation cost for these options using the fair value method based on an expected stock price volatility of
69.48%, estimated risk-free interest rates of 9.08%, expected exercise term of four years and expected dividend yield of 0.39%. The cost of
the stock option plan was 93,746 million for the year ended December 31, 2000, and will be 141,424 million from the following year.
19. Income Tax Expense
The statutory income tax rate applicable to the Company, including resident surtax, is approximately 30.8%. Income tax expense for the
year ended December 31, 2000 and 1999 consists of the following:
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:
72
Income Taxes
Current income taxes
Deferred income taxes
Total
1,186,607,415
899,310,939
2,085,918,354
658,526,912
199,038,851
857,565,763
Thousands of Won
2000 1999
Tax Rate Calculation
Income before taxes
Statutory tax rate
Expected taxes at statutory rate
Tax credit
Others, net
Actual taxes
Effective tax rate
8,100,448,546
30.8%
2,494,938,152
(455,027,917)
46,008,119
2,085,918,354
25.8%
4,027,968,337
30.8%
1,240,614,248
(403,263,139)
20,214,654
857,565,763
21.3%
Thousands of Won
2000 1999