Samsung 2005 Annual Report Download - page 114

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112
Note 16: Foreign Currency Notes and Bonds
Unsecured foreign currency notes and bonds as of December 31, 2005 and 2004 consist of the following:
(in millions of Korean won) 2005 2004
Balance at the beginning of the year \1,155,698 \970,832
Provision for severance benefits 459,499 444,206
Actual severance payments (179,363) (250,184)
Others 1 (3,837) (9,156)
1,431,997 1,155,698
Less: Cumulative deposits to the National Pension Fund (14,807) (16,638)
Severance insurance deposits (840,268) (683,079)
Balance at the end of the year \576,922 \455,981
Year Foreign Currency Notes
and Bonds
2008 \ 5,065
2009 5,065
2010 5,065
Thereafter 136,755
\151,950
(in millions of Korean won)
(A) US$ denominated straight bonds
On October 2, 1997, the Company issued straight bonds in
the amount of US$100 million at 99.85% of face value. The
bonds bear interest at 7.7% per annum and will mature on
October 1, 2027, with repayments to be made annually for
20 years after a ten-year grace period which began on the
date of issuance.
(B) Overseas subsidiaries
Overseas subsidiaries’ bonds will be repaid at maturities with
the biannual interest payment over the terms of the bonds.
The SEC has provided guarantees over such overseas
subsidiaries’ bonds.
Maturities of foreign currency notes and bonds, outstanding
as of December 31, 2005, are as follows:
(in millions of Korean won) Reference Due date 2005 2004
SEC
USD denominated straight bonds (A) October 1, 2027 \101,300 \104,380
Overseas subsidiaries
USD denominated fixed rate notes (B) April 1, 2027 25,325 26,095
USD denominated fixed rate notes (B) April 1, 2030 25,325 26,095
151,950 156,570
Less: Current maturities - -
Less: Discounts (5,743) (5,834)
\146,207 \150,736
1 Others include amounts from changes in consolidation category and changes in foreign currency exchange rates.
Note 17: Accrued Severance Benefits
Changes in accrued severance benefits for the years ended December 31, 2005 and 2004, consist of the following: