Samsung 2005 Annual Report Download - page 119

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117
Note 21: Retained Earnings
Retained earnings as of December 31, 2005 and 2004 consist of the following:
(in millions of Korean won) 2005 2004
Appropriated legal reserve 1\450,789 \447,789
Reserve for business rationalization 6,512,101 5,512,101
Reserve for improvement of financial structure 2 204,815 204,815
Reserve for overseas market development 510,750 510,750
Reserve for overseas investment losses 164,982 164,982
Reserve for research and human resource development 14,936,458 10,936,458
Reserve for export losses 167,749 167,749
Reserve for loss on disposal of treasury stock 1,350,000 800,000
Reserve for capital expenditure 5,504,657 4,859,891
29,802,301 23,604,535
Unappropriated 7,566,964 6,972,419
\37,369,265 \30,576,954
1 The Commercial Code of the Republic of Korea 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 its issued capital stock. The reserve is not available for the payment
of cash dividends, but may be transferred to capital stock by the resolution of the Board of Directors or used to reduce accumulated deficit,
if any, with the ratification by the shareholders.
2 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 the shareholders’ equity equals 30% of total assets. This reserve is not available for
the payment of cash dividends, but may be transferred to capital stock or used to reduce accumulated deficit, if any.
(in millions of Korean won, except for the number of shares) 2005 2004
Number of shares eligible for dividend Common stock 132,435,367 shares 137,274,021 shares
Preferred stock 20,868,071 shares 20,953,734 shares
Dividend rate 10% 100%
Dividend amount Common stock \66,218 \686,370
Preferred stock 10,434 104,769
\76,652 \791,139
Note 22: Dividends
SEC declared cash dividends to shareholders of common
stock and preferred stock as interim dividends for the six-
month periods ended June 30, 2005 and 2004, and as year-end
dividends for the years ended December 31, 2005 and 2004.
Details of interim dividends and year-end dividends are as follows:
(A) Interim Dividends