Samsung 2006 Annual Report Download - page 112

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102
(A) US$ denominated straight bonds
On October 2, 1997, SEC 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 from 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. SEC has
provided guarantees over the overseas subsidiaries’ bonds.
Maturities of foreign currency notes and bonds, outstanding as of
December 31, 2006, are as follows:
For the years
Ending December 31
Foreign currency
notes and bonds
2008 \4,648
2009 4,648
2010 4,648
2011 4,648
Thereafter 120,848
\139,440
2006 2005
Balance at the beginning of the year \1,431,997 \1,155,698
Provision for severance benefits 522,926 459,499
Actual severance payments (184,845) (179,363)
Others ¹(693) (3,837)
1,769,385 1,431,997
Less: Cumulative deposits to the
National Pension Fund (13,156) (14,807)
Severance insurance deposits (1,001,591) (840,268)
Retirement pension operating assets (33,433) -
Balance at the end of the year \721,205 \576,922
Note 17 : Accrued Severance Benefits
Change in accrued severance benefits for the year ended December 31, 2006 and 2005, consist of the following:
Persentage of the component (%)
Financial instruments 58.61
Securities 5.81
Financing assets 0.27
Others 35.31
100
¹ Others include amounts from changes in scope of consolidation and changes in foreign currency exchange rates.
In 2006, Samsung Card Co., Ltd., a domestic subsidiary, implemented a defined benefit
pension plan with Samsung Life Insurance in accordance with Employee Retirement
Benefit Security Act.
Retirement pension operating assets as of December 31, 2006, consist of the following:
(In millions of Korean won)
(In millions of Korean won)