Samsung 2009 Annual Report Download - page 37

70 71 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Maturities of foreign currency notes and bonds, outstanding as of December 31, 2009, are as follows:
17. Accrued Severance Benefits
Change in accrued severance benefits for the years ended December 31, 2009 and 2008, consist of the following:
1. Others include amounts from changes in scope of consolidation and changes in foreign currency exchange rates.
As of December 31, 2009, the Company funded 66.5% of severance payable through severance insurance deposits with Samsung Life
Insurance and Samsung Fire & Marin Insurance. In addition, Samsung Card, one of SEC’s domestic subsidiaries, implemented a defined
benefit pension plan with Samsung Life Insurance in accordance with Employee Retirement Benefit Security Act. Retirement pension plan
assets as of December 31, 2009 consist primarily of cash and cash equivalents (95.2%) and securities (2.7%).
18. Accrued expense
Changes in main liability provisions for the years ended December 31, 2009 and 2008, are as follows:
(In millions of Korean won)
(In millions of Korean won)
(In millions of Korean won)
For the Years Ending December 31 Foreign Currency Notes and Bonds
2010
₩
210,168
2011 5,838
2012 5,838
2013 5,838
Thereafter 110,922
₩
338,604
2009 2008
Balance at the beginning of the year
₩
2,313,423
₩
2,041,713
Provision for severance benefits 645,440 543,980
Actual severance payments (545,090) (286,875)
Others 180,757 14,605
2,494,530 2,313,423
Less: Cumulative deposits to the National Pension Fund (8,814) (10,190)
Severance insurance deposits (400,029) (1,391,194)
Retirement pension operating assets (1,257,882) (61,806)
Balance at the end of the year
₩
827,805
₩
850,233
2009
Reference January 1,
2009 Increase Decrease Others1December 31,
2009
Warranty reserves (A)
₩
1,343,692
₩
2,072,069
₩
1,911,825
₩
(61,848)
₩
1,442,088
Royalty expenses (B) 1,326,239 778,480 538,910 (4,854) 1,560,955
Long-term incentives (C) 176,887 132,200 64,644 - 244,443
Point reserves (D) 163,099 218,345 214,539 - 166,905
Allowance for undrawn
commitment (E) 232,880 5,716 - - 238,596
Maturities of long-term debts outstanding, excluding premiums and discounts on debentures, as of December 31, 2009, are as follows:
16. Foreign Currency Notes and Bonds
Unsecured foreign currency notes and bonds as of December 31, 2009 and 2008, consist of the following:
(A) US dollar 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) US dollar floating rate notes
US dollar floating rate notes issued by Samsung Card, one of SEC’s domestic subsidiaries, will be repaid at their maturities.
Interests will be paid every quarter.
(C) Overseas subsidiaries
Overseas subsidiaries' bonds will be repaid at maturities with the biannual interest payments over the terms of the bonds. SEC has
provided guarantees over the overseas subsidiaries' bonds.
(In millions of Korean won)
(In millions of Korean won)
For the Years Ending
December 31 Local Currency Loans Foreign Currency Loans Debentures Total
2010
₩
624,852
₩
193,834
₩
2,100,000
₩
2,918,686
2011 304,850 739,796 1,690,000 2,734,646
2012 2,430 36,549 480,000 518,979
2013 - 68,816 100,000 168,816
Thereafter - 93,946 30,000 123,946
₩
932,132
₩
1,132,941
₩
4,400,000
₩
6,465,073
SEC and domestic subsidiary Reference Due Date 2009 2008
SEC and domestic subsidiary
US dollar denominated straight bonds (A) October 1, 2027
₩
105,084
₩
119,463
US dollar floating rate notes (B) August 28, 2010 204,330 220,063
SEC and domestic subsidiary
US dollar denominated fixed rate notes (C) - - 31,438
US dollar denominated fixed rate notes (C) April 1, 2030 29,190 31,438
338,604 402,402
Less: Discounts (4,658) (5,700)
333,946 396,702
Current maturities (209,763) (6,009)
₩
124,183
₩
390,693