Samsung 2009 Annual Report Download - page 40

76 77 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEC is authorized, subject to the Board of Directors’ approval, to retire treasury stock in accordance with applicable laws up to the
maximum amount of certain undistributed earnings. As of December 31, 2009, 8,310,000 shares of common stock and 1,060,000 shares
of non-voting preferred stock had been retired over three trenches, with the Board of Directors' approval.
As of December 31, 2009, exclusive of retired stocks, 147,299,337 shares of common stock and 22,833,427 shares of preferred stock
have been issued. The preferred shares which are non-cumulative and non-voting, were all issued on or before February 28, 1997, and are
entitled to an additional cash dividend of 1% of par value over common stock.
The par value of capital stock differs from paid-in capital as the retirement of capital stock was recorded as a deduction from retained
earnings.
SEC has issued global depositary receipts (“GDR”) to overseas capital markets. The number of outstanding GDR as of December 31, 2009
and 2008, are as follows:
23. Retained Earnings
Retained earnings as of December 31, 2009 and 2008, consist of the following:
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 through a resolution of the Board of Directors or used to reduce accumulated deficit, if any, with the ratification of the
shareholders.
2009 2008
Non-voting
Preferred Stock
Common
Stock
Non-voting
Preferred Stock
Common
Stock
Outstanding GDR
- Share of Stock 3,519,155 8,921,328 3,402,937 8,661,570
- Share of GDR 7,038,310 17,842,656 6,805,874 17,323,140
2009 2008
Appropriated
Legal reserve:
Earned surplus reserve 1
₩
450,789
₩
450,789
Discretionary reserve:
Reserve for improvement of financial structure 204,815 204,815
Reserve for business rationalization 10,512,101 9,512,101
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 29,936,458 26,936,458
Reserve for export losses 167,749 167,749
Reserve for loss on disposal of treasury stock 3,100,000 3,100,000
Reserve for capital expenditure 9,632,937 8,816,905
54,680,581 49,864,549
Unappropriated 9,580,623 5,555,022
Total
₩
64,261,204
₩
55,419,571
(In millions of Korean won)
24. Dividends
SEC declared cash dividends to shareholders of common stock and preferred stock as interim dividends for the six-month periods ended
June 30, 2009 and 2008, and as year-end dividends for the years ended December 31, 2009 and 2008.
Details of interim dividends and year-end dividends are as follows:
(A) Interim Dividends
(B) Year-end Dividends
(C) Dividend Payout Ratio
(D) Dividend Yield Ratio
1. The average closing price for a week before 2 trading days prior to closing date of shareholders' list.
(In millions of Korean won and number of shares)
2009 2008
Number of shares eligible for dividends Common stock 127,160,064 shares 126,968,200 shares
Preferred stock 19,853,734 shares 19,853,734 shares
Dividend rate 10% 10%
Dividend amount Common stock
₩
63,580
₩
63,484
Preferred stock 9,927 9,927
₩
73,507
₩
73,411
(In millions of Korean won and number of shares)
2009 2008
Number of shares eligible for dividends Common stock 128,271,387 shares 127,035,908 shares
Preferred stock 19,853,734 shares 19,853,734 shares
Dividend rate Common stock 150% 100%
Preferred stock 151% 101%
Dividend amount Common stock
₩
962,035
₩
635,180
Preferred stock 149,896 100,261
₩
1,111,931
₩
735,441
(In millions of Korean won and number of shares)
2009 2008
Dividends
₩
1,185,438
₩
808,852
Net income 9,649,487 5,525,904
Dividend payout ratio 12.28% 14.64%
(In millions of Korean won and number of shares)
2009 2008
Common Stock Preferred Stock Common Stock Preferred Stock
Dividend per share
₩
7,500
₩
7,550
₩
5,500
₩
5,550
Market price 1 735,295 480,890 464,625 278,250
Dividend yield ratio 1.02% 1.57% 1.18% 1.99%