Samsung 2013 Annual Report Download - page 44

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2013 SAMSUNG ELECTRONICS ANNUAL REPORT
20. Share Capital
The Company’s total number of authorized shares is 500,000,000 shares (￦5,000 per share). The Company has issued 147,299,337 shares of common stock and
22,833,427 shares of preferred stock as of December 31, 2013, excluding retired shares. Due to retirement of shares, the total par value of the shares issued is
￦850,664 million (common stock ￦736,497 million, preferred stock ￦114,167 million), which does not agree with paid-in capital of ￦897,514 million.
Changes in the number of shares outstanding for the years ended December 31, 2013 and 2012, are as follows:
(In number of shares)
Number of shares of
Preferred stock Common stock Total
Balance as of January 1, 2012 19,853,734 130,386,723 150,240,457
Disposal of treasury stock through exercise of stock option - 191,309 191,309
Other disposal of treasury stock - 269,867 269,867
Balance as of December 31, 2012 19,853,734 130,847,899 150,701,633
Disposal of treasury stock through exercise of stock option - 67,222 67,222
Balance as of December 31, 2013 19,853,734 130,915,121 150,768,855
21. Retained Earnings
Retained earnings as of December 31, 2013 and 2012, consist of:
(In millions of Korean won)
2013 2012
Appropriated, etc. ￦104,175,235 ￦87,915,275
Unappropriated 44,425,047 32,070,414
Total 148,600,282 119,985,689
(B) Lease
The Company leases certain property, plant and equipment under various nance lease arrangements. Assets recorded under nance lease agreements are
included in property, plant and equipment with a net book value of ￦110,655 million (2012: ￦121,402 million). Depreciation expense for the nance lease assets
amounted to ￦10,587 million for the year ended December 31, 2013 (2012: ￦9,650 million).
The minimum lease payments under nance lease agreements and their present value as of December 31, 2013 and 2012, are as follows:
(In millions of Korean won)
2013 2013
Minimum Lease
payments
Present
values
Minimum Lease
payments
Present
values
Within one year ￦27,893 ￦19,811 ￦21,399 ￦13,293
From one year to ve years 57,508 28,213 70,310 40,216
More than ve years 95,192 54,189 108,865 61,555
Total ￦180,593 ￦102,213 ￦200,574 ￦115,064
Present value adjustment (78,380) (85,510)
Finance lease payables ￦102,213 ￦115,064
(C) Litigation
(1) Based on the agreement entered on August 24, 1999 with respect to Samsung Motor Inc.’s (“SMI”) bankruptcy proceedings, SMI’s creditors (the “Creditors”)
led a civil action against Mr. Kun Hee Lee, chairman of the Company, and 28 Samsung Group afliates including the Company under joint and several liability
for failing to comply with such agreement. Under the suit, the Creditors have sought ￦2,450 billion (approximately USD 2.32 billion) for loss of principal on
loans extended to SMI, a separate amount for breach of the agreement, and an amount for default interest. During the course of Samsung Life Insurance’s (“SLI”)
Initial Public Offering (“IPO”), its shares owned by the Creditors were disposed of, and the part of proceeds exceeding the par value of ￦70,000 was deposited
into an escrow account ￦877.6 billion, approximately USD 0.83 billion). Most of the claims with regards to the lawsuit have been withdrawn. On January 11,
2011, the Seoul High Court ordered Samsung Group afliates to pay to the Creditors ￦600 billion (approximately USD 0.57 billion) and penalties due to delay.
In accordance with the Seoul High Court order, ￦620.4 billion (which includes penalties and interest owed) was paid to the Creditors from the funds held
in escrow during January 2011. The Samsung Group afliates and the Creditors appealed the Seoul High Court’s ruling to the Korean Supreme Court and
the appeal is currently in progress.
(2) The litigation with Apple Inc. in multiple regions including the USA is ongoing as of the reporting date. Regarding the ongoing lawsuit in the USA, on August
24, 2012, the jury determined that the Company partially infringed Apple’s design and utility patent and should pay damages to Apple. On March 1, 2013,
however, the Judge ordered a new trial for a certain portion of the damages, ruling that it was originally miscalculated. As of the reporting date, the rst appeal
is still ongoing regarding the jury’s verdict on November 21, 2013. The nal conclusion and the effect of the patent lawsuits with Apple are uncertain as of
the reporting date.
(3) In addition, during the normal course of business with numerous companies, the Company has been involved in various claims, disputes, and investigations
conducted by regulatory bodies. Although, the outow of resources and timing of these matters are uncertain, the Company believes the outcome will not have
a material impact on the nancial condition of the Company.
(D) Other commitments
As of December 31, 2013, the Company has a trade nancing agreement, trade notes receivable discounting facilities, and loan facilities with accounts receivable
pledged as collateral with 13 nancial institutions, including Woori Bank, with a combined limit of up to ￦13,309,900 million.
In addition, the Company has a trade nancing agreement with 19 nancial institutions, including Korea Exchange Bank, for up to US$3,723 million and ￦83,000
million, and has loan facilities with accounts receivable pledged as collateral with 6 nancial institutions, including Industrial Bank of Korea, for up to ￦288,600
million.
Samsung Display has a facility loan agreement with 3 nancial institutions including SMBC for up to JPY 60,700 million.
Two foreign subsidiaries including SEA have a contract for issuing ABS (Asset Backed Securities) backed by accounts receivable with BTMU and other nancial
institutions for up to US$1,169 million and other 3 subsidiaries including SSDG have a credit facility agreement with Bank of China and other nancial institutions
for up to CNY 3,400 million and EUR 30 million.