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107106
2014 Samsung Electronics Annual Report2014 Samsung Electronics Annual Report
(3) Details of cumulative income or expense recognized in other comprehensive
income relating to the disposal group classified as held-for-sale as at Decem-
ber 31, 2014 and 2013, are as follows:
(In millions of Korean won)
Amount
Gain on valuation of available-for-sale
securities
₩24,750
Changes in equity under the equity-
method
54,118
Foreign exchange translation adjustment 1,233
Total ₩80,101
(B) As at December 31, 2013
The Group entered into a comprehensive business cooperation agreement with
Corning Incorporated during the year ended December 31, 2013. During the year
ended December 31, 2014, the Group sold all of its shares of Samsung Corning
Precision Materials. The Group received an additional dividend declared following
the resolution of the general meeting of the Samsung Corning Precision Materials
shareholders. Also, the respective agreement includes ex-post settlement condi-
tions based on the business performance of Samsung Corning Precision Materi-
als which may result in the future outflow of or inflow to the Group’s resource. As at
the reporting date, the future inflow or outflow are uncertain and thus, its impact to
the Group’s financial statements cannot be estimated. The Group’s management,
however, believes the future inflow or outflow will not have a material impact on
the financial conditions of the Group.
38. Events after the Reporting Period
(A) On January 1, 2015, Samsung Electronics America (SEA), a subsidiary of
the Group, merged with Samsung Telecommunications America (STA), also
a subsidiary of the Group. The merger was between two subsidiaries under
common control, therefore, the merger was accounted for by transferring the
book values on the consolidated financial statements. No additional goodwill
was recognized.
(B) Based on an agreement entered into in September 1999 related to Samsung
Motor Inc.’s (“SMI”) bankruptcy proceedings, SMI’s creditors (the “Creditors”)
filed a civil action in December 2005 against 28 Samsung Group affiliates,
including the Group, seeking to recover KRW 2,450 billion in losses as well
as additional penalty amounts. On January 29, 2015, the Supreme Court
ordered the Samsung Group affiliates to pay the Creditors an additional pen-
alty of KRW 600 billion plus an interest on late penalty payment (charged at
6% annual interest rate). On January 11, 2011, the Seoul High Court ordered
Samsung Group affiliates to pay to the Creditors a penalty of KRW 600 billion
and interest due to late payment. Compared to the January 2011 ruling, the
penalty amount remained the same and the interest charge on late penalty
payment increased by 1% annually, thus the total amount due to Creditors
increased by KRW 4 billion as a result of the Supreme Court’s January 2015
decision.