Академический Документы
Профессиональный Документы
Культура Документы
and Subsidiaries
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
1.1 Company Overview
Samsung Electronics Co., Ltd. (SEC) was incorporated under the laws of the Republic of Korea in 1969 and
listed its shares on the Korea Stock Exchange in 1975.
SEC and its subsidiaries (collectively referred to as the Company) operate three business divisions: Consumer
Electronics (CE), Information technology & Mobile communications (IM), and Device Solution (DS). The
CE division includes digital TVs, monitors, printers, air conditioners and refrigerators and the IM division includes
mobile phones, communication system, and computers. The DS division includes products such as memory and
system LSI in the semiconductor business (Semiconductor), and LCD and OLED panels in the display business
(DP). The Company is domiciled in the Republic of Korea and the address of its registered office is Suwon, the
Republic of Korea.
These interim consolidated financial statements have been prepared in accordance with Korean International
Financial Reporting Standards (K-IFRS) 1110, Consolidated Financial Statements. SEC, as the controlling
Company, consolidates its 153 subsidiaries including Samsung Display and Samsung Electronics America. The
Company also applies the equity method of accounting to its 36 affiliates, including Samsung SDI.
1.2 Consolidated Subsidiaries
(A) The consolidated subsidiaries as of March 31, 2014 are as follows:
Area
Domestic
Subsidiaries
World Cyber Games
High Pioneer Private Investment Trust #1
Samsung Display (SDC)
SU Materials
STECO
SEMES
Samsung Electronics Service
Samsung Electronics Sales
Samsung Electronics Logitech
Samsung Electronics Football Club
Samsung Medison
Ray
Samsung Venture Capital Union #6
Samsung Venture Capital Union #14
Samsung Venture Capital Union #20
Samsung Venture Capital Union #21
Samsung Venture Capital Union #22
Samsung Venture Capital Union #23
Industry
Cyber game match hosting
Technology business venture capital investments
Manufacture and sale of display panels
Manufacture of LCD components
Manufacture of semiconductor components
Manufacture of semiconductor/FPD
Repair services for electronic devices
Sale of electronic devices
General logistics agency
Sponsoring of sports team and games
Medical equipment
Dental CT
Technology business venture capital investments
Technology business venture capital investments
Technology business venture capital investments
Technology business venture capital investments
Technology business venture capital investments
Technology business venture capital investments
14
Percentage
of
ownership1
99.9
100.0
84.8
50.0
51.0
91.5
99.3
100.0
100.0
100.0
68.5
68.1
99.0
99.0
99.0
99.0
99.0
99.0
Area
America
Europe
Subsidiaries
Samsung Electronics America (SEA)
NexusDX (Nexus)
Samsung Receivables (SRC)
NeuroLogica
Samsung Semiconductor (SSI)
Samsung Electronics Canada (SECA)
Samsung Information Systems America
(SISA)
Grandis
Samsung Mexicana (SAMEX)
Samsung International (SII)
Samsung Telecommunications America
(STA)
Samsung Austin Semiconductor (SAS)
Samsung Electronics Mexico (SEM)
SEMES America (SEMESA)
Samsung Electronics Digital Appliance
Mexico (SEDAM)
Samsung Electronics Latinoamerica Miami
(SEMI)
Nvelo
Samsung Electronics Latinoamerica (SELA)
Samsung Electronics Venezuela (SEVEN)
Samsung Electronica Colombia (SAMCOL)
Samsung Electronics Panama (SEPA)
Samsung Electronica da Amazonia (SEDA)
Samsung Electronics Argentina (SEASA)
Samsung Electronics Chile (SECH)
Samsung Electronics Peru (SEPR)
RT SV CO-INVEST (RT-SV)
Samsung Electronics (UK) (SEUK)
Samsung Electronics Holding (SEHG)
Samsung Semiconductor Europe GmbH
(SSEG)
Samsung Electronics GmbH (SEG)
Samsung Electronics Iberia (SESA)
Samsung Electronics France (SEF)
Samsung Electronics Hungarian (SEH)
Samsung Electronics Czech and Slovak
(SECZ)
Samsung Electronics Italia (SEI)
Samsung Electronics Europe Logistics
(SELS)
Samsung Electronics Benelux (SEBN)
Samsung Display Slovakia (SDSK)
Samsung Electronics Romania (SEROM)
Samsung Electronics Overseas (SEO)
Samsung Electronics Polska (SEPOL)
Samsung Electronics Portuguesa (SEP)
Samsung Electronics Nordic (SENA)
Industry
Sale of electronic devices
Medical equipment
Credit management
Medical equipment
Sale of semiconductor/LCD
Sale of electronic devices
R&D
Percentage
of
ownership1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
R&D
Manufacture of electronic devices
Manufacture of CTV/monitors
Sale of communication equipment
100.0
100.0
100.0
100.0
Manufacture of semiconductor
Sale of electronic devices
Semiconductor equipment
Manufacture of electronic devices
100.0
99.9
100.0
99.9
100.0
Software
Sale of electronic devices
Marketing and services
Sale of electronic devices
Consulting
Manufacture and sale of electronic devices
Marketing and services
Sale of electronic devices
Sale of electronic devices
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
15
Area
Europe
(Cont.)
Middle East
and Africa
Subsidiaries
Samsung Semiconductor Europe (SSEL)
Samsung Electronics Austria (SEAG)
Samsung Electronics Slovakia (SESK)
Samsung Electronics Europe Holding
(SEEH)
Samsung Electronics Poland Manufacturing
(SEPM)
Samsung Electronics Greece (SEGR)
Samsung Nanoradio Design Center (SNDC)
Nanoradio Hellas
SonoAce Deutschland (SMDE)
Samsung Medison Europe (SMNL)
Nanogen Recognomics (Nanogen)
Samsung Electronics Rus (SER)
Samsung Electronics Rus Company (SERC)
Samsung Electronics Ukraine (SEU)
Samsung Electronics Baltics (SEB)
Samsung Electronics Ukraine Company
(SEUC)
Samsung R&D Institute Rus (SRR)
Samsung Electronics Kazakhstan (SEK)
Samsung Electronics KZ and Central Asia
(SEKZ)
Samsung Electronics Rus Kaluga (SERK)
Samsung Russia Service Centre (SRSC)
Samsung Electronics (London) Limited
(SEL)
Samsung Denmark Research Center
(SDRC)
Samsung France Research Center (SFRC)
Samsung Cambridge Solution Centre
(SCSC)
Samsung Electronics Switzerland GmbH
(SESG)
Samsung Electronics West Africa (SEWA)
Samsung Electronics East Africa (SEEA)
Samsung Gulf Electronics (SGE)
Samsung Electronics Egypt (SEEG)
Samsung Electronics Israel (SEIL)
Samsung Electronics Tunisia (SETN)
Samsung Electronics Pakistan (SEPAK)
Samsung Electronics South Africa (SSA)
Samsung Electronics Turkey (SETK)
Samsung Semiconductor Israel R&D Center
(SIRC)
Samsung Electronics Levant (SELV)
Samsung Electronics Morocco (SEMRC)
Industry
Sale of semiconductor/LCD
Sale of electronic devices
Manufacture of CTV/monitors
Holding Company
Percentage
of
ownership1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
60.0
100.0
100.0
100.0
100.0
100.0
R&D
Marketing
Sale of electronic devices
100.0
100.0
100.0
Manufacture of CTV
Services
Holding Company
100.0
100.0
100.0
R&D
100.0
R&D
R&D
100.0
100.0
100.0
Marketing
Marketing
Sale of electronic devices
Manufacture and sale of electronic devices
Marketing
Marketing
Marketing
Sale of electronic devices
Sale of electronic devices
R&D
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
16
Area
China
Subsidiaries
Samsung Display Dongguan (SDDG)
Samsung Display Tianjin (SDTJ)
Samsung Electronics Hong Kong (SEHK)
Suzhou Samsung Electronics (SSEC)
Samsung Suzhou Electronics Export
(SSEC-E)
Samsung (China) Investment (SCIC)
Samsung Mobile R&D Center ChinaGuangzhou (SRC-Guangzhou)
Samsung Tianjin Mobile Development
Center (STMC)
Samsung Network R&D Center ChinaShenzhen (SRC-Shenzhen)
Samsung Electronics Suzhou Semiconductor
(SESS)
Samsung Electronics (Shandong) Digital
Printing (SSDP)
Samsung Electronics Huizhou (SEHZ)
Tianjin Samsung Electronics (TSEC)
Samsung Electronics Taiwan (SET)
Beijing Samsung Telecom R&D Center
(BST)
Tianjin Samsung Telecom Technology
(TSTC)
Shanghai Samsung Semiconductor (SSS)
Samsung Electronics Suzhou Computer
(SESC)
Samsung Display Suzhou (SDSZ)
Samsung Suzhou LCD (SSL)
Shenzhen Samsung Electronics
Telecommunication (SSET)
Samsung Electronics Shanghai
Telecommunication (SSTC)
Samsung Semiconductor (China) R&D
(SSCR)
Samsung Electronics China R&D Center
(SCRC)
Samsung (China) Semiconductor (SCS)
Samsung Electronics Hainan Fiberoptics
(SEHF)
Samsung Electronics (Beijing) Service
(SBSC)
Samsung Medison Shanghai Medical
Instrument (SMS1)
Medison Medical Equipment (Shanghai)
(MMS)
Tianjin Samsung LED (TSLED)
Tianjin Samsung Opto-Electronics (TSOE)
Samsung R&D Institute China-Xian
(SRC-Xian)
SEMES (Xian)
Industry
Manufacture of LCD
Manufacture of LCD
Sale of electronic devices
Manufacture of home appliances
Manufacture of home appliances
Percentage
of
ownership1
100.0
95.0
100.0
88.3
100.0
100.0
100.0
R&D
100.0
R&D
100.0
100.0
Manufacture of printers
100.0
99.9
91.2
100.0
100.0
90.0
Sale of semiconductor/LCD
Manufacture of electronic devices
100.0
100.0
100.0
60.0
95.0
100.0
R&D
100.0
R&D
100.0
Manufacture of semiconductor
Manufacture of optical fiber/cable
100.0
100.0
Services
100.0
Medical equipment
100.0
Medical equipment
100.0
Manufacture of LED
Manufacture of cameras/camcorders
R&D
100.0
90.0
100.0
Semiconductor equipment
100.0
17
Area
Subsidiaries
Industry
Samsung Japan (SJC)
Sale of electronic devices
Samsung R&D Institute Japan (SRJ)
R&D
Samsung Electronics Japan (SEJ)
Sale of electronic devices
Samsung Electronics Display (M) (SDMA)
Manufacture and sale of electronic devices
Samsung Electronics (M) (SEMA)
Manufacture of home appliances
Samsung Vina Electronics (SAVINA)
Manufacture and sale of electronic devices
Samsung Asia Private (SAPL)
Sale of electronic devices
Samsung India Electronics (SIEL)
Manufacture and sale of electronic devices
Samsung R&D Institute India-Bangalore
R&D
(SRI-B)
Samsung Electronics Australia (SEAU)
Sale of electronic devices
Samsung Electronics Indonesia (SEIN)
Manufacture and sale of electronic devices
Samsung Telecommunications Indonesia
Sale and services of communication systems
Rest of Asia
(STIN)
Thai Samsung Electronics (TSE)
Manufacture and sale of electronic devices
Samsung Electronics Philippines (SEPCO)
Sale of electronic devices
Samsung Malaysia Electronics (SME)
Sale of electronic devices
Samsung R&D Institute Bangladesh
R&D
(SRBD)
Samsung Electronics Vietnam (SEV)
Manufacture of electronic devices
Samsung Telecommunications Malaysia
Services of communication systems
(STM)
Samsung Electronics Vietnam
Manufacture of communication equipment
THAINGUYEN (SEVT)
Samsung Medison India (SMIN)
Medical equipment
Samsung Electronics New Zealand Limited
Sale of electronic devices
(SENZ)
1
Ownership represents the Companys ownership of voting rights in each entity.
18
Percentage
of
ownership1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.0
91.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Assets
38,249,727
10,423,630
9,942,772
6,254,454
6,213,170
6,204,120
5,711,748
5,655,211
5,228,827
4,357,735
3,814,011
3,615,716
3,077,680
3,038,166
2,518,042
2,058,072
1,918,345
1,709,492
1,645,383
1,497,497
1,439,920
1,355,363
1,309,487
1,283,786
1,273,158
19
Liabilities
7,721,931
5,406,833
8,313,024
3,275,906
2,305,260
2,790,329
3,949,468
3,237,029
2,317,033
3,653,511
1,729,165
1,907,654
674,787
2,703,256
1,519,055
1,656,923
426,436
532,857
645,458
898,474
1,181,234
341,907
1,396,514
1,298,710
841,477
1,279,409
(33,028)
20,116
15,702
792,168
16,344
55,971
(24,989)
146,518
45,843
204,166
203,564
1,061,523
33,620
229,941
302,234
32,007
47,956
(74,783)
(100,894)
12,058
47,787
(153,191)
10,601
82,402
Assets
35,754,894
12,248,560
8,406,438
7,346,339
6,393,348
5,780,302
5,625,759
4,735,432
4,599,200
3,752,682
3,429,136
2,939,027
2,425,585
1,924,832
1,903,892
1,764,078
1,554,638
1,476,296
1,463,589
1,410,054
1,393,507
1,390,404
1,310,109
1,290,124
1,249,691
Liabilities
6,682,229
7,262,519
6,780,610
3,991,768
3,467,968
4,025,760
1,493,868
4,085,299
1,802,686
1,284,560
1,658,072
1,415,277
1,099,521
1,195,824
1,806,486
317,224
1,311,133
373,181
379,118
1,107,915
705,504
1,141,842
1,005,056
322,622
253,536
Subsidiary
RT SV CO-INVEST (RT-SV)
Description
Acquisition of shares
(2) Subsidiary excluded from the consolidation for the three months ended March 31, 2014:
Area
Asia
Subsidiary
Medison Medical Systems (India) (MI)
Description
Liquidation
20
605,530
50,136
292,902
8,272
(353)
2,137
639,348
(35,980)
323,007
(4,228)
103,948
259,134
761,478
93,942
179,553
37,810
(3,944)
61,559
(2,953)
12,471
12,679
20,895
17,314
1,428
37,870
21
Assets at fair
value through
profit and loss
Loans and
receivables
Available-for-sale
financial assets
Total
59,206
18,150,284
41,261,844
25,235,924
6,331,258
2,066,226
8,139,616
-
18,150,284
41,261,844
2,066,226
25,235,924
8,139,616
6,390,464
Total
59,206
90,979,310
10,205,842
101,244,358
Liabilities at fair
value through
profit and loss
Liabilities
Trade and other payables
Short-term borrowings
Debentures
Long-term borrowings
Long-term other payables
Other
Total
Financial
liabilities
measured at
amortized cost
Other
financial
liabilities
Total
274,645
20,381,414
2,604,866
1,326,287
2,647,966
2,708,783
9,103,365
4,677,703
-
20,381,414
7,282,569
1,326,287
2,647,966
2,708,783
9,378,010
274,645
38,772,681
4,677,703
43,725,029
22
Liabilities
Trade and other payables
Short-term borrowings
Debentures
Long-term borrowings
Long-term other payables
Other
Total
Available-for-sale
financial assets
Total
40,552
16,284,780
36,722,702
24,988,532
5,432,404
1,488,527
6,238,380
-
16,284,780
36,722,702
1,488,527
24,988,532
6,238,380
5,472,956
40,552
83,428,418
7,726,907
91,195,877
Liabilities at fair
value through
profit and loss
Loans and
receivables
Financial
liabilities
measured at
amortized cost
Other
financial
liabilities
Total
244,172
16,314,720
3,181,582
1,311,068
985,117
1,023,714
13,044,171
3,256,935
-
16,314,720
6,438,517
1,311,068
985,117
1,023,714
13,288,343
244,172
35,860,372
3,256,935
39,361,479
Debt securities
Total
1
4,089,318
4,399,314
3,430,683
782,297
619,615
1,056,769
8,139,616
6,238,380
During the three months ended March 31, 2014, the Company acquired 2,300 shares of convertible preferred stock of Corning
Incorporated for 2,434,320 million.
2
The maximum exposure to credit risk of available-for-sale debt securities is the carrying value at the reporting date.
23
Number of
Shares Owned
Samsung Heavy Industries
Samsung Fine Chemicals
Hotel Shilla
Cheil Worldwide
iMarket Korea
SFA
Wonik IPS
ASML
CSR1
Rambus
Seagate Technology
Wacom
Sharp
Other
40,675,641
2,164,970
2,004,717
2,998,725
647,320
1,822,000
7,220,216
12,595,575
4,788,125
12,539,490
8,398,400
35,804,000
-
Total
1
258,299
17.6
8.4
45,678
5.1
13,957
2.6
2,920
1.8
324
10.2
38,262
9.0
63,249
2.8
726,024
4.3
92,682
3.8
218,544
5.0
62,013
3.0
122,535
47,014
1,691,501
Book Value
(Market Value)
1,295,519
105,867
172,606
71,819
21,264
80,077
64,404
1,244,280
55,014
752,668
63,246
116,779
45,775
4,089,318
December 31,
2013
Book Value
(Market Value)
1,547,708
96,449
133,314
82,465
16,668
74,884
61,949
1,248,019
110,135
47,851
743,161
62,268
120,143
54,300
4,399,314
During the three months ended March 31, 2014, the Company sold all of its investment in CSR for EUR 79 million.
Acquisition cost includes impairment loss on available-for-sale financial assets recognized due to the decline in
realizable value below acquisition cost.
The difference between the acquisition cost and the current fair value, after income tax effects, is recorded within
other components of equity (unrealized gains or losses on available-for-sale financial assets).
5. Inventories
Inventories as of March 31, 2014 and December 31, 2013, are as follows:
(In millions of
Korean won)
Finished goods
Work in process
Raw materials and
supplies
Materials in transit
Total
Gross
Amount
6,623,615
4,892,687
7,643,240
1,059,421
20,218,963
(570,482)
7,443,463
1,059,421
19,648,481
24
Gross
Amount
7,597,391
4,352,080
6,960,985
826,140
19,736,596
6,809,112
826,140
19,134,868
2014
6,422,292
184,700
30,136
(99,785)
6,537,343
Balance as of January 1
Acquisition
Share of profit
Other1
Balance as of March 31
1
2013
8,785,489
21,034
177,936
(183,662)
8,800,797
Other consists of dividends, business combinations, and effects of changes in foreign exchange rates.
(B) Major investments in associates and joint ventures as of March 31, 2014, are as follows:
(1) Investments in associates
Investee
Samsung Card
Samsung Electro-Mechanics
Samsung SDI2
Samsung SDS
Samsung Techwin
Percentage of
Ownership1 (%)
Principal
Business
Location
37.5
Korea
23.7
Korea
20.4
Korea
22.6
Korea
25.5
Korea
Investee
Samsung Corning Advanced Glass
1
Percentage of
Ownership1 (%)
Principal
Business
Location
50.0
Korea
25
Acquisition cost
Samsung Card
Samsung Electro-Mechanics
Samsung SDI
Samsung SDS
Samsung Techwin
Other
Total
Acquisition cost
Samsung Card
Samsung Electro-Mechanics
Samsung SDI
Samsung SDS
Samsung Techwin
Other
Total
1,538,540
359,237
423,722
147,963
174,531
670,029
3,314,022
1,538,540
359,237
423,722
147,963
174,531
582,646
3,226,639
2,307,465
933,047
1,462,518
870,007
438,663
449,235
6,460,935
2,322,897
951,693
1,451,770
858,671
433,624
375,959
6,394,614
Book value
2,324,464
934,497
1,185,120
892,026
402,863
572,948
6,311,918
Book value
2,340,009
954,496
1,175,204
879,956
402,745
548,553
6,300,963
Companys portion of net asset value of associates is based on the Companys ownership percentage.
Acquisition cost
Total
215,000
422,995
637,995
Acquisition cost
115,000
Total
422,995
537,995
206,498
15,487
221,985
111,961
(16,357)
95,604
Companys portion of net asset value of joint ventures is based on the Companys ownership percentage.
26
Book value
206,398
19,027
225,425
Book value
111,961
9,368
121,329
Balance as of
January 1
Samsung Card
2,340,009
954,496
1,175,204
879,956
402,745
111,961
557,921
6,422,292
Samsung Electro-Mechanics
Samsung SDI
Samsung SDS
Samsung Techwin
Samsung Corning Advanced Glass
Other
Total
1
Gain/loss on
valuation
25,326
(1,012)
7,528
16,951
965
(5,446)
(14,176)
30,136
Other
comprehensive
income/loss
(10,496)
(5,717)
16,313
(513)
5,915
(11)
(2,744)
2,747
Other1
(30,375)
(13,270)
(13,925)
(4,368)
(6,762)
99,894
50,974
82,168
Balance as of
March 31
2,324,464
934,497
1,185,120
892,026
402,863
206,398
591,975
6,537,343
Other consists of acquisitions, disposals, dividends, and effects of changes in currency exchange rates.
Balance as of
January 1
Samsung Card
Samsung Electro-Mechanics
Samsung SDI
Samsung SDS
Samsung Techwin
Samsung Corning Precision Materials2
Samsung Corning Advanced Glass
Other
2,238,073
Total
890,460
1,174,183
701,808
360,739
2,794,617
114,274
511,335
8,785,489
Gain/loss on
valuation
24,903
20,902
15,116
19,008
8,235
121,163
(358)
(31,033)
177,936
Other
comprehensive
income/loss
(677)
6,656
1,383
3,142
1,103
320
3,446
15,373
Other1
(30,375)
(17,882)
(14,430)
(3,750)
(6,698)
(135,924)
31,058
(178,001)
Balance as of
March 31
2,231,924
900,136
1,176,252
720,208
363,379
2,780,176
113,916
514,806
8,800,797
Other consists of acquisitions, disposals, dividends, and effects of changes in currency exchange rates.
During the year ended December 31, 2013, the Company signed a framework agreement for comprehensive business cooperation
with Corning Incorporated. The Company classified its share in Samsung Corning Precision Materials Co., Ltd (ownership
percentage: 42.54%) as assets held for sale as of December 31, 2013, and disposed of such shares for 2,013,457 million during the
three months ended March 31, 2014. Pursuant to the agreement, the Company received additional dividends after the resolution of
the Samsung Corning Precision materials Co., Ltd shareholders meeting.
2
27
Investee
1. Condensed financial information
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interests
Revenue
2. Dividends from associates
Dividends
Samsung
Card1
16,681,805
10,520,349
731,583
30,375
Samsung
Techwin
2,691,631
4,523,571
1,864,128
1,174,699
84,093
1,728,771
1,955,254
8,679,529
1,506,463
1,541,043
154,556
1,135,684
3,039,170
2,335,112
1,214,477
222,305
84,502
1,866,857
1,696,612
1,914,668
1,323,395
563,165
1,775
661,745
13,270
13,924
4,368
6,763
Samsung Card does not present current and non-current assets, and current and non-current liabilities, as separate classifications
in its statement of financial position.
(In millions of Korean won)
Investee
Income (loss) from continuing
operations1
Other comprehensive income (loss)1
Total comprehensive income (loss)1
1
Samsung
Card
67,602
(28,026)
39,576
1,661
(25,486)
(23,825)
28
39,133
94,252
133,385
71,871
(2,270)
69,601
10,164
36,089
46,253
Other
(33,017)
4,817
(28,200)
Investee
1. Condensed financial information
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Non-controlling interests
Revenue2
2. Dividends from associates
Dividends
As of December 31, 2013, and for the three months ended March 31, 2013
Samsung
Samsung
ElectroSamsung
Card1
Mechanics
Samsung SDI
Samsung SDS
Techwin
16,560,926
10,358,265
746,190
30,375
2,650,765
4,534,578
1,787,432
1,139,884
83,966
2,043,716
2,063,192
8,492,479
1,526,957
1,486,297
164,323
1,208,192
2,928,998
2,371,102
1,219,484
197,237
80,644
1,498,391
1,561,706
1,872,518
1,169,253
560,191
1,628
655,368
17,693
13,924
3,914
6,763
Samsung Card does not present current and non-current assets, and current and non-current liabilities, as separate classifications
in its statement of financial position.
2
Amounts relate to the three months ended March 31, 2013.
(In millions of Korean won)
Investee
Income (loss) from continuing
operations1, 2
Other comprehensive income1, 2
Total comprehensive income (loss)1, 2
1
2
Samsung
Card
66,473
2,697
69,170
95,047
27,945
122,992
29
77,653
598
78,251
84,348
14,500
98,848
31,434
4,406
35,840
Other
(19,213)
11,586
(7,627)
248,884
37,742
228,628
62,441
56,020
2,075
50,227
87
103
(2,212)
171,353
64,113
95,310
42,674
40,575
67
15,890
38
1,255
(89)
Investee
(10,904)
(23)
(10,927)
(49,980)
11,547
(38,433)
(717)
(717)
(46,289)
(424)
(46,713)
(F) Fair value of marketable investments in associates as of March 31, 2014 and December 31, 2013, is as
follows:
March 31, 2014
(In millions of Korean won and
number of shares)
Samsung SDI
Samsung Electro-Mechanics
Samsung Card
Samsung Techwin
30
Market value
1,494,523
1,226,131
1,503,573
783,210
1,503,806
1,291,595
1,622,905
735,865
Balance as of January 1
Acquisition and capital expenditures
Business combinations
Depreciation
Sales/disposals/impairment
Other1
Balance as of March 31
1
2013
75,496,388
5,373,794
(4,004,084)
(249,785)
(97,277)
76,519,036
68,484,743
3,882,000
1,052
(3,775,468)
(141,024)
314,356
68,765,659
(B) Details of depreciation of property, plant and equipment by line item for the three months ended March 31,
2014 and 2013, are as follows:
(In millions of Korean won)
2014
Cost of sales
3,619,728
3,438,636
384,356
4,004,084
336,832
3,775,468
2013
8. Intangible Assets
(A) Changes in intangible assets for the three months ended March 31, 2014 and 2013, are as follows:
(In millions of Korean won)
2014
Balance as of January 1
Internally generated (development costs)
External acquisitions
Business combinations
Amortization
Sales/disposals/impairment
Other1
Balance as of March 31
31
2013
3,980,600
186,694
80,452
(252,337)
(3,802)
128,630
4,120,237
3,729,705
89,101
176,017
166,553
(231,598)
(5,086)
152,259
4,076,951
2013
Cost of sales
Selling and administrative expenses
107,648
144,689
96,959
134,639
Total
252,337
231,598
9. Borrowings
Details of the carrying amounts of borrowings as of March 31, 2014 and December 31, 2013, are as follows:
Financial
Institutions
0.6 ~ 10.5
0.4 ~ 18.1
Total
Current portion of
long-term borrowings
Bank borrowings
Financial lease liabilities2
1.3 ~ 7.4
1.1 ~ 15.7
3,256,935
3,181,582
7,282,569
6,438,517
699,386
18,018
717,404
1,900,937
19,811
1,920,748
2,561,016
86,950
2,647,966
Total
1
4,677,703
2,604,866
0.5 ~ 1.1
1.1 ~ 15.7
December 31,
2013
Total
Long-term borrowings
Bank borrowings
Financial lease liabilities2
March 31,
2014
902,715
82,402
985,117
10. Debentures
Details of the carrying amount of debentures as of March 31, 2014 and December 31, 2013, are as follows:
(In millions of Korean won)
198,837
198,566
Total
1,127,450
1,326,287
1,112,502
1,311,068
32
Issue Date
2011.11.17
2011.11.17
Due Date
2014.11.17
2016.11.17
(500,000)
(1,163)
198,837
(500,000)
(1,434)
198,566
All the above debentures have been issued by Samsung Display and will be repaid upon maturity.
(B) Details of foreign currency denominated debentures as of March 31, 2014 and December 31, 2013, are
as follows:
Issue Date
Due Date
1997.10.02
2027.10.01
7.7
2012.04.10
2017.04.10
1.8
74,816
(US$70 million)
1,068,800
(US$1,000 million)
73,871
(US$70 million)
1,055,300
(US$ 1,000 million)
(5,344)
(10,822)
1,127,450
(5,277)
(11,392)
1,112,502
US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the date of issuance.
Interest is paid semi-annually.
2
US dollar denominated unsecured bonds are issued by Samsung Electronics America, a subsidiary of the Company, and are
repaid in full upon maturity. Interest is paid semi-annually.
6,018,914
56,168
6,075,082
(3,869,615)
Total
2,205,467
33
5,672,147
55,931
5,728,078
(3,873,176)
1,854,902
2014
2013
238,270
25,386
128,747
(2,259)
208,658
24,443
631
Total
390,144
233,732
(C) The pension expenses related to defined benefit plans recognized on the consolidated statements of income
for the three months ended March 31, 2014 and 2013, are as follows:
(In millions of Korean won)
2014
2013
Cost of sales
Selling and administrative expenses
165,180
224,964
92,116
141,616
Total
390,144
233,732
12. Provisions
Changes in the provisions during the three months ended March 31, 2014, are as follows:
Warranty (A)
Royalty
expenses (B)
1,945,992
4,272,670
617,771
(600,101)
17,273
113,063
(754,273)
93,285
1,980,935
3,724,745
Long-term
incentives (C)
921,848
Bonus (D)
65,869
987,717
Other
930,023
930,023
Total
56,890
7,197,400
(5)
485
1,726,721
(1,354,374)
111,043
57,370
7,680,790
(A) The Company accrues warranty reserves for estimated costs of future service, repairs and recalls, based on
historical experience and terms of warranty programs.
(B) The Company makes provisions for the estimated royalty expenses under negotiation with counterparties.
The timing of payment depends on the settlement of the negotiation.
(C) The Company has a long-term incentive plan for its executives based on a three-year management
performance criteria and has made a provision for the estimated incentive cost for the accrued period.
(D) The Company provides bonuses for its executives and employees, which are determined based on currentperiod performance. The estimated bonus cost for the accrued period has been recognized as a provision.
34
124,032
151,985
Represent the maximum amount of debt guarantee, which was provided for employees who took debt from financial institutions
in order to finance employee housing rental.
In addition to the guarantees described above, the Company provides guarantees for borrowings by Intellectual
Keystone Technology (IKT), the Companys associate, to Citibank in the amount of 32,064 million (USD 30
million).
As of March 31, 2014, the Companys investments in Pusan Newport are pledged as collateral against the investee's
debt.
(B) Litigation
(1) Based on the agreement entered on August 24, 1999 with respect to Samsung Motor Inc.s (SMI)
bankruptcy proceedings, SMIs creditors (the Creditors) filed a civil action against Mr. Kun Hee Lee,
chairman of the Company, and 28 Samsung Group affiliates 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 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 Insurances (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).
Most of the claims with regards to the lawsuit have been withdrawn. On January 11, 2011, the Seoul
High Court ordered Samsung Group affiliates to pay to the Creditors 600 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. Samsung
Group affiliates and the Creditors appealed the Seoul High Courts ruling to the Korean Supreme Court,
and the appeal is currently in progress.
(2) The litigation with Apple Inc. in multiple regions including the U.S.A. is ongoing as of the reporting
date. Regarding the ongoing lawsuit in the U.S.A, on August 24, 2012, the jury determined that the
Company partially infringed Apples 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. On March 6, 2014, the Judge denied Apple's bid for a permanent
injunction against the Company and made a final judgment restating the total damages amount
determined by a jury verdict on November 21, 2013. The Company appealed the decision on the
damages amount on March 7, 2014, and the appeal is currently in progress. The final conclusion and the
effect of the patent lawsuits with Apple are uncertain as of the reporting date.
35
Appropriated
Unappropriated
Total
119,947,786
34,055,573
154,003,359
104,175,235
44,425,047
148,600,282
Stock options
Unrealized gains on available-for-sale financial assets
(7,313,757)
(7,323,432)
5,547
2,114,110
10,243
2,189,013
715,852
(3,478,839)
741,893
(3,610,654)
(1,309,671)
(156,755)
(1,302,588)
(163,548)
Total
36
(9,423,513)
(9,459,073)
Preferred Stock
2,979,693 shares
621,843
Common Stock
16,360,561 shares
6,691,914
Preferred Stock
2,979,693 shares
621,843
Common Stock
16,384,216 shares
6,701,589
2014
21,756,476
4,485,185
402,604
4,004,084
252,337
821,212
2,550,416
10,914,213
45,186,527
2013
21,055,248
3,858,247
243,706
3,775,468
231,598
743,378
2,750,670
11,430,322
44,088,637
Expenses above are equal to the sum of cost of sales and selling and administrative expenses on the consolidated statements of
income.
37
2013
1,338,623
87,310
2,550,416
164,075
98,681
677,862
1,587,983
839,661
861,689
1,239,868
1,319,748
58,120
2,750,670
129,402
101,194
885,882
1,467,429
875,656
710,519
1,085,576
3,877,538
Capitalized expenses
3,414,187
(186,694)
Total
13,137,012
(89,101)
12,709,282
2014
Dividend income
Rental income
Gain on disposal of investments
Gain on disposal of property, plant and equipment
Other
Total
2013
1,307,086
24,857
74,095
43,367
462,191
1,911,596
24,633
24,484
9,361
27,179
130,509
216,166
Details of other non-operating expense for the three months ended March 31, 2014 and 2013, are as follows:
(In millions of Korean won)
2014
Total
38
2013
53,309
50,251
723,869
122,542
949,971
77,423
30,154
207,738
315,315
2014
Finance income
Interest income:
Interest income from loans and receivables
Interest income from available-for-sale financial assets
Foreign exchange differences
Gain on valuation of derivatives
Gain on derivatives transactions
Total
2014
Finance costs
Interest expense:
Interest expense from financial liabilities measured at
amortized cost
Other financial liabilities
Foreign exchange differences
Loss on valuation of derivatives
Loss on derivatives transactions
Total
2013
417,663
408,716
8,947
876,521
49,911
106,196
1,450,291
282,998
281,618
1,380
1,515,145
37,329
92,149
1,927,621
2013
142,555
99,404
43,151
981,220
66,289
91,817
1,281,881
123,865
79,360
44,505
1,412,018
67,669
136,877
1,740,429
(B) The Company recognizes foreign exchange gains and losses arising from foreign currency transactions and
translation as finance income and costs.
21. Income Tax Expense
Income tax expense is recognized based on managements best estimate of the average annual income tax rate
expected for the full financial year. The average annual tax rate expected as of March 31, 2014 to be effective for the
year ended December 31, 2014 is 21.5% (March 31, 2013: 20.9%).
2014
39
2013
7,484,680
6,499,012
130,923
49,640
6,976,918
6,057,706
130,861
46,291
2014
2013
7,484,680
985,668
19,854
49,646
6,976,918
919,212
19,854
46,299
2014
Net income available for common stock and common stock equivalents
Weighted-average number of shares of common stock and common stock
equivalents (in thousands)
6,499,115
6,058,056
130,939
49,635
130,918
46,274
2013
2014
Net income available for preferred stock and preferred stock equivalents
Weighted-average number of shares of preferred stock and preferred
stock equivalents (in thousands)
985,565
918,862
19,854
49,641
19,854
46,282
40
2013
Adjustments
2014
Adjustments for:
Income tax expense
Finance income
Finance costs
Pension
Depreciation
Amortization
Bad debt expense
Gain on valuation of equity method
Gain on disposal of property, plant and equipment
Loss on disposal of property, plant and equipment
Obsolescence and scrapping of inventories
Loss on disposal of assets classified as held for sale
Dividend income
Other income/expenses
Adjustments, total
2,074,529
(1,053,766)
624,053
402,604
4,004,084
252,337
128,305
(30,136)
(43,367)
53,309
116,600
723,869
(1,307,086)
(328,120)
5,617,215
2013
1,890,496
(1,020,484)
674,230
243,706
3,775,468
231,598
73,772
(177,936)
(27,179)
77,423
180,715
(24,633)
(11,910)
5,885,266
2014
340,983
301,594
(79,398)
(2,772,299)
(514,024)
1,693,791
2,653,370
(64,813)
(6,963)
(2,773,699)
358,752
(98,833)
226,120
(735,419)
41
2013
813,032
576,757
(62,072)
(221,744)
(1,520,143)
564,755
(755,464)
75,115
377,374
(1,064,266)
1,880,397
(67,070)
(455,954)
140,717
42
43
Total liabilities
Total equity
69,730,872
64,059,008
155,561,724
150,016,010
44.8%
42.7%
Derivatives
Available-for-sale financial assets1
Level 1
Total assets
5,346,482
59,206
1,328,186
Level 3
Total balance
3,128,764
59,206
9,803,432
5,346,482
1,387,392
3,128,764
9,862,638
274,645
274,645
Derivatives
Total liabilities
Level 2
274,645
274,645
Derivatives
Available-for-sale financial assets1
Level 1
Level 2
Level 3
Total assets
5,656,806
493,378
40,552
7,338,682
5,656,806
1,229,050
493,378
7,379,234
244,172
244,172
Derivatives
Total liabilities
40,552
1,188,498
Total balance
244,172
244,172
Amount measured at cost (March 31, 2014: 402,410 million, December 31, 2013: 388,225 million) is excluded as the range
of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed.
44
Fair
Value
Valuation
Technique
Level 3 Inputs
Input Range
(Weighted Average)
2,645,064
Trinomial model
45
Favorable Changes
Unfavorable Changes
194,203
(186,824)
Changes in fair value are calculated by increasing or decreasing the correlation between volatility (32.50 ~ 38.50%) and discount
rate, which are significant unobservable inputs.
46
DS
CE
27,840,111
(16,523,869)
11,316,242
150,591
23,966
191,669
IM
67,859,260
(35,417,246)
32,442,014
172,679
44,357
6,428,670
Semi
conductor
Total1
30,677,773
(15,121,314)
15,556,459
3,534,077
109,227
1,870,758
17,136,048
(7,741,936)
9,394,112
2,410,150
77,365
1,949,175
DP
12,435,270
(6,338,518)
6,096,752
1,071,706
28,047
(83,574)
Total1
126,704,001
(73,028,675)
53,675,326
4,004,084
252,337
8,488,799
Intercompany
elimination
within the
group
(73,028,675)
73,028,675
-
Consolidated
53,675,326
53,675,326
4,004,084
252,337
8,488,799
DS
CE
26,707,489
(15,464,901)
11,242,588
159,279
22,057
234,199
IM
68,899,309
(36,079,396)
32,819,913
144,433
46,485
6,506,958
Semi
conductor
Total1
30,585,252
(14,774,893)
15,810,359
3,361,077
94,929
1,845,199
47
15,785,663
(7,209,221)
8,576,442
2,296,320
67,985
1,071,899
DP
14,785,042
(7,677,173)
7,107,869
1,021,386
23,280
766,937
Total1
125,649,363
(72,781,268)
52,868,095
3,775,468
231,598
8,779,458
Intercompany
elimination
within the
group
(72,781,268)
72,781,268
-
Consolidated
52,868,095
52,868,095
3,775,468
231,598
8,779,458
Korea
44,375,721
(38,585,637)
5,790,084
61,002,668
America
Europe
Asia and
Africa
20,591,784
(5,154,164)
15,437,620
7,113,758
18,156,292
(6,359,126)
11,797,166
1,031,704
18,639,467
(7,807,137)
10,832,330
3,190,242
China
Intercompany
elimination
within the
group
24,940,737
(15,122,611)
9,818,126
9,009,707
Consolidated
(73,028,675)
73,028,675
(708,806)
53,675,326
53,675,326
80,639,273
Total of non-current assets other than financial instruments, deferred tax assets, and investments in associates and joint ventures.
2013
Korea
44,926,297
(37,836,439)
7,089,858
59,728,712
America
Europe
Asia and
Africa
18,320,489
(4,938,089)
13,382,400
7,680,474
19,713,827
(6,636,489)
13,077,338
1,048,228
17,166,245
(7,101,536)
10,064,709
2,004,027
China
25,522,505
(16,268,715)
9,253,790
2,840,450
Intercompany
elimination
within the
group
Consolidated
(72,781,268)
72,781,268
(459,281)
Total of non-current assets other than financial instruments, deferred tax assets, and investments in associates and joint ventures.
48
52,868,095
52,868,095
72,842,610
Associates
Joint ventures
Name of Company1
Purchases
Purchase of
fixed assets
Samsung SDS
Samsung Electro-Mechanics
Samsung SDI
Samsung Techwin
Other
10,747
9,020
16,023
4,479
123,981
1
-
492,476
620,036
203,683
7,755
1,571,783
83,139
25,272
142,923
Total (associates)
164,250
2,895,733
251,334
575
67,826
39,621
35,181
164
891
Disposal of
fixed assets
Sales
1,055
Samsung Everland
Other
575
1,734
33,018
34,752
142,628
24,708
92,299
117,007
76,283
51,193
127,476
Transactions with separate entities that are related parties of the Company.
2 During the three months ended March 31, 2014, the Company sold all of its investment in Samsung Corning Precision Materials.
(2) 2013
Associates
Joint ventures
Name of Company1
Sales
Purchase of
fixed assets
6,245
7,375
20,800
1,559
3,963
104,948
706
-
382,644
615,029
160,110
51,550
15,768
1,245,760
89,182
5
10,947
27,258
Total (associates)
144,890
706
2,470,861
127,392
490,099
52,037
13,286
1,585
283
Samsung Everland
Other
1,868
2,541
399
Purchases
Samsung SDS
Samsung Electro-Mechanics
Samsung SDI
Samsung SNS
Samsung Techwin
Other
Disposal of
fixed assets
Transactions with separate entities that are related parties of the Company.
49
2,940
555,422
117,096
9
117,105
48,305
-
48,305
Receivables
Samsung SDS
Associates
314,861
Samsung SDI
6,580
82,754
Samsung Techwin
3,018
32,057
112,176
700,164
472,873
5,667
Total (associates)
Samsung Electro-Mechanics
Other
Joint ventures
Payables
12,153
139,594
1,602,709
17,437
11,146
533
32,721
17,970
43,867
185,557
178,743
23,926
33,484
209,483
212,227
Balances due from and to separate entities that are related parties of the Company.
Receivables
Samsung SDS
Payables
11,319
479,417
Samsung Electro-Mechanics
5,972
168,494
Samsung SDI
4,863
39,207
Samsung Techwin
1,879
44,286
65,714
477,446
Associates
Other
Total (associates)
Samsung Corning Precision Materials
89,747
1,208,850
3,514
266,400
1,454
Other
25
Joint ventures
Other
Balances due from and to separate entities that are related parties of the Company.
50
3,517
267,879
188,982
282,777
24,494
25,402
213,476
308,179
2014
2013
13,172
243
1,784
2,304
139
1,851
51