SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K/A
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2015
Commission File Number: 1-13368
POSCO
(Translation of registrants name into English)
POSCO Center, 892 Daechi 4-dong, Kangnam-gu, Seoul, Korea, 135-777
(Address of principal executive office)
(Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form20-F x Form 40-F ¨
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No
x
[If Yes is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b) : 82- .]
POSCO is furnishing under cover of Form 6-K:
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Exhibit 99.1: |
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An English-language translation of documents with respect to Notice of Ordinary General Meeting of Shareholders |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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POSCO |
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(Registrant) |
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Date: February 18, 2015 |
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By |
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/s/ Noh, Min-Yong |
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(Signature)* |
* Print the name and title under the signature of the signing officer. |
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Name: Noh, Min-Yong Title: Senior Vice
President |
Exhibit 99.1
To Shareholders
Notice of the 47th Ordinary General Meeting of Shareholders
We hereby notify you that the 47th Ordinary General Meeting of Shareholders will be held
as follows in accordance with the Article 20 of the Articles of Incorporation (AOI).
1. Date: March 13, 2015, 9:00 am
2. Place: POSCO Center, Teheran-ro 440, Gangnam-gu, Seoul, 135-777, Korea
3. Agenda
Agenda 1: Approval of the 47th FY Financial Statements
[Description of the Proposal]
Pursuant to Article 449 of the Korean Commercial Act and Article 53 of the Companys Articles of Incorporation, we request that the Ordinary General
Meeting of Shareholders approve the 47th Fiscal Year Financial Statements.
The Audit report from external auditor of 47th FY
Financial Statements, based on K-IFRS standards, will be uploaded at POSCO website (http://www.posco.com) on March 4th, 2015.
POSCO
and Subsidiaries
Consolidated Financial Statements
December 31, 2014 and 2013
(With
Independent Auditors Report Thereon)
Table of Contents
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Page |
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Consolidated Financial Statements |
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Consolidated Statements of Financial Position |
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3 |
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Consolidated Statements of Comprehensive Income |
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5 |
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Consolidated Statements of Changes in Equity |
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6 |
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Consolidated Statements of Cash Flows |
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8 |
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Notes to the Consolidated Financial Statements |
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10 |
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POSCO and Subsidiaries
Consolidated Statements of Financial Position
As of
December 31, 2014 and 2013
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(in millions of Won) |
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Notes |
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December 31, 2014 |
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December 31, 2013 |
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Assets |
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Cash and cash equivalents |
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4,5,23 |
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₩ |
3,811,202 |
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4,208,562 |
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Trade accounts and notes receivable, net |
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6,17,23,28,29,38 |
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11,786,055 |
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11,492,601 |
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Other receivables, net |
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7,23 |
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1,956,216 |
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1,890,423 |
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Other short-term financial assets |
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8,23,38 |
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1,462,920 |
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2,970,665 |
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Inventories |
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9 |
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10,471,330 |
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9,798,381 |
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Current income tax assets |
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36 |
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36,147 |
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32,417 |
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Assets held for sale |
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10 |
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2,127,087 |
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2,494 |
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Other current assets |
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16 |
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976,425 |
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1,270,668 |
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Total current assets |
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32,627,382 |
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31,666,211 |
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Long-term trade accounts and notes receivable, net |
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6,23 |
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79,336 |
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97,000 |
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Other receivables, net |
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7,23 |
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1,144,160 |
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797,455 |
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Other long-term financial assets |
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8,23 |
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2,455,900 |
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4,465,730 |
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Investments in associates and joint ventures |
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11 |
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4,060,507 |
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3,808,693 |
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Investment property, net |
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13 |
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1,055,592 |
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425,229 |
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Property, plant and equipment, net |
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14 |
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35,241,195 |
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35,760,119 |
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Intangible assets, net |
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15,42 |
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6,884,989 |
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5,929,840 |
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Deferred tax assets |
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36 |
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1,195,563 |
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1,139,932 |
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Other long-term assets |
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16 |
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507,549 |
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365,198 |
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Total non-current assets |
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52,624,791 |
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52,789,196 |
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Total assets |
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₩ |
85,252,173 |
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84,455,407 |
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See accompanying notes to the
consolidated financial statements.
3
POSCO and Subsidiaries
Consolidated Statements of Financial Position, Continued
As of December 31, 2014 and 2013
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(in millions of Won) |
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Notes |
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December 31, 2014 |
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December 31, 2013 |
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Liabilities |
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Trade accounts and notes payable |
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23,38 |
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₩ |
3,950,786 |
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4,231,322 |
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Short-term borrowings and current portion of long-term borrowings |
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4,17,23 |
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12,195,484 |
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10,713,646 |
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Other payables |
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18,23 |
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2,194,713 |
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2,128,854 |
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Other short-term financial liabilities |
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19,23,38 |
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111,637 |
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135,904 |
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Current income tax liabilities |
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36 |
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453,613 |
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358,930 |
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Liabilities directly related to assets held for sale |
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10 |
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590,982 |
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Provisions |
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20 |
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150,030 |
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107,329 |
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Other current liabilities |
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22,29 |
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2,229,764 |
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2,565,174 |
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Total current liabilities |
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21,877,009 |
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20,241,159 |
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Long-term trade accounts and notes payable |
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23,28 |
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88,469 |
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559 |
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Long-term borrowings, excluding current portion |
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4,17,23 |
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15,232,773 |
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15,532,959 |
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Other payables |
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18,23 |
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169,986 |
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206,634 |
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Other long-term financial liabilities |
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19,23 |
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91,095 |
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260,021 |
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Defined benefit liabilities, net |
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21 |
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290,325 |
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273,160 |
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Deferred tax liabilities |
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36 |
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1,832,260 |
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1,711,762 |
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Long-term provisions |
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20 |
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223,239 |
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146,272 |
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Other long-term liabilities |
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22 |
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155,653 |
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260,851 |
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Total non-current liabilities |
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18,083,800 |
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18,392,218 |
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Total liabilities |
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39,960,809 |
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38,633,377 |
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Equity |
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Share capital |
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24 |
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482,403 |
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482,403 |
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Capital surplus |
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24 |
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1,083,718 |
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1,078,266 |
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Hybrid bonds |
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25 |
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996,919 |
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996,919 |
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Reserves |
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26 |
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(408,773 |
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(23,076 |
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Treasury shares |
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27 |
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(1,534,457 |
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(1,579,124 |
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Retained earnings |
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40,967,558 |
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41,090,649 |
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Equity attributable to owners of the controlling company |
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41,587,368 |
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42,046,037 |
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Non-controlling interests |
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25 |
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3,703,996 |
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3,775,993 |
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Total equity |
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45,291,364 |
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45,822,030 |
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Total liabilities and equity |
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₩ |
85,252,173 |
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84,455,407 |
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See accompanying notes to the consolidated financial statements.
4
POSCO and Subsidiaries
Consolidated Statements of Comprehensive Income
For
the years ended December 31, 2014 and 2013
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(in millions of Won, except per share information) |
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Notes |
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2014 |
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2013 |
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Revenue |
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28,29,38 |
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₩ |
65,098,445 |
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61,864,650 |
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Cost of sales |
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29,31,35,38 |
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(57,815,041 |
) |
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(55,004,591 |
) |
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Gross profit |
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7,283,404 |
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6,860,059 |
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Selling and administrative expenses |
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30,35 |
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Administrative expenses |
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31 |
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(2,309,756 |
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(2,231,805 |
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Selling expenses |
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(1,760,118 |
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(1,632,120 |
) |
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Operating profit |
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32 |
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3,213,530 |
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2,996,134 |
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Share of loss of equity-accounted investees, net |
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11 |
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(299,893 |
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(179,809 |
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Finance income and costs |
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23,33 |
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Finance income |
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2,396,762 |
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2,380,838 |
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Finance costs |
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(3,221,987 |
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(2,829,253 |
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Other non-operating income and expenses |
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32,34,38 |
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Other non-operating income |
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269,406 |
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229,073 |
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Other non-operating expenses |
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35 |
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(979,674 |
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(650,806 |
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Profit before income tax |
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1,378,144 |
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1,946,177 |
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Income tax expense |
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36 |
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(821,485 |
) |
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(590,997 |
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Profit |
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556,659 |
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1,355,180 |
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Other comprehensive income (loss) |
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Items that will never be reclassified subsequently to profit or loss : |
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Remeasurements of defined benefit pension plans |
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21 |
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(75,101 |
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6,224 |
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Items that are or may be reclassified subsequently to profit or loss : |
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Capital adjustment arising from investments in equity-method investees |
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(45,754 |
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(183,836 |
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Net changes in the unrealized fair value of available-for-sale investments |
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23 |
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(333,891 |
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412,346 |
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Foreign currency translation differences |
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(836 |
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(220,464 |
) |
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Other comprehensive income (loss), net of tax |
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(455,582 |
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14,270 |
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Total comprehensive income |
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₩ |
101,077 |
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1,369,450 |
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Profit (loss) attributable to : |
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Owners of the controlling company |
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₩ |
626,099 |
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1,376,396 |
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Non-controlling interests |
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(69,440 |
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(21,216 |
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Profit |
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₩ |
556,659 |
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1,355,180 |
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Total comprehensive income (loss) attributable to : |
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Owners of the controlling company |
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₩ |
174,918 |
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1,444,262 |
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Non-controlling interests |
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(73,841 |
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(74,812 |
) |
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Total comprehensive income |
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₩ |
101,077 |
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1,369,450 |
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Basic and diluted earnings per share (in Won) |
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37 |
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7,432 |
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17,409 |
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See accompanying notes to the consolidated financial statements.
5
POSCO and Subsidiaries
Consolidated Statements of Changes in Equity
For the
years ended December 31, 2014 and 2013
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Attributable to owners of the controlling company |
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Non- |
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(in millions of Won) |
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Share capital |
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Capital surplus |
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Hybrid bonds |
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Reserves |
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Treasury shares |
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Retained earnings |
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Sub total |
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controlling interests |
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Total |
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Balance as of January 1, 2013 |
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₩ |
482,403 |
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1,104,814 |
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(88,150 |
) |
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(2,391,406 |
) |
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40,346,481 |
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39,454,142 |
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2,975,276 |
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42,429,418 |
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Comprehensive income: |
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Profit |
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|
1,376,396 |
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|
1,376,396 |
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(21,216 |
) |
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|
1,355,180 |
|
Other comprehensive income |
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Net changes in accumulated comprehensive income of investments in associates, net of tax |
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|
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|
|
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|
(166,787 |
) |
|
|
|
|
|
|
|
|
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|
(166,787 |
) |
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|
(17,049 |
) |
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|
(183,836 |
) |
Net changes in the unrealized fair value of available-for-sale investments, net of tax |
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|
412,453 |
|
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|
|
|
|
|
|
|
412,453 |
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|
(107 |
) |
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|
412,346 |
|
Foreign currency translation differences, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(180,839 |
) |
|
|
|
|
|
|
|
|
|
|
(180,839 |
) |
|
|
(39,625 |
) |
|
|
(220,464 |
) |
Remeasurements of defined benefit pension plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
3,039 |
|
|
|
3,039 |
|
|
|
3,185 |
|
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|
6,224 |
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Total comprehensive income |
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|
|
|
|
|
|
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|
|
64,827 |
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|
|
|
|
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|
1,379,435 |
|
|
|
1,444,262 |
|
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|
(74,812 |
) |
|
|
1,369,450 |
|
|
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|
|
|
|
|
|
|
|
|
Transactions with owners of the controlling company, Recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(463,467 |
) |
|
|
(463,467 |
) |
|
|
(30,544 |
) |
|
|
(494,011 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(154,490 |
) |
|
|
(154,490 |
) |
|
|
|
|
|
|
(154,490 |
) |
Changes in subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,506 |
|
|
|
40,506 |
|
Changes in ownership interests in subsidiaries |
|
|
|
|
|
|
(31,417 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31,417 |
) |
|
|
373,963 |
|
|
|
342,546 |
|
Issue of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
996,919 |
|
|
|
498,468 |
|
|
|
1,495,387 |
|
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,161 |
) |
|
|
(24,161 |
) |
|
|
(6,228 |
) |
|
|
(30,389 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
5,348 |
|
|
|
|
|
|
|
|
|
|
|
812,282 |
|
|
|
|
|
|
|
817,630 |
|
|
|
|
|
|
|
817,630 |
|
Others |
|
|
|
|
|
|
(479 |
) |
|
|
|
|
|
|
247 |
|
|
|
|
|
|
|
6,851 |
|
|
|
6,619 |
|
|
|
(636 |
) |
|
|
5,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners of the controlling company |
|
|
|
|
|
|
(26,548 |
) |
|
|
996,919 |
|
|
|
247 |
|
|
|
812,282 |
|
|
|
(635,267 |
) |
|
|
1,147,633 |
|
|
|
875,529 |
|
|
|
2,023,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013 |
|
₩ |
482,403 |
|
|
|
1,078,266 |
|
|
|
996,919 |
|
|
|
(23,076 |
) |
|
|
(1,579,124 |
) |
|
|
41,090,649 |
|
|
|
42,046,037 |
|
|
|
3,775,993 |
|
|
|
45,822,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the
consolidated financial statements.
6
POSCO and Subsidiaries
Consolidated Statements of Changes in Equity, Continued
For years ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to owners of the controlling company |
|
|
Non- |
|
|
|
|
(in millions of Won) |
|
Share capital |
|
|
Capital surplus |
|
|
Hybrid bonds |
|
|
Reserves |
|
|
Treasury shares |
|
|
Retained earnings |
|
|
Sub total |
|
|
controlling interests |
|
|
Total |
|
Balance as of January 1, 2014 |
|
₩ |
482,403 |
|
|
|
1,078,266 |
|
|
|
996,919 |
|
|
|
(23,076 |
) |
|
|
(1,579,124 |
) |
|
|
41,090,649 |
|
|
|
42,046,037 |
|
|
|
3,775,993 |
|
|
|
45,822,030 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
626,099 |
|
|
|
626,099 |
|
|
|
(69,440 |
) |
|
|
556,659 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes in accumulated comprehensive income of investments in associates, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(50,920 |
) |
|
|
|
|
|
|
|
|
|
|
(50,920 |
) |
|
|
5,166 |
|
|
|
(45,754 |
) |
Net changes in the unrealized fair value of available-for-sale investments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(335,626 |
) |
|
|
|
|
|
|
|
|
|
|
(335,626 |
) |
|
|
1,735 |
|
|
|
(333,891 |
) |
Foreign currency translation differences, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
517 |
|
|
|
|
|
|
|
|
|
|
|
517 |
|
|
|
(1,353 |
) |
|
|
(836 |
) |
Remeasurements of defined benefit pension plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(65,152 |
) |
|
|
(65,152 |
) |
|
|
(9,949 |
) |
|
|
(75,101 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(386,029 |
) |
|
|
|
|
|
|
560,947 |
|
|
|
174,918 |
|
|
|
(73,841 |
) |
|
|
101,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners of the controlling company, Recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
|
|
(32,887 |
) |
|
|
(511,589 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(159,568 |
) |
|
|
(159,568 |
) |
|
|
(76,854 |
) |
|
|
(236,422 |
) |
Changes in subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,551 |
|
|
|
91,551 |
|
Changes in ownership interests in subsidiaries |
|
|
|
|
|
|
(9,401 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,401 |
) |
|
|
44,265 |
|
|
|
34,864 |
|
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,600 |
) |
|
|
(43,600 |
) |
|
|
(26,175 |
) |
|
|
(69,775 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
14,576 |
|
|
|
|
|
|
|
|
|
|
|
44,667 |
|
|
|
|
|
|
|
59,243 |
|
|
|
|
|
|
|
59,243 |
|
Others |
|
|
|
|
|
|
277 |
|
|
|
|
|
|
|
332 |
|
|
|
|
|
|
|
(2,168 |
) |
|
|
(1,559 |
) |
|
|
1,944 |
|
|
|
385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners of the controlling company |
|
|
|
|
|
|
5,452 |
|
|
|
|
|
|
|
332 |
|
|
|
44,667 |
|
|
|
(684,038 |
) |
|
|
(633,587 |
) |
|
|
1,844 |
|
|
|
(631,743 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2014 |
|
₩ |
482,403 |
|
|
|
1,083,718 |
|
|
|
996,919 |
|
|
|
(408,773 |
) |
|
|
(1,534,457 |
) |
|
|
40,967,558 |
|
|
|
41,587,368 |
|
|
|
3,703,996 |
|
|
|
45,291,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
7
POSCO and Subsidiaries
Consolidated Statements of Cash Flows
For the years
ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
2014 |
|
|
2013 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
₩ |
556,659 |
|
|
|
1,355,180 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
2,894,609 |
|
|
|
2,505,536 |
|
Amortization |
|
|
|
|
343,940 |
|
|
|
180,014 |
|
Finance income |
|
|
|
|
(1,046,718 |
) |
|
|
(1,012,281 |
) |
Finance costs |
|
|
|
|
1,801,015 |
|
|
|
1,585,778 |
|
Income tax expense |
|
|
|
|
821,485 |
|
|
|
590,997 |
|
Gain on disposal of property, plant and equipment |
|
|
|
|
(15,039 |
) |
|
|
(14,177 |
) |
Loss on disposal of property, plant and equipment |
|
|
|
|
50,006 |
|
|
|
121,133 |
|
Impairment loss of property, plant and equipment |
|
|
|
|
64,833 |
|
|
|
9,742 |
|
Share of loss of equity-accounted investees |
|
|
|
|
299,893 |
|
|
|
179,809 |
|
Costs for defined benefit plans |
|
|
|
|
237,886 |
|
|
|
247,748 |
|
Warranty expense |
|
|
|
|
245,470 |
|
|
|
111,364 |
|
Bad debt expenses |
|
|
|
|
205,306 |
|
|
|
201,185 |
|
Loss on valuation of inventories |
|
|
|
|
41,713 |
|
|
|
49,172 |
|
Impairment loss of goodwill and intangible assets |
|
|
|
|
55,220 |
|
|
|
125,316 |
|
Gain on disposals of assets held for sale |
|
|
|
|
(48,231 |
) |
|
|
(101,611 |
) |
Impairment loss of assets held for sale |
|
|
|
|
17,205 |
|
|
|
1,814 |
|
Others, net |
|
|
|
|
126,815 |
|
|
|
31,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,095,408 |
|
|
|
4,812,618 |
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
40 |
|
|
(1,913,972 |
) |
|
|
(116,432 |
) |
Interest received |
|
|
|
|
238,817 |
|
|
|
227,989 |
|
Interest paid |
|
|
|
|
(882,183 |
) |
|
|
(797,316 |
) |
Dividends received |
|
|
|
|
114,694 |
|
|
|
193,008 |
|
Income taxes paid |
|
|
|
|
(797,324 |
) |
|
|
(816,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
₩ |
3,412,099 |
|
|
|
4,858,135 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the
consolidated financial statements.
8
POSCO and Subsidiaries
Consolidated Statements of Cash Flows, Continued
For
the years ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
2014 |
|
|
2013 |
|
Cash flows from investing activities |
|
41 |
|
|
|
|
|
|
|
|
Acquisitions of short-term financial instruments |
|
|
|
₩ |
(3,096,602 |
) |
|
|
(4,449,312 |
) |
Proceeds from disposal of short-term financial instruments |
|
|
|
|
4,635,120 |
|
|
|
3,901,527 |
|
Increase in loans |
|
|
|
|
(361,671 |
) |
|
|
(575,343 |
) |
Collection of loans |
|
|
|
|
76,717 |
|
|
|
417,971 |
|
Acquisitions of available-for-sale investments |
|
|
|
|
(75,582 |
) |
|
|
(309,469 |
) |
Proceeds from disposal of available-for-sale investments |
|
|
|
|
252,056 |
|
|
|
269,363 |
|
Acquisitions of investments of equity-accounted investees |
|
|
|
|
(702,989 |
) |
|
|
(1,076,763 |
) |
Proceeds from disposal of investments of equity-accounted investees |
|
|
|
|
21,359 |
|
|
|
89,533 |
|
Acquisitions of property, plant and equipment |
|
|
|
|
(3,505,549 |
) |
|
|
(6,569,613 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
|
|
62,829 |
|
|
|
82,153 |
|
Acquisitions of investment property |
|
|
|
|
(406,603 |
) |
|
|
(20,945 |
) |
Proceeds from disposal of investment property |
|
|
|
|
43,167 |
|
|
|
8,464 |
|
Acquisitions of intangible assets |
|
|
|
|
(343,804 |
) |
|
|
(543,666 |
) |
Proceeds from disposal of intangible assets |
|
|
|
|
9,043 |
|
|
|
5,429 |
|
Cash received from (paid in) acquisition of business, net of cash acquired |
|
|
|
|
(388,578 |
) |
|
|
5,729 |
|
Cash received from disposal of business |
|
|
|
|
48,949 |
|
|
|
5,962 |
|
Other, net |
|
|
|
|
(13,044 |
) |
|
|
7,310 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
|
(3,745,182 |
) |
|
|
(8,751,670 |
) |
Cash flows from financing activities |
|
41 |
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
|
|
2,522,495 |
|
|
|
5,098,702 |
|
Repayment of borrowings |
|
|
|
|
(2,802,150 |
) |
|
|
(2,845,957 |
) |
Proceeds from short-term borrowings, net |
|
|
|
|
1,037,912 |
|
|
|
86,475 |
|
Payment of cash dividends |
|
|
|
|
(677,000 |
) |
|
|
(648,580 |
) |
Proceeds from issuance of hybrid bonds |
|
|
|
|
|
|
|
|
1,495,387 |
|
Payment of interest of hybrid bonds |
|
|
|
|
(69,713 |
) |
|
|
(26,088 |
) |
Proceeds from disposal of treasury shares |
|
|
|
|
43,188 |
|
|
|
14,019 |
|
Other, net |
|
|
|
|
80,380 |
|
|
|
358,378 |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
|
|
135,112 |
|
|
|
3,532,336 |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuation on cash held |
|
|
|
|
11,545 |
|
|
|
(110,765 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
|
|
(186,426 |
) |
|
|
(471,964 |
) |
Cash and cash equivalents classified as assets held for sale |
|
10 |
|
|
(210,934 |
) |
|
|
|
|
Cash and cash equivalents at beginning of the period |
|
|
|
|
4,208,562 |
|
|
|
4,680,526 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period |
|
|
|
₩ |
3,811,202 |
|
|
|
4,208,562 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the consolidated financial statements.
9
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013
1. General Information
General information about POSCO, its 47 domestic subsidiaries including POSCO Engineering & Construction Co., Ltd., 181 foreign subsidiaries including
POSCO America Corporation (collectively the Company) and its 97 associates and joint ventures are as follows:
(a) The controlling company
POSCO, the controlling company, was incorporated on April 1, 1968, under the Commercial Code of the Republic of Korea to manufacture and
sell steel rolled products and plates in the domestic and foreign markets.
The shares of POSCO have been listed on the Korea Exchange
since 1988. POSCO owns and operates two steel plants (Pohang and Gwangyang) and one office in Korea and it also operates internationally through seven of its overseas liaison offices.
As of December 31, 2014 and 2013, POSCOs shareholders are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
Shareholders name |
|
Number of shares |
|
|
Ownership(%) |
|
|
Number of shares |
|
|
Ownership(%) |
|
National Pension Service |
|
|
7,203,493 |
|
|
|
8.26 |
|
|
|
6,577,907 |
|
|
|
7.54 |
|
Nippon Steel & Sumitomo Metal Corporation(* 1) |
|
|
4,394,712 |
|
|
|
5.04 |
|
|
|
4,394,712 |
|
|
|
5.04 |
|
Saudi Arabia, Kingdom of Saudi Arabia |
|
|
2,109,593 |
|
|
|
2.42 |
|
|
|
948,477 |
|
|
|
1.09 |
|
Hyundai Heavy Industries Co., Ltd. and subsidiaries(* 2) |
|
|
1,319,560 |
|
|
|
1.51 |
|
|
|
2,197,707 |
|
|
|
2.52 |
|
Pohang University of Science and Technology |
|
|
1,905,000 |
|
|
|
2.18 |
|
|
|
1,905,000 |
|
|
|
2.18 |
|
KB Financial Group Inc. and subsidiaries(* 2) |
|
|
1,847,438 |
|
|
|
2.12 |
|
|
|
1,846,994 |
|
|
|
2.12 |
|
Others |
|
|
68,407,039 |
|
|
|
78.47 |
|
|
|
69,316,038 |
|
|
|
79.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,186,835 |
|
|
|
100.00 |
|
|
|
87,186,835 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Nippon Steel & Sumitomo Metal Corporation owns American Depository Receipts (ADRs) of the Company, each of which represents 0.25 share of POSCOs common share which has par value of ₩5,000 per
share. |
(*2) |
Includes shares held by subsidiaries pursuant to Articles of Incorporation. |
As of December 31, 2014, the
shares of the Company are listed on the Korea Exchange, while its depository shares are listed on the New York, Tokyo and London Stock Exchanges.
10
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) Consolidated subsidiaries
Details of consolidated subsidiaries as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
|
|
|
Principal Operations |
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
Region |
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
Engineering and construction |
|
|
89.53 |
|
|
|
|
|
|
|
89.53 |
|
|
|
89.53 |
|
|
|
|
|
|
|
89.53 |
|
|
Pohang |
POSCO Processing & Service |
|
Steel sales and service |
|
|
96.01 |
|
|
|
|
|
|
|
96.01 |
|
|
|
95.31 |
|
|
|
|
|
|
|
95.31 |
|
|
Seoul |
POSCO COATED & COLOR STEEL Co., Ltd. |
|
Coated steel manufacturing |
|
|
56.87 |
|
|
|
|
|
|
|
56.87 |
|
|
|
56.87 |
|
|
|
|
|
|
|
56.87 |
|
|
Pohang |
POSCO ICT |
|
Computer hardware and software distribution |
|
|
65.38 |
|
|
|
|
|
|
|
65.38 |
|
|
|
65.38 |
|
|
|
|
|
|
|
65.38 |
|
|
Seongnam |
POSCO Research Institute |
|
Economic research and consulting |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Seoul |
POSMATE |
|
Business facility maintenance |
|
|
57.25 |
|
|
|
11.05 |
|
|
|
68.30 |
|
|
|
54.46 |
|
|
|
11.77 |
|
|
|
66.23 |
|
|
Suncheon |
POSCO A&C |
|
Architecture and consulting |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Seoul |
POSCO Specialty Steel Co., Ltd. |
|
Steel manufacturing and sales |
|
|
72.09 |
|
|
|
|
|
|
|
72.09 |
|
|
|
72.09 |
|
|
|
|
|
|
|
72.09 |
|
|
Changwon |
POSCO Venture Capital Co., Ltd. |
|
Investment in venture companies |
|
|
95.00 |
|
|
|
|
|
|
|
95.00 |
|
|
|
95.00 |
|
|
|
|
|
|
|
95.00 |
|
|
Pohang |
eNtoB Corporation |
|
Electronic commerce |
|
|
|
|
|
|
62.39 |
|
|
|
62.39 |
|
|
|
32.19 |
|
|
|
30.20 |
|
|
|
62.39 |
|
|
Seoul |
POSCO CHEMTECH |
|
Manufacturing and sellings of refractories |
|
|
60.00 |
|
|
|
|
|
|
|
60.00 |
|
|
|
60.00 |
|
|
|
|
|
|
|
60.00 |
|
|
Pohang |
POSCO-Terminal Co., Ltd. |
|
Transporting and warehousing |
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
Gwangyang |
POSCO M-TECH(* 1) |
|
Packing materials manufacturing |
|
|
48.85 |
|
|
|
|
|
|
|
48.85 |
|
|
|
48.85 |
|
|
|
|
|
|
|
48.85 |
|
|
Pohang |
POSCO ENERGY CO., LTD. |
|
Generation of electricity |
|
|
89.02 |
|
|
|
|
|
|
|
89.02 |
|
|
|
89.02 |
|
|
|
|
|
|
|
89.02 |
|
|
Seoul |
POSCO TMC Co., Ltd. |
|
Component manufacturing |
|
|
|
|
|
|
74.56 |
|
|
|
74.56 |
|
|
|
34.20 |
|
|
|
40.36 |
|
|
|
74.56 |
|
|
Cheonan |
POSCO NIPPON STEEL RHF JOINT VENTURE. CO., Ltd. |
|
Steel manufacturing and sales |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Pohang |
MegaAsset Co., Ltd. |
|
Real estate rental and sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Cheonan |
POSCO Engineering CO., Ltd |
|
Construction and engineering service |
|
|
|
|
|
|
95.56 |
|
|
|
95.56 |
|
|
|
|
|
|
|
95.56 |
|
|
|
95.56 |
|
|
Seongnam |
POSCO AST |
|
Steel manufacturing and sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Ansan |
POSHIMETAL Co., Ltd. |
|
Steel manufacturing and sales |
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
Gwangyang |
Poscoene |
|
Handling & disposal of waste matter |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Seoul |
POSFINE Co., Ltd. |
|
Non metallic minerals manufacturing |
|
|
69.23 |
|
|
|
|
|
|
|
69.23 |
|
|
|
69.23 |
|
|
|
|
|
|
|
69.23 |
|
|
Gwangyang |
POSCO Humans |
|
Construction |
|
|
90.30 |
|
|
|
|
|
|
|
90.30 |
|
|
|
90.30 |
|
|
|
|
|
|
|
90.30 |
|
|
Pohang |
Mapo Hibroad Parking co., Ltd. |
|
Construction |
|
|
|
|
|
|
71.00 |
|
|
|
71.00 |
|
|
|
|
|
|
|
71.00 |
|
|
|
71.00 |
|
|
Seoul |
Steel Processing and Fabricating Center Co., LTD |
|
Steel manufacturing |
|
|
|
|
|
|
84.89 |
|
|
|
84.89 |
|
|
|
|
|
|
|
70.52 |
|
|
|
70.52 |
|
|
Gwangyang |
Plant Engineering service Technology Co., Ltd. |
|
Engineering service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Pohang |
POSCO PLANTEC Co., Ltd. |
|
Steel work maintenance and machinery installation |
|
|
60.84 |
|
|
|
13.10 |
|
|
|
73.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pohang |
Busan E&E Co,. Ltd. |
|
Handling & disposal of waste matter |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Busan |
POSCO Family Strategy Fund |
|
Financial investment |
|
|
60.79 |
|
|
|
39.21 |
|
|
|
100.00 |
|
|
|
60.79 |
|
|
|
39.21 |
|
|
|
100.00 |
|
|
Pohang |
POREKA Co., Ltd. |
|
Advertising agency |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Seoul |
Daewoo International Corporation |
|
Trading and Energy & Resource development |
|
|
60.31 |
|
|
|
|
|
|
|
60.31 |
|
|
|
60.31 |
|
|
|
|
|
|
|
60.31 |
|
|
Seoul |
POSCO LED Co., Ltd. |
|
LED lightening |
|
|
16.70 |
|
|
|
63.30 |
|
|
|
80.00 |
|
|
|
16.70 |
|
|
|
63.30 |
|
|
|
80.00 |
|
|
Seongnam |
Pohang Scrap Recycling Distribution Center Co., Ltd. |
|
Steel processing and sales |
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
Pohang |
PSC Energy Global Co., Ltd. |
|
Investment in energy industry |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Pohang |
Suncheon Eco Trans Co., Ltd |
|
Train manufacturing & management |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Suncheon |
New Altec Co., Ltd |
|
Aluminum products manufacturing and sales |
|
|
|
|
|
|
60.10 |
|
|
|
60.10 |
|
|
|
|
|
|
|
60.10 |
|
|
|
60.10 |
|
|
Incheon |
PONUTech Co., Ltd. |
|
Nuclear power plant design and repair service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Ulsan |
Tamra Offshore Wind Power Co., Ltd |
|
Cogeneration plant operation |
|
|
|
|
|
|
64.00 |
|
|
|
64.00 |
|
|
|
|
|
|
|
64.00 |
|
|
|
64.00 |
|
|
Jeju |
POS-HiAL |
|
Aluminum products manufacturing and sales |
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
Youngam |
IT Engineering(* 2) |
|
Automotive engineering service |
|
|
|
|
|
|
17.00 |
|
|
|
17.00 |
|
|
|
|
|
|
|
17.00 |
|
|
|
17.00 |
|
|
Seoul |
Future Creation Fund Postech Early Stage account(* 2) |
|
Investment in venture companies |
|
|
|
|
|
|
40.00 |
|
|
|
40.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seoul |
Keystone Private Equity |
|
Investment in New Regeneration Energy |
|
|
|
|
|
|
55.12 |
|
|
|
55.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seoul |
POSCO Green Gas Technology |
|
Gas manufacturing and Plumber |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gwangyang |
POSCO WOMANS FUND(* 2) |
|
Investment in venture companies |
|
|
|
|
|
|
40.00 |
|
|
|
40.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seoul |
Chun Sawind |
|
Other development |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seoul |
POSPOWER CO., Ltd. |
|
Other development |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samchuck |
Songdo Posco family Housing |
|
House manufacturing and management |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incheon |
11
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
|
|
|
Principal Operations |
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
Region |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO America Corporation |
|
Steel trading |
|
|
99.45 |
|
|
|
0.55 |
|
|
|
100.00 |
|
|
|
99.45 |
|
|
|
0.55 |
|
|
|
100.00 |
|
|
USA |
POSCO AUSTRALIA PTY LTD |
|
Iron ore sales & mine development |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Australia |
POSCO Canada Ltd. |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Canada |
POSCAN Elkveiw Coal Ltd. |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Canada |
POSCO Asia Co., Ltd. |
|
Steel and raw material trading |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Hongkong |
POSCO-CTPC Co., Ltd. |
|
Steel manufacturing |
|
|
56.60 |
|
|
|
43.40 |
|
|
|
100.00 |
|
|
|
56.60 |
|
|
|
43.40 |
|
|
|
100.00 |
|
|
China |
POSCO-JKPC Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
89.18 |
|
|
|
89.18 |
|
|
|
|
|
|
|
95.00 |
|
|
|
95.00 |
|
|
Japan |
INTERNATIONAL BUSINESS CENTER CORPORATION |
|
Leasing service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60.00 |
|
|
|
60.00 |
|
|
Vietnam |
POSCO E&C Vietnam Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Vietnam |
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
Stainless steel manufacturing |
|
|
58.60 |
|
|
|
23.88 |
|
|
|
82.48 |
|
|
|
58.60 |
|
|
|
23.88 |
|
|
|
82.48 |
|
|
China |
POSCO (Guangdong) Steel Co., Ltd. |
|
Plating steel sheet manufacturing |
|
|
87.04 |
|
|
|
10.04 |
|
|
|
97.08 |
|
|
|
87.04 |
|
|
|
10.04 |
|
|
|
97.08 |
|
|
China |
POSCO (Thailand) Company Limited |
|
Steel manufacturing |
|
|
85.62 |
|
|
|
14.38 |
|
|
|
100.00 |
|
|
|
85.62 |
|
|
|
14.38 |
|
|
|
100.00 |
|
|
Thailand |
Myanmar POSCO Steel Co., Ltd |
|
Zinc relief manufacturing |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Myanmar |
POSCO-JOPC Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56.84 |
|
|
|
56.84 |
|
|
Japan |
POSCO Investment Co., Ltd. |
|
Financial Service |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Hongkong |
POSCO-MKPC SDN BHD |
|
Steel manufacturing |
|
|
44.69 |
|
|
|
25.31 |
|
|
|
70.00 |
|
|
|
44.69 |
|
|
|
25.31 |
|
|
|
70.00 |
|
|
Malaysia |
Qingdao Pohang Stainless |
|
Stainless steel manufacturing |
|
|
70.00 |
|
|
|
30.00 |
|
|
|
100.00 |
|
|
|
70.00 |
|
|
|
30.00 |
|
|
|
100.00 |
|
|
China |
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
China |
POSCO BIOVENTURES I, L.P. |
|
Bio tech Industry |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
PT. POSNESIA Stainless Steel Industry |
|
Steel manufacturing |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Indonesia |
POSEC Hawaii, Inc. |
|
Real estate Industry |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
POSCO-China Qingdao Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
POS-ORE PTY LTD |
|
Iron ore sales & mine development |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POSCO-China Holding Corp. |
|
Holding company |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
China |
POSCO JAPAN Co., Ltd. |
|
Steel trading |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Japan |
POS-CD PTY LTD |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POS-GC PTY LTD |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POSCO-India Private Limited |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
India |
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
Steel manufacturing |
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
India |
POSCO-JEPC Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
88.02 |
|
|
|
88.02 |
|
|
|
|
|
|
|
88.02 |
|
|
|
88.02 |
|
|
Japan |
POSCO-CFPC Co., Ltd. |
|
Steel manufacturing |
|
|
39.60 |
|
|
|
60.40 |
|
|
|
100.00 |
|
|
|
39.60 |
|
|
|
60.40 |
|
|
|
100.00 |
|
|
China |
POSCO E&C CHINA Co., Ltd. |
|
Construction and civil engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
POSCO MPPC S.A. de C.V. |
|
Steel manufacturing |
|
|
|
|
|
|
95.00 |
|
|
|
95.00 |
|
|
|
|
|
|
|
95.00 |
|
|
|
95.00 |
|
|
Mexico |
Zhangjigang Pohang Port Co., Ltd. |
|
Loading and unloading service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
Qingdao Pos-metal Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
POSCO-VIETNAM Co., Ltd. |
|
Steel manufacturing |
|
|
85.00 |
|
|
|
|
|
|
|
85.00 |
|
|
|
85.00 |
|
|
|
|
|
|
|
85.00 |
|
|
Vietnam |
POSCO MEXICO S.A. DE C.V. |
|
Automotive steel sheet manufacturing |
|
|
84.84 |
|
|
|
15.16 |
|
|
|
100.00 |
|
|
|
84.84 |
|
|
|
15.16 |
|
|
|
100.00 |
|
|
Mexico |
POSCO India Delhi Steel Processing Centre Private Limited |
|
Steel manufacturing |
|
|
66.40 |
|
|
|
10.00 |
|
|
|
76.40 |
|
|
|
66.40 |
|
|
|
10.00 |
|
|
|
76.40 |
|
|
India |
POSCO-Poland Wroclaw Processing Center Sp. z o. o. |
|
Steel manufacturing |
|
|
60.00 |
|
|
|
|
|
|
|
60.00 |
|
|
|
60.00 |
|
|
|
|
|
|
|
60.00 |
|
|
Poland |
POS-NP PTY LTD |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POSCO-Vietnam Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
87.10 |
|
|
|
5.00 |
|
|
|
92.10 |
|
|
|
91.63 |
|
|
|
|
|
|
|
91.63 |
|
|
Vietnam |
POSCO(Chongqing) Automotive Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
China |
SUZHOU POSCO-CORE TECHNOLOGY CO., LTD. |
|
Component manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
POSCO-Malaysia SDN. BHD. |
|
Steel manufacturing |
|
|
81.79 |
|
|
|
13.63 |
|
|
|
95.42 |
|
|
|
80.07 |
|
|
|
13.34 |
|
|
|
93.41 |
|
|
Malaysia |
POS-Minerals Corporation |
|
Mine development & sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
POSCO (Wuhu) Automotive Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
68.57 |
|
|
|
31.43 |
|
|
|
100.00 |
|
|
|
68.57 |
|
|
|
31.43 |
|
|
|
100.00 |
|
|
China |
POSCO Engineering and Construction India Private Limited |
|
Construction and engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
India |
POSCO E&C SMART S DE RL DE CV |
|
Construction and engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Mexico |
POSCO Philippine Manila Processing Center, Inc. |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Philippines |
POSCO Gulf SFC LLC |
|
Steel manufacturing |
|
|
|
|
|
|
81.93 |
|
|
|
81.93 |
|
|
|
|
|
|
|
81.93 |
|
|
|
81.93 |
|
|
UAE |
Dalian POSCO ICT-DONGFANG Engineering Co., Ltd. |
|
Electric control equipment manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
SANPU TRADING Co., Ltd. |
|
Raw material trading |
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
China |
Zhangjiagang BLZ Pohang International Trading |
|
Steel transit trading |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
POSCO MEXICO HUMAN TECH S.A. de C.V. |
|
Service |
|
|
80.00 |
|
|
|
20.00 |
|
|
|
100.00 |
|
|
|
80.00 |
|
|
|
20.00 |
|
|
|
100.00 |
|
|
Mexico |
POSCO MESDC S.A. DE C.V. |
|
Steel product sales |
|
|
|
|
|
|
56.80 |
|
|
|
56.80 |
|
|
|
|
|
|
|
56.80 |
|
|
|
56.80 |
|
|
Mexico |
POSCO ICT-China |
|
IT service and DVR business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
DWEMEX, S.A. DE. C.V. |
|
Construction |
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
Mexico |
POSCO MPC Servicios S.A. de C.V. |
|
Steel manufacturing |
|
|
|
|
|
|
61.00 |
|
|
|
61.00 |
|
|
|
|
|
|
|
61.00 |
|
|
|
61.00 |
|
|
Mexico |
POSCO-Uruguay S.A |
|
Lumber manufacturing & sales |
|
|
98.10 |
|
|
|
|
|
|
|
98.10 |
|
|
|
98.00 |
|
|
|
|
|
|
|
98.00 |
|
|
Uruguay |
Pos-Sea Pte Ltd |
|
Steel transit trading |
|
|
|
|
|
|
67.54 |
|
|
|
67.54 |
|
|
|
|
|
|
|
67.54 |
|
|
|
67.54 |
|
|
Singapore |
POSCO Europe Steel Distribution Center |
|
Steel product sales |
|
|
50.00 |
|
|
|
20.00 |
|
|
|
70.00 |
|
|
|
50.00 |
|
|
|
20.00 |
|
|
|
70.00 |
|
|
Slovenia |
VECTUS LIMITED |
|
PRT test track construction |
|
|
|
|
|
|
99.69 |
|
|
|
99.69 |
|
|
|
|
|
|
|
99.57 |
|
|
|
99.57 |
|
|
England |
Zeus(Cayman) |
|
Service |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Cayman Islands |
POSCO VST CO., LTD. |
|
Stainless steel manufacturing |
|
|
95.65 |
|
|
|
|
|
|
|
95.65 |
|
|
|
95.65 |
|
|
|
|
|
|
|
95.65 |
|
|
Vietnam |
POSCO Maharashtra Steel Private Limited |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
India |
12
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
|
|
|
Principal Operations |
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
Region |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO India Chennai Steel Processing Centre Pvt. Ltd. |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
India |
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S |
|
Steel manufacturing |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Turkey |
POSCO Vietnam Ha Noi Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Vietnam |
POSCO (Liaoning) Automotive Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
China |
POSCO-Indonesia Jakarta Processing Center |
|
Steel manufacturing |
|
|
65.00 |
|
|
|
20.00 |
|
|
|
85.00 |
|
|
|
65.00 |
|
|
|
20.00 |
|
|
|
85.00 |
|
|
Indonesia |
POSCO E & C VENEZUELA C.A. |
|
Construction and engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Venezuela |
Motta Resources Indonesia |
|
Mine development |
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
|
65.00 |
|
|
|
|
|
|
|
65.00 |
|
|
Indonesia |
POSCO TMC INDIA PRIVATE LIMITED |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
India |
POSCO America Alabama Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
PT PEN INDONESIA |
|
Construction |
|
|
|
|
|
|
67.00 |
|
|
|
67.00 |
|
|
|
|
|
|
|
95.00 |
|
|
|
95.00 |
|
|
Indonesia |
POSCO (Yantai) Automotive Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
China |
POSCO India Steel Distribution Center Private Ltd. |
|
Steel logistics |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
India |
POSCO China Dalian Plate Processing Center Co., Ltd. |
|
Steel manufacturing |
|
|
80.00 |
|
|
|
10.00 |
|
|
|
90.00 |
|
|
|
80.00 |
|
|
|
10.00 |
|
|
|
90.00 |
|
|
China |
POSCO-South Asia Company Limited |
|
Steel product sales |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Thailand |
POSCO SS-VINA |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Vietnam |
POSCO-NCR Coal Ltd. |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Canada |
POSCO WA PTY LTD |
|
Iron ore sales & mine development |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Australia |
POSCO Engineering and Construction - UZ |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Uzbekistan |
POSCO AUSTRALIA GP PTY LIMITED |
|
Resource development |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
Daewoo International (America) Corp. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
Daewoo International (Deutschland) GmbH. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Germany |
Daewoo International Japan Corp. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Japan |
DAEWOO INTERNATIONAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINGAPORE PTE. LTD. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Singapore |
Daewoo Italia S.r.l. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Italy |
Daewoo (China) Co., Ltd. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
DAEWOO TEXTILE FERGANA LLC |
|
Textile manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Uzbekistan |
DAEWOO TEXTILE BUKHARA LLC |
|
Textile manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Uzbekistan |
DAEWOO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD |
|
Resource development |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
Daewoo Paper Manufacturing Co., Ltd. |
|
Paper manufacturing |
|
|
|
|
|
|
66.70 |
|
|
|
66.70 |
|
|
|
|
|
|
|
66.70 |
|
|
|
66.70 |
|
|
China |
Tianjin Daewoo Paper Manufacturing Co., Ltd. |
|
Paper manufacturing |
|
|
|
|
|
|
68.30 |
|
|
|
68.30 |
|
|
|
|
|
|
|
68.30 |
|
|
|
68.30 |
|
|
China |
POSCO MAURITIUS LIMITED |
|
Coal development and sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Mauritius |
PT. KRAKATAU POSCO |
|
Steel manufacturing |
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
Indonesia |
Myanmar Daewoo Limited |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Myanmar |
DAEWOO INTERNATIONAL MEXICO S.A. DE C.V. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Mexico |
Daewoo International Guangzhou Corp. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
Daewoo (M) SDN. BHD. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Malaysia |
Daewoo EL SALVADOR S.A. DE C.V. |
|
Trading business |
|
|
|
|
|
|
88.00 |
|
|
|
88.00 |
|
|
|
|
|
|
|
88.00 |
|
|
|
88.00 |
|
|
El Salvador |
POSCO (Zhangjiagang) STS Processing Center Co., Ltd |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
Daewoo International (M) SDN BHD |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Malaysia |
Daewoo International SHANGHAI CO., LTD. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
DAEWOO POWER AND INFRA (PTY) LTD. |
|
Electricity |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Republic of South Africa |
PGSF, L.P. |
|
Investment in Biotech Industry |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
Xenesys Inc. |
|
Power generation equipment manufacturing |
|
|
29.58 |
|
|
|
21.35 |
|
|
|
50.93 |
|
|
|
29.58 |
|
|
|
21.35 |
|
|
|
50.93 |
|
|
Japan |
Daewoo International INDIA Private Ltd. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
India |
TECHREN Solar, LLC |
|
Electrical Industry |
|
|
|
|
|
|
99.92 |
|
|
|
99.92 |
|
|
|
|
|
|
|
99.92 |
|
|
|
99.92 |
|
|
USA |
PT. POSCO E&C INDONESIA |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Indonesia |
HUME COAL PTY LTD |
|
Raw material manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POSCO FOUNDATION |
|
Non-profit charitable organization |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
India |
EPC EQUITIES LLP |
|
Construction |
|
|
|
|
|
|
80.00 |
|
|
|
80.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
England |
SANTOS CMI CONSTRUCTION TRADING LLP |
|
Construction |
|
|
|
|
|
|
99.90 |
|
|
|
99.90 |
|
|
|
|
|
|
|
99.90 |
|
|
|
99.90 |
|
|
England |
SANTOS CMI INC. USA |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
SANTOS CMI ENGENHARIA E CONSTRUCOES LTDA |
|
Construction |
|
|
|
|
|
|
99.98 |
|
|
|
99.98 |
|
|
|
|
|
|
|
99.98 |
|
|
|
99.98 |
|
|
Brazil |
SANTOS CMI PERU S.A. |
|
Construction |
|
|
|
|
|
|
99.99 |
|
|
|
99.99 |
|
|
|
|
|
|
|
99.99 |
|
|
|
99.99 |
|
|
Peru |
SANTOS CMI CONSTRUCCIONES S.A. |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Uruguay |
GENTECH INTERNATIONAL INC. |
|
Construction |
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
Panama |
EPC INVESTMENTS C.V. |
|
Construction |
|
|
|
|
|
|
99.99 |
|
|
|
99.99 |
|
|
|
|
|
|
|
99.99 |
|
|
|
99.99 |
|
|
Netherlands |
SANTOSCMI S.A. |
|
Construction |
|
|
|
|
|
|
80.00 |
|
|
|
80.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
Ecuador |
SANTOSCMI CONSTRUCCIONES DE CHILE S.A. |
|
Construction |
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
Chile |
S&K -SANTOSCMI S.A. DE C.V. |
|
Construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
Mexico |
COMPANIADEAUTOMATIZACION& CONTROL, GENESYS S.A. |
|
Construction |
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
Ecuador |
VAUTIDAMERICAS S.A. |
|
Construction |
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
Ecuador |
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Brazil |
POSCO Electrical Steel India Private Limited |
|
Electrical Steel manufacturing |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
India |
Daewoo International Cameroon S.A. |
|
Resource Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Cameroon |
13
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
|
|
|
Principal Operations |
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
POSCO |
|
|
Subsidiaries |
|
|
Total |
|
|
Region |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ASSAN TST STEEL INDUSTRY |
|
Steel manufacturing |
|
|
60.00 |
|
|
|
10.00 |
|
|
|
70.00 |
|
|
|
60.00 |
|
|
|
10.00 |
|
|
|
70.00 |
|
|
Turkey |
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
Investment |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Hongkong |
POSCO Klappan Coal Ltd. |
|
Coal sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Canada |
DAESAN (CAMBODIA) Co., Ltd. |
|
Investment |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Cambodia |
Brazil Sao Paulo Steel Processing Center |
|
Steel manufacturing |
|
|
|
|
|
|
76.00 |
|
|
|
76.00 |
|
|
|
|
|
|
|
76.00 |
|
|
|
76.00 |
|
|
Brazil |
POSCO(Dalian) IT Center Development Co., Ltd. |
|
Investment |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
PT. POSCO RESOURCES INDONESIA |
|
Mine development |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Indonesia |
PT.POSCO ICT INDONESIA |
|
IT service and Electric Control Engineering |
|
|
|
|
|
|
66.99 |
|
|
|
66.99 |
|
|
|
|
|
|
|
66.99 |
|
|
|
66.99 |
|
|
Indonesia |
PT. POSCO MTECH INDONESIA |
|
Steel manufacturing |
|
|
|
|
|
|
71.43 |
|
|
|
71.43 |
|
|
|
|
|
|
|
60.00 |
|
|
|
60.00 |
|
|
Indonesia |
PT. KRAKATAU POSCO ENERGY |
|
Manufacturing & management |
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
|
|
|
|
|
90.00 |
|
|
|
90.00 |
|
|
Indonesia |
POSCO RUS LLC |
|
Trading business |
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
|
90.00 |
|
|
|
10.00 |
|
|
|
100.00 |
|
|
Russia |
POSCO Thainox Public Company Limited |
|
Steel manufacturing |
|
|
84.93 |
|
|
|
|
|
|
|
84.93 |
|
|
|
84.93 |
|
|
|
|
|
|
|
84.93 |
|
|
Thailand |
DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD. |
|
Merchandising trade |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
PT. Bio Inti Agrindo |
|
Forest resources development |
|
|
|
|
|
|
85.00 |
|
|
|
85.00 |
|
|
|
|
|
|
|
85.00 |
|
|
|
85.00 |
|
|
Indonesia |
POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA PTY LTD |
|
Iron ore sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Australia |
POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd. |
|
Steel manufacturing |
|
|
50.00 |
|
|
|
10.00 |
|
|
|
60.00 |
|
|
|
50.00 |
|
|
|
10.00 |
|
|
|
60.00 |
|
|
China |
Hunchun Posco Hyundai International Logistics Complex Development Co., Ltd |
|
Logistics |
|
|
|
|
|
|
80.00 |
|
|
|
80.00 |
|
|
|
|
|
|
|
72.93 |
|
|
|
72.93 |
|
|
China |
USA-SRDC |
|
Scrap sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
USA |
Daewoo International Vietnam Co., Ltd. |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Vietnam |
PT. Krakatau Posco Chemtech Calcination |
|
Manufacturing and selling of quicklime |
|
|
|
|
|
|
80.00 |
|
|
|
80.00 |
|
|
|
|
|
|
|
80.00 |
|
|
|
80.00 |
|
|
Indonesia |
POSCO AFRICA (PROPRIETARY) LIMITED |
|
Trading business |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Republic of South Africa |
EPC INGENIERIA & SERVICIOS DE COSTA RICA SA |
|
Construction and engineering service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Costa Rica |
POSCO ICT BRASIL |
|
IT service and engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Brazil |
LA-SRDC |
|
Scrap manufacturing |
|
|
|
|
|
|
68.41 |
|
|
|
68.41 |
|
|
|
|
|
|
|
68.41 |
|
|
|
68.41 |
|
|
USA |
DONG FANG JIN HONG |
|
Real estate development, rental and management |
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
China |
PRODUCTOS OFERTAS SISTEMAS Y COMERCIALIZADORA ORIENTAL S DE RL DE CV |
|
Steel manufacturing and sales |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Mexico |
POSCO(Guangdong) Automotive Steel Co., Ltd. |
|
Steel manufacturing and sales |
|
|
83.64 |
|
|
|
10.00 |
|
|
|
93.64 |
|
|
|
83.64 |
|
|
|
10.00 |
|
|
|
93.64 |
|
|
China |
POSCO MAPC SA DE CV |
|
Steel manufacturing and sales |
|
|
80.00 |
|
|
|
20.00 |
|
|
|
100.00 |
|
|
|
80.00 |
|
|
|
20.00 |
|
|
|
100.00 |
|
|
Mexico |
POSCO AMERICA COMERCIALIZADORA S DE RL DE CV |
|
Human-resource service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Mexico |
POSCO ENGINEERING (THAILAND) CO., LTD.(* 2) |
|
Chemical plant |
|
|
|
|
|
|
48.90 |
|
|
|
48.90 |
|
|
|
|
|
|
|
48.90 |
|
|
|
48.90 |
|
|
Thailand |
POSCO YongXin Rare Earth Metal Co., Ltd. |
|
Magnet material manufacturing and sales |
|
|
|
|
|
|
51.67 |
|
|
|
51.67 |
|
|
|
|
|
|
|
51.67 |
|
|
|
51.67 |
|
|
China |
POSCO-Mory-Maruyasu PIPE |
|
Common steel welded pipe manufacturing and selling |
|
|
|
|
|
|
50.00 |
|
|
|
50.00 |
|
|
|
|
|
|
|
50.00 |
|
|
|
50.00 |
|
|
Japan |
PT KRAKATAU BLUE WATER |
|
Wastewater treamtment facilities operation and maintemance |
|
|
|
|
|
|
67.00 |
|
|
|
67.00 |
|
|
|
|
|
|
|
67.00 |
|
|
|
67.00 |
|
|
Indonesia |
KRAKATAU POS-CHEM DONG-SUH CHEMICAL(* 2) |
|
Chemical by-product manufacturing and sales |
|
|
|
|
|
|
45.00 |
|
|
|
45.00 |
|
|
|
|
|
|
|
45.00 |
|
|
|
45.00 |
|
|
Indonesia |
Myanmar Daewoo International Corporation |
|
Trading business |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Myanmar |
POSCO-Italy Processing Center |
|
Stainless steel sheet manufacturing and sales |
|
|
80.00 |
|
|
|
10.00 |
|
|
|
90.00 |
|
|
|
80.00 |
|
|
|
10.00 |
|
|
|
90.00 |
|
|
Italy |
DAEWOO E&P CANADA CORPORATION |
|
Crude oil and natural gas mining |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Canada |
Yingkou Puxiang Trade Co., Ltd. |
|
Refractory quality test and import and export trade |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
China |
Myanmar POSCO C&C Company, Limited. |
|
Steel manufacturing and sales |
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
Myanmar |
POSCO ICT VIETNAM |
|
IT service and electric control engineering |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Vietnam |
Daewoo Global Development. Pte., Ltd |
|
Real estate development |
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
|
|
|
|
|
51.00 |
|
|
|
51.00 |
|
|
Myanmar |
Myanmar POSCO Engineering & Construction Company, Limited. |
|
Construction and engineering service |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
Myanmar |
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
Automotive steel sheet manufacturing and sales |
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
100.00 |
|
|
Thailand |
POSCO China Suzhou Processing Center Co., Ltd (formerly, POSCO-SAMSUNG Suzhou Processing Center Co., Ltd.) |
|
Steel manufacturing |
|
|
30.00 |
|
|
|
70.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China |
Hanjung Power Pty., Ltd |
|
Electricity production |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papua New Guinea |
Daewoo Amara Company Limited |
|
Real estate development |
|
|
|
|
|
|
98.54 |
|
|
|
98.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Myanmar |
POSMATE-CHINA CO., LTD |
|
Business facility maintenance |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China |
Daewoo Precious Resources Co., Ltd. |
|
Resources development |
|
|
|
|
|
|
60.00 |
|
|
|
60.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Myanmar |
POSCO-Mexico Villagran Wire-rod Processing Center |
|
Steel manufacturing |
|
|
56.75 |
|
|
|
10.00 |
|
|
|
66.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico |
SANTOS CMI Guatemala S.A. |
|
Construction |
|
|
|
|
|
|
99.00 |
|
|
|
99.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guatemala |
POSCO-China Dalian Steel Fabricating Center |
|
Steel manufacturing |
|
|
42.16 |
|
|
|
25.39 |
|
|
|
67.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China |
POSCO E&C HOLDINGS CO., Ltd. |
|
Holding company |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand |
POSCO E&C (THAILAND) CO., Ltd. |
|
Construction |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand |
SUNGJIN CANADA LTD. |
|
Machinery installation |
|
|
|
|
|
|
70.00 |
|
|
|
70.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
POSCO PLANTEC Thiland CO. LTD(* 2) |
|
Steel work maintenance and machinery installation |
|
|
|
|
|
|
48.78 |
|
|
|
48.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thailand |
DAEWOO POWER PNG Ltd. |
|
Electricity production |
|
|
|
|
|
|
100.00 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Papua New Guinea |
14
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(*1) |
Included as a subsidiary as the Company has the power over more than half of the voting rights by virtue of an agreement with Postech, which has a 4.72% ownership interest. |
(*2) |
These subsidiaries are included in the consolidated financial statements as the controlling company has control over them in consideration of the board of directors composition and others. |
The amounts recognized in equity as a result of changes in the Companys ownership interests in subsidiaries that did not result in a loss of control
(2014: POSCO P&S Co., Ltd., SPFC Co., Ltd. etc., 2013: POSCO Specialty Steel Co., Ltd., POSCO ICT Co., Ltd., POSCO TMC Co., Ltd. etc.,.) were ₩9,401 million and ₩31,417 million for the years ended December 31, 2014 and 2013,
respectively.
As of December 31, 2014, there are no restrictions on the ability of subsidiaries to transfer funds to the controlling company, such
as in the form of cash dividends, repayment of loans or payment of advances.
15
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Summarized financial information of subsidiaries as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
₩ |
6,566,784 |
|
|
|
3,594,334 |
|
|
|
2,972,450 |
|
|
|
7,514,710 |
|
|
|
13,353 |
|
POSCO Processing & Service |
|
|
1,297,049 |
|
|
|
425,568 |
|
|
|
871,481 |
|
|
|
3,162,892 |
|
|
|
(14,418 |
) |
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
423,833 |
|
|
|
257,365 |
|
|
|
166,468 |
|
|
|
801,982 |
|
|
|
(1,881 |
) |
POSCO ICT |
|
|
721,006 |
|
|
|
298,718 |
|
|
|
422,288 |
|
|
|
921,524 |
|
|
|
20,327 |
|
POSCO Research Institute |
|
|
37,511 |
|
|
|
10,118 |
|
|
|
27,393 |
|
|
|
59,851 |
|
|
|
897 |
|
POSMATE (formerly, Seoung Gwang Co., Ltd.) |
|
|
243,499 |
|
|
|
64,530 |
|
|
|
178,969 |
|
|
|
132,292 |
|
|
|
9,892 |
|
POSCO A&C |
|
|
86,469 |
|
|
|
53,203 |
|
|
|
33,266 |
|
|
|
189,401 |
|
|
|
(6,755 |
) |
POSCO Specialty Steel Co., Ltd. |
|
|
1,693,511 |
|
|
|
744,776 |
|
|
|
948,735 |
|
|
|
1,261,374 |
|
|
|
(20,126 |
) |
POSTECH Venture Capital Co., Ltd. |
|
|
163,045 |
|
|
|
52,034 |
|
|
|
111,011 |
|
|
|
16,074 |
|
|
|
4,073 |
|
eNtoB Corporation |
|
|
96,251 |
|
|
|
61,188 |
|
|
|
35,063 |
|
|
|
694,731 |
|
|
|
2,468 |
|
POSCO CHEMTECH |
|
|
645,782 |
|
|
|
138,334 |
|
|
|
507,448 |
|
|
|
1,330,564 |
|
|
|
70,544 |
|
POSCO-Terminal Co., Ltd. |
|
|
155,298 |
|
|
|
14,379 |
|
|
|
140,919 |
|
|
|
116,449 |
|
|
|
18,153 |
|
POSCO M-TECH |
|
|
220,770 |
|
|
|
171,484 |
|
|
|
49,286 |
|
|
|
437,995 |
|
|
|
(100,718 |
) |
POSCO ENERGY CO., LTD. |
|
|
4,645,722 |
|
|
|
3,061,231 |
|
|
|
1,584,491 |
|
|
|
2,533,673 |
|
|
|
19,254 |
|
POSCO TMC Co., Ltd. |
|
|
212,215 |
|
|
|
124,789 |
|
|
|
87,426 |
|
|
|
320,403 |
|
|
|
(3,418 |
) |
POSCO NIPPON STEEL RHF JOINT VENTURE.CO., Ltd. |
|
|
129,227 |
|
|
|
77,319 |
|
|
|
51,908 |
|
|
|
64,879 |
|
|
|
5,061 |
|
MegaAsset Co., Ltd. |
|
|
96,884 |
|
|
|
51,690 |
|
|
|
45,194 |
|
|
|
97,793 |
|
|
|
(3,489 |
) |
POSCO Engineering CO., Ltd |
|
|
568,164 |
|
|
|
398,179 |
|
|
|
169,985 |
|
|
|
928,505 |
|
|
|
1,308 |
|
POSCO AST |
|
|
494,743 |
|
|
|
349,438 |
|
|
|
145,305 |
|
|
|
621,944 |
|
|
|
(7,146 |
) |
POSHIMETAL Co., Ltd. |
|
|
348,050 |
|
|
|
353,470 |
|
|
|
(5,420 |
) |
|
|
186,634 |
|
|
|
(14,184 |
) |
Poscoene |
|
|
39,990 |
|
|
|
17,647 |
|
|
|
22,343 |
|
|
|
33,140 |
|
|
|
(12 |
) |
POSFINE Co., Ltd. |
|
|
53,556 |
|
|
|
40,662 |
|
|
|
12,894 |
|
|
|
22,489 |
|
|
|
(506 |
) |
POSCO Humans |
|
|
15,784 |
|
|
|
7,791 |
|
|
|
7,993 |
|
|
|
32,998 |
|
|
|
(1,451 |
) |
Mapo Hibroad Parking co., Ltd. |
|
|
1,541 |
|
|
|
323 |
|
|
|
1,218 |
|
|
|
|
|
|
|
(27 |
) |
Steel Processing and Fabricating Center Co., LTD |
|
|
150,587 |
|
|
|
84,928 |
|
|
|
65,659 |
|
|
|
176,558 |
|
|
|
(7,051 |
) |
Plant Engineering service Technology Co., Ltd. |
|
|
11,255 |
|
|
|
4,532 |
|
|
|
6,723 |
|
|
|
21,052 |
|
|
|
3,406 |
|
POSCO PLANTEC Co., Ltd. |
|
|
745,763 |
|
|
|
529,904 |
|
|
|
215,859 |
|
|
|
618,580 |
|
|
|
(279,217 |
) |
Busan E&E Co,. Ltd. |
|
|
97,734 |
|
|
|
57,278 |
|
|
|
40,456 |
|
|
|
22,096 |
|
|
|
897 |
|
POSCO Family Strategy Fund |
|
|
53,144 |
|
|
|
|
|
|
|
53,144 |
|
|
|
1,249 |
|
|
|
(9,495 |
) |
POREKA Co., Ltd. |
|
|
19,791 |
|
|
|
15,924 |
|
|
|
3,867 |
|
|
|
20,477 |
|
|
|
(175 |
) |
Daewoo International Corporation |
|
|
8,631,129 |
|
|
|
6,287,212 |
|
|
|
2,343,917 |
|
|
|
19,938,097 |
|
|
|
173,421 |
|
POSCO LED Co., Ltd. |
|
|
47,561 |
|
|
|
46,154 |
|
|
|
1,407 |
|
|
|
50,005 |
|
|
|
(5,718 |
) |
Pohang Scrap Recycling Distribution Center Co., Ltd. |
|
|
16,938 |
|
|
|
326 |
|
|
|
16,612 |
|
|
|
3,994 |
|
|
|
426 |
|
PSC Energy Global Co., Ltd. |
|
|
108,792 |
|
|
|
8 |
|
|
|
108,784 |
|
|
|
|
|
|
|
(4,138 |
) |
Suncheon Eco Trans Co., Ltd |
|
|
69,362 |
|
|
|
46,226 |
|
|
|
23,136 |
|
|
|
1,295 |
|
|
|
(5,098 |
) |
New Altec Co., Ltd |
|
|
128,050 |
|
|
|
33,347 |
|
|
|
94,703 |
|
|
|
72,145 |
|
|
|
(1,867 |
) |
PONUTech Co., Ltd. |
|
|
110,739 |
|
|
|
84,288 |
|
|
|
26,451 |
|
|
|
48,581 |
|
|
|
(8,047 |
) |
Tamra Offshore Wind Power Co., Ltd |
|
|
26,881 |
|
|
|
12 |
|
|
|
26,869 |
|
|
|
|
|
|
|
141 |
|
POS-HiAL |
|
|
60,794 |
|
|
|
53,068 |
|
|
|
7,726 |
|
|
|
1,445 |
|
|
|
(8,576 |
) |
IT Engineering |
|
|
6,002 |
|
|
|
2,274 |
|
|
|
3,728 |
|
|
|
7,666 |
|
|
|
51 |
|
Future Creation Fund Postech Early Stage account |
|
|
16,590 |
|
|
|
3 |
|
|
|
16,587 |
|
|
|
98 |
|
|
|
(659 |
) |
Keystone Private Equity |
|
|
24,139 |
|
|
|
107 |
|
|
|
24,032 |
|
|
|
|
|
|
|
(4,143 |
) |
POSCO Green Gas Technology |
|
|
894,226 |
|
|
|
214,915 |
|
|
|
679,311 |
|
|
|
|
|
|
|
(3,289 |
) |
POSCO WOMANS FUND |
|
|
2,916 |
|
|
|
1 |
|
|
|
2,915 |
|
|
|
21 |
|
|
|
(85 |
) |
POSPOWER CO., Ltd. |
|
|
79,222 |
|
|
|
1,911 |
|
|
|
77,311 |
|
|
|
|
|
|
|
(1,190 |
) |
Songdo Posco family Housing |
|
|
69,125 |
|
|
|
68,135 |
|
|
|
990 |
|
|
|
|
|
|
|
(10 |
) |
16
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO America Corporation |
|
₩ |
515,212 |
|
|
|
451,641 |
|
|
|
63,571 |
|
|
|
921,052 |
|
|
|
(17,185 |
) |
POSCO AUSTRALIA PTY LTD |
|
|
720,400 |
|
|
|
59,585 |
|
|
|
660,815 |
|
|
|
91,250 |
|
|
|
78,401 |
|
POSCO Canada Ltd. |
|
|
585,737 |
|
|
|
75,284 |
|
|
|
510,453 |
|
|
|
142,286 |
|
|
|
41,083 |
|
POSCO Asia Co., Ltd. |
|
|
1,064,932 |
|
|
|
1,018,268 |
|
|
|
46,664 |
|
|
|
3,561,754 |
|
|
|
5,570 |
|
POSCO-CTPC Co., Ltd. |
|
|
106,837 |
|
|
|
67,556 |
|
|
|
39,281 |
|
|
|
138,102 |
|
|
|
2,145 |
|
POSCO-JKPC Co., Ltd. |
|
|
105,381 |
|
|
|
85,664 |
|
|
|
19,717 |
|
|
|
216,557 |
|
|
|
990 |
|
POSCO E&C Vietnam Co., Ltd. |
|
|
266,220 |
|
|
|
203,011 |
|
|
|
63,209 |
|
|
|
493,472 |
|
|
|
14,905 |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
|
1,353,790 |
|
|
|
837,341 |
|
|
|
516,449 |
|
|
|
3,022,527 |
|
|
|
7,336 |
|
POSCO (Guangdong) Steel Co., Ltd. |
|
|
115,250 |
|
|
|
72,510 |
|
|
|
42,740 |
|
|
|
185,880 |
|
|
|
(2,397 |
) |
POSCO (Thailand) Company Limited |
|
|
111,616 |
|
|
|
66,827 |
|
|
|
44,789 |
|
|
|
169,822 |
|
|
|
(356 |
) |
Myanmar POSCO Steel Co., Ltd |
|
|
19,206 |
|
|
|
846 |
|
|
|
18,360 |
|
|
|
15,393 |
|
|
|
1,058 |
|
POSCO Investment Co., Ltd. |
|
|
852,003 |
|
|
|
742,198 |
|
|
|
109,805 |
|
|
|
14,865 |
|
|
|
5,302 |
|
POSCO-MKPC SDN BHD |
|
|
114,638 |
|
|
|
72,849 |
|
|
|
41,789 |
|
|
|
162,687 |
|
|
|
(1,682 |
) |
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
192,701 |
|
|
|
107,717 |
|
|
|
84,984 |
|
|
|
347,484 |
|
|
|
(7,313 |
) |
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
373,257 |
|
|
|
248,405 |
|
|
|
124,852 |
|
|
|
460,216 |
|
|
|
8,821 |
|
POSCO BIOVENTURES I, L.P. |
|
|
7,016 |
|
|
|
41 |
|
|
|
6,975 |
|
|
|
351 |
|
|
|
(992 |
) |
PT. POSNESIA Stainless Steel Industry |
|
|
12,080 |
|
|
|
|
|
|
|
12,080 |
|
|
|
|
|
|
|
29 |
|
POSEC Hawaii, Inc. |
|
|
280 |
|
|
|
5 |
|
|
|
275 |
|
|
|
|
|
|
|
(43 |
) |
POSCO-China Qingdao Processing Center Co., Ltd. |
|
|
53,358 |
|
|
|
37,951 |
|
|
|
15,407 |
|
|
|
99,795 |
|
|
|
557 |
|
POS-ORE PTY LTD |
|
|
22,757 |
|
|
|
13,589 |
|
|
|
9,168 |
|
|
|
112,323 |
|
|
|
32,629 |
|
POSCO-China Holding Corp. |
|
|
430,973 |
|
|
|
173,012 |
|
|
|
257,961 |
|
|
|
220,376 |
|
|
|
880 |
|
POSCO JAPAN Co., Ltd. |
|
|
631,040 |
|
|
|
520,718 |
|
|
|
110,322 |
|
|
|
1,440,254 |
|
|
|
13,854 |
|
POS-CD PTY LTD |
|
|
29,252 |
|
|
|
13,661 |
|
|
|
15,591 |
|
|
|
11,873 |
|
|
|
(24,933 |
) |
POS-GC PTY LTD |
|
|
46,289 |
|
|
|
42,339 |
|
|
|
3,950 |
|
|
|
3,354 |
|
|
|
(6,004 |
) |
POSCO-India Private Limited |
|
|
118,083 |
|
|
|
1,186 |
|
|
|
116,897 |
|
|
|
|
|
|
|
71 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
194,840 |
|
|
|
187,259 |
|
|
|
7,581 |
|
|
|
335,847 |
|
|
|
3,356 |
|
POSCO-JEPC Co., Ltd. |
|
|
155,248 |
|
|
|
137,364 |
|
|
|
17,884 |
|
|
|
283,836 |
|
|
|
1,558 |
|
POSCO-CFPC Co., Ltd. |
|
|
211,258 |
|
|
|
165,223 |
|
|
|
46,035 |
|
|
|
638,272 |
|
|
|
1,289 |
|
POSCO E&C CHINA Co., Ltd. |
|
|
275,313 |
|
|
|
201,973 |
|
|
|
73,340 |
|
|
|
319,427 |
|
|
|
17,504 |
|
POSCO MPPC S.A. de C.V. |
|
|
236,416 |
|
|
|
202,138 |
|
|
|
34,278 |
|
|
|
348,507 |
|
|
|
2,985 |
|
Zhangjigang Pohang Port Co., Ltd. |
|
|
22,145 |
|
|
|
5,567 |
|
|
|
16,578 |
|
|
|
6,167 |
|
|
|
516 |
|
Qingdao Pos-metal Co., Ltd. |
|
|
5,368 |
|
|
|
5,838 |
|
|
|
(470 |
) |
|
|
34,511 |
|
|
|
72 |
|
POSCO-VIETNAM Co., Ltd. |
|
|
558,841 |
|
|
|
532,066 |
|
|
|
26,775 |
|
|
|
645,269 |
|
|
|
(6,334 |
) |
POSCO MEXICO S.A. DE C.V. |
|
|
806,888 |
|
|
|
598,459 |
|
|
|
208,429 |
|
|
|
492,045 |
|
|
|
168 |
|
POSCO India Delhi Steel Processing Centre Private Limited |
|
|
119,803 |
|
|
|
113,271 |
|
|
|
6,532 |
|
|
|
170,150 |
|
|
|
(1,348 |
) |
POSCO-Poland Wroclaw Processing Center Sp. z o. o. |
|
|
38,960 |
|
|
|
21,430 |
|
|
|
17,530 |
|
|
|
49,446 |
|
|
|
73 |
|
POS-NP PTY LTD |
|
|
36,662 |
|
|
|
21,434 |
|
|
|
15,228 |
|
|
|
17,092 |
|
|
|
(14,860 |
) |
POSCO-Vietnam Processing Center Co., Ltd. |
|
|
128,334 |
|
|
|
100,033 |
|
|
|
28,301 |
|
|
|
208,533 |
|
|
|
1,147 |
|
POSCO (Chongqing) Automotive Processing Center Co., Ltd. |
|
|
94,082 |
|
|
|
67,088 |
|
|
|
26,994 |
|
|
|
128,069 |
|
|
|
3,392 |
|
SUZHOU POSCO-CORE TECHNOLOGY CO., LTD. |
|
|
54,488 |
|
|
|
30,627 |
|
|
|
23,861 |
|
|
|
88,534 |
|
|
|
(1,001 |
) |
POSCO-Malaysia SDN. BHD. |
|
|
76,452 |
|
|
|
87,145 |
|
|
|
(10,693 |
) |
|
|
112,578 |
|
|
|
(5,933 |
) |
POS-Minerals Corporation |
|
|
228,578 |
|
|
|
132,804 |
|
|
|
95,774 |
|
|
|
|
|
|
|
(5,999 |
) |
POSCO (Wuhu) Automotive Processing Center Co., Ltd. |
|
|
89,252 |
|
|
|
45,002 |
|
|
|
44,250 |
|
|
|
127,266 |
|
|
|
2,487 |
|
POSCO Engineering and Construction India Private Limited |
|
|
13,444 |
|
|
|
4,737 |
|
|
|
8,707 |
|
|
|
39,427 |
|
|
|
1,564 |
|
POSCO E&C SMART S DE RL DE CV |
|
|
14,365 |
|
|
|
10,040 |
|
|
|
4,325 |
|
|
|
4,077 |
|
|
|
730 |
|
POSCO Philippine Manila Processing Center, Inc. |
|
|
25,367 |
|
|
|
14,501 |
|
|
|
10,866 |
|
|
|
30,918 |
|
|
|
577 |
|
POSCO China Suzhou Processing Center Co., Ltd (formerly, POSCO-SAMSUNG Suzhou Processing Center Co., Ltd.) |
|
|
20,079 |
|
|
|
15,150 |
|
|
|
4,929 |
|
|
|
28,466 |
|
|
|
(308 |
) |
POSCO Gulf SFC LLC |
|
|
73,679 |
|
|
|
70,267 |
|
|
|
3,412 |
|
|
|
32,464 |
|
|
|
(2,090 |
) |
Dalian POSCO ICT-DONGFANG Engineering Co., Ltd. |
|
|
4,388 |
|
|
|
1,952 |
|
|
|
2,436 |
|
|
|
7,436 |
|
|
|
77 |
|
SANPU TRADING Co., Ltd. |
|
|
1,859 |
|
|
|
|
|
|
|
1,859 |
|
|
|
69 |
|
|
|
23 |
|
Zhangjiagang BLZ Pohang International Trading |
|
|
10,683 |
|
|
|
5,421 |
|
|
|
5,262 |
|
|
|
67,936 |
|
|
|
180 |
|
POSCO MEXICO HUMAN TECH S.A. de C.V. |
|
|
1,314 |
|
|
|
1,129 |
|
|
|
185 |
|
|
|
10,209 |
|
|
|
72 |
|
POSCO MESDC S.A. DE C.V. |
|
|
11,772 |
|
|
|
277 |
|
|
|
11,495 |
|
|
|
6,865 |
|
|
|
361 |
|
17
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ICT-China |
|
₩ |
5,465 |
|
|
|
4,484 |
|
|
|
981 |
|
|
|
11,439 |
|
|
|
347 |
|
DWEMEX, S.A.DE.C.V. |
|
|
169 |
|
|
|
25 |
|
|
|
144 |
|
|
|
|
|
|
|
(8 |
) |
POSCO MPC Servicios S.A. de C.V. |
|
|
1,403 |
|
|
|
1,121 |
|
|
|
282 |
|
|
|
7,449 |
|
|
|
28 |
|
POSCO-Uruguay S.A |
|
|
21,408 |
|
|
|
168 |
|
|
|
21,240 |
|
|
|
8 |
|
|
|
(482 |
) |
Pos-Sea Pte Ltd |
|
|
43,343 |
|
|
|
43,168 |
|
|
|
175 |
|
|
|
200,491 |
|
|
|
(2,505 |
) |
POSCO Europe Steel Distribution Center |
|
|
7,880 |
|
|
|
1,382 |
|
|
|
6,498 |
|
|
|
15,151 |
|
|
|
693 |
|
POSCO ENGINEERING (THAILAND) CO., LTD. |
|
|
47,197 |
|
|
|
44,170 |
|
|
|
3,027 |
|
|
|
118,897 |
|
|
|
2,202 |
|
VECTUS LIMITED |
|
|
1,942 |
|
|
|
12,272 |
|
|
|
(10,330 |
) |
|
|
3,252 |
|
|
|
1,993 |
|
POSCO VST CO., LTD. |
|
|
345,119 |
|
|
|
320,642 |
|
|
|
24,477 |
|
|
|
414,452 |
|
|
|
(4,416 |
) |
POSCO Maharashtra Steel Private Limited |
|
|
1,408,178 |
|
|
|
1,210,616 |
|
|
|
197,562 |
|
|
|
376,207 |
|
|
|
(26,742 |
) |
POSCO India Chennai Steel Processing Centre Pvt. Ltd. |
|
|
115,574 |
|
|
|
104,350 |
|
|
|
11,224 |
|
|
|
173,873 |
|
|
|
2,426 |
|
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S |
|
|
38,009 |
|
|
|
31,066 |
|
|
|
6,943 |
|
|
|
48,985 |
|
|
|
56 |
|
POSCO Vietnam Ha Noi Processing Center Co., Ltd. |
|
|
68,454 |
|
|
|
60,593 |
|
|
|
7,861 |
|
|
|
149,408 |
|
|
|
1,047 |
|
POSCO (Liaoning) Automotive Processing Center Co., Ltd. |
|
|
90,145 |
|
|
|
58,957 |
|
|
|
31,188 |
|
|
|
155,931 |
|
|
|
4,184 |
|
POSCO-Indonesia Jakarta Processing Center |
|
|
102,635 |
|
|
|
86,082 |
|
|
|
16,553 |
|
|
|
72,998 |
|
|
|
(1,175 |
) |
POSCO E&C VENEZUELA C.A. |
|
|
160 |
|
|
|
6 |
|
|
|
154 |
|
|
|
|
|
|
|
(189 |
) |
Motta Resources Indonesia |
|
|
3,723 |
|
|
|
18,391 |
|
|
|
(14,668 |
) |
|
|
|
|
|
|
(367 |
) |
POSCO TMC INDIA PRIVATE LIMITED |
|
|
12,037 |
|
|
|
10,250 |
|
|
|
1,787 |
|
|
|
21,278 |
|
|
|
(128 |
) |
POSCO America Alabama Processing Center Co., Ltd. |
|
|
50,401 |
|
|
|
37,403 |
|
|
|
12,998 |
|
|
|
102,543 |
|
|
|
620 |
|
PT PEN INDONESIA |
|
|
8,758 |
|
|
|
17,293 |
|
|
|
(8,535 |
) |
|
|
14,765 |
|
|
|
(10,701 |
) |
POSCO (Yantai) Automotive Processing Center Co., Ltd. |
|
|
68,503 |
|
|
|
47,304 |
|
|
|
21,199 |
|
|
|
91,994 |
|
|
|
2,783 |
|
POSCO India Steel Distribution Center Private Ltd. |
|
|
12,750 |
|
|
|
10,419 |
|
|
|
2,331 |
|
|
|
31,734 |
|
|
|
650 |
|
POSCO China Dalian Plate Processing Center Co., Ltd. |
|
|
117,991 |
|
|
|
104,670 |
|
|
|
13,321 |
|
|
|
40,761 |
|
|
|
(7,434 |
) |
POSCO-South Asia Company Limited |
|
|
14,189 |
|
|
|
231 |
|
|
|
13,958 |
|
|
|
9,460 |
|
|
|
605 |
|
POSCO SS-VINA |
|
|
670,244 |
|
|
|
422,339 |
|
|
|
247,905 |
|
|
|
|
|
|
|
(8,422 |
) |
POSCO WA PTY LTD |
|
|
450,307 |
|
|
|
8 |
|
|
|
450,299 |
|
|
|
|
|
|
|
(6,957 |
) |
POSCO Engineering and Construction - UZ |
|
|
5,479 |
|
|
|
4,394 |
|
|
|
1,085 |
|
|
|
2,967 |
|
|
|
222 |
|
POSCO AUSTRALIA GP PTY LIMITED |
|
|
26,521 |
|
|
|
3 |
|
|
|
26,518 |
|
|
|
|
|
|
|
(11,381 |
) |
POSCO YongXin Rare Earth Metal Co., Ltd. |
|
|
76,178 |
|
|
|
96,493 |
|
|
|
(20,315 |
) |
|
|
36,803 |
|
|
|
(9,979 |
) |
Hanjung Power Pty., Ltd |
|
|
26,855 |
|
|
|
12,737 |
|
|
|
14,118 |
|
|
|
39,364 |
|
|
|
8,441 |
|
Daewoo International (America) Corp. |
|
|
556,964 |
|
|
|
506,331 |
|
|
|
50,633 |
|
|
|
1,336,452 |
|
|
|
2,660 |
|
Daewoo International (Deutschland) GmbH. |
|
|
208,781 |
|
|
|
198,442 |
|
|
|
10,339 |
|
|
|
422,239 |
|
|
|
31 |
|
Daewoo International Japan Corp. |
|
|
262,049 |
|
|
|
256,088 |
|
|
|
5,961 |
|
|
|
762,596 |
|
|
|
311 |
|
DAEWOO INTERNATIONAL SINGAPORE PTE. LTD. |
|
|
197,342 |
|
|
|
193,290 |
|
|
|
4,052 |
|
|
|
1,084,755 |
|
|
|
123 |
|
Daewoo Italia S.r.l. |
|
|
73,310 |
|
|
|
68,619 |
|
|
|
4,691 |
|
|
|
259,456 |
|
|
|
235 |
|
Daewoo (China) Co., Ltd. |
|
|
121,588 |
|
|
|
71,510 |
|
|
|
50,078 |
|
|
|
320,028 |
|
|
|
1,275 |
|
DAEWOO TEXTILE FERGANA LLC |
|
|
87,729 |
|
|
|
57,609 |
|
|
|
30,120 |
|
|
|
99,825 |
|
|
|
889 |
|
DAEWOO TEXTILE BUKHARA LLC |
|
|
51,456 |
|
|
|
31,530 |
|
|
|
19,926 |
|
|
|
40,903 |
|
|
|
1,575 |
|
DAEWOO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD |
|
|
125,964 |
|
|
|
24,150 |
|
|
|
101,814 |
|
|
|
22,493 |
|
|
|
(759 |
) |
Daewoo Paper Manufacturing Co., Ltd. |
|
|
63,029 |
|
|
|
71,231 |
|
|
|
(8,202 |
) |
|
|
50,188 |
|
|
|
(4,253 |
) |
Tianjin Daewoo Paper Manufacturing Co., Ltd. |
|
|
14,166 |
|
|
|
32,073 |
|
|
|
(17,907 |
) |
|
|
|
|
|
|
|
|
POSCO MAURITIUS LIMITED |
|
|
26,585 |
|
|
|
4 |
|
|
|
26,581 |
|
|
|
|
|
|
|
(11 |
) |
PT. KRAKATAU POSCO |
|
|
3,955,121 |
|
|
|
3,131,407 |
|
|
|
823,714 |
|
|
|
1,129,977 |
|
|
|
(250,848 |
) |
Myanmar Daewoo Limited |
|
|
677 |
|
|
|
692 |
|
|
|
(15 |
) |
|
|
|
|
|
|
(180 |
) |
DAEWOO INTERNATIONAL MEXICO S.A. DE C.V. |
|
|
101,819 |
|
|
|
94,153 |
|
|
|
7,666 |
|
|
|
249,722 |
|
|
|
2,128 |
|
Daewoo International Guangzhou Corp. |
|
|
6,152 |
|
|
|
5,994 |
|
|
|
158 |
|
|
|
27,280 |
|
|
|
(428 |
) |
Daewoo (M) SDN. BHD. |
|
|
39,461 |
|
|
|
36,902 |
|
|
|
2,559 |
|
|
|
102,439 |
|
|
|
314 |
|
18
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO (Zhangjiagang) STS Processing Center Co., Ltd |
|
₩ |
73,628 |
|
|
|
59,946 |
|
|
|
13,682 |
|
|
|
395,782 |
|
|
|
375 |
|
Daewoo International (M) SDN BHD |
|
|
39,461 |
|
|
|
36,902 |
|
|
|
2,559 |
|
|
|
102,439 |
|
|
|
314 |
|
Daewoo International SHANGHAI CO., LTD. |
|
|
39,981 |
|
|
|
31,572 |
|
|
|
8,409 |
|
|
|
30,161 |
|
|
|
330 |
|
PGSF, L.P. |
|
|
9,290 |
|
|
|
2 |
|
|
|
9,288 |
|
|
|
|
|
|
|
1,452 |
|
Xenesys Inc. |
|
|
5,141 |
|
|
|
1,713 |
|
|
|
3,428 |
|
|
|
2,668 |
|
|
|
(1,900 |
) |
Daewoo International INDIA Private Ltd. |
|
|
29,318 |
|
|
|
27,241 |
|
|
|
2,077 |
|
|
|
58,090 |
|
|
|
283 |
|
TECHREN Solar, LLC |
|
|
106 |
|
|
|
330 |
|
|
|
(224 |
) |
|
|
|
|
|
|
(5,623 |
) |
PT. POSCO E&C INDONESIA |
|
|
22,799 |
|
|
|
9,401 |
|
|
|
13,398 |
|
|
|
54,954 |
|
|
|
7,701 |
|
HUME COAL PTY LTD |
|
|
88,827 |
|
|
|
6,580 |
|
|
|
82,247 |
|
|
|
266 |
|
|
|
(2 |
) |
POSCO FOUNDATION |
|
|
172 |
|
|
|
1 |
|
|
|
171 |
|
|
|
|
|
|
|
8 |
|
EPC EQUITIES LLP |
|
|
49,096 |
|
|
|
50,173 |
|
|
|
(1,077 |
) |
|
|
|
|
|
|
(156 |
) |
SANTOS CMI CONSTRUCTION TRADING LLP |
|
|
22,371 |
|
|
|
32,738 |
|
|
|
(10,367 |
) |
|
|
730 |
|
|
|
(7,661 |
) |
SANTOS CMI INC. USA |
|
|
31,286 |
|
|
|
29,747 |
|
|
|
1,539 |
|
|
|
19,318 |
|
|
|
122 |
|
SANTOS CMI ENGENHARIA E CONSTRUCOES LTDA |
|
|
22,741 |
|
|
|
30,708 |
|
|
|
(7,967 |
) |
|
|
47,640 |
|
|
|
(3,300 |
) |
SANTOS CMI PERU S.A. |
|
|
10,863 |
|
|
|
37,270 |
|
|
|
(26,407 |
) |
|
|
1,382 |
|
|
|
(2,806 |
) |
SANTOS CMI CONSTRUCCIONES S.A. |
|
|
9,888 |
|
|
|
10,399 |
|
|
|
(511 |
) |
|
|
9,413 |
|
|
|
(518 |
) |
GENTECH INTERNATIONAL INC. |
|
|
103 |
|
|
|
104 |
|
|
|
(1 |
) |
|
|
99 |
|
|
|
(658 |
) |
EPC INVESTMENTS C.V. |
|
|
|
|
|
|
25 |
|
|
|
(25 |
) |
|
|
|
|
|
|
|
|
SANTOSCMI S.A. |
|
|
38,264 |
|
|
|
26,176 |
|
|
|
12,088 |
|
|
|
38,840 |
|
|
|
(2,406 |
) |
SANTOSCMI CONSTRUCCIONES DE CHILE S.A. |
|
|
8,545 |
|
|
|
4,591 |
|
|
|
3,954 |
|
|
|
1,172 |
|
|
|
808 |
|
COMPANIADEAUTOMATIZACION& CONTROL, GENESYS S.A. |
|
|
7,736 |
|
|
|
4,256 |
|
|
|
3,480 |
|
|
|
12,484 |
|
|
|
25 |
|
VAUTIDAMERICAS S.A. |
|
|
3,365 |
|
|
|
2,265 |
|
|
|
1,100 |
|
|
|
1,573 |
|
|
|
(744 |
) |
POSCO ASSAN TST STEEL INDUSTRY |
|
|
723,377 |
|
|
|
694,452 |
|
|
|
28,925 |
|
|
|
509,859 |
|
|
|
(14,543 |
) |
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
|
150,088 |
|
|
|
182,662 |
|
|
|
(32,574 |
) |
|
|
|
|
|
|
(9,418 |
) |
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
|
193,998 |
|
|
|
162,790 |
|
|
|
31,208 |
|
|
|
270,082 |
|
|
|
6,263 |
|
POSCO Electrical Steel India Private Limited |
|
|
216,877 |
|
|
|
184,643 |
|
|
|
32,234 |
|
|
|
114,433 |
|
|
|
189 |
|
PT. POSCO RESOURCES INDONESIA |
|
|
753 |
|
|
|
34 |
|
|
|
719 |
|
|
|
719 |
|
|
|
(334 |
) |
POSCO (Dalian) IT Center Development Co., Ltd. |
|
|
312,970 |
|
|
|
175,925 |
|
|
|
137,045 |
|
|
|
|
|
|
|
(2,134 |
) |
Brazil Sao Paulo Steel Processing Center |
|
|
63,978 |
|
|
|
69,325 |
|
|
|
(5,347 |
) |
|
|
34,734 |
|
|
|
(12,867 |
) |
DAESAN (CAMBODIA) Co., Ltd. |
|
|
28,718 |
|
|
|
34,003 |
|
|
|
(5,285 |
) |
|
|
|
|
|
|
6 |
|
PT.POSCO ICT INDONESIA |
|
|
9,300 |
|
|
|
7,860 |
|
|
|
1,440 |
|
|
|
30,841 |
|
|
|
1,004 |
|
PT. POSCO MTECH INDONESIA |
|
|
17,509 |
|
|
|
13,231 |
|
|
|
4,278 |
|
|
|
12,532 |
|
|
|
(1,026 |
) |
PT. KRAKATAU POSCO ENERGY |
|
|
320,630 |
|
|
|
215,524 |
|
|
|
105,106 |
|
|
|
31,693 |
|
|
|
15,152 |
|
POSCO RUS LLC |
|
|
10,604 |
|
|
|
9,681 |
|
|
|
923 |
|
|
|
5,496 |
|
|
|
(1,344 |
) |
POSCO Thainox Public Company Limited |
|
|
421,059 |
|
|
|
122,113 |
|
|
|
298,946 |
|
|
|
475,345 |
|
|
|
3,799 |
|
DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD. |
|
|
21,997 |
|
|
|
21,169 |
|
|
|
828 |
|
|
|
125,707 |
|
|
|
|
|
PT. Bio Inti Agrindo |
|
|
89,249 |
|
|
|
64,759 |
|
|
|
24,490 |
|
|
|
2,817 |
|
|
|
(2,048 |
) |
POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA PTY LTD |
|
|
5,788 |
|
|
|
7,330 |
|
|
|
(1,542 |
) |
|
|
7,799 |
|
|
|
(3,662 |
) |
POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd. |
|
|
71,032 |
|
|
|
55,576 |
|
|
|
15,456 |
|
|
|
95,681 |
|
|
|
(1,302 |
) |
Hunchun Posco Hyundai International Logistics Complex Development Co., Ltd |
|
|
85,440 |
|
|
|
49 |
|
|
|
85,391 |
|
|
|
|
|
|
|
(537 |
) |
USA-SRDC |
|
|
419 |
|
|
|
|
|
|
|
419 |
|
|
|
|
|
|
|
(4 |
) |
Daewoo International Vietnam Co., Ltd. |
|
|
5,130 |
|
|
|
835 |
|
|
|
4,295 |
|
|
|
5,951 |
|
|
|
387 |
|
PT.Krakatau Posco Chemtech Calcination |
|
|
75,294 |
|
|
|
48,625 |
|
|
|
26,669 |
|
|
|
23,856 |
|
|
|
5,244 |
|
POSCO AFRICA (PROPRIETARY) LIMITED |
|
|
40,803 |
|
|
|
48 |
|
|
|
40,755 |
|
|
|
219 |
|
|
|
(1,048 |
) |
EPC INGENIERIA & SERVICIOS DE COSTA RICA SA |
|
|
3,616 |
|
|
|
132 |
|
|
|
3,484 |
|
|
|
2,914 |
|
|
|
773 |
|
POSCO ICT BRASIL |
|
|
5,876 |
|
|
|
7,578 |
|
|
|
(1,702 |
) |
|
|
2,863 |
|
|
|
(1,416 |
) |
LA-SRDC |
|
|
1,154 |
|
|
|
552 |
|
|
|
602 |
|
|
|
5,431 |
|
|
|
19 |
|
DONG FANG JIN HONG |
|
|
470,759 |
|
|
|
298,789 |
|
|
|
171,970 |
|
|
|
|
|
|
|
(2,047 |
) |
19
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTOS OFERTAS SISTEMAS Y COMERCIALIZADORA ORIENTAL S DE RL DE CV |
|
₩ |
79 |
|
|
|
75 |
|
|
|
4 |
|
|
|
787 |
|
|
|
3 |
|
POSCO AMERICA COMERCIALIZADORA S DE RL DE CV |
|
|
55,653 |
|
|
|
56,127 |
|
|
|
(474 |
) |
|
|
91,370 |
|
|
|
(696 |
) |
POSCO (Guangdong) Automotive Steel Co., Ltd. |
|
|
384,846 |
|
|
|
258,563 |
|
|
|
126,283 |
|
|
|
237,943 |
|
|
|
(317 |
) |
POSCO MAPC SA DE CV |
|
|
49,621 |
|
|
|
28,816 |
|
|
|
20,805 |
|
|
|
86,818 |
|
|
|
16 |
|
POSCO-Mory-Maruyasu PIPE |
|
|
8,417 |
|
|
|
6,007 |
|
|
|
2,410 |
|
|
|
4,425 |
|
|
|
(1,622 |
) |
PT KRAKATAU BLUE WATER |
|
|
1,470 |
|
|
|
823 |
|
|
|
647 |
|
|
|
1,369 |
|
|
|
335 |
|
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
|
|
28,389 |
|
|
|
20,196 |
|
|
|
8,193 |
|
|
|
16,626 |
|
|
|
(591 |
) |
Myanmar Daewoo International Corporation |
|
|
6,410 |
|
|
|
179 |
|
|
|
6,231 |
|
|
|
1,771 |
|
|
|
493 |
|
POSCO-Italy Processing Center |
|
|
86,819 |
|
|
|
80,333 |
|
|
|
6,486 |
|
|
|
84,698 |
|
|
|
1,042 |
|
DAEWOO E&P CANADA CORPORATION |
|
|
35,943 |
|
|
|
21,841 |
|
|
|
14,102 |
|
|
|
6,572 |
|
|
|
1,903 |
|
Yingkou Puxiang Trade Co., Ltd. |
|
|
328 |
|
|
|
62 |
|
|
|
266 |
|
|
|
998 |
|
|
|
(85 |
) |
Myanmar POSCO C&C Company, Limited. |
|
|
19,773 |
|
|
|
13,594 |
|
|
|
6,179 |
|
|
|
606 |
|
|
|
(398 |
) |
POSCO ICT VIETNAM |
|
|
3,013 |
|
|
|
1,729 |
|
|
|
1,284 |
|
|
|
5,259 |
|
|
|
607 |
|
Daewoo Global Development. Pte., Ltd |
|
|
109,238 |
|
|
|
61,067 |
|
|
|
48,171 |
|
|
|
352 |
|
|
|
(6,296 |
) |
Myanmar POSCO Engineering & Construction Company, Limited. |
|
|
11,871 |
|
|
|
7,221 |
|
|
|
4,650 |
|
|
|
18,763 |
|
|
|
2,351 |
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
|
91,177 |
|
|
|
727 |
|
|
|
90,450 |
|
|
|
|
|
|
|
(2,481 |
) |
DAEWOO POWER AND INFRA (PTY) LTD. |
|
|
705 |
|
|
|
327 |
|
|
|
378 |
|
|
|
1,116 |
|
|
|
388 |
|
Daewoo Amara Company Limited |
|
|
102,412 |
|
|
|
55,162 |
|
|
|
47,250 |
|
|
|
|
|
|
|
(1,068 |
) |
POSMATE-CHINA CO., LTD |
|
|
254 |
|
|
|
5 |
|
|
|
249 |
|
|
|
120 |
|
|
|
34 |
|
Daewoo Precious Resources Co., Ltd. |
|
|
3,411 |
|
|
|
3 |
|
|
|
3,408 |
|
|
|
|
|
|
|
|
|
POSCO-Mexico Villagran Wire-rod Processing Center |
|
|
16,547 |
|
|
|
210 |
|
|
|
16,337 |
|
|
|
|
|
|
|
(566 |
) |
SANTOS CMI Guatemala S.A. |
|
|
9,001 |
|
|
|
8,814 |
|
|
|
187 |
|
|
|
36,602 |
|
|
|
101 |
|
POSCO-China Dalian Steel Fabricating Center |
|
|
9,410 |
|
|
|
436 |
|
|
|
8,974 |
|
|
|
558 |
|
|
|
(906 |
) |
POSCO E&C HOLDINGS CO., Ltd. |
|
|
500 |
|
|
|
192 |
|
|
|
308 |
|
|
|
|
|
|
|
(22 |
) |
POSCO E&C (THAILAND) CO., Ltd. |
|
|
2,181 |
|
|
|
1,543 |
|
|
|
638 |
|
|
|
125 |
|
|
|
(10 |
) |
SUNGJIN CANADA LTD. |
|
|
357 |
|
|
|
55 |
|
|
|
302 |
|
|
|
|
|
|
|
(430 |
) |
POSCO PLANTEC Thiland CO. LTD |
|
|
1,498 |
|
|
|
1,108 |
|
|
|
390 |
|
|
|
5,015 |
|
|
|
40 |
|
20
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
₩ |
6,853,318 |
|
|
|
3,885,127 |
|
|
|
2,968,191 |
|
|
|
8,028,269 |
|
|
|
98,714 |
|
POSCO Processing & Service |
|
|
1,061,686 |
|
|
|
367,791 |
|
|
|
693,895 |
|
|
|
2,745,727 |
|
|
|
35,941 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
449,661 |
|
|
|
280,097 |
|
|
|
169,564 |
|
|
|
821,183 |
|
|
|
(5,173 |
) |
POSCO ICT |
|
|
733,968 |
|
|
|
327,728 |
|
|
|
406,240 |
|
|
|
1,050,747 |
|
|
|
33,796 |
|
POSCO Research Institute |
|
|
36,841 |
|
|
|
10,051 |
|
|
|
26,790 |
|
|
|
58,519 |
|
|
|
1,167 |
|
POSMATE (formerly, Seoung Gwang Co., Ltd.) |
|
|
214,286 |
|
|
|
56,247 |
|
|
|
158,039 |
|
|
|
118,489 |
|
|
|
8,501 |
|
POSCO A&C |
|
|
98,502 |
|
|
|
56,578 |
|
|
|
41,924 |
|
|
|
154,053 |
|
|
|
(6,076 |
) |
POSCO Specialty Steel Co., Ltd. |
|
|
1,792,904 |
|
|
|
533,797 |
|
|
|
1,259,107 |
|
|
|
1,316,781 |
|
|
|
31,703 |
|
POSTECH Venture Capital Co., Ltd. |
|
|
118,603 |
|
|
|
11,186 |
|
|
|
107,417 |
|
|
|
11,506 |
|
|
|
3,506 |
|
eNtoB Corporation |
|
|
89,371 |
|
|
|
56,789 |
|
|
|
32,582 |
|
|
|
648,761 |
|
|
|
1,414 |
|
POSCO CHEMTECH |
|
|
588,671 |
|
|
|
139,399 |
|
|
|
449,272 |
|
|
|
1,280,591 |
|
|
|
59,953 |
|
POSCO-Terminal Co., Ltd. |
|
|
134,787 |
|
|
|
9,443 |
|
|
|
125,344 |
|
|
|
104,586 |
|
|
|
22,152 |
|
POSCO M-TECH |
|
|
346,577 |
|
|
|
193,375 |
|
|
|
153,202 |
|
|
|
902,541 |
|
|
|
(10,649 |
) |
POSCO ENERGY CO., LTD. |
|
|
4,022,984 |
|
|
|
2,433,704 |
|
|
|
1,589,280 |
|
|
|
2,901,117 |
|
|
|
143,976 |
|
POSCO TMC Co., Ltd. |
|
|
209,745 |
|
|
|
117,890 |
|
|
|
91,855 |
|
|
|
319,580 |
|
|
|
447 |
|
POSCO NIPPON STEEL RHF JOINT VENTURE.CO., Ltd. |
|
|
139,612 |
|
|
|
92,134 |
|
|
|
47,478 |
|
|
|
56,789 |
|
|
|
2,601 |
|
MegaAsset Co., Ltd. |
|
|
136,387 |
|
|
|
87,750 |
|
|
|
48,637 |
|
|
|
83,809 |
|
|
|
183 |
|
POSCO Engineering CO., Ltd |
|
|
608,624 |
|
|
|
435,380 |
|
|
|
173,244 |
|
|
|
1,013,115 |
|
|
|
10,286 |
|
POSCO AST |
|
|
508,189 |
|
|
|
354,591 |
|
|
|
153,598 |
|
|
|
611,458 |
|
|
|
(3,006 |
) |
POSHIMETAL Co., Ltd. |
|
|
359,240 |
|
|
|
350,158 |
|
|
|
9,082 |
|
|
|
179,550 |
|
|
|
(12,109 |
) |
Poscoene |
|
|
22,447 |
|
|
|
91 |
|
|
|
22,356 |
|
|
|
|
|
|
|
66 |
|
POSFINE Co., Ltd. |
|
|
58,252 |
|
|
|
44,852 |
|
|
|
13,400 |
|
|
|
28,974 |
|
|
|
1,560 |
|
POSCO Humans |
|
|
13,691 |
|
|
|
4,179 |
|
|
|
9,512 |
|
|
|
33,116 |
|
|
|
286 |
|
Mapo Hibroad Parking co., Ltd. |
|
|
1,544 |
|
|
|
300 |
|
|
|
1,244 |
|
|
|
|
|
|
|
(36 |
) |
Steel Processing and Fabricating Center Co., LTD |
|
|
169,437 |
|
|
|
136,488 |
|
|
|
32,949 |
|
|
|
194,018 |
|
|
|
(2,558 |
) |
Plant Engineering service Technology Co., Ltd. |
|
|
6,754 |
|
|
|
2,970 |
|
|
|
3,784 |
|
|
|
10,731 |
|
|
|
1,385 |
|
Busan E&E Co,. Ltd. |
|
|
113,287 |
|
|
|
73,609 |
|
|
|
39,678 |
|
|
|
136,279 |
|
|
|
(1,820 |
) |
POSCO Family Strategy Fund |
|
|
61,033 |
|
|
|
7 |
|
|
|
61,026 |
|
|
|
1,082 |
|
|
|
(5,298 |
) |
POREKA Co., Ltd. |
|
|
19,403 |
|
|
|
15,468 |
|
|
|
3,935 |
|
|
|
23,961 |
|
|
|
69 |
|
Daewoo International Corporation |
|
|
7,739,676 |
|
|
|
5,524,030 |
|
|
|
2,215,646 |
|
|
|
16,601,358 |
|
|
|
132,541 |
|
POSCO LED Co., Ltd. |
|
|
57,561 |
|
|
|
50,419 |
|
|
|
7,142 |
|
|
|
60,693 |
|
|
|
(7,029 |
) |
Pohang Scrap Recycling Distribution Center Co., Ltd. |
|
|
17,072 |
|
|
|
511 |
|
|
|
16,561 |
|
|
|
5,530 |
|
|
|
734 |
|
PSC Energy Global Co., Ltd. |
|
|
96,058 |
|
|
|
|
|
|
|
96,058 |
|
|
|
|
|
|
|
(13,890 |
) |
Suncheon Eco Trans Co., Ltd |
|
|
67,768 |
|
|
|
46,467 |
|
|
|
21,301 |
|
|
|
|
|
|
|
(1,065 |
) |
New Altec Co., Ltd |
|
|
131,244 |
|
|
|
34,473 |
|
|
|
96,771 |
|
|
|
81,318 |
|
|
|
(1,366 |
) |
PONUTech Co., Ltd. |
|
|
117,033 |
|
|
|
80,881 |
|
|
|
36,152 |
|
|
|
56,151 |
|
|
|
(560 |
) |
Tamra Offshore Wind Power Co., Ltd |
|
|
26,728 |
|
|
|
|
|
|
|
26,728 |
|
|
|
|
|
|
|
(12 |
) |
POS-HiAL |
|
|
59,836 |
|
|
|
43,460 |
|
|
|
16,376 |
|
|
|
|
|
|
|
(2,521 |
) |
IT Engineering |
|
|
7,026 |
|
|
|
3,349 |
|
|
|
3,677 |
|
|
|
11,293 |
|
|
|
133 |
|
21
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO America Corporation |
|
₩ |
360,278 |
|
|
|
307,874 |
|
|
|
52,404 |
|
|
|
737,584 |
|
|
|
(126,699 |
) |
POSCO AUSTRALIA PTY LTD |
|
|
971,471 |
|
|
|
328,455 |
|
|
|
643,016 |
|
|
|
117,481 |
|
|
|
74,784 |
|
POSCO Canada Ltd. |
|
|
589,015 |
|
|
|
100,337 |
|
|
|
488,678 |
|
|
|
143,485 |
|
|
|
48,611 |
|
POSCO Asia Co., Ltd. |
|
|
760,306 |
|
|
|
721,090 |
|
|
|
39,216 |
|
|
|
2,861,848 |
|
|
|
3,829 |
|
POSCO-CTPC Co., Ltd. |
|
|
87,914 |
|
|
|
51,514 |
|
|
|
36,400 |
|
|
|
127,558 |
|
|
|
4,526 |
|
POSCO-JKPC Co., Ltd. |
|
|
66,374 |
|
|
|
50,347 |
|
|
|
16,027 |
|
|
|
107,220 |
|
|
|
1,717 |
|
INTERNATIONAL BUSINESS CENTER CORPORATION |
|
|
75,459 |
|
|
|
41,476 |
|
|
|
33,983 |
|
|
|
24,275 |
|
|
|
9,894 |
|
POSCO E&C Vietnam Co., Ltd. |
|
|
263,042 |
|
|
|
214,573 |
|
|
|
48,469 |
|
|
|
363,321 |
|
|
|
25,364 |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
|
1,305,878 |
|
|
|
806,051 |
|
|
|
499,827 |
|
|
|
2,935,626 |
|
|
|
21,467 |
|
POSCO (Guangdong) Steel Co., Ltd. |
|
|
128,859 |
|
|
|
84,435 |
|
|
|
44,424 |
|
|
|
211,606 |
|
|
|
4,715 |
|
POSCO (Thailand) Company Limited |
|
|
119,445 |
|
|
|
76,044 |
|
|
|
43,401 |
|
|
|
220,471 |
|
|
|
1,471 |
|
Myanmar POSCO Steel Co., Ltd |
|
|
19,884 |
|
|
|
3,318 |
|
|
|
16,566 |
|
|
|
14,001 |
|
|
|
932 |
|
POSCO-JOPC Co., Ltd. |
|
|
54,026 |
|
|
|
49,524 |
|
|
|
4,502 |
|
|
|
97,003 |
|
|
|
906 |
|
POSCO Investment Co., Ltd. |
|
|
802,503 |
|
|
|
702,337 |
|
|
|
100,166 |
|
|
|
13,962 |
|
|
|
4,949 |
|
POSCO-MKPC SDN BHD |
|
|
136,957 |
|
|
|
92,539 |
|
|
|
44,418 |
|
|
|
211,330 |
|
|
|
1,058 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
191,829 |
|
|
|
100,902 |
|
|
|
90,927 |
|
|
|
396,564 |
|
|
|
1,783 |
|
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
300,725 |
|
|
|
187,070 |
|
|
|
113,655 |
|
|
|
458,113 |
|
|
|
22,798 |
|
POSCO BIOVENTURES I, L.P. |
|
|
7,255 |
|
|
|
|
|
|
|
7,255 |
|
|
|
|
|
|
|
(206 |
) |
PT. POSNESIA Stainless Steel Industry |
|
|
11,568 |
|
|
|
|
|
|
|
11,568 |
|
|
|
|
|
|
|
(1,340 |
) |
POSEC Hawaii, Inc. |
|
|
314 |
|
|
|
7 |
|
|
|
307 |
|
|
|
|
|
|
|
(38 |
) |
POSCO-China Qingdao Processing Center Co., Ltd. |
|
|
54,609 |
|
|
|
40,042 |
|
|
|
14,567 |
|
|
|
108,054 |
|
|
|
155 |
|
POS-ORE PTY LTD |
|
|
43,442 |
|
|
|
2,642 |
|
|
|
40,800 |
|
|
|
130,819 |
|
|
|
72,845 |
|
POSCO-China Holding Corp. |
|
|
360,809 |
|
|
|
108,315 |
|
|
|
252,494 |
|
|
|
145,469 |
|
|
|
(21,932 |
) |
POSCO JAPAN Co., Ltd. |
|
|
756,571 |
|
|
|
649,824 |
|
|
|
106,747 |
|
|
|
1,379,727 |
|
|
|
11,868 |
|
POS-CD PTY LTD |
|
|
55,347 |
|
|
|
14,354 |
|
|
|
40,993 |
|
|
|
22,178 |
|
|
|
(2,173 |
) |
POS-GC PTY LTD |
|
|
55,150 |
|
|
|
45,074 |
|
|
|
10,076 |
|
|
|
8,411 |
|
|
|
(21,444 |
) |
POSCO-India Private Limited |
|
|
115,183 |
|
|
|
311 |
|
|
|
114,872 |
|
|
|
|
|
|
|
620 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
143,286 |
|
|
|
139,149 |
|
|
|
4,137 |
|
|
|
266,832 |
|
|
|
(9,619 |
) |
POSCO-JEPC Co., Ltd. |
|
|
165,310 |
|
|
|
147,355 |
|
|
|
17,955 |
|
|
|
299,848 |
|
|
|
1,780 |
|
POSCO-CFPC Co., Ltd. |
|
|
180,275 |
|
|
|
136,369 |
|
|
|
43,906 |
|
|
|
619,308 |
|
|
|
1,962 |
|
POSCO E&C CHINA Co., Ltd. |
|
|
307,625 |
|
|
|
250,899 |
|
|
|
56,726 |
|
|
|
238,999 |
|
|
|
12,733 |
|
POSCO MPPC S.A. de C.V. |
|
|
198,465 |
|
|
|
168,548 |
|
|
|
29,917 |
|
|
|
352,952 |
|
|
|
(3,433 |
) |
Zhangjigang Pohang Port Co., Ltd. |
|
|
22,495 |
|
|
|
6,736 |
|
|
|
15,759 |
|
|
|
6,712 |
|
|
|
768 |
|
Qingdao Pos-metal Co., Ltd. |
|
|
5,947 |
|
|
|
6,481 |
|
|
|
(534 |
) |
|
|
50,774 |
|
|
|
(1,376 |
) |
POSCO-VIETNAM Co., Ltd. |
|
|
541,348 |
|
|
|
509,293 |
|
|
|
32,055 |
|
|
|
714,841 |
|
|
|
(503 |
) |
POSCO MEXICO S.A. DE C.V. |
|
|
794,853 |
|
|
|
594,916 |
|
|
|
199,937 |
|
|
|
359,422 |
|
|
|
(32,287 |
) |
POSCO India Delhi Steel Processing Centre Private Limited |
|
|
91,704 |
|
|
|
83,949 |
|
|
|
7,755 |
|
|
|
145,625 |
|
|
|
(9,685 |
) |
POSCO-Poland Wroclaw Processing Center Sp. z o. o. |
|
|
41,003 |
|
|
|
20,860 |
|
|
|
20,143 |
|
|
|
66,597 |
|
|
|
978 |
|
POS-NP PTY LTD |
|
|
56,343 |
|
|
|
25,704 |
|
|
|
30,639 |
|
|
|
21,429 |
|
|
|
(364 |
) |
POSCO-Vietnam Processing Center Co., Ltd. |
|
|
84,133 |
|
|
|
58,435 |
|
|
|
25,698 |
|
|
|
132,608 |
|
|
|
1,299 |
|
POSCO (Chongqing) Automotive Processing Center Co., Ltd. |
|
|
67,049 |
|
|
|
52,512 |
|
|
|
14,537 |
|
|
|
115,253 |
|
|
|
5,634 |
|
SUZHOU POSCO-CORE TECHNOLOGY CO., LTD. |
|
|
60,707 |
|
|
|
36,249 |
|
|
|
24,458 |
|
|
|
86,400 |
|
|
|
324 |
|
POSCO-Malaysia SDN. BHD. |
|
|
82,648 |
|
|
|
104,940 |
|
|
|
(22,292 |
) |
|
|
124,556 |
|
|
|
(2,730 |
) |
22
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POS-Minerals Corporation |
|
₩ |
217,664 |
|
|
|
119,701 |
|
|
|
97,963 |
|
|
|
|
|
|
|
(5,815 |
) |
POSCO (Wuhu) Automotive Processing Center Co., Ltd. |
|
|
69,625 |
|
|
|
44,536 |
|
|
|
25,089 |
|
|
|
113,011 |
|
|
|
2,758 |
|
POSCO Engineering and Construction India Private Limited |
|
|
18,098 |
|
|
|
11,083 |
|
|
|
7,015 |
|
|
|
76,805 |
|
|
|
1,034 |
|
POSCO E&C SMART S DE RL DE CV |
|
|
20,993 |
|
|
|
17,054 |
|
|
|
3,939 |
|
|
|
21,562 |
|
|
|
2,194 |
|
POSCO Philippine Manila Processing Center, Inc. |
|
|
29,045 |
|
|
|
19,037 |
|
|
|
10,008 |
|
|
|
32,582 |
|
|
|
726 |
|
POSCO Gulf SFC LLC |
|
|
53,831 |
|
|
|
48,441 |
|
|
|
5,390 |
|
|
|
23,585 |
|
|
|
(1,951 |
) |
Dalian POSCO ICT-DONGFANG Engineering Co., Ltd. |
|
|
7,630 |
|
|
|
5,037 |
|
|
|
2,593 |
|
|
|
7,564 |
|
|
|
318 |
|
SANPU TRADING Co., Ltd. |
|
|
1,806 |
|
|
|
3 |
|
|
|
1,803 |
|
|
|
70 |
|
|
|
24 |
|
Zhangjiagang BLZ Pohang International Trading |
|
|
10,036 |
|
|
|
5,050 |
|
|
|
4,986 |
|
|
|
52,649 |
|
|
|
187 |
|
POSCO MEXICO HUMAN TECH S.A. de C.V. |
|
|
1,035 |
|
|
|
908 |
|
|
|
127 |
|
|
|
9,267 |
|
|
|
101 |
|
POSCO MESDC S.A. DE C.V. |
|
|
12,574 |
|
|
|
491 |
|
|
|
12,083 |
|
|
|
4,784 |
|
|
|
203 |
|
POSCO ICT-China |
|
|
2,566 |
|
|
|
1,742 |
|
|
|
824 |
|
|
|
6,957 |
|
|
|
163 |
|
DWEMEX, S.A. DE. C.V. |
|
|
183 |
|
|
|
19 |
|
|
|
164 |
|
|
|
|
|
|
|
(12 |
) |
POSCO MPC Servicios S.A. de C.V. |
|
|
1,152 |
|
|
|
875 |
|
|
|
277 |
|
|
|
6,591 |
|
|
|
57 |
|
POSCO-Uruguay S.A |
|
|
22,805 |
|
|
|
120 |
|
|
|
22,685 |
|
|
|
1 |
|
|
|
(891 |
) |
Pos-Sea Pte Ltd |
|
|
12,724 |
|
|
|
9,855 |
|
|
|
2,869 |
|
|
|
122,439 |
|
|
|
675 |
|
POSCO Europe Steel Distribution Center |
|
|
7,564 |
|
|
|
1,205 |
|
|
|
6,359 |
|
|
|
13,769 |
|
|
|
458 |
|
POSCO ENGINEERING (THAILAND) CO., LTD. |
|
|
21,082 |
|
|
|
20,357 |
|
|
|
725 |
|
|
|
23,492 |
|
|
|
741 |
|
VECTUS LIMITED |
|
|
954 |
|
|
|
15,565 |
|
|
|
(14,611 |
) |
|
|
5,240 |
|
|
|
(5,155 |
) |
POSCO VST CO., LTD. |
|
|
399,242 |
|
|
|
371,409 |
|
|
|
27,833 |
|
|
|
377,478 |
|
|
|
(24,136 |
) |
POSCO Maharashtra Steel Private Limited |
|
|
942,836 |
|
|
|
832,247 |
|
|
|
110,589 |
|
|
|
224,385 |
|
|
|
(111,675 |
) |
POSCO India Chennai Steel Processing Centre Pvt. Ltd. |
|
|
93,623 |
|
|
|
89,043 |
|
|
|
4,580 |
|
|
|
183,304 |
|
|
|
(4,247 |
) |
POSCO TNPC Otomotiv Celik San. Ve Tic. A.S |
|
|
41,597 |
|
|
|
34,336 |
|
|
|
7,261 |
|
|
|
64,185 |
|
|
|
(1,923 |
) |
POSCO Vietnam Ha Noi Processing Center Co., Ltd. |
|
|
56,855 |
|
|
|
50,358 |
|
|
|
6,497 |
|
|
|
110,108 |
|
|
|
995 |
|
POSCO(Liaoning) Automotive Processing Center Co., Ltd. |
|
|
73,083 |
|
|
|
46,710 |
|
|
|
26,373 |
|
|
|
113,971 |
|
|
|
3,297 |
|
POSCO-Indonesia Jakarta Processing Center |
|
|
106,838 |
|
|
|
89,768 |
|
|
|
17,070 |
|
|
|
80,534 |
|
|
|
(5,110 |
) |
POSCO E&C VENEZUELA C.A. |
|
|
126 |
|
|
|
|
|
|
|
126 |
|
|
|
|
|
|
|
|
|
Motta Resources Indonesia |
|
|
4,264 |
|
|
|
18,259 |
|
|
|
(13,995 |
) |
|
|
|
|
|
|
(5,522 |
) |
POSCO TMC INDIA PRIVATE LIMITED |
|
|
9,095 |
|
|
|
7,211 |
|
|
|
1,884 |
|
|
|
18,376 |
|
|
|
(29 |
) |
POSCO America Alabama Processing Center Co., Ltd. |
|
|
46,816 |
|
|
|
34,958 |
|
|
|
11,858 |
|
|
|
107,780 |
|
|
|
339 |
|
PT PEN INDONESIA |
|
|
4,681 |
|
|
|
3,707 |
|
|
|
974 |
|
|
|
20,037 |
|
|
|
(1,289 |
) |
POSCO (Yantai) Automotive Processing Center Co., Ltd. |
|
|
45,863 |
|
|
|
27,874 |
|
|
|
17,989 |
|
|
|
64,784 |
|
|
|
2,124 |
|
POSCO India Steel Distribution Center Private Ltd. |
|
|
6,063 |
|
|
|
4,413 |
|
|
|
1,650 |
|
|
|
5,526 |
|
|
|
(144 |
) |
POSCO China Dalian Plate Processing Center Co., Ltd. |
|
|
88,337 |
|
|
|
67,680 |
|
|
|
20,657 |
|
|
|
29,843 |
|
|
|
(10,876 |
) |
POSCO-South Asia Company Limited |
|
|
13,061 |
|
|
|
235 |
|
|
|
12,826 |
|
|
|
10,214 |
|
|
|
1,049 |
|
POSCO SS-VINA |
|
|
505,785 |
|
|
|
264,716 |
|
|
|
241,069 |
|
|
|
|
|
|
|
(1,586 |
) |
POSCO WA PTY LTD |
|
|
317,250 |
|
|
|
38 |
|
|
|
317,212 |
|
|
|
|
|
|
|
(6,338 |
) |
POSCO Engineering and Construction - UZ |
|
|
3,964 |
|
|
|
3,039 |
|
|
|
925 |
|
|
|
2,690 |
|
|
|
406 |
|
POSCO AUSTRALIA GP PTY LIMITED |
|
|
38,786 |
|
|
|
4 |
|
|
|
38,782 |
|
|
|
|
|
|
|
(18,523 |
) |
POSCO YongXin Rare Earth Metal Co., Ltd. |
|
|
23,925 |
|
|
|
33,715 |
|
|
|
(9,790 |
) |
|
|
3,962 |
|
|
|
(9,194 |
) |
23
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daewoo International (America) Corp. |
|
₩ |
417,955 |
|
|
|
372,011 |
|
|
|
45,944 |
|
|
|
1,046,283 |
|
|
|
2,788 |
|
Daewoo International (Deutschland) GmbH. |
|
|
148,268 |
|
|
|
137,035 |
|
|
|
11,233 |
|
|
|
308,507 |
|
|
|
772 |
|
Daewoo International Japan Corp. |
|
|
190,524 |
|
|
|
184,329 |
|
|
|
6,195 |
|
|
|
588,810 |
|
|
|
240 |
|
DAEWOO INTERNATIONAL SINGAPORE PTE. LTD. |
|
|
125,927 |
|
|
|
122,160 |
|
|
|
3,767 |
|
|
|
659,805 |
|
|
|
(516 |
) |
Daewoo Italia S.r.l. |
|
|
59,839 |
|
|
|
54,973 |
|
|
|
4,866 |
|
|
|
277,455 |
|
|
|
959 |
|
Daewoo (China) Co., Ltd. |
|
|
84,004 |
|
|
|
36,556 |
|
|
|
47,448 |
|
|
|
250,006 |
|
|
|
244 |
|
DAEWOO TEXTILE FERGANA LLC |
|
|
85,758 |
|
|
|
57,733 |
|
|
|
28,025 |
|
|
|
117,548 |
|
|
|
8,237 |
|
DAEWOO TEXTILE BUKHARA LLC |
|
|
51,071 |
|
|
|
33,520 |
|
|
|
17,551 |
|
|
|
47,896 |
|
|
|
3,695 |
|
DAEWOO INTERNATIONAL AUSTRALIA HOLDINGS PTY LTD |
|
|
134,238 |
|
|
|
27,044 |
|
|
|
107,194 |
|
|
|
21,629 |
|
|
|
(1,525 |
) |
Daewoo Paper Manufacturing Co., Ltd. |
|
|
69,020 |
|
|
|
72,745 |
|
|
|
(3,725 |
) |
|
|
61,163 |
|
|
|
(4,052 |
) |
Tianjin Daewoo Paper Manufacturing Co., Ltd. |
|
|
13,916 |
|
|
|
31,505 |
|
|
|
(17,589 |
) |
|
|
|
|
|
|
|
|
POSCO MAURITIUS LIMITED |
|
|
24,071 |
|
|
|
5 |
|
|
|
24,066 |
|
|
|
|
|
|
|
(22 |
) |
PT. KRAKATAU POSCO |
|
|
3,410,502 |
|
|
|
2,437,868 |
|
|
|
972,634 |
|
|
|
|
|
|
|
(41,921 |
) |
Myanmar Daewoo Limited |
|
|
181 |
|
|
|
8 |
|
|
|
173 |
|
|
|
1,075 |
|
|
|
564 |
|
DAEWOO INTERNATIONAL MEXICO S.A. DE C.V. |
|
|
46,695 |
|
|
|
40,563 |
|
|
|
6,132 |
|
|
|
170,951 |
|
|
|
1,098 |
|
Daewoo International Guangzhou Corp. |
|
|
9,668 |
|
|
|
9,077 |
|
|
|
591 |
|
|
|
54,403 |
|
|
|
(3,718 |
) |
POSCO (Zhangjiagang) STS Processing Center Co., Ltd |
|
|
63,729 |
|
|
|
50,653 |
|
|
|
13,076 |
|
|
|
350,000 |
|
|
|
743 |
|
Daewoo International (M) SDN BHD |
|
|
28,161 |
|
|
|
25,865 |
|
|
|
2,296 |
|
|
|
87,881 |
|
|
|
61 |
|
Daewoo International SHANGHAI CO., LTD. |
|
|
66,677 |
|
|
|
58,754 |
|
|
|
7,923 |
|
|
|
44,490 |
|
|
|
73 |
|
PGSF, L.P. |
|
|
7,464 |
|
|
|
2 |
|
|
|
7,462 |
|
|
|
|
|
|
|
1,948 |
|
Xenesys Inc. |
|
|
7,996 |
|
|
|
2,337 |
|
|
|
5,659 |
|
|
|
3,877 |
|
|
|
(1,558 |
) |
Daewoo International INDIA Private Ltd. |
|
|
4,771 |
|
|
|
3,008 |
|
|
|
1,763 |
|
|
|
18,805 |
|
|
|
43 |
|
TECHREN Solar, LLC |
|
|
1,373 |
|
|
|
528 |
|
|
|
845 |
|
|
|
|
|
|
|
(8,531 |
) |
PT. POSCO E&C INDONESIA |
|
|
54,139 |
|
|
|
44,327 |
|
|
|
9,812 |
|
|
|
217,879 |
|
|
|
17,145 |
|
HUME COAL PTY LTD |
|
|
40,634 |
|
|
|
259 |
|
|
|
40,375 |
|
|
|
110 |
|
|
|
(282 |
) |
POSCO FOUNDATION |
|
|
161 |
|
|
|
|
|
|
|
161 |
|
|
|
|
|
|
|
(1 |
) |
EPC EQUITIES LLP |
|
|
59,500 |
|
|
|
60,378 |
|
|
|
(878 |
) |
|
|
(1,592 |
) |
|
|
516 |
|
SANTOS CMI CONSTRUCTION TRADING LLP |
|
|
35,562 |
|
|
|
37,836 |
|
|
|
(2,274 |
) |
|
|
|
|
|
|
(11,991 |
) |
SANTOS CMI INC. USA |
|
|
28,780 |
|
|
|
27,425 |
|
|
|
1,355 |
|
|
|
36,385 |
|
|
|
8,777 |
|
SANTOS CMI ENGENHARIA E CONSTRUCOES LTDA |
|
|
12,997 |
|
|
|
17,017 |
|
|
|
(4,020 |
) |
|
|
15,907 |
|
|
|
3,474 |
|
SANTOS CMI PERU S.A. |
|
|
6,590 |
|
|
|
30,761 |
|
|
|
(24,171 |
) |
|
|
13,187 |
|
|
|
(16,510 |
) |
SANTOS CMI CONSTRUCCIONES S.A. |
|
|
26 |
|
|
|
14 |
|
|
|
12 |
|
|
|
17 |
|
|
|
3 |
|
GENTECH INTERNATIONAL INC. |
|
|
981 |
|
|
|
323 |
|
|
|
658 |
|
|
|
1,901 |
|
|
|
293 |
|
EPC INVESTMENTS C.V. |
|
|
|
|
|
|
24 |
|
|
|
(24 |
) |
|
|
|
|
|
|
(11 |
) |
SANTOSCMI S.A. |
|
|
39,513 |
|
|
|
24,918 |
|
|
|
14,595 |
|
|
|
87,597 |
|
|
|
907 |
|
SANTOSCMI CONSTRUCCIONES DE CHILE S.A. |
|
|
6,159 |
|
|
|
270 |
|
|
|
5,889 |
|
|
|
1,833 |
|
|
|
191 |
|
S&K -SANTOSCMI S.A. DE C.V. |
|
|
55 |
|
|
|
169 |
|
|
|
(114 |
) |
|
|
468 |
|
|
|
(54 |
) |
COMPANIADEAUTOMATIZACION& CONTROL, GENESYS S.A. |
|
|
10,872 |
|
|
|
7,530 |
|
|
|
3,342 |
|
|
|
19,350 |
|
|
|
754 |
|
VAUTIDAMERICAS S.A. |
|
|
4,559 |
|
|
|
2,757 |
|
|
|
1,802 |
|
|
|
2,020 |
|
|
|
(839 |
) |
POSCO ASSAN TST STEEL INDUSTRY |
|
|
622,336 |
|
|
|
527,955 |
|
|
|
94,381 |
|
|
|
122,071 |
|
|
|
(51,312 |
) |
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
|
146,186 |
|
|
|
168,589 |
|
|
|
(22,403 |
) |
|
|
|
|
|
|
1,881 |
|
POSCO ENGINEERING & CONSTRUCTION DO BRAZIL LTDA. |
|
|
261,738 |
|
|
|
234,275 |
|
|
|
27,463 |
|
|
|
122,020 |
|
|
|
8,683 |
|
POSCO Electrical Steel India Private Limited |
|
|
141,462 |
|
|
|
109,955 |
|
|
|
31,507 |
|
|
|
1,769 |
|
|
|
(12,645 |
) |
Daewoo International Cameroon S.A. |
|
|
3,060 |
|
|
|
36 |
|
|
|
3,024 |
|
|
|
|
|
|
|
|
|
24
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAESAN (CAMBODIA) Co., Ltd. |
|
₩ |
27,556 |
|
|
|
32,635 |
|
|
|
(5,079 |
) |
|
|
|
|
|
|
(24 |
) |
Brazil Sao Paulo Steel Processing Center |
|
|
65,191 |
|
|
|
58,010 |
|
|
|
7,181 |
|
|
|
32,155 |
|
|
|
(7,930 |
) |
POSCO (Dalian) IT Center Development Co., Ltd. |
|
|
235,918 |
|
|
|
99,127 |
|
|
|
136,791 |
|
|
|
|
|
|
|
(3,174 |
) |
PT. POSCO RESOURCES INDONESIA |
|
|
1,089 |
|
|
|
60 |
|
|
|
1,029 |
|
|
|
|
|
|
|
(1,024 |
) |
PT. POSCO ICT INDONESIA |
|
|
9,106 |
|
|
|
8,674 |
|
|
|
432 |
|
|
|
24,975 |
|
|
|
116 |
|
PT. POSCO MTECH INDONESIA |
|
|
15,502 |
|
|
|
12,477 |
|
|
|
3,025 |
|
|
|
3,882 |
|
|
|
(2,207 |
) |
PT. KRAKATAU POSCO ENERGY |
|
|
275,011 |
|
|
|
189,242 |
|
|
|
85,769 |
|
|
|
|
|
|
|
(945 |
) |
POSCO RUS LLC |
|
|
17,301 |
|
|
|
14,256 |
|
|
|
3,045 |
|
|
|
2,052 |
|
|
|
(702 |
) |
POSCO Thainox Public Company Limited |
|
|
398,449 |
|
|
|
114,365 |
|
|
|
284,084 |
|
|
|
403,382 |
|
|
|
(10,166 |
) |
DAEWOO INTERNATIONAL SHANGHAI WAIGAOQIAO CO., LTD. |
|
|
26,123 |
|
|
|
25,310 |
|
|
|
813 |
|
|
|
109,757 |
|
|
|
43 |
|
PT. Bio Inti Agrindo |
|
|
48,986 |
|
|
|
33,525 |
|
|
|
15,461 |
|
|
|
880 |
|
|
|
399 |
|
POSCO ENGINEERING AND CONSTRUCTION AUSTRALIA PTY LTD |
|
|
5,285 |
|
|
|
3,270 |
|
|
|
2,015 |
|
|
|
19,369 |
|
|
|
(3,567 |
) |
POSCO-TISCO (JILIN) PROCESSING CENTER Co., Ltd. |
|
|
72,832 |
|
|
|
56,324 |
|
|
|
16,508 |
|
|
|
71,052 |
|
|
|
(790 |
) |
Hunchun Posco Hyundai International Logistics Complex Development Co., Ltd |
|
|
58,355 |
|
|
|
26 |
|
|
|
58,329 |
|
|
|
|
|
|
|
369 |
|
USA-SRDC |
|
|
411 |
|
|
|
5 |
|
|
|
406 |
|
|
|
|
|
|
|
140 |
|
Daewoo International Vietnam Co., Ltd. |
|
|
4,031 |
|
|
|
123 |
|
|
|
3,908 |
|
|
|
3,537 |
|
|
|
(271 |
) |
PT.Krakatau Posco Chemtech Calcination |
|
|
53,317 |
|
|
|
32,970 |
|
|
|
20,347 |
|
|
|
107 |
|
|
|
(1,694 |
) |
POSCO AFRICA (PROPRIETARY) LIMITED |
|
|
44,885 |
|
|
|
31 |
|
|
|
44,854 |
|
|
|
129 |
|
|
|
5,592 |
|
EPC INGENIERIA & SERVICIOS DE COSTA RICA SA |
|
|
5,101 |
|
|
|
1,266 |
|
|
|
3,835 |
|
|
|
6,519 |
|
|
|
4,016 |
|
POSCO ICT BRASIL |
|
|
3,944 |
|
|
|
4,371 |
|
|
|
(427 |
) |
|
|
829 |
|
|
|
(983 |
) |
LA-SRDC |
|
|
1,373 |
|
|
|
725 |
|
|
|
648 |
|
|
|
6,276 |
|
|
|
144 |
|
DONG FANG JIN HONG |
|
|
365,795 |
|
|
|
194,786 |
|
|
|
171,009 |
|
|
|
|
|
|
|
(1,856 |
) |
PRODUCTOS OFERTAS SISTEMAS Y COMERCIALIZADORA ORIENTAL S DE RL DE CV |
|
|
127 |
|
|
|
125 |
|
|
|
2 |
|
|
|
531 |
|
|
|
|
|
POSCO AMERICA COMERCIALIZADORA S DE RL DE CV |
|
|
13,000 |
|
|
|
14,424 |
|
|
|
(1,424 |
) |
|
|
15,401 |
|
|
|
(1,160 |
) |
POSCO (Guangdong) Automotive Steel Co., Ltd. |
|
|
402,115 |
|
|
|
277,747 |
|
|
|
124,368 |
|
|
|
141,877 |
|
|
|
(27,026 |
) |
POSCO MAPC SA DE CV |
|
|
40,278 |
|
|
|
20,320 |
|
|
|
19,958 |
|
|
|
14,492 |
|
|
|
(1,186 |
) |
POSCO-Mory-Maruyasu PIPE |
|
|
7,879 |
|
|
|
3,612 |
|
|
|
4,267 |
|
|
|
9 |
|
|
|
(371 |
) |
PT KRAKATAU BLUE WATER |
|
|
592 |
|
|
|
285 |
|
|
|
307 |
|
|
|
337 |
|
|
|
20 |
|
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
|
|
14,853 |
|
|
|
6,395 |
|
|
|
8,458 |
|
|
|
|
|
|
|
(768 |
) |
Myanmar Daewoo International Corporation |
|
|
5,709 |
|
|
|
4 |
|
|
|
5,705 |
|
|
|
629 |
|
|
|
447 |
|
POSCO-Italy Processing Center |
|
|
53,683 |
|
|
|
47,700 |
|
|
|
5,983 |
|
|
|
6,541 |
|
|
|
(1,732 |
) |
DAEWOO E&P CANADA CORPORATION |
|
|
16,584 |
|
|
|
8,606 |
|
|
|
7,978 |
|
|
|
912 |
|
|
|
215 |
|
Yingkou Puxiang Trade Co.,Ltd. |
|
|
421 |
|
|
|
73 |
|
|
|
348 |
|
|
|
473 |
|
|
|
60 |
|
Myanmar POSCO C&C Company, Limited. |
|
|
6,611 |
|
|
|
279 |
|
|
|
6,332 |
|
|
|
|
|
|
|
|
|
POSCO ICT VIETNAM |
|
|
1,659 |
|
|
|
982 |
|
|
|
677 |
|
|
|
498 |
|
|
|
194 |
|
Daewoo Global Development. Pte., Ltd |
|
|
26,378 |
|
|
|
202 |
|
|
|
26,176 |
|
|
|
|
|
|
|
(214 |
) |
Myanmar POSCO Engineering & Construction Company, Limited. |
|
|
1,052 |
|
|
|
|
|
|
|
1,052 |
|
|
|
|
|
|
|
(3 |
) |
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
|
5,874 |
|
|
|
|
|
|
|
5,874 |
|
|
|
|
|
|
|
|
|
25
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
Details of non-controlling interest as of December 31, 2014 and 2013 are as follows : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Daewoo International Corporation |
|
|
PT. KRAKATAU POSCO |
|
|
POSCO CHEMTECH |
|
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
|
POSCO ENERGY Co., Ltd. |
|
|
Others |
|
|
Total |
|
Current assets |
|
₩ |
5,177,495 |
|
|
|
645,598 |
|
|
|
360,673 |
|
|
|
4,501,969 |
|
|
|
501,219 |
|
|
|
12,781,184 |
|
|
|
23,968,138 |
|
Non-current assets |
|
|
6,028,358 |
|
|
|
3,303,632 |
|
|
|
251,206 |
|
|
|
1,322,767 |
|
|
|
3,393,917 |
|
|
|
10,135,827 |
|
|
|
24,435,707 |
|
Current liabilities |
|
|
(5,046,468 |
) |
|
|
(988,132 |
) |
|
|
(131,389 |
) |
|
|
(2,996,618 |
) |
|
|
(546,791 |
) |
|
|
(11,493,074 |
) |
|
|
(21,202,472 |
) |
Non-current liabilities |
|
|
(1,807,698 |
) |
|
|
(2,118,519 |
) |
|
|
(7,150 |
) |
|
|
(754,696 |
) |
|
|
(2,513,129 |
) |
|
|
(3,681,307 |
) |
|
|
(10,882,499 |
) |
Equity |
|
|
4,351,687 |
|
|
|
842,579 |
|
|
|
473,340 |
|
|
|
2,073,422 |
|
|
|
835,216 |
|
|
|
7,742,630 |
|
|
|
16,318,874 |
|
Non-controlling interests |
|
|
1,727,078 |
|
|
|
252,773 |
|
|
|
189,336 |
|
|
|
217,182 |
|
|
|
91,668 |
|
|
|
1,677,400 |
|
|
|
4,155,437 |
|
Sales |
|
|
19,938,711 |
|
|
|
1,129,977 |
|
|
|
1,331,527 |
|
|
|
7,514,710 |
|
|
|
2,533,673 |
|
|
|
28,738,206 |
|
|
|
61,186,804 |
|
Profit for the period |
|
|
83,167 |
|
|
|
(232,503 |
) |
|
|
68,196 |
|
|
|
42,643 |
|
|
|
21,100 |
|
|
|
(159,066 |
) |
|
|
(176,463 |
) |
Profit (loss) attributable to non-controlling interests |
|
|
33,007 |
|
|
|
(69,751 |
) |
|
|
27,278 |
|
|
|
4,467 |
|
|
|
2,316 |
|
|
|
(62,302 |
) |
|
|
(64,985 |
) |
Cash flows from operating activities |
|
|
(149,695 |
) |
|
|
(27,383 |
) |
|
|
20,676 |
|
|
|
24,592 |
|
|
|
36,346 |
|
|
|
(121,697 |
) |
|
|
(217,161 |
) |
Cash flows from investing activities |
|
|
(167,573 |
) |
|
|
(74,454 |
) |
|
|
(28,349 |
) |
|
|
(33,755 |
) |
|
|
(117,154 |
) |
|
|
(230,954 |
) |
|
|
(652,239 |
) |
Cash flows from financing activities (before dividends to non-controlling interest) |
|
|
336,114 |
|
|
|
75,680 |
|
|
|
|
|
|
|
(15,162 |
) |
|
|
83,014 |
|
|
|
406,904 |
|
|
|
886,550 |
|
Dividend to non-controlling interest |
|
|
(13,558 |
) |
|
|
|
|
|
|
(3,544 |
) |
|
|
(1,923 |
) |
|
|
(2,648 |
) |
|
|
(5,748 |
) |
|
|
(27,421 |
) |
Effect of exchange rate fluctuation on cash held |
|
|
(46 |
) |
|
|
134 |
|
|
|
43 |
|
|
|
(8 |
) |
|
|
|
|
|
|
3,636 |
|
|
|
3,759 |
|
Net increase in cash and cash equivalents |
|
|
5,242 |
|
|
|
(26,023 |
) |
|
|
(11,174 |
) |
|
|
(26,256 |
) |
|
|
(442 |
) |
|
|
52,141 |
|
|
|
(6,512 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Daewoo International Corporation |
|
|
PT. KRAKATAU POSCO |
|
|
POSCO Specialty Steel Co., Ltd. |
|
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
|
POSCO ENERGY Co., Ltd. |
|
|
Others |
|
|
Total |
|
Current assets |
|
₩ |
4,313,678 |
|
|
|
427,029 |
|
|
|
633,583 |
|
|
|
5,071,247 |
|
|
|
697,234 |
|
|
|
9,773,753 |
|
|
|
20,916,524 |
|
Non-current assets |
|
|
6,110,630 |
|
|
|
3,019,191 |
|
|
|
879,536 |
|
|
|
1,062,166 |
|
|
|
3,115,599 |
|
|
|
8,538,325 |
|
|
|
22,725,447 |
|
Current liabilities |
|
|
(4,258,245 |
) |
|
|
(611,434 |
) |
|
|
(269,749 |
) |
|
|
(3,515,803 |
) |
|
|
(674,370 |
) |
|
|
(8,990,091 |
) |
|
|
(18,319,692 |
) |
Non-current liabilities |
|
|
(1,835,835 |
) |
|
|
(1,862,078 |
) |
|
|
(264,596 |
) |
|
|
(478,070 |
) |
|
|
(1,760,156 |
) |
|
|
(3,038,981 |
) |
|
|
(9,239,716 |
) |
Equity |
|
|
4,330,228 |
|
|
|
972,708 |
|
|
|
978,774 |
|
|
|
2,139,540 |
|
|
|
1,378,307 |
|
|
|
6,283,006 |
|
|
|
16,082,563 |
|
Non-controlling interests |
|
|
1,718,562 |
|
|
|
291,812 |
|
|
|
273,143 |
|
|
|
224,108 |
|
|
|
151,274 |
|
|
|
1,451,734 |
|
|
|
4,110,633 |
|
Sales |
|
|
16,838,559 |
|
|
|
|
|
|
|
1,316,781 |
|
|
|
8,036,752 |
|
|
|
2,901,117 |
|
|
|
25,405,268 |
|
|
|
54,498,477 |
|
Profit for the period |
|
|
42,312 |
|
|
|
(41,844 |
) |
|
|
31,749 |
|
|
|
144,888 |
|
|
|
146,419 |
|
|
|
(143,940 |
) |
|
|
179,584 |
|
Profit (loss) attributable to non-controlling interests |
|
|
16,793 |
|
|
|
(12,553 |
) |
|
|
8,860 |
|
|
|
15,176 |
|
|
|
16,070 |
|
|
|
(15,634 |
) |
|
|
28,712 |
|
Cash flows from operating activities |
|
|
(67,785 |
) |
|
|
(50,209 |
) |
|
|
18,721 |
|
|
|
40,815 |
|
|
|
32,174 |
|
|
|
23,342 |
|
|
|
(2,942 |
) |
Cash flows from investing activities |
|
|
(123,609 |
) |
|
|
(405,186 |
) |
|
|
(54,152 |
) |
|
|
(15,888 |
) |
|
|
(94,741 |
) |
|
|
(337,253 |
) |
|
|
(1,030,829 |
) |
Cash flows from financing activities (before dividends to non-controlling interest) |
|
|
156,326 |
|
|
|
467,617 |
|
|
|
80,213 |
|
|
|
(29,059 |
) |
|
|
62,273 |
|
|
|
375,947 |
|
|
|
1,113,317 |
|
Dividend to non-controlling interest |
|
|
(13,558 |
) |
|
|
|
|
|
|
(2,217 |
) |
|
|
(2,885 |
) |
|
|
|
|
|
|
(9,125 |
) |
|
|
(27,785 |
) |
Effect of exchange rate fluctuation on cash held |
|
|
(114 |
) |
|
|
(560 |
) |
|
|
|
|
|
|
(360 |
) |
|
|
|
|
|
|
(9,036 |
) |
|
|
(10,070 |
) |
Net increase in cash and cash equivalents |
|
|
(48,740 |
) |
|
|
11,662 |
|
|
|
42,565 |
|
|
|
(7,377 |
) |
|
|
(294 |
) |
|
|
43,875 |
|
|
|
41,691 |
|
26
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(e) |
Details of associates and joint ventures |
Details of associates as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
Investee |
|
Category of Business |
|
2014 |
|
|
2013 |
|
|
Region |
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natual Resources PEF |
|
Investment in new technologies |
|
|
28.48 |
|
|
|
27.23 |
|
|
Seoul |
SNNC |
|
Raw material manufacturing and sales |
|
|
49.00 |
|
|
|
49.00 |
|
|
Gwangyang |
QSONE Co., Ltd. |
|
Real estate rental and facility management |
|
|
50.00 |
|
|
|
50.00 |
|
|
Seoul |
Incheon-Gimpo Expressway Co., Ltd. |
|
Construction |
|
|
25.76 |
|
|
|
29.94 |
|
|
Anyang |
BLUE OCEAN Private Equity Fund |
|
Private equity financial |
|
|
27.52 |
|
|
|
27.52 |
|
|
Seoul |
UITrans LRT Co., Ltd. |
|
Transporting |
|
|
38.19 |
|
|
|
38.19 |
|
|
Seoul |
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
Real estate development |
|
|
25.10 |
|
|
|
25.10 |
|
|
Chungju |
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund(* 1) |
|
Investment in new technologies |
|
|
12.50 |
|
|
|
12.50 |
|
|
Seoul |
KONES, Corp. |
|
Technical service |
|
|
41.67 |
|
|
|
41.67 |
|
|
Gyeongju |
Gunggi Green Energy(* 1) |
|
Electricity generation |
|
|
19.00 |
|
|
|
19.00 |
|
|
Hwaseong |
Gale International Korea, LLC |
|
Real estate rental |
|
|
29.90 |
|
|
|
29.90 |
|
|
Seoul |
Pohang Techno Valley PFV Corporation(*2) |
|
Real estate development |
|
|
54.99 |
|
|
|
54.99 |
|
|
Pohang |
Pohang Special Welding Co., Ltd. |
|
Welding material and tools manufacturing and sales |
|
|
50.00 |
|
|
|
50.00 |
|
|
Pohang |
KC Chemicals(* 1) |
|
Machinery manufacturing |
|
|
19.00 |
|
|
|
19.00 |
|
|
Hwaseong |
Green Jang Ryang Co. Ltd |
|
Sewerage treatment |
|
|
25.00 |
|
|
|
25.00 |
|
|
Pohang |
DAEHO GLOBAL MANAGEMENT CO., LTD. |
|
Investment advisory service |
|
|
35.82 |
|
|
|
35.82 |
|
|
Pohang |
Daewoo Public Car Sales (Gw angju) CO., Ltd |
|
Leasing services |
|
|
50.00 |
|
|
|
50.00 |
|
|
Gwangju |
Clean Gimpo Co., Ltd. |
|
Construction |
|
|
29.58 |
|
|
|
29.58 |
|
|
Gimpo |
Pajoo & Viro Co., Ltd. |
|
Construction |
|
|
40.00 |
|
|
|
40.00 |
|
|
Paju |
Posco-IDV Growth Ladder IP Fund(* 1,3) |
|
Investment in new technologies |
|
|
17.86 |
|
|
|
|
|
|
Seoul |
SuNAM Co., Ltd(* 1) |
|
Power supply manufacturing |
|
|
19.17 |
|
|
|
19.17 |
|
|
Seoul |
Pureun Tongyeong Enviro Co., Ltd. |
|
Sewerage treatment |
|
|
20.40 |
|
|
|
20.40 |
|
|
Tongyeong |
Postech Early Stage Fund(* 1) |
|
Investment in venture companies |
|
|
10.00 |
|
|
|
10.00 |
|
|
Pohang |
Posgreen Co., Ltd.(* 1) |
|
Plastic manufacturing |
|
|
19.00 |
|
|
|
19.00 |
|
|
Gwangyang |
POSTECH Social Enterprise Fund(* 1) |
|
Investment in new technologies |
|
|
9.17 |
|
|
|
9.17 |
|
|
Seoul |
Applied Science Corp. |
|
Machinery manufacturing |
|
|
26.47 |
|
|
|
27.11 |
|
|
Paju |
Suwon Green Environment Co., Ltd |
|
Construction |
|
|
27.50 |
|
|
|
27.50 |
|
|
Hwaseong |
Universal Studios Resort Asset Management Corporation |
|
Real estate services |
|
|
26.17 |
|
|
|
26.17 |
|
|
Seoul |
Noel Green Energy Co., Ltd.(* 3) |
|
Electricity generation |
|
|
20.00 |
|
|
|
|
|
|
Seoul |
Synergy Private Equity Fund(* 1,3) |
|
Investment in new technologies |
|
|
17.86 |
|
|
|
|
|
|
Seoul |
Pure Gimpo Co., Ltd. |
|
Construction |
|
|
28.79 |
|
|
|
28.79 |
|
|
Seoul |
Pohang Techno Valley AMC |
|
Construction |
|
|
29.50 |
|
|
|
29.50 |
|
|
Pohang |
New Songdo International City Development, LLC |
|
Real estate rental |
|
|
29.90 |
|
|
|
29.90 |
|
|
Seoul |
MTAPOLIS Co., Ltd. |
|
Multiplex development |
|
|
40.05 |
|
|
|
40.05 |
|
|
Hwaseong |
Busan-Gimhae Light Rail Transit Co., Ltd. |
|
Transporting |
|
|
25.00 |
|
|
|
25.00 |
|
|
Gimhae |
Clean Iksan Co., Ltd. |
|
Construction |
|
|
23.50 |
|
|
|
23.50 |
|
|
Pohang |
Mokpo Deayang Industrial Corporation |
|
Real estate development |
|
|
27.40 |
|
|
|
27.40 |
|
|
Mokpo |
Chun-cheon Energy Co., Ltd |
|
Electricity generation |
|
|
29.90 |
|
|
|
29.90 |
|
|
Chuncheon |
Innovalley Co., Ltd. |
|
Real estate development |
|
|
28.77 |
|
|
|
28.77 |
|
|
Yongin |
Garolim Tidal Power Plant Co.,Ltd |
|
Tidal power plant construction and management |
|
|
32.13 |
|
|
|
32.13 |
|
|
Seosan |
Posco e&c Songdo International Building |
|
Non-resident building lease |
|
|
49.00 |
|
|
|
49.00 |
|
|
Seoul |
POSCO PLANTEC Co., Ltd.(* 4) |
|
Industrial structure manufacturing |
|
|
|
|
|
|
43.97 |
|
|
Ulsan |
Future Creation Fund Postech Early Stage account(* 4) |
|
Investment in new technologies |
|
|
|
|
|
|
40.00 |
|
|
Seoul |
Taegisan Wind Power Corporation(* 5) |
|
Wind power plant construction and management |
|
|
|
|
|
|
50.00 |
|
|
Hoengseong |
Dakos Co., Ltd.(* 6) |
|
Railway equipment manufacturing |
|
|
|
|
|
|
31.00 |
|
|
Seongnam |
Gyeonggi CES Co., Ltd(* 5) |
|
Facility construction |
|
|
|
|
|
|
21.83 |
|
|
Yangju |
Hyundai Investment Network Private Equity Fund I(* 6) |
|
Mine investment |
|
|
|
|
|
|
50.00 |
|
|
Seoul |
27
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
Investee |
|
Category of Business |
|
2014 |
|
|
2013 |
|
|
Region |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
Eureka Moly LLC |
|
Steel processing and sales |
|
|
20.00 |
|
|
|
20.00 |
|
|
USA |
South-East Asia Gas Pipeline Company Ltd. |
|
Pipeline construction |
|
|
25.04 |
|
|
|
25.04 |
|
|
Myanmar |
7623704 Canada Inc.(* 1) |
|
Investments management |
|
|
10.40 |
|
|
|
10.40 |
|
|
Canada |
Nickel Mining Company SAS |
|
Raw material manufacturing and sales |
|
|
49.00 |
|
|
|
49.00 |
|
|
New Caledonia |
AES-VCM Mong Duong Power Company Limited |
|
Electricity generation |
|
|
30.00 |
|
|
|
30.00 |
|
|
Vietnam |
AMCI (WA) PTY LTD. |
|
Iron ore sales & mine development |
|
|
49.00 |
|
|
|
49.00 |
|
|
Australia |
KOREA LNG LTD. |
|
Gas production and sales |
|
|
20.00 |
|
|
|
20.00 |
|
|
England |
CAML RESOURCES PTY LTD. |
|
Raw material manufacturing and sales |
|
|
33.34 |
|
|
|
33.34 |
|
|
Australia |
NCR LLC |
|
Coal sales |
|
|
29.41 |
|
|
|
29.41 |
|
|
Canada |
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
Tinplate manufacturing and sales |
|
|
34.00 |
|
|
|
34.00 |
|
|
China |
PT. Batutua Tembaga Raya(* 3) |
|
Raw material manufacturing and sales |
|
|
24.10 |
|
|
|
|
|
|
Indonesia |
VSC POSCO Steel Corporation |
|
Steel manufacturing and sales |
|
|
50.00 |
|
|
|
50.00 |
|
|
Vietnam |
PT. Wampu Electric Power |
|
Construction and engneering service |
|
|
20.00 |
|
|
|
20.00 |
|
|
Indonesia |
POSCO SeAH Steel Wire (Nantong) Co., Ltd. |
|
Steel processing and sales |
|
|
25.00 |
|
|
|
25.00 |
|
|
China |
POSCHROME (PROPRIETARY) LIMITED |
|
Raw material manufacturing and sales |
|
|
50.00 |
|
|
|
50.00 |
|
|
South Africa |
LLP POSUK Titanium |
|
Titanium manufacturing and sales |
|
|
36.83 |
|
|
|
36.83 |
|
|
Kazahstan |
IMFA ALLOYS FINLEASE LTD |
|
Raw material manufacturing and sales |
|
|
24.00 |
|
|
|
24.00 |
|
|
India |
AN KHANH NEW CITY DEVELOPMENT J.V CO., LTD. |
|
Highway construction and new town development |
|
|
50.00 |
|
|
|
50.00 |
|
|
Vietnam |
XG Sciences(* 3) |
|
New materials manufacturing and development |
|
|
26.27 |
|
|
|
|
|
|
USA |
General Medicines Company Ltd. |
|
Medicine manufacturing and sales |
|
|
33.00 |
|
|
|
33.00 |
|
|
Sudan |
PT.INDONESIA POS CHEMTECH CHOSUN Ref |
|
Refractory manufacturing and sales |
|
|
30.19 |
|
|
|
30.19 |
|
|
Indonesia |
PT. Tanggamus Electric Power |
|
Construction and engneering service |
|
|
20.59 |
|
|
|
20.00 |
|
|
Indonesia |
POS-SEAHSTEELWIRE(TIANJIN)CO., Ltd |
|
Steel manufacturing and sales |
|
|
25.00 |
|
|
|
25.00 |
|
|
China |
SHANGHAI LANSHENG DAEWOO CORP. |
|
Trading |
|
|
49.00 |
|
|
|
49.00 |
|
|
China |
POSK (Pinghu) Steel Processing Center Co., Ltd. |
|
Steel processing and sales |
|
|
20.00 |
|
|
|
20.00 |
|
|
China |
SHANGHAI WAIGAOQIAO FREE TRADE ZONE LANSHENG DAEWOO INL TRADING CO., LTD. |
|
Trading |
|
|
49.00 |
|
|
|
49.00 |
|
|
China |
NS-Thainox Auto Co., Ltd. |
|
Steel manufacturing and sales |
|
|
49.00 |
|
|
|
49.00 |
|
|
Vietnam |
BGC-POS PTY LTD. |
|
Construction |
|
|
49.00 |
|
|
|
49.00 |
|
|
Australia |
Sebang Steel |
|
Scrap sales |
|
|
49.00 |
|
|
|
49.00 |
|
|
Japan |
Hamparan Mulia |
|
Resource development |
|
|
45.00 |
|
|
|
45.00 |
|
|
Indonesia |
Baganuur Energy Corporation |
|
Refined oil manufacturing |
|
|
50.00 |
|
|
|
50.00 |
|
|
Mongolia |
POSCO-Poggenamp Electrical Steel Pvt. Ltd. |
|
Steel manufacturing |
|
|
26.00 |
|
|
|
26.00 |
|
|
India |
Fifth Combined Heat and Power Plant LLC |
|
Thermal power generation |
|
|
30.00 |
|
|
|
30.00 |
|
|
Mongolia |
GLOBAL KOMSCO Daewoo LLC |
|
Mintage |
|
|
35.00 |
|
|
|
35.00 |
|
|
Uzbekistan |
KG Power(M) SDN. BHD |
|
Energy & resource development |
|
|
20.00 |
|
|
|
20.00 |
|
|
Malaysia |
Arctos Anthracite Joint Venture |
|
Coal sales |
|
|
20.00 |
|
|
|
20.00 |
|
|
Canada |
LI3 ENERGY INC |
|
Energy & resource development |
|
|
26.06 |
|
|
|
26.06 |
|
|
Peru |
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Processing Center Co., Ltd.)(* 4) |
|
Steel processing and sales |
|
|
|
|
|
|
30.00 |
|
|
China |
Hanjung Power Pty., Ltd(* 4) |
|
Electric power manufacturing and sales |
|
|
|
|
|
|
49.00 |
|
|
Papua New Guinea |
POSVINA Co., Ltd.(* 5) |
|
Plating steel sheet manufacturing and sales |
|
|
|
|
|
|
50.00 |
|
|
Vietnam |
Yingkou Posrec Refractories Co., Ltd.(* 6) |
|
Refractory manufacturing |
|
|
|
|
|
|
25.00 |
|
|
China |
Daewoo (THAILAND) CO., LTD.(* 6) |
|
Trading |
|
|
|
|
|
|
49.00 |
|
|
Thailand |
N.I.CO., LTD.(* 6) |
|
Trading |
|
|
|
|
|
|
50.00 |
|
|
North Korea |
Boulder Solar Power, LLC(* 5) |
|
Electric power manufacturing |
|
|
|
|
|
|
21.74 |
|
|
USA |
|
(*1) |
The Company is able to exercise significant influence even though the Companys percentage of ownership is below 20%. |
|
(*2) |
Considering the composition of board of directors, the Company is not able to exercise control over the investee even though the Companys percentage of ownership is above 50%. |
|
(*3) |
These associates were newly established or acquired in 2014. |
|
(*4) |
Reclassified to subsidiary from associate due to an increase in ownership percentage and acquisition of control during the year ended December 31, 2014. |
|
(*5) |
Excluded from associates due to the disposal of shares during the year ended December 31, 2014. |
|
(*6) |
Excluded from associates due to the liquidation during the year ended December 31, 2014. |
28
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Details of joint ventures as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ownership (%) |
|
|
|
Investee |
|
Category of Business |
|
2014 |
|
|
2013 |
|
|
Region |
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ES MATERIALS |
|
Secondary battery manufacturing |
|
|
50.00 |
|
|
|
50.00 |
|
|
Gumi |
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
Steel processing and sales |
|
|
60.00 |
|
|
|
60.00 |
|
|
Gwangyang |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
Roy Hill Holdings Pty Ltd |
|
Energy & resource development |
|
|
12.50 |
|
|
|
12.50 |
|
|
Austrailia |
POSCO-NPS Niobium LLC |
|
Mine development |
|
|
50.00 |
|
|
|
50.00 |
|
|
USA |
CSP - Compania Siderurgica do Pecem |
|
Steel manufacturing and sales |
|
|
20.00 |
|
|
|
20.00 |
|
|
Brazil |
DMSA/AMSA |
|
Energy & resource development |
|
|
4.00 |
|
|
|
4.00 |
|
|
Madagascar |
KOBRASCO |
|
Facility lease |
|
|
50.00 |
|
|
|
50.00 |
|
|
Brazil |
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
Steel processing and sales |
|
|
25.00 |
|
|
|
25.00 |
|
|
China |
PT. POSMI Steel Indonesia |
|
Steel processing and sale |
|
|
36.69 |
|
|
|
36.69 |
|
|
Indonesia |
POSCO-CDPC (POSCO ChengDu Processing Center) Co., Ltd(* 1) |
|
Steel processing and sale |
|
|
43.00 |
|
|
|
|
|
|
China |
Henan Tsingpu Ferro Alloy Co., Ltd. |
|
Raw material manufacturing and sales |
|
|
49.00 |
|
|
|
49.00 |
|
|
China |
TANGGANG-POSCO LED(* 1) |
|
Led manufacturing and sales |
|
|
50.00 |
|
|
|
|
|
|
China |
VNS-DAEWOO Co., Ltd.(* 1) |
|
Steel processing and sale |
|
|
40.00 |
|
|
|
|
|
|
Veitnam |
POSCO-SAMSUNG-Slovakia Processing Center |
|
Steel processing and sales |
|
|
30.00 |
|
|
|
30.00 |
|
|
Slovakia |
Zhangjiagang Pohang Refractories Co., Ltd. |
|
Refractory manufacturing |
|
|
50.00 |
|
|
|
50.00 |
|
|
China |
Korea Siberia Wood CJSC |
|
Forest resource development |
|
|
50.00 |
|
|
|
50.00 |
|
|
Russia |
United Spiral Pipe, LLC |
|
Material manufacturing and sales |
|
|
35.00 |
|
|
|
35.00 |
|
|
USA |
SUNGJIN DRIVER INC(* 1) |
|
Moduel and Plant manufacturing |
|
|
50.00 |
|
|
|
|
|
|
Canada |
USS-POSCO Industries |
|
Cold rolled coil manufacturing and sales |
|
|
50.00 |
|
|
|
50.00 |
|
|
USA |
(*1) |
These joint ventures were newly established or acquired in 2014. |
29
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(f) |
Newly included subsidiaries |
|
1) |
Consolidated subsidiaries acquired or newly established during the year ended December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
Company |
|
Date of acquisition |
|
Ownership (%) |
|
|
Reason |
Hanjung Power Pty., Ltd |
|
January-14 |
|
|
100.00 |
|
|
Reclassification from associate |
Daewoo Amara Company Limited |
|
January-14 |
|
|
85.00 |
|
|
New establishment |
POSMATE-CHINA CO., LTD |
|
January-14 |
|
|
100.00 |
|
|
New establishment |
Daewoo Precious Resources Co., Ltd. |
|
March-14 |
|
|
60.00 |
|
|
New establishment |
POSCO-Mexico Villagran Wire-rod Processing Center |
|
March-14 |
|
|
66.75 |
|
|
New establishment |
POSCO Green Gas Technology |
|
April-14 |
|
|
100.00 |
|
|
New establishment |
SANTOS CMI Guatemala S.A. |
|
April-14 |
|
|
100.00 |
|
|
Acquisition |
Santos CMI Construction Inc S.A |
|
April-14 |
|
|
100.00 |
|
|
Acquisition |
POSCO-China Dalian Steel Fabricating Center |
|
May-14 |
|
|
51.00 |
|
|
New establishment |
Keystone Private Equity |
|
June-14 |
|
|
55.12 |
|
|
Reclassification from associate |
POSCO WOMANS FUND(* 1) |
|
July-14 |
|
|
40.00 |
|
|
New establishment |
Chun Sawind |
|
July-14 |
|
|
100.00 |
|
|
Acquisition |
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Processing Center Co., Ltd.) |
|
July-14 |
|
|
100.00 |
|
|
Reclassification from associate |
POSPOWER Co., Ltd. |
|
August-14 |
|
|
100.00 |
|
|
Acquisition |
Future Creation Fund Postech Early Stage account(* 1) |
|
September-14 |
|
|
40.00 |
|
|
Reclassification from associate |
POSCO E&C HOLDINGS CO., Ltd. |
|
October-14 |
|
|
100.00 |
|
|
New establishment |
POSCO E&C (THAILAND) CO., Ltd. |
|
October-14 |
|
|
100.00 |
|
|
New establishment |
Songdo Posco family Housing |
|
November-14 |
|
|
100.00 |
|
|
New establishment |
POSCO PLANTEC Co., Ltd. |
|
December-14 |
|
|
73.94 |
|
|
Reclassification from associate |
SUNGJIN CANADA LTD. |
|
December-14 |
|
|
70.00 |
|
|
Reclassification by POSCO PLANTEC Co., Ltd. |
POSCO PLANTEC Thailand CO. LTD |
|
December-14 |
|
|
82.40 |
|
|
Reclassification by POSCO PLANTEC Co., Ltd. |
DAEWOO POWER PNG Ltd. |
|
December-14 |
|
|
100.00 |
|
|
New establishment |
(*1) |
These subsidiaries are included in the consolidated financial statements as the controlling company has control over them in consideration of the board of directors composition and others. |
|
2) |
Cash outflows (inflows) caused by the acquisitions for the year ended December 31, 2014. |
|
|
|
|
|
(in millions of Won) |
|
Amounts |
|
Consideration transferred |
|
₩ |
747,569 |
|
Less: Cash and cash equivalent acquired |
|
|
(358,991 |
) |
|
|
|
|
|
Total |
|
₩ |
388,578 |
|
|
|
|
|
|
(g) |
Excluded subsidiaries |
Subsidiaries that were excluded from consolidation during the year ended
December 31, 2014 are as follows:
|
|
|
|
|
Company |
|
Date of disposal |
|
Reason |
POSCO-JOPC Co., Ltd. |
|
January-14 |
|
Statutory merger by POSCO-JWPC Co., Ltd.
(formerly, POSCO-JKPC Co., Ltd.) |
S&K -SANTOSCMI S.A. DE C.V. |
|
March-14 |
|
Exclusion by liquidation |
Santos CMI Construction Inc S.A |
|
September-14 |
|
Statutory merger by SANTOS CMI Guatemala S.A |
Daewoo International Cameroon S.A. |
|
November-14 |
|
Disposal |
INTERNATIONAL BUSINESS CENTER CORPORATION |
|
December-14 |
|
Disposal |
30
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
2. Statement of Compliance
Statement of compliance
The consolidated financial
statements have been prepared in accordance with Korean International Financial Reporting Standards (K-IFRS), as prescribed in the Act on External Audits of Corporations in the Republic of Korea.
The consolidated financial statements were authorized for issue by the Board of Directors on January 29, 2015, and will be submitted for approval at the
shareholders meeting to be held on March 13, 2015.
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the statement of financial
position, as described in the accounting policy below.
(a) |
Derivatives instruments are measured at fair value |
(b) |
Financial instruments at fair value through profit or loss (FVTPL) are measured at fair value |
(c) |
Available-for-sale financial assets are measured at fair value |
(d) |
Defined benefit liabilities are measured at the present value of the defined benefit obligation less the fair value of the plan assets |
Functional and presentation currency
These consolidated
financial statements are presented in Korean won, which is POSCOs functional currency and the currency of the primary economic environment in which POSCO operates.
Use of estimates and judgments
The preparation of the
consolidated financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period prospectively.
31
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Information about critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:
|
|
|
Note1 - Subsidiaries, associates and joint venture |
|
|
|
Note 8 - Other financial assets |
|
|
|
Note 12 - Joint operations |
|
|
|
Note 13 - Investment property, net |
|
|
|
Note 14 - Property, plant and equipment, net |
|
|
|
Note 15 - Goodwill and other intangibles |
(b) |
Assumptions and estimation uncertainties |
Information about assumptions and estimation
uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes:
|
|
|
Note 21 - Employee benefits |
|
|
|
Note 29 - Construction contracts |
|
|
|
Note 39 - Commitments and contingencies |
(c) |
Measurement of fair value |
The Companys accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.
The
valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained
from the third parties to support the conclusion that such valuations meet the requirements of K-IFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are
categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
32
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities. |
|
|
|
Level 2 - inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
|
|
|
Level 3 - inputs for the assets or liability that are not based on observable market data. |
If
the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy
as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Information about the assumptions made in measuring fair values is included in the following notes:
|
|
|
Note 23 - Financial instruments |
(d) |
Changes in accounting policies |
The Company has adopted the following amendments to standards
and new interpretation with a date of initial application of January 1, 2014.
|
1) |
K-IFRS No. 1032, Financial Instruments: Presentation |
|
2) |
K-IFRS No. 1036, Impairment of Assets |
|
3) |
K-IFRS No. 2121, Levies |
The nature of the changes are explain below.
|
1) |
Offsetting financial assets and financial liabilities |
The Company has adopted amendments to
K-IFRS No. 1032, Offsetting Financial Assets and Financial Liabilities since January 1, 2014. The amendments clarify the meaning of currently has a legally enforceable right of set-off. According to the amendments,
the right to set off should not be contingent on a future event, and legally enforceable in the normal course of business, in the event of default, and in the event of insolvency or bankruptcy of the entity and all of the counterparties. The
amendments also state that some gross settlement systems would be considered equivalent to net settlement if they eliminate or result in insignificant credit and liquidity risk and process receivables and payables in a single settlement process or
cycle.
33
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
Disclosure of impairment loss |
The Company has adopted amendments to K-IFRS No. 1036
Impairment of Assets since January 1, 2014. The amendments require the disclosure of information about the recoverable amount of impaired assets, if that amount is based on fair value less costs of disposal. They also require the
disclosure of additional information about that fair value measurement. In addition, if the recoverable amount of impaired assets based on fair value less costs of disposal was measured using a present value technique, the amendments also require
the disclosure of the discount rates that have been used in the current and previous measurements.
The Company has adopted K-IFRS No. 2121, Levies since January 1,
2014. K-IFRS No. 2121 is an Interpretation of K-IFRS No. 1037 Provisions, Contingent Liabilities and Contingent Assets, on the accounting for levies imposed by governments. K-IFRS No. 1037 sets out criteria for the recognition of a
liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (or obligating event). K-IFRS No. 2121 clarifies that the obligating event that gives rise to a liability to pay a
levy is the activity described in the relevant legislation that triggers the payment of the levy.
The interpretation does not provide
guidance on the accounting for the costs arising from recognizing the liability to pay a levy. Other K-IFRSs should be applied to determine whether the recognition of a liability to pay a levy gives rise to an asset or an expense.
Impact of changes in accounting policies
Upon adoption
of amendments to K-IFRS No. 1032 and K-IFRS No. 2121, there is no impact on the Companys prior years consolidated financial statements. Upon adoption of amendments to K-IFRS No. 1036, the Company has made the required
disclosures in the annual financial statements for the year ending December 31, 2014 as applicable.
34
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
3. Summary of Significant Accounting Policies
The significant accounting policies applied by the Company in preparation of its consolidated financial statements are included below. The accounting policies
set out below have been applied consistently to all periods presented in these financial statements, except for those as disclosed in note 2.
Basis of
consolidation
(a) |
Business combinations |
The Company accounts for business combinations using the acquisition
method when control is transferred to the Company.
The consideration transferred in the acquisition is generally measured at fair value,
as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on bargain purchase is recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the
issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as
equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.
If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquirees employees
(acquirees awards), then all or a portion of the amount of the acquirers replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based measure of
the replacement awards compared with the market-based measure of the acquirees awards and the extent to which the replacement awards relate to pre-combination service.
(b) |
Non-controlling interests |
Non-controlling interests are measured at their proportionate share
of the acquirees identifiable net assets at the acquisition date.
Changes in the Companys interest in a subsidiary that do not
result in a loss of control are accounted for as equity transactions.
Subsidiaries are entities controlled by the Company. The Company controls an
entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control commences until the date on which control ceases.
35
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
When the Company loses control over a subsidiary, it derecognises the assets
and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any resulting gain or loss is recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when
control is lost.
(e) |
Interests in equity-accounted investees |
The Companys interests in equity-control
investees comprise interests in associates and joint ventures. Associates are those entities in which the Company has significant influence, but not control or joint control, over the financial and operating policies. A joint venture is an
arrangement in which the Company has joint control, whereby the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in associates and joint ventures are accounted for using the equity method. They are recognized initially at cost, which includes
transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Companys share of the profit or loss and other comprehensive income of equity-accounted investees, until the date on which significant
influence or joint control ceases.
(f) |
Transactions eliminated on consolidation |
Intra-group balances and transactions, and any
unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Companys interest in
the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
Foreign currency transactions and translation
1) |
Foreign currency transactions |
Foreign currency transactions are initially recorded using the
spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate. Non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the original transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange
rate at the date fair value was initially determined.
36
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Exchange differences arising on the settlement of monetary items or on translating monetary
items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognized in profit or loss in the period in which they arise. When gains or losses on non-monetary
items are recognized in other comprehensive income, exchange components of those gains or losses are recognized in other comprehensive income. Conversely, when gains or losses on non-monetary items are recognized in profit or loss, exchange
components of those gains or losses are recognized in profit or loss.
If the presentation currency of the Company is different from a foreign
operations functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods:
The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated
to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to functional currency at exchange rates at the dates of the transactions. Foreign currency differences are recognized in
other comprehensive income.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying
amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation. Thus, they are expressed in the functional currency of the foreign operation and translated at the
closing rate.
When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of
the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling interest. In any other partial disposal of a foreign
operation, the relevant proportion is reclassified to profit or loss.
Foreign exchange gains or losses arising from a monetary item
receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are
recognized in other comprehensive income in the translation reserve.
37
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments in highly liquid securities that are readily convertible to known
amounts of cash with maturities of three months or less from the acquisition date and which are subject to an insignificant risk of changes in value. Equity investments are excluded from cash and cash equivalents.
Non-derivative financial assets
The Company recognizes
and measures non-derivative financial assets by the following four categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. The Company
recognizes financial assets in the consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument.
Upon initial recognition, non-derivative financial assets are measured at their fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs that are directly attributable to the assets acquisition or issuance.
(a) |
Financial assets at fair value through profit or loss |
Financial assets are classified at fair
value through profit or loss if they are held for trading or designated as such upon initial recognition. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or
loss are measured at fair value, and changes therein are recognized in profit or loss.
(b) |
Held-to-maturity financial assets |
A non-derivative financial asset with a fixed or
determinable payment and fixed maturity, for which the Company has the positive intention and ability to hold to maturity, is classified as held-to-maturity. Subsequent to initial recognition, held-to-maturity financial assets are measured at
amortized cost using the effective interest rate method.
(c) |
Loans and receivables |
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method unless the effect of discounting is immaterial.
38
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
Available-for-sale financial assets |
Available-for-sale financial assets are those
non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held-to-maturity financial assets or loans and receivables. Subsequent to initial recognition,
they are measured at fair value, with changes in fair value, net of any tax effect, recorded in other comprehensive income in equity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost. When a financial asset is derecognized or impairment losses are recognized, the cumulative gain
or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Dividends on an available-for-sale equity instrument are recognized in profit or loss when the Companys right to receive payment is
established.
(e) |
Derecognition of non-derivative financial assets |
The Company derecognizes non-derivative
financial assets when the contractual rights to the cash flows from the financial asset expire, or the Company transfers the rights to receive the contractual cash flows from the financial asset as well as substantially all the risks and rewards of
ownership of the financial asset. Any interest in a transferred financial asset that is created or retained by the Company is recognized as a separate asset or liability.
If the Company retains substantially all the risks and rewards of ownership of the transferred financial assets, the Company continues to
recognize the transferred financial assets and recognizes financial liabilities for the consideration received.
(f) |
Offsetting a financial asset and a financial liability |
Financial assets and financial
liabilities are offset and the net amount is presented in the consolidated statement of financial position only when the Company currently has a legally enforceable right to offset the recognized amounts, and there is the intention to settle on a
net basis or to realize the asset and settle the liability simultaneously.
Inventories
Inventory costs are determined by using the moving-weighted average method. The cost of inventories comprise all costs of purchase, costs of conversion and
other costs incurred in bringing the inventories to their present location and condition. The allocation of fixed production overheads to the costs of finished goods or work in progress are based on the normal capacity of the production facilities.
39
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
When inventories are sold, the carrying amount of those inventories is recognized as cost of goods sold in
the period in which the related revenue is recognized. Inventories are measured at the lower of cost and net realizable value. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an
expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories arising from an increase in net realizable value is recognized as a reduction in the amount of inventories recognized as a cost of goods
sold in the period in which the reversal occurs.
Non-current assets held for sale
Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing
use are classified as held for sale. In order to be classified as held for sale, the assets or disposal groups must be available for immediate sale in their present condition and their sale must be highly probable. The assets or disposal groups that
are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell.
The Company
recognizes an impairment loss for any initial or subsequent write-down of an asset or disposal group to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss
previously recognized in accordance with K-IFRS No. 1036 Impairment of Assets.
A non-current asset that is classified as held for sale
or part of a disposal group classified as held for sale is not depreciated (or amortized).
Investment property
Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment property is measured initially at its cost.
Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.
Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss
as incurred.
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The
change is accounted for as a change in an accounting estimate.
40
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Property, plant and equipment
Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and any
accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management and, when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the item and restoring the site on
which it is located.
The cost of replacing a part of an item is recognized in the carrying amount of the item of property, plant and equipment, if the
following recognition criteria are met:
(a) |
it is probable that future economic benefits associated with the item will flow to the Company, and |
(b) |
the cost can be measured reliably. |
The carrying amount of the replaced part is derecognized at the time the
replacement part is recognized. The costs of the day-to-day servicing of the item are recognized in profit or loss as incurred.
Items of property, plant
and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets, from the date that the asset is completed and ready for use. Other than land, the costs of an asset less its estimated residual value
are depreciated. Depreciation of property, plant and equipment is recognized in profit or loss on a straight-line basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, over the
estimated useful lives of each component of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by
the end of the lease term. Land is not depreciated.
Each part of an item of property, plant and equipment with a cost that is significant in relation to
the total cost of the item is depreciated separately.
The gain or loss arising from the derecognition of an item of property, plant and equipment is
included in profit or loss when the item is derecognized.
41
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
The estimated useful lives for the current and comparative periods are as follows:
|
|
|
|
|
Buildings |
|
|
5-60 years |
|
Structures |
|
|
4-50 years |
|
Machinery and equipment |
|
|
2-25 years |
|
Vehicles |
|
|
3-10 years |
|
Tools |
|
|
4-10 years |
|
Furniture and fixtures |
|
|
3-10 years |
|
Lease assets |
|
|
3-18 years |
|
The estimated residual value, useful lives and the depreciation method are reviewed at least at the end of each reporting
period and, if expectations differ from previous estimates, the changes are accounted for as changes in accounting estimates.
Borrowing costs
The Company capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that
asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. Financial assets and inventories that are manufactured or
otherwise produced over a short period of time are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets.
To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowing
costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Company immediately recognizes other borrowing costs as an
expense. To the extent that the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to
the expenditures on that asset. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made specifically for the purpose
of obtaining a qualifying asset. The amount of borrowing costs that the Company capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period.
42
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Intangible assets
Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.
Amortization of intangible assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the
date that they are available for use. The residual value of intangible assets is zero. However, as there are no foreseeable limits to the periods over which club memberships are expected to be available for use, this intangible asset is determined
as having an indefinite useful life and not amortized.
|
|
|
|
|
Intellectual property rights |
|
|
5-10 years |
|
Development costs |
|
|
3-10 years |
|
Port facilities usage rights |
|
|
4-75 years |
|
Other intangible assets |
|
|
2-25 years |
|
Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end of
each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life assessments for those
assets. Changes are accounted for as changes in accounting estimates.
Expenditures on research activities, undertaken with the prospect of gaining new
scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially
feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred.
Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other
expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.
Exploration for and
evaluation of mineral resources
POSCO is engaged in exploration projects for mineral resources through subsidiaries, associates and joint ventures in
the mines or other contractual arrangements. Expenditures related to the development of mineral resources are recognized as exploration or development intangible assets. The nature of these intangible assets are as follows:
43
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(a) |
Exploration and evaluation assets |
Exploration and evaluation assets consist of expenditures
for topographical studies, geophysical studies and trenching. These assets are reclassified as development assets when it is proved that the exploration has identified an economically feasible mine.
Development assets consist of expenditures for the evaluation of oil
fields, facility construction, drilling for viability and others. These development assets are reclassified as industrial rights (mining rights) at inception of the extraction when the technical feasibility and commercial viability of extracting
mineral resources are demonstrable. When proved reserves of oil and natural gas are determined and development is sanctioned, the relevant expenditure is transferred to property, plant and equipment and depreciation is computed by the unit of
production method.
Government grants
Government
grants are not recognized unless there is reasonable assurance that the Company will comply with the grants conditions and that the grant will be received.
(a) |
Grants related to assets |
Government grants whose primary condition is that the Company
purchase, construct or otherwise acquire long-term assets are deducted from the carrying amount of the assets and recognized in profit or loss on a systematic and rational basis over the life of the depreciable assets.
(b) |
Grants related to income |
Government grants which are intended to compensate the Company for
expenses incurred are deducted from the related expenses.
Leases
The Company classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Company assumes substantially
all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.
At the commencement of the lease term, the Company recognizes as finance assets
and finance liabilities the lower amount of the fair value of the leased property and the present value of the minimum lease payments, each determined at the inception of the lease. Any initial direct costs are added to the amount recognized as an
asset.
44
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Minimum lease payments are apportioned between the finance charge and the reduction of the
outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in
which they are incurred.
The depreciable amount of a leased asset is allocated to each accounting period during the period of expected use
on a systematic basis consistent with the depreciation policy the Company adopts for similar depreciable assets that are owned. If there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is
fully depreciated over the shorter of the lease term and its useful life.
Lease obligations under operating leases are recognized as an expense on a
straight-line basis over the lease term. Contingent rents are charged as expenses in the periods in which they are incurred.
(c) |
Determining whether an arrangement contains a lease |
Determining whether an arrangement is, or
contains, a lease is based on the substance of the arrangement and requires an assessment of whether fulfillment of the arrangement is dependent on the use of a specific asset or assets (the asset) and the arrangement conveys a right to use the
asset.
At inception or reassessment of the arrangement, management of the Company separates payments and other consideration required by
such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If management of the Company concludes for a financial lease that it is impracticable to separate the payments reliably, the
Company recognizes an asset and a liability at an amount equal to the fair value of the underlying asset that was identified as the subject of the lease. Subsequently, the liability shall be reduced as payments are made and an imputed finance charge
on the liability recognized using the purchasers incremental borrowing rate of interest.
45
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Impairment for financial assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it
is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that
can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized.
Objective evidence that a
financial asset or group of financial assets are impaired includes:
|
(a) |
significant financial difficulty of the issuer or obligor; |
|
(b) |
a breach of contract, such as a default or delinquency in interest or principal payments; |
|
(c) |
the lender, for economic or legal reasons relating to the borrowers financial difficulty, granting to the borrower a concession that the lender would not otherwise consider; |
|
(d) |
it becoming probable that the borrower will enter bankruptcy or other financial reorganization; |
|
(e) |
the disappearance of an active market for that financial asset because of financial difficulties; or |
|
(f) |
observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be
identified with the individual financial assets in the group. |
In addition, for an investment in an equity security, a significant or
prolonged decline in its fair value below its cost is objective evidence of impairment.
If there is objective evidence that financial assets are
impaired, impairment losses are measured and recognized.
(a) |
Financial assets measured at amortized cost |
An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the assets original effective interest rate. If it is not practicable to obtain the
instruments estimated future cash flows, impairment losses would be measured by using prices from any observable current market transactions. The Company can recognize impairment losses directly or establish a provision to cover impairment
losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss shall be reversed either
directly or by adjusting an allowance account.
46
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Financial assets carried at cost |
If there is objective evidence that an impairment loss has
occurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the
amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such
impairment losses are not reversed.
(c) |
Available-for-sale financial assets |
When a decline in the fair value of an available-for-sale
financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment even though the financial asset has not been derecognized. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale are not reversed through
profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss shall be reversed, with the amount of the reversal recognized in profit or loss.
Impairment for non-financial assets
The carrying amounts of the Companys non-financial assets, other than assets arising from construction contracts, employee benefits, inventories,
deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is
estimated. Goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable
amount to their carrying amount.
Management estimates the recoverable amount of an individual asset. If it is impossible to measure the individual
recoverable amount of an asset, then management estimates the recoverable amount of cash-generating unit (CGU). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value-in-use and its fair value less costs to sell. The Company determined that individual operating entities are CGUs.
47
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
The recoverable amount of an asset or CGU is the greater of its value-in-use and its fair value less costs to
sell. The value-in-use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to
the estimated future cash flows expected to be generated by the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or a
CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
Goodwill acquired in a business combination is allocated to each
CGU that is expected to benefit from the synergies arising from the goodwill acquired. Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in
the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
Derivative financial instruments and hedges
Derivatives
are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss.
Embedded derivatives are separated from the host contract and accounted
for separately only if the following criteria have been met: (a) the economic characteristics and risks of the host contract and the embedded derivatives are not clearly and closely related to a separate instrument with the same terms as the
embedded derivative that would meet the definition of a derivative, and (b) the hybrid (combined) instrument is not measured at fair value through profit or loss. Changes in the fair value of separable embedded derivatives from the host
contract are recognized immediately in profit or loss. However, convertible rights of convertible bonds are not separated from the host contract and the compound financial instruments of bonds and convertible rights are designated and measured at
fair value through profit and loss.
Changes in the fair value of a derivative that is not designated as a
hedging instrument are recognized immediately in profit or loss.
48
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Non-derivative financial liabilities
The Company classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in
accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Company recognizes financial liabilities in the consolidated statement of financial position when the Company becomes a party to the
contractual provisions of the financial liability.
(a) |
Financial liabilities at fair value through profit or loss |
Financial liabilities at fair value
through profit or loss include financial liabilities held for trading or designated as such upon initial recognition. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and
changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.
(b) |
Other financial liabilities |
Non-derivative financial liabilities other than financial
liabilities at fair value through profit or loss are classified as other financial liabilities.
Financial guarantee liabilities are
initially measured at their fair values and, if not designated as financial liabilities at fair value through profit or loss, they are subsequently measured at the higher of:
|
1) |
the amount of the best estimate of the expenditure required to settle the present obligation at the end of the reporting period; and |
|
2) |
the amount initially recognized less, cumulative amortization recognized on a straight-line basis over the guarantee period |
At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly
attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
The Company derecognizes a financial liability from the consolidated statement of financial position when it is extinguished (i.e. when the
obligation specified in the contract is discharged, cancelled or expires).
Construction work in progress
Construction work in progress represents the gross unbilled amount expected to be collected from customers for contract work performed to date. It is measured
at cost plus profit recognized to date less progress billings and recognized losses. Cost includes all expenditures related directly to specific projects and an allocation of fixed and variable overheads incurred in the Companys contract
activities based on normal operating capacity.
49
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Construction work in progress is presented as part of trade accounts and notes receivable in the consolidated
statement of financial position for all contracts in which costs incurred plus recognized profits exceed progress billings. If progress billings exceed costs incurred plus recognized profits, then the difference is presented as amounts due to
customers for contract work in the consolidated statement of financial position.
Employee benefits
(a) |
Short-term employee benefits |
Short-term employee benefits are employee benefits that are due
to be settled within twelve months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of
short-term employee benefits expected to be paid in exchange for that service as profit or loss. If the Company has a legal or constructive obligation which can be reliably measured, the Company recognizes the amount of expected payment for
profit-sharing and bonuses payable as liabilities.
(b) |
Other long-term employee benefits |
Other long-term employee benefits include employee benefits
that are settled beyond 12 months after the end of the period in which the employees render the related service, and are calculated at the present value of the amount of future benefit that employees have earned in return for their service in the
current and prior periods, less the fair value of any related assets. The present value is determined by discounting the expected future cash flows using the interest rate of corporate bonds that have maturity dates approximating the terms of the
Companys obligations and that are denominated in the same currency in which the benefits are expected to be paid. Any actuarial gains and losses are recognized in profit or loss in the period in which they arise.
(c) |
Retirement benefits: Defined contribution plans |
For defined contribution plans, when an
employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as an accrued expense, after deducting any contributions already paid. If the
contributions already paid exceed the contribution due for service before the end of the reporting period, the Company recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments
or a cash refund.
50
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
Retirement benefits: Defined benefit plans |
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The Companys net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and
prior periods; that benefit is discounted to determine its present value. The fair value of plan assets is deducted. The calculation is performed annually by an independent actuary using the projected unit credit method.
The discount rate is the yield at the reporting date on corporate bonds that have maturity dates approximating the terms of the Companys
obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Company recognizes all actuarial gains and losses arising from actuarial assumption changes and experiential adjustments in other
comprehensive income when incurred.
When the fair value of plan assets exceeds the present value of the defined benefit obligation, the
Company recognizes an asset, to the extent of the present value of the total of cumulative any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan.
Remeasurements of net defined benefit liabilities, which comprise actuarial gains and losses, the return on plan assets (excluding interest)
and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by
applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during
the period as a result of contributions and benefit payments, net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain
or loss in curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Provisions
Provisions are recognized when the Company
has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a
provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.
51
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another
party, the reimbursement shall be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
A provision for warranties is recognized when
the underlying products are sold. The provision is based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.
Regarding provision for construction warranties, warranty period starts from the completion of construction in accordance with construction contracts. If the
Company has an obligation for warranties, provision for warranties which are estimated based on historical warranty data are recorded as cost of construction and provision for warranties during the construction period.
Equity instruments
Common stock is classified as equity and the incremental costs arising directly
attributable to the issuance of common stock less their tax effects are deducted from equity.
If the Company reacquires its own equity
instruments, the amount of those instruments (treasury shares) are presented as a contra equity account. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of its own equity instruments. When
treasury shares are sold or reissued subsequently, the amount received is recognized as an increase to equity, and the resulting surplus or deficit on the transaction is recorded in capital surplus.
52
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument. When the Company has an unconditional right to avoid delivering cash or another
financial asset to settle a contractual obligation, instruments are classified as an equity instrument.
Revenue
Revenue from the sale of goods, services provided and the use of assets is measured at the fair value of the consideration received or receivable, net of
returns and allowances, trade discounts and volume rebates, which are not significant for all periods presented.
Revenue from the sale of goods in the ordinary course of activities is measured
at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks
and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and
the amount of revenue can be measured reliably. The appropriate timing for transfer of risks and rewards varies depending on the individual terms and conditions of the sales contract. For international sales, this timing depends on the type of
international commercial terms of the contract.
Revenue from services rendered is recognized in profit or loss in proportion
to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed.
53
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Construction contracts |
Construction contracts of the Company primarily consist of contracts
for the construction of plants and commercial or residential buildings, and revenue recognition for different types of contracts is as follows:
When the outcome of a construction contract can be estimated reliably, contract revenue is recognized in profit or loss in proportion to the
stage of completion of the contract. Contract revenue includes the initial amount agreed in the contract plus any variation in contract work, claims and incentive payments, to the extent that it is probable that they will result in revenue and can
be measured reliably. The stage of completion of a contract is determined based on the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs.
When the outcome of a construction contract cannot be estimated reliably, the revenue is recognized only to the extent of contract costs
incurred that it is probable will be recoverable. An expected loss on the construction contract shall be recognized as an expense immediately.
Rental income from investment property, net of lease incentives granted, is
recognized in profit or loss on a straight-line basis over the term of the lease.
Finance income and finance costs
Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income, gains on the disposal of
available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest rate method. Dividend income is
recognized in profit or loss on the date that the Companys right to receive payment is established.
Finance costs comprise interest expense on
borrowings and changes in the fair value of financial assets at fair value through profit or loss. Borrowing costs are recognized in profit or loss using the effective interest rate method.
Income taxes
Income tax expense comprises current and
deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.
54
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Current income tax is the expected income tax payable or receivable on the
taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for
the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit of future periods, and non-taxable or non-deductible items from the accounting profit.
The measurement of deferred income tax liabilities and deferred tax assets
reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
The Company recognizes a deferred income tax liability for all taxable temporary differences associated with investments in subsidiaries,
associates, and joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Company
recognizes a deferred income tax asset for deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, to the extent that it is probable that the temporary difference will reverse in the foreseeable
future and taxable profit will be available against which the temporary difference can be utilized. However, deferred income tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial
recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.
The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and deferred income tax assets reflects the tax
consequences that would follow from the manner in which the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current income tax
liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current income tax liabilities and assets on a net basis.
55
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Earnings per share
Management calculates basic earnings per share (EPS) data for the Companys ordinary shares, which is presented at the end of the statement of
comprehensive income. Basic EPS is calculated by dividing profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.
Operating segments
An operating segment is a component
of the Company that : a) engages in business activities from which it may earn revenues and incur expenditures, including revenues and expenses that relate to transactions with any of the Companys other components, b) whose operating results
are regularly reviewed by the Companys chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.
Management has determined that the CODM of the Company is the CEO.
Segment profit and loss is determined the same way that consolidated net after tax
profit for the period is determined under K-IFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial
statements. Segment assets and liabilities are measured based on total assets and liabilities in accordance with K-IFRS without any adjustment for corporate allocations. Also, segment assets and liabilities are based on the separate financial
statements of the entities instead of on consolidated basis. In addition, there are varying levels of transactions amongst the reportable segments. These transactions include sales of property, plant and assets, and rendering of construction service
and so on. Inter-segment transactions are accounted for on an arms length basis.
Segment results that are reported to the CEO include items
directly attributable to a segment and do not include allocated items. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill.
New standards and interpretations not yet adopted
The
following new standards, interpretations and amendments to existing standards have been published and are mandatory for the Company for annual periods beginning after January 1, 2014, and the Company has not early adopted them. Management
believes the impact of the amendments on the Companys consolidated financial statements is not significant.
56
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(a) |
Amendments to K-IFRS No. 1019 Employee Benefits |
Amendments to K-IFRS No. 1019 introduced
a practical expedient to accounting for defined benefit plan, when employees or third parties pay contributions if certain criteria are met. According to the amendments, the entity is permitted to recognize those contributions as a reduction of the
service cost in the period in which the related service is rendered, instead of forecast future contributions from employees or third parties and attribute them to periods or service as negative benefits.
57
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
4. Financial risk management
The Company has exposure to the following risks from its use of financial instruments:
This note presents information about the Companys exposure to each of the above risks, the
Companys objectives, policies and processes for measuring and managing risk, and the Companys management of capital. Further quantitative disclosures are included throughout these consolidated financial statements.
(a) |
Financial risk management |
|
1) |
Risk management policy |
The Board of Directors has overall responsibility for the establishment
and oversight of the Companys risk management framework. The Companys risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companys activities.
The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers and investment securities. In addition, credit risk arises from finance guarantees.
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain
level of credit rate evaluated based on financial condition, historical experience, and other factors. The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. The default risk of a nation
or an industry in which a customer operates its business does not have a significant influence on credit risk. The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.
58
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for companies of similar assets in
respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Debt securities are analyzed individually, and an expected
loss shall be directly deducted from debt securities.
Credit risk also arises from transactions with financial institutions, and such
transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have
high international credit ratings. The Companys treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Company has no previous relationship. Furthermore, the Company limits its exposure
to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
|
3) |
Liquidity risk management |
Liquidity risk is the risk that the Company will encounter
difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Companys strategic
investments. Management believes that the Company is capable of raising funds by borrowing or financing if the Company is not able to generate cash flow requirements from its operations. The Company has committed borrowing facilities with various
banks.
|
4) |
Market risk management |
Market risk means that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.
59
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Each segment is influenced by a risk factor of changes in foreign currency
exchange rates for the different directions due to the difference in structure of each industry regarding the cash inflows and cash outflows in foreign currency. The steel segment generally has a lack of foreign currency cash outflows, while the
engineering and construction segments generally have excessive foreign currency inflows due to the nature of their respective business. Therefore, the result of the business is affected by the changes of foreign exchange rates.
The trading segment is structured such that the cash inflows and outflows of foreign currencies are to be offset; however, the trading segment
is exposed to a risk of changes in foreign currency exchange rates when there are differences in currencies on receiving and paying the foreign currency amount and time differences.
The Companys policy in respect of foreign currency risks is a natural hedge whereby foreign currency income is offset with foreign
currency expenditures. The remaining net exposures after the natural hedge have been hedged using derivative contracts such as forward exchange contracts. In addition, the Companys derivative transactions are limited to hedging actual foreign
currency transactions and speculative hedging is not permitted. Based on this policy, the Company entities have performed currency risk management specific to various characteristics of different segments. The entities in the steel industry, which
has a lack of foreign currency cash flows, has foreign currency borrowings from banks and hedges foreign currency risks of the foreign currency borrowings by using foreign currency swaps. The entities in the engineering and construction segments,
which have excessive foreign currency cash flows, have hedged foreign currency risks by using forward exchange contracts. Entities in the trading industry have hedged foreign currency risks by using forward exchange contracts when the foreign
currencies received and paid are different.
The Company mostly borrows at fixed interest rates. The Companys
management monitors interest rate risks regularly.
60
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
Other market price risk |
Equity price risk arises from listed equity securities among
available-for-sale equity securities. Management of the Company measures regularly the fair value of listed equity securities and the risk of variance in future cash flow caused by market price fluctuations. Significant investments are managed
separately and all buy and sell decisions are approved by management of the Company.
(b) |
Management of capital risk |
The fundamental goal of capital management is the maximization of
shareholders value by means of the stable dividend policy and the retirement of treasury shares. The capital structure of the Company consists of equity and net debt, deducting cash and cash equivalents and current financial instruments from
borrowings. The Company applied the same financial risk management strategy that was applied in the previous period.
Net
borrowing-to-equity ratio as of December 31, 2014 and 2013 is as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total borrowings |
|
₩ |
27,428,257 |
|
|
|
26,246,605 |
|
Less: Cash and cash equivalents |
|
|
3,811,202 |
|
|
|
4,208,562 |
|
|
|
|
|
|
|
|
|
|
Net borrowings |
|
|
23,617,055 |
|
|
|
22,038,043 |
|
Total equity |
|
|
45,291,364 |
|
|
|
45,822,030 |
|
Net borrowings-to-equity ratio |
|
|
52.14 |
% |
|
|
48.09 |
% |
5. Cash and Cash Equivalents
Cash and cash equivalents as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Cash |
|
₩ |
2,100 |
|
|
|
12,575 |
|
Demand deposits and checking accounts |
|
|
1,209,367 |
|
|
|
1,199,768 |
|
Time deposits |
|
|
1,185,146 |
|
|
|
2,325,449 |
|
Other financial cash equivalents |
|
|
1,414,589 |
|
|
|
670,770 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,811,202 |
|
|
|
4,208,562 |
|
|
|
|
|
|
|
|
|
|
61
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
6. Trade Accounts and Notes Receivable
(a) |
Trade accounts and notes receivable as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
10,814,600 |
|
|
|
10,299,826 |
|
Finance lease receivables |
|
|
24,344 |
|
|
|
36,029 |
|
Unbilled due from customers for contract work |
|
|
1,528,427 |
|
|
|
1,574,929 |
|
Less: Allowance for doubtful accounts |
|
|
(581,316 |
) |
|
|
(418,183 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
11,786,055 |
|
|
|
11,492,601 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
60,583 |
|
|
|
50,639 |
|
Finance lease receivables |
|
|
42,907 |
|
|
|
67,251 |
|
Less: Allowance for doubtful accounts |
|
|
(24,154 |
) |
|
|
(20,890 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
79,336 |
|
|
|
97,000 |
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable sold to financial institutions, for which the derecognition conditions
were not met, amounted to ₩106,985 million and ₩73,956 million as of December 31, 2014 and 2013, respectively, and are included in short-term borrowings from financial institutions.(Note 17)
(b) |
Finance lease receivables are as follows: |
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
Customer |
|
Contents |
|
2014 |
|
|
2013 |
|
Korea Electric Power Corporation |
|
Combined thermal power plant 1~4 |
|
₩ |
66,858 |
|
|
|
102,887 |
|
KC CHEMICAL Co., Ltd |
|
Machinery and equipment |
|
|
393 |
|
|
|
393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
67,251 |
|
|
|
103,280 |
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
The gross amount and present value of minimum lease payments as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Less than 1 year |
|
₩ |
32,302 |
|
|
|
48,112 |
|
1 year - 5 years |
|
|
51,999 |
|
|
|
84,270 |
|
Unrealized interest income |
|
|
(17,050 |
) |
|
|
(29,102 |
) |
|
|
|
|
|
|
|
|
|
Present value of minimum lease payment |
|
₩ |
67,251 |
|
|
|
103,280 |
|
|
|
|
|
|
|
|
|
|
62
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
7. Other Receivables
Other receivables as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Short-term loans |
|
₩ |
254,108 |
|
|
|
298,289 |
|
Other accounts receivable |
|
|
1,523,659 |
|
|
|
1,322,352 |
|
Accrued income |
|
|
76,393 |
|
|
|
74,968 |
|
Deposits |
|
|
58,384 |
|
|
|
69,502 |
|
Others |
|
|
227,192 |
|
|
|
275,892 |
|
Less : Allowance for doubtful accounts |
|
|
(183,520 |
) |
|
|
(150,580 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
1,956,216 |
|
|
|
1,890,423 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term loans |
|
|
960,652 |
|
|
|
604,478 |
|
Long-term other accounts receivable |
|
|
158,018 |
|
|
|
152,383 |
|
Accrued income |
|
|
1,533 |
|
|
|
1,110 |
|
Deposits |
|
|
189,120 |
|
|
|
111,482 |
|
Less : Allowance for doubtful accounts |
|
|
(165,163 |
) |
|
|
(71,998 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,144,160 |
|
|
|
797,455 |
|
|
|
|
|
|
|
|
|
|
63
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
8. Other Financial Assets
Other financial assets as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Derivatives assets held for trading |
|
₩ |
77,182 |
|
|
|
44,082 |
|
Available-for-sale securities |
|
|
25,512 |
|
|
|
10,772 |
|
Current portion of held-to-maturity securities (bonds) |
|
|
15,297 |
|
|
|
2,232 |
|
Short-term financial instruments(* 1,2) |
|
|
1,344,929 |
|
|
|
2,913,579 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,462,920 |
|
|
|
2,970,665 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Derivatives assets held for trading |
|
₩ |
19,084 |
|
|
|
34,140 |
|
Available-for-sale securities (equity instruments)(* 3,4) |
|
|
2,294,244 |
|
|
|
4,068,766 |
|
Available-for-sale securities (bonds) |
|
|
33,350 |
|
|
|
32,456 |
|
Available-for-sale securities (others) |
|
|
67,135 |
|
|
|
54,390 |
|
Held-to-maturity securities (bonds) |
|
|
1,796 |
|
|
|
1,602 |
|
Long-term financial instruments(* 2) |
|
|
40,291 |
|
|
|
274,376 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,455,900 |
|
|
|
4,465,730 |
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2014 and 2013, ₩5,465 million and ₩949 million, respectively, are restricted for the use in a government project. |
(*2) |
As of December 31, 2014 and 2013, financial instruments amounting to ₩177,014 million and ₩261,034 million, respectively, are restricted for use in financial arrangements, pledge and others.
|
(*3) |
During the year ended December 31, 2014, the Company recognized ₩369,723 million of impairment loss on marketable securities of HYUNDAI Heavy Industries Co., Ltd. due to the prolonged decline in the fair
value of the shares and on unmarketable securities of Dongbu Metal Co., Ltd. as the carrying value was higher than its recoverable amount. |
(*4) |
As of December 31, 2014 and 2013, ₩173,632 million and ₩691,801 million of available-for-sale securities, respectively, have been provided as collateral for construction projects and borrowings.
|
64
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
9. Inventories
(a) |
Inventories as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Finished goods |
|
₩ |
1,647,331 |
|
|
|
1,406,297 |
|
Merchandise |
|
|
902,347 |
|
|
|
711,802 |
|
Semi-finished goods |
|
|
1,654,556 |
|
|
|
1,711,294 |
|
Raw materials |
|
|
2,334,992 |
|
|
|
2,228,110 |
|
Fuel and materials |
|
|
759,193 |
|
|
|
801,992 |
|
Construction inventories |
|
|
1,129,370 |
|
|
|
1,183,390 |
|
Materials-in-transit |
|
|
2,109,207 |
|
|
|
1,848,389 |
|
Others |
|
|
96,274 |
|
|
|
96,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,633,270 |
|
|
|
9,987,663 |
|
|
|
|
|
|
|
|
|
|
Less: Allowance for inventories valuation |
|
|
(161,940 |
) |
|
|
(189,282 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
10,471,330 |
|
|
|
9,798,381 |
|
|
|
|
|
|
|
|
|
|
(b) |
The changes of allowance for inventories valuation for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
189,282 |
|
|
|
214,795 |
|
Loss on valuation of inventories |
|
|
41,713 |
|
|
|
49,172 |
|
Write-off |
|
|
(69,996 |
) |
|
|
(73,220 |
) |
Others |
|
|
941 |
|
|
|
(1,465 |
) |
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
161,940 |
|
|
|
189,282 |
|
|
|
|
|
|
|
|
|
|
65
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
10. Assets Held for Sale
Details of assets held for sale and related liabilities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
|
Controlling |
|
|
Subsidiaries |
|
|
|
|
|
Controlling |
|
|
|
|
|
|
|
(in millions of Won) |
|
company(*1,*6) |
|
|
(*2,*3,*4,*5,*6) |
|
|
Total |
|
|
company(*7) |
|
|
Subsidiaries(*8) |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
₩ |
|
|
|
|
210,934 |
|
|
|
210,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable and other receivables |
|
|
|
|
|
|
90,811 |
|
|
|
90,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial assets |
|
|
580,062 |
|
|
|
21,028 |
|
|
|
601,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
|
|
|
289,716 |
|
|
|
289,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in associates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,304 |
|
|
|
|
|
|
|
1,304 |
|
Investment property |
|
|
|
|
|
|
22,067 |
|
|
|
22,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
2,672 |
|
|
|
895,391 |
|
|
|
898,063 |
|
|
|
|
|
|
|
1,190 |
|
|
|
1,190 |
|
Other assets |
|
|
|
|
|
|
14,406 |
|
|
|
14,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
582,734 |
|
|
|
1,544,353 |
|
|
|
2,127,087 |
|
|
|
1,304 |
|
|
|
1,190 |
|
|
|
2,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable and other payables |
|
₩ |
|
|
|
|
225,403 |
|
|
|
225,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
|
|
330,059 |
|
|
|
330,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
|
|
|
|
35,520 |
|
|
|
35,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
|
|
|
|
590,982 |
|
|
|
590,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company determined to exchange the shares in Nacional Minerios S.A with the shares of newly established entity based on the merger agreement. The transaction was approved by the Board of Directors on
December 12, 2014 and the Company classified its investment in shares as assets held for sale. |
(*2) |
The Company determined to dispose of 52.2% of shares of POSCO Specialty Co., Ltd to SeAH Besteel Corp. by entering into a disposal agreement. The agreement was approved by the Board of Directors on December 12,
2014, and the Company classified the related assets and liabilities as held for sale. |
(*3) |
The Company has determined to dispose of shares of its POSFINE Co., Ltd, an associate of the Company, to Hahn & Company PRIVATE EQUITY FUND No. 1. The transaction was approved by the Board of Directors on
November 7, 2014 and the Company classified the shares as assets held for sale. |
(*4) |
Daewoo International Corporation, a subsidiary of the Company, entered into a sales contract to dispose its Daewoo Department Store located in Masan in accordance with the Board of Directors resolution on
August 18, 2014. Accordingly, the Company classified it as assets held for sale and recognized an impairment loss of ₩16,769 million. |
(*5) |
POSCO M-TECH, a subsidiary of the Company, determined to dispose of its rare metal department and some of its assets in the Molybdenum factory in Yeongwol, and classified them as assets held-for-sale. |
(*6) |
The controlling company and POSCO-VIETNAM Co., Ltd., a subsidiary of the Company, determined to dispose of some tangible assets including land and disused facilities and classified them as assets held for sale.
|
(*7) |
The Company determined to dispose of its shares in POSVINA Co., Ltd., an associate of the Company, and classified it as assets held for sale as of December 31, 2013. The Company completed the disposal of this
investment during the year ended December 31, 2014 and recognized a loss of ₩14 million on disposal of assets held for sale. |
(*8) |
POSCO AST, a subsidiary of the Company, determined to dispose of its land and building for employee welfare and classified them as assets held for sale as of December 31, 2012. POSCO AST recognized a loss of
₩436 million on disposal of assets held for sale during the year ended December 31, 2014. |
66
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
11. Investments in Associates and Joint ventures
(a) |
Investments in associates and joint ventures as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Investments in associates |
|
₩ |
1,626,801 |
|
|
|
1,830,047 |
|
Investments in joint ventures |
|
|
2,433,706 |
|
|
|
1,978,646 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
4,060,507 |
|
|
|
3,808,693 |
|
|
|
|
|
|
|
|
|
|
(b) |
Details of investments in associates as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
|
|
Number |
|
|
Ownership |
|
|
Acquisition |
|
|
|
|
|
|
|
Company |
|
of shares |
|
|
(%) |
|
|
cost |
|
|
Book value |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natural Resources PEF |
|
|
178,565 |
|
|
|
28.48 |
|
|
₩ |
178,566 |
|
|
₩ |
176,899 |
|
|
|
177,563 |
|
SNNC |
|
|
18,130,000 |
|
|
|
49.00 |
|
|
|
90,650 |
|
|
|
131,671 |
|
|
|
123,969 |
|
POSCO PLANTEC Co., Ltd.(* 1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234,203 |
|
QSONE Co., Ltd. |
|
|
200,000 |
|
|
|
50.00 |
|
|
|
84,395 |
|
|
|
83,849 |
|
|
|
84,096 |
|
Incheon-Gimpo Expressway Co., Ltd.(* 2) |
|
|
9,032,539 |
|
|
|
25.76 |
|
|
|
45,163 |
|
|
|
43,045 |
|
|
|
37,759 |
|
BLUE OCEAN Private Equity Fund |
|
|
333 |
|
|
|
27.52 |
|
|
|
33,300 |
|
|
|
31,439 |
|
|
|
29,391 |
|
UITrans LRT Co., Ltd.(* 2) |
|
|
4,395,669 |
|
|
|
38.19 |
|
|
|
21,978 |
|
|
|
30,098 |
|
|
|
19,185 |
|
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd(* 2) |
|
|
2,008,000 |
|
|
|
25.10 |
|
|
|
10,040 |
|
|
|
19,801 |
|
|
|
23,733 |
|
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
11,862,500 |
|
|
|
12.50 |
|
|
|
11,863 |
|
|
|
12,268 |
|
|
|
6,685 |
|
KONES, Corp. |
|
|
3,250,000 |
|
|
|
41.67 |
|
|
|
6,893 |
|
|
|
5,430 |
|
|
|
5,784 |
|
Gunggi Green Energy(* 2) |
|
|
2,880,000 |
|
|
|
19.00 |
|
|
|
14,400 |
|
|
|
4,642 |
|
|
|
4,996 |
|
Others (31 companies)(* 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,869 |
|
|
|
52,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
568,011 |
|
|
|
800,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eureka Moly LLC |
|
|
|
|
|
|
20.00 |
|
|
|
240,123 |
|
|
|
228,004 |
|
|
|
217,513 |
|
South-East Asia Gas Pipeline Company Ltd. |
|
|
135,219,000 |
|
|
|
25.04 |
|
|
|
150,779 |
|
|
|
172,805 |
|
|
|
140,202 |
|
7623704 Canada Inc. |
|
|
114,452,000 |
|
|
|
10.40 |
|
|
|
124,341 |
|
|
|
117,100 |
|
|
|
119,516 |
|
Nickel Mining Company SAS |
|
|
3,234,698 |
|
|
|
49.00 |
|
|
|
157,585 |
|
|
|
107,408 |
|
|
|
135,178 |
|
AES-VCM Mong Duong Power Company Limited |
|
|
|
|
|
|
30.00 |
|
|
|
74,161 |
|
|
|
93,021 |
|
|
|
81,436 |
|
AMCI (WA) PTY LTD |
|
|
49 |
|
|
|
49.00 |
|
|
|
209,664 |
|
|
|
88,050 |
|
|
|
98,467 |
|
KOREA LNG LTD. |
|
|
2,400 |
|
|
|
20.00 |
|
|
|
135,205 |
|
|
|
72,089 |
|
|
|
64,453 |
|
CAML RESOURCES PTY LTD |
|
|
3,239 |
|
|
|
33.34 |
|
|
|
40,388 |
|
|
|
38,240 |
|
|
|
43,820 |
|
NCR LLC |
|
|
|
|
|
|
29.41 |
|
|
|
32,348 |
|
|
|
32,598 |
|
|
|
30,496 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
10,200,000 |
|
|
|
34.00 |
|
|
|
9,517 |
|
|
|
21,032 |
|
|
|
20,600 |
|
PT. Batutua Tembaga Raya |
|
|
128,285 |
|
|
|
24.10 |
|
|
|
14,785 |
|
|
|
14,653 |
|
|
|
|
|
VSC POSCO Steel Corporation |
|
|
1,000,000 |
|
|
|
50.00 |
|
|
|
9,014 |
|
|
|
7,621 |
|
|
|
9,464 |
|
PT. Wampu Electric Power(* 1) |
|
|
7,800,000 |
|
|
|
20.00 |
|
|
|
9,028 |
|
|
|
7,611 |
|
|
|
7,237 |
|
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
50 |
|
|
|
25.00 |
|
|
|
4,723 |
|
|
|
6,969 |
|
|
|
6,083 |
|
Others (23 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51,589 |
|
|
|
55,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,058,790 |
|
|
|
1,029,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,626,801 |
|
|
|
1,830,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
During the year ended December 31, 2014, the investment in associates was reclassified from associate to subsidiary due to increase in percentage of ownership through capital increase. |
(*2) |
As of December 31, 2014, investment in associates amounting to ₩110,721 million is provided as collateral related to associates borrowings. |
67
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Details of investments in joint ventures as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
|
|
Number |
|
|
Ownership |
|
|
Acquisition |
|
|
|
|
|
|
|
Company |
|
of shares |
|
|
(%) |
|
|
cost |
|
|
Book value |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
11,568,000 |
|
|
|
60.00 |
|
|
₩ |
115,680 |
|
|
₩ |
112,837 |
|
|
|
115,708 |
|
POSCO ES MATERIALS |
|
|
1,000,000 |
|
|
|
50.00 |
|
|
|
43,000 |
|
|
|
38,021 |
|
|
|
40,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
150,858 |
|
|
|
156,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Roy Hill Holdings Pty Ltd(* 1) |
|
|
13,117,972 |
|
|
|
12.50 |
|
|
|
1,528,672 |
|
|
|
1,268,678 |
|
|
|
825,901 |
|
POSCO-NPS Niobium LLC |
|
|
325,050,000 |
|
|
|
50.00 |
|
|
|
364,609 |
|
|
|
357,874 |
|
|
|
343,590 |
|
CSP - Compania Siderurgica do Pecem |
|
|
827,771,230 |
|
|
|
20.00 |
|
|
|
469,891 |
|
|
|
260,906 |
|
|
|
263,419 |
|
DMSA/AMSA(* 2) |
|
|
|
|
|
|
4.00 |
|
|
|
193,182 |
|
|
|
165,094 |
|
|
|
180,355 |
|
KOBRASCO |
|
|
2,010,719,185 |
|
|
|
50.00 |
|
|
|
32,950 |
|
|
|
99,787 |
|
|
|
95,233 |
|
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
|
|
|
|
25.00 |
|
|
|
61,961 |
|
|
|
98,893 |
|
|
|
96,309 |
|
Others (11 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,616 |
|
|
|
17,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,282,848 |
|
|
|
1,822,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,433,706 |
|
|
|
1,978,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2014, investment in joint ventures amounting to ₩1,268,678 million is provided as collateral in relation to loan from project financing of Roy Hill Holdings Pty Ltd. |
(*2) |
As of December 31, 2014, investment in joint ventures amounting to ₩165,094 million is provided as collateral for the joint ventures guarantees. |
68
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
The movements of investments in associates and joint ventures for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013 |
|
|
|
|
|
|
|
|
Share of |
|
|
Other increase |
|
|
December 31, 2014 |
|
Company |
|
Book value |
|
|
Acquisition |
|
|
Dividends |
|
|
profits (losses) |
|
|
(decrease)(* 1) |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natual Resources PEF |
|
₩ |
177,563 |
|
|
|
|
|
|
|
|
|
|
|
(664 |
) |
|
|
|
|
|
|
176,899 |
|
SNNC |
|
|
123,969 |
|
|
|
|
|
|
|
(5,149 |
) |
|
|
13,873 |
|
|
|
(1,022 |
) |
|
|
131,671 |
|
POSCO PLANTEC Co., Ltd. |
|
|
234,203 |
|
|
|
25,356 |
|
|
|
|
|
|
|
(210,616 |
) |
|
|
(48,943 |
) |
|
|
|
|
QSONE Co., Ltd. |
|
|
84,096 |
|
|
|
|
|
|
|
|
|
|
|
(247 |
) |
|
|
|
|
|
|
83,849 |
|
Incheon-Gimpo Expressway Co., Ltd. |
|
|
37,759 |
|
|
|
8,331 |
|
|
|
|
|
|
|
(340 |
) |
|
|
(2,705 |
) |
|
|
43,045 |
|
BLUE OCEAN Private Equity Fund |
|
|
29,391 |
|
|
|
|
|
|
|
|
|
|
|
2,193 |
|
|
|
(145 |
) |
|
|
31,439 |
|
UITrans LRT Co., Ltd. |
|
|
19,185 |
|
|
|
2,330 |
|
|
|
|
|
|
|
8,583 |
|
|
|
|
|
|
|
30,098 |
|
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
|
23,733 |
|
|
|
|
|
|
|
|
|
|
|
(3,714 |
) |
|
|
(218 |
) |
|
|
19,801 |
|
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
6,685 |
|
|
|
6,113 |
|
|
|
|
|
|
|
(530 |
) |
|
|
|
|
|
|
12,268 |
|
KONES, Corp. |
|
|
5,784 |
|
|
|
|
|
|
|
|
|
|
|
(378 |
) |
|
|
24 |
|
|
|
5,430 |
|
Gunggi Green Energy |
|
|
4,996 |
|
|
|
|
|
|
|
|
|
|
|
(354 |
) |
|
|
|
|
|
|
4,642 |
|
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
115,708 |
|
|
|
|
|
|
|
|
|
|
|
(2,835 |
) |
|
|
(36 |
) |
|
|
112,837 |
|
POSCO ES MATERIALS |
|
|
40,386 |
|
|
|
|
|
|
|
|
|
|
|
(2,229 |
) |
|
|
(136 |
) |
|
|
38,021 |
|
Others (31 companies) |
|
|
52,761 |
|
|
|
12,875 |
|
|
|
|
|
|
|
(24,284 |
) |
|
|
(12,483 |
) |
|
|
28,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
956,219 |
|
|
|
55,005 |
|
|
|
(5,149 |
) |
|
|
(221,542 |
) |
|
|
(65,664 |
) |
|
|
718,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eureka Moly LLC |
|
|
217,513 |
|
|
|
|
|
|
|
|
|
|
|
(37 |
) |
|
|
10,528 |
|
|
|
228,004 |
|
South-East Asia Gas Pipeline Company Ltd. |
|
|
140,202 |
|
|
|
|
|
|
|
|
|
|
|
25,638 |
|
|
|
6,965 |
|
|
|
172,805 |
|
7623704 Canada Inc. |
|
|
119,516 |
|
|
|
|
|
|
|
(5,505 |
) |
|
|
(1,678 |
) |
|
|
4,767 |
|
|
|
117,100 |
|
Nickel Mining Company SAS |
|
|
135,178 |
|
|
|
|
|
|
|
|
|
|
|
(17,391 |
) |
|
|
(10,379 |
) |
|
|
107,408 |
|
AES-VCM Mong Duong Power Company Limited |
|
|
81,436 |
|
|
|
|
|
|
|
|
|
|
|
(3,845 |
) |
|
|
15,430 |
|
|
|
93,021 |
|
AMCI (WA) PTY LTD |
|
|
98,467 |
|
|
|
|
|
|
|
|
|
|
|
(6,477 |
) |
|
|
(3,940 |
) |
|
|
88,050 |
|
KOREA LNG LTD. |
|
|
64,453 |
|
|
|
|
|
|
|
(18,668 |
) |
|
|
18,613 |
|
|
|
7,691 |
|
|
|
72,089 |
|
CAML RESOURCES PTY LTD |
|
|
43,820 |
|
|
|
|
|
|
|
|
|
|
|
(2,191 |
) |
|
|
(3,389 |
) |
|
|
38,240 |
|
NCR LLC |
|
|
30,496 |
|
|
|
|
|
|
|
|
|
|
|
(3,984 |
) |
|
|
6,086 |
|
|
|
32,598 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
20,600 |
|
|
|
|
|
|
|
(352 |
) |
|
|
378 |
|
|
|
406 |
|
|
|
21,032 |
|
PT. Batutua Tembaga Raya |
|
|
|
|
|
|
14,785 |
|
|
|
|
|
|
|
|
|
|
|
(132 |
) |
|
|
14,653 |
|
VSC POSCO Steel Corporation |
|
|
9,464 |
|
|
|
|
|
|
|
(1,850 |
) |
|
|
7 |
|
|
|
|
|
|
|
7,621 |
|
PT. Wampu Electric Power |
|
|
7,237 |
|
|
|
|
|
|
|
|
|
|
|
134 |
|
|
|
240 |
|
|
|
7,611 |
|
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
6,083 |
|
|
|
|
|
|
|
|
|
|
|
679 |
|
|
|
207 |
|
|
|
6,969 |
|
Roy Hill Holdings Pty Ltd |
|
|
825,901 |
|
|
|
530,492 |
|
|
|
|
|
|
|
(14,783 |
) |
|
|
(72,932 |
) |
|
|
1,268,678 |
|
POSCO-NPS Niobium LLC |
|
|
343,590 |
|
|
|
|
|
|
|
(16,414 |
) |
|
|
16,370 |
|
|
|
14,328 |
|
|
|
357,874 |
|
CSPCompania Siderurgica do Pecem |
|
|
263,419 |
|
|
|
75,966 |
|
|
|
|
|
|
|
(57,127 |
) |
|
|
(21,352 |
) |
|
|
260,906 |
|
DMSA/AMSA |
|
|
180,355 |
|
|
|
|
|
|
|
|
|
|
|
(21,793 |
) |
|
|
6,532 |
|
|
|
165,094 |
|
KOBRASCO |
|
|
95,233 |
|
|
|
|
|
|
|
(18,429 |
) |
|
|
30,356 |
|
|
|
(7,373 |
) |
|
|
99,787 |
|
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
96,309 |
|
|
|
|
|
|
|
|
|
|
|
943 |
|
|
|
1,641 |
|
|
|
98,893 |
|
Others (34 companies) |
|
|
73,202 |
|
|
|
50,605 |
|
|
|
(858 |
) |
|
|
(42,163 |
) |
|
|
2,419 |
|
|
|
83,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,852,474 |
|
|
|
671,848 |
|
|
|
(62,076 |
) |
|
|
(78,351 |
) |
|
|
(42,257 |
) |
|
|
3,341,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,808,693 |
|
|
|
726,853 |
|
|
|
(67,225 |
) |
|
|
(299,893 |
) |
|
|
(107,921 |
) |
|
|
4,060,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Other increase or decrease represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments arising from translations of financial statements of foreign investees
and others. |
69
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
December 31, 2012 Book value |
|
|
Acquisition |
|
|
Dividends |
|
|
Share of profits (losses) |
|
|
Other increase (decrease)(* 1) |
|
|
December 31, 2013 Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natual Resources PEF |
|
₩ |
|
|
|
|
178,566 |
|
|
|
|
|
|
|
(1,017 |
) |
|
|
14 |
|
|
|
177,563 |
|
SNNC |
|
|
147,539 |
|
|
|
|
|
|
|
(27,685 |
) |
|
|
2,183 |
|
|
|
1,932 |
|
|
|
123,969 |
|
POSCO PLANTEC Co., Ltd. |
|
|
181,361 |
|
|
|
101,210 |
|
|
|
|
|
|
|
(49,065 |
) |
|
|
697 |
|
|
|
234,203 |
|
QSONE Co., Ltd. |
|
|
|
|
|
|
84,395 |
|
|
|
|
|
|
|
(299 |
) |
|
|
|
|
|
|
84,096 |
|
Incheon-Gimpo Expressway Co., Ltd. |
|
|
13,680 |
|
|
|
24,521 |
|
|
|
|
|
|
|
(441 |
) |
|
|
(1 |
) |
|
|
37,759 |
|
BLUE OCEAN Private Equity Fund |
|
|
33,839 |
|
|
|
|
|
|
|
|
|
|
|
(2,015 |
) |
|
|
(2,433 |
) |
|
|
29,391 |
|
UITrans LRT Co., Ltd. |
|
|
16,444 |
|
|
|
1,967 |
|
|
|
|
|
|
|
668 |
|
|
|
106 |
|
|
|
19,185 |
|
CHUNGJU ENTERPRISE CITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEVELOPMENT Co., Ltd |
|
|
29,414 |
|
|
|
|
|
|
|
|
|
|
|
(5,535 |
) |
|
|
(146 |
) |
|
|
23,733 |
|
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
|
|
|
|
7,013 |
|
|
|
|
|
|
|
(327 |
) |
|
|
(1 |
) |
|
|
6,685 |
|
KONES, Corp. |
|
|
6,476 |
|
|
|
|
|
|
|
|
|
|
|
(740 |
) |
|
|
48 |
|
|
|
5,784 |
|
Gunggi Green Energy |
|
|
7,353 |
|
|
|
5,475 |
|
|
|
|
|
|
|
(8,213 |
) |
|
|
381 |
|
|
|
4,996 |
|
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
28,060 |
|
|
|
86,760 |
|
|
|
|
|
|
|
888 |
|
|
|
|
|
|
|
115,708 |
|
POSCO ES MATERIALS |
|
|
42,388 |
|
|
|
|
|
|
|
|
|
|
|
(1,963 |
) |
|
|
(39 |
) |
|
|
40,386 |
|
Others (34 companies) |
|
|
104,445 |
|
|
|
11,325 |
|
|
|
|
|
|
|
(6,585 |
) |
|
|
(56,424 |
) |
|
|
52,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
610,999 |
|
|
|
501,232 |
|
|
|
(27,685 |
) |
|
|
(72,461 |
) |
|
|
(55,866 |
) |
|
|
956,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eureka Moly LLC |
|
|
213,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,377 |
|
|
|
217,513 |
|
South-East Asia Gas Pipeline Company Ltd. |
|
|
144,831 |
|
|
|
|
|
|
|
|
|
|
|
(2,585 |
) |
|
|
(2,044 |
) |
|
|
140,202 |
|
7623704 Canada Inc. |
|
|
|
|
|
|
124,341 |
|
|
|
|
|
|
|
(1 |
) |
|
|
(4,824 |
) |
|
|
119,516 |
|
Nickel Mining Company SAS |
|
|
146,699 |
|
|
|
|
|
|
|
|
|
|
|
(16,617 |
) |
|
|
5,096 |
|
|
|
135,178 |
|
AES-VCM Mong Duong Power Company Limited |
|
|
48,636 |
|
|
|
|
|
|
|
|
|
|
|
(12,841 |
) |
|
|
45,641 |
|
|
|
81,436 |
|
AMCI (WA) PTY LTD |
|
|
123,018 |
|
|
|
|
|
|
|
|
|
|
|
(6,283 |
) |
|
|
(18,268 |
) |
|
|
98,467 |
|
KOREA LNG LTD. |
|
|
99,976 |
|
|
|
|
|
|
|
(21,999 |
) |
|
|
21,898 |
|
|
|
(35,422 |
) |
|
|
64,453 |
|
CAML RESOURCES PTY LTD |
|
|
62,227 |
|
|
|
|
|
|
|
(12,428 |
) |
|
|
17,984 |
|
|
|
(23,963 |
) |
|
|
43,820 |
|
NCR LLC |
|
|
39,303 |
|
|
|
|
|
|
|
|
|
|
|
(9,609 |
) |
|
|
802 |
|
|
|
30,496 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
19,045 |
|
|
|
|
|
|
|
|
|
|
|
1,304 |
|
|
|
251 |
|
|
|
20,600 |
|
VSC POSCO Steel Corporation |
|
|
9,347 |
|
|
|
|
|
|
|
(433 |
) |
|
|
760 |
|
|
|
(210 |
) |
|
|
9,464 |
|
PT. Wampu Electric Power |
|
|
7,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(177 |
) |
|
|
7,237 |
|
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
5,274 |
|
|
|
|
|
|
|
(62 |
) |
|
|
717 |
|
|
|
154 |
|
|
|
6,083 |
|
Roy Hill Holdings Pty Ltd |
|
|
527,129 |
|
|
|
446,201 |
|
|
|
|
|
|
|
(37,781 |
) |
|
|
(109,648 |
) |
|
|
825,901 |
|
POSCO-NPS Niobium LLC |
|
|
348,646 |
|
|
|
|
|
|
|
(16,188 |
) |
|
|
16,079 |
|
|
|
(4,947 |
) |
|
|
343,590 |
|
CSP - Compania Siderurgica do Pecem |
|
|
214,761 |
|
|
|
128,185 |
|
|
|
|
|
|
|
(34,410 |
) |
|
|
(45,117 |
) |
|
|
263,419 |
|
DMSA/AMSA |
|
|
124,326 |
|
|
|
58,374 |
|
|
|
|
|
|
|
31 |
|
|
|
(2,376 |
) |
|
|
180,355 |
|
KOBRASCO |
|
|
113,847 |
|
|
|
|
|
|
|
(26,482 |
) |
|
|
21,948 |
|
|
|
(14,080 |
) |
|
|
95,233 |
|
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
92,888 |
|
|
|
|
|
|
|
|
|
|
|
2,400 |
|
|
|
1,021 |
|
|
|
96,309 |
|
Others (35 companies) |
|
|
87,759 |
|
|
|
7,439 |
|
|
|
(11,953 |
) |
|
|
(70,342 |
) |
|
|
60,299 |
|
|
|
73,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,428,262 |
|
|
|
764,540 |
|
|
|
(89,545 |
) |
|
|
(107,348 |
) |
|
|
(143,435 |
) |
|
|
2,852,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,039,261 |
|
|
|
1,265,772 |
|
|
|
(117,230 |
) |
|
|
(179,809 |
) |
|
|
(199,301 |
) |
|
|
3,808,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Other increase or decrease represents the changes in investments in associates and joint ventures due to disposals and change in capital adjustments arising from translations of financial statements of foreign investees
and others. |
70
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(e) |
Summarized financial information of associates and joint ventures as of and for years ended December 31, 2014 and 2013 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natual Resources PEF |
|
₩ |
621,960 |
|
|
|
1,044 |
|
|
|
620,916 |
|
|
|
|
|
|
|
(576 |
) |
SNNC |
|
|
826,597 |
|
|
|
528,246 |
|
|
|
298,351 |
|
|
|
345,836 |
|
|
|
41,117 |
|
QSONE Co., Ltd. |
|
|
247,590 |
|
|
|
79,891 |
|
|
|
167,699 |
|
|
|
13,674 |
|
|
|
(603 |
) |
Incheon-Gimpo Expressway Co., Ltd. |
|
|
337,639 |
|
|
|
172,464 |
|
|
|
165,175 |
|
|
|
|
|
|
|
(1,148 |
) |
BLUE OCEAN Private Equity Fund |
|
|
361,810 |
|
|
|
247,573 |
|
|
|
114,237 |
|
|
|
574,476 |
|
|
|
8,489 |
|
UITrans LRT Co., Ltd. |
|
|
169,574 |
|
|
|
117,996 |
|
|
|
51,578 |
|
|
|
|
|
|
|
(887 |
) |
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
|
256,207 |
|
|
|
208,960 |
|
|
|
47,247 |
|
|
|
5,240 |
|
|
|
(14,789 |
) |
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
100,063 |
|
|
|
1,917 |
|
|
|
98,146 |
|
|
|
1,932 |
|
|
|
(4,238 |
) |
KONES, Corp. |
|
|
3,756 |
|
|
|
3,155 |
|
|
|
601 |
|
|
|
7,269 |
|
|
|
(907 |
) |
Gunggi Green Energy |
|
|
328,976 |
|
|
|
264,278 |
|
|
|
64,698 |
|
|
|
124,181 |
|
|
|
(4,720 |
) |
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
405,387 |
|
|
|
218,275 |
|
|
|
187,112 |
|
|
|
|
|
|
|
(4,725 |
) |
POSCO ES MATERIALS |
|
|
64,088 |
|
|
|
19,602 |
|
|
|
44,486 |
|
|
|
13,403 |
|
|
|
(4,459 |
) |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South-East Asia Gas Pipeline Company Ltd. |
|
|
1,997,068 |
|
|
|
1,306,957 |
|
|
|
690,111 |
|
|
|
353,439 |
|
|
|
102,385 |
|
7623704 Canada Inc. |
|
|
1,138,126 |
|
|
|
4 |
|
|
|
1,138,122 |
|
|
|
|
|
|
|
(612 |
) |
Nickel Mining Company SAS |
|
|
410,230 |
|
|
|
140,860 |
|
|
|
269,370 |
|
|
|
133,975 |
|
|
|
(24,800 |
) |
KOREA LNG LTD. |
|
|
393,581 |
|
|
|
45 |
|
|
|
393,536 |
|
|
|
94,936 |
|
|
|
93,067 |
|
CAML RESOURCES PTY LTD |
|
|
159,281 |
|
|
|
38,591 |
|
|
|
120,690 |
|
|
|
172,093 |
|
|
|
(6,570 |
) |
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
148,077 |
|
|
|
80,538 |
|
|
|
67,539 |
|
|
|
186,733 |
|
|
|
1,112 |
|
PT. Batutua Tembaga Raya |
|
|
100,142 |
|
|
|
151,591 |
|
|
|
(51,449 |
) |
|
|
1,309 |
|
|
|
(2,110 |
) |
VSC POSCO Steel Corporation |
|
|
38,388 |
|
|
|
26,942 |
|
|
|
11,446 |
|
|
|
103,877 |
|
|
|
73 |
|
PT. Wampu Electric Power |
|
|
172,950 |
|
|
|
138,012 |
|
|
|
34,938 |
|
|
|
43,184 |
|
|
|
670 |
|
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
66,097 |
|
|
|
38,572 |
|
|
|
27,525 |
|
|
|
80,059 |
|
|
|
2,636 |
|
Roy Hill Holdings Pty Ltd |
|
|
6,809,416 |
|
|
|
3,431,438 |
|
|
|
3,377,978 |
|
|
|
|
|
|
|
(118,264 |
) |
POSCO-NPS Niobium LLC |
|
|
715,546 |
|
|
|
|
|
|
|
715,546 |
|
|
|
|
|
|
|
32,741 |
|
CSP - Compania Siderurgica do Pecem |
|
|
3,060,008 |
|
|
|
1,467,004 |
|
|
|
1,593,004 |
|
|
|
|
|
|
|
(90,649 |
) |
DMSA/AMSA |
|
|
8,938,860 |
|
|
|
5,918,665 |
|
|
|
3,020,195 |
|
|
|
695,505 |
|
|
|
(544,837 |
) |
KOBRASCO |
|
|
234,595 |
|
|
|
35,021 |
|
|
|
199,574 |
|
|
|
99,677 |
|
|
|
60,712 |
|
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
816,813 |
|
|
|
448,854 |
|
|
|
367,959 |
|
|
|
1,290,490 |
|
|
|
3,771 |
|
71
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Assets |
|
|
Liabilities |
|
|
Equity (deficit) |
|
|
Sales |
|
|
Net income (loss) |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natual Resources PEF |
|
₩ |
652,849 |
|
|
|
1,034 |
|
|
|
651,815 |
|
|
|
|
|
|
|
(3,684 |
) |
SNNC |
|
|
504,351 |
|
|
|
235,830 |
|
|
|
268,521 |
|
|
|
405,419 |
|
|
|
8,458 |
|
POSCO PLANTEC Co., Ltd. |
|
|
900,409 |
|
|
|
765,481 |
|
|
|
134,928 |
|
|
|
597,561 |
|
|
|
(98,435 |
) |
QSONE Co., Ltd. |
|
|
247,592 |
|
|
|
79,399 |
|
|
|
168,193 |
|
|
|
882 |
|
|
|
(597 |
) |
Incheon-Gimpo Expressway Co., Ltd. |
|
|
157,082 |
|
|
|
32,691 |
|
|
|
124,391 |
|
|
|
|
|
|
|
(1,473 |
) |
BLUE OCEAN Private Equity Fund |
|
|
341,118 |
|
|
|
234,321 |
|
|
|
106,797 |
|
|
|
425,678 |
|
|
|
(7,321 |
) |
UITrans LRT Co., Ltd. |
|
|
102,828 |
|
|
|
56,438 |
|
|
|
46,390 |
|
|
|
|
|
|
|
(925 |
) |
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
|
284,290 |
|
|
|
222,246 |
|
|
|
62,044 |
|
|
|
10,224 |
|
|
|
(15,924 |
) |
KoFC POSCO HANWHA KB Shared Growth NO. 2. Private Equity Fund |
|
|
55,195 |
|
|
|
1,712 |
|
|
|
53,483 |
|
|
|
1,064 |
|
|
|
(1,116 |
) |
KONES, Corp. |
|
|
3,748 |
|
|
|
2,296 |
|
|
|
1,452 |
|
|
|
7,442 |
|
|
|
(1,612 |
) |
Gunggi Green Energy |
|
|
333,027 |
|
|
|
263,608 |
|
|
|
69,419 |
|
|
|
21,577 |
|
|
|
(5,526 |
) |
POSCO MITSUBISHI CARBON TECHNOLOGY |
|
|
243,644 |
|
|
|
51,747 |
|
|
|
191,897 |
|
|
|
|
|
|
|
89 |
|
POSCO ES MATERIALS |
|
|
59,807 |
|
|
|
10,590 |
|
|
|
49,217 |
|
|
|
5,759 |
|
|
|
(3,926 |
) |
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South-East Asia Gas Pipeline Company Ltd. |
|
|
1,755,847 |
|
|
|
1,195,935 |
|
|
|
559,912 |
|
|
|
19,878 |
|
|
|
(10,323 |
) |
7623704 Canada Inc. |
|
|
1,161,363 |
|
|
|
15 |
|
|
|
1,161,348 |
|
|
|
|
|
|
|
(10 |
) |
Nickel Mining Company SAS |
|
|
416,878 |
|
|
|
91,851 |
|
|
|
325,027 |
|
|
|
120,324 |
|
|
|
(39,686 |
) |
KOREA LNG LTD. |
|
|
381,437 |
|
|
|
98 |
|
|
|
381,339 |
|
|
|
111,602 |
|
|
|
109,495 |
|
CAML RESOURCES PTY LTD |
|
|
185,465 |
|
|
|
52,782 |
|
|
|
132,683 |
|
|
|
238,296 |
|
|
|
53,950 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
|
133,554 |
|
|
|
67,202 |
|
|
|
66,352 |
|
|
|
205,453 |
|
|
|
3,859 |
|
VSC POSCO Steel Corporation |
|
|
33,116 |
|
|
|
17,860 |
|
|
|
15,256 |
|
|
|
110,059 |
|
|
|
1,766 |
|
PT. Wampu Electric Power |
|
|
122,733 |
|
|
|
89,862 |
|
|
|
32,871 |
|
|
|
27,042 |
|
|
|
(3,496 |
) |
POSCO SeAH Steel Wire(Nantong) Co., Ltd. |
|
|
63,304 |
|
|
|
38,951 |
|
|
|
24,353 |
|
|
|
79,578 |
|
|
|
3,134 |
|
Roy Hill Holdings Pty Ltd |
|
|
2,703,533 |
|
|
|
244,437 |
|
|
|
2,459,096 |
|
|
|
|
|
|
|
(302,248 |
) |
POSCO-NPS Niobium LLC |
|
|
686,978 |
|
|
|
|
|
|
|
686,978 |
|
|
|
|
|
|
|
32,158 |
|
CSP - Compania Siderurgica do Pecem |
|
|
1,520,989 |
|
|
|
78,847 |
|
|
|
1,442,142 |
|
|
|
|
|
|
|
(16,915 |
) |
DMSA/AMSA |
|
|
8,636,317 |
|
|
|
5,190,558 |
|
|
|
3,445,759 |
|
|
|
|
|
|
|
(473 |
) |
KOBRASCO |
|
|
203,467 |
|
|
|
13,001 |
|
|
|
190,466 |
|
|
|
70,428 |
|
|
|
42,852 |
|
BX STEEL POSCO Cold Rolled Sheet Co., Ltd. |
|
|
776,557 |
|
|
|
418,958 |
|
|
|
357,599 |
|
|
|
1,479,765 |
|
|
|
5,359 |
|
12. Joint Operations
Details of significant joint operations that the Company is participating in as a party to a joint arrangement as of December 31, 2014 are as follows:
|
|
|
|
|
|
|
Joint operations |
|
Operation |
|
Ownership (%) |
|
Location |
Myanmar A-1/A-3 mine |
|
Mine development |
|
51.00 |
|
Myanmar |
Offshore midstream |
|
Mine development |
|
51.00 |
|
Myanmar |
Greenhills mine |
|
Mine development |
|
20.00 |
|
Canada |
Actos Anthracite coal project |
|
Mine development |
|
20.00 |
|
Canada |
Mt. Thorley J/V |
|
Mine development |
|
20.00 |
|
Australia |
POSMAC J/V |
|
Mine development |
|
20.00 |
|
Australia |
CD J/V |
|
Mine development |
|
5.00 |
|
Australia |
Intergra Coal J/V |
|
Mine development |
|
2.35 |
|
Australia |
RUM J/V |
|
Mine development |
|
10.00 |
|
Australia |
Camberwell Coal J/V |
|
Mine development |
|
8.39 |
|
Australia |
72
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
13. Investment Property, Net
(a) |
Investment property as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition cost |
|
|
Accumulated depreciation and impairment loss |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated depreciation and impairment loss |
|
|
Book value |
|
Land |
|
₩ |
447,350 |
|
|
|
(31,838 |
) |
|
|
415,512 |
|
|
|
200,468 |
|
|
|
(38,966 |
) |
|
|
161,502 |
|
Buildings |
|
|
681,924 |
|
|
|
(90,277 |
) |
|
|
591,647 |
|
|
|
399,998 |
|
|
|
(160,805 |
) |
|
|
239,193 |
|
Structures |
|
|
4,058 |
|
|
|
(1,998 |
) |
|
|
2,060 |
|
|
|
6,836 |
|
|
|
(3,237 |
) |
|
|
3,599 |
|
Construction-in-progress |
|
|
46,373 |
|
|
|
|
|
|
|
46,373 |
|
|
|
20,935 |
|
|
|
|
|
|
|
20,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,179,705 |
|
|
|
(124,113 |
) |
|
|
1,055,592 |
|
|
|
628,237 |
|
|
|
(203,008 |
) |
|
|
425,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014, the fair value of investment property is ₩1,288,080 million, among which
the Company evaluated the investment property of 6 subsidiaries, including DONG FANG JIN HONG, as its book value since it is believed that the fair value is approximately same as the book value of ₩812,591 million. Also, the Company used the
prior years fair value for some of the investment property since it is believed to be approximately the same.
(b) |
Changes in the carrying value of investment property for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Others(*2) |
|
|
Ending |
|
Land |
|
₩ |
161,502 |
|
|
|
97,883 |
|
|
|
13 |
|
|
|
(20,500 |
) |
|
|
|
|
|
|
176,614 |
|
|
|
415,512 |
|
Buildings |
|
|
239,193 |
|
|
|
195,722 |
|
|
|
208 |
|
|
|
(19,212 |
) |
|
|
(12,858 |
) |
|
|
188,594 |
|
|
|
591,647 |
|
Structures |
|
|
3,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(413 |
) |
|
|
(1,126 |
) |
|
|
2,060 |
|
Construction-in-progress |
|
|
20,935 |
|
|
|
112,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(87,560 |
) |
|
|
46,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
425,229 |
|
|
|
406,603 |
|
|
|
221 |
|
|
|
(39,712 |
) |
|
|
(13,271 |
) |
|
|
276,522 |
|
|
|
1,055,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Impairment losses of investment property amounting to ₩23 million are included. |
(*2) |
Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Depreciation |
|
|
Others(*1) |
|
|
Ending |
|
Land |
|
₩ |
211,382 |
|
|
|
|
|
|
|
12,625 |
|
|
|
(4,410 |
) |
|
|
|
|
|
|
(58,095 |
) |
|
|
161,502 |
|
Buildings |
|
|
304,503 |
|
|
|
10 |
|
|
|
8,432 |
|
|
|
(3,129 |
) |
|
|
(12,008 |
) |
|
|
(58,615 |
) |
|
|
239,193 |
|
Structures |
|
|
5,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(314 |
) |
|
|
(1,393 |
) |
|
|
3,599 |
|
Construction-in-progress |
|
|
|
|
|
|
20,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
521,191 |
|
|
|
20,945 |
|
|
|
21,057 |
|
|
|
(7,539 |
) |
|
|
(12,322 |
) |
|
|
(118,103 |
) |
|
|
425,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
73
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
14. Property, Plant and Equipment, Net
(a) |
Property, plant and equipment as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition cost |
|
|
Accumulated depreciation and impairment loss |
|
|
Government grants |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated depreciation and impairment loss |
|
|
Government grants |
|
|
Book value |
|
Land |
|
₩ |
2,801,288 |
|
|
|
|
|
|
|
|
|
|
|
2,801,288 |
|
|
|
2,719,989 |
|
|
|
(11,979 |
) |
|
|
|
|
|
|
2,708,010 |
|
Buildings |
|
|
8,824,462 |
|
|
|
(3,460,858 |
) |
|
|
(4,280 |
) |
|
|
5,359,324 |
|
|
|
8,112,980 |
|
|
|
(3,223,992 |
) |
|
|
(153 |
) |
|
|
4,888,835 |
|
Structures |
|
|
5,106,863 |
|
|
|
(2,076,499 |
) |
|
|
(201 |
) |
|
|
3,030,163 |
|
|
|
4,649,271 |
|
|
|
(1,864,574 |
) |
|
|
(110 |
) |
|
|
2,784,587 |
|
Machinery and equipment |
|
|
43,972,182 |
|
|
|
(22,771,455 |
) |
|
|
(842 |
) |
|
|
21,199,885 |
|
|
|
40,685,986 |
|
|
|
(21,242,212 |
) |
|
|
(938 |
) |
|
|
19,442,836 |
|
Vehicles |
|
|
304,346 |
|
|
|
(247,611 |
) |
|
|
(40 |
) |
|
|
56,695 |
|
|
|
284,113 |
|
|
|
(233,080 |
) |
|
|
|
|
|
|
51,033 |
|
Tools |
|
|
360,625 |
|
|
|
(296,517 |
) |
|
|
(39 |
) |
|
|
64,069 |
|
|
|
346,018 |
|
|
|
(283,120 |
) |
|
|
(45 |
) |
|
|
62,853 |
|
Furniture and fixtures |
|
|
577,126 |
|
|
|
(433,330 |
) |
|
|
(14 |
) |
|
|
143,782 |
|
|
|
568,313 |
|
|
|
(394,958 |
) |
|
|
(203 |
) |
|
|
173,152 |
|
Finance lease assets |
|
|
162,154 |
|
|
|
(82,073 |
) |
|
|
|
|
|
|
80,081 |
|
|
|
151,219 |
|
|
|
(50,695 |
) |
|
|
|
|
|
|
100,524 |
|
Construction-in-progress |
|
|
2,511,009 |
|
|
|
|
|
|
|
(5,101 |
) |
|
|
2,505,908 |
|
|
|
5,553,322 |
|
|
|
|
|
|
|
(5,033 |
) |
|
|
5,548,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
64,620,055 |
|
|
|
(29,368,343 |
) |
|
|
(10,517 |
) |
|
|
35,241,195 |
|
|
|
63,071,211 |
|
|
|
(27,304,610 |
) |
|
|
(6,482 |
) |
|
|
35,760,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Changes in the carrying value of property, plant and equipment for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Others(*2) |
|
|
Ending |
|
Land |
|
₩ |
2,708,010 |
|
|
|
92,645 |
|
|
|
146,755 |
|
|
|
(10,410 |
) |
|
|
(1,839 |
) |
|
|
(133,873 |
) |
|
|
2,801,288 |
|
Buildings |
|
|
4,888,835 |
|
|
|
97,701 |
|
|
|
72,483 |
|
|
|
(18,968 |
) |
|
|
(372,445 |
) |
|
|
691,718 |
|
|
|
5,359,324 |
|
Structures |
|
|
2,784,587 |
|
|
|
42,341 |
|
|
|
15,525 |
|
|
|
(3,517 |
) |
|
|
(223,487 |
) |
|
|
414,714 |
|
|
|
3,030,163 |
|
Machinery and equipment |
|
|
19,442,836 |
|
|
|
372,448 |
|
|
|
26,998 |
|
|
|
(45,777 |
) |
|
|
(2,194,014 |
) |
|
|
3,597,394 |
|
|
|
21,199,885 |
|
Vehicles |
|
|
51,033 |
|
|
|
17,665 |
|
|
|
614 |
|
|
|
(2,136 |
) |
|
|
(20,166 |
) |
|
|
9,685 |
|
|
|
56,695 |
|
Tools |
|
|
62,853 |
|
|
|
29,351 |
|
|
|
4,210 |
|
|
|
(578 |
) |
|
|
(33,480 |
) |
|
|
1,713 |
|
|
|
64,069 |
|
Furniture and fixtures |
|
|
173,152 |
|
|
|
41,113 |
|
|
|
1,599 |
|
|
|
(2,291 |
) |
|
|
(70,938 |
) |
|
|
1,147 |
|
|
|
143,782 |
|
Finance lease assets |
|
|
100,524 |
|
|
|
2,710 |
|
|
|
|
|
|
|
(31 |
) |
|
|
(29,825 |
) |
|
|
6,703 |
|
|
|
80,081 |
|
Construction-in-progress |
|
|
5,548,289 |
|
|
|
2,804,568 |
|
|
|
19,156 |
|
|
|
(14,088 |
) |
|
|
|
|
|
|
(5,852,017 |
) |
|
|
2,505,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
35,760,119 |
|
|
|
3,500,542 |
|
|
|
287,340 |
|
|
|
(97,796 |
) |
|
|
(2,946,194 |
) |
|
|
(1,262,816 |
) |
|
|
35,241,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Impairment losses of property, plant and equipment amounting to ₩64,833 million are included. |
(*2) |
Includes reclassification for changing purpose of use, adjustment of foreign currency translation differences and others. |
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Others(*2) |
|
|
Ending |
|
Land |
|
₩ |
2,646,422 |
|
|
|
23,404 |
|
|
|
23,108 |
|
|
|
(24,548 |
) |
|
|
|
|
|
|
39,624 |
|
|
|
2,708,010 |
|
Buildings |
|
|
4,168,802 |
|
|
|
72,168 |
|
|
|
7,352 |
|
|
|
(48,278 |
) |
|
|
(308,084 |
) |
|
|
996,875 |
|
|
|
4,888,835 |
|
Structures |
|
|
2,320,181 |
|
|
|
29,338 |
|
|
|
18,568 |
|
|
|
(7,633 |
) |
|
|
(189,740 |
) |
|
|
613,873 |
|
|
|
2,784,587 |
|
Machinery and equipment |
|
|
16,532,204 |
|
|
|
740,682 |
|
|
|
9,634 |
|
|
|
(88,565 |
) |
|
|
(1,867,408 |
) |
|
|
4,116,289 |
|
|
|
19,442,836 |
|
Vehicles |
|
|
60,154 |
|
|
|
10,326 |
|
|
|
700 |
|
|
|
(2,356 |
) |
|
|
(19,402 |
) |
|
|
1,611 |
|
|
|
51,033 |
|
Tools |
|
|
69,851 |
|
|
|
20,638 |
|
|
|
304 |
|
|
|
(1,811 |
) |
|
|
(33,494 |
) |
|
|
7,365 |
|
|
|
62,853 |
|
Furniture and fixtures |
|
|
183,380 |
|
|
|
31,578 |
|
|
|
1,087 |
|
|
|
(4,837 |
) |
|
|
(72,062 |
) |
|
|
34,006 |
|
|
|
173,152 |
|
Finance lease assets |
|
|
57,224 |
|
|
|
670 |
|
|
|
|
|
|
|
(712 |
) |
|
|
(12,766 |
) |
|
|
56,108 |
|
|
|
100,524 |
|
Construction-in-progress |
|
|
6,238,161 |
|
|
|
5,931,141 |
|
|
|
|
|
|
|
(10,369 |
) |
|
|
|
|
|
|
(6,610,644 |
) |
|
|
5,548,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
32,276,379 |
|
|
|
6,859,945 |
|
|
|
60,753 |
|
|
|
(189,109 |
) |
|
|
(2,502,956 |
) |
|
|
(744,893 |
) |
|
|
35,760,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Impairment losses of property, plant and equipment amounting to ₩9,742 million are included. |
(*2) |
Includes reclassification for changing purpose of use, adjustments of foreign currency translation differences and others. |
74
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Weighted average expenditure |
|
₩ |
1,772,492 |
|
|
|
6,442,564 |
|
Borrowing costs capitalized |
|
|
76,566 |
|
|
|
290,117 |
|
Capitalization rate |
|
|
4.32 |
% |
|
|
4.50 |
% |
(d) |
Property, plant and equipment and investment property pledged as collateral as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Collateral right holder |
|
2014 |
|
|
2013 |
|
Land(*1) |
|
Korean Development Bank and others |
|
₩ |
1,040,850 |
|
|
|
767,004 |
|
Buildings and structures(*1) |
|
Korean Development Bank and others |
|
|
1,324,597 |
|
|
|
1,112,855 |
|
Machinery and equipment |
|
Korean Development Bank and others |
|
|
3,594,331 |
|
|
|
3,343,747 |
|
Tools |
|
Korean Development Bank |
|
|
104 |
|
|
|
7,300 |
|
Construction-in-progress |
|
The Export-Import Bank of Korea |
|
|
|
|
|
|
382,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
5,959,882 |
|
|
|
5,613,245 |
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Investment property is included. |
15. Goodwill and Other Intangible Assets, Net
(a) |
Goodwill and other intangible assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition cost |
|
|
Accumulated amortization and impairment |
|
|
Government grants |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated amortization and impairment |
|
|
Government grants |
|
|
Book value |
|
Goodwill |
|
₩ |
1,932,065 |
|
|
|
(136,921 |
) |
|
|
|
|
|
|
1,795,144 |
|
|
|
1,741,562 |
|
|
|
(125,624 |
) |
|
|
|
|
|
|
1,615,938 |
|
Intellectual property rights |
|
|
2,910,143 |
|
|
|
(146,544 |
) |
|
|
(920 |
) |
|
|
2,762,679 |
|
|
|
1,551,898 |
|
|
|
(76,026 |
) |
|
|
(1,013 |
) |
|
|
1,474,859 |
|
Premium in rental |
|
|
150,438 |
|
|
|
(19,496 |
) |
|
|
|
|
|
|
130,942 |
|
|
|
148,295 |
|
|
|
(17,028 |
) |
|
|
|
|
|
|
131,267 |
|
Development expense |
|
|
330,365 |
|
|
|
(161,263 |
) |
|
|
(356 |
) |
|
|
168,746 |
|
|
|
158,228 |
|
|
|
(95,780 |
) |
|
|
(1,346 |
) |
|
|
61,102 |
|
Port facilities usage rights |
|
|
506,125 |
|
|
|
(349,681 |
) |
|
|
|
|
|
|
156,444 |
|
|
|
504,331 |
|
|
|
(337,220 |
) |
|
|
|
|
|
|
167,111 |
|
Exploration and evaluation assets |
|
|
123,025 |
|
|
|
(30,566 |
) |
|
|
|
|
|
|
92,459 |
|
|
|
389,601 |
|
|
|
(29,853 |
) |
|
|
|
|
|
|
359,748 |
|
Mining development assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
968,191 |
|
|
|
|
|
|
|
|
|
|
|
968,191 |
|
Customer relationships |
|
|
859,023 |
|
|
|
(217,398 |
) |
|
|
|
|
|
|
641,625 |
|
|
|
856,308 |
|
|
|
(163,428 |
) |
|
|
|
|
|
|
692,880 |
|
Other intangible assets |
|
|
1,698,979 |
|
|
|
(562,014 |
) |
|
|
(15 |
) |
|
|
1,136,950 |
|
|
|
843,705 |
|
|
|
(384,960 |
) |
|
|
(1 |
) |
|
|
458,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,510,163 |
|
|
|
(1,623,883 |
) |
|
|
(1,291 |
) |
|
|
6,884,989 |
|
|
|
7,162,119 |
|
|
|
(1,229,919 |
) |
|
|
(2,360 |
) |
|
|
5,929,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(2) |
The changes in carrying value of goodwill and other intangible assets for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment loss |
|
|
Others(*3) |
|
|
Ending |
|
Goodwill(*1) |
|
₩ |
1,615,938 |
|
|
|
|
|
|
|
187,285 |
|
|
|
|
|
|
|
|
|
|
|
(11,297 |
) |
|
|
3,218 |
|
|
|
1,795,144 |
|
Intellectual property rights |
|
|
1,474,859 |
|
|
|
199,850 |
|
|
|
32 |
|
|
|
(218 |
) |
|
|
(143,548 |
) |
|
|
(27,720 |
) |
|
|
1,259,424 |
|
|
|
2,762,679 |
|
Premium in rental(*2) |
|
|
131,267 |
|
|
|
8,775 |
|
|
|
1,661 |
|
|
|
(4,484 |
) |
|
|
(265 |
) |
|
|
(2,609 |
) |
|
|
(3,403 |
) |
|
|
130,942 |
|
Development expense |
|
|
61,102 |
|
|
|
18,032 |
|
|
|
2,659 |
|
|
|
(3,484 |
) |
|
|
(56,453 |
) |
|
|
(9,366 |
) |
|
|
156,256 |
|
|
|
168,746 |
|
Port facilities usage rights |
|
|
167,111 |
|
|
|
433 |
|
|
|
|
|
|
|
|
|
|
|
(12,462 |
) |
|
|
|
|
|
|
1,362 |
|
|
|
156,444 |
|
Exploration and evaluation assets |
|
|
359,748 |
|
|
|
32,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(718 |
) |
|
|
(298,762 |
) |
|
|
92,459 |
|
Mining development assets |
|
|
968,191 |
|
|
|
1,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(969,675 |
) |
|
|
|
|
Customer relationships |
|
|
692,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(53,969 |
) |
|
|
|
|
|
|
2,714 |
|
|
|
641,625 |
|
Other intangible assets(*4) |
|
|
458,744 |
|
|
|
262,076 |
|
|
|
628,213 |
|
|
|
(665 |
) |
|
|
(77,243 |
) |
|
|
(717 |
) |
|
|
(133,458 |
) |
|
|
1,136,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
5,929,840 |
|
|
|
522,841 |
|
|
|
819,850 |
|
|
|
(8,851 |
) |
|
|
(343,940 |
) |
|
|
(52,427 |
) |
|
|
17,676 |
|
|
|
6,884,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Business combination amounts include goodwill amounting to ₩180,418 million related to the acquisition of POSCO Plantec Co., Ltd. |
(*2) |
Premium in rental includes memberships with indefinite useful lives. |
(*3) |
Includes translation adjustment and reclassification. |
(*4) |
For the year ended December 31, 2014, POSCO ENGINEERING & CONSTRUCT ION., LTD. recognized other intangible assets and other provisions amounting to ₩169,000 million in relation to project financing
agreements on the Urban Development Project in Gaepo-dong, Seoul. POSCO ENERGY CO., LTD. recognized other intangible assets amounting to ₩539,405 million in relation to operation permit for electricity business when acquiring POSPOWER CO.,
Ltd. |
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Business combination |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment loss |
|
|
Others(*3) |
|
|
Ending |
|
Goodwill(*1) |
|
₩ |
1,713,691 |
|
|
|
|
|
|
|
2,668 |
|
|
|
|
|
|
|
|
|
|
|
(103,436 |
) |
|
|
3,015 |
|
|
|
1,615,938 |
|
Intellectual property rights |
|
|
275,146 |
|
|
|
54,182 |
|
|
|
|
|
|
|
(291 |
) |
|
|
(35,532 |
) |
|
|
(10,313 |
) |
|
|
1,191,667 |
|
|
|
1,474,859 |
|
Premium in rental(*2) |
|
|
137,733 |
|
|
|
4,089 |
|
|
|
1,605 |
|
|
|
(4,382 |
) |
|
|
(211 |
) |
|
|
(4,457 |
) |
|
|
(3,110 |
) |
|
|
131,267 |
|
Development expense |
|
|
60,931 |
|
|
|
13,717 |
|
|
|
2,032 |
|
|
|
|
|
|
|
(23,166 |
) |
|
|
(5,675 |
) |
|
|
13,263 |
|
|
|
61,102 |
|
Port facilities usage rights |
|
|
83,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,318 |
) |
|
|
|
|
|
|
94,307 |
|
|
|
167,111 |
|
Exploration and evaluation assets |
|
|
479,728 |
|
|
|
4,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(124,649 |
) |
|
|
359,748 |
|
Mining development assets |
|
|
1,643,306 |
|
|
|
289,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(964,131 |
) |
|
|
968,191 |
|
Customer relationships |
|
|
750,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51,944 |
) |
|
|
|
|
|
|
(5,908 |
) |
|
|
692,880 |
|
Other intangible assets |
|
|
517,971 |
|
|
|
211,627 |
|
|
|
684 |
|
|
|
(1,102 |
) |
|
|
(58,843 |
) |
|
|
(1,435 |
) |
|
|
(210,158 |
) |
|
|
458,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
5,662,360 |
|
|
|
577,300 |
|
|
|
6,989 |
|
|
|
(5,775 |
) |
|
|
(180,014 |
) |
|
|
(125,316 |
) |
|
|
(5,704 |
) |
|
|
5,929,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Business combination amounts include goodwill amounting to ₩2,668 million related to the acquisition of POSCO YongXin Rare Earth Metal Co., Ltd. |
(*2) |
Premium in rental includes memberships with indefinite useful lives. |
(*3) |
Includes translation adjustment and reclassification. |
76
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
For the purpose of impairment testing, goodwill is allocated to individually operating entities determined to be CGUs. The goodwill amounts as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting |
|
Total number of CGUs |
|
|
|
|
|
|
|
|
|
segments |
|
2014 |
|
|
2013 |
|
|
CGUs |
|
2014 |
|
|
2013 |
|
Steel |
|
|
10 |
|
|
|
10 |
|
|
POSCO Thainox Public Company Limited |
|
₩ |
16,206 |
|
|
|
18,624 |
|
|
|
|
|
|
|
|
|
|
|
POSCO VST CO., LTD. |
|
|
36,955 |
|
|
|
36,955 |
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
13,623 |
|
|
|
14,084 |
|
Trading |
|
|
3 |
|
|
|
3 |
|
|
Daewoo International Corporation(* 1) |
|
|
1,163,922 |
|
|
|
1,163,922 |
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
9,918 |
|
|
|
9,711 |
|
E&C |
|
|
5 |
|
|
|
4 |
|
|
POSCO Engineering Co., Ltd.(* 2) |
|
|
194,637 |
|
|
|
194,637 |
|
|
|
|
|
|
|
|
|
|
|
EPC EQUITIES LLP |
|
|
44,719 |
|
|
|
44,412 |
|
|
|
|
|
|
|
|
|
|
|
POSCO PLANTEC Co., Ltd. (* 3) |
|
|
180,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
14,802 |
|
|
|
11,119 |
|
Others |
|
|
9 |
|
|
|
10 |
|
|
PONUTech Co., Ltd |
|
|
77,298 |
|
|
|
77,298 |
|
|
|
|
|
|
|
|
|
|
|
POSCO ENERGY Co., LTD. |
|
|
26,471 |
|
|
|
26,471 |
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
16,175 |
|
|
|
18,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
27 |
|
|
|
27 |
|
|
|
|
₩ |
1,795,144 |
|
|
|
1,615,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The recoverable amount of Daewoo International Corporation was determined based on its value in use which was evaluated by an external valuation agency. The value in use was estimated by applying a discount rate of 7.2%
and a terminal growth rate of 2.5% in estimating the future cash flows based on managements 5-year business plan. The terminal growth rate used does not exceed the average growth rate of the Companys industry. No impairment loss of
goodwill was recognized during the year ended December 31, 2014 as the recoverable amount exceeded the carrying value of the CGU. |
The estimated recoverable amount of the CGU exceeded the carrying value by ₩390,997 million. The value in use is mainly affected by key
assumptions such as the discount rate and terminal growth rate used in the discounted cash flow model. If the discount rate increases by 0.5%, the value in use will decrease by 4.82%. If the terminal growth rate decreases by 0.5%, the value in use
will decrease by 2.81%.
Management believes that any reasonably possible change in the key assumptions used in estimating the recoverable
amount would not cause the estimated value in use to be lower than the carrying amount of the CGU.
(*2) |
The recoverable amount of POSCO Engineering Company was determined based on its value in use which was evaluated by an external valuation agency. The value in use was estimated by applying a discount rate of 9.75% and a
terminal growth rate of 1% in estimating the future cash flows based on managements 5-year business plan. The terminal growth rate used does not exceed the average growth rate of the Companys industry. No impairment loss of goodwill was
recognized during the year ended December 31, 2014 as the recoverable amount exceeded the carrying value of the CGU. |
77
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
The estimated recoverable amount of the CGU exceeded the carrying value by ₩223,374
million. The value in use is mainly affected by key assumptions such as the discount rate and terminal growth rate used in the discounted cash flow model. If the discount rate increases by 0.25%, the value in use will decrease by 3.24%. If the
terminal growth rate decreases by 0.25%, the value in use will decrease by 2.33%.
Management believes that any reasonably possible change
in the key assumptions used in estimating the recoverable amount would not cause the estimated value in use to be lower than the carrying amount of the CGU.
(*3) |
Recoverable amount of POSCO PLANTEC Co., Ltd. was determined based on fair value less cost to sell. No impairment loss of goodwill was recognized during the year ended December 31, 2014 as the recoverable amount
exceeded the carrying value of the CGU. |
16. Other Assets
Other current assets and other long-term assets as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Advance payments |
|
₩ |
845,114 |
|
|
|
1,138,976 |
|
Prepaid expenses |
|
|
129,914 |
|
|
|
130,272 |
|
Others |
|
|
1,397 |
|
|
|
1,420 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
976,425 |
|
|
|
1,270,668 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term advance payments |
|
₩ |
3,454 |
|
|
|
3,090 |
|
Long-term prepaid expenses |
|
|
243,933 |
|
|
|
204,449 |
|
Others |
|
|
260,162 |
|
|
|
157,659 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
507,549 |
|
|
|
365,198 |
|
|
|
|
|
|
|
|
|
|
78
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
17. Borrowings
(a) |
Short-term borrowings and current portion of long-term borrowings as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Bank |
|
Issuance date |
|
Maturity date |
|
Interest rate(%) |
|
2014 |
|
|
2013 |
|
Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts |
|
Bank of America and others |
|
January, 2014~
December, 2014 |
|
January, 2015~
December, 2015 |
|
0.1~6.0 |
|
₩ |
105,673 |
|
|
|
100,211 |
|
Short-term borrowings(* 1) |
|
HSBC and others |
|
January, 2014~
December, 2014 |
|
January, 2015~
December, 2015 |
|
0.4~12.3 |
|
|
9,138,804 |
|
|
|
7,256,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,244,477 |
|
|
|
7,356,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings(*1) |
|
Korea exim bank and others |
|
June, 2003~
December, 2014 |
|
January, 2015~
December, 2015 |
|
0.5~9.0 |
|
|
1,159,090 |
|
|
|
856,188 |
|
Less : Present value discount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(59 |
) |
Current portion of foreign loan |
|
NATIXIS |
|
March, 1986 |
|
September, 2015 |
|
2.0 |
|
|
418 |
|
|
|
927 |
|
Current portion of debentures(* 1) |
|
Korean Development
Bank and others |
|
August, 2009~
March, 2014 |
|
February, 2015~ December, 2015 |
|
1.3~6.0 |
|
|
1,793,252 |
|
|
|
2,502,246 |
|
Less: Current portion of discount on debentures issued |
|
|
|
|
|
|
|
|
|
|
(1,753 |
) |
|
|
(2,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,951,007 |
|
|
|
3,356,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
12,195,484 |
|
|
|
10,713,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Property, plant and equipment, trade and notes receivables, financial assets, available-for-sale financial assets and inventories amounting to ₩5,950,260 million, ₩27,621 million (three hundred eleven
sheets of notes receivables), ₩15,156 million, ₩6,726 million and ₩344,146 million, respectively, are provided as collateral related to short-term borrowings, long-term borrowings and debentures. |
(b) |
Long-term borrowings, excluding current portion as of December 31, 2014 and December 31, 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Bank |
|
Issuance date |
|
Maturity date |
|
Interest rate(%) |
|
2014 |
|
|
2013 |
|
Long-term borrowings(* 1) |
|
Korea exim bank and others |
|
January, 1983~ December, 2014 |
|
January, 2016~ December, 2099 |
|
0.5~10.0 |
|
₩ |
7,359,773 |
|
|
|
7,017,532 |
|
Less : Present value discount |
|
|
|
|
|
|
|
|
|
|
(109,949 |
) |
|
|
(43,897 |
) |
Foreign loan(* 2) |
|
NATIXIS |
|
March, 1986 |
|
March, 2017 |
|
2.0 |
|
|
627 |
|
|
|
1,140 |
|
Bonds(* 1) |
|
Korean Development Bank and others |
|
August, 2006~ December, 2014 |
|
February, 2016~ October, 2023 |
|
0.9~6.3 |
|
|
8,009,547 |
|
|
|
8,590,965 |
|
Less: Discount on debentures issued |
|
|
|
|
|
|
|
|
|
|
(27,225 |
) |
|
|
(45,372 |
) |
Add: Premium on debentures redemption |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
15,232,773 |
|
|
|
15,532,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Property, plant and equipment, trade and notes receivables, financial assets, available-for-sale financial assets and inventories amounting to ₩5,950,260 million, ₩27,621 million (three hundred eleven
sheets of notes receivables), ₩15,156 million, ₩6,726 million and ₩344,146 million, respectively, are provided as collateral related to short-term borrowings, long-term borrowings and debentures. |
(*2) |
Korea Development Bank has provided guarantees related to the foreign loan. |
79
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
18. Other Payables
Other payables as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Accounts payable |
|
₩ |
1,082,676 |
|
|
|
914,288 |
|
Accrued expenses |
|
|
740,250 |
|
|
|
873,613 |
|
Dividend payable |
|
|
12,077 |
|
|
|
11,709 |
|
Finance lease liabilities |
|
|
21,888 |
|
|
|
14,218 |
|
Withholdings |
|
|
337,822 |
|
|
|
315,026 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,194,713 |
|
|
|
2,128,854 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Accounts payable |
|
₩ |
81,344 |
|
|
|
116,160 |
|
Accrued expenses |
|
|
25,886 |
|
|
|
25,358 |
|
Finance lease liabilities |
|
|
24,815 |
|
|
|
39,257 |
|
Long-term withholdings |
|
|
37,941 |
|
|
|
25,859 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
169,986 |
|
|
|
206,634 |
|
|
|
|
|
|
|
|
|
|
19. Other Financial Liabilities
Other financial liabilities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Derivatives liabilities |
|
₩ |
84,146 |
|
|
|
128,370 |
|
Financial guarantee liabilities |
|
|
27,491 |
|
|
|
7,534 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
111,637 |
|
|
|
135,904 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Derivatives liabilities |
|
₩ |
64,926 |
|
|
|
229,096 |
|
Financial guarantee liabilities |
|
|
26,169 |
|
|
|
30,925 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
91,095 |
|
|
|
260,021 |
|
|
|
|
|
|
|
|
|
|
80
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
20. Provisions
(a) |
Provisions as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
Provision for bonus payments |
|
₩ |
49,505 |
|
|
|
|
|
|
|
52,377 |
|
|
|
|
|
Provision for construction warranties |
|
|
16,352 |
|
|
|
63,996 |
|
|
|
35,027 |
|
|
|
20,669 |
|
Provision for legal contingencies and claims(* 1) |
|
|
|
|
|
|
50,424 |
|
|
|
|
|
|
|
30,330 |
|
Provisions for the restoration(* 2) |
|
|
39,336 |
|
|
|
35,462 |
|
|
|
|
|
|
|
4,385 |
|
Others(* 3) |
|
|
44,837 |
|
|
|
73,357 |
|
|
|
19,925 |
|
|
|
90,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
150,030 |
|
|
|
223,239 |
|
|
|
107,329 |
|
|
|
146,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company recognized probable outflow of resources amounting to ₩44,309 million and ₩17,549 million as provisions for legal contingencies and asserted claims in relation to lawsuits against the Company
as of December 31, 2014 and 2013, respectively. |
(*2) |
Due to contamination of land near the Companys magnesium plant located in Gangneung, the Company recognized a provision of ₩89,433 million related to restoration costs. When estimating related costs, the
Company has assumed that it would use all of technologies and materials available to restore the land. In addition, the Company has applied a discount rate of 3.04% to measure the present value of these costs. |
(*3) |
As of December 31, 2014 and 2013, the amount includes a provision of ₩23,600 million and ₩74,888 million, respectively, for expected outflows of resources in connection with the subrogation and
financial joint guarantee for the construction projects of POSCO ENGINEERING & CONSTRUCTION Co., LTD.. |
(b) |
The following are the key assumptions concerning the future and other key sources of estimation uncertainties at the end of the reporting period. |
|
|
|
|
|
Key assumptions for the estimation |
Provision for bonus payments Provision for
construction warranties Provision for legal contingencies and claims |
|
Estimations based on financial performance
Estimations based on historical warranty data Estimations based
on the degree of probability of an unfavorable outcome and the ability to make a sufficient reliable estimate of the amount of loss |
(c) |
Changes in provisions for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Reversal |
|
|
Others(*1) |
|
|
Ending |
|
Provision for bonus payments |
|
₩ |
52,377 |
|
|
|
45,071 |
|
|
|
(46,761 |
) |
|
|
(1,646 |
) |
|
|
464 |
|
|
|
49,505 |
|
Provision for construction warranties |
|
|
55,696 |
|
|
|
34,410 |
|
|
|
(15,719 |
) |
|
|
(4,677 |
) |
|
|
10,638 |
|
|
|
80,348 |
|
Provision for legal contingencies and claims |
|
|
30,330 |
|
|
|
15,289 |
|
|
|
|
|
|
|
(7,716 |
) |
|
|
12,521 |
|
|
|
50,424 |
|
Provisions for the restoration |
|
|
4,385 |
|
|
|
89,565 |
|
|
|
(19,328 |
) |
|
|
|
|
|
|
176 |
|
|
|
74,798 |
|
Others |
|
|
110,813 |
|
|
|
282,406 |
|
|
|
(258,571 |
) |
|
|
(19,523 |
) |
|
|
3,069 |
|
|
|
118,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
253,601 |
|
|
|
466,741 |
|
|
|
(340,379 |
) |
|
|
(33,562 |
) |
|
|
26,868 |
|
|
|
373,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes adjustments of foreign currency translation differences and others. |
81
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Reversal |
|
|
Others(*1) |
|
|
Ending |
|
Provision for bonus payments |
|
₩ |
42,904 |
|
|
|
48,362 |
|
|
|
(36,126 |
) |
|
|
(2,058 |
) |
|
|
(705 |
) |
|
|
52,377 |
|
Provision for construction warranties |
|
|
50,716 |
|
|
|
27,008 |
|
|
|
(15,356 |
) |
|
|
(3,887 |
) |
|
|
(2,785 |
) |
|
|
55,696 |
|
Provision for legal contingencies and claims |
|
|
30,920 |
|
|
|
5,090 |
|
|
|
(4,353 |
) |
|
|
(1,327 |
) |
|
|
|
|
|
|
30,330 |
|
Provisions for the restoration |
|
|
4,371 |
|
|
|
130 |
|
|
|
|
|
|
|
|
|
|
|
(116 |
) |
|
|
4,385 |
|
Others |
|
|
49,018 |
|
|
|
85,947 |
|
|
|
(23,576 |
) |
|
|
(1,597 |
) |
|
|
1,021 |
|
|
|
110,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
177,929 |
|
|
|
166,537 |
|
|
|
(79,411 |
) |
|
|
(8,869 |
) |
|
|
(2,585 |
) |
|
|
253,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes adjustments of foreign currency translation differences and others. |
21. Employee Benefits
(a) |
Defined contribution plans |
The expenses related to post-employment benefit plans under defined
contribution plans for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Expense related to post-employment benefit under defined contribution plans |
|
₩ |
23,414 |
|
|
|
19,126 |
|
(b) |
Defined benefit plans |
|
1) |
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Present value of funded obligations |
|
₩ |
1,713,074 |
|
|
|
1,515,426 |
|
Fair value of plan assets |
|
|
(1,427,918 |
) |
|
|
(1,247,483 |
) |
Present value of non-funded obligations |
|
|
5,169 |
|
|
|
5,217 |
|
|
|
|
|
|
|
|
|
|
Net defined benefit liabilities |
|
₩ |
290,325 |
|
|
|
273,160 |
|
|
|
|
|
|
|
|
|
|
82
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
Changes in present value of defined benefit obligations for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Defined benefit obligation at the beginning of period |
|
₩ |
1,520,643 |
|
|
|
1,410,399 |
|
Current service costs |
|
|
230,445 |
|
|
|
238,386 |
|
Interest costs |
|
|
54,737 |
|
|
|
47,039 |
|
Remeasurements : |
|
|
85,166 |
|
|
|
(12,615 |
) |
- Gain from change in demograhpic assumptions |
|
|
18,911 |
|
|
|
(5,624 |
) |
- Loss from change in financial assumptions |
|
|
54,131 |
|
|
|
7,667 |
|
- Others |
|
|
12,124 |
|
|
|
(14,658 |
) |
Business combinations |
|
|
48,695 |
|
|
|
11,379 |
|
Benefits paid |
|
|
(160,792 |
) |
|
|
(129,038 |
) |
Others |
|
|
(60,651 |
) |
|
|
(44,907 |
) |
|
|
|
|
|
|
|
|
|
Defined benefit obligation at the end of period |
|
₩ |
1,718,243 |
|
|
|
1,520,643 |
|
|
|
|
|
|
|
|
|
|
|
3) |
Changes in fair value of plan assets for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Fair value of plan assets at the beginning of period |
|
₩ |
1,247,483 |
|
|
|
1,064,711 |
|
Interest on plan assets |
|
|
47,296 |
|
|
|
37,677 |
|
Remeasurement of plan assets |
|
|
(11,236 |
) |
|
|
(1,482 |
) |
Contributions to plan assets(* 1) |
|
|
273,867 |
|
|
|
254,771 |
|
Business combinations |
|
|
30,863 |
|
|
|
9,372 |
|
Benefits paid |
|
|
(109,352 |
) |
|
|
(82,624 |
) |
Others |
|
|
(51,003 |
) |
|
|
(34,942 |
) |
|
|
|
|
|
|
|
|
|
Fair value of plan assets at the end of period |
|
₩ |
1,427,918 |
|
|
|
1,247,483 |
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company expects to make an estimated contribution of ₩272,767 million to the defined benefit plan assets in 2015. |
|
4) |
The fair value of plan assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Equity instruments |
|
₩ |
43,010 |
|
|
|
35,364 |
|
Debt instruments |
|
|
236,665 |
|
|
|
98,686 |
|
Deposits |
|
|
997,414 |
|
|
|
958,509 |
|
Others |
|
|
150,829 |
|
|
|
154,924 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,427,918 |
|
|
|
1,247,483 |
|
|
|
|
|
|
|
|
|
|
83
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
5) |
The amounts recognized in consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current service costs |
|
₩ |
230,445 |
|
|
|
238,386 |
|
Net interest costs(* 1) |
|
|
7,441 |
|
|
|
9,362 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
237,886 |
|
|
|
247,748 |
|
|
|
|
|
|
|
|
|
|
(*1) |
The actual return on plan assets amounted to ₩36,060 million and ₩36,195 million for the years ended December 31, 2014 and 2013, respectively. |
The above expenses by function were as follows :
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Cost of sales |
|
₩ |
172,668 |
|
|
|
180,090 |
|
Selling and administrative expenses |
|
|
64,960 |
|
|
|
66,327 |
|
Others |
|
|
258 |
|
|
|
1,331 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
237,886 |
|
|
|
247,748 |
|
|
|
|
|
|
|
|
|
|
|
6) |
Accumulated actuarial gains (losses), net of tax recognized in other comprehensive income for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
(239,005 |
) |
|
|
(245,229 |
) |
Current actuarial gains (losses) |
|
|
(75,101 |
) |
|
|
6,224 |
|
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
(314,106 |
) |
|
|
(239,005 |
) |
|
|
|
|
|
|
|
|
|
|
7) |
The principal actuarial assumptions as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(%) |
|
2014 |
|
|
2013 |
|
Discount rate |
|
|
2.58~8.58 |
|
|
|
3.47~4.91 |
|
Expected future increase in salaries(* 1) |
|
|
1.00~10.22 |
|
|
|
1.07~5.75 |
|
(*1) |
The expected future increase in salaries is based on the average salary increase rate for past three- years. |
All assumptions are reviewed at the end of the reporting period. Additionally, the total estimated defined benefit obligation includes actuarial assumptions
associated with the long-term characteristics of the defined benefit plan.
84
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
8) |
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1% Increase |
|
|
1% Decrease |
|
(in millions of Won) |
|
Amount |
|
|
Percentage(%) |
|
|
Amount |
|
|
Percentage(%) |
|
Discount rate |
|
₩ |
(126,866 |
) |
|
|
(7.4 |
) |
|
|
143,406 |
|
|
|
8.3 |
|
Expected future increases in salaries |
|
|
143,117 |
|
|
|
8.3 |
|
|
|
(107,206 |
) |
|
|
(6.2 |
) |
|
9) |
As of December 31, 2014 the maturity of the expected benefit payments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Within 1 year |
|
|
1 year - 5 years |
|
|
5 years - 10 years |
|
|
10 years - 20 years |
|
|
After 20 years |
|
|
Total |
|
Benefits paid |
|
₩ |
49,514 |
|
|
|
292,921 |
|
|
|
747,429 |
|
|
|
959,413 |
|
|
|
283,963 |
|
|
|
2,333,240 |
|
The maturity analysis of the defined benefit obligation was nominal amounts of defined benefit obligations
using expected remaining working lives of employees.
22. Other Liabilities
Other liabilities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Due to customers for contract work |
|
₩ |
1,041,946 |
|
|
|
898,605 |
|
Advances received |
|
|
763,168 |
|
|
|
1,176,621 |
|
Unearned revenue |
|
|
21,627 |
|
|
|
29,217 |
|
Withholdings |
|
|
167,002 |
|
|
|
192,497 |
|
Deferred revenue |
|
|
|
|
|
|
202 |
|
Others(* 1) |
|
|
236,021 |
|
|
|
268,032 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,229,764 |
|
|
|
2,565,174 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Advances received |
|
₩ |
108,496 |
|
|
|
201,432 |
|
Unearned revenue |
|
|
1,170 |
|
|
|
1,465 |
|
Others(* 1) |
|
|
45,987 |
|
|
|
57,954 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
155,653 |
|
|
|
260,851 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes other current liabilities amounting to ₩214,731 million, ₩261,855 million and other long-term liabilities amounting to ₩8,819 million and ₩8,935 million as of December 31, 2014
and 2013, respectively, due to proportionate consolidation of joint operations which are owned by POSCOs subsidiaries including MT. Thorley. |
85
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
23. Financial Instruments
(a) |
Classification of financial instruments |
|
1) |
Financial assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Derivatives assets held for trading |
|
₩ |
96,266 |
|
|
|
78,222 |
|
Available-for-sale financial assets |
|
|
2,420,241 |
|
|
|
4,166,384 |
|
Held-to-maturity financial assets |
|
|
17,093 |
|
|
|
3,834 |
|
Loans and receivables |
|
|
19,501,763 |
|
|
|
21,206,326 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
22,035,363 |
|
|
|
25,454,766 |
|
|
|
|
|
|
|
|
|
|
|
2) |
Financial liabilities as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
₩ |
149,072 |
|
|
|
357,466 |
|
|
|
|
|
|
|
|
|
|
Financial liabilities evaluated as amortized cost |
|
|
|
|
|
|
|
|
Trade accounts and note payable |
|
|
4,039,255 |
|
|
|
4,231,881 |
|
Borrowings |
|
|
27,428,257 |
|
|
|
26,246,605 |
|
Financial guarantee liabilities |
|
|
53,660 |
|
|
|
38,459 |
|
Others |
|
|
2,101,354 |
|
|
|
2,253,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
33,622,526 |
|
|
|
32,770,934 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
33,771,598 |
|
|
|
33,128,400 |
|
|
|
|
|
|
|
|
|
|
|
3) |
Finance income and costs by category of financial instrument for the years ended December 31, 2014 and 2013 were as follows: |
¨ December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
(in millions of Won) |
|
Interest income(cost) |
|
|
Dividend income |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income(loss) |
|
Financial assets at fair value through profit or loss |
|
₩ |
|
|
|
|
|
|
|
|
|
|
|
|
256,941 |
|
|
|
|
|
|
|
69,952 |
|
|
|
326,893 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
309 |
|
|
|
47,825 |
|
|
|
|
|
|
|
181,774 |
|
|
|
(369,723 |
) |
|
|
|
|
|
|
(139,815 |
) |
|
|
(333,891 |
) |
Held-to-maturity financial assets |
|
|
260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(244 |
) |
|
|
16 |
|
|
|
|
|
Loans and receivables |
|
|
227,685 |
|
|
|
|
|
|
|
301,623 |
|
|
|
(20,912 |
) |
|
|
|
|
|
|
2,259 |
|
|
|
510,655 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(282,638 |
) |
|
|
|
|
|
|
(98,003 |
) |
|
|
(380,641 |
) |
|
|
|
|
Financial liabilities at amortized cost |
|
|
(795,585 |
) |
|
|
|
|
|
|
(288,513 |
) |
|
|
(38,594 |
) |
|
|
|
|
|
|
(19,641 |
) |
|
|
(1,142,333 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(567,331 |
) |
|
|
47,825 |
|
|
|
13,110 |
|
|
|
96,571 |
|
|
|
(369,723 |
) |
|
|
(45,677 |
) |
|
|
(825,225 |
) |
|
|
(333,891 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
(in millions of Won) |
|
Interest income(cost) |
|
|
Dividend income |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income(loss) |
|
Financial assets at fair value through profit or loss |
|
₩ |
549 |
|
|
|
|
|
|
|
|
|
|
|
348,126 |
|
|
|
|
|
|
|
67,951 |
|
|
|
416,626 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
4,010 |
|
|
|
59,181 |
|
|
|
|
|
|
|
101,842 |
|
|
|
(280,237 |
) |
|
|
|
|
|
|
(115,204 |
) |
|
|
412,346 |
|
Held-to-maturity financial assets |
|
|
480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84 |
|
|
|
564 |
|
|
|
|
|
Loans and receivables |
|
|
255,359 |
|
|
|
|
|
|
|
(49,541 |
) |
|
|
(20,009 |
) |
|
|
|
|
|
|
(145 |
) |
|
|
185,664 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(264,739 |
) |
|
|
|
|
|
|
(287,864 |
) |
|
|
(552,603 |
) |
|
|
|
|
Financial liabilities at amortized cost |
|
|
(657,681 |
) |
|
|
|
|
|
|
285,922 |
|
|
|
|
|
|
|
|
|
|
|
(11,703 |
) |
|
|
(383,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(397,283 |
) |
|
|
59,181 |
|
|
|
236,381 |
|
|
|
165,220 |
|
|
|
(280,237 |
) |
|
|
(231,677 |
) |
|
|
(448,415 |
) |
|
|
412,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The carrying amount of financial assets represents the Companys
maximum exposure to credit risk. The maximum exposure to credit risk as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Cash and cash equivalents |
|
₩ |
3,811,202 |
|
|
|
4,208,562 |
|
Financial assets at fair value through profit or loss |
|
|
96,266 |
|
|
|
78,222 |
|
Available-for-sale financial assets |
|
|
125,486 |
|
|
|
97,618 |
|
Held-to-maturity financial assets |
|
|
17,093 |
|
|
|
3,834 |
|
Loans and other receivables |
|
|
3,825,170 |
|
|
|
5,408,163 |
|
Trade accounts and notes receivable, net |
|
|
11,786,055 |
|
|
|
11,492,601 |
|
Long-term trade accounts and notes receivable, net |
|
|
79,336 |
|
|
|
97,000 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
19,740,608 |
|
|
|
21,386,000 |
|
|
|
|
|
|
|
|
|
|
The Company provided financial guarantees for the repayment of loans of associates, joint ventures and third
parties. As of December 31, 2014 and 2013, the maximum exposure to credit risk related to the financial guarantees amounted to ₩4,780,700 million and ₩4,520,052 million, respectively.
|
2) |
Impairment losses on financial assets |
|
|
Allowance for doubtful accounts as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Trade accounts and notes receivable |
|
₩ |
605,470 |
|
|
|
439,073 |
|
Other accounts receivable |
|
|
94,579 |
|
|
|
81,470 |
|
Loans |
|
|
234,107 |
|
|
|
127,990 |
|
Other assets |
|
|
19,997 |
|
|
|
13,118 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
954,153 |
|
|
|
661,651 |
|
|
|
|
|
|
|
|
|
|
87
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
Impairment losses on financial assets for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Bad debt expenses on trade receivables |
|
₩ |
108,933 |
|
|
|
90,119 |
|
Impairment of available-for-sale financial assets |
|
|
369,723 |
|
|
|
280,237 |
|
Other bad debt expenses(* 1) |
|
|
96,373 |
|
|
|
111,065 |
|
Impairment of held-to-maturity financial assets |
|
|
319 |
|
|
|
|
|
Less: Recovery of impairment of held-to-maturity financial assets |
|
|
(75 |
) |
|
|
(84 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
575,273 |
|
|
|
481,337 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Other bad debt expenses are mainly related to other receivables and loans. |
|
|
The aging and impairment losses of trade accounts and notes receivable as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Trade accounts and notes receivable |
|
|
Impairment |
|
|
Trade accounts and notes receivable |
|
|
Impairment |
|
Not due |
|
₩ |
8,721,366 |
|
|
|
53,093 |
|
|
|
8,465,892 |
|
|
|
48,147 |
|
Over due less than 1 |
|
|
1,867,838 |
|
|
|
7,171 |
|
|
|
1,849,829 |
|
|
|
12,675 |
|
1 month - 3 months |
|
|
273,981 |
|
|
|
3,323 |
|
|
|
239,498 |
|
|
|
3,124 |
|
3 months - 12 months |
|
|
201,213 |
|
|
|
16,893 |
|
|
|
503,171 |
|
|
|
10,681 |
|
over 12 months |
|
|
1,406,463 |
|
|
|
524,990 |
|
|
|
970,284 |
|
|
|
364,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
12,470,861 |
|
|
|
605,470 |
|
|
|
12,028,674 |
|
|
|
439,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the allowance for doubtful accounts for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
661,651 |
|
|
|
474,877 |
|
Bad debt expenses |
|
|
108,933 |
|
|
|
90,119 |
|
Other bad debt expenses |
|
|
96,373 |
|
|
|
111,065 |
|
Others |
|
|
87,196 |
|
|
|
(14,410 |
) |
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
954,153 |
|
|
|
661,651 |
|
|
|
|
|
|
|
|
|
|
88
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
1) |
Contractual maturities for non-derivative financial liabilities, including estimated interest, are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Book value |
|
|
Contractual cash flow |
|
|
Within 1 year |
|
|
1 year - 5 years |
|
|
After 5 years |
|
Trade accounts payable |
|
₩ |
4,039,255 |
|
|
|
4,039,255 |
|
|
|
3,950,786 |
|
|
|
88,469 |
|
|
|
|
|
Financial guarantee liabilities(* 1) |
|
|
53,660 |
|
|
|
4,780,700 |
|
|
|
4,780,700 |
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
|
2,101,354 |
|
|
|
2,101,354 |
|
|
|
1,931,368 |
|
|
|
169,986 |
|
|
|
|
|
Borrowings |
|
|
27,428,257 |
|
|
|
30,185,854 |
|
|
|
13,231,111 |
|
|
|
11,066,493 |
|
|
|
5,888,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
33,622,526 |
|
|
|
41,107,163 |
|
|
|
23,893,965 |
|
|
|
11,324,948 |
|
|
|
5,888,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. |
|
2) |
The maturity analysis of derivative financial liabilities is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Within 1 year |
|
|
1 year-5 years |
|
|
After 5 years |
|
|
Total |
|
Currency forward |
|
₩ |
29,080 |
|
|
|
13,115 |
|
|
|
|
|
|
|
42,195 |
|
Currency futures |
|
|
54,102 |
|
|
|
|
|
|
|
|
|
|
|
54,102 |
|
Currency swaps |
|
|
|
|
|
|
48,581 |
|
|
|
3,230 |
|
|
|
51,811 |
|
Interest swaps |
|
|
349 |
|
|
|
|
|
|
|
|
|
|
|
349 |
|
Other forwards |
|
|
615 |
|
|
|
|
|
|
|
|
|
|
|
615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
84,146 |
|
|
|
61,696 |
|
|
|
3,230 |
|
|
|
149,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The Company has exposure to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of
December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Assets |
|
|
Liabilities |
|
|
Assets |
|
|
Liabilities |
|
USD |
|
₩ |
4,771,164 |
|
|
|
8,328,804 |
|
|
|
3,929,623 |
|
|
|
8,953,287 |
|
EUR |
|
|
387,102 |
|
|
|
683,685 |
|
|
|
365,021 |
|
|
|
408,542 |
|
JPY |
|
|
185,891 |
|
|
|
1,145,643 |
|
|
|
482,691 |
|
|
|
1,727,946 |
|
Others |
|
|
140,699 |
|
|
|
45,414 |
|
|
|
372,715 |
|
|
|
212,287 |
|
89
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
As of December 31, 2014 and 2013, provided that functional currency against foreign currencies other than functional currency hypothetically strengthens or weakens by 10%, the changes in gain or loss during the
years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
10% increase |
|
|
10% decrease |
|
|
10% increase |
|
|
10% decrease |
|
USD |
|
₩ |
(355,764 |
) |
|
|
355,764 |
|
|
|
(502,366 |
) |
|
|
502,366 |
|
EUR |
|
|
(29,658 |
) |
|
|
29,658 |
|
|
|
(4,352 |
) |
|
|
4,352 |
|
JPY |
|
|
(95,975 |
) |
|
|
95,975 |
|
|
|
(124,526 |
) |
|
|
124,526 |
|
|
1) |
The carrying amount of interest-bearing financial instruments as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Fixed rate |
|
|
|
|
|
|
|
|
Financial assets |
|
₩ |
6,250,418 |
|
|
|
8,195,153 |
|
Financial liabilities |
|
|
(17,258,183 |
) |
|
|
(15,633,891 |
) |
|
|
|
|
|
|
|
|
|
Variable rate |
|
₩ |
(11,007,765 |
) |
|
|
(7,438,738 |
) |
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
₩ |
(10,170,074 |
) |
|
|
(10,612,712 |
) |
|
|
|
|
|
|
|
|
|
|
2) |
Sensitivity analysis on the fair value of financial instruments with fixed interest rate |
The
Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Company does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model.
Therefore a change in interest rates at the reporting date would not affect profit or loss.
|
3) |
Sensitivity analysis on the fair value of financial instruments with variable interest rate |
As
of December 31, 2014 and 2013, provided that other factors remain the same and the interest rate of borrowings with floating rates increases or decreases by 1%, the changes in interest expense for the years ended December 31, 2014 and 2013
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
1% increase |
|
|
1% decrease |
|
|
1% increase |
|
|
1% decrease |
|
Variable rate financial instruments |
|
₩ |
(101,701 |
) |
|
|
101,701 |
|
|
|
(106,127 |
) |
|
|
106,127 |
|
90
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Book value |
|
|
Fair value |
|
|
Book value |
|
|
Fair value |
|
Assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(* 1) |
|
₩ |
1,963,289 |
|
|
|
1,963,289 |
|
|
|
3,560,515 |
|
|
|
3,560,515 |
|
Derivatives assets held for trading(* 2) |
|
|
96,266 |
|
|
|
96,266 |
|
|
|
78,222 |
|
|
|
78,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,059,555 |
|
|
|
2,059,555 |
|
|
|
3,638,737 |
|
|
|
3,638,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets measured amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
3,811,202 |
|
|
|
3,811,202 |
|
|
|
4,208,562 |
|
|
|
4,208,562 |
|
Trade accounts and notes receivable, net |
|
|
11,865,391 |
|
|
|
11,865,391 |
|
|
|
11,589,601 |
|
|
|
11,589,601 |
|
Loans and other receivables, net |
|
|
3,825,170 |
|
|
|
3,825,170 |
|
|
|
5,408,163 |
|
|
|
5,408,163 |
|
Held-to-maturity financial assets |
|
|
17,093 |
|
|
|
17,093 |
|
|
|
3,834 |
|
|
|
3,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,518,856 |
|
|
|
19,518,856 |
|
|
|
21,210,160 |
|
|
|
21,210,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading(* 2) |
|
|
149,072 |
|
|
|
149,072 |
|
|
|
357,466 |
|
|
|
357,466 |
|
Liabilities measured amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
|
4,039,255 |
|
|
|
4,039,255 |
|
|
|
4,231,881 |
|
|
|
4,231,881 |
|
Borrowings |
|
|
27,428,257 |
|
|
|
27,756,615 |
|
|
|
26,246,605 |
|
|
|
26,550,721 |
|
Financial guarantee liabilities |
|
|
53,660 |
|
|
|
53,660 |
|
|
|
38,459 |
|
|
|
38,459 |
|
Others |
|
|
2,101,354 |
|
|
|
2,101,354 |
|
|
|
2,253,989 |
|
|
|
2,253,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
33,622,526 |
|
|
|
33,950,884 |
|
|
|
32,770,934 |
|
|
|
33,075,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The fair value of available-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted available-for-sale financial
assets is calculated using the valuation results from an external pricing service in which weighted average cost of capital of evaluated companies is used as a discount rate. Available-for-sale financial assets which are not measured at fair value
are excluded. |
(*2) |
The fair value of derivatives is measured using valuation models such as Black-Scholes model and others in which the market yields on government bonds are used as a discount rate. |
(*3) |
The fair value of financial assets and liabilities measured at amortized cost is determined at the present value of estimated future cash flows discounted at the current market interest rate. The fair value is
calculated for the disclosures in the notes. On the other hand, the Company has not performed fair value measurement for the financial assets and liabilities measured at amortized cost except borrowings since the fair value is close to their
carrying amounts. |
91
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
Interest rates used for determining fair value |
Interest rates used to discount estimated cash
flows as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
Interest rate of borrowings(%) |
|
|
0.22~4.92 |
|
|
|
0.76~5.18 |
|
|
3) |
The fair value hierarchy |
|
¨ |
The fair values of financial instruments by fair value hierarchy as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
₩ |
1,808,384 |
|
|
|
|
|
|
|
154,905 |
|
|
|
1,963,289 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
96,266 |
|
|
|
|
|
|
|
96,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
1,808,384 |
|
|
|
96,266 |
|
|
|
154,905 |
|
|
|
2,059,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
₩ |
|
|
|
|
149,072 |
|
|
|
|
|
|
|
149,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
₩ |
2,816,484 |
|
|
|
|
|
|
|
744,031 |
|
|
|
3,560,515 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
78,222 |
|
|
|
|
|
|
|
78,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
2,816,484 |
|
|
|
78,222 |
|
|
|
744,031 |
|
|
|
3,638,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
₩ |
|
|
|
|
357,466 |
|
|
|
|
|
|
|
357,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¨ |
Changes in fair value of financial instruments classified as Level 3 for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
744,031 |
|
|
|
758,673 |
|
Valuation |
|
|
(60,445 |
) |
|
|
(15,423 |
) |
Acquisition and others(* 1) |
|
|
65,232 |
|
|
|
19,766 |
|
Disposal and others |
|
|
(593,913 |
) |
|
|
(18,985 |
) |
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
154,905 |
|
|
|
744,031 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Included transferred amount due to change in fair value hierarchy. |
92
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(g) |
Offsetting financial assets and financial liabilities |
As of December 31, 2014 and 2013, financial assets
and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross amounts of
recognized financial |
|
|
Net amounts of
financial instruments |
|
|
Related amounts not set off in the statement of financial position |
|
|
|
|
(in millions of Won) |
|
Gross amounts of recognized financial instruments |
|
|
instruments set off in the statement of financial position |
|
|
presented in the statement of financial position |
|
|
Financial instruments |
|
|
Cash collateral received or pledged |
|
|
Net amount |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
106,985 |
|
|
|
|
|
|
|
106,985 |
|
|
|
(106,985 |
) |
|
|
|
|
|
|
|
|
Derivatives(* 1) |
|
|
79,286 |
|
|
|
|
|
|
|
79,286 |
|
|
|
(79,286 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
186,271 |
|
|
|
|
|
|
|
186,271 |
|
|
|
(186,271 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
106,985 |
|
|
|
|
|
|
|
106,985 |
|
|
|
(106,985 |
) |
|
|
|
|
|
|
|
|
Derivatives(* 1) |
|
|
128,980 |
|
|
|
|
|
|
|
128,980 |
|
|
|
(79,286 |
) |
|
|
(6,912 |
) |
|
|
42,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
₩ |
235,965 |
|
|
|
|
|
|
|
235,965 |
|
|
|
(186,271 |
) |
|
|
(6,912 |
) |
|
|
42,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Some of derivative contract are made under International Swaps and Derivatives Association (ISDA) master netting agreements. In general, under such agreements the amounts owed by each counter party on a single day in
respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other. In certain circumstances (i.e. when a default occurs), all standing transactions under the agreement are
terminated, the termination value is assessed and only a single amount is payable in settlement of all transactions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross amounts of
recognized financial |
|
|
Net amounts of
financial instruments |
|
|
Related amounts not set off in the statement of financial position |
|
(in millions of Won) |
|
Gross amounts of recognized financial instruments |
|
|
instruments set off in the statement of financial position |
|
|
presented in the statement of financial position |
|
|
Financial instruments |
|
|
Cash collateral received or pledged |
|
|
Net amount |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
73,956 |
|
|
|
|
|
|
|
73,956 |
|
|
|
(73,956 |
) |
|
|
|
|
|
|
|
|
Derivatives(* 1) |
|
|
64,408 |
|
|
|
|
|
|
|
64,408 |
|
|
|
(64,408 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
138,364 |
|
|
|
|
|
|
|
138,364 |
|
|
|
(138,364 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
73,956 |
|
|
|
|
|
|
|
73,956 |
|
|
|
(73,956 |
) |
|
|
|
|
|
|
|
|
Derivatives(* 1) |
|
|
108,405 |
|
|
|
|
|
|
|
108,405 |
|
|
|
(64,408 |
) |
|
|
(3,410 |
) |
|
|
40,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
₩ |
182,361 |
|
|
|
|
|
|
|
182,361 |
|
|
|
(138,364 |
) |
|
|
(3,410 |
) |
|
|
40,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Some of derivative contract are made under International Swaps and Derivatives Association (ISDA) master netting agreements. In general, under such agreements the amounts owed by each counter party on a single day in
respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other. In certain circumstances (i.e. when a default occurs), all standing transactions under the agreement are
terminated, the termination value is assessed and only a single amount is payable in settlement of all transactions. |
93
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
24. Share Capital and Capital Surplus
(a) |
Share capital as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(Share, in Won) |
|
2014 |
|
|
2013 |
|
Authorized shares |
|
|
200,000,000 |
|
|
|
200,000,000 |
|
Par value |
|
₩ |
5,000 |
|
|
|
5,000 |
|
Issued shares(* 1) |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Shared capital(* 2) |
|
₩ |
482,403,125,000 |
|
|
|
482,403,125,000 |
|
(*1) |
As of December 31, 2014, total shares of ADRs of 51,622,460 are equivalent to 12,905,615 of common stock. |
(*2) |
As of December 31, 2014, the difference between the ending balance of common stock and the par value of issued common stock is ₩46,469 million due to retirement of 9,293,790 treasury stocks.
|
(b) |
The changes in issued common stock for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
|
Issued |
|
|
Treasury |
|
|
outstanding |
|
|
Issued |
|
|
Treasury |
|
|
outstanding |
|
(share) |
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
Beginning |
|
|
87,186,835 |
|
|
|
(7,403,211 |
) |
|
|
79,783,624 |
|
|
|
87,186,835 |
|
|
|
(9,942,391 |
) |
|
|
77,244,444 |
|
Disposal of treasury shares |
|
|
|
|
|
|
209,404 |
|
|
|
209,404 |
|
|
|
|
|
|
|
2,539,180 |
|
|
|
2,539,180 |
|
Ending |
|
|
87,186,835 |
|
|
|
(7,193,807 |
) |
|
|
79,993,028 |
|
|
|
87,186,835 |
|
|
|
(7,403,211 |
) |
|
|
79,783,624 |
|
(c) |
Capital surplus as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Share premium |
|
₩ |
463,825 |
|
|
|
463,825 |
|
Gain on disposal of treasury shares |
|
|
783,791 |
|
|
|
769,215 |
|
Other capital deficit |
|
|
(163,898 |
) |
|
|
(154,774 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,083,718 |
|
|
|
1,078,266 |
|
|
|
|
|
|
|
|
|
|
94
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
25. Hybrid Bonds
(a) |
Hybrid bonds classified as equity as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of interest (%) |
|
|
2014 |
|
|
2013 |
|
Hybrid bond 1-1(* 1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.30 |
|
|
₩ |
800,000 |
|
|
|
800,000 |
|
Hybrid bond 1-2(* 1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.60 |
|
|
|
200,000 |
|
|
|
200,000 |
|
Issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
996,919 |
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Details of hybrid bonds as of December 31, 2014 are as follows: |
|
|
|
|
|
(in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 |
Issue price |
|
800,000 |
|
200,000 |
|
|
|
Maturity date |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
|
|
Interest rate |
|
Issue date ~ 2018-06-12 : 4.3% |
|
Issue date ~ 2023-06-12 : 4.6% |
|
|
reset every 5 years as follows; |
|
reset every 10 years as follows; |
|
|
After 5 years : return on government bond (5 years) + 1.3% |
|
After 10 years : return on government bond (10 years) + 1.4% |
|
|
After 10 years : additionally +0.25% according to Step-up clauses |
|
After 10 years : additionally +0.25% according to Step-up clauses |
|
|
After 25 years : additionally +0.75% |
|
After 30 years : additionally +0.75% |
|
|
|
Interest payments condition |
|
Quarterly |
|
Quarterly |
|
|
(Optional deferral of interest payment is available to the Company) |
|
(Optional deferral of interest payment is available to the Company) |
|
|
|
Others |
|
The Company can call the hybrid bond at year 5 and interest |
|
The Company can call the hybrid bond at year 10 and interest |
|
|
payment date afterwards |
|
payment date afterwards |
The Company holds the right to extend the maturity dates of the hybrid bonds and to defer interest payments
for the hybrid bonds. If interest payments for the hybrid bonds are deferred, the Company cannot declare or pay dividends attributable to common stock. Since the Company has an unconditional right to avoid delivering cash or another financial asset
to settle a contractual obligation, the hybrid bonds have been classified as equity instruments. The hybrid bond holders preference in the event of liquidation is higher than the common stock holders, but lower than other creditors. The
interest accumulated but not paid on the hybrid bonds as of December 31, 2014 amounts to ₩2,301 million.
95
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
POSCO ENERGY Co., Ltd., a subsidiary of the Company, issued hybrid bonds, which are classified as non-controlling interests in the consolidated financial statements. Hybrid bonds as of December 31, 2014 and 2013
are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Interest rate(%) |
|
|
2014 |
|
|
2013 |
|
Hybrid bond 1-1(* 1) |
|
|
2013-08-29 |
|
|
|
2043-08-29 |
|
|
|
4.66 |
|
|
₩ |
165,000 |
|
|
|
165,000 |
|
Hybrid bond 1-2(* 1) |
|
|
2013-08-29 |
|
|
|
2043-08-29 |
|
|
|
4.72 |
|
|
|
165,000 |
|
|
|
165,000 |
|
Hybrid bond 1-3(* 1) |
|
|
2013-08-29 |
|
|
|
2043-08-29 |
|
|
|
4.72 |
|
|
|
30,000 |
|
|
|
30,000 |
|
Hybrid bond 1-4(* 1) |
|
|
2013-08-29 |
|
|
|
2043-08-29 |
|
|
|
5.21 |
|
|
|
140,000 |
|
|
|
140,000 |
|
Issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,532 |
) |
|
|
(1,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
498,468 |
|
|
|
498,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Details of hybrid bonds of POSCO ENERGY Co., Ltd .as of December 31, 2014 are as follows: |
|
|
|
|
|
|
|
(in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 and 1-3 |
|
Hybrid bond 1-4 |
Issue price |
|
165,000 |
|
195,000 |
|
140,000 |
|
|
|
|
Maturity date |
|
30 years (The Company has a right to |
|
30 years (The Company has a right to |
|
30 years (The Company has a right to |
|
|
extend the maturity date) |
|
extend the maturity date) |
|
extend the maturity date) |
|
|
|
|
Interest rate |
|
Issue date ~ 2018-08-29 : 4.66% |
|
Issue date ~ 2018-08-29 : 4.72% |
|
Issue date ~ 2018-08-29 : 5.21% |
|
|
reset every 5 years as follows; |
|
reset every 5 years as follows; |
|
reset every 5 years as follows; |
|
|
After 5 years : return on government bond (5 years) + 1.39% |
|
After 5 years : return on government bond (5 years) + 1.45% |
|
After 5 years : return on government bond (5 years) + 1.55% |
|
|
After 10 years : additionally +0.25% according to Step-up clauses |
|
After 10 years : additionally +0.25% according to Step-up clauses |
|
After 10 years : additionally +0.25% according to Step-up clauses |
|
|
After 30 years : additionally +0.75% |
|
After 30 years : additionally +0.75% |
|
After 30 years : additionally +0.75% |
|
|
|
|
Interest payments condition |
|
Quarterly |
|
Quarterly |
|
Quarterly |
|
|
(Optional deferral of interest payment |
|
(Optional deferral of interest payment |
|
(Optional deferral of interest payment |
|
|
is available to the Company) |
|
is available to the Company) |
|
is available to the Company) |
|
|
|
|
Others |
|
The Company can call the hybrid bond |
|
The Company can call the hybrid bond |
|
The Company can call the hybrid bond |
|
|
at year 5 and interest payment date |
|
at year 5 and interest payment date |
|
at year 5 and interest payment date |
|
|
afterwards |
|
afterwards |
|
afterwards |
POSCO ENERGY CO., LTD., a subsidiary, holds the right to extend the maturity dates of the hybrid bonds and to
defer interest payments for the hybrid bonds. If interest payments for the hybrid bonds are deferred, POSCO ENERGY CO., LTD. cannot declare or pay dividends attributable to common stock. Since the subsidiary has an unconditional right to avoid
delivering cash or another financial asset to settle a contractual obligation, the hybrid bonds have been classified as equity (non-controlling interests) in the Companys consolidated financial statements. The hybrid bond holders
preference in the event of liquidation is higher than the common stock holders, but lower than other creditors. The interest accumulated but not paid on the hybrid bonds as of December 31, 2014 amounts to ₩2,063 million.
96
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
26. Reserves
(a) |
Reserves as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Accumulated comprehensive loss of investments in associates and joint ventures |
|
₩ |
(344,942 |
) |
|
|
(295,946 |
) |
Changes in the unrealized fair value of available-for-sale investments |
|
|
144,783 |
|
|
|
480,409 |
|
Currency translation differences |
|
|
(187,740 |
) |
|
|
(189,085 |
) |
Others |
|
|
(20,874 |
) |
|
|
(18,454 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
(408,773 |
) |
|
|
(23,076 |
) |
|
|
|
|
|
|
|
|
|
(b) |
Changes in fair value of available-for-sale investments for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning balance |
|
₩ |
480,409 |
|
|
|
67,956 |
|
Changes in the unrealized fair value of available-for-sale investments |
|
|
(411,671 |
) |
|
|
312,196 |
|
Reclassification to profit of loss upon disposal |
|
|
(176,124 |
) |
|
|
(73,848 |
) |
Impairment of avaible-for-sale investments |
|
|
267,920 |
|
|
|
170,892 |
|
Others |
|
|
(15,751 |
) |
|
|
3,213 |
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
₩ |
144,783 |
|
|
|
480,409 |
|
|
|
|
|
|
|
|
|
|
27. Treasury Shares
Based on the Board of Directors resolution, the Company holds treasury shares for business purposes including price stabilization. The changes in
treasury shares for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(shares, in millions of Won) |
|
Number of shares |
|
|
Amount |
|
|
Number of shares |
|
|
Amount |
|
Beginning |
|
|
7,403,211 |
|
|
₩ |
1,579,124 |
|
|
|
9,942,391 |
|
|
₩ |
2,391,406 |
|
Disposal of treasury shares |
|
|
(209,404 |
) |
|
|
(44,667 |
) |
|
|
(2,539,180 |
) |
|
|
(812,282 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
|
7,193,807 |
|
|
₩ |
1,534,457 |
|
|
|
7,403,211 |
|
|
₩ |
1,579,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
97
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
28. Revenue
Details of revenue for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Sales of goods |
|
₩ |
53,636,957 |
|
|
|
50,921,090 |
|
Service sales |
|
|
2,962,404 |
|
|
|
3,614,227 |
|
Construction sales |
|
|
8,137,773 |
|
|
|
6,886,007 |
|
Rental income |
|
|
18,876 |
|
|
|
24,735 |
|
Others |
|
|
342,435 |
|
|
|
418,591 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
65,098,445 |
|
|
|
61,864,650 |
|
|
|
|
|
|
|
|
|
|
29. Construction Contracts
(a) |
Construction contracts in progress as of December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in million of Won) |
|
2014 |
|
|
2013 |
|
Aggregate amount of costs incurred |
|
₩ |
12,235,027 |
|
|
|
10,380,202 |
|
Add: Recognized profits |
|
|
801,060 |
|
|
|
950,010 |
|
Less: Recognized losses |
|
|
(449,227 |
) |
|
|
(467,023 |
) |
Cumulative construction revenue |
|
|
12,586,860 |
|
|
|
10,863,189 |
|
Less: Progress billing |
|
|
(12,039,346 |
) |
|
|
(10,145,691 |
) |
Foreign currency gains and losses |
|
|
(5,721 |
) |
|
|
(1,379 |
) |
Others |
|
|
(55,312 |
) |
|
|
(39,795 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
486,481 |
|
|
|
676,324 |
|
|
|
|
|
|
|
|
|
|
(b) |
Unbilled amount due from customers and due to customers for contract work as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in million of Won) |
|
2014 |
|
|
2013 |
|
Unbilled due from customers for contract work |
|
₩ |
1,528,427 |
|
|
|
1,574,929 |
|
Due to customers for contract work |
|
|
(1,041,946 |
) |
|
|
(898,605 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
486,481 |
|
|
|
676,324 |
|
|
|
|
|
|
|
|
|
|
(c) |
When the outcome of a construction contract can be estimated reliably, contract revenue is recognized in profit or loss in proportion to the stage of completion of the contract. The Company estimates the stage of
completion of the contract based on the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs. |
The estimated total contract costs are based on the nature and characteristics of an individual contract, historical costs of similar projects,
and current circumstances. Only those contract costs that reflect work performed are included in costs incurred to date.
98
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
The following are the key assumptions for the estimated contract cost.
|
|
|
|
|
Key assumptions for the estimation |
Material |
|
Estimations based on recent purchasing contracts, market price and quoted price |
Labor cost |
|
Estimations based on standard monthly and daily labor cost |
Outsourcing cost |
|
Estimations based on the historical costs of similar projects, market price and quoted price |
The management continually reviews all estimates involved in such construction contracts and adjusts them as
necessary.
30. Selling and Administrative Expenses
(a) |
Administrative expenses |
Administrative expenses for years ended December 31, 2014 and
2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Wages and salaries |
|
₩ |
781,433 |
|
|
|
754,819 |
|
Expenses related to post-employment benefits |
|
|
66,744 |
|
|
|
67,482 |
|
Other employee benefits |
|
|
174,131 |
|
|
|
165,751 |
|
Travel |
|
|
50,257 |
|
|
|
53,003 |
|
Depreciation and amortization |
|
|
273,220 |
|
|
|
228,496 |
|
Communication |
|
|
9,579 |
|
|
|
14,601 |
|
Electricity expenses |
|
|
11,746 |
|
|
|
13,389 |
|
Taxes and public dues |
|
|
55,647 |
|
|
|
55,177 |
|
Rental |
|
|
137,366 |
|
|
|
110,191 |
|
Repairs |
|
|
13,924 |
|
|
|
5,708 |
|
Entertainment |
|
|
17,633 |
|
|
|
17,295 |
|
Advertising |
|
|
104,485 |
|
|
|
105,663 |
|
Research & development |
|
|
175,195 |
|
|
|
192,805 |
|
Service fees |
|
|
215,974 |
|
|
|
240,034 |
|
Supplies |
|
|
10,856 |
|
|
|
15,031 |
|
Vehicles maintenance |
|
|
12,685 |
|
|
|
12,109 |
|
Industry association fee |
|
|
11,856 |
|
|
|
11,924 |
|
Training |
|
|
9,979 |
|
|
|
12,056 |
|
Conference |
|
|
17,620 |
|
|
|
17,004 |
|
Contribution to provisions |
|
|
16,056 |
|
|
|
19,075 |
|
Bad debt allowance |
|
|
108,933 |
|
|
|
90,119 |
|
Others |
|
|
34,437 |
|
|
|
30,073 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,309,756 |
|
|
|
2,231,805 |
|
|
|
|
|
|
|
|
|
|
99
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Selling expenses for the years ended December 31, 2014 and 2013 were as
follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Freight and custody expenses |
|
₩ |
1,551,705 |
|
|
|
1,432,935 |
|
Operating expenses for distribution center |
|
|
10,782 |
|
|
|
9,838 |
|
Sales commissions |
|
|
66,359 |
|
|
|
73,922 |
|
Sales advertising |
|
|
4,615 |
|
|
|
3,228 |
|
Sales promotion |
|
|
25,777 |
|
|
|
27,129 |
|
Sample |
|
|
3,477 |
|
|
|
4,751 |
|
Sales insurance premium |
|
|
39,538 |
|
|
|
27,031 |
|
Contract cost |
|
|
49,891 |
|
|
|
37,323 |
|
Others |
|
|
7,974 |
|
|
|
15,963 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,760,118 |
|
|
|
1,632,120 |
|
|
|
|
|
|
|
|
|
|
31. Research and Development Expenditures Recognized as Expenses
Research and development expenditures recognized as expenses for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Selling and administrative expenses |
|
₩ |
175,195 |
|
|
|
192,805 |
|
Cost of sales |
|
|
353,149 |
|
|
|
369,842 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
528,344 |
|
|
|
562,647 |
|
|
|
|
|
|
|
|
|
|
100
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
32. Reconciliation of Operating Profit
The operating profit in the Companys consolidated statements of comprehensive income prepared in accordance with K-IFRS included in this report differs
from that in its consolidated statements of comprehensive income prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Companys results from operating activities as presented in the
Companys consolidated statements of comprehensive income prepared in accordance with K-IFRS for the years ended December 31, 2014 and 2013 to the operating profit as presented in the Companys consolidated statements of comprehensive
income prepared in accordance with IFRS as issued by IASB for each of the corresponding years.
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Operating profits on the statement of comprehensive income (K-IFRS) (note 34) |
|
₩ |
3,213,530 |
|
|
|
2,996,134 |
|
|
|
|
|
|
|
|
|
|
Add |
|
|
|
|
|
|
|
|
Gains on disposals of assets held for sale |
|
|
48,232 |
|
|
|
101,611 |
|
Gains on disposals of investment in associates |
|
|
41,258 |
|
|
|
7,668 |
|
Gains on disposals of property, plant and equipment |
|
|
15,039 |
|
|
|
14,177 |
|
Reversal of impairment loss on intangible assets |
|
|
2,794 |
|
|
|
122 |
|
Reversal of other provision expenses |
|
|
19,769 |
|
|
|
2,924 |
|
Retal revenues |
|
|
1,743 |
|
|
|
1,588 |
|
Outsourcing income |
|
|
14,200 |
|
|
|
25,428 |
|
Gain on disposals of wastes |
|
|
11,357 |
|
|
|
16,541 |
|
Gain from claim compensation |
|
|
29,171 |
|
|
|
14,525 |
|
Penalty income from early termination of contracts |
|
|
34,606 |
|
|
|
16,477 |
|
Grant income |
|
|
1,441 |
|
|
|
2,287 |
|
Others |
|
|
49,796 |
|
|
|
25,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
269,406 |
|
|
|
229,073 |
|
|
|
|
|
|
|
|
|
|
Deduct |
|
|
|
|
|
|
|
|
Other bad debt expenses |
|
|
(96,373 |
) |
|
|
(111,065 |
) |
Losses on disposals of assets held for sale |
|
|
(14 |
) |
|
|
(26,498 |
) |
Impairment losses on assets held for sale |
|
|
(17,205 |
) |
|
|
(1,814 |
) |
Losses on disposals of property, plant and equipment |
|
|
(50,006 |
) |
|
|
(121,133 |
) |
Impairment losses on property, plant and equipment |
|
|
(64,833 |
) |
|
|
(9,742 |
) |
Impairment losses on intangible assets |
|
|
(55,220 |
) |
|
|
(125,316 |
) |
Idle tangible assets expenses |
|
|
(12,214 |
) |
|
|
(17,624 |
) |
Impairment losses on other non-current assets |
|
|
(38,137 |
) |
|
|
(9,000 |
) |
Other provision expenses |
|
|
(126,601 |
) |
|
|
(65,896 |
) |
Donations |
|
|
(69,544 |
) |
|
|
(60,940 |
) |
Loss on disposals of investment in associates |
|
|
(2,556 |
) |
|
|
(19,404 |
) |
Loss on disposals of wastes |
|
|
(16,386 |
) |
|
|
(15,231 |
) |
Penalty and additional tax payments (* 1) |
|
|
(352,173 |
) |
|
|
(19,340 |
) |
Others |
|
|
(78,412 |
) |
|
|
(47,803 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(979,674 |
) |
|
|
(650,806 |
) |
|
|
|
|
|
|
|
|
|
Operating profit (IFRS as issued by IASB) |
|
₩ |
2,503,262 |
|
|
|
2,574,401 |
|
|
|
|
|
|
|
|
|
|
101
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
33. Finance Income and Costs
Details of finance income and costs for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Finance income |
|
|
|
|
|
|
|
|
Interest income |
|
₩ |
228,254 |
|
|
|
260,398 |
|
Dividend income |
|
|
47,825 |
|
|
|
59,181 |
|
Gain on foreign currency transactions |
|
|
1,022,253 |
|
|
|
997,591 |
|
Gain on foreign currency translations |
|
|
453,471 |
|
|
|
511,143 |
|
Gains on derivatives transactions |
|
|
327,738 |
|
|
|
370,343 |
|
Gains on valuations of derivatives |
|
|
73,279 |
|
|
|
72,297 |
|
Gains on disposals of available-for-sale financial assets |
|
|
236,484 |
|
|
|
105,563 |
|
Others |
|
|
7,458 |
|
|
|
4,322 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,396,762 |
|
|
|
2,380,838 |
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
|
Interest expenses |
|
₩ |
795,585 |
|
|
|
657,681 |
|
Loss on foreign currency transactions |
|
|
1,033,723 |
|
|
|
927,453 |
|
Loss on foreign currency translations |
|
|
428,891 |
|
|
|
344,900 |
|
Loss on derivatives transactions |
|
|
353,435 |
|
|
|
286,574 |
|
Loss on valuation of derivatives |
|
|
101,330 |
|
|
|
291,465 |
|
Impairment loss on available-for-sale financial assets |
|
|
369,723 |
|
|
|
280,237 |
|
Loss on disposals of available-for-sale financial assets |
|
|
54,710 |
|
|
|
3,721 |
|
Loss on financial guarantee |
|
|
10,077 |
|
|
|
5,880 |
|
Others |
|
|
74,513 |
|
|
|
31,342 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,221,987 |
|
|
|
2,829,253 |
|
|
|
|
|
|
|
|
|
|
102
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
34. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Other non-operating income |
|
|
|
|
|
|
|
|
Gains on disposals of assets held for sale |
|
₩ |
48,232 |
|
|
|
101,611 |
|
Gains on disposals of investment in associates |
|
|
41,258 |
|
|
|
7,668 |
|
Gains on disposals of property, plant and equipment |
|
|
15,039 |
|
|
|
14,177 |
|
Reversal of impairment loss on intangible assets |
|
|
2,794 |
|
|
|
122 |
|
Reversal of other provision expenses |
|
|
19,769 |
|
|
|
2,924 |
|
Retal revenues |
|
|
1,743 |
|
|
|
1,588 |
|
Outsourcing income |
|
|
14,200 |
|
|
|
25,428 |
|
Gain on disposals of wastes |
|
|
11,357 |
|
|
|
16,541 |
|
Gain from claim compensation |
|
|
29,171 |
|
|
|
14,525 |
|
Penalty income from early termination of contracts |
|
|
34,606 |
|
|
|
16,477 |
|
Grant income |
|
|
1,441 |
|
|
|
2,287 |
|
Others |
|
|
49,796 |
|
|
|
25,725 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
269,406 |
|
|
|
229,073 |
|
|
|
|
|
|
|
|
|
|
Other non-operating expenses |
|
|
|
|
|
|
|
|
Other bad debt expenses |
|
₩ |
96,373 |
|
|
|
111,065 |
|
Losses on disposals of assets held for sale |
|
|
14 |
|
|
|
26,498 |
|
Impairment losses on assets held for sale |
|
|
17,205 |
|
|
|
1,814 |
|
Losses on disposals of property, plant and equipment |
|
|
50,006 |
|
|
|
121,133 |
|
Impairment losses on property, plant and equipment |
|
|
64,833 |
|
|
|
9,742 |
|
Impairment losses on intangible assets |
|
|
55,220 |
|
|
|
125,316 |
|
Idle tangible assets expenses |
|
|
12,214 |
|
|
|
17,624 |
|
Impairment losses on other non-current assets |
|
|
38,137 |
|
|
|
9,000 |
|
Other provision expenses |
|
|
126,601 |
|
|
|
65,896 |
|
Donations |
|
|
69,544 |
|
|
|
60,940 |
|
Loss on disposals of investment in associates |
|
|
2,556 |
|
|
|
19,404 |
|
Loss on disposals of wastes |
|
|
16,386 |
|
|
|
15,231 |
|
Penalty and additional tax payments (* 1) |
|
|
352,173 |
|
|
|
19,340 |
|
Others |
|
|
78,412 |
|
|
|
47,803 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
979,674 |
|
|
|
650,806 |
|
|
|
|
|
|
|
|
|
|
(*1) |
As a result of Korea National Tax Services periodic audit of tax payments and refunds of the Company, the Company recognized additional tax payments amounting to ₩271,646 million, primarily related to VAT,
during the year ended December 31, 2014. |
103
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
35. Expenses by Nature
Expenses that are recorded by nature as cost of sales, selling, general and administrative expenses and other non-operating expenses in the statements of
comprehensive income for the years ended December 31, 2014 and 2013 were as follows (excluding finance costs and income tax expense):
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Changes in inventories |
|
₩ |
9,439,560 |
|
|
|
12,163,136 |
|
Cost of merchandises sold |
|
|
30,899,849 |
|
|
|
25,909,164 |
|
Employee benefits expenses(* 2) |
|
|
3,197,902 |
|
|
|
3,174,316 |
|
Outsourced processing cost |
|
|
9,294,977 |
|
|
|
9,462,946 |
|
Electricity expenses |
|
|
1,370,390 |
|
|
|
1,109,765 |
|
Depreciation expenses(* 1) |
|
|
2,894,609 |
|
|
|
2,505,536 |
|
Amortization expenses |
|
|
343,940 |
|
|
|
180,014 |
|
Freight and custody expenses |
|
|
1,551,705 |
|
|
|
1,432,935 |
|
Sales commissions |
|
|
66,359 |
|
|
|
73,922 |
|
Loss on disposal of property, plant and equipment |
|
|
50,006 |
|
|
|
121,133 |
|
Donations |
|
|
69,544 |
|
|
|
60,940 |
|
Other expenses |
|
|
3,685,748 |
|
|
|
3,325,515 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
62,864,589 |
|
|
|
59,519,322 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Includes depreciation expense of investment property. |
(*2) |
The details of employee benefits expenses for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Wages and salaries |
|
₩ |
2,936,602 |
|
|
|
2,907,442 |
|
Expenses related to post-employment benefits |
|
|
261,300 |
|
|
|
266,874 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,197,902 |
|
|
|
3,174,316 |
|
|
|
|
|
|
|
|
|
|
36. Income Taxes
(a) |
Income tax expense for the years ended December 31, 2014 and 2013 was as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current income taxes |
|
₩ |
790,055 |
|
|
|
615,771 |
|
Deferred income taxes |
|
|
(82,075 |
) |
|
|
108,034 |
|
Items credited (charged) directly in equity |
|
|
113,505 |
|
|
|
(132,808 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
₩ |
821,485 |
|
|
|
590,997 |
|
|
|
|
|
|
|
|
|
|
104
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
The following table reconciles the expected amount of income tax expense based on POSCOs statutory rates (24.2%) to the actual amount of taxes recorded by the Company for the years ended December 31,
2014 and 2013. |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Net income before income tax expense |
|
₩ |
1,378,144 |
|
|
|
1,946,177 |
|
Income tax expense computed at statutory rate |
|
|
333,049 |
|
|
|
470,975 |
|
Adjustments: |
|
|
488,436 |
|
|
|
120,022 |
|
Tax credits |
|
|
(72,290 |
) |
|
|
(169,166 |
) |
Effect on result of tax audit |
|
|
84,148 |
|
|
|
|
|
Over(under) provision from prior years |
|
|
(463 |
) |
|
|
(1,178 |
) |
Tax effects due to amendments to local income tax |
|
|
39,890 |
|
|
|
|
|
Investment in subsidiaries, associates and joint ventures |
|
|
371,876 |
|
|
|
251,014 |
|
Tax effects due to permanent differences |
|
|
55,757 |
|
|
|
7,703 |
|
Others |
|
|
9,518 |
|
|
|
31,649 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
₩ |
821,485 |
|
|
|
590,997 |
|
|
|
|
|
|
|
|
|
|
Effective tax rate (%) |
|
|
59.61 |
% |
|
|
30.37 |
% |
(c) |
The income taxes credited (charged) directly to equity during the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Net changes in the unrealized fair value of available-for-sale securities |
|
₩ |
105,639 |
|
|
|
(139,679 |
) |
Gain on sale of treasury shares |
|
|
(4,654 |
) |
|
|
(1,707 |
) |
Others |
|
|
12,520 |
|
|
|
8,578 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
113,505 |
|
|
|
(132,808 |
) |
|
|
|
|
|
|
|
|
|
105
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
The movements in deferred tax assets (liabilities) for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Beginning |
|
|
Inc. (Dec.) |
|
|
Ending |
|
|
Beginning |
|
|
Inc. (Dec.) |
|
|
Ending |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
₩ |
(28,462 |
) |
|
|
16,049 |
|
|
|
(12,413 |
) |
|
|
(29,013 |
) |
|
|
551 |
|
|
|
(28,462 |
) |
Allowance for doubtful accounts |
|
|
149,603 |
|
|
|
46,132 |
|
|
|
195,735 |
|
|
|
112,428 |
|
|
|
37,175 |
|
|
|
149,603 |
|
Reserve for technology developments |
|
|
(380,665 |
) |
|
|
121,632 |
|
|
|
(259,033 |
) |
|
|
(375,930 |
) |
|
|
(4,735 |
) |
|
|
(380,665 |
) |
PPE - Depreciation |
|
|
(33,342 |
) |
|
|
26,667 |
|
|
|
(6,675 |
) |
|
|
(46,574 |
) |
|
|
13,232 |
|
|
|
(33,342 |
) |
Share of profit or loss of equity-accounted investees |
|
|
(89,305 |
) |
|
|
(7,388 |
) |
|
|
(96,693 |
) |
|
|
(96,374 |
) |
|
|
7,069 |
|
|
|
(89,305 |
) |
Reserve for inventory valuation |
|
|
(1,522 |
) |
|
|
3,513 |
|
|
|
1,991 |
|
|
|
(4,082 |
) |
|
|
2,560 |
|
|
|
(1,522 |
) |
PPE - Revaluation |
|
|
(1,011,593 |
) |
|
|
(211,006 |
) |
|
|
(1,222,599 |
) |
|
|
(799,932 |
) |
|
|
(211,661 |
) |
|
|
(1,011,593 |
) |
Prepaid expenses |
|
|
28,385 |
|
|
|
(10,924 |
) |
|
|
17,461 |
|
|
|
31,240 |
|
|
|
(2,855 |
) |
|
|
28,385 |
|
PPE - Impairment loss |
|
|
25,518 |
|
|
|
(3,556 |
) |
|
|
21,962 |
|
|
|
28,755 |
|
|
|
(3,237 |
) |
|
|
25,518 |
|
Loss on foreign currency translation |
|
|
(189,202 |
) |
|
|
120,090 |
|
|
|
(69,112 |
) |
|
|
(63,345 |
) |
|
|
(125,857 |
) |
|
|
(189,202 |
) |
Defined benefit obligations |
|
|
100,356 |
|
|
|
20,328 |
|
|
|
120,684 |
|
|
|
70,624 |
|
|
|
29,732 |
|
|
|
100,356 |
|
Plan assets |
|
|
(58,666 |
) |
|
|
5,631 |
|
|
|
(53,035 |
) |
|
|
(46,421 |
) |
|
|
(12,245 |
) |
|
|
(58,666 |
) |
Provision for construction losses |
|
|
4,273 |
|
|
|
680 |
|
|
|
4,953 |
|
|
|
2,227 |
|
|
|
2,046 |
|
|
|
4,273 |
|
Provision for construction warranty |
|
|
16,674 |
|
|
|
3,697 |
|
|
|
20,371 |
|
|
|
14,841 |
|
|
|
1,833 |
|
|
|
16,674 |
|
Accrued income |
|
|
(2,915 |
) |
|
|
(776 |
) |
|
|
(3,691 |
) |
|
|
(3,197 |
) |
|
|
282 |
|
|
|
(2,915 |
) |
Others |
|
|
479,586 |
|
|
|
(112,130 |
) |
|
|
367,456 |
|
|
|
309,571 |
|
|
|
170,015 |
|
|
|
479,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(991,277 |
) |
|
|
18,639 |
|
|
|
(972,638 |
) |
|
|
(895,182 |
) |
|
|
(96,095 |
) |
|
|
(991,277 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on valuation of available-for-sale investments |
|
|
(115,673 |
) |
|
|
105,639 |
|
|
|
(10,034 |
) |
|
|
24,006 |
|
|
|
(139,679 |
) |
|
|
(115,673 |
) |
Others |
|
|
54,716 |
|
|
|
12,520 |
|
|
|
67,236 |
|
|
|
46,138 |
|
|
|
8,578 |
|
|
|
54,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(60,957 |
) |
|
|
118,159 |
|
|
|
57,202 |
|
|
|
70,144 |
|
|
|
(131,101 |
) |
|
|
(60,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carryforward and others |
|
|
437,642 |
|
|
|
(137,276 |
) |
|
|
300,366 |
|
|
|
339,108 |
|
|
|
98,534 |
|
|
|
437,642 |
|
Deferred tax effect due to unrealized gain (losses) and others |
|
|
42,761 |
|
|
|
(64,388 |
) |
|
|
(21,627 |
) |
|
|
19,095 |
|
|
|
23,666 |
|
|
|
42,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(571,831 |
) |
|
|
(64,866 |
) |
|
|
(636,697 |
) |
|
|
(466,835 |
) |
|
|
(104,996 |
) |
|
|
(571,831 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(e) |
Deferred tax assets and liabilities for the years ended December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
₩ |
|
|
|
|
(12,413 |
) |
|
|
(12,413 |
) |
|
|
|
|
|
|
(28,462 |
) |
|
|
(28,462 |
) |
Allowance for doubtful accounts |
|
|
197,159 |
|
|
|
(1,424 |
) |
|
|
195,735 |
|
|
|
149,695 |
|
|
|
(92 |
) |
|
|
149,603 |
|
Reserve for technology developments |
|
|
|
|
|
|
(259,033 |
) |
|
|
(259,033 |
) |
|
|
|
|
|
|
(380,665 |
) |
|
|
(380,665 |
) |
PPE - Depreciation |
|
|
39,412 |
|
|
|
(46,087 |
) |
|
|
(6,675 |
) |
|
|
23,265 |
|
|
|
(56,607 |
) |
|
|
(33,342 |
) |
Share of profit or loss of equity-accounted investees |
|
|
|
|
|
|
(96,693 |
) |
|
|
(96,693 |
) |
|
|
|
|
|
|
(89,305 |
) |
|
|
(89,305 |
) |
Reserve for inventory valuation |
|
|
7,294 |
|
|
|
(5,303 |
) |
|
|
1,991 |
|
|
|
4,392 |
|
|
|
(5,914 |
) |
|
|
(1,522 |
) |
PPE - Revaluation |
|
|
|
|
|
|
(1,222,599 |
) |
|
|
(1,222,599 |
) |
|
|
|
|
|
|
(1,011,593 |
) |
|
|
(1,011,593 |
) |
Prepaid expenses |
|
|
17,461 |
|
|
|
|
|
|
|
17,461 |
|
|
|
28,385 |
|
|
|
|
|
|
|
28,385 |
|
PPE - Impairment loss |
|
|
23,489 |
|
|
|
(1,527 |
) |
|
|
21,962 |
|
|
|
25,518 |
|
|
|
|
|
|
|
25,518 |
|
Loss on foreign currency translation |
|
|
83,521 |
|
|
|
(152,633 |
) |
|
|
(69,112 |
) |
|
|
243,772 |
|
|
|
(432,974 |
) |
|
|
(189,202 |
) |
Defined benefit obligations |
|
|
125,758 |
|
|
|
(5,074 |
) |
|
|
120,684 |
|
|
|
110,891 |
|
|
|
(10,535 |
) |
|
|
100,356 |
|
Plan assets |
|
|
|
|
|
|
(53,035 |
) |
|
|
(53,035 |
) |
|
|
22 |
|
|
|
(58,688 |
) |
|
|
(58,666 |
) |
Provision for construction losses |
|
|
4,953 |
|
|
|
|
|
|
|
4,953 |
|
|
|
4,273 |
|
|
|
|
|
|
|
4,273 |
|
Provision for construction warranty |
|
|
20,371 |
|
|
|
|
|
|
|
20,371 |
|
|
|
16,674 |
|
|
|
|
|
|
|
16,674 |
|
Accrued income |
|
|
|
|
|
|
(3,691 |
) |
|
|
(3,691 |
) |
|
|
5 |
|
|
|
(2,920 |
) |
|
|
(2,915 |
) |
Others |
|
|
506,950 |
|
|
|
(139,494 |
) |
|
|
367,456 |
|
|
|
506,291 |
|
|
|
(26,705 |
) |
|
|
479,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,026,368 |
|
|
|
(1,999,006 |
) |
|
|
(972,638 |
) |
|
|
1,113,183 |
|
|
|
(2,104,460 |
) |
|
|
(991,277 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on valuation of available-for-sale investments |
|
|
238,489 |
|
|
|
(248,523 |
) |
|
|
(10,034 |
) |
|
|
128,938 |
|
|
|
(244,611 |
) |
|
|
(115,673 |
) |
Others |
|
|
91,636 |
|
|
|
(24,400 |
) |
|
|
67,236 |
|
|
|
70,441 |
|
|
|
(15,725 |
) |
|
|
54,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
330,125 |
|
|
|
(272,923 |
) |
|
|
57,202 |
|
|
|
199,379 |
|
|
|
(260,336 |
) |
|
|
(60,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carryforward and others |
|
|
339,959 |
|
|
|
(39,593 |
) |
|
|
300,366 |
|
|
|
481,256 |
|
|
|
(43,614 |
) |
|
|
437,642 |
|
Deferred tax effect due to unrealized gain (losses) and others |
|
|
601,265 |
|
|
|
(622,892 |
) |
|
|
(21,627 |
) |
|
|
530,823 |
|
|
|
(488,062 |
) |
|
|
42,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,297,717 |
|
|
|
(2,934,414 |
) |
|
|
(636,697 |
) |
|
|
2,324,641 |
|
|
|
(2,896,472 |
) |
|
|
(571,831 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f) |
As of December 31, 2014, the Company did not recognize income tax effects associated with deductible temporary differences of ₩3,763,639 million (deferred tax assets of ₩910,801 million) mainly
relating to loss of subsidiaries and affiliates because its realization is not considered probable. |
As of December 31,
2014, the Company did not recognize income tax effects associated with taxable temporary differences of ₩3,104,205 million (deferred tax liabilities of ₩751,218 million) mainly relating to increase in retained earnings of subsidiaries
since it is probable that the temporary difference will not reverse in the foreseeable future.
107
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
37. Earnings per Share
(a) |
Basic and diluted earnings per share for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(Won, except per share information) |
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
Profit attribute to controlling interest |
|
₩ |
626,099,302,937 |
|
|
|
1,376,396,068,069 |
|
Interests of hybrid bonds |
|
|
(33,048,799,997 |
) |
|
|
(18,313,914,551 |
) |
Weighted-average number of common shares outstanding(* 1) |
|
|
79,801,539 |
|
|
|
78,009,654 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
|
₩ |
7,432 |
|
|
|
17,409 |
|
|
|
|
|
|
|
|
|
|
(*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
(shares) |
|
2014 |
|
|
2013 |
|
Total number of common shares issued |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Weighted-average number of treasury shares |
|
|
(7,385,296 |
) |
|
|
(9,177,181 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding |
|
|
79,801,539 |
|
|
|
78,009,654 |
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014, the Company has no potential dilutive common shares. Accordingly, diluted
earnings per share is identical to basic earnings per share.
108
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
38. Related Party Transactions
(a) |
Significant transactions with related parties for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Sales and others(*1) |
|
|
Purchase and others(*2) |
|
|
|
|
|
|
|
|
|
|
|
Purchase of |
|
|
Purchase of |
|
|
Outsourced |
|
|
|
|
|
|
|
|
Sales |
|
|
Others |
|
|
Total |
|
|
material |
|
|
fixed assets |
|
|
processing |
|
|
Others |
|
|
Total |
|
Subsidiaries(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
22,659 |
|
|
|
16,789 |
|
|
|
39,448 |
|
|
|
544,202 |
|
|
|
247,286 |
|
|
|
3,689 |
|
|
|
30,852 |
|
|
|
826,029 |
|
POSCO Processing & Service |
|
|
1,075,567 |
|
|
|
8,649 |
|
|
|
1,084,216 |
|
|
|
785,943 |
|
|
|
|
|
|
|
|
|
|
|
1,681 |
|
|
|
787,624 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
444,513 |
|
|
|
12 |
|
|
|
444,525 |
|
|
|
|
|
|
|
|
|
|
|
12,313 |
|
|
|
195 |
|
|
|
12,508 |
|
POSCO ICT(* 5) |
|
|
929 |
|
|
|
2,593 |
|
|
|
3,522 |
|
|
|
356 |
|
|
|
209,893 |
|
|
|
26,231 |
|
|
|
161,173 |
|
|
|
397,653 |
|
POSMATE |
|
|
520 |
|
|
|
2,178 |
|
|
|
2,698 |
|
|
|
411 |
|
|
|
28 |
|
|
|
16,475 |
|
|
|
34,188 |
|
|
|
51,102 |
|
eNtoB Corporation |
|
|
|
|
|
|
3 |
|
|
|
3 |
|
|
|
297,119 |
|
|
|
10,433 |
|
|
|
137 |
|
|
|
21,073 |
|
|
|
328,762 |
|
POSCO CHEMTECH |
|
|
532,973 |
|
|
|
26,537 |
|
|
|
559,510 |
|
|
|
513,759 |
|
|
|
5,449 |
|
|
|
301,149 |
|
|
|
923 |
|
|
|
821,280 |
|
POSCO M-TECH |
|
|
180 |
|
|
|
24 |
|
|
|
204 |
|
|
|
117,940 |
|
|
|
2,385 |
|
|
|
200,622 |
|
|
|
6,887 |
|
|
|
327,834 |
|
POSCO ENERGY CO., LTD. |
|
|
177,517 |
|
|
|
1,230 |
|
|
|
178,747 |
|
|
|
|
|
|
|
2,263 |
|
|
|
|
|
|
|
20 |
|
|
|
2,283 |
|
POSCO TMC Co., Ltd. |
|
|
240,318 |
|
|
|
9 |
|
|
|
240,327 |
|
|
|
|
|
|
|
|
|
|
|
1,056 |
|
|
|
1,611 |
|
|
|
2,667 |
|
POSCO AST |
|
|
503,452 |
|
|
|
5 |
|
|
|
503,457 |
|
|
|
10,396 |
|
|
|
|
|
|
|
57,355 |
|
|
|
2,671 |
|
|
|
70,422 |
|
POSHIMETAL Co., Ltd. |
|
|
11,261 |
|
|
|
3,660 |
|
|
|
14,921 |
|
|
|
166,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166,442 |
|
Daewoo International Corporation |
|
|
3,558,652 |
|
|
|
20,652 |
|
|
|
3,579,304 |
|
|
|
90,361 |
|
|
|
|
|
|
|
|
|
|
|
3,857 |
|
|
|
94,218 |
|
POSCO Specialty Steel Co., Ltd. |
|
|
5,313 |
|
|
|
201,927 |
|
|
|
207,240 |
|
|
|
40,124 |
|
|
|
|
|
|
|
1,939 |
|
|
|
266 |
|
|
|
42,329 |
|
POSCO America Corporation |
|
|
747,933 |
|
|
|
2 |
|
|
|
747,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,794 |
|
|
|
1,794 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141,767 |
|
POSCO Asia Co., Ltd. |
|
|
2,167,148 |
|
|
|
89 |
|
|
|
2,167,237 |
|
|
|
169,945 |
|
|
|
|
|
|
|
10,006 |
|
|
|
1,969 |
|
|
|
181,920 |
|
POSCO (Thailand) Company Limited |
|
|
55,221 |
|
|
|
46 |
|
|
|
55,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
8 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
79,783 |
|
|
|
|
|
|
|
79,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
|
|
19 |
|
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
136,836 |
|
|
|
|
|
|
|
136,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
5 |
|
POSCO JAPAN Co., Ltd. |
|
|
1,329,947 |
|
|
|
4 |
|
|
|
1,329,951 |
|
|
|
15,165 |
|
|
|
2,269 |
|
|
|
3 |
|
|
|
2,279 |
|
|
|
19,716 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
107,587 |
|
|
|
74 |
|
|
|
107,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
287,468 |
|
|
|
929 |
|
|
|
288,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
444,407 |
|
|
|
6,053 |
|
|
|
450,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAEWOO INTERNATIONAL SINGAPORE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,742 |
|
|
|
|
|
|
|
|
|
|
|
11,513 |
|
|
|
69,255 |
|
Others |
|
|
680,066 |
|
|
|
1,827 |
|
|
|
681,893 |
|
|
|
158,484 |
|
|
|
63,932 |
|
|
|
15,585 |
|
|
|
51,674 |
|
|
|
289,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,610,250 |
|
|
|
293,292 |
|
|
|
12,903,542 |
|
|
|
3,110,156 |
|
|
|
543,938 |
|
|
|
646,560 |
|
|
|
334,658 |
|
|
|
4,635,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Plant Engineering Co., Ltd.(* 4) |
|
|
15,310 |
|
|
|
64 |
|
|
|
15,374 |
|
|
|
3,195 |
|
|
|
119,369 |
|
|
|
15,777 |
|
|
|
22,751 |
|
|
|
161,092 |
|
SNNC |
|
|
3,077 |
|
|
|
5,716 |
|
|
|
8,793 |
|
|
|
339,991 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
339,996 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,241 |
|
PT. POSMI Steel Indonesia |
|
|
6,061 |
|
|
|
30 |
|
|
|
6,091 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSK (Pinghu) Steel Processing Center Co., Ltd. |
|
|
2,855 |
|
|
|
|
|
|
|
2,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center |
|
|
24,059 |
|
|
|
|
|
|
|
24,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Processing Center Co., Ltd.) |
|
|
1,132 |
|
|
|
|
|
|
|
1,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
737 |
|
|
|
41,873 |
|
|
|
42,610 |
|
|
|
3,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,231 |
|
|
|
47,683 |
|
|
|
100,914 |
|
|
|
406,095 |
|
|
|
119,369 |
|
|
|
15,777 |
|
|
|
22,756 |
|
|
|
563,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
12,663,481 |
|
|
|
340,975 |
|
|
|
13,004,456 |
|
|
|
3,516,251 |
|
|
|
663,307 |
|
|
|
662,337 |
|
|
|
357,414 |
|
|
|
5,199,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Sales and others mainly consist of sales of steel products to subsidiaries, associates and joint ventures. These are priced on an arms length basis. |
(*2) |
Purchases and others mainly consist of subsidiaries purchases of construction services and purchases of raw materials to manufacture steel products. These are priced on an arms length basis.
|
(*3) |
As of December 31, 2014, the Company provided guarantees to related parties (Note 39). |
(*4) |
It is reclassified from associate to subsidiary due to the additional acquisitions of its shares by the Company. |
(*5) |
Others mainly consist of service fees related to maintenance and repair of ERP System. |
109
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Sales and others |
|
|
Purchase and others |
|
|
|
|
|
|
|
|
|
|
|
Purchase of |
|
|
Purchase of |
|
|
Outsourced |
|
|
|
|
|
|
|
|
Sales |
|
|
Others |
|
|
Total |
|
|
material |
|
|
fixed assets |
|
|
processing cost |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
16,439 |
|
|
|
3,421 |
|
|
|
19,860 |
|
|
|
3,042 |
|
|
|
2,235,798 |
|
|
|
5,855 |
|
|
|
9,242 |
|
|
|
2,253,937 |
|
POSCO Processing & Service |
|
|
987,424 |
|
|
|
8 |
|
|
|
987,432 |
|
|
|
1,215,510 |
|
|
|
|
|
|
|
|
|
|
|
805 |
|
|
|
1,216,315 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
472,353 |
|
|
|
25 |
|
|
|
472,378 |
|
|
|
|
|
|
|
|
|
|
|
10,648 |
|
|
|
98 |
|
|
|
10,746 |
|
POSCO PLANTEC Co., Ltd.(* 1) |
|
|
2,324 |
|
|
|
19 |
|
|
|
2,343 |
|
|
|
1,499 |
|
|
|
67,081 |
|
|
|
13,733 |
|
|
|
2,492 |
|
|
|
84,805 |
|
POSCO ICT |
|
|
1,210 |
|
|
|
195 |
|
|
|
1,405 |
|
|
|
679 |
|
|
|
279,660 |
|
|
|
31,231 |
|
|
|
157,126 |
|
|
|
468,696 |
|
POSMATE |
|
|
1,419 |
|
|
|
85 |
|
|
|
1,504 |
|
|
|
805 |
|
|
|
1,041 |
|
|
|
15,732 |
|
|
|
32,894 |
|
|
|
50,472 |
|
eNtoB Corporation |
|
|
|
|
|
|
10 |
|
|
|
10 |
|
|
|
234,352 |
|
|
|
13,241 |
|
|
|
149 |
|
|
|
20,079 |
|
|
|
267,821 |
|
POSCO CHEMTECH |
|
|
512,139 |
|
|
|
25,868 |
|
|
|
538,007 |
|
|
|
491,562 |
|
|
|
21,832 |
|
|
|
287,584 |
|
|
|
1,223 |
|
|
|
802,201 |
|
POSCO M-TECH |
|
|
11,122 |
|
|
|
94 |
|
|
|
11,216 |
|
|
|
158,709 |
|
|
|
2,336 |
|
|
|
220,986 |
|
|
|
141 |
|
|
|
382,172 |
|
POSCO ENERGY CO., LTD. |
|
|
104,209 |
|
|
|
915 |
|
|
|
105,124 |
|
|
|
|
|
|
|
5,178 |
|
|
|
|
|
|
|
7 |
|
|
|
5,185 |
|
POSCO TMC Co., Ltd. |
|
|
188,915 |
|
|
|
15 |
|
|
|
188,930 |
|
|
|
|
|
|
|
|
|
|
|
1,051 |
|
|
|
1,298 |
|
|
|
2,349 |
|
POSCO AST |
|
|
500,193 |
|
|
|
10 |
|
|
|
500,203 |
|
|
|
6,985 |
|
|
|
|
|
|
|
56,520 |
|
|
|
2,029 |
|
|
|
65,534 |
|
POSHIMETAL Co., Ltd. |
|
|
18,922 |
|
|
|
137 |
|
|
|
19,059 |
|
|
|
166,042 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
166,047 |
|
Daewoo International Corporation |
|
|
3,522,678 |
|
|
|
65 |
|
|
|
3,522,743 |
|
|
|
16,297 |
|
|
|
|
|
|
|
|
|
|
|
2,843 |
|
|
|
19,140 |
|
POSCO America Corporation |
|
|
596,681 |
|
|
|
1 |
|
|
|
596,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
339 |
|
|
|
339 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
POSCO Asia Co., Ltd. |
|
|
2,068,965 |
|
|
|
221 |
|
|
|
2,069,186 |
|
|
|
64,434 |
|
|
|
182 |
|
|
|
|
|
|
|
1,673 |
|
|
|
66,289 |
|
POSCO (Thailand) Company Limited |
|
|
56,210 |
|
|
|
56 |
|
|
|
56,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85 |
|
|
|
85 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
58,502 |
|
|
|
|
|
|
|
58,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
|
|
|
14 |
|
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
129,345 |
|
|
|
1 |
|
|
|
129,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
1,270,325 |
|
|
|
|
|
|
|
1,270,325 |
|
|
|
19,978 |
|
|
|
2 |
|
|
|
|
|
|
|
2,972 |
|
|
|
22,952 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
119,503 |
|
|
|
7 |
|
|
|
119,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
256,014 |
|
|
|
693 |
|
|
|
256,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
621 |
|
|
|
621 |
|
POSCO Maharashtra Steel Private Limited |
|
|
176,425 |
|
|
|
3,157 |
|
|
|
179,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
236 |
|
|
|
236 |
|
DAEWOO INTERNATIONAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SINGAPORE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
Others |
|
|
558,923 |
|
|
|
7,569 |
|
|
|
566,492 |
|
|
|
92,527 |
|
|
|
38,843 |
|
|
|
18,782 |
|
|
|
77,101 |
|
|
|
227,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,630,240 |
|
|
|
42,572 |
|
|
|
11,672,812 |
|
|
|
2,724,929 |
|
|
|
2,665,194 |
|
|
|
662,271 |
|
|
|
313,323 |
|
|
|
6,365,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
1,532 |
|
|
|
458 |
|
|
|
1,990 |
|
|
|
402,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
402,639 |
|
POSCO PLANTEC Co., Ltd. (formerly, Sungjin Geotec Co., Ltd.) |
|
|
15,028 |
|
|
|
48 |
|
|
|
15,076 |
|
|
|
1,735 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
6,883 |
|
|
|
84,201 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
PT. POSMI Steel Indonesia |
|
|
6,538 |
|
|
|
|
|
|
|
6,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSK (Pinghu) Steel Processing Center Co., Ltd. |
|
|
3,786 |
|
|
|
|
|
|
|
3,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center Co., Ltd. |
|
|
19,906 |
|
|
|
|
|
|
|
19,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Steel Processing Center Co., Ltd.) |
|
|
6,429 |
|
|
|
|
|
|
|
6,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
546 |
|
|
|
165 |
|
|
|
711 |
|
|
|
3,937 |
|
|
|
|
|
|
|
|
|
|
|
176 |
|
|
|
4,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,765 |
|
|
|
671 |
|
|
|
54,436 |
|
|
|
475,073 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
7,059 |
|
|
|
557,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
11,684,005 |
|
|
|
43,243 |
|
|
|
11,727,248 |
|
|
|
3,200,002 |
|
|
|
2,730,996 |
|
|
|
672,052 |
|
|
|
320,382 |
|
|
|
6,923,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Sungjin Geotec Co., Ltd. merged with POSCO Plant Engineering Co., Ltd. and changed its name to POSCO PLANTEC Co., Ltd. in 2013. |
110
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
The related account balances of significant transactions with related companies as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
Payables |
|
|
|
Trade accounts and |
|
|
|
|
|
|
|
|
Trade accounts |
|
|
Accounts |
|
|
|
|
|
|
|
(in millions of Won) |
|
notes receivable |
|
|
Others |
|
|
Total |
|
|
and notes payable |
|
|
payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
42 |
|
|
|
71,967 |
|
|
|
72,009 |
|
|
|
|
|
|
|
41,878 |
|
|
|
|
|
|
|
41,878 |
|
POSCO Processing & Service |
|
|
94,790 |
|
|
|
92 |
|
|
|
94,882 |
|
|
|
15,202 |
|
|
|
867 |
|
|
|
|
|
|
|
16,069 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,314 |
|
|
|
67 |
|
|
|
69,381 |
|
|
|
|
|
|
|
5 |
|
|
|
1,936 |
|
|
|
1,941 |
|
POSCO ICT |
|
|
13 |
|
|
|
103 |
|
|
|
116 |
|
|
|
920 |
|
|
|
70,823 |
|
|
|
5,425 |
|
|
|
77,168 |
|
POSMATE |
|
|
|
|
|
|
1,673 |
|
|
|
1,673 |
|
|
|
600 |
|
|
|
2,007 |
|
|
|
4,828 |
|
|
|
7,435 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,564 |
|
|
|
28,432 |
|
|
|
43 |
|
|
|
41,039 |
|
POSCO CHEMTECH |
|
|
49,456 |
|
|
|
4,283 |
|
|
|
53,739 |
|
|
|
57,610 |
|
|
|
9,890 |
|
|
|
17,864 |
|
|
|
85,364 |
|
POSCO M-TECH |
|
|
|
|
|
|
37 |
|
|
|
37 |
|
|
|
7,311 |
|
|
|
12,231 |
|
|
|
22,703 |
|
|
|
42,245 |
|
POSCO ENERGY CO., LTD. |
|
|
17,326 |
|
|
|
2,809 |
|
|
|
20,135 |
|
|
|
|
|
|
|
|
|
|
|
1,962 |
|
|
|
1,962 |
|
POSCO TMC Co., Ltd. |
|
|
27,429 |
|
|
|
30 |
|
|
|
27,459 |
|
|
|
|
|
|
|
117 |
|
|
|
115 |
|
|
|
232 |
|
POSCO AST |
|
|
44,281 |
|
|
|
54 |
|
|
|
44,335 |
|
|
|
|
|
|
|
2,458 |
|
|
|
3,364 |
|
|
|
5,822 |
|
POSHIMETAL Co., Ltd. |
|
|
1,269 |
|
|
|
14 |
|
|
|
1,283 |
|
|
|
|
|
|
|
12,846 |
|
|
|
|
|
|
|
12,846 |
|
Daewoo International Corporation |
|
|
164,029 |
|
|
|
3,178 |
|
|
|
167,207 |
|
|
|
8 |
|
|
|
210 |
|
|
|
1 |
|
|
|
219 |
|
POSCO Specialty Steel Co., Ltd. |
|
|
822 |
|
|
|
201,823 |
|
|
|
202,645 |
|
|
|
4,800 |
|
|
|
140 |
|
|
|
184 |
|
|
|
5,124 |
|
POSCO America Corporation |
|
|
57,164 |
|
|
|
|
|
|
|
57,164 |
|
|
|
|
|
|
|
1,511 |
|
|
|
|
|
|
|
1,511 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,534 |
|
|
|
|
|
|
|
4,534 |
|
POSCO Asia Co., Ltd. |
|
|
197,104 |
|
|
|
221 |
|
|
|
197,325 |
|
|
|
10,995 |
|
|
|
|
|
|
|
|
|
|
|
10,995 |
|
POSCO (Thailand) Company Limited |
|
|
7,407 |
|
|
|
266 |
|
|
|
7,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
14,748 |
|
|
|
41 |
|
|
|
14,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
42,692 |
|
|
|
89 |
|
|
|
42,781 |
|
|
|
344 |
|
|
|
1,552 |
|
|
|
|
|
|
|
1,896 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
6,401 |
|
|
|
5 |
|
|
|
6,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
96,800 |
|
|
|
|
|
|
|
96,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
364,899 |
|
|
|
7,714 |
|
|
|
372,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
126,474 |
|
|
|
56,788 |
|
|
|
183,262 |
|
|
|
7,239 |
|
|
|
54,727 |
|
|
|
1,545 |
|
|
|
63,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Specialty Steel Co., Ltd. |
|
|
1,382,460 |
|
|
|
351,254 |
|
|
|
1,733,714 |
|
|
|
117,593 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
421,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and jointventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
219 |
|
|
|
125 |
|
|
|
344 |
|
|
|
7,017 |
|
|
|
|
|
|
|
|
|
|
|
7,017 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
LLP POSUK Titanium |
|
|
|
|
|
|
4,235 |
|
|
|
4,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
258 |
|
|
|
18 |
|
|
|
276 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477 |
|
|
|
4,378 |
|
|
|
4,855 |
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,382,937 |
|
|
|
355,632 |
|
|
|
1,738,569 |
|
|
|
126,006 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
430,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
Payables |
|
|
|
Trade accounts and |
|
|
|
|
|
|
|
|
Trade accounts |
|
|
Accounts |
|
|
|
|
|
|
|
(in millions of Won) |
|
notes receivable |
|
|
Others |
|
|
Total |
|
|
and notes payable |
|
|
payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
40 |
|
|
|
110,955 |
|
|
|
110,995 |
|
|
|
|
|
|
|
105,603 |
|
|
|
|
|
|
|
105,603 |
|
POSCO Processing & Service |
|
|
103,400 |
|
|
|
73 |
|
|
|
103,473 |
|
|
|
17,914 |
|
|
|
683 |
|
|
|
|
|
|
|
18,597 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,260 |
|
|
|
65 |
|
|
|
69,325 |
|
|
|
|
|
|
|
59 |
|
|
|
1,434 |
|
|
|
1,493 |
|
POSCO ICT |
|
|
75 |
|
|
|
123 |
|
|
|
198 |
|
|
|
|
|
|
|
51,247 |
|
|
|
|
|
|
|
51,247 |
|
POSMATE |
|
|
489 |
|
|
|
1,533 |
|
|
|
2,022 |
|
|
|
141 |
|
|
|
3,274 |
|
|
|
1,058 |
|
|
|
4,473 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,057 |
|
|
|
10,311 |
|
|
|
|
|
|
|
18,368 |
|
POSCO CHEMTECH |
|
|
46,943 |
|
|
|
4,313 |
|
|
|
51,256 |
|
|
|
35,829 |
|
|
|
6,983 |
|
|
|
8,663 |
|
|
|
51,475 |
|
POSCO M-TECH |
|
|
18 |
|
|
|
28 |
|
|
|
46 |
|
|
|
12,020 |
|
|
|
21,326 |
|
|
|
10,799 |
|
|
|
44,145 |
|
POSCO ENERGY CO., LTD. |
|
|
14,733 |
|
|
|
2,894 |
|
|
|
17,627 |
|
|
|
|
|
|
|
421 |
|
|
|
|
|
|
|
421 |
|
POSCO TMC Co., Ltd. |
|
|
20,510 |
|
|
|
26 |
|
|
|
20,536 |
|
|
|
|
|
|
|
16 |
|
|
|
50 |
|
|
|
66 |
|
POSCO AST |
|
|
85,501 |
|
|
|
53 |
|
|
|
85,554 |
|
|
|
|
|
|
|
3,004 |
|
|
|
5,238 |
|
|
|
8,242 |
|
POSHIMETAL Co., Ltd. |
|
|
1,721 |
|
|
|
12 |
|
|
|
1,733 |
|
|
|
|
|
|
|
12,624 |
|
|
|
|
|
|
|
12,624 |
|
Daewoo International Corporation |
|
|
148,383 |
|
|
|
878 |
|
|
|
149,261 |
|
|
|
9,319 |
|
|
|
|
|
|
|
|
|
|
|
9,319 |
|
POSCO America Corporation |
|
|
57,554 |
|
|
|
|
|
|
|
57,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,323 |
|
|
|
|
|
|
|
|
|
|
|
12,323 |
|
POSCO Asia Co., Ltd. |
|
|
134,602 |
|
|
|
142 |
|
|
|
134,744 |
|
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
|
2,063 |
|
POSCO (Thailand) Company Limited |
|
|
6,052 |
|
|
|
7 |
|
|
|
6,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
3,329 |
|
|
|
|
|
|
|
3,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
73,992 |
|
|
|
|
|
|
|
73,992 |
|
|
|
862 |
|
|
|
108 |
|
|
|
1 |
|
|
|
971 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
8,117 |
|
|
|
|
|
|
|
8,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
100,016 |
|
|
|
76 |
|
|
|
100,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
55,392 |
|
|
|
3,218 |
|
|
|
58,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
54,357 |
|
|
|
8,887 |
|
|
|
63,244 |
|
|
|
6,523 |
|
|
|
15,421 |
|
|
|
1,647 |
|
|
|
23,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
984,484 |
|
|
|
133,283 |
|
|
|
1,117,767 |
|
|
|
105,051 |
|
|
|
231,080 |
|
|
|
28,890 |
|
|
|
365,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and jointventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
140 |
|
|
|
40 |
|
|
|
180 |
|
|
|
16,669 |
|
|
|
|
|
|
|
|
|
|
|
16,669 |
|
POSCO PLANTEC Co., Ltd. (formerly, Sungjin Geotec Co., Ltd.) |
|
|
879 |
|
|
|
46 |
|
|
|
925 |
|
|
|
353 |
|
|
|
|
|
|
|
|
|
|
|
353 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
67 |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LLP POSUK Titanium |
|
|
|
|
|
|
4,066 |
|
|
|
4,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
17 |
|
|
|
17 |
|
|
|
319 |
|
|
|
2 |
|
|
|
|
|
|
|
321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,019 |
|
|
|
4,236 |
|
|
|
5,255 |
|
|
|
17,341 |
|
|
|
2 |
|
|
|
|
|
|
|
17,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
985,503 |
|
|
|
137,519 |
|
|
|
1,123,022 |
|
|
|
122,392 |
|
|
|
231,082 |
|
|
|
28,890 |
|
|
|
382,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
For the years ended December 31, 2014 and 2013, details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Short-term benefits |
|
₩ |
116,961 |
|
|
|
121,054 |
|
Retirement benefits |
|
|
21,604 |
|
|
|
20,713 |
|
Long-term benefits |
|
|
17,242 |
|
|
|
23,480 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
155,807 |
|
|
|
165,247 |
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including non-standing directors), executive officials and fellow
officials who have significant influence and responsibilities in the Companys business and operations.
39. Commitments and Contingencies
(a) |
Contingent liabilities |
Contingent liabilities may develop in a way not initially expected.
Therefore, management continuously assesses contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for
an item previously dealt with as a contingent liability, a provision is recognized in the financial statements of the period in which the change in probability occurs (except in the extremely rare circumstances where no reliable estimate can be
made).
Management makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and assumptions
are based on the evaluation of current circumstances and appraisals with the supports of internal specialists or external consultants.
Management regularly analyzes current information about these matters and provides provisions for probable contingent losses including the
estimate of legal expense to resolve the matters. Internal and external lawyers are used for these assessments. In making the decision regarding the need for a provision, management considers whether the Company has an obligation as a result of a
past event, whether it is probable that an outflow or cash or other resources embodying economic benefits will be required to settle the obligation and the ability to make a reliable estimate of the amount of the obligation.
113
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Details of guarantees |
Contingent liabilities on outstanding guarantees provided by the Company as of
December 31, 2014, are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors |
|
Guarantee beneficiary |
|
Financial institution |
|
Foreign currency |
|
|
Won equivalent |
|
[The Company] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO |
|
POSCO (Guangdong) Automotive Steel Co., Ltd. |
|
SMBC and others |
|
USD |
|
|
65,000,000 |
|
|
|
71,448 |
|
|
|
POSCO Investment Co., Ltd. |
|
BOA and others |
|
USD |
|
|
330,000,000 |
|
|
|
362,736 |
|
|
|
|
|
BOC |
|
CNY |
|
|
350,000,000 |
|
|
|
62,031 |
|
|
|
POSCO Maharashtra Steel Private Limited |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
566,069,000 |
|
|
|
622,223 |
|
|
|
POSCO VST CO., LTD. |
|
ANZ and others |
|
USD |
|
|
65,000,000 |
|
|
|
71,448 |
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
HSBC and others |
|
USD |
|
|
284,725,000 |
|
|
|
312,970 |
|
|
|
POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
242,000,000 |
|
|
|
248,437 |
|
|
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
MIZUHO and others |
|
USD |
|
|
130,000,000 |
|
|
|
142,896 |
|
|
|
POSCO ASSAN TST STEEL INDUSTRY |
|
SMBC and others |
|
USD |
|
|
193,392,500 |
|
|
|
212,577 |
|
|
|
POSCO Electrical Steel India Private Limited |
|
ING and others |
|
USD |
|
|
83,784,000 |
|
|
|
92,095 |
|
|
|
PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
1,350,300,000 |
|
|
|
1,484,249 |
|
Daewoo International Corporation |
|
Daewoo Paper Manufacturing Co., Ltd. |
|
HSBC |
|
USD |
|
|
12,500,000 |
|
|
|
13,740 |
|
|
|
DAEWOO TEXTILE BUKHARA LLC |
|
Export-Import Bank of Korea |
|
USD |
|
|
16,000,000 |
|
|
|
17,587 |
|
|
|
DAEWOO INTERNATIONAL MEXICO S.A. DE C.V. |
|
NOVA SCOTIA |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
POSCO ASSAN TST STEEL INDUSTRY |
|
ING and others |
|
USD |
|
|
18,839,300 |
|
|
|
20,708 |
|
|
|
Brazil Sao Paulo Steel Processing Center |
|
HSBC and others |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
Daewoo International INDIA Private Ltd. |
|
Shinhan Bank |
|
USD |
|
|
44,170,000 |
|
|
|
48,552 |
|
|
|
PT. Bio Inti Agrindo |
|
Export-Import Bank of Korea |
|
USD |
|
|
56,000,000 |
|
|
|
61,555 |
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
Woori Bank and others |
|
USD |
|
|
135,000,000 |
|
|
|
148,392 |
|
|
|
POSCO E&C Vietnam Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
16,500,000 |
|
|
|
18,137 |
|
|
|
SANTOSCMI S.A. |
|
CITI Equador and others |
|
USD |
|
|
46,000,000 |
|
|
|
50,563 |
|
|
|
POSCO Engineering and Construction India Private Limited |
|
Shinhan Bank |
|
INR |
|
|
383,201,941 |
|
|
|
6,645 |
|
POSCO Processing & Service |
|
POSCO Canada Ltd. |
|
Hana Bank |
|
USD |
|
|
12,484,500 |
|
|
|
13,723 |
|
|
|
POSCO Gulf SFC LLC |
|
KEB Bank and others |
|
USD |
|
|
27,000,000 |
|
|
|
29,678 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
Myanmar POSCO C&C Company, Limited. |
|
POSCO Investment |
|
USD |
|
|
7,986,947 |
|
|
|
8,779 |
|
POSCO ICT |
|
PT.POSCO ICT INDONESIA |
|
POSCO Investment |
|
USD |
|
|
2,700,000 |
|
|
|
2,968 |
|
|
|
VECTUS LIMITED |
|
POSCO Investment |
|
USD |
|
|
4,000,000 |
|
|
|
4,397 |
|
|
|
|
|
KEB Bank |
|
GBP |
|
|
3,500,000 |
|
|
|
5,987 |
|
POSCO ENERGY CO., LTD. |
|
PT. KRAKATAU POSCO ENERGY |
|
Export-Import Bank of Korea and others |
|
USD |
|
|
193,900,000 |
|
|
|
213,135 |
|
POSCO Engineering CO., Ltd |
|
|
|
KEB Bank and others |
|
USD |
|
|
12,818,876 |
|
|
|
14,091 |
|
|
|
PT PEN INDONESIA |
|
KEB Bank and others |
|
IDR |
|
|
145,244,014,735 |
|
|
|
12,825 |
|
|
|
POSCO ENGINEERING (THAILAND) CO., LTD. |
|
CITI Bank |
|
USD |
|
|
15,300,000 |
|
|
|
16,818 |
|
|
|
|
|
Woori Bank and others |
|
THB |
|
|
6,347,013,800 |
|
|
|
212,244 |
|
POSCO-Japan Co., Ltd. |
|
POSCO-JEPC Co., Ltd. |
|
MIZUHO and others |
|
JPY |
|
|
1,021,811,730 |
|
|
|
9,402 |
|
|
|
POSCO-JKPC Co., Ltd. |
|
Higo Bank and others |
|
JPY |
|
|
974,000,000 |
|
|
|
8,962 |
|
|
|
Xenesys Inc. |
|
Aozora Bank |
|
JPY |
|
|
250,000,000 |
|
|
|
2,300 |
|
DAEWOO TEXTILE FERGANA LLC |
|
DAEWOO TEXTILE BUKHARA LLC |
|
Bukhara TEX |
|
USD |
|
|
2,691,513 |
|
|
|
2,959 |
|
DAEWOO TEXTILE BUKHARA LLC |
|
DAEWOO TEXTILE FERGANA LLC |
|
NBU |
|
USD |
|
|
6,127,060 |
|
|
|
6,735 |
|
POSCO E&C CHINA Co., Ltd. |
|
HONG KONG POSCO E&C (CHINA) INVESTMENT Co., Ltd. |
|
Woori Bank |
|
USD |
|
|
33,000,000 |
|
|
|
36,274 |
|
POSCO-China Holding Corp. |
|
POSCO YongXin Rare Earth Metal Co., Ltd. |
|
KEB Bank and others |
|
CNY |
|
|
71,820,000 |
|
|
|
12,729 |
|
|
|
DONG FANG JIN HONG |
|
Bank of Communications and others |
|
CNY |
|
|
1,300,000,000 |
|
|
|
230,399 |
|
POSCO CHEMTECH |
|
PT. Krakatau Posco Chemtech Calcination |
|
KEB Bank |
|
USD |
|
|
42,000,000 |
|
|
|
46,166 |
|
|
|
KRAKATAU POS-CHEM DONG-SUH CHEMICAL |
|
Hana Bank |
|
USD |
|
|
13,075,000 |
|
|
|
14,372 |
|
POSCO PLANTEC Co., Ltd. |
|
POSCO PLANTEC Thailand CO. LTD |
|
Woori Bank |
|
THB |
|
|
45,000,000 |
|
|
|
1,505 |
|
POSCO Specialty Steel Co., Ltd. |
|
POSCO SS-VINA |
|
Export-Import Bank of Korea |
|
USD |
|
|
354,409,800 |
|
|
|
389,567 |
|
SANTOSCMI S.A. |
|
COMPANIADEAUTOMATIZACION &CONTROL, GENESYS S.A. |
|
Banco de Guayaquil and others |
|
USD |
|
|
1,550,000 |
|
|
|
1,704 |
|
114
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors |
|
Guarantee beneficiary |
|
Financial institution |
|
Foreign Currency |
|
|
Won Eequivalent |
|
[Associates and joint ventures] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO |
|
LLP POSUK Titanium |
|
KB Bank |
|
|
USD |
|
|
|
15,000,000 |
|
|
|
16,488 |
|
|
|
CSP - Compania Siderurgica do Pecem |
|
KDB Bank |
|
|
USD |
|
|
|
56,666,667 |
|
|
|
62,288 |
|
Daewoo International Corporation |
|
DMSA/AMSA |
|
Export-Import Bank of Korea and others |
|
|
USD |
|
|
|
165,133,333 |
|
|
|
181,515 |
|
|
|
GLOBAL KOMSCO Daewoo LLC |
|
Export-Import Bank of Korea and others |
|
|
USD |
|
|
|
11,112,500 |
|
|
|
12,214 |
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
Posco e&c Songdo International Building |
|
Others |
|
|
KRW |
|
|
|
356,600 |
|
|
|
356,600 |
|
|
|
New Songdo City Development, LLC |
|
Others |
|
|
KRW |
|
|
|
340,000 |
|
|
|
340,000 |
|
|
|
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
Others |
|
|
KRW |
|
|
|
28,226 |
|
|
|
28,226 |
|
POSCO Processing & Service |
|
Sebang Steel |
|
Shinhan Bank |
|
|
JPY |
|
|
|
245,000,000 |
|
|
|
2,254 |
|
POSCO ICT |
|
UITrans LRT Co., Ltd. |
|
KB Bank |
|
|
KRW |
|
|
|
76,000 |
|
|
|
76,000 |
|
|
|
Incheon-Gimpo Expressway Co., Ltd. |
|
KDB Bank |
|
|
KRW |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
CHUNGJU ENTERPRISE CITY DEVELOPMENT Co., Ltd |
|
NH Bank |
|
|
KRW |
|
|
|
2,528 |
|
|
|
2,528 |
|
POSCO Engineering CO., Ltd |
|
PT. Wampu Electric Power |
|
Woori Bank |
|
|
USD |
|
|
|
7,996,848 |
|
|
|
8,790 |
|
Daewoo (China) Co., Ltd. |
|
SHANGHAI LANSHENG DAEWOO CORP. PT. INDONESIA POS |
|
Bank of Communications and others |
|
|
CNY |
|
|
|
100,000,000 |
|
|
|
17,723 |
|
POSCO CHEMTECH |
|
CHEMTECH CHOSUN Ref |
|
KEB Bank |
|
|
USD |
|
|
|
6,000,000 |
|
|
|
6,595 |
|
[Others] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daewoo International Corporation |
|
Ambatovy Project Investments Limited |
|
Export-Import Bank of korea |
|
|
USD |
|
|
|
65,454,545 |
|
|
|
71,948 |
|
|
|
Sherritt International Corporation |
|
Export-Import Bank of korea |
|
|
USD |
|
|
|
21,818,182 |
|
|
|
23,983 |
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
The union of City environment improvement for Kukje building and others |
|
Others |
|
|
KRW |
|
|
|
745,350 |
|
|
|
745,350 |
|
|
|
Gale International Korea, LLC |
|
Others |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
INTERNATIONAL BUSINESS CENTER CORPORATION |
|
Export-Import Bank of korea |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
21,984 |
|
POSCO ICT |
|
BTL business and others |
|
Kyobo Life Insurance Co., Ltd and others |
|
|
KRW |
|
|
|
2,055,936 |
|
|
|
2,055,936 |
|
|
|
SMS Energy and others |
|
Hana Bank and others |
|
|
KRW |
|
|
|
158,860 |
|
|
|
158,860 |
|
POSCO Engineering CO., Ltd |
|
GD |
|
Shinhan Bank |
|
|
KRW |
|
|
|
3,500 |
|
|
|
3,500 |
|
|
|
Kwanma Solar Co., Ltd. and others |
|
Hana Bank |
|
|
KRW |
|
|
|
53,930 |
|
|
|
53,930 |
|
|
|
Beomeo Saint Western Hotel Co., |
|
Meritz Insurance and others |
|
|
KRW |
|
|
|
6,600 |
|
|
|
6,600 |
|
|
|
Hyundai ENG Co., Ltd. |
|
Engineering Financial Cooperative |
|
|
KRW |
|
|
|
28,173 |
|
|
|
28,173 |
|
POSCO M-TECH |
|
JMTECH CO., LTD and others |
|
Seoul Guarantee Insurance Co., Ltd. |
|
|
KRW |
|
|
|
15,239 |
|
|
|
15,239 |
|
POSCO PLANTEC Co., Ltd. |
|
JGC |
|
|
|
|
KRW |
|
|
|
855 |
|
|
|
855 |
|
|
|
AKER |
|
Export-Import Bank of korea |
|
|
USD |
|
|
|
4,301,517 |
|
|
|
4,728 |
|
|
|
Alstom Power Inc. and others |
|
KDB Bank |
|
|
USD |
|
|
|
24,258,546 |
|
|
|
26,668 |
|
|
|
Court and others |
|
|
|
|
KRW |
|
|
|
16,417 |
|
|
|
16,417 |
|
|
|
GS Engineering & Construction Corp and others |
|
Seoul Guarantee Insurance Co., Ltd. |
|
|
USD |
|
|
|
9,985,137 |
|
|
|
10,977 |
|
|
|
SK Engineering & Construction co., ltd |
|
|
|
|
CAD |
|
|
|
889,882 |
|
|
|
843 |
|
|
|
GYEONGSANGBUK-DO DEVELOPMENT CORPORATION |
|
|
|
|
KRW |
|
|
|
535 |
|
|
|
535 |
|
|
|
GS Engineering & Construction Corp |
|
KEB Bank |
|
|
USD |
|
|
|
10,064,925 |
|
|
|
11,065 |
|
|
|
AKER and others |
|
|
|
|
EUR |
|
|
|
133,550 |
|
|
|
178 |
|
|
|
Taipei Port Terminal Company Ltd |
|
|
|
|
TWD |
|
|
|
342,500,000 |
|
|
|
11,882 |
|
|
|
Gyopo Wind Power Co., Ltd. |
|
KB Bank |
|
|
KRW |
|
|
|
7,476 |
|
|
|
7,476 |
|
|
|
Goam Sun energy Korea Co., Ltd. and others |
|
Shinhan Bank |
|
|
KRW |
|
|
|
26,509 |
|
|
|
26,509 |
|
|
|
HANWHA E&C |
|
|
|
|
USD |
|
|
|
240,000 |
|
|
|
264 |
|
|
|
JAESAN ENERGY |
|
Hana Bank |
|
|
KRW |
|
|
|
3,890 |
|
|
|
3,890 |
|
|
|
POSCO PLANTEC Taiwan Branch |
|
|
|
|
TWD |
|
|
|
90,000,000 |
|
|
|
3,122 |
|
|
|
HANJIN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD |
|
Gwangju Bank |
|
|
KRW |
|
|
|
99 |
|
|
|
99 |
|
|
|
CAMERON JAPAN and others |
|
|
|
|
USD |
|
|
|
9,679,904 |
|
|
|
10,639 |
|
|
|
Astara |
|
Busan Bank |
|
|
EUR |
|
|
|
9,260 |
|
|
|
12 |
|
|
|
NIHON |
|
|
|
|
JPY |
|
|
|
5,483,800 |
|
|
|
50 |
|
|
|
SKY Calabria Co., Ltd. |
|
NH Investment & Securities Co., Ltd. |
|
|
KRW |
|
|
|
149,922 |
|
|
|
149,922 |
|
|
|
Incheon International Airport Corporation |
|
Engineering Financial Cooperative |
|
|
KRW |
|
|
|
31,413 |
|
|
|
31,413 |
|
POSCO AUSTRALIA PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
|
AUD |
|
|
|
8,023,765 |
|
|
|
7,214 |
|
POSCO SS-VINA |
|
EVN SPC |
|
Shinhan Bank |
|
|
VND |
|
|
|
35,525,413,000 |
|
|
|
1,826 |
|
POS-NP PTY LTD |
|
Regional Infrastructure and Service |
|
Woori Bank |
|
|
AUD |
|
|
|
539,496 |
|
|
|
485 |
|
HUME COAL PTY LTD |
|
Department of Trade and Investment (NSW Government) |
|
Woori Bank |
|
|
AUD |
|
|
|
804,000 |
|
|
|
723 |
|
Plant Engineering service Technology Co., Ltd. |
|
Future Environmental Energy CO., Ltd |
|
Seoul Guarantee Insurance Co., Ltd. |
|
|
KRW |
|
|
|
1,213 |
|
|
|
1,213 |
|
POS-HiAL |
|
Kumho Rent-a-car Co., Ltd. |
|
Seoul Guarantee Insurance Co., Ltd. |
|
|
KRW |
|
|
|
11 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
|
4,942,035,600 |
|
|
|
5,414,721 |
|
|
|
|
|
|
|
|
KRW |
|
|
|
4,209,282 |
|
|
|
4,209,282 |
|
|
|
|
|
|
|
|
CNY |
|
|
|
1,821,820,000 |
|
|
|
322,882 |
|
|
|
|
|
|
|
|
THB |
|
|
|
6,392,013,800 |
|
|
|
213,749 |
|
|
|
|
|
|
|
|
JPY |
|
|
|
2,496,295,530 |
|
|
|
22,968 |
|
|
|
|
|
|
|
|
TWD |
|
|
|
432,500,000 |
|
|
|
15,004 |
|
|
|
|
|
|
|
|
IDR |
|
|
|
145,244,014,735 |
|
|
|
12,825 |
|
|
|
|
|
|
|
|
AUD |
|
|
|
9,367,261 |
|
|
|
8,422 |
|
|
|
|
|
|
|
|
INR |
|
|
|
383,201,941 |
|
|
|
6,645 |
|
|
|
|
|
|
|
|
GBP |
|
|
|
3,500,000 |
|
|
|
5,987 |
|
|
|
|
|
|
|
|
VND |
|
|
|
35,525,413,000 |
|
|
|
1,826 |
|
|
|
|
|
|
|
|
CAD |
|
|
|
889,882 |
|
|
|
843 |
|
|
|
|
|
|
|
|
EUR |
|
|
|
142,810 |
|
|
|
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
POSCO ENGINEERING & CONSTRUCTION Co., Ltd. has provided the completion guarantees for Samsung C&T Corporation amounting to ₩1,150,814 million while Samsung C&T Corporation has provided the
construction guarantees or payment guarantees on customers borrowings on behalf of POSCO ENGINEERING & CONSTRUCTION Co., Ltd. amounting to ₩556,385 million as of December 31, 2014. |
Details of other commitments of the Company as of December 31, 2014, are as follows:
|
|
|
POSCO |
|
POSCO entered into long-term contracts to purchase iron ore, coal, nickel and others. The contracts of iron ore and coal generally have terms of more than three years and the contracts of nickel have terms of more than one year.
These contracts provide for periodic price adjustments based on the market price. As of December 31, 2014, 137 million tons of iron ore and 32 million tons of coal remained to be purchased under such long-term contracts. |
|
|
|
|
POSCO entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on
changes of the monthly standard oil price (JCC) and with a price ceiling. |
|
|
|
|
As of December 31, 2014, POSCO entered into commitments with Korea National Oil Corporation for long-term foreign currency borrowings, which are limited up to the amount of USD 6.86 million, USD 6.58 million and USD 4.12 million.
The borrowings are related to the exploration of gas hydrates in Aral Sea, Uzbekistan, the exploration of gas hydrates in Namangan-Chust and the exploration of gas hydrates in Western Fergana-Chenavard, respectively. The repayment of the borrowings
depends on the success of the projects. POSCO is not liable for the repayment of full or part of the money borrowed if the respective projects fail. POSCO has agreed to pay a certain portion of its profits under certain conditions, as defined by the
borrowing agreements. |
|
|
|
|
POSCO has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to POSCO ENERGY Co., Ltd. under construction of new power
plant. |
|
|
POSCO ENGINEERING & CONSTRUCTION
CO., LTD. |
|
As of December 31, 2014, POSCO ENGINEERING & CONSTRUCTION CO., LTD. has comprehensive loan agreements of up to ₩283.5 billion and USD 268 million with Woori Bank and ₩98 billion and USD 843 million with KEB Bank.
Also, POSCO ENGINEERING & CONSTRUCTION CO., LTD. has bank overdraft agreements of up to ₩20 billion with Woori Bank which is included in the limit of billion comprehensive loan agreements and 3 billion with Korea Exchange Bank.
Comprehensive loan agreements include bank overdraft up to ₩20 billion and W30 billion of loans on checking account during the day with Woori Bank. |
|
|
POSCO ICT |
|
As of December 31, 2014, in relation to contract enforcement, POSCO ICT was provided with ₩62,164 million and ₩35,735 million guaranties from Korea Software Financial Cooperative and Seoul Guarantee Insurance,
respectively. |
|
|
POSCO Specialty Steel Co., Ltd. |
|
As of December 31, 2014, POSCO Specialty Steel Co., Ltd. has agreements for a loan and import letter of credit with Korea Exchange Bank and others. |
116
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(e) |
Litigation in progress |
As of December 31, 2014, POSCO and certain subsidiaries are defendants in legal
actions arising from the normal course of business.
|
1) |
Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation |
During the year ended
December 31, 2012, Nippon Steel & Sumitomo Metal Corporation filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, to prohibit production and sales of grain oriented
electrical steel sheets using improperly acquired trade secrets and seeking compensation from the Company of ₩907.3 billion. Through trials to the year ended December 31, 2014, the Company submitted its responses that the Japan court did
not have jurisdiction on this lawsuit as it should be judged by Korean law and the Company developed grain oriented electrical steel sheets using the Companys own technologies. As of December 31, 2014, the Japan court has not made any
judgments on this matter. Since the Company does not believe that it has any present obligation, the Company has not recorded any provision for this lawsuit as of December 31, 2014.
|
2) |
Other lawsuits and claims |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions of Won, in thousands of foreign currencies) |
|
|
|
|
|
|
|
|
Company |
|
Legal actions |
|
Claim amount |
|
|
Korean won equivalent |
|
|
Description |
POSCO |
|
38 |
|
KRW |
87,167 |
|
|
|
87,167 |
|
|
Law suit on claim for damages(* 1) |
Daewoo International Corporation |
|
9 |
|
USD |
47,788 |
|
|
|
52,529 |
|
|
Law suit on claim for payment(* 1) |
|
|
5 |
|
KRW |
2,312 |
|
|
|
2,312 |
|
|
Law suit on claim for payment |
|
|
1 |
|
INR |
4,458,849 |
|
|
|
77,316 |
|
|
Law suit on claim for payment on guarantees(* 1) |
|
|
1 |
|
EUR |
3,270 |
|
|
|
4,370 |
|
|
Law suit on claim for payment |
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
72 |
|
KRW |
118,567 |
|
|
|
118,567 |
|
|
Law suit on claim for payment on rent fees by PSIB |
POSCO Processing & Service |
|
3 |
|
KRW |
770 |
|
|
|
770 |
|
|
Law suit on claim for payment |
POSCO Engineering CO., Ltd |
|
12 |
|
KRW |
4,662 |
|
|
|
4,662 |
|
|
Law suit on claim for payment on construction by Samyanginnochem |
POSCO COATED & COLOR STEEL Co., Ltd. |
|
2 |
|
KRW |
350 |
|
|
|
350 |
|
|
Law suit on claim for payment |
POSCO ICT |
|
19 |
|
KRW |
15,287 |
|
|
|
15,287 |
|
|
Law suit on claim for payment on construction |
POSCO America Corporation |
|
2 |
|
USD |
|
|
|
|
|
|
|
Law suit on claim for anti-trust |
POSCO M -TECH |
|
4 |
|
KRW |
1,039 |
|
|
|
1,039 |
|
|
Law suit on claim for payment |
POSCO PLANTEC Co., Ltd. |
|
6 |
|
KRW |
2,671 |
|
|
|
2,671 |
|
|
Law suit on claim for payment |
|
|
1 |
|
USD |
4,304 |
|
|
|
4,730 |
|
|
Law suit on claim for payment on agent fees |
|
|
1 |
|
EUR |
5,492 |
|
|
|
7,340 |
|
|
Law suit on claim for payment |
POSCO E&C CHINA Co., Ltd. |
|
1 |
|
CNY |
37,000 |
|
|
|
6,558 |
|
|
Law suit on claim for failure on obtain of PF |
Daewoo International (America) Corp. |
|
2 |
|
USD |
10,442 |
|
|
|
11,478 |
|
|
Law suit on claim clam for indemnification damages |
POSPOWER Co., Ltd. |
|
1 |
|
KRW |
9,667 |
|
|
|
9,667 |
|
|
Law suit on claim for payment |
POSCO RUS LLC |
|
2 |
|
RUB |
11,206 |
|
|
|
223 |
|
|
Law suit on claim for payment |
SPFC Co, LTD. |
|
1 |
|
KRW |
150 |
|
|
|
150 |
|
|
Law suit on claim for payment |
IT Engineering |
|
1 |
|
KRW |
21 |
|
|
|
21 |
|
|
Law suit on claim for payment |
(*1) |
The Company made a reliable estimate in 4 lawsuits by considering the possibility and amount of outflow of resources and recognized ₩44,309 million as provision for legal contingencies and claims.
|
For all other lawsuits and claims, management does not believe the Company has any present obligations and therefore, the Company has not
recognized any provisions as of December 31, 2014 for the matters.
117
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
Company |
|
Description |
POSCO |
|
POSCO has provided two blank checks to Korea Resources Corporation and six blank promissory notes and three blank checks to Korea National Oil Corporation as collateral for outstanding loans. |
|
|
Daewoo International Corporation |
|
As of December 31, 2014, Daew oo International Corporation has provided forty-five blank promissory notes and seventeen blank checks to Korea National Oil Corporation as collateral for the guarantee on performance for contracts and
others. |
|
|
POSCO ENGINEERING & CONSTRUCTION CO., LTD. |
|
As of December 31, 2014, POSCO ENGINEERING & CONSTRUCTION CO., LTD. has provided nine blank promissory notes and thirty-five blank checks as collateral for agreements and outstanding loans. |
|
|
POSCO ICT |
|
As of December 31, 2014, POSCO ICT has provided two blank promissory notes and sixteen blank checks to financial institutions as collateral for the guarantee on performance for contracts and others. |
40. Cash Flows from Operating Activities
Adjustments for operating cash flows for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Trade accounts and notes receivable |
|
₩ |
(239,214 |
) |
|
|
(612,379 |
) |
Other financial assets |
|
|
(27,601 |
) |
|
|
(98,420 |
) |
Inventories |
|
|
(780,582 |
) |
|
|
582,287 |
|
Other current assets |
|
|
242,170 |
|
|
|
181,755 |
|
Other long-term assets |
|
|
(53,225 |
) |
|
|
(23,412 |
) |
Trade accounts and notes payable |
|
|
(385,914 |
) |
|
|
47,323 |
|
Other financial liabilities |
|
|
201,191 |
|
|
|
194,419 |
|
Other current liabilities |
|
|
(402,574 |
) |
|
|
13,522 |
|
Provisions |
|
|
(63,884 |
) |
|
|
(42,052 |
) |
Payments severance benefits |
|
|
(160,792 |
) |
|
|
(129,038 |
) |
Plan assets |
|
|
(164,515 |
) |
|
|
(172,147 |
) |
Other long-term liabilities |
|
|
(79,032 |
) |
|
|
(58,290 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
(1,913,972 |
) |
|
|
(116,432 |
) |
|
|
|
|
|
|
|
|
|
41. Non-Cash Transactions
Significant non-cash transactions for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Construction-in-progress transferred to other accounts |
|
₩ |
5,852,017 |
|
|
|
6,610,644 |
|
Reclassification as asset held for sale |
|
|
2,213,673 |
|
|
|
|
|
Reclassification as liabilities directly related to assets held for |
|
|
621,303 |
|
|
|
|
|
Acquisition of short-term financial instruments through issuance of treasury stock |
|
|
|
|
|
|
804,496 |
|
118
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
42. Business combination
(a) |
On December 24, 2014, POSCO, the controlling Company, participated in the capital increase in POSCO PLANTEC Co., Ltd., an associate of the Company, expand investment growth and to improve financial structure of
POSCO PLANTEC Co., Ltd. upon the resolution of the Board of Directors. The Company has obtained control as its shares of POSCO PLANTEC Co., Ltd. increased from 41.95% to 73.94% in relation to the capital increase. |
(b) |
Goodwill recognized in this business combination is as follows: |
|
|
|
|
|
(in millions of Won) |
|
Amount |
|
I. Consideration transferred |
|
|
|
|
Fair value adjustment of shares holding(* 1) |
|
₩ |
106,423 |
|
Cash |
|
|
290,000 |
|
|
|
|
|
|
Total |
|
|
396,423 |
|
|
|
|
|
|
II. Non-controlling interests(* 2) |
|
|
82,231 |
|
|
|
|
|
|
Total |
|
|
478,654 |
|
|
|
|
|
|
III. Acquired identified assets and liabilities |
|
|
|
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
|
4,623 |
|
Trade accounts and notes receivable |
|
|
260,910 |
|
Other receivables and other financial assets |
|
|
171,723 |
|
Inventories |
|
|
20,570 |
|
Property, plant and equipment and intangible assets |
|
|
360,576 |
|
Other assets |
|
|
23,783 |
|
|
|
|
|
|
Total |
|
|
842,185 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Trade accounts and notes payable |
|
|
77,063 |
|
Borrowings |
|
|
342,279 |
|
Other payables and other financial liabilities |
|
|
44,495 |
|
Other liabilities |
|
|
80,112 |
|
|
|
|
|
|
Total |
|
|
543,949 |
|
|
|
|
|
|
Total acquired net assets |
|
|
298,236 |
|
|
|
|
|
|
IV. Goodwill recognized |
|
₩ |
180,418 |
|
|
|
|
|
|
(*1) |
Upon the acquisition of the business, a ₩57,480 million re-measurement gain on the Companys existing investment in the acquiree prior to acquisition date (acquisition cost: ₩48,943 million) was
recognized as finance income. The fair value of this existing investment was determined using quoted market price of shares on the acquisition date. |
119
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
(*2) |
The non-controlling interests at the acquisition date were measured using their proportionate shares in the recognized amounts of POSCO PLANTEC Co., Ltds identifiable net assets and preferred shares issued by
POSCO PLANTEC Co., Ltd. |
(c) |
If the Company had acquired POSCO PLANTEC Co., Ltd. as of January 1, 2014, pro-forma consolidated revenues and pro-forma consolidated net profit for the year ended December 31, 2014 would have been
₩65,393,737 million and ₩553,063 million, respectively. There have been no revenues and net profit incurred by POSCO PLANTEC Co., Ltd. from the acquisition date to the year ended December 31, 2014. |
43. Operating Segments
(a) |
The companys operating businesses are organized based on the nature of markets and customers. The Company has four reportable operating segments steel, construction, trading and others. The steel segment
includes production of steel products and revenue of such products. The engineering and construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings,
both in Korea and overseas. The trading segment consists of exporting and importing a wide range of steel products and raw materials that are both obtained from and supplied to POSCO, as well as between other suppliers and purchasers in Korea and
overseas. Other segments include power generation, liquefied natural gas production, network and system integration and logistics. The policies of classification and measurement on operating segments were the same as those that applied to the
consolidated financial statements as of and for the year ended December 31, 2013. |
(b) |
Information about reportable segments as of and for the years ended December 31, 2014 and 2013 was as follows: |
|
1) |
As of and for the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
External revenues |
|
₩ |
31,841,748 |
|
|
|
21,165,806 |
|
|
|
8,119,207 |
|
|
|
3,971,684 |
|
|
|
65,098,445 |
|
Internal revenues |
|
|
17,755,182 |
|
|
|
10,095,123 |
|
|
|
2,184,519 |
|
|
|
3,094,647 |
|
|
|
33,129,471 |
|
Within segment revenue |
|
|
7,596,072 |
|
|
|
4,914,197 |
|
|
|
505,076 |
|
|
|
174,293 |
|
|
|
13,189,638 |
|
Inter segment revenue |
|
|
10,159,110 |
|
|
|
5,180,926 |
|
|
|
1,679,443 |
|
|
|
2,920,354 |
|
|
|
19,939,833 |
|
Total revenues |
|
|
49,596,930 |
|
|
|
31,260,929 |
|
|
|
10,303,726 |
|
|
|
7,066,331 |
|
|
|
98,227,916 |
|
Interest income |
|
|
148,288 |
|
|
|
47,905 |
|
|
|
27,297 |
|
|
|
18,694 |
|
|
|
242,184 |
|
Interest expenses |
|
|
(524,735 |
) |
|
|
(92,855 |
) |
|
|
(61,954 |
) |
|
|
(127,843 |
) |
|
|
(807,387 |
) |
Depreciation and amortization |
|
|
(2,779,723 |
) |
|
|
(121,163 |
) |
|
|
(52,268 |
) |
|
|
(331,444 |
) |
|
|
(3,284,598 |
) |
Impairment loss of property, plant and equipment and others |
|
|
(137,708 |
) |
|
|
(35,131 |
) |
|
|
756 |
|
|
|
(50,085 |
) |
|
|
(222,168 |
) |
Impairment loss of available-for-sale financial assets |
|
|
(352,830 |
) |
|
|
(1,097 |
) |
|
|
(24,588 |
) |
|
|
(14,444 |
) |
|
|
(392,959 |
) |
Share of profit or loss of investment in associates and JVs |
|
|
(217,491 |
) |
|
|
(29,263 |
) |
|
|
(53,226 |
) |
|
|
(23,559 |
) |
|
|
(323,539 |
) |
Income tax expense |
|
|
(691,030 |
) |
|
|
(114,587 |
) |
|
|
(45,147 |
) |
|
|
(21,415 |
) |
|
|
(872,179 |
) |
Segment profit |
|
|
857,148 |
|
|
|
181,243 |
|
|
|
13,085 |
|
|
|
8,536 |
|
|
|
1,060,012 |
|
Segment assets |
|
|
74,138,707 |
|
|
|
13,597,301 |
|
|
|
10,396,691 |
|
|
|
10,742,877 |
|
|
|
108,875,576 |
|
Investment in associates |
|
|
18,227,743 |
|
|
|
1,076,373 |
|
|
|
1,091,402 |
|
|
|
1,154,187 |
|
|
|
21,549,705 |
|
Acquisition of non-current assets |
|
|
2,348,979 |
|
|
|
399,273 |
|
|
|
701,019 |
|
|
|
906,685 |
|
|
|
4,355,956 |
|
Segment liabilities |
|
|
23,750,464 |
|
|
|
10,384,329 |
|
|
|
6,345,852 |
|
|
|
6,139,971 |
|
|
|
46,620,616 |
|
120
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
As of and for the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Steel |
|
|
Trading |
|
|
Construction |
|
|
Others |
|
|
Total |
|
External revenues |
|
₩ |
31,794,574 |
|
|
|
18,307,888 |
|
|
|
6,896,838 |
|
|
|
4,865,350 |
|
|
|
61,864,650 |
|
Internal revenues |
|
|
16,229,002 |
|
|
|
7,611,372 |
|
|
|
3,885,190 |
|
|
|
3,019,246 |
|
|
|
30,744,810 |
|
Within segment revenue |
|
|
7,005,726 |
|
|
|
3,793,728 |
|
|
|
345,299 |
|
|
|
138,207 |
|
|
|
11,282,960 |
|
Inter segment revenue |
|
|
9,223,276 |
|
|
|
3,817,644 |
|
|
|
3,539,891 |
|
|
|
2,881,039 |
|
|
|
19,461,850 |
|
Total revenues |
|
|
48,023,576 |
|
|
|
25,919,260 |
|
|
|
10,782,028 |
|
|
|
7,884,596 |
|
|
|
92,609,460 |
|
Interest income |
|
|
162,149 |
|
|
|
46,064 |
|
|
|
47,070 |
|
|
|
19,892 |
|
|
|
275,175 |
|
Interest expenses |
|
|
(412,142 |
) |
|
|
(77,375 |
) |
|
|
(48,030 |
) |
|
|
(106,824 |
) |
|
|
(644,371 |
) |
Depreciation and amortization |
|
|
(2,383,010 |
) |
|
|
(43,775 |
) |
|
|
(36,614 |
) |
|
|
(235,365 |
) |
|
|
(2,698,764 |
) |
Impairment loss of property, plant and equipment and others |
|
|
(34,153 |
) |
|
|
(975 |
) |
|
|
(4,058 |
) |
|
|
(11,875 |
) |
|
|
(51,061 |
) |
Impairment loss of available-for-sale financial assets |
|
|
(203,468 |
) |
|
|
(435 |
) |
|
|
(97,919 |
) |
|
|
(10,172 |
) |
|
|
(311,994 |
) |
Share of profit or loss of investment in associates and JVs |
|
|
(250,084 |
) |
|
|
(131,534 |
) |
|
|
(71,068 |
) |
|
|
(26,326 |
) |
|
|
(479,012 |
) |
Income tax expense |
|
|
(466,756 |
) |
|
|
(27,549 |
) |
|
|
(87,660 |
) |
|
|
(73,371 |
) |
|
|
(655,336 |
) |
Segment profit |
|
|
1,449,446 |
|
|
|
9,516 |
|
|
|
147,177 |
|
|
|
197,449 |
|
|
|
1,803,588 |
|
Segment assets |
|
|
73,860,997 |
|
|
|
11,640,931 |
|
|
|
9,888,590 |
|
|
|
8,843,652 |
|
|
|
104,234,170 |
|
Investment in associates |
|
|
16,863,991 |
|
|
|
1,019,252 |
|
|
|
1,090,089 |
|
|
|
598,775 |
|
|
|
19,572,107 |
|
Acquisition of non-current assets |
|
|
5,955,799 |
|
|
|
242,413 |
|
|
|
150,469 |
|
|
|
1,191,243 |
|
|
|
7,539,924 |
|
Segment liabilities |
|
|
23,774,850 |
|
|
|
8,649,557 |
|
|
|
6,068,059 |
|
|
|
5,059,440 |
|
|
|
43,551,906 |
|
(c) |
Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items to their respective consolidated financial statement line items are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total revenue for reportable segments |
|
₩ |
98,227,916 |
|
|
|
92,609,460 |
|
Elimination of inter-segment revenue |
|
|
(33,129,471 |
) |
|
|
(30,744,810 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
65,098,445 |
|
|
|
61,864,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total profit for reportable segments |
|
₩ |
1,060,012 |
|
|
|
1,803,588 |
|
Goodwill and Corporate FV adjustments |
|
|
(122,015 |
) |
|
|
(91,718 |
) |
Elimination of inter-segment profits |
|
|
(381,338 |
) |
|
|
(356,690 |
) |
Income tax expense |
|
|
821,485 |
|
|
|
590,997 |
|
|
|
|
|
|
|
|
|
|
Profit before income tax expense |
|
₩ |
1,378,144 |
|
|
|
1,946,177 |
|
|
|
|
|
|
|
|
|
|
121
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total assets for reportable segments(* 1) |
|
₩ |
108,875,576 |
|
|
|
104,234,170 |
|
Equity-accounted investees |
|
|
(17,487,024 |
) |
|
|
(15,758,936 |
) |
Goodwill and Corporate FV adjustments |
|
|
4,282,455 |
|
|
|
3,560,873 |
|
Elimination of inter-segment assets |
|
|
(10,418,834 |
) |
|
|
(7,580,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
85,252,173 |
|
|
|
84,455,407 |
|
|
|
|
|
|
|
|
|
|
(*1) |
As segment assets and liabilities are determined based on separate financial statements, for subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate
financial statements is eliminated upon consolidation. In addition, adjustments are made to adjust the amount of investment in associates and joint ventures from the amount reflected in segment assets to that determined using equity method in
consolidated financial statements. |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total liabilities for reportable segments |
|
₩ |
46,620,616 |
|
|
|
43,551,906 |
|
Corporate FV adjustments |
|
|
507,073 |
|
|
|
337,442 |
|
Elimination of inter-segment liabilities |
|
|
(7,166,880 |
) |
|
|
(5,255,971 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
39,960,809 |
|
|
|
38,633,377 |
|
|
|
|
|
|
|
|
|
|
122
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
5) |
Other significant items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Total Segment |
|
|
Corporate FV adjustments |
|
|
Elimination of inter-segment |
|
|
Consolidated |
|
Interest income |
|
₩ |
242,184 |
|
|
|
|
|
|
|
(13,930 |
) |
|
|
228,254 |
|
Interest expenses |
|
|
(807,387 |
) |
|
|
(45,668 |
) |
|
|
57,470 |
|
|
|
(795,585 |
) |
Depreciation and amortization |
|
|
(3,284,598 |
) |
|
|
(111,263 |
) |
|
|
157,312 |
|
|
|
(3,238,549 |
) |
Share of profit or loss of investment in associates |
|
|
(323,539 |
) |
|
|
|
|
|
|
23,646 |
|
|
|
(299,893 |
) |
Income tax expense |
|
|
(872,179 |
) |
|
|
33,473 |
|
|
|
17,221 |
|
|
|
(821,485 |
) |
Impairment loss of property, plant and equipment and others |
|
|
(222,168 |
) |
|
|
|
|
|
|
47,838 |
|
|
|
(174,330 |
) |
Impairment loss of available-for-sale financial assets |
|
|
(392,959 |
) |
|
|
|
|
|
|
23,236 |
|
|
|
(369,723 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(5,660,646 |
) |
|
|
(123,458 |
) |
|
|
312,793 |
|
|
|
(5,471,311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Total Segment |
|
|
Corporate FV adjustments |
|
|
Elimination of inter-segment |
|
|
Consolidated |
|
Interest income |
|
₩ |
275,175 |
|
|
|
|
|
|
|
(14,777 |
) |
|
|
260,398 |
|
Interest expenses |
|
|
(644,371 |
) |
|
|
(34,814 |
) |
|
|
21,504 |
|
|
|
(657,681 |
) |
Depreciation and amortization |
|
|
(2,698,764 |
) |
|
|
(84,223 |
) |
|
|
97,437 |
|
|
|
(2,685,550 |
) |
Share of profit or loss of investment in associates |
|
|
(479,012 |
) |
|
|
|
|
|
|
299,203 |
|
|
|
(179,809 |
) |
Income tax expense |
|
|
(655,336 |
) |
|
|
25,074 |
|
|
|
39,265 |
|
|
|
(590,997 |
) |
Impairment loss of property, plant and equipment and others |
|
|
(51,061 |
) |
|
|
|
|
|
|
(97,424 |
) |
|
|
(148,485 |
) |
Impairment loss of available-for-sale financial assets |
|
|
(311,994 |
) |
|
|
|
|
|
|
31,757 |
|
|
|
(280,237 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(4,565,363 |
) |
|
|
(93,963 |
) |
|
|
376,965 |
|
|
|
(4,282,361 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
Revenue by geographic area for years ended December 31, 2014 and 2013 was as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Domestic |
|
₩ |
45,805,167 |
|
|
|
45,953,826 |
|
Japan |
|
|
2,047,686 |
|
|
|
1,920,253 |
|
China |
|
|
6,319,101 |
|
|
|
6,493,119 |
|
Asia-other |
|
|
5,055,373 |
|
|
|
3,011,980 |
|
North America |
|
|
2,199,418 |
|
|
|
1,720,895 |
|
Others |
|
|
3,671,700 |
|
|
|
2,764,577 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
65,098,445 |
|
|
|
61,864,650 |
|
|
|
|
|
|
|
|
|
|
In presenting information on the basis of geography, segment revenue is based on the geographical location of
customers.
123
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
|
(e) |
Non-current assets by geographic area as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Domestic |
|
₩ |
33,837,971 |
|
|
|
33,116,006 |
|
Japan |
|
|
177,322 |
|
|
|
203,241 |
|
China |
|
|
1,745,125 |
|
|
|
1,632,490 |
|
Asia-other |
|
|
4,867,569 |
|
|
|
4,703,943 |
|
North America |
|
|
186,753 |
|
|
|
167,468 |
|
Others |
|
|
2,367,036 |
|
|
|
2,292,040 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
43,181,776 |
|
|
|
42,115,188 |
|
|
|
|
|
|
|
|
|
|
Non-current assets by geographic area include investment property, property, plant and equipment, goodwill and
other intangible assets.
|
(f) |
There are no customers whose revenue is 10% or more of consolidated revenue. |
124
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
POSCO
Separate Financial Statements
December 31, 2014
and 2013
(With Independent Auditors Report Thereon)
POSCO and Subsidiaries
Notes to the Consolidated Financial Statements
As of
December 31, 2014 and 2013, Continued
Table of Contents
|
|
|
|
|
|
|
Page |
|
|
|
Separate Financial Statements |
|
|
|
|
|
|
Separate Statements of Financial Position |
|
|
3 |
|
|
|
Separate Statements of Comprehensive Income |
|
|
5 |
|
|
|
Separate Statements of Changes in Equity |
|
|
6 |
|
|
|
Separate Statements of Cash Flows |
|
|
7 |
|
|
|
Notes to the Separate Financial Statements |
|
|
9 |
|
|
|
Independent Auditors Review Report on Internal Accounting Control System |
|
|
|
|
|
|
Report on the Operations of Internal Accounting Control System |
|
|
|
|
POSCO
Separate Statements of Financial Position
As of
December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
December 31, 2014 |
|
|
December 31, 2013 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
4,5,22 |
|
₩ |
1,742,767 |
|
|
|
1,394,315 |
|
Trade accounts and notes receivable, net |
|
6,22,37 |
|
|
3,157,266 |
|
|
|
3,393,444 |
|
Other receivables, net |
|
7,22,37 |
|
|
562,930 |
|
|
|
281,161 |
|
Other short-term financial assets |
|
8,22 |
|
|
693,729 |
|
|
|
2,318,816 |
|
Inventories |
|
9,34 |
|
|
4,383,568 |
|
|
|
4,538,657 |
|
Assets held for sale |
|
10 |
|
|
1,051,177 |
|
|
|
1,304 |
|
Other current assets |
|
11 |
|
|
31,692 |
|
|
|
25,782 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
|
11,623,129 |
|
|
|
11,953,479 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term trade accounts and notes receivable, net |
|
6,22 |
|
|
23,841 |
|
|
|
4,464 |
|
Other receivables, net |
|
7,22 |
|
|
26,360 |
|
|
|
45,738 |
|
Other long-term financial assets |
|
8,22 |
|
|
1,794,590 |
|
|
|
3,362,594 |
|
Investments in subsidiaries, associates and joint ventures |
|
12 |
|
|
16,178,891 |
|
|
|
15,092,836 |
|
Investment property, net |
|
13 |
|
|
90,137 |
|
|
|
92,879 |
|
Property, plant and equipment, net |
|
14 |
|
|
22,323,215 |
|
|
|
23,240,603 |
|
Intangible assets, net |
|
15 |
|
|
403,907 |
|
|
|
438,783 |
|
Other long-term assets |
|
11 |
|
|
133,253 |
|
|
|
10,902 |
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets |
|
|
|
|
40,974,194 |
|
|
|
42,288,799 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
₩ |
52,597,323 |
|
|
|
54,242,278 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
3
POSCO
Separate Statements of Financial Position
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
December 31, 2014 |
|
|
December 31, 2013 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
22,37 |
|
₩ |
777,401 |
|
|
|
735,457 |
|
Short-term borrowings |
|
4,6,16,22 |
|
|
1,236,290 |
|
|
|
1,931,283 |
|
Other payables |
|
17,22,37 |
|
|
1,032,496 |
|
|
|
791,883 |
|
Other short-term financial liabilities |
|
18,22 |
|
|
9,236 |
|
|
|
46,009 |
|
Current income tax liabilities |
|
35 |
|
|
304,362 |
|
|
|
153,278 |
|
Provisions |
|
19 |
|
|
47,759 |
|
|
|
8,501 |
|
Other current liabilities |
|
21 |
|
|
108,508 |
|
|
|
38,109 |
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
|
3,516,052 |
|
|
|
3,704,520 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
4,8,16,22 |
|
|
5,300,927 |
|
|
|
6,731,788 |
|
Other payables |
|
17,22 |
|
|
88,807 |
|
|
|
124,679 |
|
Other long-term financial liabilities |
|
18,22 |
|
|
50,574 |
|
|
|
231,539 |
|
Defined benefit liabilities, net |
|
20 |
|
|
86,158 |
|
|
|
100,650 |
|
Deferred tax liabilities |
|
35 |
|
|
1,047,666 |
|
|
|
1,034,102 |
|
Provisions |
|
19 |
|
|
31,474 |
|
|
|
|
|
Other long-term liabilities |
|
21 |
|
|
234 |
|
|
|
3,538 |
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
|
|
|
6,605,840 |
|
|
|
8,226,296 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
10,121,892 |
|
|
|
11,930,816 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders Equity |
|
|
|
|
|
|
|
|
|
|
Share capital |
|
23 |
|
|
482,403 |
|
|
|
482,403 |
|
Capital surplus |
|
23 |
|
|
1,247,616 |
|
|
|
1,233,040 |
|
Hybrid bonds |
|
24 |
|
|
996,919 |
|
|
|
996,919 |
|
Reserves |
|
25 |
|
|
94,042 |
|
|
|
403,939 |
|
Treasury shares |
|
26 |
|
|
(1,534,457 |
) |
|
|
(1,579,123 |
) |
Retained earnings |
|
27 |
|
|
41,188,908 |
|
|
|
40,774,284 |
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
4 |
|
|
42,475,431 |
|
|
|
42,311,462 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
|
|
₩ |
52,597,323 |
|
|
|
54,242,278 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
4
POSCO
Separate Statements of Comprehensive Income
For the
years ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won, except per share informations) |
|
Notes |
|
2014 |
|
|
2013 |
|
Revenue |
|
28,37 |
|
₩ |
29,218,854 |
|
|
|
30,543,545 |
|
Cost of sales |
|
9,20,30,34,37 |
|
|
(24,955,649 |
) |
|
|
(26,494,617 |
) |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
4,263,205 |
|
|
|
4,048,928 |
|
Selling and administrative expenses |
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
20,22,29,30,34 |
|
|
(933,984 |
) |
|
|
(892,966 |
) |
Selling expenses |
|
29,34 |
|
|
(979,186 |
) |
|
|
(940,829 |
) |
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
31 |
|
|
2,350,035 |
|
|
|
2,215,133 |
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
|
|
|
|
|
|
Finance income |
|
22,32 |
|
|
1,050,794 |
|
|
|
967,073 |
|
Finance costs |
|
22,32 |
|
|
(1,014,269 |
) |
|
|
(918,360 |
) |
Other non-operating income and expenses |
|
|
|
|
|
|
|
|
|
|
Other non-operating income |
|
31,33,37 |
|
|
46,864 |
|
|
|
140,048 |
|
Other non-operating expenses |
|
31,33,34,37 |
|
|
(712,031 |
) |
|
|
(418,599 |
) |
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax |
|
|
|
|
1,721,393 |
|
|
|
1,985,295 |
|
Income tax expense |
|
35 |
|
|
(582,435 |
) |
|
|
(402,699 |
) |
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
1,138,958 |
|
|
|
1,582,596 |
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
Remeasurements of defined benefit plans, net of tax |
|
20 |
|
|
(42,464 |
) |
|
|
(8,692 |
) |
Items that are or may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
|
|
Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
8,22,25 |
|
|
(309,897 |
) |
|
|
400,577 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income, net of tax |
|
|
|
₩ |
786,597 |
|
|
|
1,974,481 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share (in Won) |
|
36 |
|
₩ |
13,858 |
|
|
|
20,052 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
5
POSCO
Separate Statements of Changes in Equity
For the years
ended December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Share capital |
|
|
Capital surplus |
|
|
Hybrid bonds |
|
|
Reserves |
|
|
Treasury shares |
|
|
Retained earnings |
|
|
Total |
|
Balance as of January 1, 2013 |
|
₩ |
482,403 |
|
|
|
1,227,692 |
|
|
|
|
|
|
|
3,362 |
|
|
|
(2,391,406 |
) |
|
|
39,842,497 |
|
|
|
39,164,548 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,582,596 |
|
|
|
1,582,596 |
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400,577 |
|
|
|
|
|
|
|
|
|
|
|
400,577 |
|
Remeasurements of defined benefit plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,692 |
) |
|
|
(8,692 |
) |
Transactions with owners of the Company, recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(463,467 |
) |
|
|
(463,467 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(154,489 |
) |
|
|
(154,489 |
) |
Issuance of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
996,919 |
|
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,161 |
) |
|
|
(24,161 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
5,348 |
|
|
|
|
|
|
|
|
|
|
|
812,283 |
|
|
|
|
|
|
|
817,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013 |
|
₩ |
482,403 |
|
|
|
1,233,040 |
|
|
|
996,919 |
|
|
|
403,939 |
|
|
|
(1,579,123 |
) |
|
|
40,774,284 |
|
|
|
42,311,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2014 |
|
₩ |
482,403 |
|
|
|
1,233,040 |
|
|
|
996,919 |
|
|
|
403,939 |
|
|
|
(1,579,123 |
) |
|
|
40,774,284 |
|
|
|
42,311,462 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,138,958 |
|
|
|
1,138,958 |
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(309,897 |
) |
|
|
|
|
|
|
|
|
|
|
(309,897 |
) |
Remeasurements of defined benefit plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42,464 |
) |
|
|
(42,464 |
) |
Transactions with owners of the Company, recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(159,568 |
) |
|
|
(159,568 |
) |
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,600 |
) |
|
|
(43,600 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
14,576 |
|
|
|
|
|
|
|
|
|
|
|
44,666 |
|
|
|
|
|
|
|
59,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2014 |
|
₩ |
482,403 |
|
|
|
1,247,616 |
|
|
|
996,919 |
|
|
|
94,042 |
|
|
|
(1,534,457 |
) |
|
|
41,188,908 |
|
|
|
42,475,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
6
POSCO
Separate Statements of Cash Flows
For the year ended
December 31, 2014 and 2013
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
2014 |
|
|
2013 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
₩ |
1,138,958 |
|
|
|
1,582,596 |
|
Adjustments for : |
|
|
|
|
|
|
|
|
|
|
Costs for defined benefit plans |
|
|
|
|
114,372 |
|
|
|
122,656 |
|
Employee benefits |
|
|
|
|
19,777 |
|
|
|
|
|
Depreciation |
|
|
|
|
2,067,793 |
|
|
|
1,932,002 |
|
Amortization |
|
|
|
|
74,112 |
|
|
|
38,067 |
|
Finance income |
|
|
|
|
(773,099 |
) |
|
|
(659,054 |
) |
Finance costs |
|
|
|
|
756,480 |
|
|
|
655,855 |
|
Valuation losses of inventories |
|
|
|
|
24,867 |
|
|
|
4,532 |
|
Gain on disposal of property, plant and equipment |
|
|
|
|
(8,882 |
) |
|
|
(6,773 |
) |
Loss on disposal of property, plant and equipment |
|
|
|
|
57,777 |
|
|
|
94,533 |
|
Impairment loss on property, plant and equipment |
|
|
|
|
30,334 |
|
|
|
5,697 |
|
Loss on disposal of investments in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
|
|
12,295 |
|
Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
|
|
209,795 |
|
|
|
235,794 |
|
Gain on disposal of assets held for sale |
|
|
|
|
|
|
|
|
(67,875 |
) |
Other provision expense |
|
|
|
|
89,844 |
|
|
|
|
|
Income tax expense |
|
|
|
|
582,435 |
|
|
|
402,699 |
|
Others |
|
|
|
|
86,716 |
|
|
|
(6,546 |
) |
Changes in operating assets and liabilities |
|
39 |
|
|
197,954 |
|
|
|
687,980 |
|
Interest received |
|
|
|
|
97,441 |
|
|
|
109,073 |
|
Interest paid |
|
|
|
|
(321,684 |
) |
|
|
(390,175 |
) |
Dividends received |
|
|
|
|
151,150 |
|
|
|
232,281 |
|
Income taxes paid |
|
|
|
|
(433,055 |
) |
|
|
(222,111 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
₩ |
4,163,085 |
|
|
|
4,763,526 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
7
POSCO
Separate Statements of Cash Flows
For the year ended
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
2014 |
|
|
2013 |
|
Cash flows from investing activities |
|
40 |
|
|
|
|
|
|
|
|
Proceeds from disposal of short-term financial instruments |
|
|
|
₩ |
4,103,905 |
|
|
|
3,528,479 |
|
Proceeds from disposal of long-term financial instruments |
|
|
|
|
|
|
|
|
5 |
|
Decrease in held-to-maturity investments |
|
|
|
|
|
|
|
|
30,000 |
|
Proceeds from disposal of available-for-sale investments |
|
|
|
|
41,740 |
|
|
|
194,820 |
|
Collection of long-term loans |
|
|
|
|
19,751 |
|
|
|
14,441 |
|
Proceeds from disposal of investment in subsidiaries, associates and joint ventures |
|
|
|
|
427 |
|
|
|
6,114 |
|
Proceeds from disposal of investment property |
|
|
|
|
18 |
|
|
|
|
|
Proceeds from disposal of intangible assets |
|
|
|
|
2,347 |
|
|
|
1,100 |
|
Proceeds from disposal of assets held for sale |
|
|
|
|
1,291 |
|
|
|
|
|
Acquisition of short-term financial investments |
|
|
|
|
(2,478,109 |
) |
|
|
(4,144,157 |
) |
Acquisition of available-for-sale investments |
|
|
|
|
(30,727 |
) |
|
|
(71,045 |
) |
Increase in long-term loans |
|
|
|
|
(26,451 |
) |
|
|
(3,354 |
) |
Acquisition of investment in subsidiaries, associates and joint ventures |
|
|
|
|
(1,209,223 |
) |
|
|
(1,193,501 |
) |
Acquisition of investment property |
|
|
|
|
(41 |
) |
|
|
|
|
Acquisition of property, plant and equipment |
|
|
|
|
(1,643,789 |
) |
|
|
(3,013,628 |
) |
Payment for cost of disposal of property, plant and equipment |
|
|
|
|
(15,346 |
) |
|
|
(14,297 |
) |
Acquisition of intangible assets |
|
|
|
|
(20,869 |
) |
|
|
(103,041 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
|
(1,255,076 |
) |
|
|
(4,768,064 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
40 |
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
|
|
1,429,041 |
|
|
|
2,431,539 |
|
Increase in long-term financial liabilities |
|
|
|
|
7,196 |
|
|
|
3,766 |
|
Receipt of government grants |
|
|
|
|
|
|
|
|
5,000 |
|
Proceeds from disposal of treasury shares |
|
|
|
|
43,188 |
|
|
|
14,019 |
|
Proceeds from issuance of hybrid bonds |
|
|
|
|
|
|
|
|
996,919 |
|
Repayment of borrowings |
|
|
|
|
(3,350,330 |
) |
|
|
(3,132,803 |
) |
Decrease in long-term financial liabilities |
|
|
|
|
(7,125 |
) |
|
|
(3,009 |
) |
Decrease in derivative liabilities |
|
|
|
|
|
|
|
|
(23,348 |
) |
Payment of cash dividends |
|
|
|
|
(637,927 |
) |
|
|
(617,570 |
) |
Payment of interest of hybrid bonds |
|
|
|
|
(43,600 |
) |
|
|
(21,860 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
|
|
(2,559,557 |
) |
|
|
(347,347 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash held |
|
|
|
|
|
|
(6,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
348,452 |
|
|
|
(358,245 |
) |
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the year |
|
|
|
|
1,394,315 |
|
|
|
1,752,560 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the year |
|
|
|
₩ |
1,742,767 |
|
|
|
1,394,315 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
8
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013
1. Reporting Entity
POSCO (the Company) is the largest steel producer in Korea which was incorporated on April 1, 1968, under the Commercial Code of the Republic
of Korea to manufacture and sell steel rolled products and plates in the domestic and overseas markets.
The shares of the Company have been listed on the
Korea Exchange since 1988. The Company owns and operates two steel plants (Pohang and Gwangyang) and one office in Korea, and it also operates internationally through seven of its overseas liaison offices.
As of December 31, 2014 and 2013, major shareholders are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
Shareholders name |
|
Number of shares |
|
|
Ownership (%) |
|
|
Number of shares |
|
|
Ownership (%) |
|
National Pension Service |
|
|
7,203,493 |
|
|
|
8.26 |
% |
|
|
6,577,907 |
|
|
|
7.54 |
% |
Nippon Steel & Sumitomo Metal Corporation(* 1) |
|
|
4,394,712 |
|
|
|
5.04 |
% |
|
|
4,394,712 |
|
|
|
5.04 |
% |
Saudi Arabian Monetary Agency |
|
|
2,109,593 |
|
|
|
2.42 |
% |
|
|
948,477 |
|
|
|
1.09 |
% |
Hyundai Heavy Industries Co., Ltd. and subsidiaries(* 2) |
|
|
1,319,560 |
|
|
|
1.51 |
% |
|
|
2,197,707 |
|
|
|
2.52 |
% |
Pohang University of Science and Technology |
|
|
1,905,000 |
|
|
|
2.18 |
% |
|
|
1,905,000 |
|
|
|
2.18 |
% |
KB Financial group Inc. and subsidiaries(* 2) |
|
|
1,847,438 |
|
|
|
2.12 |
% |
|
|
1,846,994 |
|
|
|
2.12 |
% |
Others |
|
|
68,407,039 |
|
|
|
78.47 |
% |
|
|
69,316,038 |
|
|
|
79.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,186,835 |
|
|
|
100.00 |
% |
|
|
87,186,835 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Nippon Steel & Sumitomo Metal Corporation owns American Depository Receipts (ADRs) of the Company, each of which represents 0.25 share of POSCOs common share which has par value of ₩5,000 per
share. |
(*2) |
Includes shares held by subsidiaries pursuant to Articles of Incorporation. |
As of December 31, 2014, the
shares of the Company are listed on the Korea Exchange, while its depository shares are listed on the New York, Tokyo and London Stock Exchanges.
2.
Statement of Compliance
Statement of compliance
The separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards (K-IFRS), as prescribed
in the Act on External Audits of Corporations.
These financial statements are separate financial statements prepared in accordance with K-IFRS
No. 1027 Separate Financial Statements presented by a parent, an investor with joint control of, or significant influence over, an investee, in which the investments are accounted for at cost.
9
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
The separate financial statements were authorized for issue by the Board of Directors on January 29,
2015, and will be submitted for approval at the shareholders meeting to be held on March 13, 2015.
Basis of measurement
The separate financial statements have been prepared on the historical cost basis, except for the following material items in the statement of financial
position, as described in the accounting policy below.
(a) |
Derivatives instruments are measured at fair value |
(b) |
Available-for-sale financial assets are measured at fair value |
(c) |
Defined benefit liabilities are measured at the present value of the defined benefit obligation less the fair value of the plan asset. |
Functional and presentation currency
These separate
financial statements are presented in Korean won, which is the Companys functional currency and the currency of the primary economic environment in which the Company operates.
Use of estimates and judgements
The preparation of the
financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period prospectively.
Information about critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the separate financial statements is included in the following notes:
|
|
|
Note 8 - Other financial asset |
|
|
|
Note 13 - Investment property, net |
|
|
|
Note 14 - Property, plant and equipment, net |
10
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Assumptions and estimation uncertainties |
Information about assumptions and estimation
uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes:
|
|
|
Note 20 - Employee benefits |
|
|
|
Note 38 - Commitments and contingencies |
(c) |
Measurement of fair value |
The Companys accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the department manager of finance department.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker
quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of K-IFRS including the level in the fair
value hierarchy in which such valuation techniques should be classified.
When measuring the fair value of an asset or a liability, the
Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
|
Level 1 |
unadjusted quoted prices in active markets for identical assets or liabilities. |
|
Level 2 |
inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
|
Level 3 |
inputs for the assets or liability that are not based on observable market data. |
If the inputs
used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Information about the assumptions made in measuring fair values is included in the following notes:
|
|
|
Note 22 Financial instruments |
11
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Changes in accounting policies
The Company has adopted the following amendments to standards and new interpretation with a date of initial application of January 1, 2014.
1) |
K-IFRS No. 1032, Financial Instruments: Presentation |
2) |
K-IFRS No. 1036, Impairment of Assets |
3) |
K-IFRS No. 2121, Levies |
The nature of the changes are explained below.
1) |
Offsetting financial assets and financial liabilities |
The Company has adopted amendments to K-IFRS
No. 1032, Offsetting Financial Assets and Financial Liabilities since January 1, 2014. The amendments clarify the meaning of currently has a legally enforceable right of set-off. According to the amendments, the
right to set off should not be contingent on a future event, and legally enforceable in the normal course of business, in the event of default, and in the event of insolvency or bankruptcy of the entity and all of the counterparties. The amendments
also state that some gross settlement systems would be considered equivalent to net settlement if they eliminate or result in insignificant credit and liquidity risk and process receivables and payables in a single settlement process or cycle.
2) |
Recoverable Amount Disclosures for Non-Financial Assets |
The Company has adopted amendments to K-IFRS
No. 1036 Impairment of Assets since January 1, 2014. The amendments require the disclosure of information about the recoverable amount of impaired assets, if that amount is based on fair value less costs of disposal. They also
require the disclosure of additional information about that fair value measurement. In addition, if the recoverable amount of impaired assets based on fair value less costs of disposal was measured using a present value technique, the amendments
also require the disclosure of the discount rates that have been used in the current and previous measurements.
The Company has adopted K-IFRS No. 2121, Levies since January 1, 2014. K-IFRS
No. 2121 is an Interpretation of K-IFRS No. 1037 Provisions, Contingent Liabilities and Contingent Assets, on the accounting for levies imposed by governments. K-IFRS No. 1037 sets out criteria for the recognition of a liability, one
of which is the requirement for the entity to have a present obligation as a result of a past event (or obligating event). K-IFRS No. 2121 clarifies that the obligating event that gives rise to a liability to pay a levy is the
activity described in the relevant legislation that triggers the payment of the levy.
The interpretation does not provide guidance on the accounting for
the costs arising from recognizing the liability to pay a levy. Other K-IFRSs should be applied to determine whether the recognition of a liability to pay a levy gives rise to an asset or an expense.
12
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Impact of changes in accounting policies
Upon adoption of amendments to K-IFRS No. 1032 and K-IFRS No. 2121, there is no impact on the Companys prior years separate financial
statements. Upon adoption of amendments to K-IFRS No. 1036, the Company has made the required disclosures in the annual financial statements for the year ending December 31, 2014 as applicable.
3. Summary of Significant Accounting Policies
The
significant accounting policies applied by the Company in preparation of its separate financial statements are included below. The accounting policies set out below have been applied consistently to all periods presented in these financial
statements, except for those as disclosed in note 2.
Investments in subsidiaries, associates and joint ventures
These separate financial statements are prepared and presented in accordance with K-IFRS No. 1027 Consolidated and Separate Financial
Statements. The Company applied the cost method to investments in subsidiaries, associates and joint ventures in accordance with K-IFRS No. 1027. Dividends from a subsidiary, associate or joint venture are recognized in profit or loss
when the right to receive the dividend is established.
Foreign currency transactions and translation
Foreign currency transactions are initially recorded using the spot exchange rate between the functional currency and the foreign currency at the date of the
transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at
the date of the original transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date fair value is initially determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated
on initial recognition during the period or in previous financial statements are recognized in profit or loss in the period in which they arise. When gains or losses on non-monetary items are recognized in other comprehensive income, exchange
components of those gains or losses are recognized in other comprehensive income. Conversely, when gains or losses on non-monetary items are recognized in profit or loss, exchange components of those gains or losses are recognized in profit or loss.
13
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments in highly liquid securities that are readily convertible to known
amounts of cash with maturities of three months or less from the acquisition date and which are subject to an insignificant risk of changes in value. Equity investments are excluded from cash and cash equivalents.
Non-derivative financial assets
The Company recognizes
and measures non-derivative financial assets by the following four categories: financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets. The Company recognizes
financial assets in the separate statement of financial position when the Company becomes a party to the contractual provisions of the instrument.
Upon
initial recognition, non-derivative financial assets are measured at their fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the assets acquisition
or issuance.
(a) |
Financial assets at fair value through profit or loss |
Financial assets are classified at fair
value through profit or loss if they are held for trading or designated as such upon initial recognition. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or
loss are measured at fair value, and changes therein are recognized in profit or loss.
(b) |
Held-to-maturity financial assets |
A non-derivative financial asset with a fixed or
determinable payment and fixed maturity, for which the Company has the positive intention and ability to hold to maturity, is classified as held-to-maturity financial assets. Subsequent to initial recognition, held-to-maturity financial assets are
measured at amortized cost using the effective interest method.
(c) |
Loans and receivables |
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method unless the effect of discounting is immaterial.
14
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
Available-for-sale financial assets |
Available-for-sale financial assets are those
non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held-to-maturity financial assets or loans and receivables. Subsequent to initial recognition,
they are measured at fair value, with changes in fair value, net of any tax effect, recorded in other comprehensive income in equity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost. When a financial asset is derecognized or impairment losses are recognized, the cumulative gain
or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Dividends on an available-for-sale equity instrument are recognized in profit or loss when the Companys right to receive payment is
established.
(e) |
Derecognition of non-derivative financial assets |
The Company derecognizes non-derivative
financial assets when the contractual rights to the cash flows from the financial asset expire, or the Company transfers the rights to receive the contractual cash flows from the financial asset as well as substantially all the risks and rewards of
ownership of the financial asset. Any interest in a transferred financial asset that is created or retained by the Company is recognized as a separate asset or liability.
If the Company retains substantially all the risks and rewards of ownership of the transferred financial assets, the Company continues to
recognize the transferred financial assets and recognizes financial liabilities for the consideration received.
(f) |
Offsetting a financial asset and a financial liability |
Financial assets and financial
liabilities are offset and the net amount is presented in the separate statement of financial position only when the Company currently has a legally enforceable right to offset the recognized amounts, and there is the intention to settle on a net
basis or to realize the asset and settle the liability simultaneously.
15
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Inventories
Inventory costs are determined by using the moving-weighted average method. The cost of inventories comprise all costs of purchase, costs of conversion and
other costs incurred in bringing the inventories to their present location and condition. The allocation of fixed production overheads to the costs of finished goods or work in progress are based on the normal capacity of the production facilities.
When inventories are sold, the carrying amount of those inventories is recognized as cost of goods sold in the period in which the related revenue is
recognized. Inventories are measured at the lower of cost and net realizable value. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss
occurs. The amount of any reversal of any write-down of inventories arising from an increase in net realizable value is recognized as a reduction in the amount of inventories recognized as a cost of goods sold in the period in which the reversal
occurs.
Non-current assets held for sale
Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing
use are classified as held for sale. In order to be classified as held for sale, the assets or disposal groups must be available for immediate sale in their present condition and their sale must be highly probable. The assets or disposal groups that
are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell.
The Company
recognizes an impairment loss for any initial or subsequent write-down of an asset or disposal group to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss
previously recognized in accordance with K-IFRS No. 1036 Impairment of Assets.
A non-current asset that is classified as held for sale
or part of a disposal group classified as held for sale is not depreciated (or amortized).
16
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Investment property
Property held to earn rentals or for capital appreciation or both is classified as investment property. Investment property is measured initially at its cost.
Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.
Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future
economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss
as incurred.
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting date and adjusted, if appropriate. The
change is accounted for as a change in an accounting estimate.
Property, plant and equipment
Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and any
accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management and, when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the item and restoring the site on
which it is located.
The cost of replacing a part of an item is recognized in the carrying amount of the item of property, plant and equipment, if the
following recognition criteria are met:
(a) |
it is probable that future economic benefits associated with the item will flow to the Company and |
(b) |
the cost can be measured reliably. |
The carrying amount of the replaced part is derecognized at the time the
replacement part is recognized. The costs of the day-to-day servicing of the item are recognized in profit or loss as incurred.
17
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Items of property, plant and equipment are depreciated from the date they are available for use or, in
respect of self-constructed assets, from the date that the asset is completed and ready for use. Other than land, the costs of an asset less its estimated residual value are depreciated. Depreciation of property, plant and equipment is recognized in
profit or loss on a straight-line basis, which most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, over the estimated useful lives of each component of an item of property, plant and
equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognized.
The estimated useful lives for the current and comparative periods are as follows:
|
|
|
|
|
|
|
Buildings |
|
|
5-40 years |
|
|
|
Structures |
|
|
5-40 years |
|
|
|
Machinery and equipment |
|
|
15 years |
|
|
|
Vehicles |
|
|
4-9 years |
|
|
|
Tools |
|
|
4 years |
|
|
|
Furniture and fixtures |
|
|
4 years |
|
|
|
Lease assets |
|
|
18 years |
|
|
|
The estimated residual value, useful lives and the depreciation method are reviewed at least at the end of each reporting
period and, if expectations differ from previous estimates, the changes are accounted for as changes in accounting estimates.
18
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Borrowing costs
The Company capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that
asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. Financial assets and inventories that are manufactured or
otherwise produced over a short period of time are not qualifying assets. Assets that are ready for their intended use or sale when acquired are not qualifying assets.
To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowing
costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Company immediately recognizes other borrowing costs as an
expense. To the extent that the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to
the expenditures on that asset. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made specifically for the purpose
of obtaining a qualifying asset. The amount of borrowing costs that the Company capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period.
Intangible assets
Intangible assets are measured
initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.
Amortization of intangible
assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, as there are no
foreseeable limits to the periods over which club memberships are expected to be available for use, this intangible asset is determined as an having an indefinite useful life and not amortized.
|
|
|
|
|
|
|
Intellectual property rights |
|
|
10 years |
|
|
|
Development costs |
|
|
4 years |
|
|
|
Port facilities usage rights |
|
|
4-75 years |
|
|
|
Other intangible assets |
|
|
4 years |
|
|
|
19
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed
at the end of each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life
assessments for those assets. Changes are accounted for as changes in accounting estimates.
Expenditures on research activities, undertaken with the
prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is
technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or
loss as incurred.
Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which
they relate. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.
Government grants
Government grants are not recognized
unless there is reasonable assurance that the Company will comply with the grants conditions and that the grant will be received.
(b) |
Grants related to assets |
Government grants whose primary condition is that the Company
purchase, construct or otherwise acquire long-term assets are deducted from the carrying amount of the assets and recognized in profit or loss on a systematic and rational basis over the life of the depreciable assets.
(b) |
Grants related to income |
Government grants which are intended to compensate the Company for
expenses incurred are deducted from the related expenses.
Leases
The Company classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Company assumes substantially
all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.
20
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
At the commencement of the lease term, the Company recognizes as finance assets
and finance liabilities the lower amount of the fair value of the leased property and the present value of the minimum lease payments, each determined at the inception of the lease. Any initial direct costs are added to the amount recognized as an
asset.
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance
charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.
The depreciable amount of a leased asset is allocated to each accounting period during the period of expected use on a systematic basis
consistent with the depreciation policy the Company adopts for similar depreciable assets that are owned. If there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is fully depreciated over
the shorter of the lease term and its useful life.
Leases obligations under operating leases are recognized as an expense on a
straight-line basis over the lease term. Contingent rents are charged as expenses in the periods in which they are incurred.
Impairment for financial
assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective
evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows
of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized.
Objective evidence that a financial asset or group of financial assets are impaired includes:
|
(a) |
significant financial difficulty of the issuer or obligor |
|
(b) |
a breach of contract, such as a default or delinquency in interest or principal payments |
|
(c) |
the lender, for economic or legal reasons relating to the borrowers financial difficulty, granting to the borrower a concession that the lender would not otherwise consider |
|
(d) |
it becoming probable that the borrower will enter bankruptcy or other financial reorganization |
|
(e) |
the disappearance of an active market for that financial asset because of financial difficulties |
21
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
(f) |
observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be
identified with the individual financial assets in the group. |
In addition, for an investment in an equity security, a significant or
prolonged decline in its fair value below its cost is objective evidence of impairment.
If there is objective evidence that financial assets are
impaired, impairment losses are measured and recognized.
(a) |
Financial assets measured at amortized cost |
An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the assets original effective interest rate. If it is not practicable to obtain the
instruments estimated future cash flows, impairment losses would be measured by using prices from any observable current market transactions. The Company can recognize impairment losses directly or establish a provision to cover impairment
losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss shall be reversed either
directly or by adjusting an allowance account.
(b) |
Financial assets carried at cost |
If there is objective evidence that an impairment loss has
occurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the
amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such
impairment losses are not reversed.
22
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Available-for-sale financial assets |
When a decline in the fair value of an available-for-sale
financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment even though the financial asset has not been derecognized. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale are not reversed through
profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss shall be reversed, with the amount of the reversal recognized in profit or loss.
Impairment for non-financial assets
The carrying amounts of the Companys non-financial assets, other than assets arising from employee benefits, inventories, deferred tax assets and
non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. Intangible assets
that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.
Management estimates the recoverable amount of an individual asset. If it is impossible to measure the individual recoverable amount of an asset, then
management estimates the recoverable amount of cash-generating unit (CGU). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of
assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the estimated future cash flows expected to be generated by the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or
loss.
23
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Any impairment identified at the CGU level is used to reduce the carrying amount of the other assets in the
CGU on a pro rata basis. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
Derivative financial
instruments
Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes
therein are recognized in profit or loss.
Embedded derivatives are separated from the host contract and accounted
for separately only if the following criteria have been met: (a) the economic characteristics and risks of the host contract and the embedded derivatives are not clearly and closely related to a separate instrument with the same terms as the
embedded derivative that would meet the definition of a derivative, and (b) the hybrid (combined) instrument is not measured at fair value through profit or loss. Changes in the fair value of separable embedded derivatives from the host
contract are recognized immediately in profit or loss.
Changes in the fair value of a derivative that is not designated as a
hedging instrument are recognized immediately in profit or loss.
Non-derivative financial liabilities
The Company classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in
accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Company recognizes financial liabilities in the separate statement of financial position when the Company becomes a party to the
contractual provisions of the financial liability.
(a) |
Financial liabilities at fair value through profit or loss |
Financial liabilities at fair value
through profit or loss include financial liabilities held for trading or designated as upon initial recognition. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes
therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.
(b) |
Other financial liabilities |
Non-derivative financial liabilities other than financial
liabilities at fair value through profit or loss are classified as other financial liabilities.
24
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Financial guarantee liabilities are initially measured at their fair values and, if not
designated as financial liabilities at fair value through profit or loss, they are subsequently measured at the higher of:
|
1) |
the amount of the best estimate of the expenditure required to settle the present obligation at the end of the reporting period; and |
|
2) |
the amount initially recognized less, cumulative amortization recognized on a straight-line basis over the guarantee period |
At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly
attributable to the acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method.
The Company derecognizes a financial liability from the separate statement of financial position when it is extinguished (i.e. when the
obligation specified in the contract is discharged, cancelled or expires).
Employee benefits
(a) |
Short-term employee benefits |
Short-term employee benefits are employee benefits that are due
to be settled within twelve months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of
short-term employee benefits expected to be paid in exchange for that service as profit or loss. If the Company has a legal or constructive obligation which can be reliably measured, the Company recognizes the amount of expected payment for
profit-sharing and bonuses payable as liabilities.
(b) |
Other long-term employee benefits |
Other long-term employee benefits include employee benefits
that are settled beyond 12 months after the end of the period in which the employees render the related service, and are calculated at the present value of the amount of future benefit that employees have earned in return for their service in the
current and prior periods, less the fair value of any related assets.
25
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
The present value is determined by discounting the expected future cash flows using the
interest rate of corporate bonds that have maturity dates approximating the terms of the Companys obligations and that are denominated in the same currency in which the benefits are expected to be paid. Any actuarial gains and losses are
recognized in profit or loss in the period in which they arise.
(c) |
Retirement benefits: Defined contribution plans |
For defined contribution plans, when an
employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as an accrued expense, after deducting any contributions already paid. If the
contributions already paid exceed the contribution due for service before the end of the reporting period, the Company recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments
or a cash refund.
(d) |
Retirement benefits: Defined benefit plans |
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The Companys net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and
prior periods; that benefit is discounted to determine its present value. The fair value of plan assets is deducted. The calculation is performed annually by an independent actuary using the projected unit credit method.
The discount rate is the yield at the reporting date on corporate bonds that have maturity dates approximating the terms of the Companys
obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Company recognizes all actuarial gains and losses arising from actuarial assumption changes and experiential adjustments in other
comprehensive income when incurred.
When the fair value of plan assets exceeds the present value of the defined benefit obligation, the
Company recognizes an asset, to the extent of the total of cumulative unrecognized past service cost and present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan.
26
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Remeasurements of net defined benefit liabilities, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Company determines the net interest expense(income) on the net defined
benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net
defined benefit liability (asset) during the period as a result of contributions and benefit payments, net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain
or loss in curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Provisions
Provisions are recognized when the Company
has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a
provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.
Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized
when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
Provision for restoration related to
contaminated area is recognized when the area meets the Companys policy and legal standards of contamination.
27
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Equity instruments
Common stock is classified as equity and the incremental costs arising directly
attributable to the issuance of common stock less their tax effects are deducted from equity.
If the Company reacquires its own equity
instruments, the amount of those instruments (treasury shares) are presented as a contra equity account. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of its own equity instruments. When
treasury shares are sold or reissued subsequently, the amount received is recognized as an increase to equity, and the resulting surplus or deficit on the transaction is recorded in capital surplus.
Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument. When the Company has an unconditional right to avoid delivering cash or another
financial asset to settle a contractual obligation, instruments are classified as an equity instrument.
Revenue
Revenue from the sale of goods, services provided and the use of assets is measured at the fair value of the consideration received or receivable, net of
returns and allowances, trade discounts and volume rebates, which are not significant for all periods presented.
Revenue from the sale of goods in the ordinary course of activities is measured
at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks
and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and
the amount of revenue can be measured reliably. The appropriate timing for transfer of risks and rewards varies depending on the individual terms and conditions of the sales contract. For international sales, this timing depends on the type of
international commercial terms of the contract.
28
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Rental income from investment property, net of lease incentives granted, is
recognized in profit or loss on a straight-line basis over the term of the lease.
Finance income and finance costs
Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income, gains on the disposal of
available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is
recognized in profit or loss on the date that the Companys right to receive payment is established.
Finance costs comprise interest expense on
borrowings and changes in the fair value of financial assets at fair value through profit or loss. Borrowing costs are recognized in profit or loss using the effective interest rate method.
Income tax
Income tax expense comprises current and
deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to items recognized directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable profit or
loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since
the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit of future periods, and non-taxable or non-deductible items from the accounting profit.
29
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
The measurement of deferred tax liabilities and deferred tax assets reflects the
tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates,
and joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Company recognizes a
deferred tax asset for deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable
profit will be available against which the temporary difference can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the
initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would
follow from the manner in which the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.
30
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Earnings per share
Management calculates basic earnings per share (EPS) data for the Companys ordinary shares, which is presented at the end of the statement of
comprehensive income. Basic EPS is calculated by dividing profit attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.
New standards and interpretations not yet adopted
The
following new standards, interpretations and amendments to existing standards have been published and are mandatory for the Company for annual periods beginning after January 1, 2014, and the Company has not early adopted them.
(a) |
Amendments to K-IFRS No. 1019 Employee Benefits |
Amendments to K-IFRS No. 1019
introduced a practical expedient to accounting for defined benefit plan, when employees or third parties pay contributions if certain criteria are met. According to the amendments, the entity is permitted to recognize those contributions as a
reduction of the service cost in the period in which the related service is rendered, instead of forecast future contributions from employees or third parties and attribute them to periods or service as negative benefits.
Management believes the impact of the amendments on the Companys separate financial statements is not significant.
(b) |
Amendments to K-IFRS No. 1027 Separate Financial Statements |
Amendments to K-IFRS
No. 1027 introduced equity accounting as a third option in the entitys separate financial statements, in addition to the existing cost and fair value options. This amendment is effective for annual periods beginning on or after
January 1, 2016, with early adoption permitted.
Management is in the progress of evaluating the impact of the amendments on the Company.
31
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
4. Risk Management
The Company has exposure to the following risks from its use of financial instruments:
This note presents information about the Companys exposure to each of the above risks, the
Companys objectives, policies and processes for measuring and managing risk, and the Companys management of capital. Further quantitative disclosures are included throughout these separate financial statements.
(a) |
Financial risk management |
1) |
Risk management framework |
The Board of Directors has overall responsibility for the
establishment and oversight of the Companys risk management framework. The Companys risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companys activities.
The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers and investment securities. In addition, credit risk arises from finance guarantees.
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain
level of credit rate evaluated based on financial condition, historical experience, and other factors. The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. The default risk of a nation
or an industry in which a customer operates its business does not have a significant influence on credit risk. The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.
32
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for companies of similar assets in
respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Debt securities are analyzed individually, and an expected
loss shall be directly deducted from debt securities.
Credit risk also arises from transactions with financial institutions, and such
transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have
high international credit ratings. The Companys treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Company has no previous relationship. Furthermore, the Company limits its exposure
to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
3) |
Liquidity risk management |
Liquidity risk is the risk that the Company will encounter
difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Companys strategy
investments. Management believes that the Company is capable of raising funds by borrowing or financing if the Company is not able to generate cash flow requirements from its operations. The Company has committed borrowing facilities with various
banks.
33
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
4) |
Market risk management |
Market risk means that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.
The Company is exposed to currency risk on sales, purchases and borrowings that
are denominated in a currency other than the functional currency of the Company, Korean Won.
The Companys policy in respect of
foreign currency risks is a natural hedge whereby foreign currency income is offset with foreign currency expenditures. The remaining net exposures after the natural hedge have been hedged using derivative contracts such as forward exchange
contracts. In addition, the Companys derivative transactions are limited to hedging actual foreign currency transactions and speculative hedging is not permitted. Based on this policy, the Company has foreign currency borrowings from banks and
hedges foreign currency risks of the foreign currency borrowings by using foreign currency swaps.
The Company mostly borrows at fixed interest rates. The Companys
management monitors interest rate risks regularly.
Equity price risk arises from listed equity securities among
available-for-sale equity securities. Management of the Company measures regularly the fair value of listed equity securities and the risk of variance in future cash flow caused by market price fluctuations. Significant investments are managed
separately and all buy and sell decisions are approved by management of the Company.
34
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Management of capital risk |
The fundamental goal of capital management is the maximization of
shareholders value by means of the stable dividend policy and the retirement of treasury shares. The capital structure of the Company consists of equity and net debt, deducting cash and cash equivalents and current financial instruments from
borrowings. The Company applied the same financial risk management strategy that was applied in the previous period.
Net
borrowing-to-equity ratio as of December 31, 2014 and 2013 is as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Total borrowings |
|
₩ |
6,537,217 |
|
|
|
8,663,071 |
|
Less: Cash and cash equivalents |
|
|
1,742,767 |
|
|
|
1,394,315 |
|
|
|
|
|
|
|
|
|
|
Net borrowings |
|
|
4,794,450 |
|
|
|
7,268,756 |
|
Total equity |
|
₩ |
42,475,431 |
|
|
|
42,311,462 |
|
Net borrowings-to-equity ratio |
|
|
11.29 |
% |
|
|
17.18 |
% |
35
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
5. Cash and Cash Equivalents
Cash and cash equivalents as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Demand deposits and checking accounts |
|
₩ |
867 |
|
|
|
302,434 |
|
Time deposits |
|
|
545,000 |
|
|
|
549,381 |
|
Other financial cash equivalents |
|
|
1,196,900 |
|
|
|
542,500 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,742,767 |
|
|
|
1,394,315 |
|
|
|
|
|
|
|
|
|
|
6. Trade Accounts and Notes Receivable
Trade accounts and notes receivable as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
3,166,238 |
|
|
|
3,403,316 |
|
Less: Allow ance for doubtful accounts |
|
|
(8,972 |
) |
|
|
(9,872 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,157,266 |
|
|
|
3,393,444 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
₩ |
32,247 |
|
|
|
7,806 |
|
Less: Present value discount |
|
|
(7,396 |
) |
|
|
(3,114 |
) |
Less: Allow ance for doubtful accounts |
|
|
(1,010 |
) |
|
|
(228 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
23,841 |
|
|
|
4,464 |
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable sold to financial institutions, for which the derecognition conditions were not met,
amounted to ₩203,138 million as of December 31, 2013, and were included in short-term borrowings.
36
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
7. Other Receivables
Other receivables as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Short-term loans |
|
₩ |
4,748 |
|
|
|
|
|
Other accounts receivable |
|
|
564,765 |
|
|
|
281,667 |
|
Others |
|
|
3,950 |
|
|
|
10,065 |
|
Less: Allowance for doubtful accounts |
|
|
(10,533 |
) |
|
|
(10,571 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
562,930 |
|
|
|
281,161 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term loans |
|
₩ |
21,229 |
|
|
|
54,945 |
|
Long-term other accounts receivable |
|
|
2,334 |
|
|
|
2,723 |
|
Others |
|
|
2,797 |
|
|
|
2,523 |
|
Less: Allowance for doubtful accounts |
|
|
|
|
|
|
(14,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
26,360 |
|
|
|
45,738 |
|
|
|
|
|
|
|
|
|
|
8. Other Financial Assets
(a) Other financial assets as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Short term derivatives assets held for trading |
|
₩ |
708 |
|
|
|
|
|
Short-term financial instruments(* 1) |
|
|
609,584 |
|
|
|
2,317,867 |
|
Cash deposits(* 2,3) |
|
|
83,437 |
|
|
|
949 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
693,729 |
|
|
|
2,318,816 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term derivatives assets held for trading |
|
₩ |
9,525 |
|
|
|
7,788 |
|
Available-for-sale securities(equity instruments) |
|
|
1,767,621 |
|
|
|
3,333,915 |
|
Available-for-sale securities(others) |
|
|
17,408 |
|
|
|
20,855 |
|
Cash deposits(* 4) |
|
|
36 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,794,590 |
|
|
|
3,362,594 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Short-term financial instruments amounting to ₩5,200 million and ₩4,700 million are provided as collateral in relation to long term borrowings from National Forestry Cooperatives Federation as of
December 31, 2014 and 2013, respectively. |
(*2) |
Deposits amounting to ₩5,465 million and ₩949 million as of December 31, 2014 and 2013, respectively, are restricted in relation to government assigned project. |
(*3) |
As of December 31, 2014, ₩77,972 million of deposits have been provided as collateral for disposal of investments in subsidiaries. |
(*4) |
The Company is required to provide deposits to maintain checking accounts and accordingly the withdrawal of these deposits is restricted. |
37
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) Available-for-sale equity securities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Number of shares |
|
|
Ownership (%) |
|
|
Acquisition cost |
|
|
Fair value |
|
|
Net changes in fair value of available-for- sale investments(*7) |
|
|
Accumulated impairment loss |
|
|
Book value |
|
|
Book value |
|
Marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nippon Steel & Sumitomo Metal Corporation |
|
|
238,352,000 |
|
|
|
2.51 |
|
|
₩ |
719,622 |
|
|
|
659,926 |
|
|
|
(59,696 |
) |
|
|
|
|
|
|
659,926 |
|
|
|
842,909 |
|
SK Telecom Co., Ltd.(* 1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
419,933 |
|
KB Financial group Inc. |
|
|
11,590,550 |
|
|
|
3.00 |
|
|
|
536,516 |
|
|
|
418,998 |
|
|
|
22,602 |
|
|
|
(140,120 |
) |
|
|
418,998 |
|
|
|
489,701 |
|
Hyundai Heavy Industries Co., Ltd.(* 2) |
|
|
1,477,000 |
|
|
|
1.94 |
|
|
|
343,506 |
|
|
|
169,855 |
|
|
|
|
|
|
|
(173,651 |
) |
|
|
169,855 |
|
|
|
379,589 |
|
Shinhan Financial group Inc. |
|
|
4,369,881 |
|
|
|
0.92 |
|
|
|
228,778 |
|
|
|
194,241 |
|
|
|
71,605 |
|
|
|
(106,142 |
) |
|
|
194,241 |
|
|
|
206,695 |
|
Hana Financial group Inc. |
|
|
2,430,498 |
|
|
|
0.84 |
|
|
|
15,633 |
|
|
|
77,776 |
|
|
|
62,143 |
|
|
|
|
|
|
|
77,776 |
|
|
|
106,699 |
|
Others (13 companies)
(* 2,3) |
|
|
|
|
|
|
|
|
|
|
155,940 |
|
|
|
99,594 |
|
|
|
29,731 |
|
|
|
(86,077 |
) |
|
|
99,594 |
|
|
|
108,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,999,995 |
|
|
|
1,620,390 |
|
|
|
126,385 |
|
|
|
(505,990 |
) |
|
|
1,620,390 |
|
|
|
2,554,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Siam United Steel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,643 |
|
Nacional Minerios S.A.(* 4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
517,193 |
|
Dongbu Metal Co., Ltd.
(* 2,5) |
|
|
3,000,000 |
|
|
|
10.00 |
|
|
|
98,242 |
|
|
|
17,295 |
|
|
|
|
|
|
|
(80,947 |
) |
|
|
17,295 |
|
|
|
85,371 |
|
Others (41 companies)(* 6) |
|
|
|
|
|
|
|
|
|
|
141,049 |
|
|
|
129,936 |
|
|
|
(2,318 |
) |
|
|
(8,795 |
) |
|
|
129,936 |
|
|
|
119,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
239,291 |
|
|
|
147,231 |
|
|
|
(2,318 |
) |
|
|
(89,742 |
) |
|
|
147,231 |
|
|
|
779,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,239,286 |
|
|
|
1,767,621 |
|
|
|
124,067 |
|
|
|
(595,732 |
) |
|
|
1,767,621 |
|
|
|
3,333,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
During the year ended December 31, 2014, exchange bonds on American Depository Receipts (ADRs) of SK Telecom Co., Ltd. were exercised. Accordingly, the Company recognized a gain on disposal of
available-for-sale securities amounting to ₩198,671 million. |
(*2) |
During the year ended December 31, 2014, the Company recognized ₩173,651 million, ₩729 million, ₩60 million and ₩80,947 million of impairment loss on securities of Hyundai Heavy
Industries Co., Ltd., Dgenx Co., Ltd., TONGYANG NETWORKS Co., Ltd., and Dongbu Metal Co., Ltd., respectively, due to the significant decline in the fair value of the shares. |
(*3) |
During the year ended December 31, 2014, the Company recognized an additional impairment loss of ₩1,105 million, ₩1,005 million, ₩1,251 million and ₩4,720 million on securities of UNION
STEEL CO., LTD., Seoul Semiconductor Co., Ltd., PT.Krakatau Steel and Steel Flower Co., Ltd., respectively, due to the additional decline in the fair value of the shares. |
(*4) |
The Company recognized ₩88,572 million of impairment loss on investment in Nacional Minerios S.A. for the year ended December 31, 2014, due to the prolonged decline in the fair value of the shares. As of
December 31, 2014, the Company classified the securities as assets held for sale based on the merger agreement of Nacional Minerios S.A. with other shareholders as the Company believes the merger is a sales transaction with economic
substance(note 10). |
(*5) |
Fair value is based on an analysis performed by an external professional evaluation agency. |
(*6) |
Non-marketable equity securities whose fair values cannot be reliably measured are recorded at cost. |
(*7) |
Represents the amount of cumulative amounts that is recorded in accumulated other comprehensive income as of December 31, 2014 |
38
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
9. Inventories
(a) Inventories as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Finished goods |
|
₩ |
901,524 |
|
|
|
755,286 |
|
Semi-finished goods |
|
|
1,207,143 |
|
|
|
1,259,390 |
|
By-products |
|
|
21,439 |
|
|
|
13,793 |
|
Raw materials |
|
|
822,273 |
|
|
|
983,902 |
|
Fuel and materials |
|
|
510,508 |
|
|
|
520,236 |
|
Materials-in-transit |
|
|
944,966 |
|
|
|
1,009,996 |
|
Others |
|
|
582 |
|
|
|
586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,408,435 |
|
|
|
4,543,189 |
|
Less: Allowance for inventories valuation |
|
|
(24,867 |
) |
|
|
(4,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
4,383,568 |
|
|
|
4,538,657 |
|
|
|
|
|
|
|
|
|
|
(b) The changes of allowance for inventories valuation for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
4,532 |
|
|
|
370 |
|
Loss on valuation of inventories |
|
|
24,867 |
|
|
|
4,532 |
|
Write-off |
|
|
(4,532 |
) |
|
|
(370 |
) |
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
24,867 |
|
|
|
4,532 |
|
|
|
|
|
|
|
|
|
|
39
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
10. Assets Held for Sale
Assets held for sale as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Available-for-sale securities(* 1) |
|
₩ |
580,062 |
|
|
|
|
|
Investments in subsidiaries(* 2,3) |
|
|
468,443 |
|
|
|
|
|
Investment in associates(* 4) |
|
|
|
|
|
|
1,304 |
|
Property, plant and equipment (land) |
|
|
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,051,177 |
|
|
|
1,304 |
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company has determined to exchange the shares in Nacional Minerios S.A. with the shares of newly established entity based on the merger agreement. The transaction was approved by the Board of Directors on
December 12, 2014 and the Company classified its investment in shares as assets held for sale. |
(*2) |
The Company determined to dispose of 52.2% of shares of POSCO Specialty Co., Ltd to SeAH Besteel Corp. by entering into a disposal agreement. The agreement was approved by the Board of Directors on December 12,
2014, and the Company classified the investment in subsidiaries of ₩454,943 million as assets held for sale. |
(*3) |
The Company determined to dispose of the shares of POSFINE Co., Ltd, an associate of the Company, to Hahn & Company PRIVATE EQUITY FUND No. 1, and classified the accompanying investment in the subsidiary of
₩13,500 million as assets held for sale. |
(*4) |
The Company determined to dispose of the shares of POSVINA Co., Ltd., a subsidiary of the Company during the year ended December 31, 2013. Disposal of the asset held-for-sale was completed during the year ended
December 31, 2014, and the Company recognized an impairment loss for asset held for sale of ₩14 million. |
40
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
11. Other Assets
Other current assets and other long-term assets as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Advance payments |
|
₩ |
9,828 |
|
|
|
4,871 |
|
Prepaid expenses |
|
|
21,864 |
|
|
|
20,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
31,692 |
|
|
|
25,782 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term prepaid expenses |
|
|
6,344 |
|
|
|
6,980 |
|
Others |
|
|
126,909 |
|
|
|
3,935 |
|
Less: Allowance for doubtful accounts |
|
|
|
|
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
133,253 |
|
|
|
10,902 |
|
|
|
|
|
|
|
|
|
|
12. Investments in Subsidiaries, Associates and Joint ventures
(a) Investments in subsidiaries, associates and joint ventures as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Subsidiaries |
|
₩ |
13,257,282 |
|
|
|
12,316,564 |
|
Associates |
|
|
647,973 |
|
|
|
825,197 |
|
Joint ventures |
|
|
2,273,636 |
|
|
|
1,951,075 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
16,178,891 |
|
|
|
15,092,836 |
|
|
|
|
|
|
|
|
|
|
There are no restrictions on the ability of subsidiaries, associates and joint ventures to transfer funds to the controlling
company, such as in the form of cash dividends, repayment of loans or payment of advances.
41
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Details of subsidiaries and carrying values as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership |
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daewoo International Corporation |
|
Korea |
|
Trading |
|
|
68,681,566 |
|
|
|
60.31 |
|
|
₩ |
3,371,481 |
|
|
|
2,343,917 |
|
|
|
3,371,481 |
|
|
|
3,371,481 |
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
Korea |
|
Engineering and construction |
|
|
32,876,418 |
|
|
|
89.53 |
|
|
|
1,510,716 |
|
|
|
2,972,450 |
|
|
|
1,510,716 |
|
|
|
1,510,716 |
|
POSCO Green Gas Technology |
|
Korea |
|
Gas production and sales |
|
|
13,652 |
|
|
|
100.00 |
|
|
|
682,600 |
|
|
|
679,311 |
|
|
|
682,600 |
|
|
|
|
|
POSCO ENERGY CO., LTD. |
|
Korea |
|
Generation of electricity |
|
|
40,234,508 |
|
|
|
89.02 |
|
|
|
658,176 |
|
|
|
1,584,491 |
|
|
|
658,176 |
|
|
|
658,176 |
|
POSCO Processing & Service |
|
Korea |
|
Steel sales and service |
|
|
20,453,759 |
|
|
|
96.00 |
|
|
|
624,678 |
|
|
|
871,481 |
|
|
|
624,678 |
|
|
|
421,927 |
|
POSCO PLANTEC Co., Ltd.(* 1,2) |
|
Korea |
|
Other structural metal product manufacturing |
|
|
110,027,475 |
|
|
|
60.84 |
|
|
|
520,588 |
|
|
|
215,859 |
|
|
|
341,293 |
|
|
|
|
|
POSCO Specialty Steel Co., Ltd.(* 3) |
|
Korea |
|
Manufacture and sale of specialty steel |
|
|
26,000,000 |
|
|
|
72.09 |
|
|
|
173,899 |
|
|
|
948,735 |
|
|
|
173,899 |
|
|
|
628,842 |
|
POSCO COATED & COLOR |
|
Korea |
|
Coated steel manufacturing |
|
|
3,412,000 |
|
|
|
56.87 |
|
|
|
108,421 |
|
|
|
166,468 |
|
|
|
108,421 |
|
|
|
108,421 |
|
POSCO Venture Capital Co., Ltd. |
|
Korea |
|
Investment in venture companies |
|
|
19,700,000 |
|
|
|
95.00 |
|
|
|
103,780 |
|
|
|
111,011 |
|
|
|
103,780 |
|
|
|
103,780 |
|
POSCO CHEMTECH |
|
Korea |
|
Manufacturing and Sales |
|
|
3,544,200 |
|
|
|
60.00 |
|
|
|
100,535 |
|
|
|
507,448 |
|
|
|
100,535 |
|
|
|
100,535 |
|
POSMATE |
|
Korea |
|
Computer hardware and software distribution |
|
|
902,946 |
|
|
|
57.30 |
|
|
|
72,804 |
|
|
|
178,969 |
|
|
|
72,804 |
|
|
|
63,222 |
|
POSCO ICT |
|
Korea |
|
Business facility maintenance |
|
|
99,403,282 |
|
|
|
65.38 |
|
|
|
70,990 |
|
|
|
422,288 |
|
|
|
70,990 |
|
|
|
70,990 |
|
POSCO M-TECH(* 4,5) |
|
Korea |
|
Steel manufacturing and Sales |
|
|
20,342,460 |
|
|
|
48.85 |
|
|
|
107,278 |
|
|
|
49,286 |
|
|
|
66,067 |
|
|
|
107,278 |
|
POSCO Family Strategy Fund |
|
Korea |
|
Investment in venture companies |
|
|
400 |
|
|
|
60.79 |
|
|
|
40,000 |
|
|
|
53,144 |
|
|
|
40,000 |
|
|
|
40,000 |
|
Busan E&E Co,. Ltd.(* 6) |
|
Korea |
|
Municipal solid waste fuel and power generation |
|
|
6,029,660 |
|
|
|
70.00 |
|
|
|
30,148 |
|
|
|
40,456 |
|
|
|
30,148 |
|
|
|
30,148 |
|
Others (10 companies)(* 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
185,697 |
|
|
|
301,095 |
|
|
|
134,196 |
|
|
|
404,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,361,791 |
|
|
|
11,446,409 |
|
|
|
8,089,784 |
|
|
|
7,619,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PT. KRAKATAU POSCO |
|
Indonesia |
|
Steel manufacturing and sales |
|
|
739,900 |
|
|
|
70.00 |
|
|
₩ |
813,431 |
|
|
|
823,714 |
|
|
|
855,110 |
|
|
|
808,492 |
|
POSCO WA PTY LTD |
|
Australia |
|
Mine development |
|
|
589,035,511 |
|
|
|
100.00 |
|
|
|
611,248 |
|
|
|
450,299 |
|
|
|
611,248 |
|
|
|
446,093 |
|
POSCO Maharashtra Steel Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
214,649,818 |
|
|
|
100.00 |
|
|
|
456,065 |
|
|
|
197,562 |
|
|
|
465,788 |
|
|
|
355,987 |
|
POSCO AUSTRALIA PTY LTD |
|
Australia |
|
Steel Sales and mine development |
|
|
761,775 |
|
|
|
100.00 |
|
|
|
330,623 |
|
|
|
660,815 |
|
|
|
330,623 |
|
|
|
330,623 |
|
POSCO Thainox Public Company Limited
(* 7) |
|
Thailand |
|
Stainless steel manufacturing |
|
|
6,620,532,219 |
|
|
|
84.93 |
|
|
|
500,740 |
|
|
|
298,946 |
|
|
|
329,756 |
|
|
|
340,249 |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
|
|
|
|
58.60 |
|
|
|
283,845 |
|
|
|
516,449 |
|
|
|
284,392 |
|
|
|
284,753 |
|
POSCO-China Holding Corp. |
|
China |
|
Investment management |
|
|
|
|
|
|
100.00 |
|
|
|
240,430 |
|
|
|
257,961 |
|
|
|
240,430 |
|
|
|
240,430 |
|
POSCO-India Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
764,999,999 |
|
|
|
99.99 |
|
|
|
184,815 |
|
|
|
116,897 |
|
|
|
184,815 |
|
|
|
184,815 |
|
POSCO MEXICO S.A. DE C.V. |
|
Mexico |
|
Plate steel manufacturing |
|
|
2,686,705,272 |
|
|
|
84.84 |
|
|
|
180,069 |
|
|
|
208,429 |
|
|
|
182,110 |
|
|
|
182,080 |
|
POSCO America Corporation |
|
USA |
|
Trading-Steel |
|
|
391,042 |
|
|
|
99.45 |
|
|
|
167,285 |
|
|
|
63,571 |
|
|
|
167,285 |
|
|
|
140,381 |
|
POSCO-VIETNAM Co., Ltd. |
|
Vietnam |
|
Steel manufacturing |
|
|
|
|
|
|
85.00 |
|
|
|
154,691 |
|
|
|
26,775 |
|
|
|
156,778 |
|
|
|
157,295 |
|
POSCO VST CO., LTD. |
|
Vietnam |
|
Stainless steel manufacturing |
|
|
|
|
|
|
95.65 |
|
|
|
144,573 |
|
|
|
24,477 |
|
|
|
145,049 |
|
|
|
145,288 |
|
POSCO(Guangdong) Automotive Steel Co., Ltd. |
|
China |
|
Plate steel manufacturing |
|
|
117,187,089 |
|
|
|
83.64 |
|
|
|
130,751 |
|
|
|
126,283 |
|
|
|
131,051 |
|
|
|
131,291 |
|
POSCO ASSAN TST STEEL INDUSTRY |
|
Turkey |
|
Steel manufacturing and sales |
|
|
144,579,160 |
|
|
|
60.00 |
|
|
|
92,800 |
|
|
|
28,925 |
|
|
|
95,213 |
|
|
|
95,710 |
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
Thailand |
|
Plate steel manufacturing |
|
|
27,000,000 |
|
|
|
100.00 |
|
|
|
90,012 |
|
|
|
90,450 |
|
|
|
90,012 |
|
|
|
6,020 |
|
POSCO Investment Co., Ltd. |
|
Hong Kong |
|
Finance |
|
|
4,999,999 |
|
|
|
99.99 |
|
|
|
85,521 |
|
|
|
109,805 |
|
|
|
86,775 |
|
|
|
87,211 |
|
POSCO JAPAN Co., Ltd. |
|
Japan |
|
Trading-Steel |
|
|
90,438 |
|
|
|
100.00 |
|
|
|
68,436 |
|
|
|
110,322 |
|
|
|
68,436 |
|
|
|
68,436 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
|
|
|
|
70.00 |
|
|
|
65,982 |
|
|
|
84,984 |
|
|
|
65,982 |
|
|
|
65,982 |
|
POSCO(Suzhou) Automotive Processing Center Co., Ltd. |
|
China |
|
Steel manufacturing and sales |
|
|
|
|
|
|
90.00 |
|
|
|
62,494 |
|
|
|
124,852 |
|
|
|
62,494 |
|
|
|
62,494 |
|
POSCO Electrical Steel India Private Limited |
|
India |
|
Electrical steel manufacturing and sales |
|
|
24,120,664 |
|
|
|
100.00 |
|
|
|
57,119 |
|
|
|
32,234 |
|
|
|
58,441 |
|
|
|
58,662 |
|
POSCO AFRICA (PROPRIETARY) LIMITED |
|
South Africa |
|
Trading |
|
|
1,390 |
|
|
|
100.00 |
|
|
|
50,297 |
|
|
|
40,755 |
|
|
|
50,297 |
|
|
|
50,297 |
|
POSCO-Malaysia SDN. BHD. |
|
Malaysia |
|
Steel manufacturing and sales |
|
|
144,772,000 |
|
|
|
81.79 |
|
|
|
45,479 |
|
|
|
(10,693 |
) |
|
|
45,479 |
|
|
|
31,027 |
|
POSCO China Dalian Plate Processing Center Co., Ltd. |
|
China |
|
Heavy plate processing and marketing |
|
|
|
|
|
|
80.00 |
|
|
|
32,992 |
|
|
|
13,321 |
|
|
|
32,992 |
|
|
|
32,992 |
|
POSCO Asia Co., Ltd. |
|
Hong Kong |
|
Steel transit trade |
|
|
9,360,000 |
|
|
|
100.00 |
|
|
|
32,189 |
|
|
|
46,664 |
|
|
|
32,189 |
|
|
|
32,189 |
|
POSCO(Guangdong) Steel Co., Ltd. |
|
China |
|
Plate steel sheet manufacturing |
|
|
|
|
|
|
87.04 |
|
|
|
31,299 |
|
|
|
42,740 |
|
|
|
31,299 |
|
|
|
31,299 |
|
POSCO-Uruguay S.A |
|
Uruguay |
|
Wood manufacturing and sales |
|
|
558,592,496 |
|
|
|
98.11 |
|
|
|
30,243 |
|
|
|
21,240 |
|
|
|
30,243 |
|
|
|
29,341 |
|
Others (31 companies)(* 8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
333,615 |
|
|
|
507,590 |
|
|
|
333,211 |
|
|
|
297,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,277,044 |
|
|
|
5,015,367 |
|
|
|
5,167,498 |
|
|
|
4,696,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
13,638,835 |
|
|
|
16,461,776 |
|
|
|
13,257,282 |
|
|
|
12,316,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(*1) |
As of December 31, 2014, there is objective evidence of impairment due to the prolonged decline in the fair value of the investment below cost. Recoverable amount was determined based on fair value less cost to
sell, which was calculated by adding a 8.8% control premium and disposal cost to the stock price as of December 31, 2014. As a result, the Company recognized an impairment loss of ₩103,993 million as the carrying value was higher than
its recoverable amount as of December 31, 2014. |
(*2) |
During the year ended December 31, 2014, it is classified as subsidiary from associate due to increase in percentage of ownership through capital increase. |
(*3) |
The Company determined to dispose of 52.2% of POSCO Specialty Steel Co., Ltd.s share and classified the investment in a subsidiary of ₩454,943 million as assets held for sale. |
(*4) |
It was classified as an investment in a subsidiary as the Company has control over of more than half of the voting rights by virtue of an agreement with Postech, which has 4.72% of ownership in POSCO M-TECH Co., Ltd.
|
(*5) |
As of December 31, 2014, there is objective evidence of impairment due to the prolonged decline in the fair value of the investment below cost. Recoverable amount was determined based on fair value less cost to
sell, which was calculated by adding a 13.7% control premium and disposal cost to the stock price as of December 31, 2014. As a result, the Company recognized an impairment loss of ₩41,211 million as the carrying value was higher than
its recoverable amount as of December 31, 2014. |
(*6) |
As of December 31, 2014, the investments in subsidiaries amounting to ₩30,148 million were provided as collateral in relation to the loan agreements of Busan E&E Co,. Ltd. |
(*7) |
As of December 31, 2014, there is objective evidence of impairment due to the prolonged decline in the fair value of the investment below cost. Recoverable amount was determined based on fair value less cost to
sell, which was calculated by adding a 13.7% control premium and disposal cost to the stock price as of December 31, 2014. As a result, the Company recognized an impairment loss of ₩10,493 million as the carrying value was higher than
its recoverable amount as of December 31, 2014. |
(*8) |
The Company recognized an impairment loss of ₩2,049 million, ₩49,452 million and ₩404 million on POSCO LED Co., Ltd., POSHIMETAL Co., Ltd. and Motta Resources Indonesia, respectively, as the
carrying value was higher than its recoverable amount as of December 31, 2014. |
43
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Details of associates and carrying values as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO PLANTEC Co., Ltd.(* 1) |
|
Korea |
|
|
|
|
|
|
|
|
|
|
|
₩ |
|
|
|
|
|
|
|
|
|
|
|
|
185,786 |
|
EQP POSCO Global No1 Natural Resources PEF |
|
Korea |
|
Mine investment |
|
|
169,106,080,000 |
|
|
|
26.97 |
|
|
|
169,106 |
|
|
|
620,916 |
|
|
|
169,106 |
|
|
|
169,106 |
|
SNNC |
|
Korea |
|
Material manufacturing |
|
|
18,130,000 |
|
|
|
49.00 |
|
|
|
100,655 |
|
|
|
298,351 |
|
|
|
100,655 |
|
|
|
100,655 |
|
Others (4 companies)(*2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,867 |
|
|
|
110,468 |
|
|
|
21,867 |
|
|
|
18,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
291,628 |
|
|
|
1,029,735 |
|
|
|
291,628 |
|
|
|
474,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel Mining Company SAS |
|
New Caledonia |
|
Raw material manufacturing and Sales |
|
|
3,234,698 |
|
|
|
49.00 |
|
|
|
189,197 |
|
|
|
269,371 |
|
|
|
189,197 |
|
|
|
189,197 |
|
7623704 Canada Inc. |
|
Canada |
|
Mine investment |
|
|
114,452,000 |
|
|
|
10.40 |
|
|
|
124,341 |
|
|
|
1,138,122 |
|
|
|
124,341 |
|
|
|
124,341 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
China |
|
Tinplate manufacturing and sales |
|
|
|
|
|
|
24.00 |
|
|
|
11,003 |
|
|
|
67,539 |
|
|
|
11,003 |
|
|
|
11,003 |
|
Others (9 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,700 |
|
|
|
44,092 |
|
|
|
31,804 |
|
|
|
26,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
356,241 |
|
|
|
1,519,124 |
|
|
|
356,345 |
|
|
|
350,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
647,869 |
|
|
|
2,548,859 |
|
|
|
647,973 |
|
|
|
825,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
During the year ended December 31, 2014, it was reclassified from associate to subsidiary due to increase in percentage of ownership through capital increase. |
(*2) |
The Company has recognized an impairment loss of ₩2,193 million on Hyundai Investment Network No.1 Private Equity Fund due to the prolonged decline in the market value of the shares. |
(d) |
Details of joint ventures and carrying values as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book value |
|
Roy Hill Holdings Pty Ltd(* 1) |
|
Australia |
|
Mine development |
|
|
10,494,377 |
|
|
|
10.00 |
|
|
₩ |
1,225,464 |
|
|
|
3,377,978 |
|
|
|
1,225,464 |
|
|
|
983,569 |
|
CSP - Compania Siderurgica do Pecem |
|
Brazil |
|
Steel manufacturing |
|
|
827,771,230 |
|
|
|
20.00 |
|
|
|
469,891 |
|
|
|
1,593,004 |
|
|
|
469,891 |
|
|
|
393,925 |
|
POSCO-NPS Niobium LLC |
|
USA |
|
Mine development |
|
|
325,050,000 |
|
|
|
50.00 |
|
|
|
364,609 |
|
|
|
715,546 |
|
|
|
364,609 |
|
|
|
364,609 |
|
KOBRASCO |
|
Brazil |
|
Facilities lease |
|
|
2,010,719,185 |
|
|
|
50.00 |
|
|
|
98,962 |
|
|
|
199,573 |
|
|
|
98,962 |
|
|
|
98,962 |
|
Others (5 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114,710 |
|
|
|
463,668 |
|
|
|
114,710 |
|
|
|
110,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
2,273,636 |
|
|
|
6,349,769 |
|
|
|
2,273,636 |
|
|
|
1,951,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2014, the investments in joint ventures amounting to ₩1,225,464 million were provided as collateral in relation to loan from project financing of Roy Hill Holdings Pty Ltd.
|
44
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
13. Investment Property, Net
(a) |
Investment property as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Book value |
|
Land |
|
₩ |
36,020 |
|
|
|
|
|
|
|
36,020 |
|
|
|
36,020 |
|
|
|
|
|
|
|
36,020 |
|
Buildings |
|
|
95,568 |
|
|
|
(45,456 |
) |
|
|
50,112 |
|
|
|
95,564 |
|
|
|
(42,882 |
) |
|
|
52,682 |
|
Structures |
|
|
7,009 |
|
|
|
(3,004 |
) |
|
|
4,005 |
|
|
|
7,009 |
|
|
|
(2,832 |
) |
|
|
4,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
138,597 |
|
|
|
(48,460 |
) |
|
|
90,137 |
|
|
|
138,593 |
|
|
|
(45,714 |
) |
|
|
92,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of investment property as of December 31, 2014 is ₩287,210 million.
(b) |
Changes in the carrying value of investment property for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation (*1) |
|
|
Transfer (*2) |
|
|
Ending |
|
Land |
|
₩ |
36,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,020 |
|
Buildings |
|
|
52,682 |
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,404 |
) |
|
|
(189 |
) |
|
|
50,112 |
|
Structures |
|
|
4,177 |
|
|
|
|
|
|
|
|
|
|
|
(160 |
) |
|
|
(12 |
) |
|
|
4,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
92,879 |
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,564 |
) |
|
|
(201 |
) |
|
|
90,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
(*2) |
Mainly includes assets transferred to property, plant and equipment in relation to change in rental ratio and the purpose of use. |
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Depreciation (*1) |
|
|
Transfer (*2) |
|
|
Ending |
|
Land |
|
₩ |
41,811 |
|
|
|
|
|
|
|
(5,791 |
) |
|
|
36,020 |
|
Buildings |
|
|
63,697 |
|
|
|
(2,793 |
) |
|
|
(8,222 |
) |
|
|
52,682 |
|
Structures |
|
|
5,018 |
|
|
|
(186 |
) |
|
|
(655 |
) |
|
|
4,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
110,526 |
|
|
|
(2,979 |
) |
|
|
(14,668 |
) |
|
|
92,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
(*2) |
Mainly includes assets transferred to property, plant and equipment in relation to change in rental ratio and the purpose of use. |
45
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
14. Property, Plant and Equipment, Net
(a) |
Property, plant and equipment as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition |
|
|
Accumulate |
|
|
Accumulated |
|
|
Government |
|
|
Book |
|
|
Acquisition |
|
|
Accumulate |
|
|
Accumulated |
|
|
Government |
|
|
Book |
|
Land |
|
₩ |
1,420,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,420,994 |
|
|
|
1,397,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,397,271 |
|
Buildings |
|
|
5,801,650 |
|
|
|
(3,036,496 |
) |
|
|
(4,312 |
) |
|
|
|
|
|
|
2,760,842 |
|
|
|
5,433,167 |
|
|
|
(2,794,762 |
) |
|
|
(631 |
) |
|
|
|
|
|
|
2,637,774 |
|
Structures |
|
|
4,617,918 |
|
|
|
(1,996,823 |
) |
|
|
(8,542 |
) |
|
|
|
|
|
|
2,612,553 |
|
|
|
4,277,603 |
|
|
|
(1,808,087 |
) |
|
|
(470 |
) |
|
|
|
|
|
|
2,469,046 |
|
Machinery and equipment |
|
|
35,056,496 |
|
|
|
(20,530,303 |
) |
|
|
(22,927 |
) |
|
|
|
|
|
|
14,503,266 |
|
|
|
32,428,259 |
|
|
|
(19,221,165 |
) |
|
|
(4,384 |
) |
|
|
|
|
|
|
13,202,710 |
|
Vehicles |
|
|
197,467 |
|
|
|
(184,514 |
) |
|
|
|
|
|
|
|
|
|
|
12,953 |
|
|
|
189,666 |
|
|
|
(178,897 |
) |
|
|
|
|
|
|
|
|
|
|
10,769 |
|
Tools |
|
|
187,712 |
|
|
|
(164,388 |
) |
|
|
|
|
|
|
|
|
|
|
23,324 |
|
|
|
188,204 |
|
|
|
(162,524 |
) |
|
|
|
|
|
|
|
|
|
|
25,680 |
|
Furniture and fixtures |
|
|
261,846 |
|
|
|
(223,942 |
) |
|
|
(320 |
) |
|
|
|
|
|
|
37,584 |
|
|
|
254,663 |
|
|
|
(206,987 |
) |
|
|
(282 |
) |
|
|
|
|
|
|
47,394 |
|
Finance lease assets |
|
|
11,466 |
|
|
|
(5,096 |
) |
|
|
|
|
|
|
|
|
|
|
6,370 |
|
|
|
11,466 |
|
|
|
(4,459 |
) |
|
|
|
|
|
|
|
|
|
|
7,007 |
|
Construction-in-progress |
|
|
950,329 |
|
|
|
|
|
|
|
|
|
|
|
(5,000 |
) |
|
|
945,329 |
|
|
|
3,447,952 |
|
|
|
|
|
|
|
|
|
|
|
(5,000 |
) |
|
|
3,442,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
48,505,878 |
|
|
|
(26,141,562 |
) |
|
|
(36,101 |
) |
|
|
(5,000 |
) |
|
|
22,323,215 |
|
|
|
47,628,251 |
|
|
|
(24,376,881 |
) |
|
|
(5,767 |
) |
|
|
(5,000 |
) |
|
|
23,240,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Changes in the carrying value of property, plant and equipment for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment (*1) |
|
|
Others (*2) |
|
|
Ending |
|
Land |
|
₩ |
1,397,271 |
|
|
|
39 |
|
|
|
(392 |
) |
|
|
|
|
|
|
|
|
|
|
24,076 |
|
|
|
1,420,994 |
|
Buildings |
|
|
2,637,774 |
|
|
|
5,941 |
|
|
|
(1,912 |
) |
|
|
(249,792 |
) |
|
|
(3,681 |
) |
|
|
372,512 |
|
|
|
2,760,842 |
|
Structures |
|
|
2,469,046 |
|
|
|
11,239 |
|
|
|
(1,750 |
) |
|
|
(194,088 |
) |
|
|
(8,072 |
) |
|
|
336,178 |
|
|
|
2,612,553 |
|
Machinery and equipment |
|
|
13,202,710 |
|
|
|
125,297 |
|
|
|
(29,430 |
) |
|
|
(1,574,903 |
) |
|
|
(18,543 |
) |
|
|
2,798,135 |
|
|
|
14,503,266 |
|
Vehicles |
|
|
10,769 |
|
|
|
792 |
|
|
|
(8 |
) |
|
|
(7,884 |
) |
|
|
|
|
|
|
9,284 |
|
|
|
12,953 |
|
Tools |
|
|
25,680 |
|
|
|
5,795 |
|
|
|
(54 |
) |
|
|
(15,996 |
) |
|
|
|
|
|
|
7,899 |
|
|
|
23,324 |
|
Furniture and fixtures |
|
|
47,394 |
|
|
|
7,150 |
|
|
|
(5 |
) |
|
|
(21,929 |
) |
|
|
(38 |
) |
|
|
5,012 |
|
|
|
37,584 |
|
Finance lease assets |
|
|
7,007 |
|
|
|
|
|
|
|
|
|
|
|
(637 |
) |
|
|
|
|
|
|
|
|
|
|
6,370 |
|
Construction-in-progress |
|
|
3,442,952 |
|
|
|
1,628,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,125,948 |
) |
|
|
945,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
23,240,603 |
|
|
|
1,784,578 |
|
|
|
(33,551 |
) |
|
|
(2,065,229 |
) |
|
|
(30,334 |
) |
|
|
(572,852 |
) |
|
|
22,323,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company has recognized an impairment loss since the recoverable amounts of FINEX 1 plant and STS 1 steelmaking plant were lower than their book value. |
(*2) |
Represents assets transferred from construction-in-progress to property, plant and equipment, from investment property, to intangible assets, to assets held-for-sale and investment in kind of property, plant and
equipment to subsidiary. |
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Others (* 1) |
|
|
Ending |
|
Land |
|
₩ |
1,367,822 |
|
|
|
|
|
|
|
(627 |
) |
|
|
|
|
|
|
30,076 |
|
|
|
1,397,271 |
|
Buildings |
|
|
2,734,839 |
|
|
|
7,034 |
|
|
|
(8,628 |
) |
|
|
(241,678 |
) |
|
|
146,207 |
|
|
|
2,637,774 |
|
Structures |
|
|
2,113,750 |
|
|
|
16,624 |
|
|
|
(5,519 |
) |
|
|
(181,725 |
) |
|
|
525,916 |
|
|
|
2,469,046 |
|
Machinery and equipment |
|
|
12,888,614 |
|
|
|
113,921 |
|
|
|
(57,800 |
) |
|
|
(1,456,354 |
) |
|
|
1,714,329 |
|
|
|
13,202,710 |
|
Vehicles |
|
|
13,039 |
|
|
|
794 |
|
|
|
(4 |
) |
|
|
(8,682 |
) |
|
|
5,622 |
|
|
|
10,769 |
|
Tools |
|
|
29,693 |
|
|
|
4,006 |
|
|
|
(9 |
) |
|
|
(15,118 |
) |
|
|
7,108 |
|
|
|
25,680 |
|
Furniture and fixtures |
|
|
67,431 |
|
|
|
2,819 |
|
|
|
(875 |
) |
|
|
(24,829 |
) |
|
|
2,848 |
|
|
|
47,394 |
|
Finance lease assets |
|
|
7,644 |
|
|
|
|
|
|
|
|
|
|
|
(637 |
) |
|
|
|
|
|
|
7,007 |
|
Construction-in-progress |
|
|
2,943,903 |
|
|
|
3,009,545 |
|
|
|
|
|
|
|
|
|
|
|
(2,510,496 |
) |
|
|
3,442,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
22,166,735 |
|
|
|
3,154,743 |
|
|
|
(73,462 |
) |
|
|
(1,929,023 |
) |
|
|
(78,390 |
) |
|
|
23,240,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Represents assets transferred from construction-in-progress to property, plant and equipment, investment property and intangible assets. |
46
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Weighted average expenditure |
|
₩ |
1,227,496 |
|
|
|
2,894,479 |
|
Borrowing costs capitalized |
|
|
51,428 |
|
|
|
137,221 |
|
Capitalization rate |
|
|
4.19 |
% |
|
|
4.74 |
% |
15. Intangible Assets, Net
(a) |
Intangible assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Acquisition cost |
|
|
Accumulated amortization |
|
|
Accumulated impairment |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated amortization |
|
|
Accumulated impairment |
|
|
Book value |
|
Intellectual property rights |
|
₩ |
24,829 |
|
|
|
(7,235 |
) |
|
|
|
|
|
|
17,594 |
|
|
|
18,970 |
|
|
|
(5,158 |
) |
|
|
|
|
|
|
13,812 |
|
Membership |
|
|
59,949 |
|
|
|
|
|
|
|
(6,795 |
) |
|
|
53,154 |
|
|
|
55,672 |
|
|
|
|
|
|
|
(6,795 |
) |
|
|
48,877 |
|
Development expense |
|
|
242,747 |
|
|
|
(114,806 |
) |
|
|
|
|
|
|
127,941 |
|
|
|
95,514 |
|
|
|
(66,046 |
) |
|
|
|
|
|
|
29,468 |
|
Port facilities usage rights |
|
|
511,212 |
|
|
|
(349,184 |
) |
|
|
|
|
|
|
162,028 |
|
|
|
509,375 |
|
|
|
(337,166 |
) |
|
|
|
|
|
|
172,209 |
|
Construction-in-progress |
|
|
16,756 |
|
|
|
|
|
|
|
|
|
|
|
16,756 |
|
|
|
153,719 |
|
|
|
|
|
|
|
|
|
|
|
153,719 |
|
Other intangible assets |
|
|
296,112 |
|
|
|
(269,678 |
) |
|
|
|
|
|
|
26,434 |
|
|
|
280,804 |
|
|
|
(260,106 |
) |
|
|
|
|
|
|
20,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,151,605 |
|
|
|
(740,903 |
) |
|
|
(6,795 |
) |
|
|
403,907 |
|
|
|
1,114,054 |
|
|
|
(668,476 |
) |
|
|
(6,795 |
) |
|
|
438,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Changes in the carrying value of intangible assets for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment(*2) |
|
|
Transfer(*3) |
|
|
Ending |
|
Intellectual property rights |
|
₩ |
13,812 |
|
|
|
|
|
|
|
(217 |
) |
|
|
(2,261 |
) |
|
|
|
|
|
|
6,260 |
|
|
|
17,594 |
|
Membership(* 1) |
|
|
48,877 |
|
|
|
5,896 |
|
|
|
(2,209 |
) |
|
|
|
|
|
|
590 |
|
|
|
|
|
|
|
53,154 |
|
Development expense |
|
|
29,468 |
|
|
|
381 |
|
|
|
|
|
|
|
(48,766 |
) |
|
|
|
|
|
|
146,858 |
|
|
|
127,941 |
|
Port facilities usage rights |
|
|
172,209 |
|
|
|
|
|
|
|
|
|
|
|
(12,018 |
) |
|
|
|
|
|
|
1,837 |
|
|
|
162,028 |
|
Construction-in-progress |
|
|
153,719 |
|
|
|
16,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(153,377 |
) |
|
|
16,756 |
|
Other intangible assets |
|
|
20,698 |
|
|
|
13,577 |
|
|
|
|
|
|
|
(11,067 |
) |
|
|
|
|
|
|
3,226 |
|
|
|
26,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
438,783 |
|
|
|
36,268 |
|
|
|
(2,426 |
) |
|
|
(74,112 |
) |
|
|
590 |
|
|
|
4,804 |
|
|
|
403,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Economic useful life of membership is indefinite. |
(*2) |
The Company reversed accumulated impairment loss up to the carrying value before recognition of any impairment loss since recoverable amounts of some memberships exceeded the carrying value, either. |
(*3) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
47
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment(*2) |
|
|
Transfer(*3) |
|
|
Ending |
|
Intellectual property rights |
|
₩ |
8,904 |
|
|
|
|
|
|
|
(291 |
) |
|
|
(1,625 |
) |
|
|
|
|
|
|
6,824 |
|
|
|
13,812 |
|
Membership(* 1) |
|
|
49,560 |
|
|
|
1,022 |
|
|
|
(1,124 |
) |
|
|
|
|
|
|
(581 |
) |
|
|
|
|
|
|
48,877 |
|
Development expense |
|
|
30,092 |
|
|
|
1,902 |
|
|
|
|
|
|
|
(16,156 |
) |
|
|
|
|
|
|
13,630 |
|
|
|
29,468 |
|
Port facilities usage rights |
|
|
87,983 |
|
|
|
|
|
|
|
|
|
|
|
(10,265 |
) |
|
|
|
|
|
|
94,491 |
|
|
|
172,209 |
|
Construction-in-progress |
|
|
96,035 |
|
|
|
98,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(40,775 |
) |
|
|
153,719 |
|
Other intangible assets |
|
|
21,267 |
|
|
|
1,658 |
|
|
|
|
|
|
|
(10,021 |
) |
|
|
|
|
|
|
7,794 |
|
|
|
20,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
293,841 |
|
|
|
103,041 |
|
|
|
(1,415 |
) |
|
|
(38,067 |
) |
|
|
(581 |
) |
|
|
81,964 |
|
|
|
438,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Economic useful life of membership is indefinite. |
(*2) |
Since the carrying amount exceeded recoverable amount, impairment loss on memberships was recognized. |
(*3) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
16. Borrowings
(a) |
Borrowings as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Short-term borrowings |
|
|
|
|
|
|
|
|
Short-term borrowings |
|
₩ |
|
|
|
|
203,138 |
|
Current portion of long-term borrowings |
|
|
236,553 |
|
|
|
188,381 |
|
Current portion of loans from foreign financial institutions |
|
|
418 |
|
|
|
927 |
|
Current portion of debentures |
|
|
1,000,000 |
|
|
|
1,540,109 |
|
Less: Current portion of discount on debentures issued |
|
|
(681 |
) |
|
|
(1,272 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,236,290 |
|
|
|
1,931,283 |
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
|
|
|
|
|
|
|
Long-term borrowings |
|
₩ |
447,437 |
|
|
|
648,251 |
|
Loans from foreign financial institutions |
|
|
627 |
|
|
|
1,140 |
|
Debentures |
|
|
4,871,627 |
|
|
|
6,107,973 |
|
Less: Discount on debentures issued |
|
|
(18,764 |
) |
|
|
(38,167 |
) |
Add: Premium on debentures redemption |
|
|
|
|
|
|
12,591 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
5,300,927 |
|
|
|
6,731,788 |
|
|
|
|
|
|
|
|
|
|
48
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Short-term borrowings as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
Lenders |
|
2014 |
|
|
2013 |
|
Transfers of account receivables that do not qualify for derecognition |
|
₩ |
|
|
|
|
203,138 |
|
(c) |
Current portion of long-term borrowings as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance |
|
|
Maturity |
|
|
Annual |
|
|
|
|
|
|
|
(in millions of Won) |
|
Lenders |
|
date |
|
|
date |
|
|
interest rate (%) |
|
|
2014 |
|
|
2013 |
|
Borrowings |
|
Woori Bank and others |
|
|
2006.10.31~ 2011.04.28 |
|
|
|
2017.03.15~ 2024.06.15 |
|
|
|
0.75~1.75 |
|
|
₩ |
15,532 |
|
|
|
14,969 |
|
Borrowings |
|
Export-Import Bank of korea |
|
|
2010.02.18~ 2011.03.23 |
|
|
|
2015.09.23~ 2017.07.26 |
|
|
|
4.09~4.50 |
|
|
|
221,021 |
|
|
|
173,412 |
|
Loans from foreign financial institutions |
|
NATIXIS(* 1) |
|
|
1986.03.31 |
|
|
|
2017.03.31 |
|
|
|
2.00 |
|
|
|
418 |
|
|
|
927 |
|
Debentures |
|
Domestic debentures 294 and another |
|
|
2010.08.04~ 2010.11.16 |
|
|
|
2015.08.04~ 2015.11.16 |
|
|
|
4.38~4.81 |
|
|
|
999,319 |
|
|
|
499,975 |
|
Debentures |
|
Global fund 1 and another |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,038,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,236,290 |
|
|
|
1,728,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2014, Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
(d) |
Long-term borrowings excluding current portion, as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance |
|
Maturity |
|
Annual |
|
|
|
|
|
|
(in millions of Won) |
|
Lenders |
|
date |
|
date |
|
interest rate (%) |
|
2014 |
|
|
2013 |
|
Borrowings |
|
Woori Bank and others(* 1) |
|
2006.10.31~ 2013.05.08 |
|
2017.03.15~ 2041.05.08 |
|
0.75~1.75 |
|
₩ |
55,662 |
|
|
|
71,194 |
|
Borrowings |
|
Korea National Oil Corporation |
|
2007.12.27~ 2013.12.30 |
|
2022.06.25~ 2026.12.29 |
|
3 year Government bond |
|
|
14,159 |
|
|
|
13,593 |
|
Borrowings |
|
Korea EXIM Bank |
|
2010.07.26~ 2013.07.03 |
|
2017.07.26~ 2018.03.23 |
|
4.09~4.50 |
|
|
377,616 |
|
|
|
563,464 |
|
Loans from foreign financial institutions |
|
NATIXIS(* 2) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
627 |
|
|
|
1,140 |
|
Debentures |
|
Domestic debentures 297 and others |
|
2011.03.04~ 2013.10.04 |
|
2016.03.04~ 2023.10.04 |
|
3.35~4.65 |
|
|
2,295,585 |
|
|
|
3,292,417 |
|
Debentures |
|
Samurai Bond 11 and others |
|
2006.08.10~ 2013.12.11 |
|
2016.08.20~ 2021.12.22 |
|
0.93~5.88 |
|
|
2,557,278 |
|
|
|
2,789,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
5,300,927 |
|
|
|
6,731,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Short-term financial instruments amounting to ₩5,200 million and ₩4,700 million as of December 31, 2014 and 2013, respectively, are collateralized for long-term borrowings from the National Forestry
Cooperative Federation. |
(*2) |
As of December 31, 2014, Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
49
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
17. Other Payables
Other payables as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Accounts payable |
|
₩ |
627,337 |
|
|
|
463,196 |
|
Accrued expenses |
|
|
386,014 |
|
|
|
306,723 |
|
Dividend payable |
|
|
9,523 |
|
|
|
9,180 |
|
Finance lease liabilities |
|
|
1,218 |
|
|
|
1,124 |
|
Withholdings |
|
|
8,404 |
|
|
|
11,660 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,032,496 |
|
|
|
791,883 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Long-term accounts payable |
|
₩ |
54,131 |
|
|
|
91,827 |
|
Accrued expenses |
|
|
22,767 |
|
|
|
22,922 |
|
Finance lease liabilities |
|
|
4,006 |
|
|
|
5,042 |
|
Long-term withholdings |
|
|
7,903 |
|
|
|
4,888 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
88,807 |
|
|
|
124,679 |
|
|
|
|
|
|
|
|
|
|
18. Other Financial Liabilities
Other financial liabilities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Derivative liabilities |
|
₩ |
|
|
|
|
36,964 |
|
Financial guarantee liabilities |
|
|
9,236 |
|
|
|
9,045 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
9,236 |
|
|
|
46,009 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Derivative liabilities |
|
₩ |
|
|
|
|
175,463 |
|
Financial guarantee liabilities |
|
|
50,574 |
|
|
|
56,076 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
50,574 |
|
|
|
231,539 |
|
|
|
|
|
|
|
|
|
|
50
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
19. Provisions
(a) |
Provisions as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
Estimated allowance(* 1) |
|
₩ |
8,423 |
|
|
|
|
|
|
|
8,501 |
|
|
|
|
|
Provision for restoration(* 2) |
|
|
39,336 |
|
|
|
31,063 |
|
|
|
|
|
|
|
|
|
Provision for litigation(* 3) |
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
47,759 |
|
|
|
31,474 |
|
|
|
8,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Represents the provision for bonuses for executives. |
(*2) |
Due to contamination of the land near the Companys magnesium plant located in Gangneung, the Company recognized a provision of ₩89,433 million related to restoration costs. When estimating the related
costs, the Company has assumed that it would use all of technologies and materials available to restore the land. In addition, the Company has applied a discount rate of 3.04% to measure the present value of these costs. |
(*3) |
The Company has recognized a provision for several litigations based on the Companys estimates. |
(b) |
Changes in provisions for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
Estimated allowance at the end of period |
|
₩ |
8,501 |
|
|
|
10,643 |
|
|
|
(10,721 |
) |
|
|
8,423 |
|
Provision for restoration at the end of period |
|
|
|
|
|
|
89,433 |
|
|
|
(19,034 |
) |
|
|
70,399 |
|
Provision for litigation at the end of period |
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,501 |
|
|
|
100,487 |
|
|
|
(29,755 |
) |
|
|
79,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
Estimated allowance at the end of period |
|
₩ |
6,239 |
|
|
|
12,428 |
|
|
|
(10,166 |
) |
|
|
8,501 |
|
51
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
20. Employee Benefits
(a) |
Defined contribution plans |
The expense related to post-employment benefit plans under defined
contribution plans for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Expense related to post-employment benefit plans under defined contribution plans |
|
₩ |
18,229 |
|
|
|
15,903 |
|
(b) |
Defined benefit plans |
1) |
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Present value of funded obligations |
|
₩ |
1,017,164 |
|
|
|
905,918 |
|
Fair value of plan assets |
|
|
(931,006 |
) |
|
|
(805,268 |
) |
|
|
|
|
|
|
|
|
|
Net defined benefit liabilities |
|
₩ |
86,158 |
|
|
|
100,650 |
|
|
|
|
|
|
|
|
|
|
2) |
Changes in present value of defined benefit obligations for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Defined benefit obligation at the beginning of period |
|
₩ |
905,918 |
|
|
|
817,618 |
|
Current service costs |
|
|
113,688 |
|
|
|
118,975 |
|
Interest costs |
|
|
32,595 |
|
|
|
27,942 |
|
Remeasurement: |
|
|
47,604 |
|
|
|
11,553 |
|
- Loss from change in financial assumptions |
|
|
36,238 |
|
|
|
13,555 |
|
- Loss (Gain) from change in demographic assumptions |
|
|
11,366 |
|
|
|
(2,002 |
) |
Transfer-in |
|
|
1,959 |
|
|
|
|
|
Benefits paid |
|
|
(84,600 |
) |
|
|
(70,170 |
) |
|
|
|
|
|
|
|
|
|
Defined benefit obligation at the end of period |
|
₩ |
1,017,164 |
|
|
|
905,918 |
|
|
|
|
|
|
|
|
|
|
52
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
3) |
Changes in the fair value of plan assets for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Fair value of plan assets at the beginning of period |
|
₩ |
805,268 |
|
|
|
677,362 |
|
Interest on plan assets |
|
|
31,911 |
|
|
|
24,261 |
|
Remeasurement of plan assets |
|
|
(8,417 |
) |
|
|
86 |
|
Contributions to plan assets |
|
|
146,000 |
|
|
|
140,000 |
|
Transfer-in |
|
|
1,959 |
|
|
|
|
|
Benefits paid |
|
|
(45,715 |
) |
|
|
(36,441 |
) |
|
|
|
|
|
|
|
|
|
Fair value of plan assets at the end of period |
|
₩ |
931,006 |
|
|
|
805,268 |
|
|
|
|
|
|
|
|
|
|
The Company expects to make an estimated contribution of ₩146,000 million to the defined benefit plan assets in
2015.
4) |
The fair value of plan assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Debt instruments |
|
₩ |
125,353 |
|
|
|
|
|
Deposits |
|
|
749,749 |
|
|
|
805,202 |
|
Others |
|
|
55,904 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
Total |
|
₩ |
931,006 |
|
|
|
805,268 |
|
|
|
|
|
|
|
|
|
|
5) |
The amounts recognized in the statements of comprehensive income for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current service costs |
|
₩ |
113,688 |
|
|
|
118,975 |
|
Net interest costs(* 1) |
|
|
684 |
|
|
|
3,681 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
114,372 |
|
|
|
122,656 |
|
|
|
|
|
|
|
|
|
|
(*1) |
The actual return on plan assets amounted to ₩23,494 million and ₩24,347 million for the years ended December 31, 2014 and 2013, respectively. |
The above expenses by function were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Cost of sales |
|
₩ |
90,993 |
|
|
|
97,490 |
|
Selling and administrative expenses |
|
|
23,121 |
|
|
|
23,834 |
|
Others |
|
|
258 |
|
|
|
1,332 |
|
|
|
|
|
|
|
|
|
|
Total |
|
₩ |
114,372 |
|
|
|
122,656 |
|
|
|
|
|
|
|
|
|
|
53
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
6) |
Actuarial gains (losses), net of tax recognized in other comprehensive income for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
(158,462 |
) |
|
|
(149,770 |
) |
Current actuarial losses |
|
|
(56,021 |
) |
|
|
(11,467 |
) |
Tax effects |
|
|
13,557 |
|
|
|
2,775 |
|
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
(200,926 |
) |
|
|
(158,462 |
) |
|
|
|
|
|
|
|
|
|
7) |
The principal actuarial assumptions as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
Discount rate |
|
|
2.96 |
% |
|
|
3.95 |
% |
Expected future increases in salaries(* 1) |
|
|
2.80 |
% |
|
|
3.30 |
% |
(*1) |
The expected future increases in salaries are based on the average salary increase rate for past three years. |
All assumptions are reviewed at the end of the reporting period. Additionally, the total estimated defined benefit obligation includes actuarial assumptions
associated with the long-term characteristics of the defined benefit plan.
8) |
Reasonably possible changes at the reporting date to one of the relevant actuarial assumption, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1% Increase |
|
|
1% Decrease |
|
(in millions of Won) |
|
Amount |
|
|
Percentage (%) |
|
|
Amount |
|
|
Percentage (%) |
|
Discount rate |
|
₩ |
(73,296 |
) |
|
|
(7.2 |
) |
|
|
91,644 |
|
|
|
9.0 |
|
Expected future increases in salaries |
|
|
90,883 |
|
|
|
8.9 |
|
|
|
(74,078 |
) |
|
|
(7.3 |
) |
9) |
As of December 31, 2014 the maturity of the expected benefit payments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Within 1 year |
|
|
1 year -5 years |
|
|
5 years -10 years |
|
|
10 years -20 years |
|
|
After 20 years |
|
|
Total |
|
Benefits paid |
|
₩ |
201 |
|
|
|
69,783 |
|
|
|
379,347 |
|
|
|
670,110 |
|
|
|
190,989 |
|
|
|
1,310,430 |
|
The maturity analysis of the defined benefit obligation were nominal amounts of defined benefit obligations using expected
remaining working lives of employees.
54
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
21. Other Liabilities
Other liabilities as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current |
|
|
|
|
|
|
|
|
Advances received |
|
₩ |
88,880 |
|
|
|
20,912 |
|
Withholding |
|
|
18,417 |
|
|
|
15,905 |
|
Unearned revenue |
|
|
1,211 |
|
|
|
1,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
108,508 |
|
|
|
38,109 |
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
Unearned revenue |
|
|
234 |
|
|
|
538 |
|
Others |
|
|
|
|
|
|
3,000 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
234 |
|
|
|
3,538 |
|
|
|
|
|
|
|
|
|
|
22. Financial Instruments
(a) |
Classification of financial instruments |
|
1) |
Financial assets as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
Derivatives assets held for trading |
|
₩ |
10,233 |
|
|
|
7,788 |
|
Available-for-sale financial assets |
|
|
1,785,029 |
|
|
|
3,354,770 |
|
Loans and receivables |
|
|
6,024,798 |
|
|
|
7,263,709 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
7,820,060 |
|
|
|
10,626,267 |
|
|
|
|
|
|
|
|
|
|
|
2) |
Financial liabilities as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
₩ |
|
|
|
|
212,427 |
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
|
777,401 |
|
|
|
735,457 |
|
Borrowings |
|
|
6,537,217 |
|
|
|
8,663,071 |
|
Financial guarantee liabilities(* 1) |
|
|
59,810 |
|
|
|
65,121 |
|
Others |
|
|
1,036,487 |
|
|
|
916,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,410,915 |
|
|
|
10,380,211 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,410,915 |
|
|
|
10,592,638 |
|
|
|
|
|
|
|
|
|
|
55
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(*1) |
Financial liabilities were recognized in connection with financial guarantee contracts as of December 31, 2014. The details of the amount of guarantees provided are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
|
|
|
|
|
Guarantee beneficiary |
|
Financial institution |
|
Foreign currency |
|
|
Won equivalent |
|
POSCO(Guangdong) |
|
BOA |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
Automotive Steel Co., Ltd. |
|
SMBC |
|
USD |
|
|
35,000,000 |
|
|
|
38,472 |
|
Zhangjiagang Pohang |
|
BTMU |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
Stainless Steel Co., Ltd. |
|
Credit Agricole |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
Mizuho |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
POSCO Maharashtra |
|
Citi |
|
USD |
|
|
60,000,000 |
|
|
|
65,952 |
|
Steel Private Limited |
|
DBS |
|
USD |
|
|
100,000,000 |
|
|
|
109,920 |
|
|
|
HSBC |
|
USD |
|
|
80,000,000 |
|
|
|
87,936 |
|
|
|
ING |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
KDB |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
Export-Import Bank of Korea |
|
USD |
|
|
193,000,000 |
|
|
|
212,146 |
|
|
|
SCB |
|
USD |
|
|
73,069,000 |
|
|
|
80,317 |
|
POSCO ASSAN TST |
|
KDB |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
STEEL INDUSTRY |
|
SMBC |
|
USD |
|
|
71,392,500 |
|
|
|
78,475 |
|
|
|
ING |
|
USD |
|
|
45,000,000 |
|
|
|
49,464 |
|
|
|
HSBC |
|
USD |
|
|
27,000,000 |
|
|
|
29,678 |
|
POSCO Electrical Steel |
|
SCB |
|
USD |
|
|
33,784,000 |
|
|
|
37,135 |
|
India Private Limited |
|
ING |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
POSCO Investment Co., Ltd. |
|
BOC |
|
CNY |
|
|
350,000,000 |
|
|
|
62,031 |
|
|
|
BOA |
|
USD |
|
|
45,000,000 |
|
|
|
49,464 |
|
|
|
BTMU |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
HSBC |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
ING |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
JP Morgan |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
SCB |
|
USD |
|
|
45,000,000 |
|
|
|
49,464 |
|
|
|
SMBC |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
Mizuho |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
POSCO MEXICO S.A. DE C.V. |
|
BOA |
|
USD |
|
|
40,000,000 |
|
|
|
43,968 |
|
|
|
HSBC |
|
USD |
|
|
40,000,000 |
|
|
|
43,968 |
|
|
|
KDB |
|
USD |
|
|
50,000,000 |
|
|
|
54,960 |
|
|
|
Mizuho |
|
USD |
|
|
45,000,000 |
|
|
|
49,464 |
|
|
|
SMBC |
|
USD |
|
|
109,725,000 |
|
|
|
120,610 |
|
POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea |
|
USD |
|
|
196,000,000 |
|
|
|
215,443 |
|
|
|
HSBC |
|
USD |
|
|
30,000,000 |
|
|
|
32,976 |
|
|
|
Mizuho |
|
USD |
|
|
16,000,000 |
|
|
|
17,587 |
|
POSCO VST CO., LTD. |
|
ANZ |
|
USD |
|
|
25,000,000 |
|
|
|
27,480 |
|
|
|
HSBC |
|
USD |
|
|
20,000,000 |
|
|
|
21,984 |
|
|
|
Mizuho |
|
USD |
|
|
20,000,000 |
|
|
|
21,984 |
|
LLP POSUK Titanium |
|
Kookmin Bank |
|
USD |
|
|
15,000,000 |
|
|
|
16,488 |
|
PT. KRAKATAU POSCO |
|
ANZ |
|
USD |
|
|
73,500,000 |
|
|
|
80,791 |
|
|
|
BOA |
|
USD |
|
|
35,000,000 |
|
|
|
38,472 |
|
|
|
BTMU |
|
USD |
|
|
119,000,000 |
|
|
|
130,805 |
|
|
|
Credit Suisse AG |
|
USD |
|
|
91,000,000 |
|
|
|
100,027 |
|
|
|
HSBC |
|
USD |
|
|
91,000,000 |
|
|
|
100,027 |
|
|
|
Export-Import Bank of Korea |
|
USD |
|
|
567,000,000 |
|
|
|
623,246 |
|
|
|
Mizuho |
|
USD |
|
|
105,000,000 |
|
|
|
115,416 |
|
|
|
SCB |
|
USD |
|
|
107,800,000 |
|
|
|
118,494 |
|
|
|
SMBC |
|
USD |
|
|
140,000,000 |
|
|
|
153,888 |
|
|
|
CTBC |
|
USD |
|
|
21,000,000 |
|
|
|
23,083 |
|
CSP - Compania |
|
KDB |
|
USD |
|
|
56,666,667 |
|
|
|
62,288 |
|
Siderurgica do Pecem |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
3,381,937,167 |
|
|
|
3,717,424 |
|
|
|
|
|
CNY |
|
|
350,000,000 |
|
|
|
62,031 |
|
|
|
|
|
|
|
|
|
|
|
56
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
3) |
Financial income and costs by category of financial instrument for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
(in millions of Won) |
|
Interest income (cost) |
|
|
Dividend income(* 1) |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income (loss) |
|
Financial assets at fair value through profit or loss |
|
₩ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,445 |
|
|
|
2,445 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
298 |
|
|
|
41,342 |
|
|
|
|
|
|
|
226,215 |
|
|
|
(352,040 |
) |
|
|
|
|
|
|
(84,185 |
) |
|
|
(309,897 |
) |
Loans and receivables |
|
|
92,774 |
|
|
|
|
|
|
|
65,667 |
|
|
|
|
|
|
|
|
|
|
|
(648 |
) |
|
|
157,793 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,123 |
) |
|
|
|
|
|
|
|
|
|
|
(24,123 |
) |
|
|
|
|
Financial liabilities at amortized cost |
|
|
(256,636 |
) |
|
|
|
|
|
|
(26,749 |
) |
|
|
(38,596 |
) |
|
|
|
|
|
|
(257 |
) |
|
|
(322,238 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(163,564 |
) |
|
|
41,342 |
|
|
|
38,918 |
|
|
|
163,496 |
|
|
|
(352,040 |
) |
|
|
1,540 |
|
|
|
(270,308 |
) |
|
|
(309,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Financial income in the statement of comprehensive income includes the dividends from subsidiaries, associates, and joint ventures of ₩306,833 million for the year ended December 31, 2014. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and costs |
|
|
|
|
(in millions of Won) |
|
Interest income (cost) |
|
|
Dividend income(* 1) |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income (loss) |
|
Financial assets at fair value through profit or loss |
|
₩ |
|
|
|
|
|
|
|
|
|
|
|
|
8,869 |
|
|
|
|
|
|
|
1,773 |
|
|
|
10,642 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
4,568 |
|
|
|
45,829 |
|
|
|
|
|
|
|
97,013 |
|
|
|
(170,805 |
) |
|
|
|
|
|
|
(23,395 |
) |
|
|
400,577 |
|
Held-to-maturity investments |
|
|
367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
367 |
|
|
|
|
|
Loans and receivables |
|
|
101,737 |
|
|
|
|
|
|
|
(19,619 |
) |
|
|
(80 |
) |
|
|
|
|
|
|
(898 |
) |
|
|
81,140 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(195,719 |
) |
|
|
(195,719 |
) |
|
|
|
|
Financial liabilities at amortized cost |
|
|
(271,020 |
) |
|
|
|
|
|
|
304,629 |
|
|
|
|
|
|
|
|
|
|
|
(314 |
) |
|
|
33,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(164,348 |
) |
|
|
45,829 |
|
|
|
285,010 |
|
|
|
105,802 |
|
|
|
(170,805 |
) |
|
|
(195,158 |
) |
|
|
(93,670 |
) |
|
|
400,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Finance income in the statement of comprehensive income includes the dividends from subsidiaries, associates, and joint ventures of ₩142,383 million for the year ended December 31, 2013. |
57
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
The carrying amount of financial assets represents the Companys
maximum exposure to credit risk. The maximum exposure to credit risk as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Cash and cash equivalents |
|
₩ |
1,742,767 |
|
|
|
1,394,315 |
|
Financial assets at fair value through profit or loss |
|
|
10,233 |
|
|
|
7,788 |
|
Available-for-sale financial assets |
|
|
17,408 |
|
|
|
20,855 |
|
Loans and other receivables |
|
|
1,100,924 |
|
|
|
2,471,486 |
|
Trade accounts and notes receivable |
|
|
3,157,266 |
|
|
|
3,393,444 |
|
Long-term trade accounts and notes receivable |
|
|
23,841 |
|
|
|
4,464 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
6,052,439 |
|
|
|
7,292,352 |
|
|
|
|
|
|
|
|
|
|
The Company provided financial guarantee for the repayment of loans of subsidiaries, associates, and joint
ventures. As of December 31, 2014 and 2013, the maximum exposure to credit risk caused by financial guarantee amounted to ₩3,779,455 million and ₩3,579,693 million, respectively.
|
2) |
Impairment losses on financial assets |
|
Allowance |
for doubtful accounts as of December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Trade accounts and note receivable |
|
₩ |
9,982 |
|
|
|
10,100 |
|
Other accounts receivable |
|
|
10,533 |
|
|
|
10,571 |
|
Long-term loans |
|
|
|
|
|
|
14,453 |
|
Other assets |
|
|
|
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
20,515 |
|
|
|
35,137 |
|
|
|
|
|
|
|
|
|
|
|
Impairment |
losses on financial assets for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Bad debt expenses |
|
₩ |
19,605 |
|
|
|
3,980 |
|
Impairment loss on available-for-sale securities |
|
|
352,040 |
|
|
|
170,805 |
|
58
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
The aging and impairment losses of trade accounts and notes receivable as of December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Trade accounts and notes receivable |
|
|
Impairment |
|
|
Trade accounts and notes receivable |
|
|
Impairment |
|
Not due |
|
₩ |
3,025,296 |
|
|
|
|
|
|
|
3,072,283 |
|
|
|
|
|
Over due less than 1 month |
|
|
46,656 |
|
|
|
57 |
|
|
|
68,759 |
|
|
|
58 |
|
1 month - 3 months |
|
|
12,468 |
|
|
|
212 |
|
|
|
26,657 |
|
|
|
674 |
|
3 months - 12 months |
|
|
8,061 |
|
|
|
46 |
|
|
|
174,479 |
|
|
|
1,241 |
|
Over 12 months |
|
|
98,608 |
|
|
|
9,667 |
|
|
|
65,830 |
|
|
|
8,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
3,191,089 |
|
|
|
9,982 |
|
|
|
3,408,008 |
|
|
|
10,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes |
in the allowance for doubtful accounts for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
35,137 |
|
|
|
37,241 |
|
Bad debt expenses |
|
|
19,605 |
|
|
|
3,980 |
|
Others |
|
|
(34,227 |
) |
|
|
(6,084 |
) |
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
20,515 |
|
|
|
35,137 |
|
|
|
|
|
|
|
|
|
|
Contractual maturities for non-derivate financial liabilities, including
estimated interest, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Book value |
|
|
Cash flow for contracts |
|
|
not later than 3 month |
|
|
3 month - 6 months |
|
|
6 months - 1 year |
|
|
1 year - 5 years |
|
|
After 5 years |
|
Trade accounts payable |
|
₩ |
777,401 |
|
|
|
777,401 |
|
|
|
777,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
6,537,217 |
|
|
|
7,489,767 |
|
|
|
171,824 |
|
|
|
83,008 |
|
|
|
1,248,159 |
|
|
|
4,447,408 |
|
|
|
1,539,368 |
|
Financial guarantee liabilities(* 1) |
|
|
59,810 |
|
|
|
3,779,455 |
|
|
|
3,779,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
|
1,036,487 |
|
|
|
1,038,275 |
|
|
|
938,357 |
|
|
|
303 |
|
|
|
9,020 |
|
|
|
90,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,410,915 |
|
|
|
13,084,898 |
|
|
|
5,667,037 |
|
|
|
83,311 |
|
|
|
1,257,179 |
|
|
|
4,538,003 |
|
|
|
1,539,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. |
59
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
1) |
The Company has exposure to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of
December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Assets |
|
|
Liabilities |
|
|
Assets |
|
|
Liabilities |
|
USD |
|
₩ |
988,023 |
|
|
|
2,839,040 |
|
|
|
701,159 |
|
|
|
3,815,529 |
|
JPY |
|
|
56,037 |
|
|
|
721,588 |
|
|
|
450,938 |
|
|
|
1,370,603 |
|
CNH |
|
|
|
|
|
|
|
|
|
|
76,678 |
|
|
|
|
|
INR |
|
|
365,705 |
|
|
|
|
|
|
|
34,513 |
|
|
|
|
|
Others |
|
|
15,677 |
|
|
|
1,725 |
|
|
|
11,032 |
|
|
|
3,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,425,442 |
|
|
|
3,562,353 |
|
|
|
1,274,320 |
|
|
|
5,189,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
As of December 31, 2014 and 2013, provided that functional currency against foreign currencies other than functional currency hypothetically strengthens or weakens by 10%, the changes in gain or loss for the years
ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
10% increase |
|
|
10% decrease |
|
|
10% increase |
|
|
10% decrease |
|
USD |
|
₩ |
(185,102 |
) |
|
|
185,102 |
|
|
|
(311,437 |
) |
|
|
311,437 |
|
JPY |
|
|
(66,555 |
) |
|
|
66,555 |
|
|
|
(91,967 |
) |
|
|
91,967 |
|
CNH |
|
|
|
|
|
|
|
|
|
|
7,668 |
|
|
|
(7,668 |
) |
INR |
|
|
36,571 |
|
|
|
(36,571 |
) |
|
|
3,451 |
|
|
|
(3,451 |
) |
|
1) |
The carrying amount of interest-bearing financial instruments as of December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Fixed rate |
|
|
|
|
|
|
|
|
Financial assets |
|
₩ |
2,478,673 |
|
|
|
3,773,978 |
|
Financial liabilities |
|
|
(6,469,632 |
) |
|
|
(8,580,517 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
(3,990,959 |
) |
|
|
(4,806,539 |
) |
|
|
|
|
|
|
|
|
|
Variable rate |
|
|
|
|
|
|
|
|
Financial liabilities |
|
₩ |
(67,585 |
) |
|
|
(82,554 |
) |
|
2) |
Sensitivity analysis on the fair value of financial instruments with fixed interest rate |
The
Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Company does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model.
Therefore a change in interest rates at the reporting date would not affect profit or loss.
60
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
3) |
Sensitivity analysis on the fair value of financial instruments with variable interest rate |
As
of December 31, 2014 and 2013, provided that other factors remain the same and the interest rate of borrowings with floating rates increases or decreases by 1%, the changes in interest expense for the years ended December 31, 2014 and 2013
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
1% increase |
|
|
1% decrease |
|
|
1% increase |
|
|
1% decrease |
|
Variable rate financial instruments |
|
₩ |
(676 |
) |
|
|
676 |
|
|
|
(826 |
) |
|
|
826 |
|
|
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Book value |
|
|
Fair value |
|
|
Book value |
|
|
Fair value |
|
Assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(* 1) |
|
₩ |
1,648,567 |
|
|
|
1,648,567 |
|
|
|
3,224,711 |
|
|
|
3,224,711 |
|
Derivatives assets held for trading(* 2) |
|
|
10,233 |
|
|
|
10,233 |
|
|
|
7,788 |
|
|
|
7,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,658,800 |
|
|
|
1,658,800 |
|
|
|
3,232,499 |
|
|
|
3,232,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets measured amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
1,742,767 |
|
|
|
1,742,767 |
|
|
|
1,394,315 |
|
|
|
1,394,315 |
|
Trade accounts and note receivable, net |
|
|
3,181,107 |
|
|
|
3,181,107 |
|
|
|
3,397,908 |
|
|
|
3,397,908 |
|
Loans and other receivables |
|
|
1,100,924 |
|
|
|
1,100,924 |
|
|
|
2,471,486 |
|
|
|
2,471,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,024,798 |
|
|
|
6,024,798 |
|
|
|
7,263,709 |
|
|
|
7,263,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading(* 2) |
|
|
|
|
|
|
|
|
|
|
212,427 |
|
|
|
212,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities measured amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
|
777,401 |
|
|
|
777,401 |
|
|
|
735,457 |
|
|
|
735,457 |
|
Borrowings |
|
|
6,537,217 |
|
|
|
6,918,972 |
|
|
|
8,663,071 |
|
|
|
8,943,063 |
|
Financial guarantee liabilities |
|
|
59,810 |
|
|
|
59,810 |
|
|
|
65,121 |
|
|
|
65,121 |
|
Others |
|
|
1,036,487 |
|
|
|
1,036,487 |
|
|
|
916,562 |
|
|
|
916,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
8,410,915 |
|
|
|
8,792,670 |
|
|
|
10,380,211 |
|
|
|
10,660,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The fair value of available-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted available-for-sale financial
assets is calculated using the valuation results from an external pricing service in which weighted average cost of capital of evaluated companies is used as a discount rate. Available-for-sale financial assets which are not measured at fair value
are excluded. |
(*2) |
The fair value of derivatives is measured using valuation models such as Black-Scholes model and others in which the market yields on government bonds are used as a discount rate. |
61
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(*3) |
The fair value of financial assets and liabilities measured at amortized cost is determined at the present value of estimated future cash flows discounted at the current market interest rate. The fair value is
calculated for the disclosures in the notes. On the other hand, the Company has not performed fair value measurement for the financial assets and liabilities measured at amortized cost except borrowings since the fair value is close to their
carrying amounts. |
|
2) |
Interest rate for determining fair value |
Interest rates used to discount the estimated cash
flows as of December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
2014 |
|
2013 |
Borrowings |
|
0.74%~3.69% |
|
0.76%~4.08% |
|
3) |
The fair value hierarchy |
|
|
The fair value of financial instruments by fair value hierarchy as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
₩ |
1,620,390 |
|
|
|
|
|
|
|
28,177 |
|
|
|
1,648,567 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
10,233 |
|
|
|
|
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,620,390 |
|
|
|
10,233 |
|
|
|
28,177 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
₩ |
2,554,421 |
|
|
|
|
|
|
|
670,290 |
|
|
|
3,224,711 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
7,788 |
|
|
|
|
|
|
|
7,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,554,421 |
|
|
|
7,788 |
|
|
|
670,290 |
|
|
|
3,232,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
₩ |
|
|
|
|
212,427 |
|
|
|
|
|
|
|
212,427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
Changes in financial assets classified as level 3 for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning |
|
₩ |
670,290 |
|
|
|
671,025 |
|
Acquisition |
|
|
2,675 |
|
|
|
6,857 |
|
Other comprehensive income (loss) |
|
|
117,804 |
|
|
|
(4,015 |
) |
Impairment |
|
|
(169,519 |
) |
|
|
(3,577 |
) |
Disposal and others |
|
|
(593,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
₩ |
28,177 |
|
|
|
670,290 |
|
|
|
|
|
|
|
|
|
|
23. Share Capital and Capital Surplus
(a) |
Share capital as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(Share, Won) |
|
2014 |
|
|
2013 |
|
Authorized shares |
|
|
200,000,000 |
|
|
|
200,000,000 |
|
Par value |
|
₩ |
5,000 |
|
|
|
5,000 |
|
Issued shares(* 1) |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Shared capital(* 2) |
|
₩ |
482,403,125,000 |
|
|
|
482,403,125,000 |
|
(*1) |
As of December 31, 2014, total numbers of ADRs of 51,622,460 are equivalent to 12,905,615 shares of common stock. |
(*2) |
As of December 31, 2014 the difference between the ending balance of common stock and the par value of issued common stock is ₩46,469 million due to retirement of 9,293,790 treasury shares.
|
(b) |
The changes in issued common stock for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Number of |
|
|
|
|
|
|
|
|
Number of |
|
|
|
Issued |
|
|
Treasury |
|
|
outstanding |
|
|
Issued |
|
|
Treasury |
|
|
outstanding |
|
(in share) |
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
|
shares |
|
Beginning |
|
₩ |
87,186,835 |
|
|
|
(7,403,211 |
) |
|
|
79,783,624 |
|
|
|
87,186,835 |
|
|
|
(9,942,391 |
) |
|
|
77,244,444 |
|
Disposal of treasury shares |
|
|
|
|
|
|
209,404 |
|
|
|
209,404 |
|
|
|
|
|
|
|
2,539,180 |
|
|
|
2,539,180 |
|
Ending |
|
|
87,186,835 |
|
|
|
(7,193,807 |
) |
|
|
79,993,028 |
|
|
|
87,186,835 |
|
|
|
(7,403,211 |
) |
|
|
79,783,624 |
|
63
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
Capital surplus as of December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Additional paid in capital |
|
₩ |
463,825 |
|
|
|
463,825 |
|
Gain on disposal of treasury shares |
|
|
783,791 |
|
|
|
769,215 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,247,616 |
|
|
|
1,233,040 |
|
|
|
|
|
|
|
|
|
|
24. Hybrid Bonds
(a) |
Hybrid bonds classified as equity as of December 31, 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate of |
|
|
|
|
|
|
(in millions of Won) |
|
Date of issue |
|
Date of maturity |
|
interest (%) |
|
2014 |
|
|
2013 |
|
Hybrid bond 1-1(* 1) |
|
2013-06-13 |
|
2043-06-13 |
|
4.30 |
|
₩ |
800,000 |
|
|
|
800,000 |
|
Hybrid bond 1-2(* 1) |
|
2013-06-13 |
|
2043-06-13 |
|
4.60 |
|
|
200,000 |
|
|
|
200,000 |
|
Issuance cost |
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
996,919 |
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Details of hybrid bonds as of December 31, 2014 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 |
Issue price |
|
800,000 |
|
|
|
200,000 |
Maturity date |
|
30 years |
|
30 years |
|
|
(The Company has a right to extend the maturity date) |
|
(The Company has a right to extend the maturity date) |
Interest rate |
|
Issue date ~ 2018-06-12 : 4.3% |
|
Issue date ~ 2023 -06 -12 : 4.6% |
|
|
reset every 5 years as follows; |
|
reset every 10 years as follows; |
|
|
|
|
After 5 years : return on government bond (5 years) + 1.3% |
|
|
|
After 10 years : return on government bond (10 years) + 1.4% |
|
|
|
|
After 10 years : additionally + 0.25% according to Step-up clauses |
|
|
|
After 10 years : additionally + 0.25% according to Step-up clauses |
|
|
|
|
After 25 years : additionally + 0.75% |
|
|
|
After 30 years : additionally + 0.75% |
Interest payments condition |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
Others |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 10 and interest payment date afterwards |
The Company holds the right to extend the maturity dates of the hybrid bonds and to defer interest payments for
the hybrid bonds. If interest payments for the hybrid bonds are deferred, the Company cannot declare or pay dividends attributable to common stock. Since the Company has an unconditional right to avoid delivering cash or another financial asset to
settle a contractual obligation, the hybrid bonds have been classified as equity instruments. The interest accumulated but not paid on the hybrid bonds as of December 31, 2014 amounts to ₩2,301 million.
64
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
25. Reserves
(a) |
Reserves as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Accumulated changes in the unrealized fair value of available-for-sale investments, net of tax |
|
₩ |
94,042 |
|
|
|
403,939 |
|
(b) |
Changes in the accumulated unrealized fair value of available-for-sale investments for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Beginning balance |
|
₩ |
403,939 |
|
|
|
3,362 |
|
Changes in unrealized fair value of available-for-sale investments |
|
|
(523,168 |
) |
|
|
467,942 |
|
Reclassification to profit or loss upon disposal |
|
|
(237,708 |
) |
|
|
(93,976 |
) |
Impairment of available-for-sale securities |
|
|
352,040 |
|
|
|
170,805 |
|
Tax effects |
|
|
98,939 |
|
|
|
(144,194 |
) |
|
|
|
|
|
|
|
|
|
Ending balance |
|
₩ |
94,042 |
|
|
|
403,939 |
|
|
|
|
|
|
|
|
|
|
26. Treasury Shares
Based on the Board of Directors resolution, the Company holds treasury shares for business purposes including price stabilization. The changes in
treasury shares for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
|
Number of |
|
|
|
|
|
Number of |
|
|
|
|
(shares, in millions of Won) |
|
shares |
|
|
Amount |
|
|
shares |
|
|
Amount |
|
Beginning |
|
|
7,403,211 |
|
|
₩ |
1,579,124 |
|
|
|
9,942,391 |
|
|
₩ |
2,391,406 |
|
Disposal of treasury shares |
|
|
(209,404 |
) |
|
|
(44,667 |
) |
|
|
(2,539,180 |
) |
|
|
(812,283 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
|
7,193,807 |
|
|
₩ |
1,534,457 |
|
|
|
7,403,211 |
|
|
₩ |
1,579,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27. Retained Earnings
(a) |
Retained earnings as of December 31, 2014 and 2013 are summarized as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Legal reserve |
|
₩ |
241,202 |
|
|
|
241,202 |
|
Reserve for business rationalization |
|
|
918,300 |
|
|
|
918,300 |
|
Reserve for research and manpower development |
|
|
1,600,000 |
|
|
|
1,573,333 |
|
Appropriated retained earnings for business expansion |
|
|
35,510,500 |
|
|
|
34,310,500 |
|
Appropriated retained earnings for dividends |
|
|
1,806,570 |
|
|
|
2,044,113 |
|
Unappropriated retained earnings |
|
|
1,112,336 |
|
|
|
1,686,836 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
41,188,908 |
|
|
|
40,774,284 |
|
|
|
|
|
|
|
|
|
|
65
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
Statements of appropriation of retained earnings as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Retained earnings before appropriation |
|
|
|
|
|
|
|
|
Unappropriated retained earnings carried over from prior year |
|
₩ |
219,010 |
|
|
|
291,582 |
|
Actuarial losses |
|
|
(42,464 |
) |
|
|
(8,692 |
) |
Interests of Hybrid bonds |
|
|
(43,600 |
) |
|
|
(24,161 |
) |
Interim dividends |
|
|
(159,568 |
) |
|
|
(154,489 |
) |
Dividends (ratio) per share |
|
|
|
|
|
|
|
|
₩2,000 (40%) in 2014 |
|
|
|
|
|
|
|
|
₩2,000 (40%) in 2013 |
|
|
|
|
|
|
|
|
Profit for the period |
|
|
1,138,958 |
|
|
|
1,582,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,112,336 |
|
|
|
1,686,836 |
|
Transfer from discretionary reserve |
|
|
|
|
|
|
|
|
Reserve for research and manpower development |
|
|
493,333 |
|
|
|
383,333 |
|
Appropriated retained earnings for dividends |
|
|
354,787 |
|
|
|
237,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
848,120 |
|
|
|
620,876 |
|
Appropriation of retained earnings |
|
|
|
|
|
|
|
|
Cash dividends |
|
|
|
|
|
|
|
|
Dividends (ratio) per share |
|
|
479,958 |
|
|
|
478,702 |
|
₩6,000 (120%) in 2014 |
|
|
|
|
|
|
|
|
₩6,000 (120%) in 2013 |
|
|
|
|
|
|
|
|
Reserve for research and manpower development |
|
|
|
|
|
|
410,000 |
|
Appropriated retained earnings for business expansion |
|
|
1,200,000 |
|
|
|
1,200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,679,958 |
|
|
|
2,088,702 |
|
|
|
|
|
|
|
|
|
|
Unappropriated retained earnings carried forward to subsequent year |
|
₩ |
280,498 |
|
|
|
219,010 |
|
|
|
|
|
|
|
|
|
|
28. Revenue
Details of
revenue for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Revenues |
|
|
|
|
|
|
|
|
Sales of goods |
|
₩ |
29,105,087 |
|
|
|
30,436,474 |
|
Others |
|
|
113,767 |
|
|
|
107,071 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
29,218,854 |
|
|
|
30,543,545 |
|
|
|
|
|
|
|
|
|
|
66
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
29. Selling and Administrative Expenses
(a) |
Administrative expenses |
Administrative expenses for the years ended December 31, 2014 and
2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Wages and salaries |
|
₩ |
204,989 |
|
|
|
198,726 |
|
Expenses related to post-employment benefits |
|
|
24,224 |
|
|
|
23,994 |
|
Other employee benefits |
|
|
53,388 |
|
|
|
44,630 |
|
Travel |
|
|
13,599 |
|
|
|
14,906 |
|
Depreciation |
|
|
23,430 |
|
|
|
25,074 |
|
Amortization |
|
|
52,923 |
|
|
|
18,126 |
|
Rental |
|
|
68,859 |
|
|
|
54,931 |
|
Repairs |
|
|
10,918 |
|
|
|
13,623 |
|
Advertising |
|
|
85,486 |
|
|
|
89,584 |
|
Research & development |
|
|
137,433 |
|
|
|
150,786 |
|
Service fees |
|
|
184,215 |
|
|
|
183,053 |
|
Vehicles maintenance |
|
|
7,046 |
|
|
|
7,012 |
|
Industry association fee |
|
|
7,252 |
|
|
|
7,710 |
|
Training |
|
|
10,157 |
|
|
|
9,593 |
|
Conference |
|
|
5,209 |
|
|
|
4,956 |
|
Bad debt expenses |
|
|
7,976 |
|
|
|
3,980 |
|
Others |
|
|
36,880 |
|
|
|
42,282 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
933,984 |
|
|
|
892,966 |
|
|
|
|
|
|
|
|
|
|
Selling expenses for the years ended December 31, 2014 and 2013 were as
follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Freight and custody expenses |
|
₩ |
872,594 |
|
|
|
842,424 |
|
Operating expenses for distribution center |
|
|
9,823 |
|
|
|
9,370 |
|
Sales commissions |
|
|
79,091 |
|
|
|
70,397 |
|
Sales advertising |
|
|
4,698 |
|
|
|
3,145 |
|
Sales promotion |
|
|
5,161 |
|
|
|
6,375 |
|
Sample |
|
|
1,649 |
|
|
|
1,247 |
|
Sales insurance premium |
|
|
6,170 |
|
|
|
7,871 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
979,186 |
|
|
|
940,829 |
|
|
|
|
|
|
|
|
|
|
67
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
30. Research and Development Expenditures Recognized as Expense
Research and development expenditures recognized as expenses for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Selling and administrative expenses |
|
₩ |
137,433 |
|
|
|
150,786 |
|
Cost of sales |
|
|
343,516 |
|
|
|
364,876 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
480,949 |
|
|
|
515,662 |
|
|
|
|
|
|
|
|
|
|
31. Reconciliation of Operating Profit
The operating profit in the Companys separate statements of comprehensive income prepared in accordance with K-IFRS included in this report differs from
that in its separate statements of comprehensive income prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Companys results from operating activities as presented in the Companys
separate statements of comprehensive income prepared in accordance with K-IFRS for each of the years ended December 31, 2014 and 2013 to the operating profit as presented in the Companys separate statements of comprehensive income
prepared in accordance with IFRS as issued by IASB for each of the corresponding years.
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Operating profits on the statement of comprehensive income (K-IFRS) (Note 33) |
|
₩ |
2,350,035 |
|
|
|
2,215,133 |
|
|
|
|
|
|
|
|
|
|
Add |
|
|
|
|
|
|
|
|
Gain on disposals of property, plant and equipment |
|
|
8,882 |
|
|
|
6,773 |
|
Reversal of impairment loss on intangible assets |
|
|
2,256 |
|
|
|
|
|
Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
14,544 |
|
Gain on disposals of assets held for sale |
|
|
|
|
|
|
67,875 |
|
Reversal of allowance for doubtful accounts |
|
|
14,453 |
|
|
|
|
|
Others |
|
|
21,273 |
|
|
|
50,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
46,864 |
|
|
|
140,048 |
|
|
|
|
|
|
|
|
|
|
Deduct |
|
|
|
|
|
|
|
|
Loss on disposals of property, plant and equipment |
|
|
(57,777 |
) |
|
|
(94,533 |
) |
Impairment loss on property, plant and equipment |
|
|
(30,334 |
) |
|
|
(5,697 |
) |
Loss on disposals of intangible assets |
|
|
(367 |
) |
|
|
(315 |
) |
Impairment loss on intangible assets |
|
|
(1,666 |
) |
|
|
(581 |
) |
Loss on disposals of investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
(12,295 |
) |
Impairment loss on investment in subsidiaries, associates and joint ventures |
|
|
(209,795 |
) |
|
|
(235,794 |
) |
Impairment loss on assets held for sale |
|
|
|
|
|
|
(1,814 |
) |
Other bad debt expenses |
|
|
(26,082 |
) |
|
|
|
|
Contribution to provisions |
|
|
(89,844 |
) |
|
|
|
|
Donations |
|
|
(50,654 |
) |
|
|
(40,319 |
) |
Others |
|
|
(245,512 |
) |
|
|
(27,251 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(712,031 |
) |
|
|
(418,599 |
) |
|
|
|
|
|
|
|
|
|
Operating profit (IFRS as issued by IASB) |
|
₩ |
1,684,868 |
|
|
|
1,936,582 |
|
|
|
|
|
|
|
|
|
|
68
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
32. Finance Income and Costs
Details of finance income and costs for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Finance income |
|
|
|
|
|
|
|
|
Interest income |
|
₩ |
93,072 |
|
|
|
106,672 |
|
Dividend income |
|
|
348,175 |
|
|
|
188,212 |
|
Gain on derivative transactions |
|
|
22,973 |
|
|
|
9,144 |
|
Gain on foreign currency transactions |
|
|
276,374 |
|
|
|
299,574 |
|
Gain on foreign currency translations |
|
|
79,956 |
|
|
|
264,614 |
|
Gain on disposals of available-for-sale investment |
|
|
226,299 |
|
|
|
97,085 |
|
Others |
|
|
3,945 |
|
|
|
1,772 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,050,794 |
|
|
|
967,073 |
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
|
Interest expenses |
|
₩ |
256,636 |
|
|
|
271,020 |
|
Loss on foreign currency transactions |
|
|
209,787 |
|
|
|
261,019 |
|
Loss on foreign currency translations |
|
|
107,625 |
|
|
|
18,159 |
|
Loss on valuation of derivatives |
|
|
|
|
|
|
195,719 |
|
Impairment loss on available-for-sale investment |
|
|
352,040 |
|
|
|
170,805 |
|
Others |
|
|
88,181 |
|
|
|
1,638 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,014,269 |
|
|
|
918,360 |
|
|
|
|
|
|
|
|
|
|
69
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
33. Other Non-Operating Income and Expenses
Details of other non-operating income and expenses for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Other non-operating income |
|
|
|
|
|
|
|
|
Gain on disposals of property, plant and equipment |
|
₩ |
8,882 |
|
|
|
6,773 |
|
Reversal of impairment loss on intangible assets |
|
|
2,256 |
|
|
|
|
|
Gain on disposals of investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
14,544 |
|
Gain on disposals of assets held for sale |
|
|
|
|
|
|
67,875 |
|
Reversal of allowance for doubtful accounts |
|
|
14,453 |
|
|
|
|
|
Others |
|
|
21,273 |
|
|
|
50,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
46,864 |
|
|
|
140,048 |
|
|
|
|
|
|
|
|
|
|
Other non-operating expenses |
|
|
|
|
|
|
|
|
Loss on disposals of property, plant and equipment |
|
|
57,777 |
|
|
|
94,533 |
|
Impairment loss on property, plant and equipment |
|
|
30,334 |
|
|
|
5,697 |
|
Loss on disposals of intangible assets |
|
|
367 |
|
|
|
315 |
|
Impairment loss on intangible assets |
|
|
1,666 |
|
|
|
581 |
|
Loss on disposals of investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
12,295 |
|
Impairment loss on investment in subsidiaries, associates and joint ventures |
|
|
209,795 |
|
|
|
235,794 |
|
Impairment loss on assets held for sale |
|
|
|
|
|
|
1,814 |
|
Other bad debt expenses |
|
|
26,082 |
|
|
|
|
|
Contribution to provisions |
|
|
89,844 |
|
|
|
|
|
Donations |
|
|
50,654 |
|
|
|
40,319 |
|
Others(* 1) |
|
|
245,512 |
|
|
|
27,251 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
712,031 |
|
|
|
418,599 |
|
|
|
|
|
|
|
|
|
|
(*1) |
As a result of Korea National Tax Services periodic audit of tax payments and refunds of the Company, the Company recognized additional tax payments amounting to ₩202,739 million, primarily related to VAT,
for the year ended December 31, 2014. |
70
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
34. Expenses by Nature
Expenses that are recorded by nature as cost of sales, selling and administrative expenses and other non-operating expenses in the statements of comprehensive
income for the years ended December 31, 2014 and 2013 were as follows (excluding finance costs and income tax expenses):
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Changes in inventories(* 1) |
|
₩ |
(81,303 |
) |
|
|
304,068 |
|
Raw materials and consumables used |
|
|
17,648,525 |
|
|
|
19,380,227 |
|
Employee benefits expenses(* 3) |
|
|
1,462,675 |
|
|
|
1,425,008 |
|
Outsourced processing cost |
|
|
2,204,385 |
|
|
|
2,078,917 |
|
Depreciation(* 2) |
|
|
2,067,793 |
|
|
|
1,932,002 |
|
Amortization |
|
|
74,112 |
|
|
|
38,067 |
|
Electricity and water expenses |
|
|
1,019,769 |
|
|
|
836,199 |
|
Service fees |
|
|
240,493 |
|
|
|
243,954 |
|
Rental |
|
|
87,466 |
|
|
|
76,152 |
|
Advertising |
|
|
85,486 |
|
|
|
89,584 |
|
Freight and custody expenses |
|
|
872,594 |
|
|
|
842,424 |
|
Sales commissions |
|
|
79,091 |
|
|
|
70,397 |
|
Loss on disposals of property, plant and equipment |
|
|
57,777 |
|
|
|
94,533 |
|
Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
209,795 |
|
|
|
235,794 |
|
Contribution to provisions |
|
|
89,844 |
|
|
|
|
|
Other expenses |
|
|
1,462,348 |
|
|
|
1,099,685 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
27,580,850 |
|
|
|
28,747,011 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Changes in inventories are the changes in products, semi-finished products and by-products. |
(*2) |
Includes depreciation of investment property. |
(*3) |
The details of employee benefits expenses for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Wages and salaries |
|
₩ |
1,330,074 |
|
|
|
1,286,449 |
|
Expenses related to post-employment benefits |
|
|
132,601 |
|
|
|
138,559 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,462,675 |
|
|
|
1,425,008 |
|
|
|
|
|
|
|
|
|
|
71
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
35. Income Taxes
(a) |
Income tax expense for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Current income taxes(* 1) |
|
₩ |
461,029 |
|
|
|
291,035 |
|
Deferred income taxes |
|
|
13,564 |
|
|
|
254,790 |
|
Items credited(charged) directly to shareholders equity |
|
|
107,842 |
|
|
|
(143,126 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
₩ |
582,435 |
|
|
|
402,699 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Additional tax payments (or tax returns) arising from finalized tax assessment are added or deducted in current income taxes. |
(b) |
The expected amount of income tax expense based on statutory rates compared to the actual amount of taxes recorded by the Company for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Profit before income tax expense |
|
₩ |
1,721,393 |
|
|
|
1,985,295 |
|
Income tax expense computed at statutory rate |
|
|
416,115 |
|
|
|
480,441 |
|
Adjustments: |
|
|
166,320 |
|
|
|
(77,742 |
) |
Tax credit |
|
|
(54,622 |
) |
|
|
(134,670 |
) |
Effect on result of tax audit |
|
|
52,489 |
|
|
|
|
|
Over(under) provision from prior years |
|
|
(2,957 |
) |
|
|
2,253 |
|
Tax effects due to amendments to local income tax |
|
|
38,249 |
|
|
|
|
|
Investment in subsidiaries, associates and joint ventures |
|
|
118,993 |
|
|
|
57,823 |
|
Tax effect due to permanent differences |
|
|
16,890 |
|
|
|
(11,071 |
) |
Others |
|
|
(2,722 |
) |
|
|
7,923 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
₩ |
582,435 |
|
|
|
402,699 |
|
|
|
|
|
|
|
|
|
|
Effective tax rate (%) |
|
|
33.8 |
% |
|
|
20.3 |
% |
(c) |
The income taxes credited (charged) directly to equity for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Net changes in the unrealized fair value of available-for-sale securities |
|
₩ |
98,939 |
|
|
|
(144,194 |
) |
Defined benefit plan actuarial losses |
|
|
13,557 |
|
|
|
2,775 |
|
Gain on disposal of treasury shares |
|
|
(4,654 |
) |
|
|
(1,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
107,842 |
|
|
|
(143,126 |
) |
|
|
|
|
|
|
|
|
|
72
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(d) |
The movements in deferred tax assets (liabilities) for the years ended December 31, 2014 and 2013 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
December 31, 2013 |
|
|
Increase (decrease) |
|
|
December 31, 2014 |
|
|
December 31, 2012 |
|
|
Increase (decrease) |
|
|
December 31, 2013 |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
₩ |
(28,462 |
) |
|
|
16,049 |
|
|
|
(12,413 |
) |
|
|
(29,013 |
) |
|
|
551 |
|
|
|
(28,462 |
) |
Reserve for technology developments |
|
|
(375,100 |
) |
|
|
119,387 |
|
|
|
(255,713 |
) |
|
|
(368,647 |
) |
|
|
(6,453 |
) |
|
|
(375,100 |
) |
PPE - Depreciation |
|
|
(48,133 |
) |
|
|
8,982 |
|
|
|
(39,151 |
) |
|
|
(56,394 |
) |
|
|
8,261 |
|
|
|
(48,133 |
) |
Prepaid expenses |
|
|
27,680 |
|
|
|
(10,253 |
) |
|
|
17,427 |
|
|
|
29,781 |
|
|
|
(2,101 |
) |
|
|
27,680 |
|
PPE - Revaluation |
|
|
(1,002,798 |
) |
|
|
(210,911 |
) |
|
|
(1,213,709 |
) |
|
|
(789,056 |
) |
|
|
(213,742 |
) |
|
|
(1,002,798 |
) |
Loss on foreign currency translation |
|
|
(174,930 |
) |
|
|
126,516 |
|
|
|
(48,414 |
) |
|
|
(52,508 |
) |
|
|
(122,422 |
) |
|
|
(174,930 |
) |
Defined benefit obligations |
|
|
184,389 |
|
|
|
31,757 |
|
|
|
216,146 |
|
|
|
157,559 |
|
|
|
26,830 |
|
|
|
184,389 |
|
Plan assets |
|
|
(194,925 |
) |
|
|
(26,291 |
) |
|
|
(221,216 |
) |
|
|
(161,152 |
) |
|
|
(33,773 |
) |
|
|
(194,925 |
) |
Accrued revenue |
|
|
(1,932 |
) |
|
|
1,054 |
|
|
|
(878 |
) |
|
|
(2,575 |
) |
|
|
643 |
|
|
|
(1,932 |
) |
Others |
|
|
290,428 |
|
|
|
(28,208 |
) |
|
|
262,220 |
|
|
|
162,669 |
|
|
|
127,759 |
|
|
|
290,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,323,783 |
) |
|
|
28,082 |
|
|
|
(1,295,701 |
) |
|
|
(1,109,336 |
) |
|
|
(214,447 |
) |
|
|
(1,323,783 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carry-forward |
|
|
368,053 |
|
|
|
(154,142 |
) |
|
|
213,911 |
|
|
|
266,977 |
|
|
|
101,076 |
|
|
|
368,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
368,053 |
|
|
|
(154,142 |
) |
|
|
213,911 |
|
|
|
266,977 |
|
|
|
101,076 |
|
|
|
368,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on valuation of available-for-sale securities |
|
|
(128,962 |
) |
|
|
98,939 |
|
|
|
(30,023 |
) |
|
|
15,232 |
|
|
|
(144,194 |
) |
|
|
(128,962 |
) |
Defined benefit plan actuarial losses |
|
|
50,590 |
|
|
|
13,557 |
|
|
|
64,147 |
|
|
|
47,815 |
|
|
|
2,775 |
|
|
|
50,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(78,372 |
) |
|
|
112,496 |
|
|
|
34,124 |
|
|
|
63,047 |
|
|
|
(141,419 |
) |
|
|
(78,372 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
(1,034,102 |
) |
|
|
(13,564 |
) |
|
|
(1,047,666 |
) |
|
|
(779,312 |
) |
|
|
(254,790 |
) |
|
|
(1,034,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(e) |
Deferred tax assets (liabilities) as of December 31, 2014, December 31, 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
(in millions of Won) |
|
Assets |
|
|
Liabilities |
|
|
Net |
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
₩ |
|
|
|
|
(12,413 |
) |
|
|
(12,413 |
) |
|
|
|
|
|
|
(28,462 |
) |
|
|
(28,462 |
) |
Reserve for technology developments |
|
|
|
|
|
|
(255,713 |
) |
|
|
(255,713 |
) |
|
|
|
|
|
|
(375,100 |
) |
|
|
(375,100 |
) |
PPE - Depreciation |
|
|
12,688 |
|
|
|
(51,839 |
) |
|
|
(39,151 |
) |
|
|
12,961 |
|
|
|
(61,094 |
) |
|
|
(48,133 |
) |
Prepaid expenses |
|
|
17,427 |
|
|
|
|
|
|
|
17,427 |
|
|
|
27,680 |
|
|
|
|
|
|
|
27,680 |
|
PPE - Revaluation |
|
|
|
|
|
|
(1,213,709 |
) |
|
|
(1,213,709 |
) |
|
|
|
|
|
|
(1,002,798 |
) |
|
|
(1,002,798 |
) |
Loss on foreign currency translation |
|
|
74,104 |
|
|
|
(122,518 |
) |
|
|
(48,414 |
) |
|
|
60,196 |
|
|
|
(235,126 |
) |
|
|
(174,930 |
) |
Defined benefit obligations |
|
|
216,146 |
|
|
|
|
|
|
|
216,146 |
|
|
|
184,389 |
|
|
|
|
|
|
|
184,389 |
|
Plan assets |
|
|
|
|
|
|
(221,216 |
) |
|
|
(221,216 |
) |
|
|
|
|
|
|
(194,925 |
) |
|
|
(194,925 |
) |
Accrued revenue |
|
|
|
|
|
|
(878 |
) |
|
|
(878 |
) |
|
|
|
|
|
|
(1,932 |
) |
|
|
(1,932 |
) |
Others |
|
|
353,214 |
|
|
|
(90,994 |
) |
|
|
262,220 |
|
|
|
303,332 |
|
|
|
(12,904 |
) |
|
|
290,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
673,579 |
|
|
|
(1,969,280 |
) |
|
|
(1,295,701 |
) |
|
|
588,558 |
|
|
|
(1,912,341 |
) |
|
|
(1,323,783 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carry-forward |
|
|
213,911 |
|
|
|
|
|
|
|
213,911 |
|
|
|
368,053 |
|
|
|
|
|
|
|
368,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on valuation of available-for-sale securities |
|
|
15,509 |
|
|
|
(45,532 |
) |
|
|
(30,023 |
) |
|
|
40,404 |
|
|
|
(169,366 |
) |
|
|
(128,962 |
) |
Defined benefit plan actuarial losses |
|
|
64,147 |
|
|
|
|
|
|
|
64,147 |
|
|
|
50,590 |
|
|
|
|
|
|
|
50,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79,656 |
|
|
|
(45,532 |
) |
|
|
34,124 |
|
|
|
90,994 |
|
|
|
(169,366 |
) |
|
|
(78,372 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
967,146 |
|
|
|
(2,014,812 |
) |
|
|
(1,047,666 |
) |
|
|
1,047,605 |
|
|
|
(2,081,707 |
) |
|
|
(1,034,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
36. Earnings per Share
Basic and diluted earnings per share for the years ended December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won except per share information) |
|
2014 |
|
|
2013 |
|
Profit for the period |
|
₩ |
1,138,958 |
|
|
|
1,582,596 |
|
Interests of hybrid bonds |
|
|
(33,049 |
) |
|
|
(18,314 |
) |
Weighted-average number of common shares outstanding(* 1) |
|
|
79,801,539 |
|
|
|
78,009,654 |
|
Basic and diluted earnings per share |
|
|
13,858 |
|
|
|
20,052 |
|
(*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
(in share) |
|
2014 |
|
|
2013 |
|
Total number of common shares issued |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Weighted-average number of treasury shares |
|
|
(7,385,296 |
) |
|
|
(9,177,181 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding |
|
|
79,801,539 |
|
|
|
78,009,654 |
|
|
|
|
|
|
|
|
|
|
Since there were no potential shares of common stock which had dilutive effects as of December 31, 2014 and 2013, diluted
earnings per share is equal to basic earnings per share.
75
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
37. Related Party Transactions
(a) |
Significant transactions with related companies for the years ended December 31, 2014 and 2013 were as follows: |
|
1) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and others |
|
|
Purchase and others |
|
(in millions of Won) |
|
Sales |
|
|
Others |
|
|
Total |
|
|
Purchase of material |
|
|
Purchase of fixed assets |
|
|
Outsourced processing cost |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
16,439 |
|
|
|
3,421 |
|
|
|
19,860 |
|
|
|
3,042 |
|
|
|
2,235,798 |
|
|
|
5,855 |
|
|
|
9,242 |
|
|
|
2,253,937 |
|
POSCO Processing & Service |
|
|
987,424 |
|
|
|
8 |
|
|
|
987,432 |
|
|
|
1,215,510 |
|
|
|
|
|
|
|
|
|
|
|
805 |
|
|
|
1,216,315 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
472,353 |
|
|
|
25 |
|
|
|
472,378 |
|
|
|
|
|
|
|
|
|
|
|
10,648 |
|
|
|
98 |
|
|
|
10,746 |
|
POSCO Plant Engineering Co., Ltd. |
|
|
2,324 |
|
|
|
19 |
|
|
|
2,343 |
|
|
|
1,499 |
|
|
|
67,081 |
|
|
|
13,733 |
|
|
|
2,492 |
|
|
|
84,805 |
|
POSCO ICT |
|
|
1,210 |
|
|
|
195 |
|
|
|
1,405 |
|
|
|
679 |
|
|
|
279,660 |
|
|
|
31,231 |
|
|
|
157,126 |
|
|
|
468,696 |
|
POSMATE |
|
|
1,419 |
|
|
|
85 |
|
|
|
1,504 |
|
|
|
805 |
|
|
|
1,041 |
|
|
|
15,732 |
|
|
|
32,894 |
|
|
|
50,472 |
|
eNtoB Corporation |
|
|
|
|
|
|
10 |
|
|
|
10 |
|
|
|
234,352 |
|
|
|
13,241 |
|
|
|
149 |
|
|
|
20,079 |
|
|
|
267,821 |
|
POSCO CHEMTECH |
|
|
512,139 |
|
|
|
25,868 |
|
|
|
538,007 |
|
|
|
491,562 |
|
|
|
21,832 |
|
|
|
287,584 |
|
|
|
1,223 |
|
|
|
802,201 |
|
POSCO M-TECH |
|
|
11,122 |
|
|
|
94 |
|
|
|
11,216 |
|
|
|
158,709 |
|
|
|
2,336 |
|
|
|
220,986 |
|
|
|
141 |
|
|
|
382,172 |
|
POSCO ENERGY CO., LTD. |
|
|
104,209 |
|
|
|
915 |
|
|
|
105,124 |
|
|
|
|
|
|
|
5,178 |
|
|
|
|
|
|
|
7 |
|
|
|
5,185 |
|
POSCO TMC Co., Ltd. |
|
|
188,915 |
|
|
|
15 |
|
|
|
188,930 |
|
|
|
|
|
|
|
|
|
|
|
1,051 |
|
|
|
1,298 |
|
|
|
2,349 |
|
POSCO AST |
|
|
500,193 |
|
|
|
10 |
|
|
|
500,203 |
|
|
|
6,985 |
|
|
|
|
|
|
|
56,520 |
|
|
|
2,029 |
|
|
|
65,534 |
|
POSHIMETAL Co., Ltd. |
|
|
18,922 |
|
|
|
137 |
|
|
|
19,059 |
|
|
|
166,042 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
166,047 |
|
Daewoo International Corporation |
|
|
3,522,678 |
|
|
|
65 |
|
|
|
3,522,743 |
|
|
|
16,297 |
|
|
|
|
|
|
|
|
|
|
|
2,843 |
|
|
|
19,140 |
|
POSCO America Corporation |
|
|
596,681 |
|
|
|
1 |
|
|
|
596,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
339 |
|
|
|
339 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
POSCO Asia Co., Ltd. |
|
|
2,068,965 |
|
|
|
221 |
|
|
|
2,069,186 |
|
|
|
64,434 |
|
|
|
182 |
|
|
|
|
|
|
|
1,673 |
|
|
|
66,289 |
|
POSCO (Thailand) Company Limited |
|
|
56,210 |
|
|
|
56 |
|
|
|
56,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85 |
|
|
|
85 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
58,502 |
|
|
|
|
|
|
|
58,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
|
|
|
14 |
|
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
129,345 |
|
|
|
1 |
|
|
|
129,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
1,270,325 |
|
|
|
|
|
|
|
1,270,325 |
|
|
|
19,978 |
|
|
|
2 |
|
|
|
|
|
|
|
2,972 |
|
|
|
22,952 |
|
POSCO-India Pune |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Center. Pvt. Ltd. |
|
|
119,503 |
|
|
|
7 |
|
|
|
119,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
256,014 |
|
|
|
693 |
|
|
|
256,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
621 |
|
|
|
621 |
|
POSCO Maharashtra Steel Private Limited |
|
|
176,425 |
|
|
|
3,157 |
|
|
|
179,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
236 |
|
|
|
236 |
|
DAEWOO INTERNATIONAL SINGAPORE PTE. LTD. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
Others |
|
|
558,923 |
|
|
|
7,569 |
|
|
|
566,492 |
|
|
|
92,527 |
|
|
|
38,843 |
|
|
|
18,782 |
|
|
|
77,101 |
|
|
|
227,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,630,240 |
|
|
|
42,572 |
|
|
|
11,672,812 |
|
|
|
2,724,929 |
|
|
|
2,665,194 |
|
|
|
662,271 |
|
|
|
313,323 |
|
|
|
6,365,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
1,532 |
|
|
|
458 |
|
|
|
1,990 |
|
|
|
402,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
402,639 |
|
POSCO PLANTEC Co., Ltd. (formerly, Sungjin Geotec Co., Ltd.)(* 1) |
|
|
15,028 |
|
|
|
48 |
|
|
|
15,076 |
|
|
|
1,735 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
6,883 |
|
|
|
84,201 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
PT. POSMI Steel Indonesia |
|
|
6,538 |
|
|
|
|
|
|
|
6,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSK (Pinghu) Steel Processing Center Co., Ltd. |
|
|
3,786 |
|
|
|
|
|
|
|
3,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center Co., Ltd. |
|
|
19,906 |
|
|
|
|
|
|
|
19,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Steel Processing Center Co., Ltd.) |
|
|
6,429 |
|
|
|
|
|
|
|
6,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
546 |
|
|
|
165 |
|
|
|
711 |
|
|
|
3,937 |
|
|
|
|
|
|
|
|
|
|
|
176 |
|
|
|
4,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,765 |
|
|
|
671 |
|
|
|
54,436 |
|
|
|
475,073 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
7,059 |
|
|
|
557,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
11,684,005 |
|
|
|
43,243 |
|
|
|
11,727,248 |
|
|
|
3,200,002 |
|
|
|
2,730,996 |
|
|
|
672,052 |
|
|
|
320,382 |
|
|
|
6,923,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Sales and others are mainly consist of sales of steel products to subsidiaries, associates and joint ventures. These are priced on an arms length basis. |
(*2) |
Purchases and others are mainly consist of subsidiaries purchases of construction services and purchases of raw materials to manufacture steel products. These are priced on an arms length basis.
|
(*3) |
As of December 31, 2014, the Company provided guarantees to related parties (note 22). |
(*4) |
It is reclassified from associate to subsidiary due to the additional acquisition of its shares by the Company. |
(*5) |
Others mainly consist of service fees related to maintenance and repair of ERP System. |
76
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
2) |
For the year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and others |
|
|
Purchase and others |
|
(in millions of Won) |
|
Sales |
|
|
Others |
|
|
Total |
|
|
Purchase of material |
|
|
Purchase of fixed assets |
|
|
Outsourced processing cost |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
16,439 |
|
|
|
3,421 |
|
|
|
19,860 |
|
|
|
3,042 |
|
|
|
2,235,798 |
|
|
|
5,855 |
|
|
|
9,242 |
|
|
|
2,253,937 |
|
POSCO Processing & Service |
|
|
987,424 |
|
|
|
8 |
|
|
|
987,432 |
|
|
|
1,215,510 |
|
|
|
|
|
|
|
|
|
|
|
805 |
|
|
|
1,216,315 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
472,353 |
|
|
|
25 |
|
|
|
472,378 |
|
|
|
|
|
|
|
|
|
|
|
10,648 |
|
|
|
98 |
|
|
|
10,746 |
|
POSCO PLANTEC Co., Ltd.(* 1) |
|
|
2,324 |
|
|
|
19 |
|
|
|
2,343 |
|
|
|
1,499 |
|
|
|
67,081 |
|
|
|
13,733 |
|
|
|
2,492 |
|
|
|
84,805 |
|
POSCO ICT |
|
|
1,210 |
|
|
|
195 |
|
|
|
1,405 |
|
|
|
679 |
|
|
|
279,660 |
|
|
|
31,231 |
|
|
|
157,126 |
|
|
|
468,696 |
|
POSMATE |
|
|
1,419 |
|
|
|
85 |
|
|
|
1,504 |
|
|
|
805 |
|
|
|
1,041 |
|
|
|
15,732 |
|
|
|
32,894 |
|
|
|
50,472 |
|
eNtoB Corporation |
|
|
|
|
|
|
10 |
|
|
|
10 |
|
|
|
234,352 |
|
|
|
13,241 |
|
|
|
149 |
|
|
|
20,079 |
|
|
|
267,821 |
|
POSCO CHEMTECH |
|
|
512,139 |
|
|
|
25,868 |
|
|
|
538,007 |
|
|
|
491,562 |
|
|
|
21,832 |
|
|
|
287,584 |
|
|
|
1,223 |
|
|
|
802,201 |
|
POSCO M-TECH |
|
|
11,122 |
|
|
|
94 |
|
|
|
11,216 |
|
|
|
158,709 |
|
|
|
2,336 |
|
|
|
220,986 |
|
|
|
141 |
|
|
|
382,172 |
|
POSCO ENERGY CO., LTD. |
|
|
104,209 |
|
|
|
915 |
|
|
|
105,124 |
|
|
|
|
|
|
|
5,178 |
|
|
|
|
|
|
|
7 |
|
|
|
5,185 |
|
POSCO TMC Co., Ltd. |
|
|
188,915 |
|
|
|
15 |
|
|
|
188,930 |
|
|
|
|
|
|
|
|
|
|
|
1,051 |
|
|
|
1,298 |
|
|
|
2,349 |
|
POSCO AST |
|
|
500,193 |
|
|
|
10 |
|
|
|
500,203 |
|
|
|
6,985 |
|
|
|
|
|
|
|
56,520 |
|
|
|
2,029 |
|
|
|
65,534 |
|
POSHIMETAL Co., Ltd. |
|
|
18,922 |
|
|
|
137 |
|
|
|
19,059 |
|
|
|
166,042 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
166,047 |
|
Daewoo International Corporation |
|
|
3,522,678 |
|
|
|
65 |
|
|
|
3,522,743 |
|
|
|
16,297 |
|
|
|
|
|
|
|
|
|
|
|
2,843 |
|
|
|
19,140 |
|
POSCO America Corporation |
|
|
596,681 |
|
|
|
1 |
|
|
|
596,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
339 |
|
|
|
339 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144,329 |
|
POSCO Asia Co., Ltd. |
|
|
2,068,965 |
|
|
|
221 |
|
|
|
2,069,186 |
|
|
|
64,434 |
|
|
|
182 |
|
|
|
|
|
|
|
1,673 |
|
|
|
66,289 |
|
POSCO (Thailand) Company Limited |
|
|
56,210 |
|
|
|
56 |
|
|
|
56,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85 |
|
|
|
85 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
58,502 |
|
|
|
|
|
|
|
58,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
|
|
|
14 |
|
POSCO (Suzhou) Automotive Processing Center Co., Ltd. |
|
|
129,345 |
|
|
|
1 |
|
|
|
129,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
1,270,325 |
|
|
|
|
|
|
|
1,270,325 |
|
|
|
19,978 |
|
|
|
2 |
|
|
|
|
|
|
|
2,972 |
|
|
|
22,952 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
119,503 |
|
|
|
7 |
|
|
|
119,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
256,014 |
|
|
|
693 |
|
|
|
256,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
621 |
|
|
|
621 |
|
POSCO Maharashtra Steel Private Limited |
|
|
176,425 |
|
|
|
3,157 |
|
|
|
179,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
236 |
|
|
|
236 |
|
DAEWOO INTERNATIONAL SINGAPORE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,179 |
|
Others |
|
|
558,923 |
|
|
|
7,569 |
|
|
|
566,492 |
|
|
|
92,527 |
|
|
|
38,843 |
|
|
|
18,782 |
|
|
|
77,101 |
|
|
|
227,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,630,240 |
|
|
|
42,572 |
|
|
|
11,672,812 |
|
|
|
2,724,929 |
|
|
|
2,665,194 |
|
|
|
662,271 |
|
|
|
313,323 |
|
|
|
6,365,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
1,532 |
|
|
|
458 |
|
|
|
1,990 |
|
|
|
402,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
402,639 |
|
POSCO PLANTEC Co., Ltd. |
|
|
15,028 |
|
|
|
48 |
|
|
|
15,076 |
|
|
|
1,735 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
6,883 |
|
|
|
84,201 |
|
(formerly, Sungjin Geotec Co., Ltd.) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,762 |
|
PT. POSMI Steel Indonesia |
|
|
6,538 |
|
|
|
|
|
|
|
6,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSK (Pinghu) Steel Processing Center Co., Ltd. |
|
|
3,786 |
|
|
|
|
|
|
|
3,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center Co., Ltd. |
|
|
19,906 |
|
|
|
|
|
|
|
19,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO China Suzhou Processing Center Co., Ltd. (formerly, POSCO-SAMSUNG Suzhou Steel Processing Center Co., Ltd.) |
|
|
6,429 |
|
|
|
|
|
|
|
6,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
546 |
|
|
|
165 |
|
|
|
711 |
|
|
|
3,937 |
|
|
|
|
|
|
|
|
|
|
|
176 |
|
|
|
4,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,765 |
|
|
|
671 |
|
|
|
54,436 |
|
|
|
475,073 |
|
|
|
65,802 |
|
|
|
9,781 |
|
|
|
7,059 |
|
|
|
557,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
11,684,005 |
|
|
|
43,243 |
|
|
|
11,727,248 |
|
|
|
3,200,002 |
|
|
|
2,730,996 |
|
|
|
672,052 |
|
|
|
320,382 |
|
|
|
6,923,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Sungjin Geotec Co., Ltd. merged with POSCO Plant Engineering Co., Ltd. and changed its name to POSCO PLANTEC Co., Ltd. in 2013. |
77
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(b) |
The related account balances of significant transactions with related companies as of December 31, 2014 and 2013 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
Payables |
|
(in millions of Won) |
|
Trade accounts and notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts and notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
42 |
|
|
|
71,967 |
|
|
|
72,009 |
|
|
|
|
|
|
|
41,878 |
|
|
|
|
|
|
|
41,878 |
|
POSCO Processing & Service |
|
|
94,790 |
|
|
|
92 |
|
|
|
94,882 |
|
|
|
15,202 |
|
|
|
867 |
|
|
|
|
|
|
|
16,069 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,314 |
|
|
|
67 |
|
|
|
69,381 |
|
|
|
|
|
|
|
5 |
|
|
|
1,936 |
|
|
|
1,941 |
|
POSCO ICT |
|
|
13 |
|
|
|
103 |
|
|
|
116 |
|
|
|
920 |
|
|
|
70,823 |
|
|
|
5,425 |
|
|
|
77,168 |
|
POSMATE |
|
|
|
|
|
|
1,673 |
|
|
|
1,673 |
|
|
|
600 |
|
|
|
2,007 |
|
|
|
4,828 |
|
|
|
7,435 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,564 |
|
|
|
28,432 |
|
|
|
43 |
|
|
|
41,039 |
|
POSCO CHEMTECH |
|
|
49,456 |
|
|
|
4,283 |
|
|
|
53,739 |
|
|
|
57,610 |
|
|
|
9,890 |
|
|
|
17,864 |
|
|
|
85,364 |
|
POSCO M-TECH |
|
|
|
|
|
|
37 |
|
|
|
37 |
|
|
|
7,311 |
|
|
|
12,231 |
|
|
|
22,703 |
|
|
|
42,245 |
|
POSCO ENERGY CO., LTD. |
|
|
17,326 |
|
|
|
2,809 |
|
|
|
20,135 |
|
|
|
|
|
|
|
|
|
|
|
1,962 |
|
|
|
1,962 |
|
POSCO TMC Co., Ltd. |
|
|
27,429 |
|
|
|
30 |
|
|
|
27,459 |
|
|
|
|
|
|
|
117 |
|
|
|
115 |
|
|
|
232 |
|
POSCO AST |
|
|
44,281 |
|
|
|
54 |
|
|
|
44,335 |
|
|
|
|
|
|
|
2,458 |
|
|
|
3,364 |
|
|
|
5,822 |
|
POSHIMETAL Co., Ltd. |
|
|
1,269 |
|
|
|
14 |
|
|
|
1,283 |
|
|
|
|
|
|
|
12,846 |
|
|
|
|
|
|
|
12,846 |
|
Daewoo International Corporation |
|
|
164,029 |
|
|
|
3,178 |
|
|
|
167,207 |
|
|
|
8 |
|
|
|
210 |
|
|
|
1 |
|
|
|
219 |
|
POSCO Specialty Steel Co., Ltd. |
|
|
822 |
|
|
|
201,823 |
|
|
|
202,645 |
|
|
|
4,800 |
|
|
|
140 |
|
|
|
184 |
|
|
|
5,124 |
|
POSCO America Corporation |
|
|
57,164 |
|
|
|
|
|
|
|
57,164 |
|
|
|
|
|
|
|
1,511 |
|
|
|
|
|
|
|
1,511 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,534 |
|
|
|
|
|
|
|
4,534 |
|
POSCO Asia Co., Ltd. |
|
|
197,104 |
|
|
|
221 |
|
|
|
197,325 |
|
|
|
10,995 |
|
|
|
|
|
|
|
|
|
|
|
10,995 |
|
POSCO (Thailand) Company Limited |
|
|
7,407 |
|
|
|
266 |
|
|
|
7,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
14,748 |
|
|
|
41 |
|
|
|
14,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
42,692 |
|
|
|
89 |
|
|
|
42,781 |
|
|
|
344 |
|
|
|
1,552 |
|
|
|
|
|
|
|
1,896 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
6,401 |
|
|
|
5 |
|
|
|
6,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
96,800 |
|
|
|
|
|
|
|
96,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
364,899 |
|
|
|
7,714 |
|
|
|
372,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
126,474 |
|
|
|
56,788 |
|
|
|
183,262 |
|
|
|
7,239 |
|
|
|
54,727 |
|
|
|
1,545 |
|
|
|
63,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Specialty Steel Co., Ltd. |
|
|
1,382,460 |
|
|
|
351,254 |
|
|
|
1,733,714 |
|
|
|
117,593 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
421,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and jointventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
219 |
|
|
|
125 |
|
|
|
344 |
|
|
|
7,017 |
|
|
|
|
|
|
|
|
|
|
|
7,017 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
LLP POSUK Titanium |
|
|
|
|
|
|
4,235 |
|
|
|
4,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
258 |
|
|
|
18 |
|
|
|
276 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477 |
|
|
|
4,378 |
|
|
|
4,855 |
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
1,382,937 |
|
|
|
355,632 |
|
|
|
1,738,569 |
|
|
|
126,006 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
430,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
Payables |
|
(in millions of Won) |
|
Trade accounts and notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts and notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
₩ |
40 |
|
|
|
110,955 |
|
|
|
110,995 |
|
|
|
|
|
|
|
105,603 |
|
|
|
|
|
|
|
105,603 |
|
POSCO Processing & Service |
|
|
103,400 |
|
|
|
73 |
|
|
|
103,473 |
|
|
|
17,914 |
|
|
|
683 |
|
|
|
|
|
|
|
18,597 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
69,260 |
|
|
|
65 |
|
|
|
69,325 |
|
|
|
|
|
|
|
59 |
|
|
|
1,434 |
|
|
|
1,493 |
|
POSCO ICT |
|
|
75 |
|
|
|
123 |
|
|
|
198 |
|
|
|
|
|
|
|
51,247 |
|
|
|
|
|
|
|
51,247 |
|
POSMATE |
|
|
489 |
|
|
|
1,533 |
|
|
|
2,022 |
|
|
|
141 |
|
|
|
3,274 |
|
|
|
1,058 |
|
|
|
4,473 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,057 |
|
|
|
10,311 |
|
|
|
|
|
|
|
18,368 |
|
POSCO CHEMTECH |
|
|
46,943 |
|
|
|
4,313 |
|
|
|
51,256 |
|
|
|
35,829 |
|
|
|
6,983 |
|
|
|
8,663 |
|
|
|
51,475 |
|
POSCO M-TECH |
|
|
18 |
|
|
|
28 |
|
|
|
46 |
|
|
|
12,020 |
|
|
|
21,326 |
|
|
|
10,799 |
|
|
|
44,145 |
|
POSCO ENERGY CO., LTD. |
|
|
14,733 |
|
|
|
2,894 |
|
|
|
17,627 |
|
|
|
|
|
|
|
421 |
|
|
|
|
|
|
|
421 |
|
POSCO TMC Co., Ltd. |
|
|
20,510 |
|
|
|
26 |
|
|
|
20,536 |
|
|
|
|
|
|
|
16 |
|
|
|
50 |
|
|
|
66 |
|
POSCO AST |
|
|
85,501 |
|
|
|
53 |
|
|
|
85,554 |
|
|
|
|
|
|
|
3,004 |
|
|
|
5,238 |
|
|
|
8,242 |
|
POSHIMETAL Co., Ltd. |
|
|
1,721 |
|
|
|
12 |
|
|
|
1,733 |
|
|
|
|
|
|
|
12,624 |
|
|
|
|
|
|
|
12,624 |
|
Daewoo International Corporation |
|
|
148,383 |
|
|
|
878 |
|
|
|
149,261 |
|
|
|
9,319 |
|
|
|
|
|
|
|
|
|
|
|
9,319 |
|
POSCO America Corporation |
|
|
57,554 |
|
|
|
|
|
|
|
57,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,323 |
|
|
|
|
|
|
|
|
|
|
|
12,323 |
|
POSCO Asia Co., Ltd. |
|
|
134,602 |
|
|
|
142 |
|
|
|
134,744 |
|
|
|
2,063 |
|
|
|
|
|
|
|
|
|
|
|
2,063 |
|
POSCO (Thailand) Company Limited |
|
|
6,052 |
|
|
|
7 |
|
|
|
6,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
3,329 |
|
|
|
|
|
|
|
3,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO JAPAN Co., Ltd. |
|
|
73,992 |
|
|
|
|
|
|
|
73,992 |
|
|
|
862 |
|
|
|
108 |
|
|
|
1 |
|
|
|
971 |
|
POSCO-India Pune Processing Center. Pvt. Ltd. |
|
|
8,117 |
|
|
|
|
|
|
|
8,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
100,016 |
|
|
|
76 |
|
|
|
100,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
55,392 |
|
|
|
3,218 |
|
|
|
58,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
54,357 |
|
|
|
8,887 |
|
|
|
63,244 |
|
|
|
6,523 |
|
|
|
15,421 |
|
|
|
1,647 |
|
|
|
23,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
984,484 |
|
|
|
133,283 |
|
|
|
1,117,767 |
|
|
|
105,051 |
|
|
|
231,080 |
|
|
|
28,890 |
|
|
|
365,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and jointventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
140 |
|
|
|
40 |
|
|
|
180 |
|
|
|
16,669 |
|
|
|
|
|
|
|
|
|
|
|
16,669 |
|
POSCO PLANTEC Co., Ltd. (formerly, Sungjin Geotec Co., Ltd.) |
|
|
879 |
|
|
|
46 |
|
|
|
925 |
|
|
|
353 |
|
|
|
|
|
|
|
|
|
|
|
353 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
67 |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LLP POSUK Titanium |
|
|
|
|
|
|
4,066 |
|
|
|
4,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
17 |
|
|
|
17 |
|
|
|
319 |
|
|
|
2 |
|
|
|
|
|
|
|
321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,019 |
|
|
|
4,236 |
|
|
|
5,255 |
|
|
|
17,341 |
|
|
|
2 |
|
|
|
|
|
|
|
17,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
985,503 |
|
|
|
137,519 |
|
|
|
1,123,022 |
|
|
|
122,392 |
|
|
|
231,082 |
|
|
|
28,890 |
|
|
|
382,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
For the years ended December 31, 2014 and 2013, details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Short-term benefits |
|
₩ |
31,984 |
|
|
|
31,332 |
|
Long-term benefits |
|
|
12,387 |
|
|
|
8,004 |
|
Retirement benefits |
|
|
6,354 |
|
|
|
6,296 |
|
|
|
|
|
|
|
|
|
|
|
|
₩ |
50,725 |
|
|
|
45,632 |
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including non-standing directors), executive officials and fellow
officials who have significant influence and responsibilities in the Companys business and operations.
79
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
38. Commitments and Contingencies
(a) |
Contingent liabilities |
Contingent liabilities may develop in a way not initially expected.
Therefore, management continuously assesses contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for
an item previously dealt with as a contingent liability, a provision is recognized in the financial statements of the period in which the change in probability occurs (except in the extremely rare circumstances where no reliable estimate can be
made).
The management makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and
assumptions are based on the evaluation of current circumstances and appraisals with the supports of internal specialists or external consultants.
The management regularly analyzes current information about these matters and provides provisions for probable contingent losses including the
estimate of legal expense to resolve the matters. Internal and external lawyers are used for these assessments. In making the decision regarding the need for provisions, management considers whether the Company has an obligation as a result of a
past event, whether it is probable that an outflow or cash or other resources embodying economic benefits will be required to settle the obligation and the ability to make a reliable estimate of the amount of obligation.
The Company entered into long-term contracts to purchase iron ore, coal, nickel
and others. The contracts of iron ore and coal generally have terms of more than three years and the contracts of nickel have terms of more than one year. These contracts provide for periodic price adjustments based on the market price. As of
December 31, 2014, 137 million tons of iron ore and 32 million tons of coal remained to be purchased under such long-term contracts.
The Company entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of
LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.
As of December 31, 2014, the Company entered into commitments with Korea National Oil Corporation for long-term foreign currency
borrowings, which are limited up to the amount of USD 6.86 million, USD 6.58 million and USD 4.12 million. The borrowings are related to the exploration of gas hydrates in Aral Sea, Uzbekistan, the exploration of gas hydrates in
Namangan-Chust and the exploration of gas hydrates in Western Fergana-Chenavard, respectively. The repayment of the borrowings depends on the success of the projects. The Company is not liable for the repayment of full or part of the money borrowed
if the respective projects fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements.
80
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
(c) |
As of December 31, 2014, the Company has provided two blank checks to Korea Resources Corporation as collateral for long-term domestic borrowings, and has provided six blank promissory notes and three blank checks
to Korea National Oil Corporation as collateral for long-term foreign currency borrowings. |
(d) |
Litigation in progress |
1) |
Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation |
During the year ended
December 31, 2012, Nippon Steel & Sumitomo Metal Corporation filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO Japan Co., Ltd., a subsidiary of POSCO, to prohibit production and sales of grain oriented
electrical steel sheets using improperly acquired trade secrets and seeking compensation from the Company of ₩907.3 billion. Through trials to the year ended December 31, 2014, the Company submitted its responses that the Japan court did
not have jurisdiction on this lawsuit as it should be judged by Korean law and the Company developed grain oriented electrical steel sheets using the Companys own technologies. As of December 31, 2014, the court has not made any judgments
on this matter. Since the Company does not believe that it has any present obligation, the Company has not recorded any provision for this lawsuit as of December 31, 2014.
2) |
Other lawsuits and claims |
The Company is involved in 38 other lawsuits and claims for alleged
damages aggregating to ₩87.2 billion as defendant as of December 31, 2014, which arose in the ordinary course of business. The Company has recognized provisions amounting to ₩400 million for 1 lawsuit based on its reliable
estimate of outflow of resources. However, the Company has not recognized any provisions for other 38 lawsuits and claims since the Company believes that it does not have a present obligation as of December 31, 2014.
(e) |
The Company has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to the construction of new power plant by
POSCO Energy Co., Ltd. |
81
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
39. Cash Flows from Operating Activities
Changes in operating assets and liabilities for the years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Trade accounts and notes receivable, net |
|
₩ |
213,875 |
|
|
|
679,054 |
|
Other accounts receivable |
|
|
(84,958 |
) |
|
|
68,281 |
|
Advance payments |
|
|
(4,956 |
) |
|
|
1,162 |
|
Prepaid expenses |
|
|
(317 |
) |
|
|
18,502 |
|
Inventories |
|
|
136,875 |
|
|
|
860,472 |
|
Long-term guarantee deposits |
|
|
(297 |
) |
|
|
(616 |
) |
Other long-term assets |
|
|
|
|
|
|
(1,120 |
) |
Trade accounts payable and notes payable |
|
|
42,711 |
|
|
|
(242,871 |
) |
Other accounts payable |
|
|
(65,758 |
) |
|
|
(367,521 |
) |
Accrued expenses |
|
|
104,423 |
|
|
|
(119,505 |
) |
Advances received |
|
|
67,968 |
|
|
|
(23,575 |
) |
Withholdings |
|
|
2,513 |
|
|
|
(5,058 |
) |
Unearned revenue |
|
|
(385 |
) |
|
|
(4,427 |
) |
Other long-term liabilities |
|
|
8,109 |
|
|
|
(1,069 |
) |
Derivatives liabilities |
|
|
(36,964 |
) |
|
|
|
|
Payment severance benefits |
|
|
(84,600 |
) |
|
|
(70,170 |
) |
Plan assets |
|
|
(100,285 |
) |
|
|
(103,559 |
) |
|
|
|
|
|
|
|
|
|
|
|
₩ |
197,954 |
|
|
|
687,980 |
|
|
|
|
|
|
|
|
|
|
40. Non-Cash Transactions
Significant non-cash transactions for the years ended December 31, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2014 |
|
|
2013 |
|
Construction-in-progress transferred to other accounts |
|
₩ |
3,562,232 |
|
|
|
2,501,603 |
|
Acquisition of short-term financial statements through issuance of treasury stocks |
|
|
|
|
|
|
804,496 |
|
Financial guarantee liabilities |
|
|
7,730 |
|
|
|
20,812 |
|
Investment in subsidiaries transferred to assets held for sale |
|
|
468,443 |
|
|
|
1,304 |
|
Available-for-sale investment transferred to assets held for sale |
|
|
580,062 |
|
|
|
|
|
Investment in kind of property, plant and equipment |
|
|
558,915 |
|
|
|
|
|
82
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2014 and 2013, Continued
Notice to Readers
This report is annexed in relation to the audit of the separate financial statements as of December 31, 2014 and the review of internal accounting
control system pursuant to Article 2-3 of the Act on External Audit for Joint-stock Companies of the Republic of Korea
83
Agenda 2: Election of Directors
|
|
|
2-1: Election of Outside Directors |
[Description of the Proposal]
Pursuant to Article 382 of the Korean Commercial Act and Article 28 of the Companys Articles of Incorporation, we request that the Ordinary General
Meeting of Shareholders appoint Outside Directors of the Company.
|
Number of Outside Directors to be Elected: 3 Directors |
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Date of Birth |
|
Major Experience |
|
Transactions with
POSCO
over the last |
|
Relationships
with largest |
|
Term |
|
Recommended by |
|
|
three years |
|
shareholders |
|
Shin, Chae-Chul |
|
August 28, 1947 |
|
(Present) Outside director, POSCO
President, LG CNS President, IBM Korea |
|
None |
|
None |
|
3 Years |
|
Director Candidate Recommendation Committee |
|
|
|
|
|
|
|
|
|
|
Kim, Joo-Hyun |
|
October 11, 1952
Director Candidate Recommendation Committee |
|
(Present) Advisory, Hyundai Research Institute
(Present) Chairman of Sub-Committee of Economy, Presidential Committee for Unification Preparation
President & CEO, Hyundai Research Institute Head of Business
Strategy Division, Hyundai Research Institute |
|
None |
|
None |
|
3 Years |
|
|
|
|
|
|
|
|
|
|
|
Bahk, Byong-Won |
|
September 24, 1952 |
|
(Present) President, National Happiness Fund
Chairman of The Korea Federation of Banks Chairman of Woori
Finance Holdings Co., Ltd |
|
None |
|
None |
|
3 Years |
|
Director Candidate Recommendation Committee |
|
|
|
|
84
|
|
|
2-2: Election of Audit Committee Members |
[Description of the Proposal]
Pursuant to Article 415-2, 542-11 and 542-12 of the Korean Commercial Act and Article 48 of the Companys Articles of Incorporation, we request that the
Ordinary General Meeting of Shareholders appoint Audit Committee members of the Company.
|
Number of Audit Committee Members to be Elected: 1 Member |
|
|
|
|
|
|
|
|
|
|
|
Name |
|
Date of Birth |
|
Major Experience |
|
Transactions with
POSCO
over the last |
|
Relationships
with largest |
|
Term |
|
Recommended by |
|
|
three years |
|
shareholders |
|
Kim, Joo-Hyun |
|
October 11, 1952
Director Candidate Recommendation Committee |
|
(Present) Advisory, Hyundai Research Institute
(Present) Chairman of Sub-Committee of Economy, Presidential Committee for Unification Preparation
President & CEO, Hyundai Research Institute Head of Business
Strategy Division, Hyundai Research Institute |
|
None |
|
None |
|
3 Years |
|
|
|
|
|
85
|
|
|
2-3: Election of Inside Directors |
[Description of the Proposal]
Pursuant to Article 382 of the Korean Commercial Act and Article 28 of the Companys Articles of Incorporation, we request that the Ordinary General
Meeting of Shareholders appoint an Inside Directors of the Company.
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Number of Inside Director to be Elected: 3 Directors |
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Candidates(3 Directors) |
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Name |
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Date of Birth |
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Major Experience |
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Transactions with
POSCO
over the last |
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Relationships
with largest |
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Term |
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Recommended by |
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three years |
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shareholders |
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Kim, Jin-Il |
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February 1, 1953
Board of Directors |
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(Present) President and Representative Director, POSCO
CEO, POSCO CHEMTECH Senior Executive Vice President and Inside
Director, POSCO |
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None |
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None |
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2 Years |
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Lee, Young-Hoon |
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August 19, 1959
Board of Directors |
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(Present) Senior Executive Vice President and Inside Director, POSCO
Senior Executive Vice President and Inside Director, POSCO E&C
Executive Vice President, POSCO |
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None |
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None |
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2 Years |
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Oh, In-Hwan |
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September 15, 1958
Board of Directors |
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(Present) Executive Vice President, POSCO
Executive Vice President, POSCO P&S Senior Vice President,
POSCO |
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None |
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None |
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2 Years |
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86
Agenda 3: Approval of Limit of Total Remuneration for Directors
[Description of the Proposal]
Pursuant to Article 388 of the Korean Commercial Act and Article 36 of the Companys Articles of Incorporation, we request that the Ordinary General
Meeting of Shareholders approve Limit of the Total Remuneration for Directors in the 48th fiscal year.
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The Limit (to be approved) of the Total Remuneration in the 48th fiscal year: KRW 7.0 billion |
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The Limit (approved) of the Total Remuneration in the 47th fiscal year: KRW 7.0 billion |
87
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