LPL » Topics » 17. Fair Value of Financial Instruments

This excerpt taken from the LPL 20-F filed Jun 23, 2009.

Fair Value of Financial Instruments

The table below is a summary of fair value estimates as of December 31, 2007 and 2008, for financial instruments, as defined by SFAS No. 107, excluding short-term financial assets and liabilities and financial instruments recorded at fair value on a recurring basis, for which carrying amounts approximate fair value. The carrying amounts in the following table are recorded in the consolidated balance sheet under the indicated captions.

 

(in millions of Korean Won)    2007    2008
     Carrying
amount
   Estimated
fair value
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won) 3,453,488    3,234,667    3,513,209    3,382,295

Long-term other payables

   (Won) 31,046    31,046    531,757    536,435

 

21. Related Party Transactions

In the normal course of business, the Company purchases raw materials from, and sells its products to, stockholder companies and other companies within LG Group and Philips Group. LG Corp., the major stockholder of LG Electronics, is the holding company of LG Group. Other related parties of the Company within LG Group include LG International Corp., LG Chem, Ltd., LG Micron Ltd. and LG CNS Co., Ltd.

This excerpt taken from the LPL 6-K filed Nov 12, 2008.

Fair Value of Financial Instruments

The table below is a summary of fair value estimates as of December 31, 2007 and September 30, 2008, for financial instruments, as defined by SFAS No. 107, excluding short-term financial assets and liabilities, for which carrying amounts approximate fair value, and excluding financial instruments recorded at fair value on a recurring basis. The carrying amounts in the following table are recorded in the consolidated balance sheet under the indicated captions.

 

(in millions of Korean Won)    2007    2008
     Carrying
amount
   Estimated
fair value
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won) 3,453,488    3,234,667    3,696,165    3,298,257

Long-term other accounts payable

   (Won) 31,046    31,046    51,634    50,045

In accordance with SFAS No. 107, the Company has not included assets and liabilities that are not financial instruments in this disclosure.


Table of Contents

LG DISPLAY CO., LTD. (Formerly, LG.Philips LCD Co., Ltd.) AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements

(Unaudited)

September 30, 2007 and 2008

 

17. Segment Information

The Company has one reportable business segment, the manufacture and sale of TFT-LCDs and other flat panel displays. The following is a summary of operations by region based on the location of the customer, where the Company’s products are shipped to, for the three-month and nine-month periods ended September 30, 2007 and 2008.

This excerpt taken from the LPL 6-K filed Aug 14, 2008.

Fair Value of Financial Instruments

The table below is a summary of fair value estimates as of December 31, 2007 and June 30, 2008, for financial instruments, as defined by SFAS No. 107, excluding short-term financial assets and liabilities, for which carrying amounts approximate fair value, and excluding financial instruments recorded at fair value on a recurring basis. The carrying amounts in the following table are recorded in the consolidated balance sheet under the indicated captions.

 

(in millions of Korean Won)    2007    2008
     Carrying
amount
   Estimated
fair value
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won) 3,453,488    3,234,667    3,530,873    3,210,798

Long-term other accounts payable

   (Won) 31,046    31,046    52,350    50,995

In accordance with SFAS No. 107, the Company has not included assets and liabilities that are not financial instruments in this disclosure.


Table of Contents

LG DISPLAY CO., LTD. (Formerly, LG.Philips LCD Co., Ltd.) AND SUBSIDIARIES

Notes to Interim Consolidated Financial Statements

(Unaudited)

June 30, 2007 and 2008

 

17. Segment Information

The Company has one reportable business segment, the manufacture and sale of TFT-LCDs and other flat panel displays. The following is a summary of operations by country based on the location of the customer, where the Company’s products are shipped to, as of and for the three-month and six-month periods ended June 30, 2007 and 2008.

This excerpt taken from the LPL 20-F filed Apr 16, 2008.

17. Fair Value of Financial Instruments

The estimated fair values of the Company’s other financial instruments are as follows:

 

(in millions of Korean Won)    2006  
     Carrying amount     Estimated fair value  

Long-term debt including the current portion

   (Won) 3,855,737     (Won) 3,892,809  

Derivative instruments

     27,864       27,864  
(in millions of Korean Won)    2007  
     Carrying amount     Estimated fair value  

Long-term debt including the current portion

   (Won) 3,453,488     (Won) 3,234,667  

Derivative instruments

     (37,960 )     (37,960 )

 

F-30


LG Display Co., Ltd. (formerly, LG.Philips LCD Co., Ltd.)

Notes to Consolidated Financial Statements—(Continued)

December 31, 2005, 2006 and 2007

 

This excerpt taken from the LPL 20-F filed Apr 11, 2007.

17. Fair Value of Financial Instruments

The estimated fair values of the Company’s other financial instruments are as follows:

 

(in millions of Korean Won)

   2005
   Notional
amount
   Carrying
amount
   Estimated fair
value

Long-term debt including the current portion

   (Won) —      (Won) 3,293,493    (Won) 3,311,112

Derivative instruments

     32,964      30,160      30,160

(in millions of Korean Won)

   2006
   Notional
amount
   Carrying
amount
   Estimated fair
value

Long-term debt including the current portion

   (Won) —      (Won) 3,855,737    (Won) 3,892,809

Derivative instruments

     31,758      27,864      27,864

 

F-29


Table of Contents

LG. Philips LCD Co., Ltd.

Notes to Consolidated Financial Statements—(Continued)

December 31, 2004, 2005 and 2006

 

This excerpt taken from the LPL 20-F filed Dec 7, 2006.

17. Fair Value of Financial Instruments

The estimated fair values of the Company’s other financial instruments are as follows:

 

      2004

(in millions of Korean Won)

   Notional
amount
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won)—      (Won)2,206,143    (Won)2,191,857

Derivative instruments

   72,696    69,443    69,443
      2005

(in millions of Korean Won)

   Notional
amount
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won)—      (Won)3,293,493    (Won)3,311,112

Derivative instruments

   32,964    30,160    30,160
This excerpt taken from the LPL 20-F filed Jun 21, 2006.

17. Fair Value of Financial Instruments

The estimated fair values of the Company’s other financial instruments are as follows:

 

      2004

(in millions of Korean Won)

   Notional
amount
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won)—      (Won)2,206,143    (Won)2,191,857

Derivative instruments

   72,696    69,443    69,443
      2005

(in millions of Korean Won)

   Notional
amount
   Carrying
amount
   Estimated
fair value

Long-term debt including the current portion

   (Won)—      (Won)3,293,493    (Won)3,311,112

Derivative instruments

   32,964    30,160    30,160
This excerpt taken from the LPL 6-K filed Mar 31, 2006.

Fair Value of Financial Instruments

The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The carrying values of cash and cash equivalents, time deposits, trade and notes receivable, short-term borrowings, notes and accounts payable and accrued and other liabilities, approximate fair value, due to their short term maturities. The Company estimates the fair values of its long-term debt, including the current portion, based on either the market value or the discounted amounts of future cash flows using the Company’s current incremental debt rates for similar liabilities. The fair values of derivative instruments are estimated based on market quotations.

This excerpt taken from the LPL 20-F filed Apr 11, 2005.

16. Fair Value of Financial Instruments

 

The estimated fair values of the Company’s other financial instruments are as follows:

 

     2003

(in millions of Korean won)


   Notional
amount


   Carrying
amount


  

Estimated

fair value


Long-term debt including the current portion

   (Won) —      (Won) 1,785,067    (Won) 1,698,579

Derivative instruments

     3,165      3,004      3,004
     2004

(in millions of Korean Won)


   Notional
amount


   Carrying
amount


  

Estimated

fair value


Long-term debt including the current portion

   (Won) —      (Won) 2,206,143    (Won) 2,191,857

Derivative instruments

     72,696      69,443      69,443

 

These excerpts taken from the LPL 6-K filed Apr 1, 2005.

16. Fair Value of Financial Instruments

 

The estimated fair values of the Company’s other financial instruments are as follows:

 

     2003

(in millions of Korean won)

 

   Notional
amount


   Carrying
amount


   Estimated fair
value


Long-term debt including the current portion

   (Won) —      (Won) 1,785,067    (Won) 1,698,579

Derivative instruments

     3,165      3,004      3,004
     2004

(in millions of Korean Won)

 

   Notional
amount


   Carrying
amount


   Estimated fair
value


Long-term debt including the current portion

   (Won) —      (Won) 2,206,143    (Won) 2,191,857

Derivative instruments

     72,696      69,443      69,443

 

F-28


Table of Contents

LG. Philips LCD Co., Ltd.

Notes to Consolidated Financial Statements

December 31, 2002, 2003 and 2004

 

16. Fair Value of Financial Instruments

 

The estimated fair values of the Company’s other financial instruments are as follows:

 

     2003

(in millions of Korean won)

 

   Notional
amount


   Carrying
amount


   Estimated fair
value


Long-term debt including the current portion

   (Won) —      (Won) 1,785,067    (Won) 1,698,579

Derivative instruments

     3,165      3,004      3,004
     2004

(in millions of Korean Won)

 

   Notional
amount


   Carrying
amount


   Estimated fair
value


Long-term debt including the current portion

   (Won) —      (Won) 2,206,143    (Won) 2,191,857

Derivative instruments

     72,696      69,443      69,443

 

F-28


Table of Contents

LG. Philips LCD Co., Ltd.

Notes to Consolidated Financial Statements

December 31, 2002, 2003 and 2004

 

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