DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 201117. Employee Benefits(1) Defined benefit liabilities as of December 31, 2012 and 2011 are summarized as follows:(In millions of won) 2012 2011Present value of defined benefit obligations ₩ 929,901 887,259Fair value of plan assets (621,201) (628,905)Contribution to National Pension Plan (1,437) (1,536)Defined benefit liabilities ₩ 307,263 256,818(2) Net expenses recognized in profit or loss for the years ended December 31, 2012 and 2011 aresummarized as follows:(In millions of won) 2012 2011Current service costs ₩ 55,199 43,264Interests 41,998 39,736Expected return on plan assets (33,578) (38,468)₩ 63,619 44,532(3) Classification of expense related to the retirement benefit related to defined benefit plan for the yearsended December 31, 2012 and 2011 are summarized as follows:(In millions of won) 2012 2011Cost of sales ₩ 59,001 42,110Selling, general and administrative expense 4,618 2,422₩ 63,619 44,532(4) Movements in defined benefit obligations for the years ended December 31, 2012 and 2011 are asfollows:(In millions of won) 2012 2011Beginning balance ₩ 887,259 829,938Current service costs 55,199 43,264Transfer-in from related parties 2,681 367Transfer to related parties (882) (211)Interests 41,998 39,736Actuarial losses 14,409 82,187Benefit paid (54,358) (54,054)Contributions by plan participants 6 -Others (*1) (16,411) (53,968)Ending balance ₩ 929,901 887,259(*1) Others include effect of changes in the scope of consolidation and exchange rate.59