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, Continued(5) Movements in plan assets for the years ended December 31, 2012 and 2011 are as follows:(In millions of won) 2012 2011Balance at beginning ₩ 628,905 623,218Expected return on plan assets 33,578 38,468Transfer to related parties (65) (73)Contributions paid into the plan 18,089 18,126Actuarial gains 2,586 15,157Benefits paid by the plan (27,826) (34,001)Others (34,066) (31,990)Ending balance ₩ 621,201 628,905(*1) Others include effect of changes in the scope of consolidation and exchange rate.The actual returns on plan assets for the years ended December 31, 2012 and 2011 are ₩ 36,164 millionand ₩ 53,625 million, respectively.(6) Principal actuarial assumptions at the reporting date are as follows:2012 2011Discount rate 4.50~8.50% 5.30~7.00%Expected return on plan assets 3.70~8.00% 4.50~6.13%Future salary increases 2.50~8.00% 2.50~8.00%(7) Details of compositions of plan assets as of December 31, 2012 and 2011 are summarized as follows:(In millions of won) 2012 2011Equity securities ₩ 259,033 252,658Government and public bonds 266,857 256,305Investment property 12,080 31,576Trust assets 83,231 88,366₩ 621,201 628,905The expected rates of return on plan assets are determined considering applicable expected rate of returnon plan assets under current investment policy. The expected rates of return on debt securities are basedon redemption yields at end of the reporting period. The expected rates of return on equity securities andother assets reflect historical market return data by asset category.60