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 201120. Capital SurplusCapital surplus as of December 31, 2012 and 2011 consists of the following:(In millions of won) 2012 2011Paid-in capital in excess of par value ₩ 61,848 61,143Revaluation surplus 594,262 594,262Other capital surplus 218,833 228,232₩ 874,943 883,63721. Other Capital Adjustments(1) Other capital adjustments as of December 31, 2012 and 2011 are summarized as follows:(In millions of won) 2012 2011Treasury shares ₩ (207,523) (207,523)Stock options 11,884 9,691Others - (38)₩ (195,639) (197,870)(2) Treasury sharesAs of December 31, 2012, the Controlling Company holds 16,812,505 treasury stocks of ₩ 207,523 millionfor the stability of the stock price and the treasury stocks are recorded as other capital adjustment.(3) Stock optionsThe Controlling Company has granted the stock options to the executives several times, and the way ofsettlement is subject to the Board of Directors’ decision at the time of exercise. The executives aregranted stock options conditional upon completing 2 years’ service from the grant date.(i) The terms and conditions of stock options as of December 31, 2012 are summarized as follows:(Won, Number of shares)Date of grantNumber of stocksto be issuedExercisable periodFebruary27, 2006March16, 2007March21, 2008March27, 2009March26, 2010March25, 2011March30, 20125,200 27,900 47,800 39,700 74,900 125,500 275,200February 27,2009 ~February 27,2016March 17,2010 ~March 16,2017March 21,2011 ~March 20,2018March 27,2012 ~March 26,2019March 26,2013 ~March 25,2020March 25,2014 ~March 24,2021March 30,2015 ~March 29,2022Exercise Price 33,200 50,200 121,200 73,000 90,100 65,700 66,800Estimated fair valueas of the grant date12,950 22,564 49,565 32,595 41,077 24,642 16,33763