Samsung 2012 Annual Report Download - page 45

16. Debentures
Debentures as of December 31, 2012 and 2011, consist of the following:
(In millions of Korean won)
2012 2011
Korean won denominated debenture(A) ￦697,822 ￦1,197,079
Foreign currency denominated debenture(B) 1,131,552 83,045
Total ￦1,829,374 ￦1,280,124
(A) Korean won denominated debentures as of December 31, 2012 and 2011, consist of the following:
(In millions of Korean won)
Issue Date Due Date
Annual Interest
Rates (%)
as of December 31,
2011
2012 2011
Unsecured debentures 2010.6.17 2013.6.17 4.7 500,000 500,000
Unsecured debentures 2011.11.17 2014.11.17 4.1 500,000 500,000
Unsecured debentures 2011.11.17 2016.11.17 4.2 200,000 200,000
Less: Current portion (500,000) -
Less: Discounts (2,178) (2,921)
Total 697,822 1,197,079
Samsung Display, SEC’s domestic subsidiary, issued Korean won denominated debentures as above table.
(B) Debentures denominated in foreign currencies as of December 31, 2012 and 2011, consist of the following:
(In millions of Korean won)
Issue Date Due Date
Annual Interest
Rates (%)
as of December 31,
2012
2012 2011
US dollar denominated straight bonds (*1) 1997.10.2 2027.10.1 7.7 80,333
(US$75 million)
92,264
(US$80 million)
US dollar denominated unsecured bonds (*2) 2012.4.10 2017.4.10 1.8 1,071,100
(US$ 1,000 million) -
Less: Current portion (5,150) (5,536)
Less: Discounts (14,731) (3,683)
Total ￦1,131,552 ￦83,045
(*1) US dollar straight bonds are repaid for twenty years after a ten-year grace period from the date of issuance. Interest is paid semiannually.
(*2)
Samsung Electronics America issued dollar denominated unsecured bonds. Repayment of these debentures is due on the date of maturity and interest is paid semi-
annually.
(C) Maturities of debentures outstanding as of December 31, 2012 are as follows:
(In millions of Korean won)
For the Years Ending December 31 Debentures
2013 ￦505,356
2014 505,356
2015 5,356
2016 205,356
Thereafter 1,130,009
Total ￦2,351,433
17. Retirement Benet Liabilities
(A) Defined benefit liability recognized on the statements of finance position
as of December 31, 2012 and 2011, is as follows:
(In millions of Korean won)
2012 2011
Present value of funded dened benet
obligation ￦4,593,284 ￦3,283,629
Present value of unfunded dened
benet 76,183 258,711
Subtotal 4,669,467 3,542,340
Fair value of plan assets (2,939,528) (2,423,152)
Total ￦1,729,939 ￦1,119,188
(B) The amounts recognized in the income statements for the years ended
December 31, 2012 and 2011, are as follows:
(In millions of Korean won)
2012 2011
Current service cost ￦670,123 ￦508,958
Interest cost 58,591 39,901
The eect of any settlement or
curtailment 8,033 11,941
￦736,747 ￦560,800
(C) The amounts recognized as cost of defined contribution plan for the
years ended December 31, 2012 and 2011, are ￦31,676 million and ￦23,296
million, respectively.
(D) Remeasurement impact recognized as other comprehensive income for
the years ended December 31, 2012 and 2011, are as follows:
(In millions of Korean won)
2012 2011
Remeasurement impact before income
tax ￦657,804 ￦508,928
Income tax eect (153,684) (123,714)
Remeasurement impact after income
tax ￦504,120 ￦385,214
(E) The pension expenses related to defined-benefit plans recognized in the
statement of income for the years ended December 31, 2012 and 2011, are
allocated to the following accounts:
(In millions of Korean won)
2012 2011
Cost of sales ￦291,355 ￦247,908
Selling, general and administrative
expenses 185,125 121,213
Research and development expenses 260,267 191,679
￦736,747 ￦560,800
8786
(F) Changes in the carrying amount of defined benefit obligations for the
years ended December 31, 2012 and 2011, are as follows:
(In millions of Korean won)
2012 2011
Balance at the beginning of the year ￦3,542,340 ￦2,621,192
Current service cost 670,123 508,958
Interest cost 194,625 160,605
Remeasurement :
- Loss from change in demographic
assumptions 81,587 -
- Loss from change in nancial
assumptions 473,488 291,946
- Others 55,396 176,829
Benets paid (301,444) (256,261)
Foreign exchange (22,028) 18,591
Others (24,620) 20,480
Balance at the end of the year ￦4,669,467 ￦3,542,340
(G) The movement in the fair value of plan assets for the years ended
December 31, 2012 and 2011, are as follows:
(In millions of Korean won)
2012 2011
Balance at the beginning of the year ￦2,423,152 ￦1,797,706
Expected return on plan assets 136,034 120,704
Remeasurement factor of plan assets (47,333) (40,153)
Contributions by the employer 595,420 555,815
Benets paid (155,000) (72,179)
Foreign exchange (8,812) (92)
Others (3,933) 61,351
Balance at the end of the year ￦2,939,528 ￦2,423,152
Expected contributions to retirement benet plans for the year ending December
31, 2013, are ￦947,072 million.
(H) The principal actuarial assumptions as of December 31, 2012 and 2011
are as follows:
(In %)
2012 2011
Discount rate 3.7 ~ 7.0 4.9 ~ 7.5
Future salary increases
(including ination) 2.5 ~ 9.0 2.6 ~ 9.9
The expected return on plan assets is based on the expected return multiplied
with the respective percentage weight of the market-related value of plan assets.
The expected return is dened on a uniform basis, reecting long-term historical
returns, current market conditions and strategic asset allocation.