Siemens 2005 Annual Report Download - page 177

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Pension benefits: Pension obligations and funded status
A reconciliation of the funded status of the principal pension benefit plans to the amounts recog-
nized in the Consolidated Balance Sheets is as follows:
The measurement date of the PBO and fair value of plan assets of the Company’s domestic
pension benefit plans is September 30, and either September 30 or June 30 for the majority of its
foreign plans. For plans with a measurement date of June 30, the actual investment return of the
plan assets relate to the period from July 1, of the prior fiscal year, until June 30 of the current fis-
cal year.
Notes to Consolidated Financial Statements
Consolidated Financial Statements Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
September 30, 2005 September 30, 2004
Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets 21,479 14,349 7,130 17,708 11,965 5,743
Projected benefit obligation (PBO) 24,977 15,932 9,045 20,794 13,851 6,943
Funded status(1) (3,498) (1,583) (1,915) (3,086) (1,886) (1,200)
Germany (1,583) (1,886)
U.S. (858) (392)
U.K. (779) (537)
Other (278) (271)
Unrecognized net losses(2) 11,835 9,198 2,637 10,419 8,625 1,794
Unrecognized prior service cost (benefit) (285) (270) (15) (219) (289) 70
Net amount recognized 8,052 7,345 707 7,114 6,450 664
Amounts recognized in the Consolidated
Balance Sheets consist of:
Prepaid pension assets 166 – 166 442 – 442
Accrued pension liability (2,749) (1,504) (1,245) (2,391) (1,792) (599)
Intangible assets 62 – 62 303 289 14
Accumulated other comprehensive loss 10,573 8,849 1,724 8,760 7,953 807
Net amount recognized 8,052 7,345 707 7,114 6,450 664
(1) Funded status: The funded status shows the surplus/(deficit) of the PBO relative to the plan assets as of the measurement date, and, where
applicable, fundings between the measurement date and the balance sheet date. The PBO is calculated based on the projected or the tradi-
tional unit credit method and reflects the net present value as of the measurement date of the accumulated pension entitlements of active
employees, former employees with vested rights and of retirees and their surviving dependents with consideration of future compensation
and pension increases.
(2) Unrecognized net losses: The NPPC is determined at the beginning of the relevant measurement period based on assumptions for the dis-
count rate, compensation increase rate and pension progression rate as well as the long-term rate of return on plan assets. The cumulative
effect of differences between the actual experience and the assumed assumptions and changes in the assumptions are disclosed in the line
item unrecognized net losses.