Siemens 2005 Annual Report Download - page 188

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Other postretirement benefits: Plan assets
The following table shows the change in plan assets for fiscal 2005 and 2004:
Other postretirement benefits: Components of net periodic benefit cost
The components of the net periodic benefit cost for other postretirement benefits for the years
ended September 30, 2005 and 2004 are as follows:
Other postretirement benefits: Assumptions used in the calculation of the APBO and net
periodic benefit cost
Discount rates and other key assumptions used for transition payments in Germany are the same
as those utilized for domestic pension benefit plans.
The weighted-average assumptions used in calculating the actuarial values for the postretire-
ment healthcare and life insurance benefits, primarily in the U.S., are as follows:
Management’s discussion and analysis
September 30, 2005 September 30, 2004
Total Domestic Foreign Total Domestic Foreign
Change in plan assets
Fair value of plan assets at beginning of year 5 – 5 3 – 3
Employer contributions 31 – 31 32 – 32
Plan participant’s contributions 2 – 2 2 – 2
Benefits paid (35) – (35) (32) – (32)
Fair value of plan assets at year end 3 – 3 5 – 5
Year ended September 30, 2005 Year ended September 30, 2004
Total Domestic Foreign Total Domestic Foreign
Service cost 26 14 12 44 17 27
Interest cost 52 23 29 60 26 34
Amortization of:
Unrecognized prior service benefits (10) – (10) (7) – (7)
Unrecognized net (gains)/losses (19) (15) (4) (10) (12) 2
Net gain due to settlements and curtailments (4) – (4) (3) – (3)
Net periodic benefit cost 45 22 23 84 31 53
Year ended September 30,
2005 2004
Discount rate 5.25% 6.5%
Medical trend rates (initial/ultimate /year):
Medicare ineligible pre-65 9%/5%/2010 10%/5%/2010
Medicare eligible post-65 9%/5%/2010 10%/5%/2010
Fixed dollar benefit 4.5% 4.5%
Dental trend rates (initial/ultimate/year) 6%/5%/2021 6%/5%/2021