Siemens 2006 Annual Report Download - page 195

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts) 191
In fiscal 2006, the Company merged a defined contribution plan with a defined benefit
plan at a subsidiary in Switzerland. As a result of the merger, the benefits of the defined
contribution plan were harmonized with those of the defined benefit plan. Accordingly, the
PBO and plan assets of the newly merged plan increased. Such amounts are included in the
items “Amendments and other” and “Acquisitions and other” in the preceding two tables.
Pension benefits: Recognition of an Additional Minimum Liability (AML)
The total ABO of the principal pension benefit plans amounted to €25,316 and €24,045, as of
September 30, 2006 and 2005, respectively.
For fiscal 2006 and 2005, the PBO, ABO and fair value of plan assets for the principal pen-
sion benefit plans whose ABO exceeded the fair value of plan assets at the measurement date
were as follows:
The underfunded ABO of €1,991 (the Minimum Liability) was recorded as an accrued pen-
sion liability. Subsequent to the measurement date, the accrued pension liability was reduced
by cash contributions in the U.S. and Switzerland of €9. Including a pension liability of €57 for
principal pension benefit plans whose ABO was not underfunded at their measurement date
and resulting from recognized liabilities exceeding the Minimum Liability for plans with an
underfunding of the ABO, the total pension liability for the principal pension benefit plans as
of September 30, 2006 totaled €2,039.
Excluding the AML adjustment, a net prepaid pension asset of €7,239 exists for the Compa-
ny’s principal pension benefit plans, primarily related to the transfer of Infineon shares to the
domestic pension plans in fiscal 2001 and from the supplemental funding of the domestic
pension plans in the prior years. This amount together with the underfunded ABO of €1,991,
resulted in an AML adjustment of €9,230. Of this amount, €9,122 (€5,750 net of tax) was record-
ed in AOCI as a separate component of shareholders’ equity and €108 was recorded as an
intangible asset.
Notes to Consolidated Financial Statements
September 30, 2006 September 30, 2005
Total Domestic Foreign Total Domestic Foreign
Projected benefit obligation 22,966 15,935 7,031 24,569 15,932 8,637
Germany 15,935 15,932
U.S. 950 3,881
U.K. 3,354 3,098
Other 2,727 1,658
Accumulated benefit obligation 22,286 15,870 6,416 23,686 15,853 7,833
Germany 15,870 15,853
U.S. 834 3,476
U.K. 2,958 2,749
Other 2,624 1,608
Fair value of plan assets 20,295 14,581 5,714 20,935 14,349 6,586
Germany 14,581 14,349
U.S. 605 2,973
U.K. 2,708 2,253
Other 2,401 1,360
Underfunding of accumulated benefit obligation (1,991) (1,289) (702) (2,751) (1,504) (1,247)
Germany (1,289) (1,504)
U.S. (229) (503)
U.K. (250) (496)
Other (223) (248)