Siemens 2006 Annual Report Download - page 203

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts) 199
Other postretirement benefits: Benefit payments
The following overview comprises benefit payments for other postretirement benefits paid out
of the principal other defined benefit postretirement plans during the years ended September
30, 2006 and 2005, and expected pension payments for the next five years and in the aggre-
gate for the five years thereafter (undiscounted):
Since the benefit obligations for other postretirement benefits are generally not funded,
such payments will impact the current operating cash flow of the Company.
22 Other accruals and provisions
The Company is subject to asset retirement obligations related to certain tangible long-
lived assets. Such asset retirement obligations are primarily attributable to environmental
clean-up costs which amounted to €501, and €499, respectively, as of September 30, 2006 and
2005 (thereof non-current portion of €478, and €461, respectively) and to costs primarily asso-
ciated with the removal of leasehold improvements at the end of the lease term amounting to
€46, and €43, respectively as of September 30, 2006 and 2005 (thereof non-current portion of
€31 and €38, respectively).
Environmental clean-up costs are mainly related to remediation and environmental pro-
tection liabilities which have been accrued for the estimated costs of decommissioning facili-
ties for the production of uranium and mixed-oxide fuel elements in Hanau, Germany (Hanau
facilities), as well as in Karlstein, Germany (Karlstein facilities). According to the German
Atomic Energy Act, when such a facility is closed, the resulting radioactive waste must be
collected and delivered to a government-developed final storage facility. In this regard, the
Company has developed a plan to decommission the Hanau and Karlstein facilities in the
following steps: clean-out, decontamination and disassembly of equipment and installations,
Notes to Consolidated Financial Statements
Total Domestic Foreign
Payments for other postretirement benefits
2005 55 20 35
2006 67 29 38
Expected payments for other postretirement benefits
2007 52 28 24
2008 63 40 23
2009 66 42 24
2010 55 32 23
2011 58 35 23
2012– 2016 367 253 114
September 30,
2006 2005
Product warranties 741 796
Asset retirement obligations 509 499
Deferred income 326 324
Other long-term accruals 2,482 3,409
4,058 5,028