Siemens 2007 Annual Report Download - page 251

Notes to Consolidated Financial Statements 251
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
In fi scal 2007, Siemens redeemed the outstanding amount of €991 of the 5.5 %
€-bond and the outstanding amount of the 2.5% CHF-bond (approximately €155).
In connection with the acquisition of Flender Holding GmbH, Germany, in fi scal
2005, Siemens assumed a €250, 11% senior note due 2010, of which the Company
repurchased approximately €194 until September 30, 2006. In June 2007, the Com-
pany exercised its call option in accordance with the indenture agreement and
redeemed all remaining notes at 105.50% of the principal amount of the notes
together with any accrued and unpaid interest. The redemption was settled on
August 1, 2007.
As of September 30, 2007, the aggregate amounts of indebtedness maturing
during the next fi ve years and thereafter are as follows (excluding fi nance leases
which are disclosed separately):
Convertible notes
Since fi scal 2003, Siemens maintained approximately €2.5 billion of convertible
notes through its wholly owned Dutch subsidiary, Siemens Finance B.V., which
were fully and unconditionally guaranteed by Siemens AG. The convertible notes
had a 1.375% coupon and were convertible into approximately 44.5 million shares
of Siemens AG at a conversion price of €56.1681 per share, which was subject to
change under certain circumstances.
Due to the cash settlement option the conversion right component was consid-
ered a derivative instrument recognized at fair value, which was reported in Other
current fi nancial liabilities as of September 30, 2005. In the third quarter of fi scal
2006, the Company irrevocably waived its option to pay a cash amount in lieu of the
delivery of shares upon exercise of the conversion right. Immediately before notifi -
cation of such waiver, the derivative component was remeasured for the last time
through profi t or loss and reclassifi ed to Additional paid-in capital (see Note 26).
The conversion right was contingently exercisable by the holders upon the
occurrence of one of several conditions, including, upon the Company’s share price
having exceeded 110% of the conversion price on at least 20 trading days in a period
of 30 consecutive trading days ending on the last trading day of any calendar quar-
ter. This condition was met in the fi rst quarter of fi scal 2004. In fi scal 2006, approx-
imately €3 of convertible notes were exercised and were settled primarily in cash.
Fiscal year
2008 5,589
2009 727
2010 50
2011 2,102
2012 954
Thereafter 5,789
15,211