Siemens 2007 Annual Report Download - page 252

252 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Until August 2007, the Company repurchased a principal amount of approxi-
mately €1.9 billion of its outstanding convertible notes of the €2.5 billion 1,375%
€-bond and paid approximately €3.3 billion in cash. The purchase price was allo-
cated to the liability component and the conversion right component. The fair value
of the liability component was charged against the carrying amount of the liability
component with the difference being recognized in profi t and loss. The amount
allocated to the conversion right component was charged directly against Addi-
tional paid-in capital (see Note 26 for further information).
The Company had the right, at any time from June 18, 2007, to redeem the notes
outstanding at their principal amount together with interest accrued thereon, if
Siemens’ share price exceeded 130% of the conversion price on any 15 of 30 consec-
utive trading days before notice of early redemption. In July 2007 these conditions
were met and the Company exercised on July 16, 2007 its option to prematurely
redeem at their principal amount the remaining amount of outstanding notes on
August 17, 2007. Until the end of the conversion period on August 10, 2007 the
remaining notes were converted almost entirely to shares by the note-holders,
resulting in approximately 10 million shares issued from the conditional capital
(see Note 26 for further information).
Other fi nancial indebtedness
Other fi nancial indebtedness includes €469 and €512, as of September 30, 2007 and
2006, respectively, for the Company’s real estate assets that were sold or trans-
ferred and in which Siemens has retained signifi cant risks and rewards of owner-
ship, including circumstances in which Siemens participates directly or indirectly
in the change in market value of the property. Therefore, these transactions have
been accounted for as fi nancing obligations. These real estate properties are car-
ried on the Company’s Consolidated Balance Sheets and no sale and profi t have
been recognized. As of September 30, 2007 and 2006, Other fi nancial indebtedness
also includes €4,332 and € –, respectively, of outstanding global commercial paper.
Obligations under fi nance leases
As of September 30, 2007 and 2006, the fi nance lease liabilities are as follows:
September 30, 2007 September 30, 2006
Due
Minimum
lease
payment
obligation
Un-
amortized
interest
expense
Present
value of
minimum
lease
payment
obligation
Minimum
lease
payment
obligation
Un-
amortized
interest
expense
Present
value of
minimum
lease
payment
obligation
Within 1 year 64 16 48 73 20 53
1 to 2 years 63 12 51 68 17 51
2 to 3 years 29 9 20 40 14 26
3 to 4 years 65 6 59 37 14 23
4 to 5 years 14 6 8 69 13 56
Thereafter 120 20 100 121 13 108
Total 355 69 286 408 91 317
Less: Current portion (48) (53)
238 264