Siemens 2007 Annual Report Download - page 255

Notes to Consolidated Financial Statements 255
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
Consolidated Statements of Cash Flow
The Company makes payments directly to the participants in the case of unfunded
benefi t plans and the payments are included in net cash used in operating activi-
ties. For funded pension plans, the participants are paid by the external pension
fund and accordingly these payments are cash neutral to the Company. In this
case, the Company’s regular funding and supplemental cash contributions result
in net cash used in operating activities.
In the Consolidated Statements of Cash Flow, the Company’s principal pension
and other post-employment benefi ts resulted in net cash used in operating activi-
ties of €906 compared to €797 in the previous fi scal year.
Principal pension benefi ts
The principal pension benefi t plans cover approximately 522,000 participants,
including 229,000 active employees, 100,000 former employees with vested bene-
fi ts and 193,000 retirees and surviving dependents. Individual benefi ts are gener-
ally based on eligible compensation levels and/or ranking within the Company
hierarchy and years of service. Retirement benefi ts under these plans vary
depending on legal, fi scal and economic requirements in each country. The major-
ity of Siemens’ active employees in Germany participate in a pension scheme
introduced in fi scal 2004, the BSAV (Beitragsorientierte Siemens Altersver-
sorgung). The BSAV is a fully funded defi ned benefi t pension plan whose benefi ts
are predominantly based on contributions made by the company and returns
earned on such contributions, subject to a minimum return guaranteed by the
Company. The BSAV is funded via the BSAV Trust. In connection with the imple-
mentation of the BSAV, benefi ts provided under defi ned benefi t pension plans
funded via the Siemens German Pension Trust were modifi ed to substantially
eliminate the effects of compensation increases.
The Company’s principal pension benefi t plans are explicitly explained in the
subsequent sections with regard to:
¢ Pension obligations and funded status,
¢ Components of NPBC,
¢ Amounts recognized in the Consolidated Statements of Income and Expense rec-
ognized in Equity,
¢ Assumptions used for the calculation of the DBO and NPBC,
¢ Sensitivity analysis,
¢ Plan assets,
¢ Pension plan funding, and
¢ Pension benefi t payments.
The Company did have an immaterial asset ceiling in its principal pension benefi t
plans in fi scal 2007 and no asset ceiling in fi scal 2006.