Siemens 2007 Annual Report Download - page 256

256 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Pension benefi ts: Pension obligations and funded status
A reconciliation of the funded status of the principal pension benefi t plans to the
amounts recognized in the Consolidated Balance Sheets is as follows:
A detailed reconciliation of the changes in the DBO for fi scal 2007 and 2006 as
well as additional information by country is provided in the following table:
September 30, 2007 September 30, 2006
Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets 24,013 14,753 9,260 23,755 15,023 8,732
Total defi ned benefi t obligation 25,052 15,488 9,564 26,696 16,372 10,324
Defi ned benefi t obligation (funded) 24,581 15,210 9,371 26,481 16,372 10,109
Defi ned benefi t obligation (unfunded) 471 278 193 215 – 215
Funded status* (1,039) (735) (304) (2,941) (1,349) (1,592)
Germany (735) (1,349)
U.S. (202) (559)
U.K. (40) (733)
Other (62) (300)
Unrecognized past service cost (benefi ts) (75) – (75) (84) – (84)
Effects due to asset ceiling (14) – (14) – – –
Net amount recognized (1,128) (735) (393) (3,025) (1,349) (1,676)
Amounts recognized in the Consolidated
Balance Sheets consist of:
Pension asset 161 33 128 29 – 29
Pension liability (1,289) (768) (521) (3,054) (1,349) (1,705)
September 30, 2007 September 30, 2006
Total Domestic Foreign Total Domestic Foreign
Change in defi ned benefi t obligations:
Defi ned benefi t obligation at beginning of year 26,696 16,372 10,324 24,972 15,932 9,040
Foreign currency exchange rate changes (556) – (556) (206) – (206)
Service cost 684 358 326 715 388 327
Interest cost 1,233 725 508 1,125 679 446
Settlements and curtailments (13) – (13) (1) – (1)
Plan participants’ contributions 180 119 61 49 – 49
Amendments and other 283 (7) 290 1,509 443 1,066
Actuarial (gains) losses (1,660) (863) (797) (179) (196) 17
Acquisitions 101 55 46 146 59 87
Divestments (670) (453) (217) (309) (145) (164)
Benefi ts paid (1,226) (818) (408) (1,125) (788) (337)
Defi ned benefi t obligation at end of year 25,052 15,488 9,564 26,696 16,372 10,324
Germany 15,488 16,372
U.S. 3,250 3,677
U.K. 3,229 3,551
Other 3,085 3,096
* Funded status: The funded status shows the surplus (defi cit) of the DBO relative to the plan assets as of the balance sheet date. The DBO
is calculated based on the projected unit credit method and refl ects the net present value as of the balance sheet date of the accumulated
pension entitlements of active employees, former employees with vested rights and of retirees and their surviving dependents with
consideration of future compensation and pension increases.