Siemens 2007 Annual Report Download - page 266

266 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Other post-employment benefi ts: Assumptions used in the calculation of the
DBO and NPBC
Discount rates and other key assumptions used for transition payments in Ger-
many are the same as those utilized for domestic pension benefi t plans.
The weighted-average assumptions used in calculating the actuarial values for
the post-employment healthcare and life insurance benefi ts are as follows:
Experience adjustments, which result from differences between the actuarial
assumptions and the actual occurrence, decreased the DBO by 0.3% and 1.5% in
fi scal 2007 and 2006, respectively.
Other post-employment benefi ts: Sensitivity analysis
The health care assumptions may be signifi cantly infl uenced by the expected pro-
gression in health care expense. A one-percentage-point change in the healthcare
trend rates would have resulted in the following increase (decrease) of the defi ned
benefi t obligation and the service and interest cost as of and for the year ended
September 30, 2007:
Year ended September 30,
2007 2006
Discount rate 6.16% 5.95%
U.S.:
Medical trend rates (initial/ultimate/year):
Medicare ineligible pre-65 9%/5%/2011 10%/5%/2011
Medicare eligible post-65 9%/5%/2011 10%/5%/2011
Fixed dollar benefi t 4.5% 4.5%
Dental trend rates (initial/ultimate/year) 6%/5%/2021 6%/5%/2021
Canada:
Medical trend rates 4.68% 5.0%
Drug trend rates 4.18% 4.5%
Dental trend rates 4.18% 4.5%
September 30, 2007
One-percentage-point
increase decrease
Effect on defi ned benefi t obligation 39 (35)
Effect on total of service and interest cost components 4 (4)