Siemens 2008 Annual Report Download - page 184

88 Management’s discussion and analysis
Contractual obligations
In the ordinary course of business, Siemens’ primary contractual obligations regarding cash involve debt
service, purchase obligations and operating lease commitments.
The following table summarizes contractual obligations for future cash outows as of September 30, 2008:
Debt – At September 30, 2008, Siemens had €16.079 billion of short- and long-term debt, of which €1.819 billion
will become due within the next 12 months. Short-term debt includes current maturities of long-term debt, as
well as loans from banks coming due within the next 12 months. At September 30, 2008, the weighted average
maturity of our bonds and notes due after one year was 7.04 years. At September 30, 2007, total debt was
€15.497 billion. Further information about the components of debt is given in “Notes to Consolidated Financial
Statements.”
Debt for Siemens at September 30, 2008 consisted of the following:
Purchase obligations – At September 30, 2008, Siemens had €15.949 billion in purchase obligations. Purchase
obligations include agreements to purchase goods or services that are enforceable and legally binding and
which specify all of the following items: (i) xed or minimum quantities, (ii) xed, minimum or variable price
provisions and (iii) approximate timing of the transaction.
Operating leases – At September 30, 2008, Siemens had a total of €2.715 billion in total future payment obliga-
tions under non-cancelable operating leases. For additional information, see “Notes to Consolidated Financial
Statements.”
Siemens is subject to asset retirement obligations related to certain items of property, plant and equipment.
Such asset retirement obligations are primarily attributable to environmental clean-up costs which amounted to
€648 million as of September 30, 2008 and to costs primarily associated with the removal of leasehold improve-
ments at the end of the lease term amounting to €34 million as of September 30, 2008. For additional informa-
tion with respect to asset retirement obligations, see “Notes to Consolidated Financial Statements.”
Payments due by period
(€ in millions) Total
Less than
1 year
1 – 3
years
4 – 5
years
After 5
years
Debt 16,079 1,819 2,285 3,761 8,214
Purchase obligations 15,949 13,957 1,707 224 61
Operating leases 2,715 631 845 548 691
Total contractual cash obligations 34,743 16,407 4,837 4,533 8,966
(€ in millions) Short-Term Long-Term Total
Notes and bonds 1,024 11,942 12,966
Loans from banks 479 1,856 2,335
Other nancial indebtedness 265 280 545
Obligations under nance leases 51 182 233
Total debt 1,819 14,260 16,079