Siemens 2008 Annual Report Download - page 254

158 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
The conversion right was contingently exercisable by the holders upon the occurrence of one of several condi-
tions, including, upon the Company’s share price having exceeded 110% of the conversion price on at least
20 trading days in a period of 30 consecutive trading days ending on the last trading day of any calendar quar-
ter. This condition was met in the rst quarter of scal 2004.
Until August 2007, the Company repurchased a principal amount of approximately €1.9 billion of its outstand-
ing convertible notes of the €2.5 billion 1,375% €-bond and paid approximately €3.3 billion in cash. The pur-
chase price was allocated 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 prot and loss. The amount allocated to the conversion right component was charged
directly against Additional paid-in capital (see Note 27 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 consecutive 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 approxi-
mately 10 million shares issued from the conditional capital (see Note 27 for further information).
Other nancial indebtedness
Other nancial indebtedness includes €256, and €469, as of September 30, 2008 and 2007, respectively, for the
Company’s real estate assets that were sold or transferred and in which Siemens has retained signicant risks
and rewards of ownership, 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 nancing obli-
gations. These real estate properties are carried on the Company’s Consolidated Balance Sheets and no sale and
prot have been recognized. As of September 30, 2008 and 2007, Other nancial indebtedness also includes €198
and €4,332, respectively, of outstanding global commercial paper.
Obligations under nance leases
As of September 30, 2008 and 2007, the nance lease liabilities are as follows:
September 30, 2008 September 30, 2007
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 63 12 51 64 16 48
1 to 2 years 29 9 20 63 12 51
2 to 3 years 34 7 27 29 9 20
3 to 4 years 46 6 40 65 6 59
4 to 5 years 22 5 17 14 6 8
Thereafter 93 15 78 120 20 100
Total 287 54 233 355 69 286
Less: Current portion (51) (48)
182 238