Siemens 2008 Annual Report Download - page 257

Notes to Consolidated Financial Statements 161
(in millions of €, except where otherwise stated and per share amounts)
The Company’s principal pension bene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 recognized in Equity,
 Assumptions used for the calculation of the DBO and NPBC,
 Sensitivity analysis,
 Plan assets,
 Pension plan funding, and
 Pension benet payments.
The Company had no asset ceiling in its principal pension benet plans in scal 2008 and an immaterial asset
ceiling in scal 2007.
Pension benets: Pension obligations and funded status
A reconciliation of the funded status of the principal pension benet plans to the amounts recognized in the
Consolidated Balance Sheets is as follows:
The fair value of plan assets, DBO and funded status as of September 30, 2006 amounted to €23,755, €26,696
and €(2,941), respectively. As of September 30, 2005, the fair value of plan assets, DBO and funded status were
€21,581, €24,972 and €(3,391).
September 30, 2008 September 30, 2007
Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets 20,194 12,340 7,854 24,013 14,753 9,260
Total dened benet obligation 22,654 13,782 8,872 25,052 15,488 9,564
Dened benet obligation (funded) 22,474 13,782 8,692 24,581 15,210 9,371
Dened benet obligation (unfunded) 180 – 180 471 278 193
Funded status* (2,460) (1,442) (1,018) (1,039) (735) (304)
Germany (1,442) (735)
U.S. (588) (202)
U.K. (156) (40)
Other (274) (62)
Unrecognized past service cost (benets) (70) – (70) (75) – (75)
Effects due to asset ceiling – – – (14) – (14)
Net amount recognized (2,530) (1,442) (1,088) (1,128) (735) (393)
Amounts recognized in the Consolidated
Balance Sheets consist of:
Pension asset 50 17 33 161 33 128
Pension liability (2,580) (1,459) (1,121) (1,289) (768) (521)
* Funded status: The funded status shows the surplus (de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 re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.