Siemens 2008 Annual Report Download - page 259

Notes to Consolidated Financial Statements 163
(in millions of €, except where otherwise stated and per share amounts)
In scal 2008, the DBO and the fair value of plan assets decreased due to the disposal of SV and SEN pension lia-
bilities and pension assets. These effects are included in the items Divestments and Divestments and other in the
preceding two tables. In scal 2007, the DBO and the fair value of plan assets decreased due to the contribution
of the carrier-related operations of Siemens to NSN.
Pension benets: Components of NPBC
The components of the NPBC for the scal years ended September 30, 2008 and 2007 are as follows:
Net periodic benet cost for scal 2008, in the table above, includes €(21) related to discontinued operations.
The amount includes €(59) settlement gain as a result from the disposal of the SV and SEN pension liabilities
and €38 other net periodic pension cost of SV and SEN.
Pension benets: Amounts recognized in the Consolidated Statements of Income and Expense recognized
in Equity
The actuarial gains and losses on dened benet pension plans recognized in the Consolidated Statements
of Income and Expense recognized in Equity for the scal years ended September 30, 2008 and 2007 were as
follows:
Pension benets: Assumptions for the calculation of the DBO and NPBC
Assumed discount rates, compensation increase rates and pension progression rates used in calculating the DBO
together with long-term rates of return on plan assets vary according to the economic conditions of the country
in which the retirement plans are situated or where plan assets are invested as well as capital market expectations.
Year ended September 30, 2008 Year ended September 30, 2007
Total Domestic Foreign Total Domestic Foreign
Service cost 511 279 232 684 358 326
Interest cost 1,246 765 481 1,233 725 508
Expected return on plan assets (1,471) (929) (542) (1,513) (947) (566)
Amortization of past service cost (benets) (1) – (1) (5) – (5)
Loss (gain) due to settlements and curtailments (46) (26) (20) (4) – (4)
Net periodic benefit cost 239 89 150 395 136 259
Germany 89 136
U.S. 132 137
U.K 15 105
Other 3 17
Year ended September 30, 2008 Year ended September 30, 2007
Total Domestic Foreign Total Domestic Foreign
Actuarial losses (gains) 1,900 944 956 (1,442) (494) (948)
Effects due to asset ceiling – – – 13 – 13
Income tax effect (50) 252 (302) 206 (83) 289
Net amount recognized in the Consolidated
Statements of Income and Expense recognized
in Equity (net of tax) 1,850 1,196 654 1,223 (577) (646)
Germany 1,196 (577)
U.S. 198 (185)
U.K. 263 (322)
Other 193 (139)