Siemens 2008 Annual Report Download - page 265

Notes to Consolidated Financial Statements 169
(in millions of €, except where otherwise stated and per share amounts)
Other post-employment benets: Amounts recognized in the Consolidated Statements of Income and
Expense recognized in Equity
The actuarial gains and losses on other post-employment benet plans recognized in the Consolidated State-
ments of Income and Expense recognized in Equity for the scal years ended September 30, 2008 and 2007
were as follows:
Other post-employment benets: Assumptions used in the calculation of the DBO and NPBC
Discount rates and other key assumptions used for transition payments in Germany are the same as those uti-
lized for domestic pension benet plans.
The weighted-average assumptions used in calculating the actuarial values for the post-employment healthcare
and life insurance benets are as follows:
Experience adjustments, which result from differences between the actuarial assumptions and the actual occur-
rence, decreased the DBO by 0.9%, 0.3%, 1.5% and 14.2% in scal 2008, 2007, 2006 and 2005, respectively.
Other post-employment benets: Sensitivity analysis
The healthcare assumptions may be signicantly inuenced by the expected progression in healthcare expense.
A one-percentage-point change in the healthcare trend rates would have resulted in the following increase
(decrease) of the dened benet obligation and the service and interest cost as of and for the year ended Sep-
tember 30, 2008:
Year ended September 30, 2008 Year ended September 30, 2007
Total Domestic Foreign Total Domestic Foreign
Actuarial losses (gains) (27) (14) (13) (33) (36) 3
Income tax effect 9 4 5 10 11 (1)
Net amount recognized in the Consolidated
Statements of Income and Expense recognized
in Equity (net of tax) (18) (10) (8) (23) (25) 2
Germany (10) (25)
U.S. (5) 3
Canada (3) (1)
Year ended September 30,
2008 2007
Discount rate 6.70% 6.16%
U.S.:
Medical trend rates (initial/ultimate/year):
Medicare ineligible pre-65 9%/5%/2017 9%/5%/2011
Medicare eligible post-65 9%/5%/2017 9%/5%/2011
Fixed dollar benet – 4.5%
Dental trend rates (initial/ultimate/year) 6%/5%/2021 6%/5%/2021
Canada:
Medical trend rates 5.00% 4.68%
Drug trend rates 7%/5%/2010 4.18%
Dental trend rates 4.00% 4.18%