Siemens 2009 Annual Report Download - page 244


 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
 Consolidated Statements of Income  Consolidated Statements of Income
and Expense Recognized in Equity
 Consolidated Balance Sheets  Consolidated Statements of Cash Flow
b) Notes and bonds
Euro Medium-term note program
The Company has agreements with financial institutions un-
der which it may issue up to €15.0 billion and €5.0 billion in
medium-term notes as of September 30, 2009 and 2008, re-
spectively. As of September 30, 2009 and 2008, €8.8 billion
and €4.9 billion, respectively, in notional amounts were issued
and are outstanding. The outstanding amounts as of Septem-
ber 30, 2009 and 2008 comprise U.S.$500 (€342) floating rate
notes due in March 2012, bearing interest of 0.15% above LIBOR
and U.S.$500 (€342); 5.625% fixed rate notes due in March
2016 as well as €1.55 billion 5.250% note due December 12,
2011; €1 billion 5.375% note due June 11, 2014; and €1.6 billion
5.625% note due June 11, 2018. In fiscal 2009, Siemens updated
the program and issued in total additional €4.0 billion fixed-
interest notes under the program in two tranches comprising a
€2.0 billion 4.125% note due February 20, 2013 and a €2.0 bil-
lion 5.125% note due February 20, 2017.
Extendible
In fiscal 2008, the Company issued floating rate extendible
notes with a nominal value of €500, which were redeemed at
face value on the first maturity date at the end of June 2009.
The notes bore 0.23 percent interest above EURIBOR.
U.S.$ Medium Term Notes
In August 2006, the Company issued U.S.$5.0 billion of notes
(€3.4 billion). These notes were issued in four tranches com-
prising: U.S.$750 Floating Rate Notes (U.S.$ LIBOR + 0.05%)
due August 14, 2009; redeemed at face value at its maturity
date; U.S.$750, 5.5% Notes due February 16, 2012; U.S.$1.750
billion 5.75% Notes due October 17, 2016 and U.S.$1.750 billion
6.125% Notes due August 17, 2026. With respect to the floating
rate notes, the Company may, on or after February 14, 2008,
redeem all or some of the Notes at the early redemption
amount, according to the conditions of the bond. Regarding
the fixed rate notes, the Company may redeem, at any time, all
or some of the notes at the early redemption amount (call) ac-
cording to the conditions of the bond.
Other employee related costs primarily includes vacation pay-
ments, accrued overtime and service anniversary awards, sev-
erance payments, as well as liabilities related to the SG&A pro-
gram (see Note 5).
 DEBT
As of September 30, 2009, weighted-average interest rates for
loans from banks, other financial indebtedness and obliga-
tions under finance leases were 3.4% (2008: 4.9%), 2.9% (2008:
3.5%) and 4.0% (2008: 5.7%), respectively.
a) Commercial paper program
We have a U.S.$ 9.0 billion (€6.1 billion) global multi-currency
commercial paper program in place including U.S.$ extendible
notes capabilities. As of September 30, 2009 and 2008, out-
standing global commercial paper totaled €337 and €198, re-
spectively. Interest rates ranged from 0.21% to 0.23% and from
2.10% to 2.25%, respectively as of September 30, 2009 and
2008 (see also Other financial indebtedness below). Our is-
sues of commercial paper have a maturity of generally less
than 90 days.
September ,
 
Short-term
Notes and bonds –1,024
Loans from banks 261 479
Other financial indebtedness 392 265
Obligations under finance leases 45 51
Short-term debt and current
maturities of long-term debt 698 1,819
Long-term
Notes and bonds
(maturing until 2066) 16,502 11,942
Loans from banks
(maturing until 2023) 1,910 1,856
Other financial indebtedness
(maturing until 2029) 379 280
Obligations under finance leases 149 182
Long-term debt 18,940 14,260
19,638 16,079
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