Siemens 2010 Annual Report Download - page 173

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

Debt – At September , , Siemens had €. billion of
short- and long-term debt, of which €. billion will become
due within the next twelve months. Short-term debt includes
current maturities of long-term debt, as well as loans from
banks coming due within the next twelve months. At Septem-
ber , , the weighted average maturity of our bonds and
notes due after one year was . years. Further information
about the components of debt is given in “Notes to Consoli-
dated Financial Statements.”
Debt for Siemens at September ,  consisted of the fol-
lowing:
Short-
term
Long-
term
Total
(in millions of €)
Notes and bonds 2,062 15,238 17,300
Loans from banks 283 1,981 2,264
Other financial indebtedness 22 156 178
Obligations under finance leases 49 122 171
Total debt 2,416 17,497 19,913
Purchase obligations – At September , , Siemens had
€. billion in purchase obligations. Purchase obligations
include agreements to purchase goods or services that are
enforceable and legally binding and which specify all of the
following items: (i) fixed or minimum quantities, (ii) fixed,
minimum or variable price provisions and (iii) approximate
timing of the transaction.
Operating leases – At September , , Siemens had a total
of €. billion in total future payment obligations under non-
cancelable operating leases. For additional information, see
“Notes to Consolidated Financial Statements.”
Other – Siemens is subject to asset retirement obligations re-
lated to certain items of property, plant and equipment. Such
asset retirement obligations are primarily attributable to envi-
ronmental clean-up costs related to remediation and environ-
mental protection liabilities which amounted to €. billion
as of September , , and costs primarily associated with
the removal of leasehold improvements at the end of the lease
term (amounting to € million as of September , ). The
environmental clean-up costs related to remediation and envi-
ronmental protection liabilities have been accrued based on
the estimated costs of decommissioning facilities for the pro-
duction of uranium and mixed-oxide fuel elements in Hanau,
Germany (Hanau facilities), as well as a nuclear research and
service center in Karlstein, Germany (Karlstein facilities). For
additional information with respect to asset retirement obliga-
tions, see “Notes to Consolidated Financial Statements.”
Our liquidity may be adversely affected in future periods by
regular or special contributions to fund our pension plans and
similar commitments. As of September ,  and , our
liability for pension plans and similar commitments as recog-
nized in the Consolidated Statements of Financial Positions
amounted to €. billion and €. billion, respectively.
However, the recognized liability may fluctuate significantly in
future periods due to changes in assumptions, in particular the
discount rate, governmental regulations in effect at the time,
accrued service and interest costs, and the investment perfor-
mance of our pension plan assets. For additional information
Payments due by period
Total Less than
 year
 –  years  –  years After
 years
(in millions of €)
Debt 19,913 2,416 5,967 1,808 9,722
Purchase obligations 12,139 11,030 953 117 39
Operating leases 3,126 721 969 612 824
Total contractual cash obligations 35,178 14,167 7,889 2,537 10,585
Contractual obligations
In the ordinary course of business, Siemens’ primary contrac-
tual obligations regarding cash involve debt service, purchase
obligations and operating lease commitments.
The following table summarizes our contractual payment obli-
gations as of September ,  that will result in future cash
outflows: