Siemens 2010 Annual Report Download - page 177

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

related to our stake in NSN and by the sale of our % minority
stake in Dräger Medical AG & Co. KG to its majority shareholder
Drägerwerk AG & Co. KGaA.
The increase in Other financial assets resulted mainly from
changes in the non-current portion of the fair market values of
derivatives used for our hedging activities as well as increased
loan receivables primarily at SFS. Other financial assets were
reduced in fiscal  by the conversion of the above-men-
tioned € million in shareholder loans to NSN into preferred
shares. NSN has announced that it has entered into an agree-
ment with Motorola, Inc. to acquire the majority of Motorola’s
wireless network infrastructure assets subject to customary
closing conditions including regulatory approvals. Siemens
and Nokia each intend to convert under certain conditions a
further € million in shareholder loans to NSN into preferred
shares, which would not have an impact on our cash flow.
The table below shows our current and long-term liabilities at
the respective balance sheet dates:
(in millions of €)
September ,
 
Short-term debt and current maturities
of long-term debt 2,416 698
Trade payables 7,880 7,593
Other current financial liabilities 1,401 1,600
Current provisions 5,138 4,191
Income tax payables 1,816 1,936
Other current liabilities 21,794 20,311
Liabilities associated with
assets classified as held for disposal 146 157
Total current liabilities 40,591 36,486
Long-term debt 17,497 18,940
Pension plans and similar commitments 8,464 5,938
Deferred tax liabilities 577 776
Provisions 3,332 2,771
Other financial liabilities 990 706
Other liabilities 2,280 2,022
Total long-term liabilities 33,140 31,153
1 Due to the retrospective application of an amended accounting pronouncement
in fiscal 2010, certain derivatives, not qualifying for hedge accounting, were
reclassified from current to non-current (see “Notes to the Consolidated Financial
Statements”).
Short-term debt and current maturities of long-term debt to-
taled €. billion at the end of fiscal , an increase of
€. billion from the prior year-end. This increase mainly re-
sulted from the reclassification of a €. billion .% Euro-
bond (formerly classified as Long-term debt), partly offset by
the repayment of commercial paper.
The increase of € million in Trade payables year-over-year
was due mainly to currency translation effects.
Other current liabilities increased by €. billion compared
to the prior year-end, due mainly to higher billings in excess of
cost primarily at Energy. As of September , , Other cur-
rent liabilities included liabilities of € million related to
special remuneration for non-management employees.
Long-term debt decreased by €. billion compared to the
prior year-end. The decrease was mainly due to the above-
mentioned reclassification of a €. billion .% Eurobond to
Short-term debt and current maturities of long-term debt
partly offset by fair value hedge accounting adjustments and
currency translation effects.
Pension plans and similar commitments increased to €.
billion as of September ,  compared to €. billion a
year earlier, reflecting the increase in the underfunding of
Siemens’ principal pension plans as of September ,  to
€. billion, compared to €. billion a year earlier.
The increase in Current Provisions and the increase in non-
current Provisions included higher warranties, higher provi-
sions for order-related losses and risks, and higher asset retire-
ment obligations due to changes in discount rates.
The increase of € million in Other financial liabilities re-
lates primarily to changes in the non-current portion of fair
market values of derivatives designated as hedging instru-
ments.