Siemens 2010 Annual Report Download - page 268

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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shareholders; (ii) retired, (iii) used to meet the obligations
under the  Siemens Stock Option Plan (iv) offered for pur-
chase to individuals currently or formerly employed by the
Company or any of its subsidiaries or granted and transferred
to such individuals with a holding period of at least two years;
(v) offered and transferred with the approval of the Supervi-
sory Board to third parties against contributions in kind, par-
ticularly in connection with business combinations or the ac-
quisition of companies or interests therein; (vi) with the ap-
proval of the Supervisory Board sold to third parties against
payment in cash if the price (excluding incidental transaction
costs) at which such Siemens shares are to be sold is not sig-
nificantly lower than the market price of the Siemens stock on
the trading day, as determined during the opening auction of
the Xetra trading platform (or a comparable successor system);
or (vii) used to service convertible bonds or warrants granted
by the Company or any of its subsidiaries. In addition, the Su-
pervisory Board is authorized to offer repurchased shares to
the members of the Managing Board of the Company for pur-
chase as stock-based compensation under the same terms and
conditions as those offered to employees of the Company or to
grant and transfer such shares to members of the Managing
Board with a holding period of at least two years.
The authorization to acquire up to ,, Siemens shares
is supplemented by an authorization to repurchase up to half
of those shares by using equity derivatives, such as put and
call options and a combination of put and call options. As in
fiscal , the term of such options must be chosen in a way
that any repurchase of the Company ’s own shares upon the
exercise of the option will take place no later than on the expi-
ration date of the supplemented authorization.
In November , the Company announced a share buy back
program. Under the program, the Company originally expected
to conduct share repurchases with a total volume of up to €
billion by  for the purpose of cancellation and reduction of
capital stock and, to a lesser extent, to fulfill obligations arising
out of stock based compensation programs. As of September
, , ,, Treasury shares amounting to €, have
been repurchased.
In fiscal , ,, Treasury Shares were re-issued in con-
nection with share-based payment plans. As of September ,
, ,, shares remained in treasury with a carrying
amount of €,.
In fiscal ,  shares were re-deposited to the Company ’s
Treasury Stock and ,, of Treasury Shares were re-issued
in connection with share-based payment plans. As of Septem-
ber , , ,, shares remained in treasury with a
carrying amount of €,.
Other Comprehensive Income
The changes in the other comprehensive income including
non-controlling interest holders are as follows:
Year ended September ,  Year ended September , 
Pretax Tax effect Net Pretax Tax effect Net
Unrealized holding gains (losses) on available-for-sale financial assets 41 (4) 37 46 (8) 38
Reclassification adjustments for (gains) losses included in net income (24) 6 (18) 44 (10) 34
Net unrealized gains (losses) on available-for-sale financial assets 17 2 19 90 (18) 72
Unrealized gains (losses) on derivative financial instruments (163) 39 (124) 335 (101) 234
Reclassification adjustments for (gains) losses included in net income (36) 11 (25) 138 (43) 95
Net unrealized gains (losses) on derivative financial instruments (199) 50 (149) 473 (144) 329
Foreign-currency translation differences 1,220 – 1,220 (506) – (506)
Actuarial gains and losses on pension plans and similar commitments (2,889) 835 (2,054) (1,692) 443 (1,249)
Other comprehensive income (1,851) 887 (964) (1,635) 281 (1,354)
Foreign currency translation differences are primarily a result
of the strengthening of the U.S. $ in fiscal . Actuarial gains
and losses on pension plans and similar commitments primar-
ily changed in fiscal  due to an adjustment of the discount
rate and due to actual returns varying from expected returns;
see Note  for further information.