Siemens 2010 Annual Report Download - page 291

147 Consolidated Financial Statements
148 Consolidated Statements of Income
149 Consolidated Statements of Comprehensive Income
150 Consolidated Statements of Financial Position
151 Consolidated Statements of Cash Flow
152 Consolidated Statements of Changes in Equity
154 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
261 Additional information

method will be determined by the Managing Board and the
Supervisory Board.
Each fiscal year, the Company decides whether or not to grant
Siemens stock awards. Siemens stock awards may be granted
only once a year within thirty days following the date of publi-
cation of the business results for the previous fiscal year. The
Supervisory Board decides annually after the end of each fiscal
year how many stock awards to grant to the Managing Board
and the Managing Board decides annually how many stock
awards to grant to members of the top management of domes-
tic and foreign subsidiaries and eligible employees.
In fiscal , the Company granted ,, stock awards:
,, awards were granted to , employees and ,
awards were granted to members of the Managing Board. In
fiscal , the Company granted ,, stock awards:
,, awards were granted to , employees and ,
awards were granted to members of the Managing Board. De-
tails on stock award activity and weighted average grant-date
fair value are summarized in the table below:
Year ended Sept. ,  Year ended Sept. , 
Awards Weighted
average
Grant-Date
Fair Value
Awards Weighted
average
Grant-Date
Fair Value
Non-vested, be-
ginning of period 4,438,303 €57.22 3,489,768 €67.56
Granted 1,361,586 €60.79 1,992,392 €37.65
Vested (824,694) €57.28 (881,097) €55.63
Forfeited / settled (187,877) 1 €61.501(162,760) €48.01
Non-vested,
end of period 4,787,318 €58.06 4,438,303 €57.22
1 Consists of 153,020 forfeited and 34,857 settled awards with weighted average
grant-date fair values of €57.43 and €79.34, respectively, in fiscal 2010.
Fair value was determined as the market price of Siemens
shares less the present value of dividends expected during the
four year and three year vesting period, respectively, as stock
awards do not carry dividend rights during the vesting period,
which resulted in a fair value of €. and €., respec-
tively, per stock award granted in fiscal  and . Total
fair value of stock awards granted in fiscal  and 
amounted to € and €, respectively.
Forfeited / settled in fiscal , includes rights to stock awards
granted to former Managing and Supervisory Board members,
who used their stock award rights to net their obligations to-
wards the Company, which resulted from settlement agree-
ments in connection with compliance matters. For further in-
formation see Note .
Share Matching Program and its underlying plans:
a) Base Share Program
Under the Base Share Program, members of the Managing
Board and employees of Siemens AG and participating Siemens
companies can purchase Siemens shares under favorable con-
ditions once a year. The Base Share Program is measured at fair
value at grant-date. Shares purchased under the Base Share
Program grant the right to receive matching shares under the
same conditions described below at Share Matching Plan.
In fiscal , the Base Share Program allowed members of the
Managing Board and employees of Siemens AG and participat-
ing Siemens companies to make an investment of a fixed
amount of their compensation into Siemens shares, which is
sponsored by Siemens with a tax beneficial allowance per plan
participant. Shares were bought at market price at a predeter-
mined date in the second quarter. In fiscal , the Company
incurred pre-tax expense of €. In fiscal , members of the
Managing Board and employees of Siemens AG and participat-
ing Siemens companies could purchase a limited number of
Siemens shares at a preferential price. Up to a stipulated date
in the first quarter of the fiscal year, employees were allowed
to order the shares, which were issued in the second quarter
of the fiscal year. In fiscal , the Company incurred pre-tax
expense of €, based on a preferential share price of € per
share and a grant-date fair value of the equity instrument of
€. per share.
Fair value is determined as the market price of Siemens shares
less the present value of expected dividends as investment
shares of the Base Share Program do not carry dividend rights
until they are issued in the second quarter, less the share price
paid by the participating employee.
The previous employee share purchase program was super-
seded by the Base Share Program in fiscal .
b) Share Matching Plan
In the first quarter of fiscal , Siemens issued a new Share
Matching Plan (Share Matching Plan ). In contrast to the
Share Matching Plan  (described below), the Share Match-
ing Plan  is restricted to senior managers only. Senior
managers of Siemens AG and participating Siemens companies
may invest a certain amount of their compensation in Siemens