Siemens 2010 Annual Report Download - page 295

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

For purposes of determining the fair value of SARs in fiscal
 and , the expected volatility is based on historical
volatility of Siemens shares, implied volatility for traded
Siemens options with similar terms and features, and certain
other factors. The expected term is derived by applying the
simplified method and is determined as the average of the
vesting term and the contractual term. The risk-free interest
rate is based on applicable governmental bonds. Changes in
subjective assumptions can materially affect the fair value of
the SARs.
Phantom stock
Where local regulations restrict the grants of stock awards in
certain jurisdictions, the Company grants phantom stock to
employees under the same conditions as the Siemens stock
awards, except that grantees receive the share prices’ equiva-
lent value in cash only at the end of the four, respectively,
three year vesting period. In fiscal , , phantom
stock rights were granted, , were vested and transferred,
, phantom stock rights forfeited and , phantom
stock rights were settled, resulting in a balance of , non-
vested phantom stock rights as of September , . In fiscal
, , phantom stock rights were granted, , vested
and were transferred , phantom stock rights forfeited and
, phantom stock rights were settled, resulting in a bal-
ance of , non-vested phantom stock rights as of Septem-
ber , .
 – Personnel costs
Year ended September ,
 
Wages and salaries 21,572 20,320
Statutory social welfare contributions and
expenses for optional support payments 3,328 3,353
Expenses relating to pension plans
and employee benefits 778 996
25,678 24,669
Expenses relating to pension plans and employee benefits in-
clude service costs for the period. Expected return on plan as-
sets and interest cost are included in Financial income (ex-
pense), net.
Included in fiscal , are expenses of € related to special
remuneration for non-management employees.
The average number of employees in fiscal years  and
 was , and ,, respectively (based on continu-
ing operations). Part-time employees are included on a propor-
tionate basis. The employees were engaged in the following
activities:
Year ended September ,
(in thousands)  
Manufacturing and services 262.1 264.9
Sales and marketing 77.8 82.8
Research and development 30.1 31.8
Administration and general services 32.7 34.2
402.7 413.7
 – Earnings per share
Year ended September ,
(shares in thousands)  
Income from continuing operations 4,112 2,457
Less: Portion attributable
to non-controlling interest (169) (205)
Income from continuing operations
attributable to shareholders of Siemens AG 3,943 2,252
Weighted average shares
outstanding – basic 868,244 864,818
Effect of dilutive convertible debt
securities and share-based payment 9,236 6,929
Weighted average shares
outstanding – diluted 877,480 871,747
Basic earnings per share
(from continuing operations) 4.54 2.60
Diluted earnings per share
(from continuing operations) 4.49 2.58
The dilutive earnings per share computation does not contain
weighted average shares of , thousand and , thou-
sand in fiscal  and , respectively, since the options’
exercise prices exceeded the average market price of ordinary
shares and its inclusion would have been antidilutive in the
years presented.