Siemens 2011 Annual Report Download - page 210

6 A. To our shareholders
23 B. Corporate Governance 51 C. Combined management’s discussion and analysis
52 C. Business and operating environment
80 C. Fiscal  – Financial summary
83 C. Results of operations
101 C. Financial position
114 C. Net assets position
117 C. Overall assessment of the economic position
118 C. Report on post-balance sheet date events
119 C. Report on expected developments and
associated material opportunities and risks
135 C. Information required pursuant to Section  ()
and Section  () of the German Commercial
Code (HGB) and explanatory report

Payments due by period
Total Less than
 year
 –  years  –  years After
 years
(in millions of €)
Debt 17,940 3,660 4,132 2,826 7,322
Purchase obligations 20,120 12,349 3,784 1,614 2,373
Operating leases 3,068 716 962 564 826
Total contractual cash obligations 41,128 16,725 8,878 5,004 10,521
Debt – At September , , Siemens had €. billion of
short- and long-term debt, of which €. billion will be-
come due within the next twelve months. Short-term debt in-
cludes current maturities of long-term debt, as well as loans
from banks coming due within the next twelve months. Fur-
ther information about the components of debt is given in
D. Notes to Consolidated Financial Statements.
Debt for Siemens at September ,  consisted of the fol-
lowing:
Short-
term
Long-
term
Total
(in millions of €)
Notes and bonds 2,495 12,651 15,146
Loans from banks 1,128 1,354 2,482
Other financial indebtedness 21 146 167
Obligations under finance leases 16 129 145
Total debt 3,660 14,280 17,940
Purchase obligations – At September , , Siemens had
€. billion in purchase obligations. Purchase obligations
include agreements to purchase goods or services that are en-
forceable and legally binding and which specify all of the fol-
lowing items: () fixed or minimum quantities, () fixed, mini-
mum or variable price provisions and () approximate timing
of the transaction.
In December , Siemens and AtoS signed an option agree-
ment (written call option) which granted AtoS the right to ac-
quire Siemens IT Solutions and Services. Closing of the trans-
action was on July , , following clearance of the transac-
tion by the relevant antitrust authorities and the approval
from AtoS’ shareholders on July , . Related to the transac-
tion is a seven-year outsourcing contract worth around €.
billion, under which AtoS will provide managed services and
system integration to Siemens. The expected remaining cash
outflows from the outsourcing contract are included in these
purchase obligations. For further information on that transac-
tion see D. Notes to Consolidated Financial Statements.
Operating leases – At September , , Siemens had a to-
tal of €. billion in total future payment obligations under
non-cancelable operating leases. For additional information,
see D. 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 which amounted to €. billion as of Sep-
tember , , and costs primarily associated with the re-
moval of leasehold improvements at the end of the lease term
of € million as of September , . The environmental
clean-up costs related to remediation and environmental pro-
tection liabilities have been accrued based on the estimated
costs of decommissioning facilities for the production of ura-
nium and mixed-oxide fuel elements in Hanau, Ger many
(Hanau facilities), as well as a nuclear research and service
center in Karlstein, Germany (Karlstein facilities). For addi-
tional information with respect to asset retirement obliga-
tions, see D. Notes to Consolidated Financial Statements.
C... CONTRACTUAL OBLIGATIONS
In the ordinary course of business, Siemens’ primary contrac-
tual obligations regarding cash relate to debt, purchase obli-
gations and operating leases.
The following table summarizes our contractual obligations
as of September ,  that will result in future cash out-
flows: