Siemens 2011 Annual Report Download - page 302

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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The total defined benefit obligation at the end of the fiscal
year includes €, million for active employees, €, mil-
lion for former employees with vested benefits and €,
million for retirees and surviving dependents.
In fiscal , the DBO decreased due to an increase in dis-
count rate for the domestic and some foreign pension plans.
Also in fiscal , the DBO and the fair value of plan assets
decreased by € million and € million due to the disposal
of Siemens IT Solutions and Services pension liabilities and
plan assets. These effects are included in line items Divest-
ments and Divestments and other in the tables above. Fur-
thermore, in fiscal , Siemens transferred pension liabili-
ties and plan assets of its major pension plan in the Nether-
lands to the industry pension fund PME. The PME will be ac-
counted for as a defined contribution plan with a resulting de-
crease in DBO and plan assets. The DBO and plan asset
transfer amounted to both € million and is included in line
items Settlements and curtailments and Settlements in the ta-
bles above. In addition, a settlement gain of € million was
recognized in equity and is included in line item Actuarial
(gains) losses in the first table above. Furthermore, line item
Settlements and curtailments in fiscal , includes €()
million resulting from the disposal of pension liabilities of
Siemens IT Solutions and Services. In fiscal , the DBO in-
creased due to a decrease in discount rate for the domestic
and foreign pension plans. Line item Settlements and curtail-
ments in fiscal , in the table above, includes €() mil-
lion resulting from a curtailment of two defined benefit pen-
sion plans in the U.S. and €() million due to a partial settle-
ment of pension plans in Canada.
Employer contributions expected to be paid to the funded
pension plans during fiscal  are € million, therein
€ million to the domestic pension plans and € million
to the foreign pension plans. Line item Employer contribu-
tions in fiscal , includes supplemental employer contribu-
tions in the U.K. The amount of €() million in line item Set-
tlements in fiscal , is due to the partial settlement of pen-
sion plans in Canada.
PENSION BENEFITS: COMPONENTS OF NPBC
The components of the NPBC for the fiscal years ended Sep-
tember ,  and  are as follows:
Year ended September ,  Year ended September , 
(in millions of €) Total Domestic Foreign Total Domestic Foreign
Service Cost 431 283 148 481 287 194
Interest Cost 1,189 733 456 1,293 802 491
Expected return on plan assets (1,364) (847) (517) (1,281) (801) (480)
Amortization of past service cost (benefits) 12 20 (8) 20 – 20
Loss (gain) due to settlements and curtailments (8) – (8) (203) – (203)
Net periodic benefit cost 260 189 71 310 288 22
Germany 189 189 288 288
U.S. 20 20 (48) (48)
U.K. (2) (2) 13 13
Other 53 53 57 57
In addition to net periodic benefit cost for continuing opera-
tions presented in the table above, €() million and € mil-
lion were recognized for Siemens IT Solutions and Services
and for OSRAM for the years ended September ,  and
. The amount of €() million for the year ended Septem-
ber , , includes € million settlement gain resulting
from the disposal of pension liabilities of Siemens IT Solutions
and Services.
Line item Net periodic benefit cost in fiscal , in the table
above, includes a € million curtailment gain resulting from
a freeze of two defined benefit pension plans in the U.S. Em-
ployees will keep benefits earned, however, will not earn fu-
ture benefits under these plans. Instead, employer contribu-
tions will be made to existing defined contribution plans.