Siemens 2011 Annual Report Download - page 310

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance

 – Provisions
Warranties Order
related losses
and risks
Asset
retirement
obligations
Other Total
(in millions of €)
Balance as of October ,  3,591 2,017 1,053 1,809 8,470
Additions 1,632 1,094 7 1,157 3,890
Usage (835) (628) (9) (410) (1,882)
Reversals (845) (384) (11) (318) (1,558)
Translation differences 3 (13) – (5) (15)
Accretion expense and effect of changes in discount rates 2 10 90 3 105
Other changes (42) (79) – (67) (188)
Balance as of September ,  3,506 2,017 1,130 2,169 8,822
Thereof non-current 1,091 595 1,111 857 3,654
Warranties Order
related losses
and risks
Asset
retirement
obligations
Other Total
(in millions of €)
Balance as of October ,  3,000 1,662 816 1,484 6,962
Additions 1,797 1,129 1 851 3,778
Usage (718) (526) (10) (283) (1,537)
Reversals (554) (286) (62) (297) (1,199)
Translation differences 70 31 2 41 144
Accretion expense and effect of changes in discount rates 2 6 295 7 310
Other changes (6) 1 11 6 12
Balance as of September ,  3,591 2,017 1,053 1,809 8,470
Thereof non-current 1,103 642 1,033 554 3,332
In fiscal , item Other changes contains reclassifications to
line item Liabilities associated with assets classified as held for
disposal including the disposal of those entities of € million.
Except for asset retirement obligations (see discussion below),
the majority of the Company ’s provisions are generally expect-
ed to result in cash outflows during the next one to  years.
Warranties – mainly relate to products sold. See Note 
Summary of significant accounting policies at product related
expenses for further information concerning our policy for es-
timating warranty provisions.
Order related losses and risks – are provided for anticipated
losses and risks on uncompleted construction, sales and leas-
ing contracts.
In fiscal , Siemens reevaluated the commercial feasibility
of particle therapy for general patient treatment. Going for-
ward, Siemens will shift the focus of certain particle therapy
projects primarily to research. In accordance with project ac-
counting rules, Siemens took project charges and reduced
third-quarter revenue in Imaging & Therapy Systems of the
Healthcare Sector by the amount of revenue recognized from
the projects in prior periods and set up provisions. Total pre-
tax effects on the Consolidated Statement of Income in fiscal
 relating to the shifted focus in the third quarter of fiscal
 is € million including provisions for order related loss-
es and risks.
Asset retirement obligations – The Company is subject to
asset retirement obligations related to certain items of prop-
erty, plant and equipment. Such asset retirement obligations