Siemens 2013 Annual Report Download - page 203

253 D. Consolidated Financial Statements
357 E. Additional Information
245 C. Compensation Report, Corporate Governance
statement pursuant to Section a of the
German Commercial Code, Takeover-relevant
information and explanatory report
246 C. Siemens AG ( Discussion on basis of
German Commercial Code)
250 C. Notes and forward-looking statements

Other guarantees amounted to €. billion as of September
,  and included indemnifications issued in connection
with dispositions of business entities. Such indemnifications,
if customary to the relevant transactions, may protect the buy-
er from potential tax, legal and other risks in conjunction with
the purchased business entity. Indemnifications include those
for EN, disposed of in fiscal , and Siemens IT Solutions
and Services disposed of in fiscal . In the event that it
becomes probable that Siemens will be required to satisfy
these guarantees, provisions are established. Such provisions
are established in addition to the liabilities recognized for the
non- contingent component of the guarantees.
Capital commitments – As of September , , the Compa-
ny had commitments to make capital contributions to various
companies of € million.
For additional information with respect to guarantees and our
other commitments, see NOTE  in D. NOTES TO CONSOLI-
DATED FINANCIAL STATEMENTS.
C... POST-EMPLOYMENT BENEFITS
As of September , , the combined funded status of
Siemens’ pension plans showed an underfunding of €. bil-
lion, compared to an underfunding of €. billion as of Sep-
tember , . While the fair value of plan assets remained
unchanged, the defined benefit obligation (DBO) decreased by
€. billion.
The DBO of Siemens’ pension plans, which takes into account
future compensation and pension increases, amounted to €.
billion on September , , compared to a DBO of €. bil-
lion at the end of the prior fiscal year. The decrease resulted
from benefits paid and positive currency translation effects, on-
ly partly offset by accrued service and interest cost. Effects from
assumption changes and deviations between actual and as-
sumed development of the DBO offset each other in fiscal .
The fair value of Siemens’ plan assets was €. billion, as of
both September ,  and September , . The actual
return on plan assets for fiscal  amounted to €. billion,
resulting mainly from equity investments. Employer contribu-
tions amounted to €. billion. These positive factors were off-
set by benefits paid and negative currency translation effects.
The combined funded status of Siemens’ predominantly un-
funded other post-employment benefit plans amounted to an
underfunding of €. billion as of September , , com-
pared to an underfunding of €. billion at the end of the prior
fiscal year. The underfunding decreased mainly due to benefits
paid and the annual remeasurement of DBO.
For more information on Siemens’ pension plans, see NOTE 
in D. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
C... OTHER CAPITAL RESOURCES
AND REQUIREMENTS
At the Annual Shareholders’ Meeting scheduled for January
, , the Managing Board, in agreement with the Super-
visory Board, will submit the following proposal to allocate the
unappropriated net income of Siemens AG for the fiscal year
ended September , : distribution of a dividend of €.
on each no-par value share entitled to the dividend for fiscal
year  existing at the date of the Annual Shareholders’
Meeting, which is presently expected to result in total distribu-
tion of approximately €. billion.
In November , we announced that we will adjust our capi-
tal structure through share buybacks. We expect cash outflows
up to € billion within the next up to  months.
Other capital requirements also include expected cash out-
flows of €. billion in fiscal  relating to charges for the
“Siemens ” productivity improvement program.
After the end of fiscal , we signed an agreement to sell our
business for treating and processing municipal and industrial
water and wastewater that are bundled in our Water Technolo-
gies Business Unit, as well as the related service activities, to
funds managed by American European Associates Investors LP
(AEA), U.S. We expect to receive payments relating to this
transaction of €. billion in the first half of fiscal .
With our ability to generate positive operating cash flows, our
total liquidity of €. billion and our €. billion in unused
lines of credit and given our credit ratings at year-end, we be-
lieve that we have sufficient flexibility to fund our capital re-
quirements including scheduled debt service, regular capital
spending, ongoing cash requirements from operating and SFS
financing activities, dividend payments, pension plan funding
and portfolio activities. Also in our opinion, our working capi-
tal is sufficient for the Company ’s present requirements.
Funded status of Siemens’ pension plans (in billions of €) 
September ,  (8.5)
September ,  (8.9)
1 Continuing operations.