Siemens 2013 Annual Report Download - page 284

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report

The gross investment in leases and the present value of mini-
mum future lease payments receivable are due as follows:
September ,
(in millions of €)  
Gross investment in leases 6,034 5,850
Within one year 2,345 2,388
One to five years 3,472 3,248
Thereafter 218 214
Present value of minimum future
lease payments receivable 5,176 4,942
Within one year 1,946 2,012
One to five years 3,035 2,743
Thereafter 195 187
Investments in finance leases primarily relate to industrial ma-
chinery, medical equipment, transportation systems, equip-
ment for information technology and office machines. Actual
cash flows will vary from contractual maturities due to future
sales of finance receivables, prepayments and write-offs.
NOTE  Other current financial assets
September ,
(in millions of €)  
Derivative financial instruments 435 530
Loans receivable 1,646 1,197
Other 1,169 1,174
3,250 2,901
NOTE  Inventories
September ,
(in millions of €)  
Raw materials and supplies 2,476 2,629
Work in process 3,502 3,496
Costs and earnings in excess of
billings on uncompleted contracts 8,604 8,005
Finished goods and products held for resale 2,311 2,643
Advances to suppliers 707 953
17,601 17,726
Advance payments received (2,040) (2,047)
15,560 15,679
Cost of sales rendered include inventories recognized as ex-
pense amounting to €, million and €, million, re-
spectively, in fiscal  and . Raw materials and supplies,
work in process as well as finished goods and products held for
resale are valued at the lower of acquisition / production cost
and net realizable value. The respective write-downs, as com-
pared to prior year, increased by € million and € million as
of September ,  and .
Item Costs and earnings in excess of billings on uncompleted
contracts relates to construction contracts, with net asset bal-
ances where contract costs plus recognized profits less recog-
nized losses exceed progress billings. Construction contracts,
here and as follows, include service contracts accounted for
under the percentage of completion method. Liabilities from
contracts for which progress billings exceed costs and recog-
nized profits less recognized losses are recognized in line item
Other current liabilities.
The aggregate amount of costs incurred and recognized profits
less recognized losses for construction contracts in progress,
as of September ,  and  amounted to €, mil-
lion and €, million, respectively. Revenue from construc-
tion contracts amounted to €, million and €, mil-
lion, respectively, for fiscal  and .
Advance payments received on construction contracts in prog-
ress were €, million and €, million as of September ,
 and . Retentions in connection with construction con-
tracts were € million and € million in fiscal  and .
In the fourth quarter of fiscal , Siemens revised project
calculations for long-term contracts with customers in Iran in
accordance with accounting guidance for construction and
service contracts. The resulting adjustments reduced income
from continuing operations before income tax expenses by €
million.
NOTE  Other current assets
September ,
(in millions of €)  
Miscellaneous tax receivables 735 668
Prepaid expenses 227 262
Other 335 346
1,297 1,277