Siemens 2013 Annual Report Download - page 293

253 D. Consolidated Financial Statements 357 E. Additional Information
254 D.1 Consolidated Statements of Income
255 D.2 Consolidated Statements of Comprehensive Income
256 D.3 Consolidated Statements of Financial Position
257 D. Consolidated Statements of Cash Flows
258 D.5 Consolidated Statements of Changes in Equity
260 D.6 Notes to Consolidated Financial Statements
348 D.7 Supervisory Board and Managing Board

OTHER FINANCIAL INDEBTEDNESS
Item Other financial indebtedness includes € million and
€ million as of September ,  and , respectively,
for the Company ’s real estate assets that were sold or trans-
ferred and in which Siemens has retained significant risks and
rewards of ownership, including circumstances in which
Siemens participates directly or indirectly in the change in
market value of the property. Therefore, these transactions
have been accounted for as financing obligations. These real
estate properties are carried on the Company ’s Consolidated
Statements of Financial Position and no sale and profit has
been recognized.
OBLIGATIONS UNDER FINANCE LEASES
September 30, 2013
Minimum
future lease
payment
obligation
Unamortized
interest
expense
Present value
of minimum
future lease
payment
obligation
(in millions of €)
Due
Within one year 32 12 20
After one year but not
more than five years 94 9 86
More than five years 78 53 25
Total 204 74 130
Less: Current portion (20)
110
September 30, 2012
Minimum
future lease
payment
obligation
Unamortized
interest
expense
Present value
of minimum
future lease
payment
obligation
(in millions of €)
Due
Within one year 47 14 33
After one year but not
more than five years 62 11 51
More than five years 132 55 76
Total 241 80 161
Less: Current portion (33)
128
NOTE  Post-employment benefits
Post-employment benefits provided by Siemens are orga-
nized through defined benefit plans as well as defined con-
tribution plans which cover almost all of the Company ’s
domestic employees and the majority of the Company ’s for-
eign employees. Post-employment defined benefit plans in-
clude pension benefits and other post-employment benefits,
which primarily consist of transition payments to German
employees after retirement as well as post-employment
health care and life insurance benefits to employees in the
U.S. and Canada.
DEFINED BENEFIT PLANS
Siemens regularly reviews the design of its post-employment
defined benefit plans. In order to reduce the Company ’s expo-
sure to certain risks associated with defined benefit plans,
such as longevity, inflation, effects of compensation increases,
the Company implemented new defined benefit plans in some
of Siemens’ major countries including Germany, the U.S. and
the U.K. during the last several years. The benefits of these
new defined benefit plans are based predominantly on contri-
butions made by the Company and are still affected by longev-
ity, inflation adjustments and compensation increases, but on-
ly to a minor extent. The Company ’s major defined benefit
plans are funded with assets in segregated entities. The de-
fined benefit plans cover , participants, including
, active employees, , former employees with vest-
ed benefits and , retirees and surviving dependents. In-
dividual benefits are generally based on eligible compensation
levels and/or ranking within the Company hierarchy and years
of service. The characteristics of the defined benefit plans and
the risks associated with them vary depending on legal, fiscal
and economic requirements in each country. For the major
defined benefit plans of Siemens the characteristics and risks
are as follows:
Germany:
In Germany, Siemens AG provides pension benefits through
the cash-balance plan BSAV (Beitragsorientierte Siemens
Altersversorgung), frozen legacy plans and deferred compen-
sation plans. The majority of Siemens’ active employees in
Germany participate in the BSAV introduced in fiscal ,
which is a funded defined benefit pension plan whose bene-
fits are predominantly based on contributions made by the
Company and returns earned on such contributions, subject
to a minimum return guaranteed by the Company. The BSAV is
funded via a contractual trust arrangement (CTA), the BSAV