Siemens 2013 Annual Report Download - page 295

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

of the pension fund is responsible for the investment policy
with regard to the assets of the fund, changes of the plan rules
and it determines the necessary contributions to finance the
benefits. The plan is a cash balance plan and the Company is
required to make contributions at least as high as the pre-de-
termined employee contributions set out in the plan rules. The
plans expose the Company to actuarial risks such as invest-
ment risk, interest rate risk, longevity risk and salary increase
risk. Employer and plan participants’ contributions are deter-
mined by the respective foundation boards. About % of the
necessary contributions are financed by the employees. In the
case of a shortfall, the employer and plan participants’ contri-
bution might be increased according to decisions of the rele-
vant foundation board. Strategies of the foundation boards to
make up for potential shortfalls are subject to approval by the
regulator.
The amounts included in the Company ’s Consolidated Finan-
cial Statements arising from its post-employment defined ben-
efit plans are as follows:
Defined benefit
obligation (DBO)
Fair value
of plan assets
Effects in connection
with asset ceiling
Net defined
benefit balance
September 30, September 30, September 30, September 30,
(in millions of €) 2013 2012 2013 2012 2013 2012 2013 2012
Germany 20,367 20,339 14,017 13,956 ––(6,350) (6,383)
U.S. 3,769 4,324 2,575 2,819 ––(1,194) (1,505)
U.K. 4,455 4,006 4,022 3,758 (65) (104) (498) (352)
CH 2,828 2,985 2,489 2,437 (49) (47) (388) (594)
Other 1,753 1,996 975 1,086 (32) (19) (810) (930)
Total 33,173 33,650 24,078 24,057 (146) (170) (9,241) (9,764)
The net defined benefit balance of €, million and €,
million as of September ,  and  comprises €,
million and €, million net defined benefit liability and €
million and € million net defined benefit asset, respectively.
Defined benefit costs are as follows:
Year ended September 30,
(in millions of €) 2013 2012
Current service cost 510 437
Past service (benefit) cost (9) (124)
Settlement (gains) losses (7) (38)
Net interest expenses 297 310
Net interest income (3) (8)
Liability administration expenses 16 26
Components of defined benefit
costs recognized in the Consolidated
Statements of Income 803 604
Return on plan assets (excluding
amounts included in net interest
expenses and net interest income) (504) (2,308)
Actuarial (gains) and losses (50) 5,048
Effect from asset ceiling (23) (5)
Remeasurements of defined benefit
plans recognized in the Consolidated
Statements of Comprehensive Income (577) 2,734
Defined benefit costs 226 3,338
A reconciliation of the funded status to the amounts recog-
nized in the Consolidated Statements of Financial Position is
as follows:
September 30,
(in millions of €) 2013 2012
Defined benefit obligation
of pension benefit plans 32,594 32,965
Defined benefit obligation
of other post-employment benefit plans 579 685
Total defined benefit obligation 33,173 33,650
Fair value of plan assets
of pension benefit plans 24,073 24,052
Fair value of plan assets
of other post-employment benefit plans 55
Total fair value of plan assets 24,078 24,057
Funded status of pension benefit plans (8,520) (8,914)
Funded status
of other post-employment benefit plans (575) (680)
Total funded status (excluding
effects in connection with asset ceiling) (9,095) (9,593)