Siemens 2013 Annual Report Download - page 296

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report

The Company ’s defined benefit plans are explicitly explained
in the subsequent sections with regard to:
> Reconciliation of defined benefit obligations
and plan assets,
> Actuarial assumptions,
> Sensitivity analysis,
> Asset-liability matching strategies,
> Disaggregation of plan assets, and
> Future cash flows.
Reconciliation for defined benefit obligations
and plan assets
A detailed reconciliation for the changes in the DBO for fiscal
 and  is provided in the following table:
September 30,
(in millions of €) 2013 2012
Change in defined benefit obligations:
Defined benefit obligation at beginning of year 33,650 27,849
Current service cost 510 437
Past service (benefit) cost (9) (124)
Settlement (gains) losses (7) (38)
Interest expenses 1,036 1,247
Remeasurements:
Actuarial (gains) losses from
changes in demographic assumptions 43 208
Actuarial (gains) losses from
changes in financial assumptions (249) 4,680
Experience (gains) losses 156 159
Plan participants’ contributions 105 118
Benefits paid (1,622) (1,585)
Settlement payments (67) (17)
Business combinations, disposals and other 135 207
Foreign currency translation effects (508) 508
Defined benefit obligation at end of year 33,173 33,650
The total defined benefit obligation at the end of fiscal 
includes €, million for active employees, €, million
for former employees with vested benefits and €, million
for retirees and surviving dependents.
A detailed reconciliation of the changes in the fair value of plan
assets for fiscal  and  is provided in the following table:
September 30,
(in millions of €) 2013 2012
Change in plan assets:
Fair value of plan assets at beginning of year 24,057 20,969
Interest income 750 952
Remeasurements:
Return on plan assets excluding
amounts included in net interest income
and net interest expenses 504 2,308
Employer contributions 536 586
Plan participants’ contributions 105 118
Benefits paid (1,480) (1,470)
Settlement payments (67) (19)
Business combinations, disposals and other 87 189
Liability administration costs (16) (26)
Foreign currency translation effects (398) 448
Fair value of plan assets at end of year 24,078 24,057
Actuarial assumptions
Assumed discount rates, compensation increase rates, pen-
sion progression rates and mortality rates used in calculating
the DBO vary according to the economic and other conditions
of the country in which the retirement plans are situated.
The weighted-average discount rate as well as the mortality
tables used for the actuarial valuation of the DBO at period-end
were as follows:
Year ended September 30,
2013 2012
Discount rate 3.4% 3.2%
Germany 3.1% 3.1%
U.S. 3.7% 2.9%
U.K. 4.5% 4.4%
CH 2.1% 1.7%
Mortality tables
(most significant countries):
Germany Heubeck Richttafeln 2005G
U.S. RP2000 Combined Healthy Fully
Generational Mortality Table
U.K. S1PxA (Standard mortality tables for
Self Administered Pension Schemes
(SAPS) with allowance for future
mortality improvements)
CH BVG 2010 G