Siemens 2013 Annual Report Download - page 303

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 COMPREHENSIVE INCOME,
NET OF INCOME TAXES
The changes in line item Other comprehensive income, net of
income taxes including non-controlling interest holders are as
follows:
OTHER CHANGES IN EQUITY
Line item Other changes in equity of the Consolidated State-
ment of Changes in Equity includes € million in fiscal 
which relate to the equity instruments of the US$ bonds with
warrants issued in fiscal . After completion of the spin-off
of OSRAM in fiscal , those warrants entitle the holders to
obtain OSRAM shares in addition to Siemens shares. As a con-
sequence, the warrants no longer qualify as equity instru-
ments. The warrants’ fair value of € million was reclassified
from line item Capital reserve to non-current other financial li-
abilities as of the date of the approval at the Annual Sharehold-
ers’ Meeting.
MISCELLANEOUS
Under the German Stock Corporation Act (Aktiengesetz), the
amount of dividends available for distribution to shareholders
is based upon the earnings of Siemens AG as reported in its
statutory financial statements determined in accordance with
the German Commercial Code (Handelsgesetzbuch). In fiscal
, Siemens AG management distributed an ordinary divi-
dend of €, million (€. per share) of the fiscal  earn-
ings to its shareholders. In fiscal , Siemens AG manage-
ment distributed to its shareholders an ordinary dividend of
€, million (€. per share) of the fiscal  earnings.
Year ended September 30, 2013 Year ended September 30, 2012
(in millions of €) Pretax Tax effect Net Pretax Tax effect Net
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans 543 (149) 394 (3,017) 1,231 (1,787)
Items that may be reclassified subsequently to profit or loss:
Unrealized holding gains (losses) on available-for-sale financial assets 182 (3) 179 305 (10) 295
Reclassification adjustments for gains (losses) included in net income 4 1 4 (86) – (86)
Net unrealized gains (losses) on available-for-sale financial assets 185 (2) 183 219 (10) 209
Unrealized gains (losses) on derivative financial instruments 142 (48) 94 (64) 29 (35)
Reclassification adjustments for gains (losses) included in net income (70) 21 (50) 144 (46) 98
Net unrealized gains (losses) on derivative financial instruments 72 (27) 45 79 (17) 63
Foreign-currency translation differences (1,062) – (1,062) 855 – 855
(805) (29) (834) 1,153 (27) 1,127
Other comprehensive income (262) (178) (440) (1,865) 1,204 (661)
The Managing Board and the Supervisory Board proposed
a dividend of €. per share of the fiscal  Siemens AG
earnings, in total representing approximately €. billion in
expected payments. Payment of the proposed dividend is con-
tingent upon approval by the shareholders at the Annual
Shareholders’ Meeting on January , .
NOTE  Additional capital disclosures
Siemens believes that sustainable revenue and profit devel-
opment can be achieved only on the basis of a healthy capital
structure. A key consideration of our capital structure man-
agement is maintaining ready access to the capital markets
through various debt products and preservation of our ability
to repay and service our debt obligations over time. Siemens
set a capital structure target range of . – .. The ratio is
defined as the item Adjusted industrial net debt divided by
the item Adjusted EBITDA (continuing operations). This
financial performance measure indicates the approximate
amount of time in years that would be needed to pay off
Adjusted industrial net debt through continuing income,
without taking into account interest, taxes, depreciation and
amortization.