Siemens 2013 Annual Report Download - page 306

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report
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Item Other includes indemnifications issued in connection
with dispositions of business entities. Such indemnifications,
if customary to the relevant transactions, may protect the buy-
er from potential tax, legal and other risks in conjunction with
the purchased business entity. Indemnifications include those
for EN, disposed of in fiscal , and Siemens IT Solutions
and Services disposed of in fiscal . As of September ,
 and , the total amount accrued for guarantees in item
Other is € million and € million, respectively. Item Oth-
er guarantees decreased in fiscal , mainly due to the expi-
ration of indemnifications issued in connection with disposi-
tions of business entities.
As of September , , in addition to guarantees disclosed
above, Siemens had credit guarantees of € million, guaran-
tees of third-party performance of € million and other guar-
antees of € million (as of September , , € million) re-
lating to discontinued operations. Contingencies relating to
businesses held for disposal not classified as discontinued op-
erations are included in the above tabular.
As of September ,  and , future payment obligations
under non-cancellable operating leases are as follows:
September 30,
(in millions of €) 2013 2012
Within one year 807 812
After one year but not more than five years 1,556 1,586
More than five years 757 770
3,120 3,168
Total operating rental expense for the years ended September
,  and  were €, million and €, million, re-
spectively. Total sublease income amounts to € million and
€ million, respectively in fiscal  and . Total future
minimum sublease payments expected to be received under
non-cancellable subleases as of September ,  and 
amount to € million and € million, respectively.
As of September ,  and , the Company has commit-
ments to make capital contributions to the equity of various
companies of € million and € million, respectively.
The Company is jointly and severally liable and has capital con-
tribution obligations as a partner in commercial partnerships
and as a participant in various consortiums.
NOTE  Legal proceedings
PUBLIC CORRUPTION PROCEEDINGS
Governmental and related proceedings
As previously reported, in May  Siemens AG voluntarily re-
ported a case of attempted public corruption in connection
with a project in Kuwait in calendar  to the U.S. Depart-
ment of Justice, the SEC, and the Munich public prosecutor.
The Munich public prosecutor discontinued the investigations,
which related to certain former employees, but imposed condi-
tions on them. Siemens is cooperating with the U.S. authori-
ties in their ongoing investigations.
As previously reported, in July  the Nuremberg-Fuerth
public prosecutor notified Siemens AG of an investigation
against several employees in connection with payments relat-
ed to the healthcare business in the Caribbean. In November
, the Nuremberg-Fuerth public prosecutor discontinued
its investigation.
As previously reported, in July  the Munich public prosecu-
tor notified Siemens AG of an investigation against a former
employee in connection with payments to a supplier related to
the oil and gas business in Central Asia from calendar  to
. Siemens is cooperating with the public prosecutor.
As previously reported, in October , the Turkish Prime
Ministry Inspection Board notified Siemens Sanayi ve Ticaret
A.S., Turkey, of an investigation in connection with alleged
bribery in Turkey and Iraq from calendar  to . Siemens
is cooperating with the authority.
In February , Siemens AG and the European Investment
Bank (EIB) signed a settlement agreement addressing alleged
past violations of the EIB’s anti-fraud policy. The settlement in-
cludes a commitment by Siemens that the concerned business
unit will voluntarily refrain from bidding on projects financed
by the EIB for a period of  months. Further, Siemens com-
mits to provide funds, totaling €. million over five years, to
organizations or institutions that promote good governance
and the fight against corruption.
Since July , following the voluntary self-reporting of cer-
tain facts by Siemens Ltda. Brazil to the Brazilian antitrust au-
thorities in May  mentioned below, several Brazilian pros-
ecutorial offices have initiated or resumed investigations into
alleged criminal conduct, including alleged bribe payments,
anticompetitive conduct and undue influencing of public ten-
ders, in connection with several metro transport projects.
Among the resumed investigations are in particular two cases