Siemens 2013 Annual Report Download - page 325

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

newly issued shares of capital stock of Siemens AG, treasury
shares or in cash. The settlement method will be determined
by the Managing Board. Each fiscal year, the Managing Board
decides whether or not to issue a new tranche under the Share
Matching Plan.
. Monthly Investment Plan
In fiscal  and , the Company issued a new tranche un-
der the Monthly Investment Plan that is a further component
of the Share Matching Plan and which is available for employ-
ees – other than senior managers – of Siemens AG and partic-
ipating Siemens companies. Plan participants may invest a
specified percentage of their compensation in Siemens shares
on a monthly basis over a period of twelve months. The shares
are purchased at market price at a predetermined date once a
month. The Managing Board of the Company will decide an-
nually, whether shares acquired under the Monthly Invest-
ment Plan (investment shares) may be transferred to the
Share Matching Plan the following year. If the Managing
Board decides that shares acquired under the Monthly Invest-
ment Plan are transferred to the Share Matching Plan, plan
participants will receive the right to matching shares under
the same conditions applying to the Share Matching Plan de-
scribed above. Each fiscal year the Managing Board decides,
whether or not to issue a new tranche under the Monthly In-
vestment Plan.
The Managing Board decided that shares acquired under the
tranches issued in fiscal  and  are transferred to the
Share Matching Plan as of February  and February ,
respectively.
. Base Share Program
In fiscal  and , the Company issued a new tranche un-
der the Base Share Program. Employees of Siemens AG and
participating domestic Siemens companies can invest a fixed
amount of their compensation into Siemens shares, sponsored
by Siemens with a tax beneficial allowance. The shares are
bought at market price at a predetermined date in the second
quarter and grant the right to receive matching shares under
the same conditions applying to the Share Matching Plan de-
scribed above. Each fiscal year, the Managing Board decides
whether or not to issue a new tranche under the Base Share
Program. The fair value of the base share program equals the
amount of the tax beneficial allowance sponsored by Siemens.
In fiscal  and , the Company incurred pretax expense
from continuing operations of € million and € million, re-
spectively.
. Resulting Matching Shares
Year ended September 30,
2013 2012
Entitlements to
Matching Shares
Entitlements to
Matching Shares
Outstanding, beginning of period 1,545,582 1,977,091
Granted 713,245 706,354
Vested and transferred (351,548) (1,037,292)
Forfeited (140,307) (57,596)
Settled (33,475) (42,975)
Outstanding, end of period 1,733,497 1,545,582
Fair value was determined as the market price of Siemens
shares less the present value of expected dividends during the
vesting period as matching shares do not carry dividend rights
during the vesting period. Non-vesting conditions, i.e. the
condition neither to transfer, sell, pledge nor otherwise en-
cumber the underlying shares, were considered in determin-
ing the fair value. In fiscal  and , the weighted aver-
age grant-date fair value of the resulting matching shares is
€. and €. per share respectively, based on the number
of instruments granted.
JUBILEE SHARE PROGRAM
Under the Jubilee Share Program, eligible employees of
Siemens AG and participating domestic Siemens companies re-
ceive jubilee shares after having been continuously employed
by the Company for  and  years (vesting period), respec-
tively. Generally, settlement of jubilee grants is in shares. Jubi-
lee shares are measured at fair value considering biometrical
factors. The fair value is determined as the market price of
Siemens shares at grant date less the present value of divi-
dends expected to be paid during the vesting period for which
the employees are not entitled to. The weighted average fair
value of each jubilee share granted in fiscal  for the 
th
and the 
th
anniversary is €. and €., respectively,
based on the number of shares granted. The weighted average
fair value of each jubilee share granted adjusted by biometrical
factors (considering fluctuation) is €. and €., respec-
tively, in fiscal . The weighted average fair value of each
jubilee share granted in fiscal  for the 
th
and the 
th
an-
niversary is €. and €. respectively, based on the num-
ber of shares granted. The weighted average fair value of each
jubilee share granted adjusted by biometrical factors (consider-
ing fluctuation) is €. and €. respectively, in fiscal .