Siemens 2014 Annual Report Download - page 273

247 D. Consolidated Financial Statements 337 E. Additional Information
248 D. Consolidated Statements of Income
249 D. Consolidated Statements of Comprehensive Income
250 D. Consolidated Statements of Financial Position
251 D. Consolidated Statements of Cash Flows
252 D. Consolidated Statements of Changes in Equity
254 D. Notes to Consolidated Financial Statements
330 D. Supervisory Board and Managing Board

Investments in finance leases primarily relate to industrial
machinery, medical equipment, transportation systems, equip-
ment for information technology and office machines. Actual
cash flows will vary from contractual maturities due to future
sales of finance receivables, prepayments and write-offs.
NOTE  Other current financial assets
September ,
(in millions of €)  
Derivative financial instruments 458 435
Loans receivable 2,111 1,861
Other 1,141 954
3,710 3,250
NOTE  Inventories
September ,
(in millions of €)  
Raw materials and supplies 2,389 2,476
Work in process 3,436 3,502
Costs and earnings in excess of billings
on uncompleted contracts 8,329 8,604
Finished goods and products held for resale 2,312 2,311
Advances to suppliers 528 707
16,994 17,601
Advance payments received (1,895) (2,040)
15,100 15,560
Cost of sales include inventories recognized as expense
amounting to € , million and € , million, respec-
tively, in fiscal  and . Raw materials and supplies, work
in process as well as finished goods and products held for re-
sale are valued at the lower of acquisition or production cost
and net realizable value. The respective write-downs, as com-
pared to prior year, increased by €  million and €  million as
of September ,  and .
Item Costs and earnings in excess of billings on uncompleted
contracts relates to construction contracts, with net asset bal-
ances where contract costs plus recognized profits less recog-
nized losses exceed progress billings. Construction contracts,
here and as follows, include service contracts accounted for
under the percentage of completion method. Liabilities from
contracts for which progress billings exceed costs and recog-
nized profits less recognized losses are recognized in line item
Other current liabilities.
The aggregate amount of costs incurred and recognized profits
less recognized losses for construction contracts in progress,
as of September ,  and  amounted to € , mil-
lion and € , million, respectively. Revenue from construc-
tion contracts amounted to € , million and € , mil-
lion, respectively, for fiscal  and .
Advance payments received on construction contracts in prog-
ress were € , million and € , million as of Septem-
ber ,  and . Retentions in connection with construc-
tion contracts were €  million and €  million in fiscal 
and , respectively.
NOTE  Other current assets
September ,
(in millions of €)  
Miscellaneous tax receivables 707 735
Prepaid expenses 229 227
Other 354 335
1,290 1,297