Siemens 2014 Annual Report Download - page 286

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
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Disaggregation of plan assets
The asset allocation of the plan assets of the defined benefit
plans is as follows:
September ,
(in millions of €)  
Asset class
Equity securities 7,050 6,604
U.S. equities 1,463 1,416
European equities 2,030 2,214
Emerging markets 1,611 1,457
Global equities 1,947 1,517
Fixed income securities 14,694 12,768
Government bonds 4,216 3,003
Corporate bonds 10,479 9,765
Alternative investments 3,174 2,961
Hedge Funds 1,211 978
Private Equity 626 497
Real estate 1,337 1,487
Derivatives 646 175
Interest risk 1,149 263
Foreign currency risk (45) 53
Credit / Inflation / Price risks (458) (141)
Cash and cash equivalents 456 1,148
Other assets 485 422
Total 26,505 24,078
Virtually all equity securities have quoted prices in active mar-
kets. The fair value of fixed income securities is based on prices
provided by price service agencies. The fixed income securities
are traded in highly liquid markets and almost all fixed income
securities are investment grade. In addition, the asset class
Other assets includes assets with quoted prices in active mar-
kets in the amount of €  million and €  million as of Septem-
ber ,  and .
As of September , , the major part of cash and cash
equivalents is marked as cash in transition into corporate bond
mandates.
The plan assets include own transferable financial instruments
of the Company with a fair value of €  million and €  mil-
lion as of September ,  and .
Future cash flows
Employer contributions expected to be paid to the post-em-
ployment defined benefit plans in fiscal  are €  million.
At the end of fiscal  the Company expected to pay €  mil-
lion employer contributions for fiscal .
Expected benefit payments
(in millions of €) September , 
 1,687
 1,659
 1,668
 1,706
 1,725
 –  9,069
(in millions of €) September , 
 1,647
 1,613
 1,624
 1,668
 1,713
 –  8,958
The weighted average duration of the DBO for Siemens defined
benefit plans was  years as of September ,  and .
MULTI-EMPLOYER DEFINED BENEFIT PLANS
Multi-employer plans mainly exist in the Netherlands and in
the U.S. These plans are industry specific plans based on local
laws, which are accounted for as defined contribution plans as
Siemens has no right to obtain the necessary data for defined
benefit plan accounting. These plans may expose the Company
to investment and actuarial risk in case of a deficit.
In the Netherlands the Company is not liable for other enti-
ties’ obligations under the terms and conditions of the multi-
employer plan.
In the U.S. the Company may be liable for other entities’ obliga-
tions in case of failure of other participating employers to make
required contributions. In case of withdrawal from a plan the
Company may be subject to a liability for the potential future
statutory underfunding for its share in the plan. The Company
has only a minor share in these plans compared to other partic-
ipating entities and has no intention to withdraw from one of
these plans.
Siemens is not aware of any probable significant risk due to
multi-employer defined benefit plans accounted for as defined
contribution plans.
Siemens expects contributions to multi-employer defined ben-
efit plans accounted for as defined contribution plans for the
next fiscal year of €  million.