Siemens 2014 Annual Report Download - page 288

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report
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equipment and installations, decontamination of the facilities
and buildings, sorting of radioactive materials, and inter-
mediate and final storage of the radioactive waste. This process
will be supported by continuing engineering studies and radio-
active sampling under the supervision of German federal and
state authorities. The decontamination, disassembly and final
waste conditioning are planned to continue until ; there-
after, the Company is responsible for intermediate storage of
the radioactive materials until a final storage facility is avail-
able. With respect to the Hanau facility, the process of setting
up intermediate storage for radioactive waste has nearly
reached completion; on September , , the Company
received official notification from the authorities that the
Hanau facility has been released from the scope of application
of the German Atomic Energy Act and that its further use is
unrestricted. The ultimate costs of the remediation are contin-
gent on the decision of the federal government on the location
of the final storage facilities and the date of their availability.
Consequently, the provision is based on a number of significant
estimates and assumptions. Several parameters relating to the
development of a final storage facility for radioactive waste are
based on the assumptions for the so called Schacht Konrad
final storage. Parameters related to the life-span of the German
nuclear reactors reflect a planned phase-out until . The val-
uation uses assumptions to reflect the current and detailed cost
estimates, price inflation and discount rates as well as a contin-
uous outflow until the ’s related to the costs for disman-
tling as well as intermediate and final storage.
Using the input of an independent advisor, management up-
dated its valuation of the liability due to changes in estimates
which resulted in minor adjustments in fiscal  and .
The determination of the provisions related to major asset
retire ment obligations will continue to involve significant esti-
mates and assumptions. Uncertainties surrounding the amount
to be recognized include, for example, the estimated costs of
decommissioning and final storage because of the long time
frame over which future cash outflows are expected to occur.
Amongst others, the estimated cash outflows related to the
asset retirement obligation could alter significantly if, and
when, political developments affect the government’s plans to
develop the so called Schacht Konrad. As of September ,
 and , the provision totals € , million and
€ , million, respectively, and is recorded net of a present
value discount of €  million and € , million, respectively
reflecting the assumed continuous outflow of the total
expected payments until the ’s.
The Company recognizes the accretion of the provision for en-
vironmental clean-up costs using the effective interest method
applying current interest rates prevailing at the period-end
date. In fiscal  and , the Company recognized €  mil-
lion and €  million, respectively, in accretion expense for
environmental clean-up costs in line item Other Financial
income (expenses), net. Changes in discount rates increased
the carrying amount of provisions by €  million as of Sep-
tember ,  and decreased it by €  million as of Septem-
ber , .
Other – Other includes transaction-related and post-closing
provisions in connection with portfolio activities as well as pro-
visions for legal and regulatory matters.
NOTE  Other liabilities
September ,
(in millions of €)  
Employee related liabilities 550 604
Liabilities due to employees and retirees
in the U.S. not qualifying for presentation
as Post-employment benefits 618 534
Deferred income 228 275
Accruals for pending invoices 76 96
Severance payments 118 133
German pension insurance association –
Pensionssicherungsverein (PSV) 34 39
Insurance liabilities 39 76
Other 210 317
1,874 2,074