Siemens 2014 Annual Report Download - page 290

108 A. To our Shareholders 131 B. Corporate Governance 171 C. Combined Management Report

TREASURY SHARES
Until January , , the Company is authorized by its share-
holders to acquire treasury shares of up to  % of its capital
stock as of the date of the shareholders’ resolution or, if this
value is less,  % of capital stock as of the date on which the
authorization is exercised. Repurchased shares may only be
used for purposes stipulated in the Articles of Association of
Siemens AG.
In November , Siemens announced a share buyback of up
to €  billion ending latest on October , . Buybacks are
made under the current authorization, which allows for further
share repurchases of a maximum of . million shares as
of the date of the buyback announcement. Siemens started to
repurchase shares in May .
In fiscal  and , Siemens repurchased ,, trea-
sury shares and ,, treasury shares at average costs per
share of € . and € ., respectively. In fiscal  and
, Siemens transferred ,, shares and ,,
shares, respectively, in connection with share-based payment
plans. As of September ,  and , the Company has
treasury shares of ,, and ,,, respectively.
OTHER COMPREHENSIVE INCOME,
NET OF INCOME TAXES
The changes in line item Other comprehensive income, net of
income taxes including non-controlling interest holders are as
follows:
Year ended September ,  Year ended September , 
(in millions of €) Pretax Tax effect Net Pretax Tax effect Net
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans 39 249 288 543 (149) 394
Items that may be reclassified subsequently to profit or loss:
Unrealized holding gains (losses) on available-for-sale financial assets (31) (13) (44) 182 (3) 179
Reclassification adjustments for gains (losses) included in net income (12) – (12) 4 1 4
Net unrealized gains (losses) on available-for-sale financial assets (43) (13) (56) 185 (2) 183
Unrealized gains (losses) on derivative financial instruments (394) 92 (301) 142 (48) 94
Reclassification adjustments for gains (losses) included in net income (24) 10 (14) (70) 21 (50)
Net unrealized gains (losses) on derivative financial instruments (418) 102 (316) 72 (27) 45
Foreign-currency translation differences 940 – 940 (1,062) – (1,062)
480 89 569 (805) (29) (834)
Other comprehensive income 519 338 857 (262) (178) (440)
MISCELLANEOUS
Under the German Stock Corporation Act (Aktiengesetz), the
amount of dividends available for distribution to shareholders
is based upon the earnings of Siemens AG as reported in its
statutory financial statements determined in accordance with
the German Commercial Code (Handelsgesetzbuch). In fiscal
, Siemens AG management distributed to its shareholders
an ordinary dividend of € , million (€ . per share) of
the fiscal  earnings to its shareholders. In fiscal ,
Siemens AG management distributed an ordinary dividend of
€ , million (€ . per share) of the fiscal  earnings to
its shareholders.
The Managing Board and the Supervisory Board proposed a div-
idend of € . per share of the fiscal  Siemens AG earnings,
in total representing approximately €. billion in expected
payments. Payment of the proposed dividend is contingent
upon approval by the shareholders at the Annual Shareholders’
Meeting on January , .
NOTE  Additional capital disclosures
Siemens believes that sustainable revenue and profit develop-
ment is supported by a healthy capital structure. A key consid-
eration of our capital structure management is to maintain
ready access to the capital markets through various debt prod-
ucts and to preserve our ability to repay and service our debt
obligations over time. In fiscal , Siemens set a capital struc-
ture target range of . – .. The ratio is defined as the item
Industrial net debt divided by the item Adjusted EBITDA
( continuing operations). This financial performance measure