Siemens 2014 Annual Report Download - page 295

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

It cannot be excluded that further significant damages claims
will be brought by customers or the state against Siemens based
on the outcome of the above mentioned investigations.
As previously reported, CADE is conducting – unrelated to the
above mentioned proceedings – two further investigations into
possible antitrust behavior in the field of gas-insulated and
air-insulated switchgear in the ’s calendar years to .
Siemens is cooperating with the authorities.
As previously reported, in August , a Brazilian Appellate
Court upheld a decision to suspend Siemens Ltda. Brazil from
participating in public tenders and signing contracts with
public administrations in Brazil for a five year term, based on
alleged irregularities in calendar  and  public tenders
with the Brazilian Postal Authorities. Siemens Ltda. Brazil has
further appealed the decision. In March , upon request of
Siemens Ltda. Brazil, said exclusion from public tenders and
contracts was temporarily suspended until a final court deci-
sion is reached.
As previously reported, the Vienna public prosecutor in Austria
is conducting an investigation into payments between calendar
 and calendar  relating to Siemens AG Österreich for
which adequate services rendered could not be identified. In
September , the Vienna public prosecutor extended the
investigations to include a tax evasion matter for which
Siemens AG Österreich is potentially liable. Siemens is cooper-
ating with the authorities.
As previously reported, the Inter-American Development Bank
(IADB) conducted administrative proceedings in two Latin-
American countries against, among others, Siemens alleging
misconduct in connection with public invitations to tender in
calendar . In April , a settlement was reached with the
IADB which involves a payment of a single digit million €
amount and a voluntary restraint from IADB- financed projects
for three years by two Latin-American businesses, one of which
is no longer owned by Siemens.
For legal proceedings information required under IAS , Provi-
sions, Contingent Liabilities and Contingent Assets is not dis-
closed, if the Company concludes that the disclosure can be
expected to seriously prejudice the outcome of the litigation.
In addition to the investigations and legal proceedings described
above, Siemens AG and its subsidiaries have been named as de-
fendants in various other legal actions and proceedings arising
in connection with their activities as a global diversified group.
Some of these pending proceedings have been previously dis-
closed. Some of the legal actions include claims or potential
claims for compensatory and in some cases punitive damages
for indeterminate amounts. Siemens is from time to time also
involved in regulatory or other investigations in several jurisdic-
tions beyond those described above. Siemens cooperates with
the relevant authorities and, where appropriate, conducts inter-
nal investigations with the assistance of in-house and external
counsel. In some instances, criminal or civil sanctions could be
brought against the Company itself or against certain of its em-
ployees in connection with possible violations of law. In addi-
tion, the scope of pending investigations may be expanded and
new investigations commenced in connection with allegations
of bribery or other illegal acts. The Company’s operating activi-
ties, financial results and reputation may also be negatively
affected, particularly as a result of penalties, fines, disgorge-
ments, compensatory damages, third-party litigation, including
with competitors, the formal or informal exclusion from public
invitations to tender, or the loss of business licenses or permits.
Additional expenses and provisions, which could be material,
may need to be recorded in the future for penalties, fines, dam-
ages or other charges in connection with the investigations.
Given the number of legal actions and other proceedings to
which Siemens is subject, some may result in adverse decisions.
Siemens contests actions and proceedings when it considers it
appropriate. In view of the inherent difficulty of predicting the
outcome of such matters, particularly in cases in which claim-
ants seek indeterminate damages, Siemens may not be able to
predict what the eventual loss or range of loss related to such
matters will be. The final resolution of the matters discussed in
this paragraph could have a material effect on Siemens’ busi-
ness, results of operations and financial condition for any report-
ing period in which an adverse decision is rendered. There can
be no assurance that the results of any additional legal matter
not separately discussed in this paragraph will not have a mate-
rial negative impact on the Company’s net worth, financial con-
dition and operational results. However, Siemens currently does
not expect its net worth, financial condition or operational
results to be materially affected by such additional legal matters
not separately discussed in this paragraph.