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Consolidated Financial Statements 
The SFS business is capital intensive and requires a larger
amount of debt to finance its operations compared to the in-
dustrial business.
Sep 30,
(in millions of €) 2015 2014
Allocated equity 2,417 2,148
SFS debt 21,198 18,663
Debt to equity ratio 8.77 8.69
Equity allocated to SFS differs from the carrying amount of
equity as it is mainly allocated based on the risks of the under-
lying business.
Siemens’ current corporate credit ratings are:
Sep 30, 2015 Sep 30, 2014
Moody ’s
Investors
Service
Standard &
Poor ’s Ratings
Services
Moody ’s
Investors
Service
Standard &
Poor ’s Ratings
Services
Long-term debt A1 A+ Aa3 A+
Short-term debt P-1 A-1+ P-1 A-1+
NOTE 20 Commitments and contingencies
The following table presents the undiscounted amount of maxi-
mum potential future payments for major groups of guarantees:
Sep 30,
(in millions of €) 2015 2014
Credit guarantees 859 774
Guarantees of third-party performance 2,292 2,061
HERKULES obligations 1,090 1,490
4,241 4,325
Item Credit guarantees cover the financial obligations of third
parties generally in cases where Siemens is the vendor and (or)
contractual partner or Siemens is liable for obligations of asso-
ciated companies accounted for using the equity method. Addi-
tionally, credit guarantees are issued in the course of the SFS
business. Credit guarantees generally provide that in the event
of default or non-payment by the primary debtor, Siemens will
be required to settle such financial obligations. The maximum
amount of these guarantees is equal to the outstanding bal-
ance of the credit or, in case where a credit line is subject to
variable utilization, the nominal amount of the credit line.
These guarantees have terms up to  years and  years, re-
spectively, in fiscal  and . For credit guarantees
amounting to €  million and €  million as of Septem-
ber ,  and , respectively, the Company held collateral
mainly in the form of inventories and trade receivables. The
Company accrued €  million and €  million relating to credit
guarantees as of September ,  and , respectively.
Furthermore, Siemens issues guarantees of third-party perfor-
mance, which mainly include performance bonds and guaran-
tees of advanced payments in a consortium. In the event of
non-fulfillment of contractual obligations by the consortium
partner(s), Siemens will be required to pay up to an agreed-
upon maximum amount. These agreements typically have
terms of up to ten years. Generally, consortium agreements
provide for fallback guarantees as a recourse provision among
the consortium partners. As of September ,  and ,
the Company accrued €  million relating to performance guar-
antees at each year-end date.
In fiscal , The Federal Republic of Germany commissioned
a consortium consisting of Siemens and IBM Deutschland
GmbH (IBM) to modernize and operate the non-military infor-
mation and communications technology of the German Federal
Armed Forces (Bundeswehr). This project is called HERKULES.
A project company, BWI Informationstechnik GmbH (BWI), pro-
vides the services required by the terms of the contract.
Siemens is a shareholder in the project company. Siemens is-
sued several guarantees connected to each other legally and
economically in favor of the Federal Republic of Germany and
of the consortium member IBM. The guarantees ensure that
BWI has sufficient resources to provide the required services
and to fulfill its contractual obligations. Future payments po-
tentially required by Siemens will be reduced successively over
the remaining two-year contract period.
In addition to guarantees described above, the Company issued
other commitments. To the extent future claims are not consid-
ered remote, maximum future payments from these obliga-
tions amount to € , million and € , million as of Sep-
tember ,  and , respectively. These commitments
include indemnifications issued in connection with disposi-
tions of businesses. Such indemnifications may protect the
buyer from potential tax, legal and other risks in conjunction
with the purchased business. As of September ,  and
, the accrued amount for such other commitments is
€  million and €  million, respectively.