Siemens 2015 Annual Report Download - page 90

Consolidated Financial Statements

Future payment obligations under non-cancellable operating
leases are:
Sep 30,
(in millions of €) 2015 2014
Within one year 773 815
After one year but not more than five years 1,662 1,574
More than five years 993 828
3,428 3,217
Total operating rental expenses for the years ended Septem-
ber ,  and  were € , million and € , million,
respectively.
The Company is jointly and severally liable and has capital con-
tribution obligations as a partner in commercial partnerships
and as a participant in various consortiums.
NOTE 21 Legal proceedings
PROCEEDINGS OUT OF OR IN CONNECTION
WITH ALLEGED BREACHES OF CONTRACT
As previously reported, Siemens AG is a member of a supplier
consortium that has been contracted to construct the nuclear
power plant “Olkiluoto ” in Finland for Teollisuuden Voima Oyj
(TVO) on a turnkey basis. The agreed completion date for the
nuclear power plant was April , . Siemens AG’s share of
the contract value is approximately  %. The other member of
the supplier consortium is a further consortium consisting of
Areva NP S. A. S. and its wholly-owned subsidiary, Areva GmbH.
Completion of the power plant has been delayed for reasons
which are in dispute. In December , the supplier consor-
tium filed a request for arbitration against TVO demanding an
extension of the construction time, additional compensation,
milestone payments, damages and interest. In August , the
supplier consortium updated its monetary claims in the
amount of approximately € . billion. TVO rejected the claims
and asserted counterclaims against the supplier consortium
consisting primarily of damages due to the delay. Also in Au-
gust , TVO increased its counterclaims to approximately
€ . billion. The arbitration proceedings may continue for sev-
eral years. Partial Awards on certain aspects could be rendered
during fiscal year . The amounts claimed by the parties do
not cover the total period of delay and may be updated further.
As previously reported, Essent Wind Nordsee Ost Planungs- und
Betriebsgesellschaft mbH filed a request for arbitration against
Siemens AG in October  alleging breaches of a contract for
the delivery of a high-voltage substation entered into by the par-
ties in . The parties settled the dispute in December .
As previously reported, during fiscal year , Siemens Indus-
trial Turbomachinery Ltd., United Kingdom, was sued before an
Iranian Court. The alleged damage claims are not quantified.
Siemens is defending itself against the action.
PROCEEDINGS OUT OF OR IN CONNECTION
WITH ALLEGED COMPLIANCE VIOLATIONS
As previously reported, Siemens AG agreed on a settlement
with nine out of eleven former members of the Managing and
Supervisory Board in January  relating to claims of
breaches of organizational and supervisory duties. In Janu-
ary , Siemens AG agreed on a settlement with Dr. Thomas
Ganswindt. In August , Siemens AG reached a settlement
with Mr. Joachim Neubürger. The Annual Shareholders’ Meet-
ing of Siemens AG approved the proposed settlement between
the Company and Mr. Neubürger on January , .
As previously reported, in July , Hellenic Telecommunica-
tions Organization S. A. (OTE) filed a lawsuit against Siemens AG
with the district court of Munich, Germany, seeking to compel
Siemens AG to disclose the outcome of its internal investiga-
tions with respect to OTE. OTE seeks to obtain information with
respect to allegations of undue influence and / or acts of bribery
in connection with contracts concluded between Siemens AG
and OTE from calendar  to . At the end of July ,
OTE expanded its claim and requested payment of damages by
Siemens AG of at least €  million to OTE for alleged bribery
payments to OTE employees. In October  OTE increased its
damage claim to the amount of at least €  million. Siemens AG
continues to defend itself against the expanded claim.
As previously reported, in June , the Republic of Iraq filed
an action requesting unspecified damages against  named
defendants with the United States District Court for the South-
ern District of New York on the basis of findings made in the
“ Report of the Independent Inquiry Committee into the United
Nations Oil-for-Food Program”. Siemens S. A. S., France, Siemens
Sanayi ve Ticaret A. S., Turkey, and the former Siemens subsidi-
ary OSRAM Middle East FZE, Dubai, are among the  named
defendants. In February , the trial court dismissed the Re-
public of Iraq’s action. The Republic of Iraq appealed the deci-
sion, which was then affirmed by the court of appeals. The Re-
public of Iraq thereafter petitioned for an “en banc ” review of
the appellate decision. The court of appeals rejected the Repub-
lic of Iraq ’s request in December . In March , the Re-
public of Iraq filed a petition for U. S. Supreme Court review,
which was denied in June .