DEFINED CONTRIBUTION PLANS AND STATE PLANS The amount recognized as expense for defined contribution

plans amounts to € 535 million and € 594 million in fiscal 2014 and 2013, respectively. Contributions to state plans amount to € 1,317 million and € 1,354 million in fiscal 2014 and 2013, respectively.

NOTE 23

Provisions

Warranties Order related

losses and risks retirement Asset obligations Other Total (in millions of €) Balance as of October 1, 2013 3,350 1,929 1,138 1,976 8,392 Thereof non-current 1,200 686 1,113 908 3,907 Additions 1,776 881 3 469 3,128 Usage (771) (725) (8) (337) (1,842) Reversals (657) (320) (8) (528) (1,513) Translation differences 59 31 2 10 102

Accretion expense and effect of changes in discount rates 1 8 264 10 284

Other changes (37) (59) 7 (38) (127)

Balance as of September 30, 2014 3,721 1,745 1,398 1,561 8,425

Thereof non-current 1,423 580 1,377 691 4,071

Item Other changes contains reclassifications to line item Liabilities associated with assets classified as held for disposal including the disposal of those entities of € 131 million. Except for asset retirement obligations, the majority of the Company’s provisions are generally expected to result in cash outflows during the next one to 15 years.

Warranties – mainly relate to products sold. Order related losses and risks – are provided for anticipated losses and risks on uncompleted construction, sales and leasing contracts. In fiscal 2014, the Power Transmission Division of the Energy Sector incurred charges totaling € 298 million related to two high voltage direct current (HVDC) transmission line projects in Canada, resulting from revised estimates for civil engineering and infrastructure provided by suppliers as well as penalties for associated project delays, among other factors. In addition, Power Transmission incurred charges of € 240 million primarily related to grid connections to offshore wind-farms resulting from transport, installation and commissioning costs, com- pared to charges of € 171 million in fiscal 2013. The Wind Power Division of the Energy Sector recorded charges of € 272 million in fiscal 2014 for inspecting and replacing main bearings in onshore wind turbines and for repairing offshore and onshore

wind blades; in fiscal 2013 charges related to inspecting and retrofitting onshore turbine blades amounted to € 94 million. Asset retirement obligations – The Company is subject to asset retirement obligations related to certain items of prop- erty, plant and equipment. Such asset retirement obligations are primarily attributable to environmental clean-up costs which amounted to € 1,347 million and € 1,096 million, respec- tively, as of September 30, 2014 and 2013 (the non-current por- tion thereof being € 1,339 million and € 1,086 million, respec- tively) and to costs primarily associated with the removal of leasehold improvements at the end of the lease term.

Environmental clean-up costs relate to remediation and envi- ronmental protection liabilities which have been accrued based on the estimated costs of decommissioning facilities for the production of uranium and mixed-oxide fuel elements in Hanau, Germany (Hanau facilities), as well as a nuclear research and service center in Karlstein, Germany (Karlstein facilities). According to the German Atomic Energy Act, when such a facility is closed, the resulting radioactive waste must be collected and delivered to a government-developed final stor- age facility. In this regard, the Company has developed a plan to decommission the Hanau and Karlstein facilities in the fol- lowing steps: clean-out, decontamination and disassembly of

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 2018; 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 21, 2006, 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 2022. 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 2070’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 2014 and 2013. 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 30,

2014 and 2013, the provision totals € 1,347 million and

€ 1,096 million, respectively, and is recorded net of a present value discount of € 977 million and € 1,259 million, respectively reflecting the assumed continuous outflow of the total expected payments until the 2070’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 2014 and 2013, the Company recognized € 22 mil- lion and € 22 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 € 242 million as of Sep- tember 30, 2014 and decreased it by € 128 million as of Septem- ber 30, 2013.

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 24

Other liabilities

September 30,

(in millions of €) 2014 2013

Employee related liabilities 550 604

Liabilities due to employees and retirees in the U.S. not qualifying for presentation

as Post­employment 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

NOTE 25

Equity