Siemens 2005 Annual Report Download - page 162

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9 Marketable securities
As of September 30, 2005 and 2004, the Company’s portfolio of marketable securities is com-
posed of securities classified as available-for-sale. The following tables summarize the current
portion of the Company’s investment in available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities included in AOCIare shown net of
applicable deferred income taxes, as well as tax effects which were previously provided but were
reversed into earnings upon the changes in enacted tax laws in prior periods. The tax effects
resulting from such changes total €134 and will remain in AOCIuntil such time as the entire port-
folio of available-for-sale securities in the applicable jurisdiction is liquidated.
Proceeds from sales of available-for-sale securities for the years ended September 30, 2005
and 2004 were €356 and €186, respectively. Gross realized gains on sales of available-for-sale
securities for the years ended September 30, 2005 and 2004 were €243 and €58, respectively.
Gross realized losses on sales of available-for-sale securities for the years ended September 30,
2005 and 2004 were € – and €4, respectively. Fiscal 2005 includes the sale of 13 million shares of
Juniper for proceeds of €263 resulting in a pre-tax gain of €208 (see Note 6). Due to the sale,
approximately 12 million Juniper shares, previously reported at cost in Long-term investments,
became available-for-sale and are classified as Marketable securities as of September 30, 2005.
The increase from the cost basis to fair value was recorded as an unrealized gain in Accumulated
other comprehensive income (loss). See also Note 33.
Infineon-Transactions
As of September 30, 2005 and 2004, the Company had an 18.2% ownership interest in Infineon.
Due to the Company’s transfer of Infineon shares to a non-voting trust in December 2001, the
Company’s voting interest in Infineon, prior to fiscal 2005, was less than its ownership interest.
As of the beginning of fiscal 2004, the Company held a 16.6% voting interest in Infineon (based
upon total Infineon shares outstanding). In January 2004, in conjunction with the sale of Infineon
shares, the Company relinquished all of its voting rights in Infineon and upon dissolution of the
non-voting trust on November 28, 2004, obtained again voting rights equaling its 18.2% owner-
ship interest.
Management’s discussion and analysis
September 30, 2005
Unrealized
Cost Fair Value Gain Loss
Equity securities 1,308 1,695 388 1
Debt securities 79 80 1 –
Fund securities 14 14 – –
1,401 1,789 389 1
September 30, 2004
Unrealized
Cost Fair Value Gain Loss
Equity securities 1,219 1,301 85 3
Debt securities 77 77 – –
Fund securities 8 8 – –
1,304 1,386 85 3