Siemens 2005 Annual Report Download - page 209

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In fiscal 2004, Corporate items include a pre-tax gain of €590 from the sale of Infineon shares
(see Notes 5 and 9), €14 representing the Company’s at-equity share in the net income generated
by Infineon and impairment charges at L&A of €433.
In fiscal 2005, Pensions decreased due to less amortization of unrecognized losses as well as
a higher expected return on plan assets which was primarily attributable to supplemental con-
tributions at the beginning of fiscal 2005. Pensions in fiscal 2004 declined primarily due to
service costs of domestic pension plans directly attributable to the Groups which were reported
in Corporate items in fiscal 2003 and allocated to the Groups since fiscal 2004. This decline in
Pensions was largely offset by higher amortization of unrecognized net losses.
Other interest expense of Operations relates primarily to interest paid on debt and corporate
financing transactions through Corporate Treasury.
The following table reconciles total assets of the Operations component to Net capital
employed of the Operations Groups as disclosed in Segment Information according to the above
definition:
Notes to Consolidated Financial Statements
Consolidated Financial Statements Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
September 30,
2005 2004
Total assets of Operations 81,454 67,927
Asset-based adjustments:
Intracompany financing receivables and investments (16,987) (13,534)
Tax related assets (6,779) (4,889)
Liability-based adjustments:
Pension plans and similar commitments (4,917) (4,392)
Accruals (7,055) (6,125)
Liabilities to third parties (24,093) (20,881)
Assets and Liabilities held for sale 44 –
Total adjustments (line item Other assets related
reconciling items within the Segment Information table) (59,787) (49,821)
Net capital employed of Corporate items, pensions and eliminations 3,690 3,116
Net capital employed of Operations Groups 25,357 21,222