Siemens 2005 Annual Report Download - page 210

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210
The following table reconciles Net cash from operating and investing activities, Capital spend-
ing and Amortization, depreciation and impairments of the Operations component as disclosed
in Segment Information to Siemens Consolidated Statements of Cash Flow:
Financing and Real Estate
The Company’s performance measurement for its Financing and Real Estate Groups is Income
before income taxes. In contrast to the performance measurement used for the Operations
Groups, interest income and expense is an important source of revenue and expense for Financ-
ing and Real Estate.
For the years ended September 30, 2005 and 2004, Income before income taxes at SFS includes
interest revenue of €491 and €422, respectively, and interest expense of €257 and €223, respec-
tively. In addition, Income before income taxes includes earnings from equity investees for the
years ended September 30, 2005 and 2004 of €46 and €42, respectively.
For the years ended September 30, 2005 and 2004, Income before income taxes at SRE
includes interest revenue of €51 and €60, respectively, and interest expense of €147 and €145,
respectively.
Eliminations, reclassifications and Corporate Treasury
Income before income taxes consists primarily of interest income due to cash management
activities, corporate finance, and certain currency and interest rate derivative instruments.
Description of business segments
The Operations Groups are comprised of the following businesses:
Communications (Com) – As of October 1, 2004, the Groups ICN and ICM were combined
into one Group named Com. Com develops, manufactures and sells a full-range portfolio, from
devices for end users to complex network infrastructure for enterprises and carriers as well as
related services including convergent technologies, products and services for wireless, fixed and
enterprise networks. For information on the Company’s discontinued MD operation see Note 3.
Management’s discussion and analysis
Net cash from Amortization,
operating and depreciation and
investing activities Capital spending impairments
Year ended Year ended Year ended
September 30, September 30, September 30,
2005 2004 2005 2004 2005 2004
Total Operations – continuing (1,222) 2,241 5,736 4,033 2,892 2,857
Total Operations – discontinued (1,219) 244 135 134 109 94
Total Operations (2,441) 2,485 5,871 4,167 3,001 2,951
Total Financing and Real
Estate – continuing (259) 213 775 448 424 391
Total Financing and Real
Estate – discontinued 5 3 – – 1 2
Total Financing and Real Estate (254) 216 775 448 425 393
Eliminations, reclassifications
and Corporate Treasury (8) 561 – – – –
Siemens Consolidated Statements
of Cash Flow (2,703) 3,262 6,646 4,615 3,426 3,344