Siemens 2006 Annual Report Download - page 152

Consolidated Financial Statements
148
Consolidated Statements of Income
For the fiscal years ended September 30, 2006 and 2005 (in millions of €, per share amounts in €)
(1) The income taxes of Eliminations, reclassifications and Corporate Treasury, Operations,
and Financing and Real Estate are based on the consolidated effective corporate tax rate
applied to income before income taxes.
The accompanying notes are an integral part of these consolidated financial statements.
Siemens
Note 2006 2005
Net sales 87,325 75,445
Cost of sales (63,812) (54,146)
Gross profit on sales 23,513 21,299
Research and development expenses 2(5,024) (4,511)
Marketing, selling and general administrative expenses (15,470) (13,684)
Other operating income (expense), net 3, 4 205 (9)
Income from investments in other companies, net 5647 584
Income (expense) from financial assets and marketable securities, net 6337 297
Interest expense of Operations, net 7(39) (32)
Other interest income (expense), net 7202 241
Income from continuing operations before income taxes 4,371 4,185
Income taxes(1) 8(1,078) (979)
Minority interest (206) (148)
Income from continuing operations 3,087 3,058
Income (loss) from discontinued operations, net of income taxes (54) (810)
Net income 3,033 2,248
Basic earnings per share 29
Income from continuing operations 3.47 3.43
Loss from discontinued operations (0.07) (0.91)
Net income 3.40 2.52
Diluted earnings per share 29
Income from continuing operations 3.31 3.29
Loss from discontinued operations (0.05) (0.87)
Net income 3.26 2.42