Siemens 2006 Annual Report Download - page 173

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts) 169
In the context of the overall reorganization of its Com segment, the Company plans to dis-
pose of the enterprise networks business, which is part of Com, in fiscal 2007. The assets and
liabilities of the enterprise networks business were classified on the balance sheet as held for
disposal and measured at the lower of their carrying amount or fair value less costs to sell.
The carrying amounts of the major classes of assets and liabilities held for disposal as of
September 30, 2006, for enterprise-related operations were as follows:
In the fourth quarter of fiscal 2005, Siemens announced the carve out of the Distribution
and Industry Logistics (DI) and Material Handling Products (MHP) divisions, formerly of the
Logistics and Assembly Systems Group (L&A), into separate entities (Dematic business). The
Dematic business has been reported in Other Operations for all periods presented. In June
2006, Siemens signed an agreement to divest a significant portion of its Dematic business to
Triton Managers II Limited based in Jersey. Closing of the transaction occurred on August 31,
2006. The disposal loss on the transaction amounted to €53 and is reported in Other operating
income (expense), net.
bb) Dispositions in fiscal 2005
In fiscal 2005, Siemens sold its Mobile Devices (MD) business. For further information see the
comments on Discontinued Operations.
c) Discontinued Operations
In fiscal 2005, Siemens signed an agreement to sell its MD business, which was part of Com, to
BenQ Corporation (BenQ) based in Taiwan (the Agreement). The Agreement also provided for
the sale of MD’s operation included in Siemens Shanghai Mobile Communications Ltd. in the
Peoples Republic of China (SSMC), subject to the consent of the Company’s minority share-
holders which was obtained in July 2005. The MD transaction, excluding SSMC and activities
in certain countries (Deferred Countries), was completed on September 30, 2005. In fiscal
2005, the loss recognized on the sale of MD (excluding SSMC), amounted to €546 and was
composed of €413 losses directly attributable to BenQ and €133 additional exit related charges.
As part of the Agreement, Siemens purchased €50 in Global Depositary Receipts (GDR’s) on
common shares in BenQ in December 2005, which at that time represented a 2.4 percent
Notes to Consolidated Financial Statements
September 30,
2006
Accounts receivable, net 315
Inventories, net 332
Goodwill 152
Property, plant and equipment, net 230
Other assets 490
Assets held for disposal 1,519
Accounts payable 290
Accrued liabilities 196
Pension plans and similar commitments 185
Other accruals and provisions 130
Payroll and social security taxes 132
Other liabilities 383
Liabilities held for disposal 1,316