Siemens 2006 Annual Report Download - page 174

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
170
investment in BenQ (see Note 9). All of the MD activities for which the transaction was not
completed as of September 30, 2005, including the MD operations of Siemens Shanghai Mobile
Communications Ltd. in the Peoples Republic of China, were sold in fiscal 2006. No additional
direct gain or loss on the transaction was realized in fiscal 2006. The loss from discontinued
operations in fiscal 2006 resulted from charges pursuant to the terms of the disposal transac-
tion, including substantial effects stemming from the insolvency of BenQ Mobile GmbH & Co.
OHG, Germany.
As of September 30, 2005, assets and liabilities related to transactions not yet closed as of
the balance sheet date (Deferred Countries and SSMC) were classified as held for disposal and
measured at the lower of their carrying amount or fair value less cost to sell. The carrying
amounts of the major classes of assets and liabilities held for disposal as of September 30,
2005 were as follows:
As of September 30, 2006, the respective amounts of assets and liabilities held for disposal
were zero.
The MD business is reported as discontinued operations. The net results of discontinued
operations (MD including SSMC and Deferred Countries) for current and prior periods are
reported in Income (loss) from discontinued operations, net of income taxes.
In fiscal 2006 and 2005, the Disposal Group’s net sales were €475 and €3,374, respectively.
Loss before income taxes after minority interests reported in discontinued operations
amounted to €(92) and €(1,308), respectively for fiscal 2006 and 2005.
4 Other operating income (expense), net
Impairment of goodwill of €262, in fiscal 2005, relates to Siemens Business Services’ (SBS)
reporting unit Operation-Related Services.
Gains (losses) on sales and disposals of businesses, net in fiscal 2006, includes a pre-tax
loss of €53 from the Company’s sale of its Dematic business (see Note 3).
Other, net in fiscal 2006, includes a gain of €70 related to the settlement of an arbitration
proceeding.
September 30,
2005
Inventories, net 104
Accounts receivable, net 89
Other (thereof Property, plant and equipment, net €43) 52
Assets held for disposal 245
Accounts payable 228
Other liabilities 61
Liabilities held for disposal 289
Year ended
September 30,
2006 2005
Impairment of goodwill – (262)
Gains on sales of real estate, net 136 177
Gains on sales and disposals of businesses, net (59) 49
Other, net 128 27
205 (9)