Siemens 2006 Annual Report Download - page 180

Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
176
9 Marketable securities
As of September 30, 2006 and 2005, the Company’s portfolio of marketable securities is com-
posed of securities classified as available-for-sale. The following tables summarize the current
portion of the Company’s investment in available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities included in AOCIare shown net of
applicable deferred income taxes, as well as tax effects which were previously provided but were
reversed into earnings upon the changes in enacted tax laws in prior periods. The tax effects
resulting from such changes total €134 and will remain in AOCIuntil such time as the entire
portfolio of available-for-sale securities in the applicable jurisdiction is liquidated.
Proceeds from sales of available-for-sale securities for the years ended September 30, 2006
and 2005 were €2,701 and €356, respectively. Gross realized gains on sales of available-for-sale
securities for the years ended September 30, 2006 and 2005 were €409 and €243, respectively.
Gross realized losses on sales of available-for-sale securities for the years ended September 30,
2006 and 2005 were € 7 and € – , respectively.
In April 2006, the Company completed the sale of its remaining interest in Infineon, repre-
senting 136.3 million shares, for net proceeds of €1,127. The transaction resulted in a gain of
€33 (see Note 6). In connection with the sale, €50 was reclassified from Accumulated other
comprehensive income (loss), net of income tax to earnings. As a result of the transaction, the
Company no longer owns any shares of Infineon. As of September 30, 2005, the Company had
an 18.2% ownership interest in Infineon.
In March 2006, the Company sold its remaining interest in Epcos AG, representing 8.2 mil-
lion shares, for net proceeds of €90. The transaction resulted in a pre-tax gain of €15 (see Note 6).
In November 2005, the Company sold its remaining interest in Juniper, representing 22.8
million shares, for net proceeds of €465. The transaction resulted in a pre-tax gain of €356
(see Note 6).
In fiscal 2006 the Company made total investments of €1,409 in debt securities. The net pro-
ceeds from the sale of debt securities in fiscal 2006 totaled €986.
September 30, 2006
Unrealized
Cost Fair Value Gain Loss
Equity securities 64 81 17 –
Debt securities 498 492 – 6
Fund securities 23 23 – –
585 596 17 6
September 30, 2005
Unrealized
Cost Fair Value Gain Loss
Equity securities 1,308 1,695 388 1
Debt securities 79 80 1 –
Fund securities 14 14 – –
1,401 1,789 389 1