Siemens 2007 Annual Report Download - page 231

Notes to Consolidated Financial Statements 231
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
The net result of discontinued operations for the fi scal year ended September
30, 2007, includes losses from the measurement of the enterprise networks busi-
ness to fair value less costs to sell of €567.
In the fi scal year ended September 30, 2006, the Company’s former operating
Group, Com, sold its remaining interest in Juniper Networks, Inc. representing
22.8 million shares for net proceeds of €465. The transaction resulted in a non-
taxable gain of €356, which is reported in Income (loss) from discontinued opera-
tions, net of income taxes.
Discontinued operations in fi scal 2007 and 2006 include charges pursuant to
the terms of the MD disposal transaction, including substantial effects stemming
from the insolvency of BenQ Mobile GmbH & Co. OHG, Germany.
The income tax benefi t from ordinary activities for fi scal year 2007 is impacted
by a goodwill impairment and tax reserves. The carve-out of the Com business is
mainly tax-free. In fi scal 2006, the tax benefi t includes tax benefi ts generated on
pre-tax losses in jurisdictions with higher statutory income tax rates that were
only partially offset by income tax expense generated on pre-tax income in juris-
dictions with lower statutory income tax rates.
5 Other operating income
Gains on disposals of businesses in fi scal 2007 includes the gain on the sale of
Siemens Dispolok GmbH (see Note 4 for further information).
Other in fi scal 2006 includes a gain of €70 related to the settlement of an arbi-
tration proceeding.
6 Other operating expense
Year ended
September 30,
2007 2006
Gains on sales of property, plant and equipment and intangibles 289 208
Gains on disposals of businesses 196 54
Other 195 367
680 629
Year ended
September 30,
2007 2006
Impairment of goodwill (60) –
Losses on sales of property, plant and equipment and intangibles (86) (40)
Losses on disposals of businesses (48) (109)
Other (859) (111)
(1,053) (260)