Siemens 2007 Annual Report Download - page 234

234 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
In fi scal 2006, Gains on sales, net includes gains of €15 and €33, respectively,
on the sales of the Company’s remaining interests in Epcos AG (Epcos) and
Infi neon Technologies AG (Infi neon) and a pre-tax gain of €84 related to the sale
of the Company’s interest in SMS Demag AG.
In fi scal 2007 and 2006, impairments of €12 and €20, respectively, relate to
current available-for-sale fi nancial assets traded in an active market (see also
Note 10).
Other fi nancial income (expense), net mainly includes the interest component
from measurement of provisions amounting to €31 and €28 in fi scal 2007 and
2006, respectively. In fi scal 2006, a result of €(143) from the valuation of the con-
version right of the convertible notes was included in Other fi nancial income
(expense), net (see also Note 22 for additional information).
9 Income taxes
Income (loss) from continuing operations before income taxes is attributable to
the following geographic regions:
Income tax expense (benefi t) consists of the following:
The current tax benefi t in 2007 and 2006 includes adjustments recognized for
current tax of prior periods in the amount of €(44) and €151, respectively.
Of the deferred tax benefi t in 2007 and 2006, €(72) and €(136), respectively,
relates to the origination and reversal of temporary differences.
Year ended
September 30,
2007 2006
Germany 1,556 1,282
Foreign 3,545 2,136
5,101 3,418
Year ended
September 30,
2007 2006
Current tax:
German corporation and trade taxes 450 306
Foreign income taxes 760 599
1,210 905
Deferred tax:
Germany (156) (133)
Foreign 138 4
(18) (129)
Income tax expense 1,192 776