Siemens 2007 Annual Report Download - page 236

236 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Deferred income tax assets and liabilities on a gross basis are summarized as
follows:
The primary decrease in total deferred tax assets, net compared to the prior
year is due to the reclassifi cation in fi scal year 2007 to Assets classifi ed as held for
disposal (see Note 4 for further information).
In assessing the realizability of deferred tax assets, management considers to
which extent it is probable that the deferred tax asset will be realized. The ulti-
mate realization of deferred tax assets is dependent upon the generation of future
taxable profi ts during the periods in which those temporary differences and tax
loss carryforwards become deductible. Management considers the expected rever-
sal of deferred tax liabilities and projected future taxable income in making this
assessment. Based upon the level of historical taxable income and projections for
future taxable income over the periods which the deferred tax assets are deduct-
ible, management believes it is probable the Company will realize the benefi ts of
these deductible differences.
As of September 30, 2007 the Company had €6,611 of gross tax loss carryfor-
wards. The Company assumes that the future operations will generate suffi cient
taxable income to realize the deferred tax assets.
As of
September 30,
2007 2006
Assets:
Financial assets 453 618
Other intangible assets 48 73
Property, plant and equipment 431 373
Inventories 550 529
Receivables 965 624
Pension plans and similar commitments 1,422 1,825
Provisions 1,588 1,639
Liabilities 860 1,062
Tax loss and credit carryforward 1,936 1,857
Other 264 901
Deferred tax assets 8,517 9,501
Liabilities:
Other intangible assets 667 477
Property, plant and equipment 678 860
Inventories 1,606 1,749
Receivables 1,303 1,346
Provisions 872 607
Liabilities 888 403
Other 489 586
Deferred tax liabilities 6,503 6,028
Total deferred tax assets, net 2,014 3,473