Siemens 2008 Annual Report Download - page 234

138 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
The net results of SV reported in the Consolidated Statements of Income consist of the following components:
As a result of taxable reorganizations in scal 2007, prior to the completion of the sale, no disposal gain related
income taxes arose on the disposal of SV in December 2007.
Former operating segment Communications (Com) – discontinued operation
The historical results of the former operating segment Communications (Com), with the exception of certain
business activities which became part of Other Operations are reported as discontinued operations in the Com-
pany’s Consolidated Statements of Income for all periods presented. The Com activities previously included the
Mobile Devices (MD) business, which was sold in scal 2005, the carrier-related operations which were contrib-
uted to Nokia Siemens Networks B.V., The Netherlands (NSN) in April 2007 and Siemens Enterprise Communica-
tions (SEN) of which 51% were sold as of September 30, 2008.
In April 2007, Siemens contributed its carrier-related operations and Nokia Corporation (Nokia), Finland con-
tributed its Networks Business Group into NSN, in exchange for shares in NSN. Siemens and Nokia each own an
economic share of approximately 50% of NSN. The transaction resulted in a preliminary non-cash pre-tax gain
of €1,627 which is included in discontinued operations.
Siemens has the ability to exercise signicant inuence over operating and nancial policies of NSN and begin-
ning April 2007, reports its equity interest in NSN in Investments accounted for using the equity method and its
share of income (loss) in NSN in Income (loss) from investments accounted for using the equity method, net (see
Note 8).
At the end of September 2008, Siemens sold a 51% stake in SEN to The Gores Group, a U.S.-based nancial and
operational management rm. The Gores Group will contribute two businesses into Enterprise Networks Hold-
ings B.V., The Netherlands (EN), which will complement the business of SEN. The transaction resulted in a pre-
liminary loss of €1,015, which is included in discontinued operations. The historical results of SEN are reported
as discontinued operations in the Consolidated Statements of Income for all periods presented.
Siemens has the ability to exercise signicant inuence over operating and nancial policies of EN and begin-
ning September 30, 2008 reports its equity interest in EN in Investments accounted for using the equity method
(see Note 19).
Year ended
September 30,
2008 2007
Revenue 1,842 10,324
Costs and expenses, including gain on disposal 3,553 (9,744)
Income from discontinued operations before income taxes 5,395 580
Income taxes 65 (1,130)
Income from discontinued operations, net of income taxes 5,460 (550)