Siemens 2008 Annual Report Download - page 236

140 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Other dispositions:
At the end of May 2008, the Company sold its Wireless Modules Business, which was part of the Sector Industry’s
Division Industry Automation. The transaction resulted in a pre-tax gain of €131, net of related costs, which is
included in Other operating income.
At the end of July 2008, the Sector Industry’s Division OSRAM completed the sale of its Global Tungsten & Pow-
ders unit. The transaction resulted in a pre-tax gain of €130, net of related costs, which is included in Other oper-
ating income.
At the beginning of October 2006, the Company sold Siemens Dispolok GmbH, Germany, which was part of the
Sector Industry’s Mobility Division, to Mitsui Group. The transaction resulted in a pre-tax gain, net of related
costs of €76, which is included in Other operating income.
At the end of September 2008, Siemens classied its investment in Fujitsu Siemens Computers (Holding) BV
(FSC) reported up to that date in Investments accounted for using the equity method as assets classied as held
for disposal (see Note 43 subsequent events).
The consolidated balance sheets as of September 30, 2008 and 2007 include assets of €809 and €308 and liabili-
ties of €566 and €97, respectively, of liabilities classied as held for disposal relating to minor transactions not
presented as discontinued operations.
5 Restructuring expense
Siemens has implemented and will continue to run various restructuring projects, such as the SG&A program
initiated in scal 2008, aimed at reducing marketing, selling, general and administrative expense (SG&A) by
approximately €1.2 billion by the year 2010. The reductions are mainly expected to be achieved by cutbacks in
SG&A-related jobs, cutting expenses for IT infrastructure and consultants and bundling and streamlining the
number of Siemens’ legally separate companies and regional entities. Restructuring costs under the SG&A pro-
gram as well as related to the program incurred in scal 2008 primarily consist of termination benets of
€1,081 in conjunction with an offer made to employees in the form of severance payments, partial and early
retirement costs and costs for transfer companies (e.g. the German “Betriebsorganisatorische eigenständige Ein-
heit” (BeE)), among other employee related costs. Restructuring costs also comprises termination related costs.
In scal 2008, Restructuring costs for the SG&A project are recorded in Income (loss) from continuing operations
before income taxes. As of September 30, 2008, Other current liabilities include the majority of SG&A project-
related costs. SG&A project-related termination benets, incurred in scal 2008, are reported in Corporate items
and pensions.
6 Other operating income
Year ended
September 30,
2008 2007
Gains on sales of property, plant and equipment and intangibles 314 289
Gains on disposals of businesses 447 196
Other 286 195
1,047 680