Siemens 2008 Annual Report Download - page 240

144 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Income tax expense differs from the amounts computed by applying statutory German income tax rates
(31% for scal year ended September 30, 2008 and 39% for scal year ended September 30, 2007) as follows:
In scal 2008, the tax effect of non-deductible losses and expenses were impacted by estimated nes in con-
nection with ongoing settlement negotiations of legal matters with authorities in the U.S.; in scal 2007 mainly
by antitrust nes.
Deferred income tax assets and liabilities on a gross basis are summarized as follows:
Year ended
September 30,
2008 2007
Expected income tax expense 891 1,989
Increase (decrease) in income taxes resulting from:
Non-deductible losses and expenses 533 545
Goodwill 1 (34)
Tax-free income (259) (552)
Taxes for prior years (31) (572)
Change in judgment of realizability of deferred tax assets 34 (147)
Change in tax rate effect 6 323
Foreign tax rate differential (86) (310)
Tax effect of investments accounted for using the equity method (79) (40)
Other, net 5 (10)
Actual income tax expense 1,015 1,192
September 30,
2008 2007
Assets:
Financial assets 50 58
Other intangible assets 40 48
Property, plant and equipment 455 431
Inventories 425 550
Receivables 694 965
Pension plans and similar commitments 1,431 1,422
Provisions 1,611 1,588
Liabilities 1,548 860
Tax loss and credit carryforward 2,500 1,936
Other 331 264
Deferred tax assets 9,085 8,122
Liabilities:
Other intangible assets 743 667
Property, plant and equipment 752 678
Inventories 1,687 1,606
Receivables 1,307 908
Provisions 983 872
Liabilities 875 888
Other 455 489
Deferred tax liabilities 6,802 6,108
Total deferred tax assets, net 2,283 2,014