Siemens 2008 Annual Report Download - page 247

Notes to Consolidated Financial Statements 151
(in millions of €, except where otherwise stated and per share amounts)
Siemens tests at least annually whether goodwill suffered any impairment, in accordance with the accounting
policy stated in Note 2. Key assumptions on which management has based its determinations of the recoverable
amount for the divisions’ carrying goodwill include growth rates up to 3% and 3.5% in scal 2008 and 2007,
respectively and after-tax discount rates of 7.5% to 9% in scal 2008 and 7.5% to 10% in scal 2007. Where possi-
ble, reference to market prices is made.
The following divisions are allocated a signicant amount of goodwill: a) Diagnostics within Sector Healthcare
€6,131 (2007: €3,331) and b) Imaging & IT in Sector Healthcare €2,418 (2007: €1,856), as well as Industry Auto-
mation within Sector Industry €2,259 (2007: €2,169).
17 Other intangible assets
Amortization expense on intangible assets is included in Cost of goods sold and services rendered, Research and
development expenses or Marketing, selling and general administrative expenses, depending on the use of the
asset.
As of September 30, 2008 and 2007, contractual commitments for purchases of other intangible assets amount
to €37 and €74.
Gross
carrying
amount
as of
10/1/07
Trans-
lation
differ-
ences
Additions
through
business
combi-
nations
Addi-
tions
Retire-
ments*
Gross
carrying
amount
as of
9/30/08
Accu-
mulated
amorti-
zation
Net
book
value
as of
9/30/08
Amorti-
zation
during
scal
year
2008**
Software and other internally
generated intangible assets 2,362 (16) 33 420 (307) 2,492 (1,532) 960 (368)
Patents, licenses and similar rights 5,406 (70) 1,260 102 (174) 6,524 (2,071) 4,453 (528)
Other intangible assets 7,768 (86) 1,293 522 (481) 9,016 (3,603) 5,413 (896)
* Includes Other intangible assets reclassified to Assets classified as held for disposal (see Note 4).
** Includes Impairments of €(98).
Gross
carrying
amount
as of
10/1/06
Trans-
lation
differ-
ences
Additions
through
business
combi-
nations
Addi-
tions
Retire-
ments*
Gross
carrying
amount
as of
9/30/07
Accu-
mulated
amorti-
zation
Net
book
value
as of
9/30/07
Amorti-
zation
during
scal
year
2007***
Software and other internally
generated intangible assets 2,318 (111) 34 396 (275) 2,362 (1,468) 894 (429) **
Patents, licenses and similar rights 4,075 (209) 2,015 78 (553) 5,406 (1,681) 3,725 (450 )
Other intangible assets 6,393 (320) 2,049 474 (828) 7,768 (3,149) 4,619 (879 )
* Includes Other intangible assets reclassified to Assets classified as held for disposal (see Note 4).
** Includes €(106) impairment in connection with the Company’s regional sales organization in Germany.
*** Includes amortization expense of €(71) reported in Income (loss) from discontinued operations, net of income taxes.