Siemens 2009 Annual Report Download - page 157

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 Managing Board statements, Independent auditors’ report, Additional information
95 Net assets position 97 Report on post-balance sheet date events
98 Risk report
108 Information required pursuant to
§315 (4) HGB of the German Commercial
Code and explanatory report
114 Compensation report
114 Report on expected developments
SG&A program originally set for fiscal 2010, despite additional
severance charges recorded in the current period. For further
information regarding the program successfully completed at
the end of the fiscal year, see “Business and operating environ-
ment – Strategy – Important corporate programs and initia-
tives – Global SG&A program.”
Other operating income for fiscal 2009 was €1.065 billion,
compared to €1.047 billion in the prior year. The current year
included a gain of €327 million on the sale of our stake in
Fujitsu Siemens Computers (Holding) B.V. (FSC). In addition,
gains from sales of real estate were also slightly higher year-
over-year, including a gain of €224 million from the sale of resi-
dential real estate holdings. For comparison, the prior year in-
cluded a pre-tax net gain of €131 million on the sale of the
wireless modules business at Industry Automation and a €130
million pre-tax net gain on the sale of the Global Tungsten &
Powders unit at OSRAM. In addition, fiscal 2008 benefited from
the release of an accrual of €38 million related to Italian electri-
cal utility Enel.
Other operating expense came in substantially below the
level of the prior-year period. The difference year-over-year is
due primarily to a provision of approximately €1 billion in fiscal
2008 related to legal proceedings in the U.S. and Germany that
were resolved during fiscal 2009. The prior year also included a
one-time endowment of €390 million coinciding with the es-
tablishment of the Siemens Stiftung (foundation). Expenses
for outside advisors engaged in connection with investiga-
tions into alleged violations of anti-corruption laws and related
matters as well as remediation activities fell sharply year-over-
year, to €95 million from €430 million a year earlier. Impair-
ments of goodwill were also lower in the current period, as the
prior year included a goodwill impairment of €70 million re-
lated to a building and infrastructure business, 50% of which
was divested in fiscal 2008. In contrast, fiscal 2009 included a
charge of €53 million related to a global settlement agreement
with the World Bank Group, valuation allowances on loans and
expenses related to the divestment of an industrial manufac-
turing unit in Austria, which was included in Other Opera-
tions.
Income from investments accounted for using the equity
method, net was a negative €1.946 billion, down from a posi-
tive €260 million in the prior-year period. The difference was
due primarily to an equity investment loss of €2.177 billion in
the current fiscal year related to NSN, compared to a loss of
€119 million a year earlier. This equity investment loss in fiscal
2009 includes an impairment of €1.634 billion on our stake in
NSN recorded in the fourth quarter, as well as a loss of €543
million, including our share in restructuring and integration
costs as well as a significant impairment of deferred tax assets
at NSN. The current period also included an equity investment
loss of €171 million related to EN. In addition, equity invest-
ment income related to our stakes in BSH and KMW was €195
million in fiscal 2009, down from €242 million a year earlier.
Financial income (expense), net decreased to a negative
€510 million in fiscal 2009, down from a positive €122 million a
year earlier. This change is due mainly to Income (expense)
from pension plans and similar commitments, net, which
swung from a positive €136 million in the prior year to a nega-
tive €227 million in fiscal 2009, due to lower expected return
on plan assets and higher interest cost. The current period also
includes higher expenses related to the interest component
from measuring provisions as well as higher expenses for al-
lowances and write-offs of finance receivables.
Year ended September , % Change
(in millions of €)  
Income from continuing
operations before income
taxes 3,891 2,874 35%
Income taxes (1,434) (1,015) 41%
as percentage of income
from continuing operations
before income taxes 37% 35% –
Income from continuing
operations 2,457 1,859 32%
Income from
discontinued operations,
net of income taxes 40 4,027 (99)%
Net income 2,497 5,886 (58)%
Net income attributable
to minority interest 205 161 –
Net income attributable
to shareholders
of Siemens AG 2,292 5,725 (60)%
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