Siemens 2009 Annual Report Download - page 228


 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
 Consolidated Statements of Income  Consolidated Statements of Income
and Expense Recognized in Equity
 Consolidated Balance Sheets  Consolidated Statements of Cash Flow
Former segment Communications (Com) –
discontinued operation
The historical results of the former operating segment Com-
munications (Com), with the exception of certain business ac-
tivities which became part of Other Operations are reported as
discontinued operations in the Company ’s Consolidated State-
ments of Income for all periods presented. The Com activities
previously included the Mobile Devices (MD) business, which
was sold in fiscal 2005, the carrier-related operations which
were contributed to Nokia Siemens Networks B.V., The Nether-
lands (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 opera-
tions and Nokia Corporation (Nokia), Finland, contributed its
Networks Business Group into NSN, in exchange for shares in
NSN. Siemens and Nokia each own an economic share of ap-
proximately 50% of NSN.
Siemens has the ability to exercise significant influence over
operating and financial policies of NSN and beginning April
2007, reports its equity interest in NSN in Investments ac-
counted for using the equity method (see Note 19) and its share
of income (loss) in NSN in Income (loss) from investments ac-
counted 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 financial and operational man-
agement
firm. The Gores Group contributed two businesses
into Enterprise Networks Holdings B.V., The Netherlands (EN),
which complement the business of SEN. The transaction re-
sulted in a loss of €1,015 in fiscal 2008 and a gain of €117 in fis-
cal 2009, which is included in discontinued operations. The
historical results of SEN are reported as discontinued opera-
tions in the Consolidated Statements of Income for all periods
presented including adjustments to the former Com business.
Siemens has the ability to exercise significant influence over
operating and financial policies of EN and beginning Septem-
ber 30, 2008 reports its equity interest in EN in Investments
accounted for using the equity method (see Note 19) and its
share of income (loss) in EN in Income (loss) from investments
accounted for using the equity method, net (see Note 8).
In fiscal 2008, Siemens completed the acquisitions of a num-
ber of entities which are not significant individually including
BJC, Spain, a supplier of switches and socket-outlets at Sector
Industry, Building Technologies Division; Innotec, a leading
software provider for lifecycle management solutions at Sector
Industry ’s Industry Automation division; and the rolling mill
technology specialist Morgan Construction Co., USA, at Sector
Industry, Industry Solutions Division. The combined purchase
price of these acquisitions amounts to €299.
b) Dispositions and Discontinued Operations
Siemens VDO Automotive (SV) –
discontinued operation
At the beginning of December 2007, Siemens sold its SV activi-
ties to Continental AG, Hanover, Germany for a sales price of
€11.4 billion. The transaction resulted in a gain, net of related
costs of €5,522, which is included in discontinued operations.
The historical results of SV are reported as discontinued opera-
tions in the Consolidated Statements of Income for all periods
presented.
The net results of SV reported in the Consolidated Statements
of Income consist of the following components:
As a result of taxable reorganizations in fiscal 2007, prior to the
completion of the sale, no disposal gain related income taxes
arose on the disposal of SV in December 2007.
Year ended September ,
 
Revenue –1,842
Costs and expenses,
including gain on disposal 4 3,553
Income from discontinued
operations before income taxes 4 5,395
Income taxes (1) 65
Income from discontinued
operations, net of income taxes 3 5,460
B27T003_E