Siemens 2009 Annual Report Download - page 230

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 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
 OTHER OPERATING INCOME
Gains on disposals of businesses in fiscal 2009 include €327
from the sale of Siemens’ investment in FSC presented in the
segment Equity Investments. In fiscal 2008, the line item in-
cludes a €131 gain from the sale of the Wireless Modules Busi-
ness and a €130 gain from the disposal of the Global Tungsten
& Powders unit, both presented in the Industry Sector (see
Note 4).
Gains on sales of property, plant and equipment and intangi-
bles in fiscal 2009, includes a pre-tax gain of €224, net of re-
lated costs, from the sale of Siemens’ residential real estate
holdings. The transaction is presented in Siemens Real Estate.
Other in fiscal 2009, includes income related to legal and regu-
latory matters.
 OTHER OPERATING EXPENSE
The Consolidated Balance Sheets as of September 30, 2009 and
2008 include assets of €517 and €809 and liabilities of €157 and
€566, respectively, classified as held for disposal. Included as
of September 30, 2009 are amounts relating to our Airfield So-
lutions Business at Industry, Electronics Assembly Systems
(EA) which was reclassified from the Industry Sector to Other
Operations in the second quarter of fiscal 2009 and Areva NP
S.A.S., held by the Energy Sector. The major classes of assets
and liabilities classified as asset held for sale are the carrying
amount of our 34 percent interest in Areva NP S.A.S.
 RESTRUCTURING EXPENSE
Siemens has implemented and will continue to run various re-
structuring projects, one of it being the SG&A program initi-
ated in fiscal 2008, aimed at reducing marketing, selling, gen-
eral and administrative expense (SG&A) by approximately €1.2
billion by the year 2010. In fiscal 2009, net expenses of €235
were reported in Corporate items which include termination
benefits resulting from the SG&A program and other ongoing
personnel-related restructuring measures of €337. They also
include a gain of €102 attributable to the reversal of termina-
tion benefits recognized as of September 30, 2008 for the Ger-
man part of SG&A and related programs which is due to a
change in estimate on the respective program measures, i.e.
more intensive use of the early retirement arrangements as
compared to severance payments in conjunction with transfer
companies. In fiscal 2009, restructuring costs for these pro-
grams are recorded in Income (loss) from continuing opera-
tions before income taxes. As of September 30, 2009, Other
current liabilities include the majority of termination benefits
related to the restructuring programs. Termination benefits,
incurred in fiscal 2009 under these programs, are reported in
Corporate items and pensions. In fiscal 2008 restructuring
costs under the SG&A program as well as related to this pro-
gram primarily consisted of termination benefits of €1,081. In
fiscal 2008, restructuring costs for the SG&A program are re-
corded in Income (loss) from continuing operations before in-
come taxes. As of September 30, 2008, Other current liabilities
include the majority of SG&A program-related termination
benefits. SG&A program-related termination benefits, incurred
in fiscal 2008, are reported in Corporate items and pensions.
Year ended September ,
 
Gains on disposals of businesses 409 447
Gains on sales of property,
plant and equipment and intangibles 356 314
Other 300 286
1,065 1,047
B27T005_E
Year ended September ,
 
Losses on disposals of businesses (68) (112)
Impairment of goodwill (see Note 16) (32) (78)
Losses on sales of property,
plant and equipment and intangibles (83) (49)
Other (449) (1,989)
(632) (2,228)
B27T006_E