Siemens 2009 Annual Report Download - page 234

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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
In certain jurisdictions that incurred significant losses in fiscal
2009 or 2008, a net deferred tax asset of €1,486 (in fiscal 2008:
€1,481) is recognized. The losses are mainly caused by one-
time expenses due to transformation programs, e.g. restruc-
turing expense (see Note 5).
As of September 30, 2009, the Company had €8,015 (in fiscal
2008: €8,571) of gross tax loss carryforwards. The Company
assumes that the future operations will generate sufficient
taxable income to realize the deferred tax assets.
Deferred tax assets have not been recognized in respect of the
following items (gross amounts):
As of September 30, 2009 and 2008 €332 and €190 of the
unrecognized tax loss carryforwards expire over the periods
to 2027.
The Company has ongoing regular tax audits concerning open
income tax years in a number of jurisdictions. Adequate provi-
sions for all open tax years have been foreseen.
The Company provides for income taxes or foreign withhold-
ing taxes on the cumulative earnings of subsidiaries when it is
determined that such earnings either will be subject to taxes
or are intended to be repatriated. In fiscal 2009, income taxes
on cumulative earnings of subsidiaries of €15,403 (in fiscal
2008: €12,110) have not been provided for, because such earn-
ings will either not be subject to any such taxes or are intended
to be indefinitely reinvested in those operations. It is not prac-
ticable to estimate the amount of the unrecognized deferred
tax liabilities for these undistributed earnings.
Deferred income tax assets and liabilities on a gross basis are
summarized as follows:
In assessing the realizability of deferred tax assets, manage-
ment considers to which extent it is probable that the deferred
tax asset will be realized. The ultimate realization of deferred
tax assets is dependent upon the generation of future taxable
profits during the periods in which those temporary differ-
ences and tax loss carryforwards become deductible. Manage-
ment considers the expected reversal of deferred tax liabilities
and projected future taxable income in making this assess-
ment. Based upon the level of historical taxable income and
projections for future taxable income over the periods in
which the deferred tax assets are deductible, management be-
lieves it is probable the Company will realize the benefits of
these deductible differences.
September 30,
2009 2008
Assets:
Financial assets 66 50
Other intangible assets 117 40
Property, plant and equipment 337 455
Inventories 428 425
Receivables 518 694
Pension plans and similar commitments 1,892 1,431
Provisions 1,515 1,611
Liabilities 1,848 1,548
Tax loss and credit carryforward 2,455 2,500
Other 209 331
Deferred tax assets 9,385 9,085
Liabilities:
Other intangible assets 797 743
Property, plant and equipment 700 752
Inventories 1,793 1,687
Receivables 1,532 1,307
Provisions 962 983
Liabilities 710 875
Other 376 455
Deferred tax liabilities 6,870 6,802
Total deferred tax assets, net 2,515 2,283
B27T016_E
September 30,
2009 2008
Deductible temporary differences 341 260
Tax loss carryforward 612 602
953 862
B27T017_E