Siemens 2010 Annual Report Download - page 234

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis

Networks B.V., The Netherlands (NSN) in April  and
Siemens Enterprise Communications (SEN) of which  per-
cent were sold as of September , .
In April , 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  percent of NSN.
Siemens has the ability to exercise significant influence over
operating and financial policies of NSN and beginning April
, reports its equity interest in NSN in Investments ac-
counted for using the equity method, see Note  and its share
of income (loss) in NSN in Income (loss) from investments ac-
counted for using the equity method, net, see Note .
At the end of September , Siemens sold a  percent stake
in SEN to The Gores Group, a U.S.-based financial and opera-
tional management firm. The Gores Group contributed two
businesses into Enterprise Networks Holdings B.V., The Neth-
erlands (EN), which complement the business of SEN. The
transaction resulted in a post-closing pre-tax gain of € and
€, respectively, in fiscal  and , all included in dis-
continued operations. The historical results of SEN are reported
as discontinued operations 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 ,  reports its equity interest in EN in Investments
accounted for using the equity method, see Note , and its
share of income (loss) in EN in Income (loss) from investments
accounted for using the equity method, net, see Note .
The net results of discontinued operations presented in the
Consolidated Statements of Income reflecting the former Com
activities consist of the following components:
Year ended September ,
 
Revenue 2 15
Costs and expenses (92) (47)
Gain (loss) related to the contribution
of the carrier-related operations to NSN – 9
Gain (loss) on disposal of the SEN business 36 117
Income (loss) from discontinued
operations before income taxes (54) 94
Income taxes corresponding to ordinary
activities including the measurement
to fair value less costs to sell 22 (34)
Income taxes corresponding to the
gain or loss related to the contribution
of the carrier-related operations to NSN – (4)
Income taxes corresponding to the gain
or loss related to the contribution of the
Siemens Enterprise Business to EN (11) (19)
Income (loss) from discontinued
operations, net of income taxes (43) 37
The net results of discontinued operations presented in the
Consolidated Statements of Income for fiscal  and ,
relate mainly to legal and carve-out related matters in connec-
tion with the former Com activities; in fiscal  they also
relate to a loss on disposal of the SEN business which was
compensated by a positive income effect of € from a settle-
ment between Siemens and The Gores Group regarding pend-
ing requirements for purchase price adjustment and further
mutual obligations in relation to the disposal of the SEN busi-
ness.
The effects of the fiscal  settlement between Siemens and
The Gores Group are subject to German corporate tax only.
 – Restructuring expense
Siemens has implemented and will continue to run various
restructuring measures. In fiscal , for example, the Indus-
try Sector reported personnel-related expenses of € for a
number of restructuring projects.