Siemens 2010 Annual Report Download - page 236

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis

 – Other operating expense
Year ended September ,
 
Impairment of goodwill, see Note  (1,145) (32)
Losses on disposals of businesses (117) (68)
Losses on sales of property,
plant and equipment and intangibles (48) (83)
Other (301) (449)
(1,611) (632)
Impairment of goodwill in fiscal , relates to Healthcare’s
Diagnostics Division, see Note  for further information.
Losses on disposals of businesses in fiscal , include €
provided for in connection with the announced sale of the
Electronics Assembly Systems business held in Centrally man-
aged portfolio activities.
Other in fiscal , includes fees for outside advisors engaged
in connection with investigations into alleged violations of
anti-corruption laws and related matters as well as remediation
activities of € and € provided for in connection with a
settlement agreement with the World Bank Group – see Note
 Legal Proceedings for further information.
 – Income (loss) from investments
accounted for using the equity
method, net
Year ended September ,
 
Share of profit (loss), net (9) (392)
Gains (losses) on sales, net 9 5
Impairment (40) (1,644)
Reversals of impairment – 85
(40) (1,946)
Share of profit (loss), net includes our share in NSN’s fiscal
 and  earnings of €() and €(), respectively, our
share in EN’s fiscal  and  earnings of € and €(),
respectively, our share in BSH Bosch und Siemens Hausgeräte
GmbH (BSH) as well as our share in Krauss-Maffei Wegmann
GmbH & Co. KG (KMW) the two latter totaling € and €, in
fiscal  and , respectively, see also Note  and Note 
for further information.
Investments in associates and in jointly controlled entities are
tested for impairment if there is an indication that the invest-
ment may be impaired. In the three months ended September
, , NSN, presented in the segment Equity Investments,
was tested for impairment. The main triggering events were
NSN’s loss of market share as well as a decrease in the product
business operations resulting in significantly adjusted finan-
cial forecasts of future cash flows of NSN. The NSN impairment
test is based on fair value less costs to sell applying a dis-
counted cash flow method. As a result, an impairment loss of
€, was recognized in Income (loss) from investments ac-
counted for using the equity method. The weighted average
cost of capital (WACC) and the terminal value growth rate were
the key assumptions used in calculating the fair value of the
NSN equity impairment. A post-tax WACC of  percent and a
terminal value growth rate of  percent were used. We believe,
our assumptions were generally consistent with the current
market assessment of the risks specific to NSN and take into
consideration macroeconomic and industry specific trends.
Reversals of impairment in fiscal  of € relates to an im-
pairment in a previous year of an investment held by SFS,
which was reversed as a result of a recovery of our expected
future results from that investment.
For further information on the Company ’s principal invest-
ments accounted for under the equity method see Note .