Siemens 2010 Annual Report Download - page 239

147 Consolidated Financial Statements
148 Consolidated Statements of Income
149 Consolidated Statements of Comprehensive Income
150 Consolidated Statements of Financial Position
151 Consolidated Statements of Cash Flow
152 Consolidated Statements of Changes in Equity
154 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
261 Additional information

Deferred income tax assets and liabilities on a gross basis are
summarized as follows:
September ,
 
Assets:
Financial assets 12 66
Other intangible assets 297 117
Property, plant and equipment 305 337
Inventories 528 428
Receivables 994 518
Pension plans and similar commitments 2,674 1,892
Provisions 1,835 1,515
Liabilities 2,645 1,848
Tax loss and credit carryforward 1,971 2,455
Other 312 209
Deferred tax assets 11,573 9,385
Liabilities:
Financial assets 189 138
Other intangible assets 1,357 1,286
Property, plant and equipment 787 700
Inventories 2,112 1,793
Receivables 2,413 1,532
Provisions 800 962
Liabilities 265 168
Other 287 291
Deferred tax liabilities 8,210 6,870
Total deferred tax assets, net 3,363 2,515
In assessing the realizability of deferred tax assets, manage-
ment considers the extent to which it is probable that the de-
ferred 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
differences and tax loss carryforwards become deductible.
Management considers the expected reversal of deferred tax
liabilities and projected future taxable income in making this
assessment. 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
believes it is probable the Company will realize the benefits of
these deductible differences. As of September ,  the
Company has certain tax losses subject to significant limita-
tions. For those losses deferred tax assets are not recognized,
as it is not probable that gains will be generated to offset those
losses.
As of September , , the Company had €, (in fiscal
: ,) of gross tax loss carryforwards. The Company as-
sumes that 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):
September ,
 
Deductible temporary differences 204 341
Tax loss carryforward 629 612
833 953
As of September ,  and , respectively € and €
of the unrecognized tax loss carryforwards expire over the
periods to .
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 recorded deferred tax liabilities for income taxes
and foreign withholding taxes on future dividend distributions
from subsidiaries which are intended to be repatriated. The
company has not recognized deferred tax liabilities for income
taxes or foreign withholding taxes on the cumulative earnings
of subsidiaries of €, (in fiscal : €,) because the
earnings are intended to be permanently reinvested in the
subsidiaries.
Including the items charged or credited directly to equity and
the expense (benefit) from continuing and discontinued op-
erations, the income tax expense (benefit) consists of the fol-
lowing:
Year ended September ,
 
Continuing operations 1,699 1,434
Discontinued operations (11) 58
Income and expense recognized
directly in equity (893) (231)
795 1,261