Siemens 2010 Annual Report Download - page 245

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

Year ended September , 
Goodwill Terminal
value
growth rate
After-tax
discount
rate
Diagnostics of the
Healthcare Sector 5,507 3.0% 7.5%
Imaging & IT of the
Healthcare Sector 2,782 3.0% 8.0%
Industry Automation of the
Industry Sector 2,250 2.0% 8.0%
The annual test for impairment of goodwill of the Diagnostics
Division within the Healthcare Sector was performed as of
September , . As a result, in the Diagnostics Division of
the Healthcare Sector an impairment of €, was recognized
to reduce the carrying amount of goodwill. The Diagnostics
Division is based on the acquisitions of Diagnostic Products
Corporation (DPC), the Diagnostics Division of Bayer AG and
the acquisition of Dade Behring, Inc. The Division operates in
the global healthcare market for diagnostic testing systems
and consumables which faces increasing cost restraints but is
estimated to still represent a growing market mainly due to the
megatrend demographic change. While the cost targets associ-
ated with the integration of the acquired three companies
were met, the growth targets have not been achieved.
As a result of a strategic review, which was completed in the
three months ended September , , the Division’s medi-
um-term growth prospects and the long-term market develop-
ment in laboratory diagnostics have been reassessed and the
Division’s business planning has been adjusted accordingly to
reflect expected lower growth prospects. Cash flows beyond
the five year planning period were extrapolated using a con-
stant growth rate of . percent. The main reasons for these
lower growth prospects and therefore adjusted business tar-
gets are delays in technology and product related development
activities along with increasing competition. The adjusted
business plan resulting from the strategic review was the basis
for the annual goodwill impairment test in the three months
ended September , .
Gross
carrying
amount
as of
 /  / 
Translation
differences
Additions
through
business
combina-
tions
Additions Retirements  Gross
carrying
amount
as of
 /  / 
Accumulated
amortization
and
impairment
Net book
value as of
 /  / 
Amorti-
zation and
impairment
in fiscal
 
Software and other
internally generated
intangible assets 2,664 106 – 395 (97) 3,068 (1,876) 1,192 (251)
Patents, licenses
and similar rights 6,519 338 87 117 (53) 7,008 (3,231) 3,777 (607)
Other
intangible assets 9,183 444 87 512 (150) 10,076 (5,107) 4,969 (858)
1 Includes Other intangible assets reclassified to Assets classified as held for disposal, see Note 4.
2 Includes Impairments of €(29) in fiscal 2010, thereof €(19) at the Healthcare Sector.
 – Other intangible assets