Siemens 2011 Annual Report Download - page 279

153 D. Consolidated Financial Statements 273 E. Additional information
158 D. Consolidated Statements of Changes in Equity
160 D. Notes to Consolidated Financial Statements
266 D. Supervisory Board and Managing Board
154 D. Consolidated Statements of Income
155 D. Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow

Revenue resulting from transactions between OSRAM and
joint ventures and associates of Siemens in fiscal  and
 amounted to € million and € million, respectively.
Expenses resulting from transactions between OSRAM and
joint ventures and associates of Siemens in fiscal  and
 amounted to € million and € million, respectively. As
of September , , receivables from and liabilities to joint
ventures and associates are € million and € million, re-
spectively. For further information regarding related party
transactions refer to
Note 39 Related party transactions.
Siemens IT Solutions and Services –
discontinued operations
In December , Siemens and Atos S.A. (AtoS) signed an op-
tion agreement (written call option) which granted AtoS the
right to acquire Siemens IT Solutions and Services. In Febru-
ary , AtoS exercised its option to acquire Siemens IT Solu-
tions and Services in exchange for . million newly issued
shares in AtoS with a five-year lock-up commitment, a five-
year convertible bond of € million (nominal value) and a
cash payment of € million which was initially negotiated at
an amount of € million and was reduced in the third quar-
ter of fiscal  due to changes in the transaction scope fol-
lowing further negotiations between the parties. Further-
more, Siemens provides extensive support in order to foster
the Siemens IT Solutions and Services’ business success in-
cluding, among others, up to € million to the integration
and training costs as well as further protections and guaran-
tees. Related to the transaction is a seven-year outsourcing
contract worth around €. billion, under which AtoS will pro-
vide managed services and system integration to Siemens,
see
Note 29 Commitments and contingencies. Closing of the
transaction was on July ,  following clearance of the
transaction by the relevant antitrust authorities and the ap-
proval from AtoS’ shareholders on July , .
The conditions for Siemens IT Solutions and Services to be
classified as held for disposal and discontinued operation
were fulfilled as of the second quarter of fiscal . For infor-
mation regarding classification and measurement of assets
(or disposal groups) held for disposal and discontinued opera-
tions, see
Note 2 Summary of significant accounting policies.
The results of Siemens IT Solutions and Services with the ex-
ception of certain business activities which remain in the
Siemens group are presented as discontinued operations in
the Company ’s Consolidated Statements of Income for all pe-
riods presented. Business activities which remain with
Siemens primarily relate to project HERKULES, which is re-
ported in line item Centrally managed portfolio activities of
Segment information and continues to be accounted for un-
der the equity method. For information on HERKULES see
Note 29 Commitments and contingencies.
Year ended September ,
(in millions of €)  
Revenue 2,705 3,838
Expenses (3,087) (4,445)
Loss on the measurement to fair value
less costs to sell or on the disposal of the
disposal group constituting the discontinued
operations (743) (52)
Pretax loss from discontinued operations (1,125) (659)
Income taxes on ordinary activities 97 175
Income taxes on the loss on the
measurement to fair value less costs to sell
or on the disposal of the disposal group
constituting the discontinued operations 202 16
Loss from discontinued operations,
net of income taxes (826) (468)
For fiscal , Siemens IT Solutions and Services recorded
personnel related restructuring charges of € million pre-
sented in line item Expenses. Also included in this line item
were termination benefits of € million recognized in fiscal
 under the restructuring program initiated for the strate-
gic reorientation of Siemens IT Solutions and Services. Fur-
thermore, in fiscal  an amount of € million for person-
nel-related matters in connection with establishing Siemens
IT Solutions and Services as a separate legal group was recog-
nized in line item Expenses.
In the first quarter of fiscal , Siemens IT Solutions and
Services was still reviewed for impairment following the ac-
counting guidance for continuing operations as the criteria
for a presentation as held for disposal and discontinued oper-
ations were not fulfilled at that point in time.
Upon classification as held for disposal and discontinued op-
erations in the second quarter of fiscal  Siemens IT Solu-
tions and Services was measured at the lower of its previous
carrying amount and fair value less costs to sell. The fair mar-
ket value was assumed to be represented by the consideration
that AtoS committed itself to pay for the transfer of Siemens