Siemens 2011 Annual Report Download - page 280

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance

IT Solutions and Services less commitments entered into by
Siemens. The loss recognized on the measurement to fair val-
ue less costs to sell and on the disposal of the disposal group
of € million includes impairments of non-current assets in
the measurement scope of € million recognized in the
first three quarters of fiscal  and the gain recognized up-
on deconsolidation in the fourth quarter of fiscal  of €
million as well as expenses for carve out activities necessary
to establish Siemens IT Solutions and Services as a separate
legal entity of € million. Further charges for the integration
and training program at the amount to be indemnified to AtoS
of € million were recorded in line item Expenses in the
third quarter of fiscal  when the criteria for the recogni-
tion as employee benefits liability were fulfilled. The deal-re-
lated loss excluding expenses for carve out activities totals
€ million.
The purchase consideration from AtoS recorded upon closing
includes a cash payment of € million, as well as . mil-
lion newly issued shares in AtoS and a convertible bond each
recorded at their fair values of € million and € million,
respectively, as of July , . The cash consideration will be
adjusted for the amount of net debt and the difference be-
tween the actual net working capital included in Siemens IT
Solutions and Services as of June ,  determined based
on certain provisions and assumptions included in the con-
tract and a contractually agreed net working capital target.
Siemens recognized a liability of € million for those cash
purchase price adjustments, presented in line item Other cur-
rent financial liabilities. Siemens also recorded contractual ob-
ligations, loss provisions and risk contingencies arising from
the sales agreements with AtoS presented in line items Cur-
rent provisions, Provisions and Other current financial liabili-
ties of which the most material individual item relates to pro-
viding support to AtoS in connection with the integration and
training program of € million, see
Note 21 Other current
financial liabilities.
With the loss of control over Siemens IT Solutions and Services
Siemens deconsolidated the assets and liabilities of Siemens
IT Solutions and Services. The carrying amounts of the major
classes of assets and liabilities of Siemens IT Solutions and
Services presented as held for disposal as of June ,  and
derecognized upon closing are disclosed in the table below.
June , 
(prior to de-
(in millions of €) consolidation)
Trade and other receivables (see Note 12)421
Inventories (see Note 14)198
Deferred tax assets (see Note 10)229
Financial assets (see Note 20)214
Other assets 154
Assets classified as held for disposal 1,216
Trade payables 350
Current provisions (see Note 25)79
Other current liabilities (see Note 22)633
Pension plans and similar commitments (see Note 24)183
Deferred tax liabilities (see Note 10)67
Other liabilities (see Note 26)278
Liabilities associated with assets
classified as held for disposal 1,590
In line with our accounting policy as outlined in Note 2
Summary of significant accounting policies, intragroup bal-
ances between Siemens IT Solutions and Services and other
Siemens subsidiaries were eliminated in the course of group
consolidation as of June , . Therefore, the assets and li-
abilities held for disposal as disclosed above did not include
intragroup balances whereas the assets and liabilities derec-
ognized upon closing also comprised intragroup balances.
Moreover, prior to derecognition the assets and liabilities pre-
sented above were also adjusted for closing entries mainly re-
lating to pensions and share-based payments. These effects
total € million. Deconsolidated assets included € mil-
lion in cash and cash equivalents presented in line item Fi-
nancial assets as of June , . The share of non-control-
ling interests in the deconsolidated net asset value amounts
to € million. The reclassification of the Other components of
equity resulted in a loss of € million.
Revenue resulting from transactions between Siemens IT So-
lutions and Services and joint ventures and associates of
Siemens in fiscal  and  amounted to € million and
€ million, respectively. Expenses resulting from transac-
tions between Siemens IT Solutions and Services and joint