Siemens 2011 Annual Report Download - page 284

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance

The components of item Income (expense) from available-for-
sale financial assets, net were as follows:
Year ended September ,
(in millions of €)  
Dividends received 12 23
Gains on sales, net 881 17
Impairment (40) (47)
Other 13
Income (expense) from
available-for-sale financial assets, net 854 (4)
Item Gains on sales, net, in fiscal , include realized gains
on sales of non-current available-for-sale financial assets held
for disposal (not discontinued) which were previously mea-
sured at cost. Those gains, in fiscal , mainly resulted from
the disposal of Areva NP S.A.S. Gains on sales, net from Areva
can be split up in a €, million disposal gain in the second
quarter of fiscal  related to the termination of the Areva
NP S.A.S. joint venture and a loss of € million incurred in
the third quarter on the arbitrational ruling related to
Siemens’ exit from the joint venture Areva NP S.A.S. The gain
comprises () the payment from Areva to Siemens of €,
million including the purchase price of Siemens’ % share of
€, million, as defined in the shareholders’ agreement and
further contractual arrangements between Siemens and Are-
va, other adjusting components of € million, mainly relat-
ing to interest accretion on the purchase price granted to
Siemens as a component of fair market value since the termi-
nation of the shareholders’ agreement in early , and a re-
imbursement of a mandatory capital injection from Areva to
Siemens of € million after the issuance of the put notice in
January , () the carrying amount of the % share in
Areva NP S.A.S. of € million to be derecognized and ()
transaction costs as well as other derecognition effects of
€() million. The payment to Areva of € million includes
liquidated damages of % of the purchase price for Siemens’
shares, i.e. an amount of € million plus an amount of €
million for repayment of interest on the purchase price paid
by Areva as well as interest accretion on the liquidated dam-
ages. Additionally, Siemens incurred € million expenses
from procedural and further transaction fees.
Item Miscellaneous financial income (expense), net, in fiscal
 and , comprises gains (losses) of €() million and
€() million, respectively, as a result of the accretion of pro-
visions and the increase (decrease) in the discount rate, as
well as expenses as a result of allowances and write offs of fi-
nance receivables, net of reversals of €() million and €()
million, respectively. Furthermore, gains (losses) related to
derivative financial instruments are included.
 – Income taxes
Income from continuing operations before income tax is
attributable to the following geographic regions:
Year ended September ,
(in millions of €)  
Germany 3,906 2,353
Foreign 5,336 3,621
9,242 5,974
Income tax expense (benefit) consists of the following:
Year ended September ,
(in millions of €)  
Current tax:
German corporation and trade taxes 301 11
Foreign income taxes 1,255 1,463
1,556 1,474
Deferred tax:
Germany 365 580
Foreign 310 (342)
675 238
Income tax expense 2,231 1,712
The current income tax expense in fiscal  and  in-
cludes adjustments recognized for current tax of prior years in
the amount of € million and €() million, respectively.
The German current tax expense in fiscal  is affected by
the release of tax liabilities after a decision on appeal with re-
spect to the deductibility of expenses associated with foreign
dividends.