Siemens 2011 Annual Report Download - page 286

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance

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 ,  and , the Company had €,
million and €, million, respectively of gross tax loss car-
ryforwards. The Company assumes that future operations will
generate sufficient taxable income to realize the deferred tax
assets.
Deferred tax assets have not been recognized with respect of
the following items (gross amounts):
September ,
(in millions of €)  
Deductible temporary differences 152 204
Tax loss carryforward 551 629
703 833
As of September ,  and , € million and € mil-
lion, respectively 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 tax-
es and foreign withholding taxes on future dividend distribu-
tions from subsidiaries which are intended to be repatriated.
The Company has not recognized deferred tax liabilities for in-
come taxes or foreign withholding taxes on the cumulative
earnings of subsidiaries of €, million and €, mil-
lion, respectively in fiscal  and  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 ,
(in millions of €)  
Continuing operations 2,231 1,712
Discontinued operations (37) (24)
Income and expense recognized
directly in equity 89 (893)
2,283 795
 – Available-for-sale financial assets
The following tables summarize the current portion of the
Company ’s investment in available-for-sale financial assets:
September , 
Cost Fair value
Unrealized
gain
Unrealized
loss
(in millions of €)
Equity instruments 5 8 3 –
Debt instruments 272 268 – (4)
Fund shares 208 201 3 (10)
485 477 6 (14)
September , 
Cost Fair value
Unrealized
gain
Unrealized
loss
(in millions of €)
Equity instruments 6 22 16 –
Debt instruments 210 213 3 –
Fund shares 11 11 – –
227 246 19 –