Siemens 2011 Annual Report Download - page 290

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance

The net decrease in goodwill of € million in fiscal , is at-
tributable to € million positive foreign currency adjust-
ments, € million impairment related to Siemens IT Solu-
tions and Services, € impairment related to the solar and
hydro business of the Energy Sector, as well as to € million
acquisitions and purchase accounting adjustments; which is
offset by dispositions and reclassifications to held for disposal
of € million. In fiscal , positive translation differences
are primarily attributable to the strengthening of the US$; ac-
quisitions and purchase accounting adjustments at Energy
mainly relate to the acquisition of Solel Solar Systems, Ltd.,
see
Note  Acquisitions, dispositions and discontinued oper-
ations; the impairment of €, million results from the Di-
agnostics Division of the Healthcare Sector, see below.
Siemens performs the mandatory annual impairment test in the
three months ended September , in accordance with the ac-
counting policy stated in
Note  Summary of significant ac-
counting policies and
Note 3 Critical accounting estimates.
Except for the solar and hydro business (Division equivalent)
within the Energy Sector described below, the recoverable
amounts for the annual impairment test  for Divisions or
equivalents were estimated to be higher than the carrying
amounts. Key assumptions on which management has based
its determinations of the fair value less costs to sell for the Di-
visions’ or equivalents’ carrying amount include growth rates
up to .% in fiscal  and , respectively and after-tax
discount rates of .% to .% in fiscal  and .% to .% in
fiscal . Where possible, reference to market prices is made.
Net book
value as of
//
Translation
differences
and other
Acquisitions
and
purchase
accounting
adjustments
Dispositions
and reclas-
sifications to
assets classified
as held for
disposal
Impairments Net book
value as of
//
(in millions of €)
Sectors
Industry 5,196 43 77 (131) – 5,185
Energy 2,507 4 62 – (128) 2,445
Healthcare 7,826 83 56 (1) – 7,964
Cross-Sector Businesses
Siemens IT Solutions and Services 132 – 4 – (136) –
Financial Services (SFS) 102 – 10 – – 112
Siemens 15,763 130 209 (132) (264) 15,706
Net book
value as of
//
Translation
differences
and other
Acquisitions
and
purchase
accounting
adjustments
Dispositions
and reclas-
sifications to
assets classified
as held for
disposal
Impairments Net book
value as of
//
(in millions of €)
Sectors
Industry 4,925 267 28 (24) – 5,196
Energy 2,208 98 201 – – 2,507
Healthcare 8,476 492 3 – (1,145) 7,826
Cross-Sector Businesses
Siemens IT Solutions and Services 115 4 14 (1) – 132
Financial Services (SFS) 97 5 – – – 102
Siemens 15,821 866 246 (25) (1,145) 15,763