Siemens 2011 Annual Report Download - page 343

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.2 Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow

ed for under the equity method or at cost and current avail-
able-for-sale financial assets, which are not allocated to a Sec-
tor, SFS, CMPA, SRE, Corporate items or Corporate Treasury.
For strategic reasons, as of September ,  and , NSN,
BSH and EN, are, among others, reported in Equity Invest-
ments, see
Note 19 Investments accounted for using the
equity method for further information.
Financial Services (SFS)
Financial Services provides a variety of financial services and
products both to third parties and to other Siemens entities
and their customers.
RECONCILIATION TO
CONSOLIDATED FINANCIAL STATEMENTS
Reconciliation to Consolidated Financial Statements contains
businesses and items not directly related to Siemens’ report-
able segments:
Centrally managed portfolio activities
Beginning with fiscal , Segment information includes a
line item for centrally managed activities generally intended
for divestment or closure. In fiscal  and , it primarily
includes activities remaining from divestments and discontin-
ued operations such as from Siemens IT Solutions and Servic-
es and from the former Com business as well as effects from
EA sold in the second quarter of fiscal . For further infor-
mation, see
Note 4 Acquisitions, dispositions and discontin-
ued operations.
Siemens Real Estate (SRE)
Siemens Real Estate owns and manages the Siemens real es-
tate portfolio and offers a range of services encompassing real
estate development, real estate disposal and asset manage-
ment, as well as lease and services management. SRE com-
pleted the project of bundling Siemens’ real estate at the end
of fiscal . In fiscal  and , assets with a carrying
amount of € million and € million, respectively, were
transferred to SRE under a multi-year program to bundle
Siemens’ real estate.
Corporate items and pensions
Corporate items and pensions includes corporate charges
such as personnel costs for corporate headquarters, corporate
projects and non-operating investments or results of corpo-
rate-related derivative activities and costs for carve out activi-
ties managed by corporate, which are charged to the respec-
tive segment when the disposal gain or loss is realized or
when the activities are classified as discontinued operations.
Pensions includes the Company ’s pension related income (ex-
pense) not allocated to the segments, SRE or Centrally man-
aged portfolio activities.
Commencing fiscal , infrastructure costs, previously re-
ported in Corporate items, are allocated to the segments, SRE
and Centrally managed portfolio activities; costs for corporate
management and corporate technology remain in Corporate
items. Prior-year amounts are reported on a comparable basis.
Eliminations, Corporate Treasury
and other reconciling items
Eliminations, Corporate Treasury and other reconciling items
comprise consolidation of transactions within the segments,
certain reconciliation and reclassification items and the activi-
ties of the Company ’s Corporate Treasury. It also includes in-
terest income and expense, such as, for example, interest not
allocated to segments or Centrally managed portfolio activi-
ties (referred to as financing interest), interest related to Cor-
porate Treasury activities or resulting consolidation and rec-
onciliation effects on interest.
MEASUREMENT – SEGMENTS
Accounting policies for Segment information are generally
the same as those used for Siemens, which are described in
Note 2 Summary of significant accounting policies. Lease
transactions, however, are classified as operating leases for
internal and segment reporting purposes. Corporate overhead
is generally not allocated to segments, except for central in-
frastructure costs which are primarily allocated to the Sectors.
Intersegment transactions are based on market prices.
Profit of the Sectors and of Equity Investments:
Siemens’ Managing Board is responsible for assessing the per-
formance of the segments. The Company ’s profitability mea-
sure of the Sectors and Equity Investments is earnings before
financing interest, certain pension costs, and income taxes as
determined by the chief operating decision maker (Profit).
Profit excludes various categories of items, not allocated to
the Sectors and Equity Investments, which management does
not regard as indicative of their performance. For fiscal ,
Company ’s management approved a special remuneration
presented in Corporate items which was primarily allocated to