Siemens 2012 Annual Report Download - page 250

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance
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working capital of Siemens IT Solutions and Services. Siemens
also recorded contractual obligations, loss provisions and risk
contingencies arising from the sales agreements with AtoS
presented in line items Current provisions, Provisions and Oth-
er current financial liabilities.
The conditions for Siemens IT Solutions and Services to be
classified as held for disposal and discontinued operations
were fulfilled as of the second quarter of fiscal . The results
are presented as discontinued operations in the Company ’s
Consolidated Statements of Income for all periods presented
with the exception of certain business activities which remain
in the Siemens Group. Business activities which remain with
Siemens primarily relate to project HERKULES, which is report-
ed in line item Centrally managed portfolio activities of Seg-
ment information and continues to be accounted for under the
equity method.
Year ended September ,
(in millions of €)  
Revenue –2,705
Expenses (33) (3,087)
Gain (loss) on the measurement to fair value
less costs to sell or on the disposal of the
disposal group constituting the discontinued
operations 45 (743)
Pretax gain (loss) from discontinued
operations 12 (1,125)
Income taxes on ordinary activities 14 97
Income taxes on the gain (loss) on the
measurement to fair value less costs to sell
or on the disposal of the disposal group
constituting the discontinued operations 15 202
Gain (loss) from discontinued operations,
net of income taxes 41 (826)
The total loss recognized in fiscal  on the disposal of the
disposal group Siemens IT Solutions and Services amounted to
€ million. This amount includes the impairment of the
Goodwill and other non-current assets of Siemens IT Solutions
and Services of € million, a deconsolidation gain of € mil-
lion, both presented under line item Gain (loss) on the mea-
surement to fair value less costs to sell or on the disposal of
the disposal group constituting the discontinued operations as
well as an amount of € million relating to the obligation to
provide support to AtoS in connection with integration and
training program which was recognized as restructuring ex-
penses at Siemens IT Solutions and Services in the third quar-
ter of fiscal  and presented under line item Expenses. Un-
der line item Gain (loss) on the measurement to fair value less
costs to sell or on the disposal of the disposal group constitut-
ing the discontinued operations also expenses for carve out
activities necessary to establish Siemens IT Solutions and Ser-
vices as a separate legal entity of € million were presented
in fiscal .
In fiscal , line item Gain (loss) on the measurement to fair
value less costs to sell or on the disposal of the disposal group
constituting the discontinued operations includes, besides ex-
penses for carve out activities, a gain of € million. This effect
is due to revised estimates with regard to the transaction-relat-
ed provisions including the settlement with AtoS on the cash
purchase price adjustment relating to the net debt and net
working capital of Siemens IT Solutions and Services reached
in the second quarter of fiscal . A final settlement with
AtoS on all contractual obligations arising from the sales
agreements was not achieved in fiscal .
Revenue resulting from transactions between Siemens IT Solu-
tions and Services and joint ventures and associates of
Siemens in fiscal  amounted to € million. Expenses re-
sulting from transactions between Siemens IT Solutions and
Services and joint ventures and associates of Siemens in fiscal
 amounted to € million.
Former segments SV and Com –
discontinued operations
Net results of discontinued operations of SV activities and the
former operating segment Com presented in the Consolidated
Statements of Income in fiscal  and  amounted to
€() million (thereof €() million income tax) and €()
million (thereof €() million income tax), respectively. The
net results in fiscal  relate mainly to former operating seg-
ment Com and include settlements of a matter with the Greek
State with a pretax impact of €() million (€() million
after tax) as well as negative tax effects of € million. The
Company recorded a reserve in the second quarter of fiscal
 with regard to the restructuring measures before the sale
of the SV activities in December . Siemens sold its SV activ-
ities in December .