Siemens 2012 Annual Report Download - page 252

1 A. To our Shareholders 49 C. Combined Management Report 21 B. Corporate Governance
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Item Interest income (expense) of Operations, net includes in-
terest income and expense primarily related to receivables
from customers and payables to suppliers, interest on advanc-
es from customers and advanced financing of customer con-
tracts. Item Other interest income (expense), net includes all
other interest amounts primarily consisting of interest relating
to corporate debt, and related hedging activities, as well as in-
terest income on corporate assets.
Item Interest income (expense) other than pension includes
the following with respect to financial assets (financial liabili-
ties) not at fair value through profit or loss:
Year ended September ,
(in millions of €)  
Total interest income on financial assets 913 826
Total interest expenses on financial liabilities (792) (959)
1 Relating to hedged positions, herein only the interest expense on hedged items not
at fair value through profit and loss is included, whereas item Interest expense,
other than pension also contains the offsetting effect on interest of the hedging
instrument. The difference is due to the disparities of interest rate swap contracts.
The components of item Income (expense) from available-
for-sale financial assets, net were as follows:
Year ended September ,
(in millions of €)  
Dividends received 18 12
Gains on sales, net 101 881
Impairment (17) (40)
Other 11
Income (expense) from
available-for-sale financial assets, net 103 854
In fiscal , item Gains on sales, net includes € million gains
from the sale of the % interest in OAO Power Machines held by
the Energy Sector; € million of the gain relate to gains recycled
from Other comprehensive income as of September , .
The investment was classified as held for disposal. The transac-
tion closed in December . Regarding impacts in connection
with the disposal of Areva NP S.A.S. in fiscal , see  
,     .
Item Miscellaneous financial income (expense), net, in fiscal
 and , comprises gains (losses) of €() million and
€() million, respectively, from the accretion of provisions
and the increase (decrease) in the discount rate, as well as ex-
penses as a result of allowances and write offs of finance re-
ceivables, 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 2,488 3,947
Foreign 4,791 5,661
7,279 9,608
Income tax expense (benefit) consists of the following:
Year ended September ,
(in millions of €)  
Current tax:
German corporation and trade taxes 143 293
Foreign income taxes 1,527 1,253
1,670 1,546
Deferred tax:
Germany 452 378
Foreign (28) 308
424 686
Income tax expense 2,094 2,232
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 positively affected
by receivables due to several mutual agreement procedures.