Siemens 2012 Annual Report Download - page 257

135 D. Consolidated Financial Statements 239 E. Additional Information
140 D. Consolidated Statements of Changes in Equity
142 D. Notes to Consolidated Financial Statements
232 D. Supervisory Board and Managing Board
136 D. Consolidated Statements of Income
137 D. Consolidated Statements of Comprehensive Income
138 D. Consolidated Statements of Financial Position
139 D. Consolidated Statements of Cash Flow

As of the beginning of fiscal , Siemens rearranged its re-
porting structure of the segments. The previously reported
amounts of goodwill as of September ,  have been real-
located to conform to Siemens’ new reporting structure. There-
fore, new cash generating units, which are represented by a
Division or equivalent, were determined. Goodwill has been
reallocated based on relative fair values of the cash generating
units. Prior-year information has been adjusted accordingly.
Siemens performs the mandatory annual impairment test in
the three months ended September , in accordance with the
accounting policy stated in     
  and     -
. 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 Divisions’ or equivalents’ carrying
amount include terminal value growth rates up to .% in fis-
cal  and .% in fiscal , respectively and after-tax dis-
count rates of .% to .% in fiscal  and .% to .% in
fiscal . Where possible, reference to market prices is made.
For the purpose of estimating the fair value less costs to sell of
the Divisions or equivalents, cash flows were projected for the
next five years based on past experience, actual operating re-
sults and management’s best estimate about future develop-
ments as well as market assumptions.
The fair value less costs to sell is mainly driven by the terminal
value which is particularly sensitive to changes in the assump-
tions on the terminal value growth rate and discount rate.
Both assumptions are determined individually for each Divi-
sion or equivalent. Discount rates reflect the current market
assessment of the risks specific to each Division or equivalent
and are based on the weighted average cost of capital for the
Divisions or equivalents (for SFS the discount rate represents
cost of equity). Terminal value growth rates take into consider-
ation external macroeconomic sources of data and industry
specific trends.
Carrying
amount as of
//
Translation
differences
and other
Acquisitions
and purchase
accounting
adjustments
Dispositions,
reclassifications
incl. reclassifica-
tions to assets
classified as held
for disposal
Impairments Carrying
amount as of
//
(in millions of €)
Sectors
Energy 2,269 82 422 (54) – 2,718
Healthcare 7,964 287 63 – – 8,314
Industry 3,802 121 278 (28) – 4,173
Infrastructure & Cities 1,558 40 150 (6) – 1,742
Total Sectors 15,594 530 913 (88) – 16,949
Financial Services (SFS) 112 10 – (1) – 121
Siemens 15,706 539 913 (89) – 17,069
Carrying
amount as of
//
Translation
differences
and other
Acquisitions
and purchase
accounting
adjustments
Dispositions,
reclassifications
incl. reclassifica-
tions to assets
classified as held
for disposal
Impairments Carrying
amount as of
//
(in millions of €)
Sectors
Energy 2,337 14 58 (12) (128) 2,269
Healthcare 7,826 83 56 (1) – 7,964
Industry 3,903 24 7 (131) – 3,802
Infrastructure & Cities 1,465 9 74 12 – 1,558
Total Sectors 15,531 130 195 (132) (128) 15,594
Siemens IT Solutions and Services 132 – 4 – (136) –
Financial Services (SFS) 102 – 10 – – 112
Siemens 15,763 130 209 (132) (264)115,706
1 Impairment losses recognized in fiscal  relate to activities classified as discon -
tinued operations. Impacts on the Consolidated Statements of Income are presented
in discontinued operations for all years presented.