Siemens 2013 Annual Report Download - page 280

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report
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Item Interest income (expense) other than from post-employ-
ment benefits includes the following with respect to financial
assets (financial liabilities) not at fair value through profit or
loss:
Year ended September ,
(in millions of €)  
Total interest income on financial assets 931 918
Total interest expenses on financial liabilites
(767) (796)
1 Relating to hedged positions, herein only the interest expenses on hedged items
not at fair value through profit and loss is included, whereas item Interest expenses,
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 18
Gains on sales, net 17 101
Impairment (116) (17)
Other 11
Income (expenses) from
available-for-sale financial assets, net (80) 103
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 Sep-
tember , . The investment was classified as held for dis-
posal. The transaction closed in December .
Item Miscellaneous financial income (expense), net, in fiscal
 and , includes gains (losses) of € million and
€() million, respectively, from the accretion of provisions
and the increase (decrease) in the discount rate, as well as
expenses as a result of allowances and write offs of finance
receivables, net of reversals of € million and € million,
respectively. Furthermore, gains (losses) related to derivative
financial instruments are included.
NOTE  Income taxes
Income from continuing operations before income tax is at-
tributable to the following geographic regions:
Year ended September ,
(in millions of €)  
Germany 1,227 2,266
Foreign 4,615 4,370
5,843 6,636
Income tax expense (benefit) consists of the following:
Year ended September ,
(in millions of €)  
Current tax:
German corporation and trade taxes 543 148
Foreign income taxes 1,236 1,510
1,779 1,658
Deferred tax:
Germany 233 419
Foreign (382) (83)
(149) 336
Income tax expenses 1,630 1,994
The current income tax expenses in fiscal  and  in-
cludes adjustments recognized for current tax of prior years in
the amount of € million and €() million, respectively. The
current tax expense is positively impacted by the closing of a
mutual agreement procedure regarding transfer prices be-
tween Germany and the U.S. in the fourth quarter of fiscal
 leading to an increase of German current taxes and an
overcompensating decrease of foreign income taxes. In fiscal
 the German current tax expense is positively affected by
receivables due to several mutual agreement procedures.
The deferred tax expense (benefit) in fiscal  and  in-
cludes tax effects of the origination and reversal of temporary
differences of €() million and €() million, respectively.
The German deferred tax expense in fiscal  is mainly relat-
ed to the utilization of tax loss carryforwards.