Siemens 2013 Annual Report Download - page 282

92 A. To our Shareholders 117 B. Corporate Governance 155 C. Combined Management Report

As of September ,  and , the Company had in total
€, million and €, million, respectively of gross tax loss
carryforwards. The Company assumes that future operations
will generate sufficient taxable income to realize the deferred
tax assets.
Deferred tax assets have not been recognized with respect of
the following items (gross amounts):
September ,
(in millions of €)  
Deductible temporary differences 150 165
Tax loss carryforward 941 662
1,091 827
As of September ,  and , € million and € mil-
lion, respectively the major part of the unrecognized tax loss
carryforwards expire over the periods to .
The Company has ongoing regular tax audits concerning open
income tax years in a number of jurisdictions. Adequate provi-
sions for all open tax years have been foreseen. Among others,
the German Tax Audit rejected the deductible treatment of ex-
penses in connection with the buy-back of the convertible
bond issued . Accordingly, line item Capital reserve was
reduced by € million and a tax expense of € million was
recognized in fiscal . The Company filed an appeal and will
rigorously defend the position taken in tax returns. In addition,
the Company has applied for several mutual agreement proce-
dures to avoid double taxation.
The Company recorded deferred tax liabilities for income taxes
and foreign withholding taxes on future dividend distributions
from subsidiaries which are actually intended to be repatriat-
ed. Apart from this liability, the Company has not recognized
deferred tax liabilities for income taxes or foreign withholding
taxes on the cumulative earnings of subsidiaries of €,
million and €, million, respectively in fiscal  and 
because the earnings are intended to be permanently reinvest-
ed in the subsidiaries.
Including the items charged or credited directly to equity and
the expense (benefit) from continuing and discontinued oper-
ations, the income tax expense (benefit) consists of the fol-
lowing:
Year ended September ,
(in millions of €)  
Continuing operations 1,630 1,994
Discontinued operations 158 77
Income and expenses recognized
directly in equity 738 (1,194)
2,526 877
NOTE  Available-for-sale financial assets
The following tables summarize the current portion of the
Company ’s investment in available-for-sale financial assets:
September , 
Cost Fair value
Unrealized
Gain
Unrealized
Loss
(in millions of €)
Equity instruments 6 8 2 –
Debt instruments 378 382 3 –
Fund shares 195 211 16 –
580 601 21 (1)
September , 
Cost Fair value
Unrealized
Gain
Unrealized
Loss
(in millions of €)
Equity instruments 6 8 2 –
Debt instruments 304 308 5 –
Fund shares 196 208 13 (1)
506 524 19 (1)
Non-current available-for-sale financial assets, which are in-
cluded in line item Other financial assets are measured at fair
value, if reliably measurable. They primarily consist of equity
instruments, mainly comprising shares in AtoS and, since July
, in OSRAM. As of September ,  and  non-cur-
rent available-for-sale financial assets measured at cost amount
to € million and € million, respectively; available- for-
sale financial assets measured at fair value amount to €,
million and € million, respectively. Unrealized gains (losses)
in fiscal  and  resulting from non-current available-
for-sale financial assets at fair value were € million and
€ million, respectively.