Siemens 2010 Annual Report Download - page 235

147 Consolidated Financial Statements
148 Consolidated Statements of Income
149 Consolidated Statements of Comprehensive Income
150 Consolidated Statements of Financial Position
151 Consolidated Statements of Cash Flow
152 Consolidated Statements of Changes in Equity
154 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
261 Additional information

Under a strategic reorientation of Siemens IT Solutions and
Services, as previously announced by Siemens, a restructuring
project was initiated in fiscal ; it aims at providing a com-
petitive structure of the Siemens IT business by reducing the
workforce by , jobs worldwide. The related program mea-
sures mainly are severance payments in conjunction with
transfer companies, early retirement arrangements and sever-
ance payments. Assumptions concern mainly the duration of
the individual participation in transfer companies. In fiscal
, restructuring costs comprised termination benefits of
€, which were reported at Siemens IT Solutions and Ser-
vices.
In fiscal , the SG&A program was initiated, which aimed
at reducing marketing, selling, general and administrative ex-
pense (SG&A) by approximately €. billion by the year . In
fiscal , net expenses under the SG&A program of €
were reported in Corporate items which include termination
benefits resulting from the SG&A program and other ongoing
personnel-related restructuring measures of €. They also
include a gain of € attributable to the reversal of accrued
termination benefits recognized as of September ,  for
the German part of SG&A and related programs which is due to
a change in estimate on the respective program measures, i.e.
more intensive use of the early retirement arrangements as
compared to severance payments in conjunction with transfer
companies. SG&A program-related termination benefits are
reported in Corporate items and pensions.
Restructuring costs are recorded in Income (loss) from continu-
ing operations before income taxes. Other current liabilities
include the majority of the termination benefits.
 – Other operating income
Year ended September ,
 
Gains on disposals of businesses 134 409
Gains on sales of property,
plant and equipment and intangibles 287 356
Other 435 300
856 1,065
Gains on disposals of businesses, in fiscal , includes €
gain related to the sale of our Airfield Solutions Business of the
Industry Sector and € from the sale of our Roke Manor ac-
tivities in the U.K., held centrally. Gains on disposals of busi-
nesses in fiscal  include € from the sale of Siemens’
investment in FSC presented in the segment Equity Invest-
ments. See Note  Acquisitions, dispositions and discontinued
operations for further information.
Real estate, which we had recognized as a lessee finance lease
under a previous sale and lease back transaction, was sold by
the lessor (entities controlled by the Siemens Pension-Trust
e.V.) in fiscal , which resulted in the dissolution of our li-
ability from continuing lease involvement of € (non-cash
transaction), the removal of real estate with a carrying amount
of € and a gain of € reported in Gains on sales of prop-
erty, plant and equipment and intangibles. In connection with
the new real estate operating lease, entered into in the second
quarter of fiscal , the Company received lease subsidies
amounting to € which are deferred and recognized in in-
come over the term of the new lease. In fiscal , Gains on
sales of property, plant and equipment and intangibles also
includes a gain of € from the sale of various properties in
Zug, Switzerland. Gains on sales of property, plant and equip-
ment and intangibles in fiscal , includes a pre-tax gain of
€, net of related costs, from the sale of Siemens’ residential
real estate holdings. The transaction is presented in Siemens
Real Estate.
Other, in fiscal , includes gains from settlement agree-
ments with former Managing and Supervisory Board members
in conjunction with compliance matters, mainly from Siemens’
directors and officers insurance of €; as well as € related
to the recovery of funds frozen by authorities. For further in-
formation on legal and regulatory matters included in Other
see Note . In the third quarter of fiscal , the Company
ceased to consolidate a subsidiary because of a loss of control
and began accounting for the investment using the equity
method of accounting. This loss of control resulted in a gain of
€ that is primarily attributable to the dilution of derivatives
financial liabilities held by the investee. Other in fiscal ,
includes income related to legal and regulatory matters.