(11) Assets and Liabilities Held for Sale and Discontinued Operations
In November of 2007 the Company committed to a plan to sell the business of TomorrowNow, Inc., a wholly-owned subsidiary of SAP America, Inc. (a wholly owned subsidiary of SAP AG) and to cease engaging in the business model of providing support services relating to third party software. Negotiations with several interested parties have subsequently taken place. The assets and liabilities of TomorrowNow, including assets and liabilities of TomorrowNow entities in Europe, Australia and Asia which are expected to be sold within twelve months, have been classified as a disposal group held for sale and are presented separately in the accompanying balance sheet as at December 31, 2007.
TomorrowNow, Inc. is a distinct asset group with cash flows and operations that are separable from those of the rest of SAP. The operations of this disposal group were accounted for as a part of the product segment. U.S. GAAP requires the results of operations of any assets held for sale and any liabilities directly associated with those assets that qualify as a component of an entity with distinguishable operations and cash flows to be removed from income from continuing operations and reported as discontinued operations. The results of operations of such a component of an entity for any prior periods presented must also be reclassified as discontinued operations. The following table details the amounts reclassified to discontinued operations:
| € millions | 2007 | 2006 | 2005 |
| Total revenue | 14 | 9 | 3 |
| Total operating expense | – 36 | – 23 | – 10 |
| Operating loss before taxes | – 22 | – 14 | – 7 |
| Income taxes | 7 | 4 | 1 |
| Net loss from discontinued operations |
– 15 | – 10 | – 6 |
The following table details the major classes of assets and liabilities held for sale as at December 31, 2007:
| € millions | 2007 |
| Accounts receivable, net | 2 |
| Other assets | 4 |
| Current assets | 6 |
| Goodwill | 7 |
| Property, plant, and equipment, net | 1 |
| Other assets | 1 |
| Noncurrent assets | 9 |
| Total Assets held for sale | 15 |
| Accounts payable | 1 |
| Provisions | 3 |
| Deferred income | 5 |
| Current liabilities | 9 |
| Total Liabilities held for sale | 9 |
