Table:
|  |  | Fiscal year |  |
| --- | --- | --- | --- |
| (in millions of €, earnings per share in €) | 2019 | 2018 | % Change |
| Digital Industries | 2,880 | 2,898 | (1) % |
| Smart Infrastructure | 1,500 | 1,574 | (5) % |
| Gas and Power | 679 | 722 | (6) % |
| Mobility | 983 | 958 | 3 % |
| Siemens Healthineers | 2,461 | 2,221 | 11 % |
| Siemens Gamesa Renewable Energy | 482 | 483 | 0 % |
| Industrial Businesses | 8,986 | 8,857 | 1 % |
| Adjusted EBITA margin Industrial Businesses | 10.9 % | 11.1 % |  |
| Financial Services | 632 | 633 | 0 % |
| Portfolio Companies | (71) | (305) | 77 % |
| Reconciliation to Consolidated Financial Statements | (2,028) | (1,135) | (79) % |
| Income from continuing operations before income taxes | 7,518 | 8,050 | (7) % |
| Income tax expenses | (1,872) | (2,054) | 9 % |
| Income from continuing operations | 5,646 | 5,996 | (6) % |
| Income from discontinued operations, net of income taxes | 3 | 124 | (98) % |
| Net income | 5,648 | 6,120 | (8) % |
| Basic earnings per share | 6.41 | 7.12 | (10) % |
| ROCE | 11.1 % | 12.6 % |  |
Paragraphs:
A.4.2 Income
As a result of the development described for the segments, Income from continuing operations before income taxes declined 7 %. Severance charges for continuing operations were € 619 million, of which € 492 million were in Industrial Businesses. Accordingly, Adjusted EBITA margin Industrial Businesses excluding severance charges was 11.5 % in fiscal 2019. In fiscal 2018, severance charges for continuing operations were € 923 million, of which € 669 million were in Industrial Businesses.
The tax rate of 25% for fiscal 2019 was below the tax rate of 26% for the prior year, benefiting mainly from the reversal of income tax provisions outside Germany. As a result, Income from continuing operations declined 6%.
Income from discontinued operations, net of income taxes in the prior year included positive effects from the release of a provision related to former Communications activities.
The decline in basic earnings per share reflects the decrease of Net income attributable to Shareholders of Siemens AG, which was € 5,174 million in fiscal 2019 compared to € 5,807 million in fiscal 2018, partially offset by a lower number of weighted average shares outstanding. Basic earnings per share excluding severance charges was € 6.93.
As expected, ROCE at 11.1 % was below the target range set in our Siemens Financial Framework, reflecting in particular the effects from portfolio transactions in recent years, including the acquisitions of Mentor and Mendix at Digital Industries and the merger of Siemens’ wind power business with Gamesa Corporación Tecnológica, S. A. that created SGRE. The decline year-over-year was due both to lower income before interest after tax and to higher average capital employed.
Question:
What do the decline in basic earnings per share represent?
Answer: The decline in basic earnings per share reflects the decrease of Net income attributable to Shareholders of Siemens AG, which was € 5,174 million in fiscal 2019 compared to € 5,807 million in fiscal 2018, partially offset by a lower number of weighted average shares outstanding. Basic earnings per share excluding severance charges was € 6.93.