Philips 2011 Annual Report Download - page 226

18 Definitions and abbreviations 18 - 18
226 Annual Report 2011
International Standardization Organization (ISO)
The International Standardization Organization (ISO)is the world’s
largest developer and publisher of International Standards. ISO is a
network of the national standards institutes of more than 160
countries, one member per country, with a Central Secretariat in
Geneva, Switzerland, that coordinates the system. ISO is a non-
governmental organization that forms a bridge between the public and
private sectors.
Light-Emitting Diode (LED)
Light-Emitting Diode (LED), in electronics, is a semiconductor device
that emits infrared or visible light when charged with an electric
current. Visible LEDs are used in many electronic devices as indicator
lamps, in automobiles as rear-window and brake lights, and on
billboards and signs as alphanumeric displays or even full-color posters.
Infrared LEDs are employed in autofocus cameras and television
remote controls and also as light sources in fiber-optic
telecommunication systems.
Mature geographies
Mature geographies are the highly developed markets comprising of
Western Europe, North America, Japan, South Korea, Israel, Australia
and New Zealand.
Millennium Development Goals (MDG)
Adopted by world leaders in the year 2000 and set to be achieved by
2015, the Millennium Development Goals (MDGs) provide concrete,
numerical benchmarks for tackling extreme poverty in its many
dimensions. The MDGs also provide a framework for the entire
international community to work together towards a common end –
making sure that human development reaches everyone, everywhere.
Goals include for example eradicating extreme poverty and hunger,
achieving universal primary education and ensuring environmental
sustainability.
Net debt : group equity ratio
The % distribution of net debt over group equity plus net debt.
Net Promoter Score (NPS)
The Net Promoter Score is a tool to measure the loyalty of Philips’
customers to its products. It is measured through one question: “Based
on your experience with this product, how likely are you to
recommend your Philips product to a friend, relative or colleague?”
Philips categorizes the answers as ‘Promoters’, ‘Passives’ or
‘Detractors’. The NPS is measured by deducting the percentage of
Detractors (score 0 to 6) from the percentage of customers who are
Promoters (score 9 to 10).
Non-Governmental Organization (NGO)
A non-governmental organization (NGO) is any non-profit, voluntary
citizens’ group which is organized at a local, national or international
level.
Operational carbon footprint
A carbon footprint is the total set of greenhouse gas emissions caused
by an organization, event, product or person; usually expressed in
kilotons CO2-equivalent. The Philips operational carbon footprint is
calculated on a half-year basis and includes industrial sites
(manufacturing and assembly sites), non-industrial sites (offices,
warehouses, IT centers and R&D facilities), business travel (lease and
rental cars and airplane travel) and logistics (air, sea and road
transport).
Perfluorinated compounds (PFC)
A perfluorinated compound (PFC) is an organofluorine compound with
all hydrogens replaced by fluorine on a carbon chain—but the molecule
also contains at least one different atom or functional group. PFCs have
unique properties to make materials stain, oil, and water resistant, and
are widely used in diverse applications. PFCs persist in the environment
as persistent organic pollutants, but unlike PCBs, they are not known
to degrade by any natural processes due to the strength of the carbon–
fluorine bond.
Polyvinyl chloride (PVC)
Polyvinyl chloride, better known as PVC or vinyl, is an inexpensive
plastic so versatile it has become completely pervasive in modern
society. The list of products made from polyvinyl chloride is exhaustive,
ranging from phonograph records to drainage and potable piping, water
bottles, cling film, credit cards and toys. More uses include window
frames, rain gutters, wall paneling, doors, wallpapers, flooring, garden
furniture, binders and even pens.
Productivity
Philips uses Productivity internally and as mentioned in this annual
report as a non-financial indicator of efficiency that relates the added
value, being income from operations adjusted for certain items such as
restructuring and acquisition-related charges etc. plus salaries and
wages (including pension costs and other social security and similar
charges), depreciation of property, plant and equipment, and
amortization of intangibles, to the average number of employees over
the past 12 months.
Registration, Evaluation, Authorization and Restriction of
Chemical substances (REACH)
REACH is the European Community Regulation on chemicals and their
safe use (EC 1907/2006). It deals with the Registration, Evaluation,
Authorisation and Restriction of Chemical substances. The law entered
into force on June 1, 2007. The aim of REACH is to improve the
protection of human health and the environment through the better
and earlier identification of the intrinsic properties of chemical
substances.
Regulation on Hazardous Substances (RoHS)
The RoHS Directive prohibits all new electrical and electronic
equipment placed on the market in the European Economic Area from
containing lead, mercury, cadmium, hexavalent chromium, poly-
brominated biphenyls (PBB) or polybrominated diphenyl ethers
(PBDE), except in certain specific applications, in concentrations
greater than the values decided by the European Commission. These
values have been established as 0.01% by weight per homogeneous
material for cadmium and 0.1% for the other five substances.
Return on equity (ROE)
Income from continuing operations as a % of average shareholders’
equity (calculated on the quarterly balance sheet positions).
Turnover rate of net operating capital
Sales divided by average net operating capital (calculated on the
quarterly balance sheet positions).
Waste Electrical and Electronic Equipment (WEEE)
The Waste Electrical and Electronic Equipment Directive (WEEE
Directive) is the European Community directive on waste electrical and
electronic equipment which became European Law in February 2003,
setting collection, recycling and recovery targets for all types of
electrical goods. The directive imposes the responsibility for the
disposal of waste electrical and electronic equipment on the
manufacturers of such equipment.
Weighted Average Statutory Tax Rate (WASTR)
The reconciliation of the effective tax rate is based on the applicable
statutory tax rate, which is a weighted average of all applicable
jurisdictions. This weighted average statutory tax rate (WASTR) is the
aggregation of the result before tax multiplied by the applicable
statutory tax rate without adjustment for losses, divided by the group
result before tax.