Siemens 2005 Annual Report Download - page 200
Download and view the complete annual report
Please find page 200 of the 2005 Siemens annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190 -
191 -
192 -
193 -
194 -
195 -
196 -
197 -
198 -
199 -
200 -
201 -
202 -
203 -
204 -
205 -
206 -
207 -
208 -
209 -
210 -
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
 |
 |
200
Derivative currency contracts – The fair value of forward foreign exchange contracts is
based on forward exchange rates. Currency options are valued on the basis of quoted market
prices or on estimates based on option pricing models.
Credit default swaps – The fair value of credit default swaps is calculated by comparing dis-
counted expected future cash flows using current bank conditions with discounted expected
future cash flows using contracted conditions.
As of September 30, 2005 and 2004, the net fair value of derivative financial instruments
amounted to €172 and €489, respectively, which was recorded on the Consolidated Balance Sheets
in Other current assets amounting to €812 and €693, respectively, and Other current liabilities in
the amount of €640 and €204, respectively.
Non-derivative financial instruments
The fair values for non-derivative financial instruments are determined as follows: Fair value of
cash and cash equivalents, short-term receivables, accounts payable, additional liabilities and
commercial paper and borrowings under revolving credit facilities approximate their carrying
amount due to the short-term maturities of these instruments.
Financial assets and securities
Fair values for marketable securities and publicly traded, long-term equity investments are
derived from quoted market prices. It is not practicable to estimate the fair value of the Compa-
ny’s long-term investments which are not publicly traded, as there are no readily available market
prices. The following table presents the fair value (if readily available) and carrying amount of
long-term investments:
Financing receivables
Long-term fixed-rate and variable-rate receivables are evaluated by the Company based on
parameters such as interest rates, specific country risk factors, individual creditworthiness of the
customer and the risk characteristics of the financed project. Based on this evaluation, allowances
are taken to account for the expected losses of these receivables. As of September 30, 2005 and
2004, the carrying amounts of such receivables, net of allowances, approximates their fair value.
Management’s discussion and analysis
September 30,
2005 2004
Fair value 3,935 4,293
Carrying amount 3,768 4,122