Siemens 2006 Annual Report Download - page 251

Glossary 247
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Financing and Real Estate The worldwide leasing, lending, financing and real estate activities of Siemens Financial Services (SFS)
and Siemens Real Estate (SRE).
Fully diluted Earnings per share are fully diluted when they reflect the effects of an assumed conversion or the
exercise of all potentially dilutive securities or stock options.
Functional costs Functional costs include cost of sales, R&D expenses, marketing and selling expenses, and general
administration expenses.
Funded status ofa pension plan The difference between a pension plan’s projected benefit obligation (PBO) and the fair market value
of assets designated to the pension plan (plan assets) as of a specific date.
GASC Short for “German Accounting Standards Committee.” An independent registered association to
develop, among other things, accounting standards for application in the area of consolidated financial
reporting.
German GAAP Short for “Generally Accepted Accounting Principles in Germany.” The accounting concepts,
measurements, techniques and standards of presentation used in financial statements in Germany
pursuant to the German Commercial Code (HGB).
Goodwill The excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities
assumed.
Group profit Measure of Group profitability, defined as earnings before financing interest, certain pension costs
and income taxes.
Hedging A strategy used to minimize exposure to changes in prices, interest rates or exchange rates by means
of derivative financial instruments (options, swaps, forward contracts, etc.).
Hybrid bond A hybrid bond is a bond that due to its subordination bears the character of both debt and equity.
IFRS Short for “International Financial Reporting Standards”, previously “International Accounting Standards”
(IAS). According to IAS Regulation of the European Union publicly traded European Union companies
are required to prepare their consolidated financial statements in accordance with IFRS beginning with
January 2005, respectively January 2007 at the latest.
Joint venture A form of business partnership between two or more companies to engage in a commercial enterprise
with mutual sharing of profits and losses.
Medium-term note programFlexible financing framework providing for the issuance of notes in rotation in the context of a program
unrestricted in time (constant issue). The notes may be issued in several tranches, with terms and
conditions and time of issue being determined in accordance with then current goals and prevailing
market conditions.
Moody’s Investors Service Independent rating agency that assesses securities investment and credit risk.
Net capital employed Net capital employed is the asset measure used to assess the capital intensity of Operations. Its definition
corresponds with the Group profit measure.
Net cash from operating Total of cash provided by (used in) operating and investing activities as determined in the Statements
and investing activities of Cash Flow.
Net periodic pension cost The amount of pension costs recorded in the Statements of Income. Net periodic pension cost compo-
nents include service cost, interest cost, expected return on plan assets, amortization of unrecognized
prior service cost (if any), gains or losses recognized and amortized after exceeding a certain corridor
(if any), amortization of unrecognized initial net obligation and/or initial net asset.