Siemens 2006 Annual Report Download - page 252

Glossary
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O
P
R
S
U
V
Operations One component of Siemens’ reporting structure. Operations comprises the operating Groups, certain
operating activities not associated with these Groups and centrally managed items, but excludes
Financing and Real Estate and Corporate Treasury.
Projected benefit obligation (PBO) A measure to determine pension liabilities. The PBO is the actuarial present value as of a specific date of
employees’ vested and non-vested pension benefits incorporating compensation increases, attributable
to employee services performed as of that date.
R&D Abbreviation for “research and development.”
Rating Standardized evaluation of issuers’ credit standing and debt instruments, carried out by specialized
agencies (such as Standard & Poor’s or Moody’s Investors Service).
Risk management Systematic process to identify, assess and monitor various financial risk factors and to select and
implement measures to handle those risk factors.
SECShort for “Securities and Exchange Commission.” The primary federal agency in the U.S. responsible for
regulating the financial reporting practices of most publicly owned corporations in connection with the
buying and selling of stocks and bonds.
Standard & Poor’s Independent rating agency that provides evaluation of securities investment and credit risk.
Stock options Form of employee incentive and compensation. The employee is given an option to purchase a com-
pany’s shares if certain targets are met under specified conditions.
U.S. GAAP Short for “United States Generally Accepted Accounting Principles.” The accounting concepts, measure-
ments, techniques and standards of presentation applicable to financial statements in the U.S.
Volatility The degree of fluctuation for a given price or rate, such as a stock price or currency exchange rate.