Siemens 2007 Annual Report Download - page 148

148 Management’s discussion and analysis
July 4, 2006. The repayment of commercial paper programs was the major effect
for cash outfl ows of €1.762 billion related to changes in short term debt. Dividends
paid to shareholders amounted to €1.201 billion in fi scal 2006.
Capital Resources and Requirements
Our capital resources are comprised of cash and cash equivalents, current avail-
able-for-sale fi nancial assets, total equity and cash fl ow from operating activities.
Our capital requirements include scheduled debt service, regular capital spend-
ing and ongoing cash requirements from operating activities.
Net liquidity results from total liquidity, comprised of Cash and cash equiva-
lents and available-for-sale fi nancial assets, less total debt, comprised of short-
term debt and current maturities of long-term debt and long-term debt. Total debt
relates to our commercial paper, medium-term notes, bonds, loans from banks
and obligations under fi nance leases as stated on the Consolidated Balance Sheets.
We use the net liquidity measure for internal corporate fi nance management, as
well as external communication with investors, analysts and rating agencies.
Our sources of liquidity consist of a variety of short and long-term fi nancial
instruments including loans from fi nancial institutions, commercial paper, notes
and bonds.
Credit facilities – We have three credit facilities at our disposal, which are for
general corporate purposes. Our credit facilities at September 30, 2007 consist of
€6.797 billion in committed lines of credit.
¢ U.S.$5.0 billion undrawn syndicated multi-currency revolving credit facility
expiring March 2012 provided by a syndicate of international banks;
¢ €450 million undrawn revolving credit facility expiring September 2012 pro-
vided by a domestic bank;
¢ U.S.$4.0 billion syndicated multi-currency credit facility expiring August 2013
provided by a syndicate of international banks. The facility comprises a U.S.$1.0
billion term loan which was drawn in January 2007 and an undrawn U.S.$3.0 bil-
lion revolving tranche.
September 30,
(€ in millions) 2007 2006
Cash and cash equivalents 4,005 10,214
Current available-for-sale fi nancial assets 193 596
Total liquidity 4,198 10,810
Short-term debt and current maturities of long-term debt 5,637 2,175
Long-term debt 9,860 13,122
Total debt 15,497 15,297
Net liquidity (11,299) (4,487)