Siemens 2007 Annual Report Download - page 328

328 Glossary
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 benefi t obligation (PBO) A measure to determine pension liabilities. The PBO is the actuarial present value as of a specifi c date of
employees’ vested and non-vested pension benefi ts 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).
Return on capital employed (ROCE) A measure for the effi ciency and profi tability of a company’s investments. It is an indicator of how well
a company is utilizing capital to generate profi ts.
Risk management Systematic process to identify, assess and monitor various fi nancial risk factors and to select and
implement measures to handle those risk factors.
SEC Short for “Securities and Exchange Commission.” The primary federal agency in the U.S. responsible for
regulating the fi nancial 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 specifi ed conditions.
U.S. GAAP Short for “United States Generally Accepted Accounting Principles.” The accounting concepts, measure-
ments, techniques and standards of presentation applicable to fi nancial statements in the U.S.
Volatility The degree of fl uctuation for a given price or rate, such as a stock price or currency exchange rate.
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