Siemens 2008 Annual Report Download - page 304

208 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Prot of the segment SFS:
Prot of the segment SFS is Income before income taxes. In contrast to performance measurement principles
applied to the Sectors, Equity Investments, and Siemens IT Solutions and Services, interest income and expense
is an important source of revenue and expense of SFS.
Asset measurement principles:
Management determined Assets as a measure to assess capital intensity of the Sectors, Equity Investments and
Siemens IT Solutions and Services (Net capital employed). Its denition corresponds to the Prot measure. It is
based on Total assets of the Balance Sheet, primarily excluding intragroup nancing receivables, intragroup
investments and tax related assets, since the corresponding positions are excluded from Prot. The remaining
assets are reduced by non-interest-bearing liabilities other than tax related liabilities (e.g. trade payables) and
provisions to derive Assets. In contrast, Assets of SFS is Total assets. A reconciliation of Assets disclosed in Seg-
ment Information to Total assets in the Consolidated Balance Sheet is presented below.
New orders:
New orders are determined principally as estimated revenue of accepted purchase orders and order value
changes and adjustments, excluding letters of intent.
Free cash ow denition:
Segment Information discloses Free cash ow and Additions to intangible assets, property, plant and equip-
ment. Free cash ow of the Sectors, Equity Investments, and Siemens IT Solutions and Services constitutes net
cash provided by (used in) operating activities less additions to intangible assets and property, plant and equip-
ment. It excludes Financing interest as well as income tax related and certain other payments and proceeds, in
accordance with the Company’s Prot and Asset measurement denition. Free cash ow of SFS, a nancial ser-
vices business, includes related nancing interest payments and proceeds; income tax payments and proceeds
of SFS are excluded.
Amortization, depreciation and impairments:
Amortization, depreciation and impairments presented in Segment Information includes depreciation and
impairments of property, plant and equipment as well as amortization and impairments of intangible assets
other than goodwill and impairment of non-current available-for-sale nancial assets and investments
accounted for using the equity method.
Measurement – Other Operations and SRE
Other Operations follows the measurement principles of the Sectors, Equity Investments, and Siemens IT Solu-
tions and Services. SRE applies the measurement principles of SFS.