Siemens 2009 Annual Report Download - page 312

22
 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
218 Statement of the Managing Board 218 Responsibility statement 219 Independent auditors’ report 220 Five-year summary
RR&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 efficiency and profitability of a company’s investments. It is an indicator of how
well a company is utilizing capital to generate profits.
Risk management Systematic process to identify, assess and monitor various risk factors and to select and implement
measures to handle those risk factors.
SSEC Short 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
company’s shares if certain targets are met under specified conditions.
UU.S. GAAP Short for United States Generally Accepted Accounting Principles used by companies based in
United States or listed on the U.S. stock markets.
VVolatility Standard deviation of the change in the value of a financial instrument with a specific time
horizon. It is often used to quantify the risk of the instrument over that time period.