Siemens 2010 Annual Report Download - page 167

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

(in millions of €)
September ,
 
Short-term debt 2,416 698
Plus: Long-term debt  17,497 18,940
Less: Cash and cash equivalents (14,108) (10,159)
Less: Current available for sale
financial assets (246) (170)
Net debt 5,560 9,309
Less: SFS Debt (10,028) (9,521)
Plus: Funded status principal
pension benefit plans 6,357 4,015
Plus: Funded status principal other
post-employment benefit plans 738 646
Plus: Credit guarantees 597 313
Less: % nominal amount
hybrid bond  (886) (862)
Less: Fair value hedge accounting
adjustment (1,518) (1,027)
Adjusted industrial net debt 819 2,873
Adjusted EBITDA (continuing operations) 10,034 9,219
Adjusted industrial net debt /
Adjusted EBITDA (continuing operations) 0.08 0.31
1 Long-term debt including fair value hedge accounting adjustment of €, million
and €, million for the fiscal year ended September ,  and , respec-
tively.
2 The adjustment for our hybrid bond considers the calculation of this financial ratio
applied by rating agencies to classify % of our hybrid bond as equity and % as
debt. This assignment follows the characteristics of our hybrid bond such as a long
maturity date and subordination to all senior and debt obligations.
3 Debt is generally reported with a value representing approximately the amount to
be repaid. However for debt designated in a hedging relationship (fair value
hedges), this amount is adjusted by changes in market value mainly due to
changes in interest rates. Accordingly we deduct these changes in market value
in order to end up with an amount of debt that approximately will be repaid,
which we believe is a more meaningful figure for the calculation presented above.
For further information on fair value hedges see “Notes to Consolidated Financial
Statements.”
CASH FLOW – FISCAL 
COMPARED TO FISCAL 
The following discussion presents an analysis of our cash flows
for fiscal  and  for both continuing and discontinued
operations.
We report Free cash flow as a supplemental liquidity measure,
which is defined as Net cash provided by (used in) operating
activities less cash used for Additions to intangible assets and
property, plant and equipment. We believe that the presenta-
tion of Free cash flow provides useful information to investors
because it gives an indication of the long-term cash generating
ability of our business and our ability to pay for discretionary
and non-discretionary expenditures not included in the mea-
sure, such as dividends, debt repayment or acquisitions. We
also use Free cash flow to compare cash generation among the
segments of our business. Free cash flow should not be consid-
ered in isolation or as an alternative to measures of cash flow
calculated in accordance with IFRS. For further information
about the usefulness and limitations of this measure please
refer to last page of the Combinded management’s discussion
and analysis.