Siemens 2010 Annual Report Download - page 169

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

of BenQ Mobile GmbH & Co. OHG as well as cash outflows re-
lated to the settlement of legal matters. Cash outflows from
discontinued operations in fiscal  were partially offset by
cash inflows resulting from a settlement between The Gores
Group and us regarding pending requirements for purchase
price adjustments and further mutual obligations related to
the disposal of the former enterprise networks business.
Free cash flow from continuing and discontinued operations
amounted to a positive €. billion in fiscal , compared
to a positive €. billion a year earlier. Total Free cash flow
from continuing operations in the current period amounted to
a positive €. billion, compared to a positive €. billion in
fiscal . The change year-over-year was due primarily to the
increase in net cash provided by operating activities as dis-
cussed above. Due to continuing tight control of capital expen-
ditures, cash used for Additions to intangible assets and
property, plant and equipment decreased to €. billion
from €. billion a year earlier. For further information about
our capital expenditures please refer to “– Capital resources
and requirements.” The cash conversion rate for continuing
operations, calculated as Free cash flow from continuing op-
erations divided by income from continuing operations, was a
positive . for fiscal , compared to a positive . a year
earlier. For information regarding the effects on our cash con-
version rate related to impairment charges at Diagnostics Divi-
sion within the Healthcare Sector in the fourth quarter of fiscal
, related to charges regarding the strategic reorientation
of Siemens IT Solutions and Services in fiscal  and related
to impairment charges regarding NSN in fiscal , please
refer to “Business and operating environment – Financial Per-
formance Measures.”
Free cash flows during fiscal  and fiscal  were as fol-
lows:
Free cash flow (in millions of €)
Q4 10 2,990
Q3 10 2,145
Q2 10 1,251
Q1 10 725
Q4 09 3,158
Q3 09 1,064
Q2 09 1,138
Q1 09 2(1,574)
1 Continuing operations
2 Free cash flow includes €1,008 millions paid to authorities in the US and Germany
related to charges for the resolution of legal proceedings.
Financing activities from continuing and discontinued opera-
tions used net cash of €. billion in fiscal , compared
to a net cash inflow of € million a year earlier. In the current
period Changes in short-term debt and other financing activi-
ties used net cash of € million resulting mainly from the
repayment of outstanding commercial paper and the settle-
ments of financial derivatives used to hedge currency exposure
in our financing activities. Fiscal  included inflows of €.
billion from the issuance of medium-term notes partly offset
by the repayment of a €. billion floating-rate extendible note
and U.S. $ million in floating rate notes. Dividends paid to
shareholders (for fiscal ) in fiscal  amounted to €.
billion, compared to €. billion (paid for fiscal ) a year
earlier.
CAPITAL RESOURCES AND REQUIREMENTS
Our capital resources consist of a variety of short- and long-
term financial instruments including, but not limited to loans
from financial institutions, commercial paper, medium-term
notes and bonds. In addition, other capital resources consist of
liquid resources such as Cash and cash equivalents, future
cash flows from operating activities and current Available-for-
sale financial assets.
Our capital requirements include, among others, scheduled
debt service, regular capital spending, ongoing cash require-
ments from operating and SFS financing activities, dividend
payments, pension plan funding, portfolio activities and cash
outflows in connection with restructuring measures.
Total debt comprises our Notes and bonds, Loans from banks,
Obligations under finance leases and Other financial indebted-
ness such as commercial paper. Total debt comprises Short-
term debt and current maturities of long-term debt as well as
Long-term debt, as stated on the Consolidated Statements of
Financial Position. Total liquidity refers to the liquid financial
assets we had available at the respective balance sheet dates
to fund our business operations and pay for near-term obliga-
tions. Total liquidity comprises Cash and cash equivalents as
well as current Available-for-sale financial assets, as stated on
the Consolidated Statements of Financial Position. Net debt
results from total debt less total liquidity. Management uses
the Net debt measure for internal corporate finance manage-
ment, as well as for external communication with investors,
analysts and rating agencies, and accordingly we believe that
presentation of Net debt is useful for those concerned. Net
debt should not, however, be considered in isolation or as an
alternative to short-term debt and long-term debt as presented