Siemens 2010 Annual Report Download - page 170

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
50 Business and operating environment
78 Fiscal  – Financial summary
81 Results of operations
98 Financial position
110 Net assets position
113 Overall assessment of the economic position

in accordance with IFRS. For further information about the
usefulness and limitations of Net debt, please refer to the last
page of the Combined management’s discussion and analysis.
(in millions of €)
September ,
 
Short-term debt and current
maturities of long-term debt 2,416 698
Long-term debt 17,497 18,940
Total debt 19,913 19,638
Cash and cash equivalents 14,108 10,159
Available-for-sale financial assets (current) 246 170
Total liquidity 14,354 10,329
Net debt  5,560 9,309
1 We typically need a considerable portion of our cash and cash equivalents as
well as current available-for-sale financial assets at any given time for purposes
other than debt reduction. The deduction of these items from total debt in the
calculation of Net debt therefore should not be understood to mean that these
items are available exclusively for debt reduction at any given time.
The changes in Net debt from fiscal  to  may also be
presented as follows:
Commercial paper program – We have a U.S.$. billion (€.
billion) global multi-currency commercial paper program in
place, which includes the ability to issue U.S.$-denominated
extendible notes. In fiscal  we issued commercial paper in
varying amounts to fund our ongoing short-term capital re-
quirements. Our issuances of commercial paper typically have
a maturity of less than  days. As of September , , we
had no commercial paper outstanding. All commercial paper
issued in fiscal  was completely repaid within the year.
Notes and bonds – We have a “program for the issuance of
debt instruments” (medium-term note program) of €. bil-
lion in place which we extended in May . In May , we
increased the maximum issuable amount under this program
from €. billion to €. billion, following a previous increase
from €. billion to €. billion in December . Under this
medium-term note program we issued the following notes:
>
In February , we issued €. billion in fixed-interest rate
notes in two tranches comprising €. billion in .%
notes due in February  and €. billion in .% notes
due in February .
>
In June , we issued a Eurobond with an aggregate
amount of €. billion, comprising three tranches: €. bil-
lion in .% notes due in December ; €. billion in
.% notes due in June  and €. billion in .%
notes due in June .
> In August , we increased two tranches of the Eurobond
issue by € million, including € million in .% notes
due in December  and € million in .% notes due
in June .
>
In March , we issued U.S.$. billion in notes in two
tranches comprising U.S.$ million in floating rate notes
(U.S.$ LIBOR + .%) due in March  and U.S.$ mil-
lion in .% notes due in March .
The nominal amount outstanding under the medium-term
note program was €. billion as of September , .
In September , we issued a subordinated Hybrid bond in
two tranches, a euro tranche of € million in .% notes
and a British pound tranche of £ million in .% notes,
both tranches with a final legal maturity in September .
The company has a call option after  years or thereafter. If
the bond is not called, both tranches will become floating rate
notes (EURIBOR + .% for the euro tranche and GBP LIBOR +
.% for the British pound tranche, plus a step-up of .% for
both tranches). The total nominal amount of our Hybrid bond
is €. billion.
In August , we issued notes totaling U.S.$. billion.
These notes were issued in four tranches comprising: U.S.$
million in floating rate notes (U.S.$ LIBOR + .%) due in Au-
gust , which were redeemed at face value at their matu-
rity date; U.S.$ million in .% notes due in February ;
U.S.$. billion in .% notes due in October  and
U.S.$. billion in .% notes due in August . We may
redeem, at any time, all or some of the fixed rate notes at the
early redemption amount (call) according to the conditions of
the notes. The nominal amount of these notes outstanding as
of September ,  was €. billion.
Changes in Net debt
 (in millions of €)
1 Continuing operations
2 Effects without cash flow impact include effetcs on exchange rates on Net debt
and fair value hedge accounting adjustment.
Net debt at
September
, 
Less:
Net cash
provided by
operating
activities
Plus:
Net cash
used in
investing
activities
Plus:
Net cash
used in
financing
activities
Plus:
Effects
without
cash flow
impact 
Net debt at
September
, 
9,309 9,447
5,5601072,823
2,768