Siemens 2010 Annual Report Download - page 332

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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Glossary
A
adjusted EBITDA Abbreviation for adjusted »Earnings Before Interest, Taxes, Depreciation and Amortization«. Siemens defines
adjusted EBITDA as Income from continuing operations before income taxes less Other financial income (expense),
net, less Interest expense, less Interest income, as well as less Income (loss) from investments accounted for using
the equity method, net (adjusted EBIT) before amortization and depreciation and impairment of property, plant and
equipment and goodwill.
American Depository Shares (ADS) /
American Depositary Receipts (ADR)
Negotiable share certificates issued by major U.S. banks, related to non-American shares deposited with them.
ADS are traded on U.S. stock exchanges instead of shares.
Asset Management The process of managing and controlling corporate assets in order to enhance operational efficiency in using
these assets in business operations.
Associates An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has
significant influence and that is neither a subsidiary nor an interest in a joint venture. Associates are accounted
for under the equity method (> Equity method).
C
Captive finance entity A financial services unit organized of an industrial enterprise that offers financial solutions primarily to customers
of the operating units of that enterprise.
Cash conversion rate
(continuing operations)
Ratio of Free cash flow from continuing operations to Income from continuing operations. Cash conversion rate
was our liquidity measure in our Fit program.
Cash flows Cash flows are inflows and outflows of cash (cash on hand and demand deposit) and cash equivalents (short-
term highly liquid financial investments). Cash flows are presented in the Consolidated Statements of Cash Flow.
Comfort Letter A comfort letter is a written statement of an accounting firm, concluding on the results of separately agreed
procedures. Those procedures are performed on financial disclosures which are presented in a prospectus prepared
for issuance of securities.
Commercial paper Commercial papers are short-term debt instruments in the form of bearer bonds. Such short-term debt instruments
are issued in the money market by companies with strong credit ratings.
Commercial Paper Program Program for the issuance of commercial papers that can be drawn in different currencies.
Compliance Compliance with laws as well as with external and internal guidance or codes of conduct.
Corporate Treasury A corporate function responsible for the financial management, particularly relating to the liquidity and cash
management as well as the financial risk management.
D
Deferred taxes Assets and liabilities arising from the different treatment of transactions for financial and tax reporting purposes.
Defined benefit obligation Defined benefit obligation (DBO) is the present value, without deducting any plan assets, of expected future pay-
ments required to settle the pension obligation resulting from employee service in the current and prior periods.
Defined benefit plans Defined benefit plans are post-employment benefit plans other than defined contribution plans (see defined
contribution plans).
Defined contributions plans Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions
into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the
fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and
prior periods.
Derivative A derivative is an instrument that derives its value from that of an underlying instrument (such as shares, bonds,
currencies or commodities) or index (such as interest rates); it is settled at a future date and requires no or a
relatively low initial investment.
Diluted earnings per share Dilution is a reduction in earnings per share or an increase in loss per share resulting from the assumption that
convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued
upon the satisfaction of specified conditions.
Discontinued operations A component of an entity that either has been disposed of or is classified as held for sale and represents a separate
major line of business or geographical area of operations, it is part of a single coordinated plan to dispose of a sepa-
rate major line of business or geographical area of operations or it is a subsidiary acquired exclusively with a view
to resale.