Siemens 2010 Annual Report Download - page 334

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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N
Net periodic benefit cost (NPBC) The amount of pension costs recorded in the Consolidated Statements of Income. Net periodic benefit cost
com ponents include service cost, interest cost, expected return on plan assets, amortization of past service cost
or benefits and gains or losses due to settlements and curtailments of plans.
Net working capital Net working capital is the net amount of current assets less current liabilities. It may be used as a measure of
liquidity, by providing a relation between current assets and current liabilities.
NYSE Abbreviation for “New York Stock Exchange.”
P
Plan assets Plan assets related to pension plans comprise assets held by a long-term employee benefit fund and qualifying
insurance policies. Plan assets are held by an entity (a fund) that is legally separate from the reporting entity and
exists solely to pay or fund employee benefits. Plan assets are to be used only to pay or fund employee benefits;
they are not available to the reporting entity’s general use.
R
Rating Standardized indicator for the assessment of issuers’ credit ratings; carried out by specialized agencies
(such as Standard & Poor’s or Moody’s Investors Service).
Return on capital employed (ROCE) This indicator shows how efficiently a company works with the capital of its shareholders and lenders.
R&D Abbreviation for “research and development.”
Risk management Systematic process to identify and assess potential opportunities and risks and to select and implement response
strategies with respect to these opportunities and risks.
S
SEC Abbreviation for Securities and Exchange Commission, the stock exchange supervisory authority in the U.S.
Sensitivity analysis Analysis of effects of possible changes in assumptions.
Standard & Poor’s Independent rating agency that provides standardized indicators for the assessment of companies’ credit ratings.
Stock options Form of employee incentive and compensation. The employee is granted a right to purchase Siemens shares at
a pre-determined exercise price within a stipulated period in the future.
W
Weighted Average Cost of Capital
(WACC)
The weighted average cost of capital is the rate that a company is expected to pay on average to all its providers
of capital to finance its assets.