Siemens 2011 Annual Report Download - page 315

153 D. Consolidated Financial Statements 273 E. Additional information
158 D. Consolidated Statements of Changes in Equity
160 D. Notes to Consolidated Financial Statements
266 D. Supervisory Board and Managing Board
154 D. Consolidated Statements of Income
155 D.2 Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow

 – Additional capital disclosures
As of September ,  and , Siemens’ capital structure
was as follows:
September , % Change
(in millions of €)  
Total equity attributable to
shareholders of Siemens AG 31,530 28,346 11.2%
As percentage of total capital 64% 59%
Short-term debt and current
maturities of long-term debt 3,660 2,416
Long-term debt 14,280 17,497
Total debt 17,940 19,913 (9.9)%
As percentage of total capital 36% 41%
Total capital (total debt, as
stated above, and total equity) 49,470 48,259 2.5%
In fiscal , total equity attributable to shareholders of
Siemens AG increased by .% compared to fiscal . Total
debt decreased by .% in fiscal . This resulted in an in-
crease in total equity as a percentage of total capital to .%
compared to .% in fiscal . Accordingly, total debt as a
percentage of total capital decreased to .% from .% in
the prior year. For further information on changes in total eq-
uity see
Note 27 Equity and on issuance and repayment of
debt see
Note 23 Debt.
Siemens has commitments to sell or otherwise issue common
shares in connection with share-based compensation plans.
In fiscal  and , commitments arising from share-
based compensation were met by re-issuing treasury shares.
In fiscal , Siemens may again fulfill its commitments aris-
ing from share-based compensation by re-issuing treasury
shares. For additional information on share-based compen-
sation see
Note 34 Share-based payment and on treasury
shares see
Note 27 Equity.
As part of the Company ’s One Siemens framework for sustain-
able value creation, Siemens decided to continue to use an in-
dicator for optimizing the capital structure. A key consideration
in this regard is maintenance of ready access to the capital mar-
kets through various debt products and preservation of the
Company ’s ability to repay and service its debt obligations over
time. Siemens set a capital structure target range of . – ..
The ratio is defined as the item Adjusted industrial net debt
divided by the item Adjusted EBITDA. The calculation of the
item Adjusted industrial net debt is set forth in the table be-
low. Adjusted EBITDA is defined as adjusted earnings before
income taxes (EBIT) before amortization (defined as amortiza-
tion and impairments, net of reversals, of intangible assets
other than goodwill) and depreciation and impairments of
property, plant and equipment and goodwill. Adjusted EBIT is
defined as line item Income from continuing operations be-
fore income taxes less line item Interest income, less line item
Interest expense less line item Other financial income (ex-
pense), net as well as less line item Income (loss) from invest-
ments accounted for using the equity method, net.
September ,
(in millions of €)  
Short-term debt and current maturities
of long-term debt 3,660 2,416
Plus: Long-term debt 14,280 17,497
Less: Cash and cash equivalents (12,468) (14,108)
Less: Current available-for-sale financial assets (477) (246)
Net debt 4,995 5,560
Less: SFS Debt (12,075) (10,028)
Plus: Pension plans and similar commitments  7,307 8,464
Plus: Credit guarantees 591 597
Less: % nominal amount hybrid bond  (883) (886)
Less: Fair value hedge accounting
adjustment  (1,470) (1,518)
Adjusted industrial net debt (1,534) 2,189
Adjusted EBITDA
(continuing operations) 10,596 9,805
Adjusted industrial net debt / adjusted EBITDA
(continuing operations) (0.14) 0.22
1 The item Short-term debt and current maturities of long-term debt as well as the
item Long-term debt include, in total, fair value hedge accounting adjustments of
€, million and €, million for the fiscal years ended September , 
and , respectively.
2 In fiscal , to consider Siemens’ total pension liability, adjusted industrial net
debt includes line item Pension plans and similar commitments as presented in
the Consolidated Statement of Financial Position. Prior-year amounts are reclassi-
fied to conform to the current year presentation.
3 The adjustment for the hybrid bond considers the calculation of this financial ratio
applied by rating agencies to classify % of the hybrid bond as equity and % as
debt. This assignment reflects the characteristics of the hybrid bond such as a long
maturity date and subordination to all senior and debt obligations.
4 Debt is generally reported at 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 the Company deducts these changes in market value in
order to end up with an amount of debt that approximately will be repaid. Siemens
believes, this is a more meaningful figure for the calculation presented above.
Due to rounding, numbers presented may not add up precisely to totals provided.