Siemens 2011 Annual Report Download - page 378

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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E. Glossary
A
Adjusted EBITDA Abbreviation for adjusted “Earnings before interest, taxes, depreciation and amortization.” Siemens defines adjusted
EBITDA on group level 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 Depositary Shares (ADSs) /
American Depositary Receipts
A U.S. dollar-denominated certificate issued by a U.S. bank, representing a share of a foreign-based company
available for purchase on an American stock exchange. The entire issuance is called an American Depositary Receipt
(ADR) and the individual shares are referred to as ADSs.
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 (see “Equity method”).
C
Captive finance unit A financial services unit organized as a business within an industrial enterprise that offers financial solutions
primarily to customers of the operating units of that enterprise.
Cash conversion rate Ratio of “Free cash flow” to “Income.”
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 written statement prepared by an independent auditor which expresses an opinion on the results
of certain audit procedures.
Commercial paper Short-term debt instruments in the form of bearer bonds, issued in the money market by companies with strong
credit ratings.
Commercial Paper Program Program for the issuance of commercial paper 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 unit 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 (DBO) The present value of expected future payments required to settle outstanding pension obligations.
Defined benefit plans Post-employment benefit plans other than defined contribution plans (see “Defined contribution plans”).
Defined contribution 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.
Derivatives /
Derivative financial instruments
An instrument that derives its value from that of an underlying instrument or index, 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; is part of a single coordinated plan to dispose
of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively
with a view to resale.