Siemens 2011 Annual Report Download - page 380

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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M
Medium Term Notes Program A kind of framework agreement between companies and traders of notes (usually banks), enabling a company to
issue securities in the capital market under predetermined terms and conditions, thus providing flexibility in raising
debt within a very short period of time.
Moody ’s Investors Service Independent rating agency that provides standardized indicators for assessing a companies’ credit ratings.
N
Net periodic benefit cost (NPBC) The amount of pension costs recorded in the Consolidated Statements of Income. They 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 The net amount of current assets less current liabilities.
NYSE Abbreviation for “New York Stock Exchange.”
O
Order backlog Inventory of orders for goods and services based on binding contractual arrangements with customers.
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 pension fund) that is legally separate from the reporting
entity and exists solely to pay or fund pension benefits. Pension plan assets are not available to the reporting
entity for general use and can not be used for purposes other than to pay or fund pension benefits.
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.
Segment A reportable business segment for financial reporting purposes.
Sensitivity analysis Analysis of effects of possible changes in assumptions. It is used, for example, to estimate how net periodic benefit
cost is affected by decreasing/increasing discount rates.
Standard & Poor’s Independent rating agency that provides standardized indicators for the assessment of companies’ credit ratings.
Supply Chain Management Comprises the planning and management of all processes in connection with supplier selection, procurement
and logistics.
W
Weighted Average Cost of Capital
(WACC)
The rate that a company is expected to pay on average to all its providers of capital to finance its assets.