Siemens 2014 Annual Report Download - page 191

247 D. Consolidated Financial Statements
337 E. Additional Information
213 C. Overall assessment of the economic position
214 C. Subsequent events
215 C. Sustainability and citizenship
225 C. Report on expected developments and
associated material opportunities and risks
242 C. Compensation Report and legal disclosures
242 C. Siemens AG (Discussion on basis
of German Commercial Code)

C... RETURN ON CAPITAL EMPLOYED (ROCE)
As part of One Siemens, we managed and controlled our capital
efficiency in fiscal  using the financial measure ROCE for
continuing operations. The following tables report this financial
measure as defined under One Siemens and also provide a rec-
onciliation to ROCE for continuing and discontinued operations.
(in millions of €) // // // // //
Capital employed Fiscal 
Total equity 31,514 28,633 28,336 30,372 28,625
Plus: Long-term debt 19,326 18,364 18,587 18,377 18,509
Plus: Short-term debt and current maturities of long-term debt 1,620 4,092 3,757 2,883 1,944
Less: Cash and cash equivalents (8,013) (8,210) (8,585) (8,885) (9,190)
Less: Current available-for-sale financial assets (925) (907) (799) (666) (601)
Plus: Post-employment benefits 9,324 10,473 9,614 8,771 9,265
Less: SFS Debt (18,663) (17,017) (16,428) (16,022) (15,600)
Less: Fair value hedge accounting adjustment (1,121) (1,114) (1,134) (1,166) (1,247)
Capital employed (continuing and discontinued operations) 33,063 34,313 33,348 33,665 31,706
Less: Assets classified as held for disposal presented as discontinued operations (2,325) (1,689) (14) (758) (768)
Plus: Liabilities associated with assets classified as held for disposal
presented as discontinued operations 1,559 1,275 20 232 258
Capital employed (continuing operations) 32,297 33,898 33,354 33,138 31,195
(in millions of €) // // // // //
Capital employed Fiscal 
Total equity 28,625 27,909 26,620 30,551 31,424
Plus: Long-term debt 18,509 19,140 20,182 16,651 16,880
Plus: Short-term debt and current maturities of long-term debt 1,944 3,656 2,752 3,709 3,826
Less: Cash and cash equivalents (9,190) (6,071) (7,892) (7,823) (10,891)
Less: Current available-for-sale financial assets (601) (506) (533) (517) (524)
Plus: Post-employment benefits 9,265 9,325 9,890 9,856 9,801
Less: SFS Debt (15,600) (15,004) (14,879) (14,490) (14,558)
Less: Fair value hedge accounting adjustment (1,247) (1,323) (1,473) (1,570) (1,670)
Capital employed (continuing and discontinued operations) 31,706 37,127 34,667 36,367 34,289
Less: Assets classified as held for disposal presented as discontinued operations (768) (4,783) (4,616) (4,589) (4,693)
Plus: Liabilities associated with assets classified as held for disposal
presented as discontinued operations 258 1,948 1,948 2,045 2,010
Capital employed (continuing operations) 31,195 34,291 31,999 33,823 31,606
1 Debt is generally reported with 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. Accord-
ingly, we deduct these changes in market value in order
to end up with an amount of debt that approximately
will be repaid, which we believe is a more meaningful
figure for the calculation presented above. For further
infor mation on fair value hedges see NOTE  in
D. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.