The Company uses non-US GAAP financial measures for management purposes. The principal non-US GAAP financial measures discussed herein are net debt and constant currency comparisons, which are used in addition to and in conjunction with results presented in accordance with US GAAP.
The Company uses non-US GAAP financial measures for management purposes. The principal non-US GAAP financial measures discussed herein are net debt and constant currency comparisons, which are used in addition to and in conjunction with results presented in accordance with US GAAP.
Because net debt and constant currency comparisons are not standardised, it may not be possible to compare our measures with other companies non-US GAAP financial measures having the same or a similar name. Management encourages investors to review the Companys financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Net Debt
Management monitors outstanding debt obligations by calculating net debt. Net debt comprises short-term and long-term debt (and off-balance-sheet debt, to the extent that there is any), less cash and cash equivalents and short-term investments. The following table reconciles net debt the most directly comparable financial measures calculated in accordance with US GAAP:
| in EUR |
31.12.2008
|
31.12.2007
|
| Net debt |
| Short-term debt and current maturities of long-term debt |
56
|
357
|
| Long-term debt, less current maturities |
1,142
|
1,072
|
| Subtotal |
1,198
|
1,429
|
| Less: |
|
|
| Cash and cash equivalents |
574
|
555
|
| Short-term investments |
7
|
8
|
| Net debt |
617
|
866
|
Constant currency
Constant currency comparisons are calculated by multiplying the prior-year functional currency amount by the current year's foreign currency exchange rate. Management believes that constant currency comparisons are important supplemental information for investors because these comparisons exclude the impact of changes in foreign currency exchange rates, which are outside the Companys control, and focus on the underlying growth and performance.