Indesit Company [logo]Indesit Company

Glossary

A / AA / A+ class
European certification given to appliances combining high performance and minimum energy consumption.
CGU (Cash Generating Unit)
The smallest identifiable group of activities that generate incoming cash flows and are largely independent of incoming cash flows from other activities or groups of activities.
Call rate
Number of service requests over total products sold.
Corporate Governance
Rules and codes of conduct disciplining the control of a company, its ownership structure and the efficiency of its management in pursuing business objectives.
Defined Benefit Plan
Fixed income pension scheme that a company must pay its retired employees. Fixed contribution pension scheme. The amount of income will depend on the contribution payments and on yields.
Defined contribution plan
Fixed contribution pension scheme. The amount of income will depend on the contribution payments and on yields.
EBITDA/EBIT
Earnings before interest, taxes, depreciation and amortization (gross operating margin) / Earnings before interest and taxes (operating margin).
EPS (Earning Per Share)
Net profits (losses) for the year over the number of shares in circulation.
Fair Value option
The possibility of stating at fair value certain assets and liabilities with specific characteristics.
Fair value
Price at which an asset may be traded or a liability extinguished in a free transaction between informed and consenting parties.
Financial covenant
Clauses stipulated to discipline financial events (esp. loans and credit lines).
Free cash flow
Cash flows from operating business and investment activities net of dividend payouts and capital increases.
Hedge accounting
A method that designates a hedging instrument, normally a derivative, as an offset to changes in the fair value or cash flows of a hedged item.
IAS/IFRS
International Accounting Standards/International Financial Reporting Standards.
Impairment test
An assessment carried out at each balance sheet reference date to search for indications that assets may have undergone lasting loss of value and to estimate recoverable values.
Net working capital
The difference between short-term assets and short-term liabilities of a trade and financial nature.
Operating Cash Flow (OCF)
Cash flows generated by operating business.
PMS (Performance Management System)
A system for assessing employees' professional performance, so they can improve and develop their careers on the basis of their aptitudes and competencies.
Projected Unit Credit (PUCM)
An actuarial method of stating balance sheet items (esp. employee severance indemnity).
Purchase price allocation
Fair value statement of all the major assets and liabilities of an acquired company.
Retirement awards
Awards and ceremonies accorded to meritorious employees on retirement.
RoHS
EC Directive disciplining the use of hazardous substances in electrical and electronic equipment.
Securitization
A company's sales to commercial intermediaries; goods entering a point of sale.
Sell in
Without recourse transfer of a portfolio of receivables in exchange for an issue of securities secured by the receivables themselves.
Sell out
Sales by retailers to consumers; goods leaving a point of sale.
Special economic zone
A geographical area with laws different from those of the country to which the area belongs, usually for the purpose of attracting foreign investment.
Stock option
A faculty granted by enterprises to their managers whereby the latter may buy or subscribe a certain number of company shares at a favourable, predetermined price and within a limited period of time.
Supply chain
The organizational and IT structure that manages and co-ordinates business processes, from procurement of materials and components through to delivery of finished products.
Vesting period
The time required before options on shares can be exercised and the shares can be subscribed by the holder under a given stock option plan.
WACC (Weighted Average Cost of Capital)
The average cost of a company's various sources of funding, including both debt and equity; usually used an indicator to track a company's operating cash flows and assess its financial position and EVA (economic value added).
WEEE (Waste Electrical and Electronic Equipment)
EU Directive regulating the end of the life cycle of household appliances.
WRAP (Web Ready Appliances Protocol)
An exclusive technology enabling household appliances to dialogue amongst themselves and with the outside world. Wrap is also the Group company specializing in electronics research.