On Facebook, can people see who you shared/hidden your status update from?

[weaselfish]

I have noticed when scrolling through the newsfeed, if you hover your mouse over someone's privacy setting on their status update, a pop-up box shows you the names of the people it was hidden or shared with. For example: hovering over the "person" icon will say "Joe shared this with friends". If the icon is a "gear", it will say "Joe hid this from Mark, Amy, (Etc..). In addition, they are the names of people you may or may not know regardless of any privacy settings. What is the point of a privacy setting if people can see what you have it set as, as well as the names of those included or was hidden from??