Chrysler 2010 Annual Report Download - page 245

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
244
The individual operating segments included in Continuing Operations earn revenues from their ordinary production and sales activities as follows:
Fiat Group Automobiles earns its revenues from the production and sale of passenger cars and light commercial vehicles, in addition to the provision of
financial services associated with the sale of those vehicles in markets outside the European Union. Financial services activities within the European Union
are, however, carried out through the 50/50 joint venture FGA Capital set up with the Crédit Agricole group.
The Maserati segment earns its revenues from the production and sale of Maserati-brand luxury sport cars.
The Ferrari segment earns its revenues from the production and sale of Ferrari-brand luxury sport cars, from managing its Formula 1 team and from
providing financial services offered in conjunction with its vehicle sales.
The Fiat Powertrain segment earns its revenues from the production and sale of engines and transmissions for passenger and commercial vehicles,
and from the Centro Ricerche Fiat activities.
The Components segment (Magneti Marelli) earns its revenues from the production and sale of lighting components, engine control units, suspensions,
shock absorbers, electronic systems, and exhaust systems and from activities in the plastic moulding components and in the after market.
The Metallurgical Products segment (Teksid) earns its revenues from the production and sale of cast iron components for engines, transmissions and
suspension systems, and aluminium cylinder heads.
The Production System segment (Comau) earns its revenues from the design and production of industrial automation systems and related products for
the automotive sector.
The individual operating segments included in Discontinued Operations earn revenues from their ordinary production and sales activities as follows:
The Agricultural and Construction Equipment segment (CNH-Case New Holland) is active globally in the design, production and sale of agricultural
and construction equipment. This segment also provides financial services to its end customers and dealers directly and indirectly in certain European
countries through a joint ventures with the BNP Paribas Group.
The Trucks and Commercial Vehicles segment (Iveco) earns its revenues from the production and sale, predominantly in Europe, of trucks and commercial
vehicles, buses and special use vehicles. The segment also offers financial services directly to its customers and dealers in Eastern Europe, while in
Western Europe these offered through Iveco Finance Holdings Limited, which is owned 51% by the Barclays Group and 49% by Iveco.
The FPT Industrial segment earns its revenues from the industrial and marine powertrain activities.
The Group assesses performance of its operating segments on the basis of the Trading profit/(loss), Operating profit/(loss) and Result from investments
earned by those segments.
Revenues for each reported segment are those directly generated by or attributable to the segment as the result of its usual business activities and
include revenues from transactions with third parties as well as those derived from transactions with other segments, recognised at normal market prices.
For those operating segments which also provide financial services activities, revenues include interest income and other financial income deriving from those
activities. Segment expenses represent expenses deriving from each segment’s business activities both with third parties and other operating segments or
which may otherwise be directly attributable to it. Expenses deriving from business activities with other segments are recognised at normal market prices.
For those operating segments which also carry out financial services activities, expenses include interest expense and other financial expense deriving from
those activities.
The measure used to assess profit and loss for each operating segment is the Operating profit/(loss). Trading profit/(loss) is reported as a specific part of the
Operating profit/(loss) to separate the income and expense that is non-recurring in the ordinary operations of the business, such as gains and losses from
the disposals of investments or restructuring costs from profit or loss attributable to the Segments. Financial income and expense and taxes not deriving
from operating activities are recognised centrally and reported under Unallocated items and adjustments.
All profit and loss items are recognised in accordance with the same accounting principles used in the preparation of the Group’s consolidated financial
statements.