Chrysler 2014 Annual Report Download - page 166

164 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
SEGMENT REPORTING
The Group’s activities are carried out through seven reportable segments: four regional mass-market vehicle segments
(NAFTA, LATAM, APAC and EMEA), Ferrari, Maserati and the Components segment as discussed below. As of
December 31, 2013 and 2012, the Group had included Ferrari and Maserati as one reportable segment labeled Luxury
Brands as both operating segments did not individually meet the quantitative thresholds set by IFRS 8 - Operating
Segments to be separate reporting segments and they met the aggregation criteria. At December 31, 2014, there is no
change in the nine operating segments that had previously been identified by the Group, however, the Ferrari operating
segment met the quantitative threshold for being a separate reportable segment. As a result, and in accordance with
IFRS 8 - Operating Segments, the financial information for the Ferrari operating segment is reflected as a separate
reportable segment as of and for the year ended December 31, 2014. The prior period financial information presented for
comparative purposes was also restated to reflect the Ferrari operating segment as a separate reportable segment. The
Group also reflects Maserati as a separate reportable segment, as the financial information for this operating segment is
used by the Group’s chief operating decision maker and this operating segment does not meet the aggregation criteria
stipulated in IFRS 8 for aggregation with another of the Group’s operating segments.
The Group’s four regional mass-market vehicle reportable segments deal with the design, engineering, development,
manufacturing, distribution and sale of passenger cars, light commercial vehicles and related parts and services
in specific geographic areas: NAFTA (U.S., Canada, Mexico and Caribbean islands), LATAM (South and Central
America), APAC (Asia and Pacific countries) and EMEA (Europe, Middle East and Africa). The Group also operates on
a global basis in the luxury vehicle and components sectors. In the luxury vehicle sector the Group has two reportable
segments: Ferrari and Maserati. In the components sector, the Group has the following three operating segments:
Magneti Marelli, Teksid and Comau which did not meet the quantitative thresholds required in IFRS 8 - Operating
Segments for separate disclosure. Therefore, based on their characteristics and similarities, the three operating
segments within the components sector are presented within the reportable segment “Components”.
The operating segments reflect the components of the Group that are regularly reviewed by the Chief Executive
Officer, who is the “chief operating decision maker” as defined under IFRS 8– Operating segments, for making
strategic decisions, allocating resources and assessing performance.
In more detail, the reportable segments identified by the Group are the following:
NAFTA mainly earns its revenues from the design, engineering, development, manufacturing, distribution and sale
of vehicles under the Chrysler, Jeep, Dodge, Ram and Fiat brand names and from sales of the related parts and
accessories (under the Mopar brand name) in the United States, Canada, Mexico and Caribbean islands.
LATAM mainly earns its revenues from the design, engineering, development, manufacturing, distribution and sale
of passenger cars and light commercial vehicles and related spare parts under the Fiat and Fiat Professional brand
names in South and Central America and from the distribution of the Chrysler, Jeep, Dodge and Ram brand cars in
the same region. In addition, it provides financial services to the dealer network in Brazil and Argentina.
APAC mainly earns its revenues from the distribution and sale of cars and related spare parts under the Abarth, Alfa
Romeo, Chrysler, Dodge, Fiat and Jeep brands mostly in China, Japan, Australia, South Korea and India. These
activities are carried out through both subsidiaries and joint ventures.
EMEA mainly earns its revenues from the design, engineering, development, manufacturing, distribution and
sale of passenger cars and light commercial vehicles under the Fiat, Alfa Romeo, Lancia, Abarth, Jeep and Fiat
Professional brand names, the sale of the related spare parts in Europe, Middle East and Africa, and from the
distribution of the Chrysler, Dodge and Ram brand cars in the same areas. In addition, the segment provides
financial services related to the sale of cars and light commercial vehicles in Europe, primarily through the joint
venture FCA Bank S.p.A. (formerly FGA Capital S.p.A.) set up with the Crédit Agricole group.
Ferrari earns its revenues from the design, engineering, development, manufacturing, distribution and sale of luxury
sport cars under the Ferrari brand.
Maserati earns its revenues from the design, engineering, development, manufacturing, distribution and sale of
luxury sport cars under the Maserati brand.