Mercedes 2009 Annual Report Download - page 245

Consolidated Financial Statements |Notes to Consolidated Financial Statements |241
31. Segment reporting
At the beginning of 2009, the Group adjusted its segment reporting.
The business activities of Mercedes-Benz Vans and Daimler Buses,
which were previously reported as part of Vans, Buses, Other,
are now presented separately. The other business activities of the
Group which previously also formed part of Vans, Buses, Other
(amongst others EADS as well as Chrysler until June 3, 2009) are
included in the column “Reconciliation” together with other
corporate items and eliminations of intersegment transactions.
Prior-year figures have been adjusted accordingly.
The segment information presented below does not include
amounts relating to discontinued operations. The segment assets
and liabilities as well as capital expenditures, depreciation and
amortization of the discontinued operations in 2007 are included
in the reconciliation to the consolidated amounts.
Reportable segments. The reportable segments of the Group are
Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans,
Daimler Buses and Daimler Financial Services. The segments are
largely organized and managed separately according to nature
of products and services provided, brands, distribution channels
and profile of customers.
The vehicle segments develop and manufacture passenger
cars and off-road vehicles, trucks and buses. Mercedes-Benz Cars
sells its passenger cars and off-road vehicles under the brand
names Mercedes-Benz, smart and Maybach. Daimler Trucks dis-
tributes its trucks under the brand names Mercedes-Benz,
Freightliner, Western Star and Fuso. The vans of the Mercedes-Benz
Vans segment are primarily sold under the brand name Mercedes-
Benz. Daimler Buses sells completely built-up buses under the brand
names Mercedes-Benz, Setra and Orion. In addition, Daimler
Buses produces and sells bus chassis. The vehicle segments also
sell related spare parts and accessories.
The Daimler Financial Services segment supports the sales of the
Group’s vehicle segments worldwide. Its product portfolio mainly
comprises tailored financing and leasing packages for customers
and dealers. The segment also provides services such as insur-
ance, fleet management, investment products and credit cards.
Management reporting and controlling systems. The Group’s
management reporting and controlling systems principally
use accounting policies that are the same as those described
in Note 1 in the summary of significant accounting policies
under IFRS.
The Group measures the performance of its operating segments
through a measure of segment profit or loss which is referred to
as “EBIT” in our management and reporting system.
EBIT is the measure of segment profit (loss) used in segment
reporting and comprises gross profit, selling and general admin-
istrative expenses, research and non-capitalized development
costs, other operating income and expense, and our share of
profit (loss) from investments accounted for using the equity
method, net, as well as other financial income (expense), net.
Intersegment revenue is generally recorded at values that
approximate third-party selling prices.
Segment assets principally comprise all assets. The industrial
business segments’ assets exclude income tax assets, assets
from defined benefit plans and certain financial assets (including
liquidity).
Segment liabilities principally comprise all liabilities. The industrial
business segments’ liabilities exclude income tax liabilities,
liabilities from defined benefit plans and certain financial liabilities
(including financing liabilities).
Pursuant to risk sharing agreements between Daimler Financial
Services and the respective vehicle segments the residual value
risks associated with the Group’s operating leases and its finance
lease receivables are primarily borne by the vehicle segments
that manufactured the leased equipment. The terms of the risk
sharing arrangement vary by segment and geographic region.
Non-current assets comprise of intangible assets, property, plant
and equipment and equipment on operating leases.
Capital expenditures for property, plant and equipment and
intangible assets reflect the cash effective additions to these
property, plant and equipment and intangible assets as far as
they do not relate to capitalized borrowing costs or goodwill and
finance leases.
With respect to information about geographical regions, revenue is
allocated to countries based on the location of the customer;
non-current assets are disclosed according to the physical location
of these assets.