Mercedes 2015 Annual Report Download - page 258

E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 265
33. Segment reporting
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, trucks, vans and buses. The Mercedes-Benz Cars segment
comprises premium vehicles of the Mercedes-Benz brand and
small cars under the smart brand, as well as the service brand
Mercedes me. Daimler Trucks distributes its trucks under the
brand names Mercedes-Benz, Freightliner, FUSO, Western Star,
Thomas Built Buses and BharatBenz. The vans of the
Mercedes-Benz Vans segment are primarily sold under the
brand name Mercedes-Benz and also under the Freightliner
brand. Daimler Buses sells completely built-up buses under the
brand names Mercedes-Benz and Setra. 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 fleet management, the brokering of automotive insur-
ance, banking services and various innovative mobility services
(under the brands moovel and car2go).
Management and reporting system
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 according to 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 comprises gross profit, selling and general administrative
expenses, research and non-capitalized development costs,
other operating income/expense, and our share of profit/loss
from equity-method investments, net, as well as other financial
income/expense, net. Although amortization of capitalized bor-
rowing costs is included in cost of sales, it is not included in EBIT.
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 pension plans and other post-employment
benefit plans, and certain financial assets (including liquidity).
Segment liabilities principally comprise all liabilities. The indus-
trial business segments’ liabilities exclude income tax liabilities,
liabilities from defined benefit pension plans and other
post-employment benefit plans, and certain financial liabilities
(including financing liabilities).
Daimler Financial Services’ performance is measured
on the basis of return on equity, which is the usual procedure
in the banking business.
The residual value risks associated with the Group’s operating
leases and finance lease receivables are generally borne by
the vehicle segments that manufactured the leased equipment.
Risk sharing is based on agreements between the respective
vehicle segments and Daimler Financial Services; the terms vary
by vehicle segment and geographic region.
Non-current assets consist of intangible assets, property,
plant and equipment and equipment on operating leases.
Capital expenditures for intangible assets and property, plant
and equipment 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, goodwill and
finance leases.
Depreciation and amortization may also include impairments
as far as they do not relate to goodwill impairment as per
IAS 36.
Amortization of capitalized borrowing costs is not included
in the amortization of intangible assets or depreciation
of property, plant and equipment since it is not considered
as part of EBIT.