TomTom 2009 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2009 TomTom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

66 / NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
f) Capitalised databases and tools
Internally generated databases and tools are capitalised in accordance with IAS 38. Assumptions are made
regarding the estimated level of completion. At the point where activities no longer relate to development but
to maintenance, capitalisation is discontinued. Management are also required to make judgements in respect
of developed software tools. For additional information refer to note 13.
g) Income taxes
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and level of future taxable profits together with future tax planning strategies.
5. SEGMENT REPORTING
The group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating
segments to be identified and reported on the basis of internal reports about components of the group that are
regularly reviewed by the chief operating decision maker (CODM) in order to allocate resources to the segments and
to assess their performance. The adoption of IFRS 8 for the group has resulted in an aggregate disclosure of the
key performance measures of other non significant operating segments separately from the Consumer segment
within the previously reported TomTom segment.
Internal management reporting is structured based upon two main segments, TomTom and Tele Atlas
(Licensing). TomTom generates revenue primarily from the sale of navigation solutions whilst Tele Atlas develops
and licenses the use of geographic database to its customers.
Although the group has activities in different continents, segmentation by product segment better reflects the
core activities of the business.
Management assesses the performance of segments based on the measures of revenue, gross result, earnings
before interest and taxes (EBIT) and earnings before interest, taxes, depreciation and amortisation (EBITDA).
Given our shared service structure, it was not practical to allocate operating expenses (including depreciation
and amortisation) and total assets to each operating segment within the previously reported TomTom segment.
Accordingly operating expenses and total assets are all recorded in the TomTom Consumer segment in our
reporting to the CODM. The effects of non-recurring items such as impairment (if any) are excluded from
management’s measurement basis. Interest income and expenses and tax are not allocated to the segments.
Inter-segment transactions are accounted for at an arms-length basis.
2009 2008
(€ in TomTom TomTom TomTom Tele TomTom TomTom TomTom Tele
thousands) Consumer Other Total Atlas Total Consumer Other Total Atlas Total
Revenue
Segment
revenue 1,205,321 89,691 1,295,012 274,167 1,569,179 1,516,839 35,773 1,552,612 184,165 1,736,777
Inter-segment
revenue 000-89,519 -89,519 000-62,764 -62,764
Total external
revenue 1,205,321 89,691 1,295,012 184,648 1,479,660 1,516,839 35,773 1,552,612 121,401 1,674,013
Gross result 462,061 37,033 499,094 231,942 731,036 599,167 21,540 620,707 159,997 780,704
Operating
expenses1, 2 305,269 n/a 305,269 204,879 510,148 376,730 n/a 376,730 156,754 533,484
Operating
result (EBIT)1, 2 193,825 n/a 193,825 27,063 220,888 243,977 n/a 243,977 3,243 247,220
Depreciation
& amortisation145,007 n/a 45,007 61,329 106,336 37,306 n/a 37,306 35,458 72,764
EBITDA1, 2 238,831 n/a 238,831 88,393 327,224 281,283 n/a 281,283 38,701 319,984
Total assets 1,514,288 n/a 1,514,288 1,442,952 2,957,240 1,552,073 n/a 1,552,073 1,423,296 2,975,369
1 TomTom operating expenses, depreciation and amortisation and assets are all recorded in the TomTom Consumer segment as it was not
practical to reallocate these expenses and assets in our internal reporting to the CODM.
2 2008 Operating expenses, EBIT and EBITDA exclude the impairment charge.