Vtech 2015 Annual Report Download - page 56

VTech Holdings Limited Annual Report 2015
Notes to the Financial Statements
54
1 Segment Information
The principal activity of the Group is design, manufacturing and
distribution of consumer electronic products.
The Group manages its businesses by divisions, which are
organised by geography. In accordance with IFRS 8 – Operating
segments and in a manner consistent with the way in which
information is reported internally to the Group’s most senior
executive management for the purposes of resource allocation and
performance assessment, the Group has presented the following
reportable segments.
• North America (including the United States and Canada)
• Europe
• Asia Pacific
• Others, which covers sales of electronic products to the rest of
the world
The Company is domiciled in Bermuda. The results of its revenue
from external customers located in North America, Europe, Asia
Pacific and elsewhere are set out in the table below.
Each of the above reportable segments primarily derive their
revenue from the sale of telecommunication products, electronic
learning products and products from contract manufacturing
services to customers in the relevant geographical region.
All of these products and services are manufactured and
performed in the Group’s manufacturing facilities located
primarily in the People’s Republic of China (“PRC”) under the Asia
Pacific segment.
For the purposes of assessing segment performance and allocating
resources between segments, the Group’s senior executive
management monitors the results and assets attributable to each
reportable segment on the following bases:
(a) Segment revenues and results
Revenue is allocated to the reporting segment based on the
location of the external customers. Expenses are allocated to the
reportable segments with reference to sales generated by those
segments and the expenses incurred by those geographical
locations or which otherwise arise from the depreciation or
amortisation of assets attributable to those segments.
The measure used for reporting segment profit is operating profit.
In addition to receiving segment information concerning
operating profit, management is provided with segment
information concerning revenue, depreciation and amortisation,
and impairment of assets.
(b) Segment assets and liabilities
Segment assets include all tangible and intangible assets and
current assets with the exception of deferred tax assets and other
corporate assets including taxation recoverable and investments.
Segment liabilities include creditors and accruals and provisions
with the exception of taxation payable.
Year ended 31 March 2015 North America
US$ million
Europe
US$ million
Asia Pacific
US$ million
Others
US$ million
Total
US$ million
Reportable segment revenue 899.5 812.3 117.6 50.4 1,879.8
Reportable segment profit 89.1 105.8 17.2 8.0 220.1
Depreciation and amortisation 0.6 0.6 30.4 –31.6
Reportable segment assets 162.2 67.6 686.4 0.1 916.3
Reportable segment liabilities (41.7) (21.8) (309.1) (0.3) (372.9)
Year ended 31 March 2014, as restated North America
US$ million
Europe
US$ million
Asia Pacific
US$ million
Others
US$ million
Total
US$ million
Reportable segment revenue 950.7 791.8 108.9 47.5 1,898.9
Reportable segment profit 94.8 110.6 14.0 7.2 226.6
Depreciation and amortisation 0.6 1.7 28.5 –30.8
Reportable segment assets 154.6 96.8 646.5 0.4 898.3
Reportable segment liabilities (52.8) (27.3) (253.8) (0.4) (334.3)
(c) Reconciliations of reportable segment assets
and liabilities
Note
2015
US$ million
2014
(Restated)
US$ million
Assets
Reportable segment assets 916.3 898.3
Investments 0.1 0.1
Taxation recoverable 9(a) –0.9
Deferred tax assets 9(b) 4.5 2.5
Consolidated total assets 920.9 901.8
Liabilities
Reportable segment liabilities (372.9) (334.3)
Taxation payable 9(a) (7.2) (5.1)
Consolidated total liabilities (380.1) (339.4)
For the year ended 31 March 2015, approximately 13% (2014: 15%)
of the Group’s revenue is derived from a single external customer.
This revenue is attributable to the North America segment.
Details of concentrations of credit risk of the Group are set out in
note 18(a).