Electrolux 2010 Annual Report Download - page 139

Items affecting comparability
Impairment/
restructuring
2010 2009
Consumer Durables
Europe –658 –620
North America –406 –779
Latin America — —
Asia/Pacific — –162
Professional Products — —
Total –1,064 –1,561
Inter-segment sales exist with the following split:
2010 2009
Consumer Durables
Europe 578 1,378
North America 1,173 892
Latin America — 2
Asia/Pacific 94 92
Eliminations 1,845 2,364
The segments are responsible for the management of the opera-
tional assets and their performance is measured at the same level,
while the financing is managed by Group Treasury at group or
country level. Consequently, liquid funds, interest-bearing receiv-
ables, interest-bearing liabilities and equity are not allocated to the
business segments.
Assets
December 31,
Equity and
liabilities
December 31, Net assets
December 31,
2010 2009 2010 2009 2010 2009
Consumer
Durables
Europe 29 845 34 164 22 478 26 373 7 367 7 791
North America 10 019 8 336 2 320 438 7 699 7 898
Latin America 7 713 5 854 4 180 2 664 3 533 3 190
Asia/Pacific 4 181 3 030 2 066 1 088 2 115 1 942
Professional
Products 2 492 2 413 1 618 1 345 874 1 068
Other1) 6 462 5 738 6 507 6 685 –45 –947
Items affecting
comparability 4 –196 1 643 1 240 –1 639 –1 436
60 716 59 339 40 812 39 833 19 904 19 506
Liquid funds 12 805 13 357 — — — —
Interest-bearing
receivables — — — — — —
Interest-bearing
liabilities — — 12 096 14 022 — —
Equity — — 20 613 18 841 — —
Total 73 521 72 696 73 521 72 696 — —
1) Includes Group functions.
order to obtain as much paid sales as possible. In some markets,
Electrolux uses credit insurance as a mean of protection. Credit limits
that exceed SEK300m are decided by the Board of Directors.
For many years, Electrolux has used the Electrolux Rating
Model (ERM) to have a common and objective approach to credit-
risk assessment that enables more standardized and systematic
credit evaluations to minimize inconsistencies in decisions. The
ERM is based on a risk/reward approach and is the basis for the
customer assessment. The ERM consists of three different parts,
Customer and Market Information, Warning Signals and a Credit
Risk Rating (CR2). The risk of a customer is determined by the
CR2 in which customers are classified.
There is a concentration of credit exposures on a number of
customers in, primarily, USA, Latin America and Europe. For addi-
tional information, see Note 17 on page 50.
NOTE 3 Segment information
Reportable segments – Business areas
The Group has five reportable segments. Products for the con-
sumer-durables market, i.e., appliances and floor-care products,
have four reportable segments: Europe; North America; Latin
America and Asia/Pacific. Products within appliances comprise
mainly of refrigerators, freezers, cookers, dryers, washing
machines, dishwashers, room air-conditioners and microwave
ovens. Professional products have one reportable segment. As of
2010, the operations within “Rest of world”, i.e., the Middle East and
Africa, is reported within Consumer Durables Europe. Operations in
the Middle East and Africa were previously part of the business
area Consumer Durables Asia/Pacific and Rest of world. The finan-
cial information of 2009 for the segments involved have been
restated.
Net sales Operating income
2010 2009 2010 2009
Consumer Durables
Europe 40,038 44,073 2,703 2,349
North America 33,776 35,726 1,574 1,476
Latin America 17,276 14,165 1,080 878
Asia/Pacific 8,836 8,033 928 458
Professional Products 6,389 7,129 743 668
106,315 109,126 7,028 5,829
Group common costs 11 6 –534 –507
Items affecting comparability — — –1,064 –1,561
Total 106,326 109,132 5,430 3,761
Financial items, net — — –124 –277
Income after financial
items — — 5,306 3,484
In the internal management reporting, items affecting comparabil-
ity are not included in the segments. The table specifies the seg-
ments to which they correspond.
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