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may be uncertain. If the final outcome differs from the group's estimates, such differences will impact the current and deferred income tax
assets and liabilities in the period in which such determination is made.
Provisions
For our critical accounting estimates and judgements on provisions, refer to note 26 - Provisions.
Internally generated technology, databases and tools
Internally generated technology, databases and tools are capitalised in accordance with IAS 38. Assumptions and judgements are made with
regard to assessing the expected future economic benefits, the economic useful life and the level of completion of the databases. At the point
where activities no longer relate to development but to maintenance, capitalisation is discontinued. For additional information, refer to note
13 - Intangible assets.
5. Segment reporting
The operating segments are identified and reported on the basis of internal reports about components of the group that are regularly reviewed
by the Management Board to assess the performance of the segments.
The group's internal management reporting is structured primarily on the basis of the market segments in which the four operating segments
- Consumer, Automotive, Licensing and Business Solutions - operate. Consumer generates revenue mainly from the sale of PNDs, sports
watches, maps and related navigation products and services. The Automotive business unit develops and sells navigation systems, services
and content, such as maps and traffic, to car manufacturers and their suppliers worldwide. Licensing generates revenue by licensing high-
quality digital maps, traffic and other content to a wide range of customers, and Business Solutions provides fleet management services and
related solutions to fleet owners.
Management assesses the performance of segments based on the measures of revenue and earnings before interest and taxes (EBIT), whereby
the EBIT measure includes allocations of expenses from supporting functions within the group. Such allocations have been determined based
on relevant measures that reflect the level of benefits of these functions to each of the operating segments. As the four operating segments
serve only external customers, there is no inter-segment revenue. The effects of non-recurring items such as impairment are excluded from
management's measurement basis. Interest income and expenses and tax are not allocated to the segments. There is no measure of segment
(non-current) assets and/or liabilities provided to the Management Board.
(€ in thousands) 2013 2012
Revenue
Consumer 567,020 639,106
Automotive 192,435 211,952
Licensing 119,369 133,063
Business Solutions 84,630 73,013
TOTAL 963,454 1,057,134
EBIT
Consumer125,668 40,516
Automotive2– 631 9,412
Licensing – 13,298 8,299
Business Solutions 24,822 24,566
TOTAL 36,561 82,793
1Consumer EBIT in 2012 included one-off costs of €11.7 million relating to a malfunctioning GPS chip issue and a one-off gain of €10.5 million as a result of changes of estimates in our claims and litigation
provision.
2Automotive EBIT in 2012 included a €7.2 million gain due to changes of estimates in our claims and litigation provision as well as our warranty provision.
Notes to the Consolidated Financial Statements / Continued
ANNUAL REPORT AND ACCOUNTS 2013 / 56