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CONSOLIDATED FINANCIAL STATEMENTS
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 78
SECTION 2: RESULTS OF THE YEAR
This section presents the notes related to items in the income statement (except for financial income and
expenses) and disclosure on operating segments. If applicable, relevant notes on balance sheet items related to
the respective items in the income statement are presented in this section. A detailed description of the results
for the year is provided in the business and financial review by business unit and group financial review
sections in the Management Board report.
4. SEGMENT REPORTING AND REVENUE
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 Telematics - operate. Consumer generates revenue mainly from the sale of PNDs,
sport watches, action cameras, maps and related navigation products and services. The Automotive business unit develops and sells
navigation software components, services and content to car manufacturers and Tier 1 suppliers worldwide. Licensing generates
revenue by licensing navigation software components, services and content to a wide range of customers, and Telematics provides
fleet management services and related products to fleet owners including sale and/or rental of hardware products associated with the
services.
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
goodwill 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. The non-
current assets within the group include a significant portion of the carrying value of the step up resulting from the Tele Atlas
acquisition in 2008. As this step up is not geographically allocated to the respective regions for internal management reporting, we
believe that disclosure of geographic allocation would be highly judgemental and would not give a true representation of geographical
spread of the group's assets.