Daimler Annual Report 2011 - Alle jaarverslagen

32. Segment reporting
Reportable segments. The reportable segments of the
Group are Mercedes-Benz Cars, Daimler Trucks, Mercedes-
Benz Vans, Daimler Buses and Daimler Financial Services.
The segments are largely organized and managed separately
according to nature of products and services provided,
brands, distribution channels and profile of customers.
The vehicle segments develop and manufacture passenger cars
and off-road vehicles, trucks, vans and buses. Mercedes-Benz
Cars sells its passenger cars and off-road vehicles under the
brand names Mercedes-Benz, smart and Maybach. Daimler
Trucks distributes its trucks under the brand names Mercedes-
Benz, Freightliner, Western Star and Fuso. The vans of the
Mercedes-Benz Vans segment are primarily sold under the brand
name Mercedes-Benz. Daimler Buses sells completely built-up
buses under the brand names Mercedes-Benz, Setra and Orion.
In addition, Daimler Buses produces and sells bus chassis.
The vehicle segments also sell related spare parts and accessories.
The Daimler Financial Services segment supports the sales
of the Group’s vehicle segments worldwide. Its product portfolio
mainly comprises tailored financing and leasing packages
for customers and dealers. The segment also provides
services such as insurance, fleet management, investment
products and credit cards.
Management reporting and controlling systems. The Group’s
management reporting and controlling systems principally
use accounting policies that are the same as those described
in Note 1 in the summary of significant accounting policies
under IFRS.
The Group measures the performance of its operating segments
through a measure of segment profit or loss which
is referred to as “EBIT” in our management and reporting system.
EBIT is the measure of segment profit/loss used in segment
reporting and comprises gross profit, selling and general
administrative expenses, research and non-capitalized development
costs, other operating income and expense, and our
share of profit/loss from investments accounted for using
the equity method, net, as well as other financial income/
expense, net.
Intersegment revenue is generally recorded at values that
approximate third-party selling prices.
Segment assets principally comprise all assets. The industrial
business segments’ assets exclude income tax assets, assets
from defined pension benefit plans and other post-employment
benefit plans and certain financial assets (including liquidity).
Segment liabilities principally comprise all liabilities. The industrial
business segments’ liabilities exclude income tax liabilities,
liabilities from defined pension benefit plans and other
post-employment benefit plans and certain financial liabilities
(including financing liabilities).
Pursuant to risk sharing agreements between Daimler Financial
Services and the respective vehicle segments the residual
value risks associated with the Group’s operating leases and
its finance lease receivables are primarily borne by the
vehicle segments that manufactured the leased equipment.
The terms of the risk sharing arrangement vary by segment
and geographic region.
Non-current assets comprise of intangible assets, property,
plant and equipment and equipment on operating leases.
Capital expenditures for property, plant and equipment
and intangible assets reflect the cash effective additions
to these property, plant and equipment and intangible
assets as far as they do not relate to capitalized borrowing
costs or goodwill and finance leases.
The effects of certain legal proceedings are excluded from
the operative results and liabilities of the segments, if such
items are not indicative of the segments’ performance, since
their related results of operations may be distorted by the
amount and the irregular nature of such events. This may also
be the case for items that refer to more than one reportable
segment.
If the Group hedges investments in associated companies for
strategic reasons, the related financial assets and earnings
effects are generally not allocated to the segments. They are
included in the reconciliation to Group figures as corporate
items.
With respect to information about geographical regions,
revenue is allocated to countries based on the location
of the customer; non-current assets are disclosed according
to the physical location of these assets.
Table 7.84 presents segment information as of and
for the years ended December 31, 2011 and 2010.
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