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Cash Flow Statement
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Notes
28 Segment Reporting
Application of IFRS 8 “Operating Segments” is mandatory from
January 1, 2009. Th is standard requires that external segment
reporting be based on internal organizational and management
structure and on management and reporting indicators
used internally. Th e fi rst-time application of IFRS 8 only led
to additional information in the notes for the Bertelsmann
Group. It did not lead to any changes in the segments, as these
already pursued the management approach in the past. Th e
Bertelsmann Group comprises fi ve operating segments, which
diff er according to the type of products and services they off er,
and Corporate:
• TV, radio and TV production group RTL Group
• Global book publishing group Random House
• European magazine publisher Gruner + Jahr
• Media and communications service provider Arvato
• Direct Group, which operates book retail and club business
Each of these segments is run by a segment manager
who is responsible for results. This manager reports to
Bertelsmann AG’s Executive Board in its role as the chief operating
decision maker within the meaning of IFRS 8. Th e Corporate
division includes the Bertelsmann Group’s Corporate Center
and Corporate Investments. Th e responsibilities of the
Corporate Center comprise in particular activities in the areas
of accounting and reporting, taxes, legal, human resources,
information technology, internal auditing as well as management,
internal control and strategic development of the Group,
fi nancing, risk management and the optimization of the Group’s
portfolio. Corporate does not constitute an operating segment.
In segment reporting Corporate is shown separately.
Activities not allocated to any of these divisions and multisegment
link eliminations are carried in the column “Consolidation/Other.”
As in the past, specifi c segment information is defi ned
according to the defi nitions on which Group management
is based. As a rule, accounting and valuation in the segment
reporting uses the same IFRS principles as in the consolidated
fi nancial statements. Deviating from the IFRS principles,
66 percent of the net present value of the operating leases is
considered in the caculation of invest capital. Intercompany
revenues are recognized at the same arm’s-length conditions
applied to transactions with third parties.
Bertelsmann Annual Report 2009
Th e performance of the operating segments is assessed using
operating EBIT. Th is represents the operating earnings before
taxes and capital costs recorded by the respective segment’s
management and is calculated by adjusting EBIT for special
items such as capital gains and losses, impairments, restructuring
costs, severance payments and other valuation allowances.
Th e elimination of these extraordinary factors allows the determination
of a normalized result, thus simplifying forecasting
and comparability.
Segment depreciation and amortization includes the depreciation
of property, plant and equipment, and amortization
of intangible assets as set out in the statement of selected
non-current assets.
Segment assets constitute the operating assets for each
segment. Th ese consist of property, plant and equipment, intangible
assets including goodwill, and fi nancial assets. Also
included are 66 percent of the net present value of the operating
leases and current assets with the exception of cash and cash
equivalents, tax receivables and other non-operating assets.
Segment liabilities consist of operating liabilities and provisions.
Pensions and similar obligations, tax liabilities, fi nancial
debt or other non-operating liabilities and provisions are thus
not included.
Additions to non-current assets are balancesheet additions
to property, plant and equipment and intangible assets including
goodwill.
Each segment shows the earnings of, and investments in,
associated companies, provided these companies can be clearly
allocated to the segment concerned. Th e results of associated
companies are shown before impairment of goodwill.
In addition, the number of employees at balance sheet
date and the average number of employees for the year are
shown.
In addition to the segment breakdown, revenues are broken
down by customer location and income source. Non-current
assets are also stated according to the location of the respective
company.
For information on the segment information tables, please
refer to page 82f.
Th e following table shows the reconciliation of segment
information to the consolidated fi nancial statements:
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