annual report - FIAT SpA

30. Segment reporting
The operating segments through which the Group carries out its activities are based on the internal reporting used by
the Group’s Chief Executive Officer to make strategic decisions.
As a result of the Demerger, described earlier, segment reporting disclosures are set out for Continuing Operations
and then separately for Discontinued Operations in order to reflect the Group’s new organisational structure. In
addition, following the inclusion of the Industrial & Marine operations of the FPT Powertrain Technologies sector in
Discontinued Operations, starting from these financial statements this sector is no longer reported as a whole, in
accordance with IFRS 8 - Operating Segments, while the Fiat Powertrain sector, which includes the Passengers &
Commercial Vehicles line of business, and the FPT Industrial sector, which includes the Industrial & Marine line of
business, are presented separately in Continuing Operations and Discontinued Operations, respectively.
The reporting used in the preparation of this Note, which reflects the Group’s current organisational structure, is
broken down by the various products and services offered by the Group and prepared in accordance with the
accounting policies described under Significant Accounting Policies above.
The individual operating segments included in Continuing Operations earn revenues from their ordinary production
and sales activities as follows:
� Fiat Group Automobiles earns its revenues from the production and sale of passenger cars and light
commercial vehicles, in addition to the provision of financial services associated with the sale of those vehicles
in markets outside the European Union. Financial services activities within the European Union are, however,
carried out through the 50/50 joint venture FGA Capital set up with the Crédit Agricole group.
� The Maserati segment earns its revenues from the production and sale of Maserati-brand luxury sport cars.
� The Ferrari segment earns its revenues from the production and sale of Ferrari-brand luxury sport cars, from
managing its Formula 1 team and from providing financial services offered in conjunction with its vehicle sales.
� The Fiat Powertrain segment earns its revenues from the production and sale of engines and transmissions for
passenger and commercial vehicles, and from the Centro Ricerche Fiat activities.
� The Components segment (Magneti Marelli) earns its revenues from the production and sale of lighting
components, engine control units, suspensions, shock absorbers, electronic systems, and exhaust systems
and from activities in the plastic moulding components and in the after market.
� The Metallurgical Products segment (Teksid) earns its revenues from the production and sale of cast iron
components for engines, transmissions and suspension systems, and aluminium cylinder heads.
� The Production System segment (Comau) earns its revenues from the design and production of industrial
automation systems and related products for the automotive sector.
The individual operating segments included in Discontinued Operations earn revenues from their ordinary production
and sales activities as follows:
� The Agricultural and Construction Equipment segment (CNH-Case New Holland) is active globally in the
design, production and sale of agricultural and construction equipment. This segment also provides financial
services to its end customers and dealers directly and indirectly in certain European countries through a joint
ventures with the BNP Paribas Group.
� The Trucks and Commercial Vehicles segment (Iveco) earns its revenues from the production and sale,
predominantly in Europe, of trucks and commercial vehicles, buses and special use vehicles. The segment also
offers financial services directly to its customers and dealers in Eastern Europe, while in Western Europe these
offered through Iveco Finance Holdings Limited, which is owned 51% by the Barclays Group and 49% by Iveco.
� The FPT Industrial segment earns its revenues from the industrial and marine powertrain activities.
The Group assesses performance of its operating segments on the basis of the Trading profit/(loss), Operating
profit/(loss) and Result from investments earned by those segments.
Revenues for each reported segment are those directly generated by or attributable to the segment as the result of its
usual business activities and include revenues from transactions with third parties as well as those derived from
transactions with other segments, recognised at normal market prices. For those operating segments which also
provide financial services activities, revenues include interest income and other financial income deriving from those
activities. Segment expenses represent expenses deriving from each segment's business activities both with third
parties and other operating segments or which may otherwise be directly attributable to it. Expenses deriving from
business activities with other segments are recognised at normal market prices. For those operating segments which
Fiat Group Consolidated Financial Statements at 31 December 2010 198