Board of Directors Report

Note 3 - Segment information

Reportable segments – Business areas

The Group has five reportable segments. Products for the consumer-durables market, i.e., appliances and floor-care products, have four reportable segments: Europe; North America; Latin America and Asia/Pacific. Products within appliances comprise mainly of refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners and microwave ovens. Professional products have one reportable segment. As of 2010, the operations within "Rest of world", i.e., the Middle East and Africa, is reported within Consumer Durables Europe. Operations in the Middle East and Africa were previously part of the business area Consumer Durables Asia/Pacific and Rest of world. The financial information of 2009 for the segments involved have been restated.

  Net sales   Operating income
  2010 2009   2009 2009
Consumer Durables          
Europe 40,038 44,073   2,703 2,349
North America 33,776 35,726   1,574 1,476
Latin America 17,276 14,165   1,080 878
Asia/Pacific 8,836 8,033   928 458
Professional Products  6,389 7,129   743 668
  106,315 109,126   7,028 5,829
Group common costs 11 6   –534 –507
Items affecting comparability — —   –1,064 –1,561
Total 106,326 109,132   5,430 3,761
Financial items, net — —   –124 –277
Income after financial items — —   5,306 3,484

In the internal management reporting, items affecting comparability are not included in the segments. The table specifies the segments to which they correspond.

Items affecting comparability
  Impairment/restructuring
  2010 2009
Consumer Durables    
Europe –658 –620
North America –406 –779
Latin America — —
Asia/Pacific — –162
Professional Products — —
Total  –1,064 –1,561
Inter-segment sales exist with the following split:
  2010 2009
Consumer Durables    
Europe 578 1,378
North America 1,173 892
Latin America — 2
Asia/Pacific 94 92
Eliminations 1,845 2,364

The segments are responsible for the management of the operational assets and their performance is measured at the same level, while the financing is managed by Group Treasury at group or country level. Consequently, liquid funds, interest-bearing receivables, interest-bearing liabilities and equity are not allocated to the business segments.

  Assets
December 31,		   Equity and liabilities December 31,   Net assets December 31,
  2010 2009   2010 2009   2010 2009
Consumer Durables                
Europe 29 845 34 164   22 478 26 373   7 367 7 791
North America 10 019 8 336   2 320 438   7 699 7 898
Latin America 7 713 5 854   4 180 2 664   3 533 3 190
Asia/Pacific 4 181 3 030   2 066 1 088   2 115 1 942
Professional Products 2 492 2 413   1 618 1 345   874 1 068
Other1) 6 462 5 738   6 507 6 685   -45 -947
Items affecting comparability 4 –196   1 643 1 240   –1 639 –1 436
  60 716 59 339   40 812 39 833   19 904 19 506
Liquid funds 12 805 13 357   — —   — —
Interest-bearing receivables — —   — —   — —
Interest-bearing liabilities — —   12 096 14 022   — —
Equity — —   20 613 18 841   — —
Total  73 521 72 696   73 521 72 696   — —
                 
1) Includes Group functions.            
  Depreciation and amortization   Capital expenditure   Cash flow1)
  2010 2009   2010 2009   2010 2009
Consumer Durables                
Europe 1,478 1,621   1,454 1,187   2,194 1,680
North America 1,112 1,157   742 470   1,483 1,804
Latin America 276 214   661 311   810 2,318
Asia/Pacific 193 197   208 131   909 1,116
Professional Products 116 123   96 107   863 818
Other2) 153 130   60 17   –1,290 –716
Items affecting comparability — —   — —   –375 –413
Financial items — —   — —   –72 –348
Taxes paid — —   — —   –1,316 –929
Total  3,328 3,442   3,221 2,223   3,206 5,330
                 
1) Cash flow from operations and investments.
2) Includes Group functions.    
Geographical information    
  Net sales1)
  2010 2009
USA 29,782 31,725
Brazil 14,231 11,688
Germany 5,974 7,435
Australia 5,514 5,290
Italy 4,609 5,044
Canada 4,390 4,379
France 4,223 5,119
Switzerland 3,667 3,266
Sweden (country of domicile) 3,353 3,399
United Kingdom 2,898 3,259
Other 27,685 28,528
Total  106,326 109,132
     
1) Revenues attributable to countries on the basis of the customer’s location.

Tangible and non-tangible fixed assets located in the Group’s country of domicile, Sweden, amounted to SEK 2,093m (1,814). Tangible and non-tangible fixed assets located in all other countries amounted to SEK 18,107m (18,774). Individually, material countries in this aspect are Italy with SEK 2,877m (3,208), USA with SEK 2,836m (3,025) and Mexico with SEK 2,098m (2,048), respectively.