(37) Segment information
Jungheinrich operates at the international level—focussing mainly on Europe—as a manufacturer and supplier of products in the fields of material handling equipment, warehousing and material flow technology as well as of the full range of services related to these fields.
The Board of Management of Jungheinrich AG acts and makes decisions with overall responsibility for all the business areas of the Group. Jungheinrich’s business model is designed to serve customers from a single source over a product’s entire life cycle. In pursuing this goal, Jungheinrich defines itself as a single-product material handling equipment and warehousing technology company.
Segment reporting is in line with the internal organizational and reporting structure, thus encompassing the two reportable segments, i.e. ‘Intralogistics’ and ‘Financial Services.’
The ‘Intralogistics’ segment encompasses the development, production, sale and short-term hire of new material handling equipment and warehousing technology products including logistics systems as well as the sale and short-term hire of used equipment and after-sales services, consisting of maintenance, repair and spare parts.
Activities undertaken by the ‘Financial Services’ segment encompass the pan-European sales financing and usage transfer of material handling equipment and warehousing technology products. In line with Jungheinrich’s business model, this independent business area supports the operating sales units of the ‘Intralogistics’ segment. In this context, the ‘Financial Services’ segment is also in charge of its own financing structure.
Segment information is generally subject to the disclosure and measurement methods applied in the consolidated financial statements. A summary of the business segments was not prepared.
The segment income (loss) is presented as earnings before interest and taxes (EBIT). The reconciliation to consolidated earnings before taxes is an integral part of the presentation. Earnings generated by the ‘Intralogistics’ business segment include all of the prorated earnings for the year of companies accounted for using the equity method, amounting to € 3,056 thousand (prior year: € 1,224 thousand). Income taxes are not included in the presentation since they are not reported or managed by segment at Jungheinrich. Therefore, income taxes are only stated as a summarized item at the Group level. Accordingly, net income is only stated for the Jungheinrich Group.
Capital expenditures, depreciation, amortization and impairment losses concern intangible and tangible assets. Segment assets and segment liabilities encompass all assets and liabilities allocable to the segment in question and correspond to the balance sheet total. All balance sheet items relating to current and deferred income taxes are thus also included.
The reconciliation items include the intragroup sales, income from investments, interest and intragroup profits as well as receivables and liabilities that must be eliminated within the scope of consolidation.
The following table displays the segment information valid as of December 31, 2010:
The following table displays the segment information valid as of December 31, 2009:
Besides depreciation and amortization as well as impairment losses, the main non-cash items stated as part of ‘Intralogistics’ segment income are a total of € 3.6 million in income (prior year: € 29.6 million in expenses) from changes in provisions for termination benefits within the scope of personnel-adjustment measures taken at the Norderstedt and Moosburg factories with an effect on net income. ‘Intralogistics’ segment income of the preceding year also includes € 7.6 million in additions to other provisions for existing risks arising from the realignment of the North American business.
The following tables report net sales by region and show the split of non-current assets into intangible and tangible assets, also broken down by region.
Net sales by region
Non-current assets by region
There were no relations with individual external customers accounting for a material share of sales with respect to consolidated sales in the 2010 or 2009 fiscal years.