Note 16 • Segment reporting
In 2010, the Company was organised in a geographical structure complemented by business lines. The geographies consist of France, North America, UK & Ireland, Japan, Germany & Austria, Benelux, Italy, Iberia, Nordics, Australia & New Zealand, Switzerland, and Emerging Markets. The business lines consist of Office, Industrial, Information Technology, Engineering & Technical, Finance & Legal, Medical & Science, Sales, Marketing & Events, and Human Capital Solutions. The classification of a specific branch into a business line is determined by the business line generating the largest revenue share in that specific branch. Since January 2011, the Company is organised in a geographical structure plus the global business Lee Hecht Harrison (“LHH”). This structure is complemented by business lines.
The Company evaluates the performance of its segments based on operating income before amortisation and impairment of goodwill and intangible assets, which is defined as the amount of income before amortisation and impairment of goodwill and intangible assets, interest expense, other income/(expenses), net, and provision for income taxes. Corporate items consist of certain assets and expenses which are separately managed at the corporate level. Segment assets include current assets, property, equipment, and leasehold improvements, net, other assets, intangible assets, net, and goodwill, but exclude investments in subsidiaries and intercompany balances. The accounting principles used for the segment reporting are those used by the Company.
Revenues derived from temporary staffing totalled 92% in 2010 and in 2009 and 93% in 2008 of the Company’s revenues. The remaining portion was derived from permanent placement, outsourcing, outplacement, and consulting services.
in EUR | France | North | UK & | Japan | Germany | Benelux | Other | Corporate | Total |
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2010 segment reporting |
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Revenues | 5,588 | 3,609 | 1,630 | 1,297 | 1,238 | 894 | 4,400 |
| 18,656 |
Depreciation | (17) | (18) | (10) | (5) | (9) | (6) | (16) | (6) | (87) |
Operating income before | 212 | 174 | 22 | 69 | 84 | 43 | 192 | (74) | 722 |
Amortisation of intangible assets |
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| (55) |
Impairment of goodwill and |
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Operating income |
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| 667 |
Interest expense, and other |
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| (64) |
Provision for income taxes |
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| (179) |
Net income |
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| 424 |
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Capital expenditures | (42) | (13) | (1) | (9) | (7) | (3) | (23) | (7) | (105) |
Segment assets | 1,709 | 2,234 | 704 | 282 | 1,803 | 324 | 1,461 | 362 | 8,879 |
Long-lived assets [1] | 109 | 112 | 27 | 46 | 24 | 15 | 81 | 59 | 473 |
in EUR | France | North | UK & | Japan | Germany | Benelux | Other | Corporate | Total |
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2009 segment reporting |
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Revenues | 4,806 | 2,316 | 947 | 1,343 | 1,033 | 801 | 3,551 |
| 14,797 |
Depreciation | (15) | (13) | (11) | (4) | (9) | (6) | (18) | (5) | (81) |
Operating income before | 68 | 112 | (13) | 95 | 31 | 6 | 67 | (67) | 299 |
Amortisation of intangible assets |
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| (42) |
Impairment of goodwill and |
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| (192) |
Operating income |
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| 65 |
Interest expense, and other |
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| (56) |
Provision for income taxes |
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| (1) |
Net income |
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| 8 |
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Capital expenditures | (32) | (10) | (8) | (5) | (8) | (7) | (18) | (4) | (92) |
Segment assets | 1,496 | 1,485 | 434 | 241 | 1,736 | 300 | 1,144 | 995 | 7,831 |
Long-lived assets [1] | 86 | 83 | 34 | 30 | 27 | 23 | 51 | 36 | 370 |
in EUR | France | North | UK & | Japan | Germany | Benelux | Other | Corporate | Total |
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2008 segment reporting |
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Revenues | 6,574 | 2,898 | 1,404 | 1,463 | 1,646 | 957 | 5,023 |
| 19,965 |
Depreciation | (18) | (15) | (10) | (4) | (8) | (5) | (17) | (7) | (84) |
Operating income before | 272 | 124 | 23 | 107 | 154 | 50 | 263 | (85) | 908 |
Amortisation of intangible assets |
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| (44) |
Impairment of goodwill and |
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| (116) |
Operating income |
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| 748 |
Interest expense, and other |
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| (39) |
Provision for income taxes |
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| (210) |
Net income |
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| 499 |
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Capital expenditures | (28) | (10) | (15) | (3) | (12) | (8) | (24) | (6) | (106) |
Segment assets | 1,734 | 1,168 | 321 | 328 | 1,936 | 311 | 1,188 | 544 | 7,530 |
Long-lived assets [1] | 69 | 85 | 31 | 33 | 29 | 29 | 50 | 25 | 351 |
Revenues by business line are as follows:
in EUR | Office | Industrial | Information | Engineering | Finance & | Medical & | Sales, | Human | Emerging | Total |
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Revenues |
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2010 | 3,726 | 8,971 | 2,071 | 948 | 699 | 360 | 357 | 266 | 1,258 | 18,656 |
2009 [2] | 3,504 | 7,375 | 1,099 | 615 | 322 | 245 | 330 | 341 | 966 | 14,797 |
2008 [2] | 4,544 | 11,088 | 1,179 | 802 | 448 | 275 | 357 | 263 | 1,009 | 19,965 |
[1]Long-lived assets include fixed assets and other non-current assets.
[2]The 2010 information includes certain changes in the allocation of branches to business lines. The 2009 and 2008 information has been restated to conform to the current year presentation.