Annual Report 2010

Adecco Group –
Notes to consolidated financial statements
in millions, except share and per share information

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
America

UK &
Ireland

Japan

Germany
& Austria

Benelux

Other

Corporate

Total

 

 

 

 

 

 

 

 

 

 

2010 segment reporting

 

 

 

 

 

 

 

 

 

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
amortisation and impairment of
goodwill and intangible assets

212

174

22

69

84

43

192

(74)

722

Amortisation of intangible assets

 

 

 

 

 

 

 

 

(55)

Impairment of goodwill and
intangible assets

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

667

Interest expense, and other
income/(expenses), net

 

 

 

 

 

 

 

 

(64)

Provision for income taxes

 

 

 

 

 

 

 

 

(179)

Net income

 

 

 

 

 

 

 

 

424

 

 

 

 

 

 

 

 

 

 

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
America

UK &
Ireland

Japan

Germany
& Austria

Benelux

Other

Corporate

Total

 

 

 

 

 

 

 

 

 

 

2009 segment reporting

 

 

 

 

 

 

 

 

 

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
amortisation and impairment of
goodwill and intangible assets

68

112

(13)

95

31

6

67

(67)

299

Amortisation of intangible assets

 

 

 

 

 

 

 

 

(42)

Impairment of goodwill and
intangible assets

 

 

 

 

 

 

 

 

(192)

Operating income

 

 

 

 

 

 

 

 

65

Interest expense, and other
income/(expenses), net

 

 

 

 

 

 

 

 

(56)

Provision for income taxes

 

 

 

 

 

 

 

 

(1)

Net income

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

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
America

UK &
Ireland

Japan

Germany
& Austria

Benelux

Other

Corporate

Total

 

 

 

 

 

 

 

 

 

 

2008 segment reporting

 

 

 

 

 

 

 

 

 

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
amortisation and impairment of
goodwill and intangible assets

272

124

23

107

154

50

263

(85)

908

Amortisation of intangible assets

 

 

 

 

 

 

 

 

(44)

Impairment of goodwill and
intangible assets

 

 

 

 

 

 

 

 

(116)

Operating income

 

 

 

 

 

 

 

 

748

Interest expense, and other
income/(expenses), net

 

 

 

 

 

 

 

 

(39)

Provision for income taxes

 

 

 

 

 

 

 

 

(210)

Net income

 

 

 

 

 

 

 

 

499

 

 

 

 

 

 

 

 

 

 

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
Technology

Engineering
& Technical

Finance &
Legal

Medical &
Science

Sales,
Marketing &
Events

Human
Capital
Solutions

Emerging
Markets

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

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.