Annual Report 2011

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

Note 16 – Segment reporting

Since January 1, 2011, the Company is organised in a geographical structure plus the global business Lee Hecht Harrison (“LHH”), which corresponds to the primary segments. This structure is complemented by business lines. The segments consist of France, North America, UK & Ireland, Japan, Germany & Austria, Benelux, Italy, Nordics, Iberia, Australia & New Zealand, Switzerland, Emerging Markets and LHH. The business lines consist of Office, Industrial, Information Technology, Engineering & Technical, Finance & Legal, Medical & Science, and 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.

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 represented 91% in 2011 and 92% in both 2010 and 2009 of the Company’s revenues. The remaining portion was derived from permanent placement, outsourcing, career transition (outplacement), and other services.

in EUR

France [1]

North
 America [1]

UK &
 Ireland

 Japan [1]

Germany &
 Austria [1]

 Benelux [1]

 Italy [1]

 Other [1]

 Corporate

Total

 

 

 

 

 

 

 

 

 

 

 

2011 segment reporting

 

 

 

 

 

 

 

 

 

 

Revenues

6,066

3,646

1,707

1,406

1,544

961

1,032

4,183

 

20,545

Depreciation

(18)

(16)

(8)

(8)

(8)

(6)

(3)

(19)

(7)

(93)

Operating income before
amortisation and impairment of
goodwill and intangible assets

220

161

32

80

110

44

60

189

(82)

814

Amortisation of intangible assets

 

 

 

 

 

 

 

 

 

(51)

Impairment of goodwill and
intangible assets

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

763

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

 

 

 

 

 

 

 

 

 

(77)

Provision for income taxes

 

 

 

 

 

 

 

 

 

(166)

Net income

 

 

 

 

 

 

 

 

 

520

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

(23)

(19)

(3)

(4)

(9)

(5)

(4)

(32)

(10)

(109)

Segment assets

1,638

2,122

729

329

1,820

301

199

1,791

425

9,354

Long-lived assets [2]

107

119

23

38

32

18

7

126

47

517

in EUR

France [1]

North
 America [1]

UK &
 Ireland

 Japan [1]

Germany &
 Austria [1]

 Benelux [1]

 Italy [1]

 Other [1]

 Corporate

Total

 

 

 

 

 

 

 

 

 

 

 

2010 segment reporting

 

 

 

 

 

 

 

 

 

 

Revenues

5,494

3,488

1,630

1,295

1,231

889

842

3,787

 

18,656

Depreciation

(16)

(17)

(10)

(5)

(8)

(6)

(3)

(16)

(6)

(87)

Operating income before
amortisation and impairment of
goodwill and intangible assets

199

134

22

69

82

41

38

211

(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)

(8)

(7)

(3)

(3)

(21)

(7)

(105)

Segment assets

1,564

2,192

704

281

1,801

320

194

1,461

362

8,879

Long-lived assets [2]

104

111

27

45

24

15

6

82

59

473

in EUR

France [1]

North
 America [1]

UK &
 Ireland

 Japan [1]

Germany &
 Austria [1]

 Benelux [1]

 Italy [1]

 Other [1]

 Corporate

Total

 

 

 

 

 

 

 

 

 

 

 

2009 segment reporting

 

 

 

 

 

 

 

 

 

 

Revenues

4,717

2,121

947

1,338

1,023

796

681

3,174

 

14,797

Depreciation

(14)

(12)

(11)

(4)

(9)

(6)

(4)

(16)

(5)

(81)

Operating income before
amortisation and impairment of
goodwill and intangible assets

56

31

(13)

95

31

5

5

156

(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

(31)

(9)

(8)

(5)

(7)

(7)

(2)

(19)

(4)

(92)

Segment assets

1,337

1,442

434

241

1,736

297

160

1,189

995

7,831

Long-lived assets [2]

80

81

34

30

27

23

7

52

36

370

Information by country is as follows:

in EUR

France

USA

UK


Germany

Japan

Italy

Switzerland

Rest

of the world

Total

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

2011

6,144

3,182

1,694

1,503

1,407

1,035

482

5,098

20,545

2010

5,588

3,099

1,615

1,197

1,297

844

399

4,617

18,656

2009

4,806

1,947

931

990

1,343

683

342

3,755

14,797

Long-lived assets

 

 

 

 

 

 

 

 

 

2011

121

126

23

32

39

7

38

131

517

2010

116

107

27

23

46

6

52

96

473

2009

92

79

34

26

30

7

30

72

370

Revenues by business line are as follows:

in EUR

Office

Industrial

Information

Technology

Engineering
& Technical

Finance &
Legal

Medical &
Science

Solutions



Total

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

2011

5,301

10,642

2,176

1,009

722

384

311

20,545

2010 [3]

4,871

9,403

2,049

956

705

360

312

18,656

2009 [3]

4,467

7,694

1,113

610

322

245

346

14,797

[1]Since January 1, 2011, LHH is reported as a separate segment and presented in Other above. The 2010 and 2009 information has been restated to conform to the current year presentation.

[2]Long-lived assets include fixed assets and other non-current assets.

[3]The 2011 information includes certain changes in the allocation of branches to business lines. The 2010 and 2009 information has been restated to conform to the current year presentation.