(37) Segment reporting
|Key Data by Segment|
|€ million||Performance Polymers||Advanced Intermediates||Performance Chemicals||Reconciliation||LANXESS|
|Segment result/EBITDA pre exceptionals||768||817||264||305||289||281||(175)||(178)||1,146||1,225|
|Exceptional items affecting EBITDA||(9)||(9)||(19)||6||(17)||(17)||(17)||(45)||(37)|
|Segment capital expenditures||447||455||117||104||113||139||23||36||700||734|
|Depreciation and amortization||159||207||63||67||77||85||13||15||312||374|
|Employees (December 31)||4,977||5,348||2,883||2,841||5,819||6,031||2,711||2,957||16,390||17,177|
|Employees (average for the year)||4,748||5,237||2,875||2,862||5,574||6,019||2,652||2,844||15,849||16,962|
|Key Data by Region|
|€ million||EMEA (excluding Germany)||Germany||North America||Latin America||Asia-Pacific||LANXESS|
|External sales by market||2,546||2,526||1,569||1,577||1,458||1,611||1,201||1,185||2,001||2,195||8,775||9,094|
|Non-current region assets||706||746||937||1,043||438||454||431||397||575||781||3,087||3,421|
|Employees (December 31)||3,357||3,442||7,846||8,072||1,427||1,553||1,585||1,626||2,175||2,484||16,390||17,177|
Notes to the segment reporting
The valuation principles applied in segment reporting correspond to the uniform recognition and valuation principles used for the consolidated financial statements prepared in accordance with IFRS.
On December 31, 2012 the LANXESS Group comprised the following reporting segments:
|Performance Polymers||Special-purpose rubbers for high-quality rubber products, e.g. for use in vehicles, tires, construction and footwear; engineering plastics, polyamide compounds|
|Advanced Intermediates||Intermediates for the agrochemicals and coatings industries; fine chemicals as precursors and intermediates for pharmaceuticals, agrochemicals and specialty chemicals; custom manufacturing|
|Performance Chemicals||Material protection products; inorganic pigments for the coloring of concrete, emulsion paints and other coatings; finishing agents for the leather industry; rubber chemicals; ion exchange resins for water treatment; plastics additives such as flame retardants and plasticizers|
The reconciliation eliminates inter-segment items and reflects assets and liabilities not directly allocable to the core segments including, in particular, those pertaining to the Corporate Center. It also includes the €8 million (2011: €12 million) interest in investments accounted for using the equity method and the corresponding income of €1 million (2011: €7 million) (see note ).
The transfer prices used for inter-segment business transactions are calculated using the OECD rules as if they had been agreed upon between independent third parties in comparable circumstances (arm’s-length principle).
The majority of employees reflected in the reconciliation provide services for more than one segment. They include technical service staff.
The reporting regions are those into which LANXESS’s activities are organized: EMEA (Europe [excluding Germany], Middle East, Africa), Germany, North America, Latin America and Asia-Pacific.
Regional sales are calculated according to the recipient’s place of business. In fiscal 2012, no individual customer of the LANXESS Group accounted for more than 10% of Group sales.
Since the earnings figure used for management purposes within the LANXESS Group is the operating result before depreciation and amortization (EBITDA) pre exceptionals, this is the amount reported as the “segment result.” It comprises gross profit, selling expenses, general administration expenses, research and development expenses and other operating income and expenses. It does not include, in particular, depreciation and amortization or exceptional items, which relate principally to restructuring activities.
In light of the Group’s central financial management, interest income and expense and income tax income and expense are not reported at segment level.
|Reconciliation of Segment Result|
|Total segment results||1,321||1,403|
|Depreciation and amortization||(325)||(378)|
|Net interest expense||(93)||(96)|
|Other financial income and expense||(35)||(46)|
|Exceptional items in EBITDA||(45)||(37)|
|Income from investments accounted for using the equity method||7||1|
|Income before income taxes||655||669|
Segment assets principally comprise intangible assets, property, plant and equipment, inventories and trade receivables. In particular, segment assets do not include cash and cash equivalents, income tax receivables, receivables from derivatives, or other financial assets.
Information on equity-method income is contained in Note . It mainly comprises income from site services provided by Currenta GmbH & Co. OHG, Leverkusen, Germany, and is not related to the operating business of the segments.
|Reconciliation of Segment Assets|
|€ million||Dec. 31, 2011||Dec. 31, 2012|
|Total segment assets||5,830||6,261|
|Deferred tax assets||196||211|
|Cash and cash equivalents||178||386|
|Other financial assets||109||14|
|Income tax receivables||64||41|
Capital expenditures made by the segments mainly comprise additions to intangible assets, property, plant and equipment.
All depreciation, amortization and impairments in fiscal 2011 and 2012 were recognized directly in profit or loss.
Segment liabilities mainly comprise provisions, trade payables and other liabilities. In particular, segment liabilities do not include income tax liabilities, liabilities from derivatives, or other financial liabilities.
|Reconciliation of Segment Liabilities|
|€ million||Dec. 31, 2011||Dec. 31, 2012|
|Total segment liabilities||1,993||2,091|
|Other financial liabilities||2,098||2,334|
|Deferred tax liabilities||75||82|
|Income tax liabilities||112||80|