Note 3 Segment information

All amounts in SEKm unless otherwise stated

Reportable segments – Business areas

The Group’s operations are divided into six reportable segments based on differences in products: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; Small Appliances and Professional Products. The Major Appliances business areas are geographically defined, while the Small Appliances and Professional Products business areas are global. The segments are regularly reviewed by the President and CEO, the Group’s chief operating decision maker.

Major Appliances and Small Appliances are producing appliances for the consumer market. Products within Major Appliances comprise mainly of refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners and microwave ovens. Small appliances include vacuum cleaners and other small appliances.

Professional Products consists of two operating segments, food-service equipment and laundry solutions for professional users, which are aggregated into one reportable segment in accordance with the aggregation criteria. Aggregation is done due to the similarities of products and services provided to professional users, similar production processes designed to make products which can endure very demanding use, and resemblance in sales and distribution channels.

The segments are responsible for the operating results and the net assets used in their businesses, whereas financial items and taxes, as well as net borrowings and equity, are not reported per segment. The operating results and net assets of the segments are consolidated using the same principles as for the total Group. The segments consist of separate legal units as well as divisions in multi-segment legal units where some allocations of costs and net assets are made. Operating costs not included in the segments are shown under Common Group costs, which mainly are costs related to group management activities typically required to run the Electrolux Group.

Sales between segments are made on market conditions with arm’s-length principles.

	Net sales		Operating income
	2016	2015	2016	2015
Major Appliances Europe, Middle East and Africa	37,844	37,179	2,546	2,167
Major Appliances North America	43,402	43,053	2,671	1,580
Major Appliances Latin America	15,419	18,546	–68	463
Major Appliances Asia/Pacific	9,380	9,229	626	364
Small Appliances	8,183	8,958	238	–63
Professional Products	6,865	6,546	954	862
	121,093	123,511	6,967	5,373
Common Group costs	—	—	–693	–2,632
Total	121,093	123,511	6,274	2,741
Financial items, net	—	—	–693	–640
Income after financial items	—	—	5,581	2,101

Inter-segment sales exist with the following split:

	2016	2015
Major Appliances Europe, Middle East and Africa	1,143	919
Major Appliances North America	841	1,017
Major Appliances Latin America	1	—
Major Appliances Asia/Pacific	296	329
Professional Products	8	6
Eliminations	2,289	2,271

The segments are responsible for the management of the operational assets and their performance is measured at the same level, while the financing is managed by Group Treasury at group or country level. Consequently, liquid funds, interest-bearing receivables, interest-bearing liabilities and equity are not allocated to the business segments.

	Assets December 31,		Equity and liabilities December 31,		Net assets December 31,
	2016	2015	2016	2015	2016	2015
Major Appliances Europe, Middle East and Africa	21,573	21,746	20,713	19,326	860	2,420
Major Appliances North America	15,163	16,601	12,463	11,747	2,700	4,854
Major Appliances Latin America	12,364	11,692	6,148	5,893	6,216	5,799
Major Appliances Asia/Pacific	5,688	5,422	3,846	3,822	1,842	1,600
Small Appliances	4,181	4,551	3,385	3,251	796	1,300
Professional Products	3,399	3,070	2,556	2,188	843	882
Other¹⁾	9,124	8,793	4,283	4,236	4,841	4,557
	71,492	71,875	53,394	50,463	18,098	21,412
Liquid funds	14,011	11,199	—	—	—	—
Total borrowings	—	—	10,202	13,097	—	—
Pension assets and liablities	345	397	4,514	4,906	—	—
Equity	—	—	17,738	15,005	—	—
Total	85,848	83,471	85,848	83,471	—	—

¹⁾ Includes common functions, tax items.

	Depreciation and amortization		Capital expenditure		Cash flow¹⁾
	2016	2015	2016	2015	2016	2015
Major Appliances Europe, Middle East and Africa	1,343	1,474	1,402	1,163	2,936	4,249
Major Appliances North America	1,136	1,046	673	913	4,980	3,325
Major Appliances Latin America	607	560	600	736	263	198
Major Appliances Asia/Pacific	295	271	271	340	665	862
Small Appliances	206	257	171	181	521	–38
Professional Products	112	111	124	99	1,061	977
Other²⁾	235	216	149	208	–1,110	–2,919
Financial items	—	—	—	—	–514	–513
Taxes paid	—	—	—	—	–1,194	–1,277
Total	3,934	3,935	3,390	3,640	7,608	4,864

¹⁾ Cash flow from operations and investments.

²⁾ Includes Group functions.

Geographical information

	Net sales¹⁾
	2016	2015
USA	41,821	41,654
Brazil	9,988	11,941
Germany	6,516	6,512
Sweden (country of domicile)	5,294	4,426
Australia	4,858	4,734
France	4,141	4,031
United Kingdom	4,121	4,177
Canada	3,910	4,313
Italy	3,822	3,642
Switzerland	3,203	4,343
Other	33,419	33,738
Total	121,093	123,511

¹⁾ Revenues attributable to countries on the basis of the customer’s location.

Tangible and non-tangible fixed assets located in the Group’s country of domicile, Sweden, amounted to SEK 1,457m (1,462). Tangible and non-tangible fixed assets located in all other countries amounted to SEK 25,123m (25,590). Individually, material countries in this aspect are Italy with SEK 2,980m (2,884), USA with SEK 5,838m (5,884) and Brazil with SEK 2,145m (1,675), respectively.

No single customer to the Group has 10% or more of the external revenue.