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2. Segmental analysis

The Group is managed by type of business. Segmental information is provided having regard to the nature of the goods and services provided and the markets served.

Primary reporting format — business segments

  Automotive          
2008 Driveline
£m
Other Auto-
motive
£m
Powder Metallurgy
£m

OffHighway
£m
Aero-
space
£m
Corporate
and Unallocated
£m
Total
£m
Sales 2,123 84 618 549 1,002 4,376
EBITDA 168 31 53 136 (11) 377
Depreciation and impairment charges
(92)

(4)

(32)

(12)

(25)

(1)

(166)
Amortisation of intangible assets (3) (1) (1) (5) (10)
Trading profit/(loss) 73 (4) (2) 40 106 (12) 201
Restructuring —
2008 plan
(23) (13) (106) (3) (3) (1) (149)
Restructuring —
2004 plan
(4) (4)
Other impairments
Amortisation of business combination non-operating intangibles

(2)






(2)


(6)




(10)
Profits and losses on sale or closures of businesses
Change in value of derivative and other financial instruments (35) 1 (4) (2) (93) 9 (124)
Operating profit/(loss) 9 (16) (112) 33 4 (4) (86)
Share of post-tax earnings of joint ventures before impairment 13 4 (1) 16
Impairment — post-tax (10) (10)
Share of post-tax earnings of joint ventures
3

4



(1)


6
Segment assets              
Goodwill 79 32 51 205 367
Investments in joint ventures 90 27 2 119
Derivative financial instruments 1 1 60 62
Operating assets 1,579 50 543 342 816 6 3,336
Other unallocated assets:              
— Cash and cash equivalents 114 114
— Current tax assets 17 17
— Deferred tax assets 52 52
Total assets 1,749 77 575 396 1,081 189 4,067
Segment liabilities              
Derivative financial instruments (31) (5) (4) (152) (192)
Operating liabilities:              
— Post-employment obligations (308) (47) (77) (111) (291) (834)
— Other (474) (18) (114) (150) (305) (52) (1,113)
Other unallocated liabilities:              
— Borrowings (822) (822)
— Current tax liabilities (115) (115)
— Deferred tax liabilities (63) (63)
Total liabilities (813) (18) (166) (231) (568) (1,343) (3,139)
Other segment items              
Capital expenditure              
— Property, plant and equipment 108 1 33 18 31 1 192
— Intangible assets 3 1 9 13
Other non-cash expenses (share-based payments)
1





1

2

All business segments shown above are continuing. EBITDA is earnings before interest, tax, depreciation and amortisation.

Amounts in respect of discontinued operations in the period, £13 million post-tax, were attributable to the final proceeds on the disposal of the Group’s Aerospace joint venture investment in AgustaWestland.

Primary reporting format — business segments

  Automotive          
2007 Driveline
£m
Other Auto-
motive
£m
Powder Metallurgy
£m
OffHighway
£m
Aero-
space
£m
Corporate
and Unallocated
£m
Total
£m
Sales 1,922 109 602 416 820 3,869
EBITDA 227 2 58 39 112 (10) 428
Depreciation and impairment charges
(75)

(5)

(28)

(10)

(24)


(142)
Amortisation of intangible assets (3) (1) (5) (9)
Trading profit/(loss) 149 (3) 29 29 83 (10) 277
Restructuring — 2004 plan (19) (14) (33)
Other impairments 2 2
Amortisation of business combination non-operating intangibles

(1)






(2)


(5)




(8)
Profits and losses on sale or closures of businesses

(7)





(7)
Change in value of derivative and other financial instruments (1) (1) (1) (2) (5) (10)
Operating profit/(loss) 128 (9) 14 25 73 (10) 221
Share of post-tax earnings of joint ventures
14

10





24
Segment assets              
Goodwill 65 24 38 153 280
Investments in joint ventures 71 28 1 100
Derivative financial instruments 6 19 25
Operating assets 1,280 56 531 251 620 5 2,743
Other unallocated assets:              
— Cash and cash equivalents 282 282
— Current tax assets 2 2
— Deferred tax assets 56 56
Total assets 1,422 84 555 290 792 345 3,488
Segment liabilities              
Derivative financial instruments (1) (1) (1) (1) (9) (17) (30)
Operating liabilities:              
— Post-employment obligations (208) (7) (23) (45) (32) (16) (331)
— Other (446) (21) (122) (115) (209) (51) (964)
Other unallocated liabilities:              
— Borrowings (788) (788)
— Current tax liabilities (104) (104)
— Deferred tax liabilities (75) (75)
Total liabilities (655) (29) (146) (161) (250) (1,051) (2,292)
Other segment items              
Capital expenditure              
— Property, plant and equipment 94 2 38 11 28 1 174
— Intangible assets 3 1 16 20
Other non-cash expenses (share-based payments)
2


1


1

2

6

All business segments shown above are continuing.

Intra-group sales between segments and regions are not significant. The analyses of operating profit by business includes an allocation, based on their nature, of costs incurred centrally in the United Kingdom, United States of America, China and Germany. Unallocated costs represent corporate expenses. Segment assets and liabilities comprise all non-current and current items as per the balance sheet but exclude taxation, borrowings and cash and cash equivalents. Cash and cash equivalents and borrowings are not allocated to specific segments as these resources are managed centrally and no business in any segment has sufficient autonomy to manage these resources. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year.

Secondary reporting format — by geographical region

  Sales by destination Segment assets Capital expenditure
  2008
£m
2007
£m
2008
£m
2007
£m
2008
£m
2007
£m
Continuing operations            
Europe 2,018 1,773 1,709 1,411 96 87
Americas 1,748 1,595 1,623 1,315 78 75
Rest of the World 610 501 546 417 31 32
Corporate and Unallocated 189 345
  4,376 3,869 4,067 3,488 205 194

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