Page 87 - Loomis Annual Report 2017

Loomis Annual Report 2017
Notes – Group 83
NOTE 7 Transactions with related parties
Related parties are considered to include members of the Parent Company’s Board of Directors, Group Management and family members of these individuals. Related parties are also companies in which a signi cant portion of the votes are directly or indirectly controlled by these individuals, or companies in which these individuals can exercise a signi cant in uence.
Transactions with related parties refer to license fees and other revenue from subsidiaries, dividends from subsidiaries, interest income and interest expenses to and from subsidiaries, as well as receivables and payables to and from subsidiaries. In accordance with IFRS, transactions with pension funds that have links to the Group are also to be regarded as related party transactions. There are pension funds for Loomis’ de ned bene- t pension plans. For more information on Loomis’ de ned ben- e t pension plans, refer to Note 30.
For information on the Parent Company’s transactions with related parties refer to Note 38. For information on personnel costs in the Group, refer to Note 11.
International valuable logistics are not reported in the operat- ing segments Europe or the USA based on a geographical split, but is instead reported as a separate segment, segment Inter- national. This is because the International segment differs from the other segments as it includes cross-border transportation
of cash and precious metals, storage of valuables and, up until June 30, 2016, general cargo operations, as well as the fact that the CEO separately monitors the segments’ nancial perfor- mance and allocates resources.
Segment Other consists of the head of ce and the Parent Company, the risk management function and other functions managed at Group level and which are related to the Group as a whole.
According to IFRS 8.32, segment information is to be reported for the revenues from each service or each group of similar services. For Segment Europe Cash in Transit accounts for 66 percent (67) of revenues and Cash Management Ser- vices for 34 percent (33). For Segment USA, Cash in Transit accounts for 67 percent (67) of total revenue and Cash Man- agement Services for 33 percent (33). Up until June 30, 2016, the International segment included three distinct business areas: cross-border transportation of cash and precious metals, storage of valuables and general cargo operations. The general cargo operations were divested on July 1, 2016. Since revenues from International do not make up a signi cant portion of the Group’s total revenues, no further information is reported on the different business areas of within International.
The internal monitoring of earnings and nancial position is reported in accordance with the same accounting principles
as applied in Loomis’ external reporting. Interest income and interest expense are not allocated amongst the segments, but are transferred to Other as these items are affected by mea- sures taken by the Group’s Treasury function. The same princi- ple is applied to taxes and tax-related items, as these are han- dled by a group-wide function. The operating segments’ assets and liabilities are allocated according to the segment’s opera- tions and the physical location of the assets and liabilities. The Group’s interest-bearing liabilities are not considered to be seg- ment liabilities and have therefore been included in Other in the table below.
Segment information for the nancial years 2017 and 2016 that is delivered to the executive managers of Europe, the USA and International, concerning those segments for which information is to be provided, can be found in the table below. This table also includes disclosures concerning selected earnings measures, and also assets and liabilities for the segments.
Revenue from external customers in Sweden amounts to SEK 902 million (884), in the USA to SEK 7,876 million (7,531), and total revenue from external customers in other countries amounts to SEK 8,450 million (8,385). No single customer represents more than 5 percent of the total revenue. Total xed assets located
in Sweden, apart from nancial instruments and deferred tax assets, amount to SEK 289 million (240), in the USA to SEK 1,992 million (2,227), and the total for the xed assets located in other countries amounts to SEK 2,478 million (2,242).
* Argentina anc Chile are included in the European segment because the operations there are reported and followed up as part of the European segment.
NOTE 8
Segment reporting
Loomis has operations in a number of countries, with country presidents being responsible for each country. Regional/Seg- ment presidents supervise operations in a number of countries and also support the respective country president. Operating segments are reported in accordance with the internal Loomis reporting, submitted to Loomis’ CEO who has been identi ed as the most senior executive decision-maker within Loomis. Loomis has the following segments: Europe*, USA, International and Other. Presidents for the segments Europe, USA and Inter- national are responsible for following up the segments’ operat- ing income before amortization of acquisition-related intangible assets, acquisition-related costs and revenue and items affect- ing comparability (EBITA), according to the manner in which Loomis reports its consolidated statement of income. This then forms the basis for how the CEO monitors development, allo- cates resources etc. Loomis has therefore chosen this structure for its segment reporting.
National cash handling services (Cash in Transit and Cash Management Services) are split between the segments Europe and USA. The split is based on the similarities between Euro- pean countries in important areas relating to, for example, mar- ket conditions, political circumstances, laws and regulations that affect Loomis’ operations. Operations in the USA are affected to a signi cant degree by other market conditions and political circumstances, as well as by laws and regulations rele- vant to Loomis’ operations, even if the services provided can be considered similar to those provided in Segment Europe. The aggregation in Europe is consistent with IFRS 8.12. The purpose of this standard is to provide information that makes it possible to understand and evaluate the environment in which Loomis operates.