Page 23 - Kitron Annual Report 2011

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Notes to the consolidated financial statements
The corporate management is the Group’s chief operating decision maker. The Group’s operating segments are based
on the reporting the corporate management is steering by when it assigns resources and evaluates profitability.
The Corporate Management has evaluated, on the basis of internal reporting to the chief operating decision
maker that the Group operates in one segment, electronics manufacturing services (EMS). The income comes
from sales of goods and services in the fields of development, industrialization and production to customers
involved in Defence/Aerospace, Energy/Telecoms, Industry, Medical equipment and Offshore/Marine. No oper-
ating segments have been aggregated to form this operating segment on which it is reported.
The corporate management assesses the results of the segment based on revenue and EBIT.
Sales by lines of business
The table shows the EMS turnover by industry:
(Amounts in NOK 1000)
2011
2010
Defence/Aerospace
331 620
353 433
Energy/Telecoms
265 498
396 152
Industry
415 336
302 938
Medical equipment
466 953
504 123
Offshore/Marine
176 691
87 302
Total sales revenues
1 656 098
1 643 948
Note 5 Segment information
Pension benefits
The present value of the pension obligations depends on
a number of factors that are determined on an actuarial
basis using a number of assumptions. The assumptions
used in determining the net cost (income) for pensions
include the discount rate. Any changes in these as-
sumptions will impact the carrying amount of pension
obligations. The group determines the appropriate
discount rate at the end of each year. This is the inter-
est rate that should be used to determine the present
value of estimated future cash outflows expected to be
required to settle the pension obligations. In determining
the appropriate discount rate, the group considers the
interest rates of high-quality corporate bonds that are
denominated in the currency in which the benefits will be
paid, and that have terms to maturity approximating the
terms of the related pension liability. Other key assump-
tions for pension obligations are based in part on current
market conditions. Additional information is disclosed in
note 23.
Deferred tax assets
The group performs annual tests for impairment of
deferred tax assets. Part of the basis for recognis-
ing deferred tax assets is based on applying the loss
carried forward against future taxable income in the
group. This requires the use of estimates for calculat-
ing future taxable income.