Reporting by product area
The Volvo Group's operations are organized in nine business areas: Volvo Trucks, Renault Trucks, North American Trucks, Trucks Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Customer Finance. In addition to the nine business areas, there are other operations consisting mainly of business units that are designed to support the business areas' operations. The business units include Volvo Powertrain, Volvo 3P, Volvo IT, Volvo Logistics and Volvo Parts. As the four truck brands share product development, production and other activities in business units such as Volvo 3P and Volvo Powertrain and also share certain infrastructure in distribution such as dealers, the four truck brands are reported as one aggregated business segment. The Volvo Group is thus reported divided in six segments in which net sales and operating income are reported for each product area.

Each business area, except for Customer Finance, has total responsibility for its operating income, operating capital and operating cash flow. Volvo Financial Services within Customer Finance has responsibility for its net income and total balance sheet within certain restrictions and principles that are established centrally. The supervision and coordination of treasury and tax matters is organized centrally to obtain the benefits of a Group-wide approach. The legal structure of the Volvo Group is based on optimal handling of treasury, tax and administrative matters and, accordingly, differs from the operating structure.

The business units are designated to support the business areas and are therefore not reportable business segments. The results from the synergies created in the business units are transferred back to the various product areas. The allocation is based on the degree to which individual product areas have utilized the services of the business units. The heading Other contains mainly earnings linked to corporate functions including the Group's treasury operations. The Group’s real estate, held in Volvo Group Real Estate, is reported under industrial operations, and earnings are transferred back to the business areas.

Reported segment information is based on the information used internally by the chief operating decision maker, which in Volvo is the Volvo Group Executive Committee.

Net sales 2009 2010
Trucks 138,940 167,305
Construction Equipment 35,658 53,810
Buses 18,465 20,516
Volvo Penta 8,159 8,716
Volvo Aero 7,803 7,708
Other and eliminations (538) (680)
Industrial Operations 208,487 257,375
     
Customer Finance 11,712 9,031
Reclassifications and eliminations (1,838) (1,657)
Volvo Group 218,361 264,749
The above sales figures include internal sales in the following amounts:
Net sales to Group companies 2009 2010
Trucks 1,558 1,421
Construction Equipment 234 347
Buses 461 490
Volvo Penta 87 129
Volvo Aero 37 21
Other and eliminations (782) (984)
Industrial Operations 1,595 1,424
     
Customer Finance 243 231
Eliminations (1,838) (1,655)
Volvo Group 0 0

Internal sales between business areas are generally made at standard cost of sales, including calculated interest and product improvement expenses. Internal sales from service companies are generally made at market prices.

Operating income 2009 2010
Trucks (10,805) 10,112
Construction Equipment (4,005) 6,180
Buses (350) 780
Volvo Penta (230) 578
Volvo Aero 50 286
Other (994) (102)
Industrial Operations (16,333) 17,834
     
Customer Finance (680) 167
Volvo Group (17,013) 18,000
Depreciation and amortization 2009 2010
Trucks 9,618 8,721
Construction Equipment 2,036 1,975
Buses 555 464
Volvo Penta 515 453
Volvo Aero 435 436
Other (777) (710)
Industrial Operations 12,382 11,338
     
Customer Finance  2,845 2,454
Volvo Group total (1 15,227 13,792

1) Of which write-down 33 (221).

Research and development expenses 2009 2010
Trucks 9,525 9,230
Construction Equipment 1,982 1,972
Buses 918 882
Volvo Penta 665 670
Volvo Aero 170 156
Other (67) 60
Volvo Group total 13,193 12,970
     
Income from investments in associated companies 2009 2010
Trucks (22) 8
Construction Equipment 0 0
Buses 12 15
Volvo Penta 0 0
Volvo Aero 0 0
Other (5) (109)
Industrial Operations (15) (86)
     
Customer Finance 1 0
Volvo Group total (14) (86)
     
Total assets 2009 2010
Operating assets, Industrial Operations (1:    
Trucks 112,157 114,305
Construction Equipment 40,454 43,309
Buses 12,462 11,565
Volvo Penta 5,444 4,870
Volvo Aero 11,326 9,881
Other 936 2,051
Total operating assets Industrial Operations 182,779 185,981
     
Interest-bearing financial assets 45,422 42,645
Tax receivables 13,639 13,064
Total assets in Customer Finance 98,772 89,246
Other and eliminations (8,347) (12,929)
Volvo Group total 332,265 318,007
     

1) Defined as total assets less interest-bearing financial assets and tax receivables.

Total shareholders' equity and liabilities 2009 2010
Operating liabilities, Industrial Operations (1:    
Trucks 62,003 69,174
Construction Equipment 14,756 18,697
Buses 7,572 7,762
Volvo Penta 2,967 2,519
Volvo Aero 4,152 3,517
Other 400 1,259
Total operating liabilities Industrial Operations 91,850 102,928
     
Financial liabilities 86,911 67,335
Tax liabilities 2,861 4,702
Total liabilities in Customer Finance 90,223 81,226
Other and eliminations (6,614) (12,305)
Total liabilities 265,231 243,886
     
Shareholders' equity 67,034 74,121
Volvo Group total 332,265 318,007
1) Defined as total liabilities less shareholders' equity, financial liabilities and tax liabilities. 
Investments in associated companies 2009 2010
Trucks 217 241
Construction Equipment
Buses 51 46
Volvo Penta
Volvo Aero 1 1
Customer Finance 19 18
Other 300 378
Volvo Group total 588 684
Capital expenditures 2009 2010
Trucks 7,272 7,650
Construction Equipment 1,307 1,555
Buses 639 343
Volvo Penta 687 331
Volvo Aero 533 734
Other 104 30
Industrial Operations 10,542 10,643
     
Customer Finance 4,102 4,600
Eliminations (71) (38)
Volvo Group total 14,573 15,205
 
Reporting by market    
     
Net sales 2009 2010
Europe 99,518 102,947
North America 40,223 47,922
South America 17,613 29,013
Asia 45,273 65,487
Other markets 15,734 19,380
Volvo Group total* 218,361 264,749
     
*of which:    
Sweden 10,412 12,463
United States 31,243 35,752
France 25,344 24,457
Total assets 2009 2010
Sweden 77,528 73,806
Europe excluding Sweden 105,265 86,645
North America 60,223 53,683
South America 20,322 23,442
Asia 60,286 72,481
Other markets 8,641 7,950
Volvo Group total 332,265 318,007
Capital expenditures 2009 2010
Sweden 3,924 3,323
Europe excluding Sweden 6,135 6,733
North America 2,622 2,039
South America 97 292
Asia 1,574 2,707
Other markets 221 111
Volvo Group total 14,573 15,205