Reporting by product area
The Volvo Group's operations are, until year end 2011, 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 based on the degree to which individual 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.

As from January 1, 2012, the Volvo Group has a new organizational structure. The business will continue to be divided in six segments under the new organization. The organizational change may however result in some shifts between the segments.

Net sales 2011 2010
Trucks 200,703 167,305
Construction Equipment 64,987 53,810
Buses 22,289 20,516
Volvo Penta 8,859 8,716
Volvo Aero 6,509 7,708
Other and eliminations 242 (680)
Industrial Operations 303,589 257,375
     
Customer Finance 8,883 9,031
Reclassifications and eliminations (2,104) (1,657)
Volvo Group 310,367 264,749
The above sales figures include internal sales in the following amounts:
Net sales to Group companies 2011 2010
Trucks 1,921 1,421
Construction Equipment 606 347
Buses 526 490
Volvo Penta 140 129
Volvo Aero 1 21
Other and eliminations (1,426) (984)
Industrial Operations 1,769 1,424
     
Customer Finance 337 231
Eliminations (2,106) (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 2011 2010
Trucks 18,260 10,112
Construction Equipment 6,653 6,180
Buses 1,036 780
Volvo Penta 781 578
Volvo Aero 336 286
Other (1,109) (102)
Industrial Operations 25,957 17,834
     
Customer Finance 942 167
Volvo Group 26,899 18,000
Depreciation and amortization 2011 2010
Trucks 8,531 8,721
Construction Equipment 1,903 1,975
Buses 472 464
Volvo Penta 474 453
Volvo Aero 504 436
Other (464) (710)
Industrial Operations 11,419 11,338
     
Customer Finance  2,572 2,454
Volvo Group total(1 13,992 13,792

1) Of which write-down 102 (33).

Research and development expenses 2011 2010
Trucks 8,627 9,230
Construction Equipment 2,556 1,972
Buses 1,052 882
Volvo Penta 692 670
Volvo Aero 275 156
Other 74 60
Volvo Group total 13,276 12,970
     
Income from investments in associated companies 2011 2010
Trucks 10 8
Construction Equipment
Buses 13 15
Volvo Penta
Volvo Aero 0 0
Other (105) (109)
Industrial Operations (82) (86)
     
Customer Finance 0 0
Volvo Group total (82) (86)
     
Total assets 2011 2010
Operating assets, Industrial Operations(1:    
Trucks 126,617 114,169
Construction Equipment 47,742 43,309
Buses 11,905 11,565
Volvo Penta 5,026 4,870
Volvo Aero - 9,881
Non-interest bearing assets held for sale 9,344 136
Other 7,831 2,051
Total operating assets Industrial Operations 208,464 185,981
     
Interest-bearing financial assets 42,689 42,645
Tax receivables 13,632 13,064
Total assets in Customer Finance 99,147 89,246
Other and eliminations (10,689) (12,929)
Volvo Group total 353,244 318,007

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

Total shareholders' equity and liabilities 2011 2010
Operating liabilities, Industrial Operations(1:    
Trucks 80,031 69,039
Construction Equipment 22,494 18,697
Buses 8,213 7,762
Volvo Penta 2,575 2,519
Volvo Aero - 3,517
Non interest-bearing liabilities held for sale 4,710 135
Other 1,586 1,259
Total operating liabilities Industrial Operations 119,609 102,928
     
Financial liabilities 62,037 67,335
Tax liabilities 6,515 4,702
Total liabilities in Customer Finance 90,148 81,226
Other and eliminations (10,747) (12,305)
Total liabilities 267,563 243,886
     
Shareholders' equity 85,681 74,121
Volvo Group total 353,244 318,007
1) Defined as total liabilities less shareholders' equity, financial liabilities and tax liabilities. 
Investments in associated companies 2011 2010
Trucks 228 241
Construction Equipment -
Buses 23 46
Volvo Penta -
Volvo Aero 1 1
Customer Finance 0 18
Other 432 378
Volvo Group total 684 684
Capital expenditures 2011 2010
Trucks 9,138 7,650
Construction Equipment 2,231 1,555
Buses 367 343
Volvo Penta 332 331
Volvo Aero 797 734
Other 1,293 30
Industrial Operations 14,159 10,643
     
Customer Finance 6,112 4,600
Eliminations (52) (38)
Volvo Group total 20,220 15,205
 
Reporting by market    
     
Net sales 2011 2010
Europe 120,828 102,947
North America 60,560 47,922
South America 35,142 29,013
Asia 73,586 65,487
Other markets 20,251 19,380
Volvo Group total* 310,367 264,749
     
*of which:    
Sweden 14,108 12,463
United States 46,984 35,752
France 27,061 24,457
Total assets 2011 2010
Sweden 80,584 73,806
Europe excluding Sweden 93,411 86,645
North America 60,948 53,683
South America 25,521 23,442
Asia 84,913 72,481
Other markets 7,868 7,950
Volvo Group total 353,244 318,007
Capital expenditures 2011 2010
Sweden 5,670 3,323
Europe excluding Sweden 7,639 6,733
North America 3,427 2,039
South America 478 292
Asia 2,953 2,707
Other markets 53 111
Volvo Group total 20,220 15,205