New organization
As of January 1, 2012, the Volvo Group introduced a new functional organization which better utilizes the global potential of the Group’s brands and products and a new financial framework to reflect the changes in the organization. The re-organization and the new framework impacts to some extent how revenues and expenses are reported in the income statement and between the different reportable segments.

In the new organization from January 1, 2012, the Trucks operations have been structured according to a functional approach, whereby the entire Trucks business is managed as one single business area consisting of five different functional organizations: Group Trucks Sales & Marketing EMEA (Europe, Middle East, Africa), Group Trucks Sales & Marketing Americas, Group Trucks Sales & Marketing APAC (Asia Pacific), Group Trucks Operations and Group Trucks Technology. In addition, a separate unit for Truck Joint Ventures is included in business area Trucks. Business areas Buses, Construction Equipment, Volvo Penta and Customer Finance remain as separate business areas. Governmental Sales and Volvo Rents are treated as separate business areas in the new organization. The Volvo Group is thereby organized in seven business areas after the divestment of Volvo Aero in October 2012. As from October 1, 2012 the separate unit Truck Joint Ventures is included in Group Truck Sales & Marketing APAC. As a result of this change, Group Truck Sales & Marketing APAC is renamed Group Trucks Sales & Marketing and JV’s APAC.

Former business units Volvo Powertrain, Volvo 3P, Volvo Logistics and Volvo Parts are included in business area Trucks from 2012. The costs of these operations are shared between the different business areas based on utilization according to the principles of the new financial framework. As from January 1, 2012 Volvo IT, Group Business Services and Volvo Real Estate are treated as business support functions and costs of operations are shared by the business areas based on utilization according to the principles of the financial framework. As from January 1, 2013, Volvo Real Estate is included in Group Business Services.

The segment information for 2011 have been restated due to the new organization.

Read more about the impact on segment reporting 2011 due to the new organization in note 32.

 2012 Trucks Construction Equipment Buses Volvo Penta Volvo Aero Group functions and other incl. elim.   Industrial Operations   Customer Finance Elimi-
mination
Volvo Group
Net sales, external customers 190,247 62,449 19,646 7,470 5,219 9,485   294,516   9,131 - 303,647
Net sales, internal 2,036 1,109 649 161 - (2,440)   1,515   652 (2,167) 0
Net sales  192,283 63,558 20,295 7,631 5,219 7,045   296,031   9,783 (2,167) 303,647
                         
Expenses  (182,079) (57,785) (20,253) (7,090) (4,452) (8,220)   (279,878)   (8,291) 2,167 (286,002)
Income from investments in associated companies 12 - 9 - - (43)   (23)   - - (23)
Operating income 10,216 5,773 51 541 767 (1,218)   16,130   1,492 0 17,622
                         
Interest income and similar credits               510   - - 510
Interest expense and simliar charges               (2,476)   - - (2,476)
Other financial income and expense               (301)   - - (301)
Income after financial items               13,863   1,492 0 15,355
                         
                         
Other segment information                        
Depreciation and amortization (8,359) (1,751) (354) (309) - (1,214)   (11,987)   (2,768) - (14,755)
Restructuring costs (1,343) (13) (107) (17) - (29)   (1,509)   (15) - (1,524)
Gains/losses from divestments - 28 - - - 568   596   - - 596
                         
Capital expenditure 11,228 1,712 315 171 0 5,232   18,658   6,544 (76) 25,126
Investments in associated companies (the equity method) 209 - 71 - - 1,765   -   - - 2,045
 2011 Trucks Construction Equipment Buses Volvo Penta Volvo Aero Group functions and other incl. elim.   Industrial Operations   Customer Finance Elimi-
mination
Volvo Group
Net sales, external customers 196,999 62,894 21,297 8,318 6,356 5,958   301,822   8,545 - 310,367
Net sales, internal 1,921 606 526 140 0 (1,426)   1,767   337 (2,104) 0
Net sales  198,920 63,500 21,823 8,458 6,356 4,532   303,589   8,882 (2,104) 310,367
                         
Expenses  (180,703) (56,688) (20,722) (7,633) (5,996) (5,835)   (277,577)   (7,913) 2,104 (283,386)
Income from investments in associated companies 10 - 13 - 0 (105)   (82)   0 0 (82)
Operating income 18,227 6,812 1,114 825 360 (1,408)   25,930   969 0 26,899
                         
Interest income and similar credits               644   - (37) 608
Interest expense and simliar charges               (2,912)   - 37 (2,875)
Other financial income and expense               297   - - 297
Income after financial items               23,959   969 0 24,929
                         
                         
Other segment information                        
Depreciation and amortization (8,531) (1,903) (472) (474) (504) 464   (11,419)   (2,572)   (13,992)
Restructuring costs (22) (10) (5) (2) 0 (49)   (88)   (6) 0 (94)
Gains/losses from divestments - - - - - (19)   (19)   - - (19)
                         
Capital expenditure 9,138 2,231 367 332 797 1,293   14,159   6,112 (52) 20,220
Investments in associated companies (the equity method) 228 - 23 - 1 432   -   0 - 684
Assets held for sale (total assets)           9,348   9,348       9,348
Assets held for sale (total liabilities) - - - - - (4,716)   (4,716)   - - (4,716)
Internal sales between segments 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 price.
Reporting by market            
    Net sales   Non-current assets 1)
    2012 2011   2012 2011
Europe   111,606 120,828   71,350 65,522
  of which Sweden   12,133 14,108   28,245 26,315
  of which France   24,273 27,061   17,207 15,214
North America   71,101 60,560   23,908 19,999
  of which USA   56,441 46,984   19,923 16,288
South America   29,164 35,142   1,872 1,447
  of which Brazil   18,662 26,056   1,515 1,166
Asia   69,278 73,586   26,271 30,018
  of which China   19,990 22,952   2,265 2,194
  of which Japan   18,987 17,865   17,992 22,472
Other markets   22,498 20,251   998 982
Total   303,647 310,367   124,399 117,968

1) Non-current assets include intangible and tangible assets.

The reporting of net sales by market is based on where the customers are located.