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Financial Footnotes and supplementary data
Exhibit 9. Excerpt from Notes to the Consolidated Financial Statements of the Volkswagen Group for Fiscal Year Ended 31 December 2009: Selected Data on Operating Segments (€ millions)
2008Passenger Cars and Light
Commercial Vehicles
Financial Services
Total Segments
Sales revenue from external customers98,7103,86510,193112,768
Segment profit or loss6,4314178937,741
Segment assets91,45810,07474,690176,222
2009Passenger Cars and Light
Commercial Vehicles
Financial Services
Total Segments
Sales revenue from external customers86,2976,38511,095103,777
Segment profit or loss2,0202366062,862
Segment assets87,7869,51276,431173,729

An analyst uses a significant amount of judgment in deciding how to incorporate information from note disclosures into the analysis. For example, such information as financial instrument risk, contingencies, and legal proceedings can alert an analyst to risks that can affect a company’s financial position and performance in the future and that require monitoring over time. As another example, information about a company’s operating segments can be useful as a means of quickly understanding what a company does and how and where it earns money. The operating segment data shown in Exhibit 9 appear in the notes to the financial statements for Volkswagen. (The totals of the segment data do not equal the amounts reported in the company’s financial statements because the financial statement data are adjusted for intersegment activities and unallocated items. The note provides a complete reconciliation of the segment data to the reported data.) From the data in Exhibit 9, an analyst can quickly see that most of the company’s revenues and operating profits come from the sale of passenger cars and light commercial vehicles. Over 80 percent of the company’s revenues was generated by this segment in both years. In 2008, this segment accounted for over 80 percent of the company’s total segment operating profits, although the percentage declined to 70 percent in 2009 because of higher sales growth in the other two segments. Experience using the disclosures of a company and its competitors typically enhances an analyst’s judgment about the relative importance of different disclosures and the ways in which they can be helpful.

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