Bradken Limited Annual Report 2015 - page 84

49 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
5 Segment information (continued)
(c) Other segment information
(i) Segment revenue
2015
2014
$'000
$'000
Total segment revenue
1,135,438
1,290,646
Intersegment eliminations
(169,577)
(155,406)
Total external segment revenue
965,861
1,135,240
Rental income
366
405
Royalty income
88
251
Sale of scrap
590
380
Commission income
41
19
Other
1,412
1,271
Total revenue from continuing operations (note 6 )
968,358
1,137,566
Segment revenues are allocated based on the country in which the customer is located.
Australia
432,914
548,971
US
269,367
250,824
Other countries
263,580
335,445
Revenue from external customers
965,861
1,135,240
(ii) Gross margin
2015
2014
$'000
$'000
Gross margin
309,893
378,107
Fixed manufacturing overheads and other cost of sale adjustments
(128,020)
(150,435)
Other revenue
2,497
2,326
Other income
29,750
16,416
Selling and technical expenses
(55,982)
(57,136)
Administration expenses
(60,236)
(89,331)
Goodwill and other intangibles impairment
(167,182)
-
Finance costs
(34,096)
(30,662)
Restructuring and asset impairment costs
(106,354)
(41,161)
Share of net profit/(loss) of associates accounted for using the equity method and impairment
(45,110)
(85)
Profit / (loss) before income tax
(254,840)
28,039
The Managing Director assesses the performance of each operating segment based on a measure of gross margin. Gross
margin is considered the most relevant measure of individual segment results as manufacturing plants all make product for the
various segments and transfer product at cost. This measurement basis excludes the allocation of manufacturing variances and
overheads from individual manufacturing plants as any allocation would be arbitrarily based.
A reconciliation of standard gross margin to operating profit before income tax is provided as follows:
Sales between segments under the same tax jurisdiction are made at variable cost and are eliminated on consolidation. Sales
between segments under different tax jurisdictions are carried out at arms length and are eliminated on consolidation.
The revenue from external parties reported to the Managing Director is measured in a manner consistent with that in the income
statement. Segment revenue reconciles to total revenue from continuing operations as follows:
The Group's divisions are managed on a global basis and operate in five main geographical areas, Australia, the home country of
the parent entity, the UK, the US, Canada, China and Other countries. The majority of revenue classified within "Other countries"
relates to Canada, and various European, African, Asian, and South American countries.
1...,74,75,76,77,78,79,80,81,82,83 85,86,87,88,89,90,91,92,93,94,...131
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