Other operating income and 3 31 8 10 221 Depreciation and

Other operating income and 3 31 8 10 221 depreciation

This preview shows page 56 - 58 out of 68 pages.

Other operating income and expenses (15) (154) (3) (31) (8) (10) - (221) Depreciation and amortization expense (132) (641) (183) (199) (366) (42) - (1,563) Impairment expense (15) (96) (1) - (5) (19) - (136) Intangible assets and goodwill (b) 4,900 7,207 1,231 5,850 3,560 946 - 23,694 Property, plant and equipment 2,484 2,125 525 501 1,550 3,972 - 11,157 Inventories 4,795 1,566 447 1,361 1,909 230 (212) 10,096 Other operating assets 1,392 874 782 731 761 920 7,194 (c) 12,654 Total assets 13,571 11,772 2,985 8,443 7,780 6,068 6,982 57,601 Equity - - - - - - 25,799 25,799 Liabilities 1,426 2,451 1,400 922 2,425 1,131 22,047 (d) 31,802 Total liabilities and equity 1,426 2,451 1,400 922 2,425 1,131 47,846 57,601 Operating investments (e) (233) (553) (229) (204) (399) (337) - (1,955) The Group’s brands and trade names are organized into six business groups. Four business groups – Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics and Watches and Jewelry – comprise brands dealing with the same category of products that use similar production and distribution processes. The Selective Retailing business comprises the Group’s own-label retailing activities. Other activities and holding companies comprise brands and businesses that are not associated with any of the above mentioned business groups, most often relating to the Group’s new businesses and holding or real estate companies. 23. SEGMENT INFORMATION The Group, mainly through its Watches and Jewelry business group, may be exposed to changes in the prices of certain precious metals, such as gold. In certain cases, in order to ensure visibility with regard to production costs, hedges may be implemented. This is achieved either by negotiating the forecast price of future deliveries of alloys with precious metal refiners, or the price of semi-finished products with producers; or directly by purchasing hedges from top-ranking banks. In the latter case, gold may be purchased from banks, or future and/or options contracts may be taken out with a physical delivery of the gold. Derivatives outstanding relating to the hedging of precious metal prices as of December 31, 2015 have a negative market value of 2 million euros. Considering nominal values of 145 million euros for those derivatives, a uniform 1% change in their underlying assets’ prices as of December 31, 2015 would have a net impact on the Group’s consolidated reserves in an amount of less than 1.5 million euros. These instruments mature in 2016. 54 Financial Documents - December 31, 2015 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Selected notes to the consolidated financial statements
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Fiscal year 2014 (EUR millions) Wines and Fashion and Perfumes Watches Selective Other and Eliminations Total Spirits Leather and and Retailing holding and not Goods Cosmetics Jewelry companies allocated (a) Sales outside the Group 3,945 10,796 3,368 2,720 9,511 298 - 30,638 Intra-Group sales 28 32 548 62 23 14 (707) - Total revenue 3,973 10,828 3,916 2,782 9,534 312 (707) 30,638 Profit from recurring operations 1,147 3,189 415 283 882 (162) (39) 5,715 Other operating income and expenses (34) (110) (14) 1 (74) (53) - (284) Depreciation and amortization expense (119) (555) (149) (171) (296) (41) - (1,331) Impairment expense (22) (71) (9) (1) (85) (34) - (222) Intangible assets and goodwill (b) 3,758 7,242 1,183 5,635 3,161 862 - 21,841 Property, plant and equipment 2,339 2,165 477 425 1,415 3,566 - 10,387 Inventories 4,567 1,561 398 1,244 1,668 239 (202) 9,475 Other operating assets 1,340 781 664 635 668 608 6,963 (c) 11,659 Total assets 12,004 11,749 2,722 7,939 6,912 5,275 6,761 53,362 Equity - - - - - - 23,003 23,003 Liabilities 1,461 2,265 1,325 743 2,053 932 21,580 (d) 30,359 Total liabilities and equity 1,461 2,265 1,325 743
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