Annual report 2010 » United by excellence

Segment reporting by operating segment

Detailed explanatory comments on the information disclosed for the operating segments is provided in the following tables and in Part V. of these notes (Segment Information), together with information on major customers, and an analysis by geographical area.

Intersegment sales are transacted on an arm’s-length basis at normal market transfer prices – no different from those employed in transactions with external third parties.

In 2009, MTU Maintenance Canada Ltd., Richmond, Canada, operating under contract to Chromalloy Gas Turbine LLC, made a successful bid for a major U.S. Air Force contract for maintenance of its KC-10 tanker fleet. This contract ensures a profitable future for MTU Maintenance Canada. The carrying amounts of the intangible assets and property, plant and equipment for which impairment losses were recognized in the financial years 2005 - 2007 were reassessed in the light of the company’s improved situation, and compared with the respective recoverable amounts. For certain items of property, plant and equipment, the recoverable amount exceeded the carrying amount, necessitating an impairment loss reversal in the financial year 2009 amounting to € 1.1 million to increase the carrying amount accordingly. In the financial year 2010, no impairment losses were recognized on intangible assets, financial assets, or property, plant and equipment.

Information on the components of these assets is provided in Part V. (Segment Information).

Approximately 60% of MTU’s revenues (2009: approximately 60%) are attributable to nine major customers (2009: nine customers). Four of these customers each separately account for more than 10% of total group revenues.



Approximately 57% of MTU’s revenues are generated from business with customers in North America (2009: 53?% from business with customers in North America).

Approximately 88% (2009: approximately 81%) of the capital expenditure on intangible assets and on property, plant and equipment relates to expenditure by group companies in Germany.

The non-current assets comprise intangible assets, property, plant and equipment, financial assets, other non-current assets, and deferred tax assets.