101 24. Segmental reporting a) Operating segments  Mobile Systems Automotive and Industrial Connectivity  Following the provisions of IFRS 8, reportable operating segments are identified based on the “management approach”. The management approach  requires external segment reporting based on the Group’s internal organisational and management structure and on internal financial reporting to the  chief operating decision maker, which considered the Group as being the Board of Management.  The Group reports on three operating segments, which are independently managed by bodies responsible for the respective segments depending on the  nature of products offered. The identification of Company components as operating segments is based in particular on the existence of business unit  managers who report directly to the Board of Management of Dialog and who are responsible for the performance of the segment under their charge.  Following the change in IFRS 8.23, the Group no longer reports assets and liabilities as only inventories are reported to the chief operating decision  maker. Prior-year figures have been adjusted accordingly.  The Group’s operating segments are:  This segment includes our power management and audio chips especially designed to meet the needs of the wireless systems markets and a range of  advanced driver technologies for low power display applications – from PMOLEDs, to electronic paper and MEMS displays. This segment was newly  created in Q1-2012 and includes our former Audio and Power Systems segment and our former Display Systems segment. For further information, see  below.  In the automotive and industrial market our products address the safety, management and control of electronic systems in cars and for industrial  applications.  The activities of this segment include short-range wireless, digital cordless and VoIP technology. The new Connectivity segment includes the operating  segment of our acquired subsidiary SiTel Semiconductor B.V. SiTel which was acquired on 10 February 2011; therefore its results are consolidated from  this date.  2012  2011  Mobile Systems  US$000  Automotive/  Industrial  US$000  Connectivity US$000 Corporate US$000 Total US$000 Mobile Systems US$000 Automotive/  Industrial  US$000  Connectivity  US$000  Corporate 3) US$000 Total US$000 Revenues $^{1)}$  638,765  38,686  96,133 (1) 773,583 370,926 45,878  108,778  1,679 527,261 R&D expenses  96,586  3,613  24,590 3,097 127,886 62,065 4,527  20,012  3,442 90,046 Operating profit  (loss) $^{2)}$  112,244  8,127  (13,144) (16,195) 91,032 59,814 9,844  4,853  (12,878) 61,633 Depreciation/  amortisation  26,268  508  5,515 – 32,291 18,471 1,353  5,007  – 24,831 Inventory  impairment and  fixed asset  disposal losses  8,470  26  740 – 9,236 4,032 661  73  – 4,766 Investments  55,693  1,077  11,692 – 68,462  4) 23,922 1,752  6,484  – 32,158  5) At 31 Dec 2012 At 31 Dec 2011 Inventories  129,121  7,989  14,868  477 152,455 45,801 5,957  10,879  – 62,637 [1] All revenues are from sales to external customers  [2] Certain overhead costs are predominantly allocated based on sales and headcount. The Operating loss of the Corporate Segment results from Holding related expenses, share option and business development costs [3] The revenue in the corporate column include mainly the BenQ settlement please refer to note 27 and sales discounts  [4] Including 35,048 US$000 additions to PPE, 33,512 US$000 additions to intangible assets and -98 US$000 deposits  [5] Including 20,902 US$000 additions to PPE, 11,099 US$000 additions to intangible assets and 157 US$000 deposits 