7 Business segment information
00 Ahold ANNUAL REPORT 2002 123
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
The following table summarizes the changes in goodwill for Ahold's food service businesses:
Food service
U.S. Europe Total
As of January 2, 2000
Acquisitions
1,404
1,404
Amortization
(5)
(5)
Exchange rate differences
(93)
(93)
As of December 31, 2000
1,306
1,306
Acquisitions
1,615
2
1,617
Purchase accounting adjustments
44
44
Divestments
(2)
(2)
Amortization
(76)
(76)
Exchange rate differences
112
112
As of December 30, 2001
2,999
2
3,001
Acquisitions
78
78
Purchase accounting adjustments
120
120
Divestments
(2)
(2)
Amortization
(154)
(154)
Exchange rate differences
(475)
(475)
As of December 29, 2002
2,568
2,568
In Ahold's food service business, under Dutch GAAP no impairment charge is recognized due to the fact that the goodwill
on the acquisition of USF in 2000, was charged against equity.
Ahold's goodwill, as accounted for under US GAAP, is discussed in Note 31.
Ahold has determined its reportable segments based on its internal reporting practices and how the Company's
management evaluates the performance of its operations and allocates resources. In fiscal 2002, Ahold operated
principally in two business areas, retail trade and food service. In fiscal 2002, the Retail Trade business area operated
in four geographic regions (including the joint ventures): the U.S., Europe (most significantly The Netherlands, Czech
Republic, Slovakia, Poland, Spain, Portugal and Scandinavia), Latin America (Brazil, Argentina, Chile, Peru, Paraguay,
Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica) and Asia Pacific (Malaysia, Thailand and Indonesia).
The food service business operates in the U.S. and Europe (The Netherlands and Belgium).
Within Ahold's business areas and by geographic regions described above, the Company identified various operating
segments. Operating segments that represent more than 10% of the Company's operations, based on net sales, operating
income, or total assets, are considered reportable segments for which separate information is provided. Accordingly, Stop
Shop, Giant-Landover, Albert Heijn and USF are presented as separate reportable segments. Other operating segments that
do not individually represent more than 10% are aggregated and are presented as one reportable segment only if the
segments have similar economic characteristics, and if the segments are similar in a majority of the following areas: the
nature of the products, the customer type and the methods of distribution. These segments are presented as U.S. Other,
Europe Other, Latin America and Asia Pacific. Activities included in the "other activities" category include corporate
overhead cost, the ownership and management of real estate properties and certain insignificant production activities.
Since the Company's management reviews the full financial results of its joint ventures in Portugal, Scandinavia and Latin
America, these joint ventures are considered operating segments. Accordingly, the amounts presented below for the Europe
Other and Latin America segments include amounts relating to these joint ventures, which are not consolidated in the
Company's financial statements. A separate line item is included below to identify the amounts relating to these joint
ventures which reconcile the segment totals to the consolidated amounts for each reportable segment.
