Notes: 5
5 Business segment information
112
Ahold Annual Report 2003
Financial Statements
On the ultimate disposal of the assets held for sale the unrecognized accumulated foreign currency translation
adjustments and the unrealized portion of the goodwill previously charged to shareholders' equity, will be recorded
in the statement of operations. As of December 28, 2003, accumulated foreign currency translation adjustments
relating to the assets held for sale, as described above, amounted to EUR 512. Further, per December 28, 2003,
the book value of remaining goodwill in shareholders' equity of the assets held for sale amounted to EUR 255.
The recognition of the accumulated foreign currency translation adjustments and goodwill in the gain or loss
of the divestment will not have an impact on shareholders' equity.
The following presents the condensed statement of cash flows for discontinued operations as described above:
Unaudited
Bompre$o Hipercard G. Barbosa Disco Thailand
2003 2002 2001 2003 2002 2001 2003 2002 2001 2003 2002 2001
Condensed cash flow data
Net cash from operating activities 49 (60) (42) 15 14 - 35 (161) (379) 20 2 15
Net cash from investing activities (31) (319) (175) (2) (200) - (4) (436) (278) (3) (13) (11)
Net cash from financing activities (13) 363 208 (11) 191 - (27) 316 675 (24) 11 (5)
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 2003, Ahold operated
principally in two business areas, retail trade and foodservice. 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), South America (Brazil, Argentina, Chile, Peru,
Paraguay, Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica) and Asia Pacific (Malaysia, Thailand
and Indonesia). The foodservice 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 Food LLC, Landover ("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, South
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 South America, these joint ventures are considered operating segments. Accordingly, the amounts presented
below for the Europe Other and South America segments include amounts relating to these joint ventures, which
are not consolidated in the Company's financial statements. A separate line item is presented for each reportable
segment below to identify the amounts relating to these joint ventures to reconcile the segment totals to the
consolidated amounts for each reportable segment.
The accounting policies used for the segments are the same as the significant accounting policies used for
the consolidated financial statements as described in Note 2. Performance of the segments is evaluated based
on operating income. The Company accounts for intersegment sales and transfers as if the sales or transfers were
to third parties at current market prices. Sales are attributed to countries based on the location of the store or
distribution location.
