Note 5
Financial statements - Notes to the consolidated financial statements
5 SEGMENT REPORTING
Ahold operates in two business areas (retail and foodservice) that contain nine business segments, which is the primary format
for segment reporting. In addition, Ahold's Group Support Office is presented as a separate segment.
In 2005, Ahold revised its primary format for segment reporting as a result of the impact of its divestment program on its
organizational structure. Ahold transferred its joint venture ICA and associate Jerónimo Martins Retail ("JMR") from Other
Europe to Rest of World and, subsequently, renamed those segments Schuitema and Other retail, respectively. Prior period
segment information presented for comparative purposes is adjusted accordingly.
Business segment
1 Significant operations included in the business segment
Retail
Stop Shop/Giant-Landover Arena
Stop Shop, Giant-Landover and Peapod
Giant-Carlisle/Tops Arena
Giant-Carlisle and Tops
BI-LO/Bruno's Arena
BI-LO and Bruno's 1
Albert Heijn Arena
Albert Heijn, Etos, Gall Gall and Ahold Coffee Company
Central Europe Arena
Czech Republic, Poland and Slovakia
Schuitema
Schuitema (73.2%)
Other retail
Spain 2, Asia 3, South America 4 and the unconsolidated joint ventures and
associates ICA (60%) 5, JMR (49%), Bodegas Williams Humbert S.A. ("W&H")
(formerly known as Luis Paez) (50%) 6 and Paiz Ahold S.A. (50%) 7
Foodservice
U.S. Foodservice
U.S. Foodservice
Deli XL
Deli XL 8
Group Support Office ("GSO")
Corporate Staff (the Netherlands, Switzerland and the U.S.)
1 Ahold sold BI-LO and Bruno's in January 2005.
2 Ahold sold its Spanish operations in December 2004.
3 Ahold sold the last of its operations in Asia in March 2004.
4 Ahold sold the last of its operations in South America in April 2005, except that its transfer of the remaining approximately 15% of the shares of
Disco has not yet been completed.
5 Ahold increased its stake in ICA from 50% to 60% effective November 5, 2004.
6 Ahold completed the sale of its 50% interest in W&H in May 2005.
7 Ahold completed the sale of its 50% interest in Paiz Ahold in September 2005. Paiz Ahold held a 66.7% stake in CARHCO N.V. ("CARHCO").
8 Ahold completed the sale of Deli XL in September 2005.
Ahold operates in three main geographical regions, identified on the basis of the location of the customers, which is the
secondary format for segment reporting:
Geographical segment
1 Significant operations included in the geographical segment
U.S.
Stop Shop, Giant-Landover, Peapod, Giant-Carlisle, Tops, BI-LO 1 Bruno's
U.S. Foodservice and Corporate Staff (U.S.)
Europe
Albert Heijn, Etos, Gall Gall, Ahold Coffee Company, Deli XL Czech Republic,
Poland, Slovakia, Schuitema, Spain Corporate Staff (the Netherlands and
Switzerland) and the unconsolidated joint ventures and associates ICA (60%),
JMR (49%) and W&H (50%) 1
Other
Asia South America 1 and Paiz Ahold S.A. 1
1 Divested, to the extent discussed above.
The accounting policies used for the segments are the same as the accounting policies used for the consolidated financial
statements as described in Note 3. Consequently, net sales and operating income from joint ventures, associates and
discontinued operations are not included in the segmented financial information, since these are not included in the
consolidated net sales and operating income of Ahold. See Notes 12 and 18 for additional disclosures.
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