5 Segment reporting
General
Segment information is presented only in respect of geographical segments consistent with Heineken's
management and internal reporting structure. Over 80 per cent of the Heineken sales consist of beer.
The risks and rewards in respect of sales of other beverages do not differ significantly from beer, as
such no business segments are reported.
Inter-segment pricing is determined on an arm's-length basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated result items comprise net finance expenses
and income tax expense. Unallocated assets comprise current other investments and cash call
deposits.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, goodwill and other intangible assets.
Ge ographical segments
In presenting information on the basis of geographical segments, segment revenue is based on the
geographical location of customers. Export revenue and results are also allocated to the regions. Most
of the production facilities are located in Europe. Sales to the other regions are charged at transfer
pi ces with a surcharge for cost of capital. Segment assets are based on the geographical location
of the assets.
In 2005 Head Office revenue and expenses were included in Western Europe but are presented this
y« ar separately together with eliminations. Prior-year figures have been restated.
H< neken distinguishes the following geographical segments:
Western Europe
Central and Eastern Europe
The Americas
Africa and the Middle East
Asia Pacific
fead Office/eliminations
Heineken N.V. Q C
Annual Report 2006 OO