HEINEKEN N.V. ANNUAL REPORT 2008 (vii) Derivative financial instruments The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is in general estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on inter-bank interest rates). In specific circumstances the fair value has been determined by applying a Black and Scholes option model. The fair value of interest rate swaps is estimated by discounting the difference between cash flows resulting from the contractual interest rates of both legs of the transaction, taking into account current interest rates and the current creditworthiness of the swap counterparties. (viii) Non-derivative financial instruments Fair value, which is determined for disclosure purposes or when fair value hedge accounting is applied, is calculated based on the present value of future principal and interest cash flows, discounted at the market r ite of interest at the reporting date. For finance leases the market rate of interest is determined by ference to similar lease agreements. 5 Segment reporting G rneral S gment information is presented only in respect of geographical segments consistent with Heineken's n anagement and internal reporting structure. Over 80 per cent of the Heineken sales consist of beer. T ie risks and rewards in respect of sales of other beverages do not differ significantly from beer, as such n i business segments are reported. F -ineken operates its business through five regions headed by a regional president. Regional and operating c mpany management are responsible for managing performance, underlying risks and effectiveness of c terations, supported and supervised by Group departments. F ineken has multiple distribution models to deliver goods to end customers. Deliveries are carried out in s me countries via own wholesalers or own pubs, in other markets directly and in some others via third F rties. As such, distribution models are country-specific and, on consolidated level, diverse. Therefore, the r suits and the balance sheet items cannot be split between types of customers on a consolidated basis. The v rious distribution models are also not centrally managed or monitored. Therefore, no secondary segment i ormation is provided. -ographical segments I presenting information on the basis of geographical segments, segment revenue is based on the ographical location of customers. Export revenue and results are also allocated to the regions. Most of t e production facilities are located in Europe. Sales to the other regions are charged at transfer prices with urcharge for cost of capital. Segment assets are based on the geographical location of the assets. I ineken distinguishes the following geographical segments: Western Europe Central and Eastern Europe The Americas Africa and the Middle East Asia Pacific Head Office/eliminations.

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