2. Segment Information

As outlined in note 1, the Group reports across the following six operating segments: Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products and Asia. The segments reflect the Group’s organisational structure in 2018 and the nature of the financial information reported to and assessed by the Group Chief Executive and Finance Director, who are together determined to fulfil the role of Chief Operating Decision Maker (as defined in IFRS 8). Effective 1 January 2019 the Group implemented a simplified new structure reducing its operating segments from six to three: Europe Materials (formerly Europe Heavyside), Americas Materials and a new Building Products segment. The Building Products segment brings together our Europe Lightside, Europe Distribution and Americas Products segments.

The principal factors employed in the identification of the six segments reflected in this note include:

•

the Group’s organisational structure in 2018 (during 2018 each divisional President fulfilled the role of “segment manager” as outlined in IFRS 8, with the President of Europe Lightside and Distribution acting as “segment manager” for each of the Europe Lightside and Europe Distribution segments respectively);

•

the nature of the reporting lines to the Chief Operating Decision Maker (as defined in IFRS 8);

•

the structure of internal reporting documentation such as management accounts and budgets; and

•

the degree of homogeneity of products, services and geographical areas within each of the segments from which revenue is derived

The Chief Operating Decision Maker monitors the operating results of segments separately in order to allocate resources between segments and to assess performance. Segment performance is predominantly evaluated based on operating profit. As performance is also evaluated using operating profit before depreciation, amortisation and impairment (EBITDA (as defined)*), supplemental information based on EBITDA (as defined)* is provided overleaf. Given that net finance costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for the purposes of the information presented to the Chief Operating Decision Maker and are accordingly omitted from the detailed segmental analysis overleaf. There are no asymmetrical allocations to reporting segments which would require disclosure.


* EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group’s share of equity accounted investments’ profit after tax.

A. Operating segments disclosures - Consolidated Income Statement data


	Year ended 31 December
			Revenue				Group EBITDA (as defined)*						Depreciation, amortisation and impairment						Group operating profit
	2018 €m		2017 €m		2016 €m		2018 €m		2017 €m		2016 €m		2018 €m		2017 €m		2016 €m		2018 €m		2017 €m		2016 €m
Continuing operations
Europe Heavyside		7,611		6,902		6,945		911		839		781		410		361		395		501		478		386
Europe Lightside		1,508		1,440		1,392		152		143		137		42		41		45		110		102		92
Europe Distribution		3,856		4,145		4,066		181		269		206		69		62		76		112		207		130
Europe		12,975		12,487		12,403		1,244		1,251		1,124		521		464		516		723		787		608

Americas Materials		8,951		7,970		7,598		1,493		1,270		1,204		484		412		386		1,009		858		818
Americas Products		4,433		4,327		4,280		603		573		543		144		138		132		459		435		411
Americas		13,384		12,297		11,878		2,096		1,843		1,747		628		550		518		1,468		1,293		1,229

Asia		431		436		508		25		52		109		39		37		38		(14)		15		71

Total Group from continuing operations		26,790		25,220		24,789		3,365		3,146		2,980		1,188		1,051		1,072		2,177		2,095		1,908

Discontinued operations
Americas Distribution		7		2,343		2,315		(5)		164		150		-		21		31		(5)		143		119

Total Group		26,797		27,563		27,104		3,360		3,310		3,130		1,188		1,072		1,103		2,172		2,238		2,027

Group operating profit from continuing operations																				2,177		2,095		1,908
(Loss)/profit on disposals (i)																				(24)		56		53
Finance costs less income																				(305)		(289)		(317)
Other financial expense																				(46)		(60)		(66)
Share of equity accounted investments’ profit (ii)																				60		65		42
Profit before tax from continuing operations																				1,862		1,867		1,620


	(i) (Loss)/profit on disposals (note 6)				(ii) Share of equity accounted investments’ profit/(loss) (note 11)
Europe Heavyside		7	19	24		13	9	12
Europe Lightside		(33)	-	1		-	-	-
Europe Distribution		(9)	4	13		17	15	13
Europe		(35)	23	38		30	24	25

Americas Materials		44	29	(19)		25	32	34
Americas Products		(33)	4	34		-	-	-
Americas		11	33	15		25	32	34

Asia		-	-	-		5	9	(17)

Total Group		(24)	56	53		60	65	42


		* EBITDA is defined as earnings before interest, taxes, depreciation, amortisation, asset impairment charges, profit on disposals and the Group’s share of equity accounted investments’ profit after tax.

B. Operating segments disclosures - Consolidated Balance Sheet data


	As at 31 December
	Total assets				Total liabilities
	2018 €m		2017 €m		2018 €m		2017 €m
Europe Heavyside		9,042		8,932		2,599		2,641
Europe Lightside		1,079		1,100		287		302
Europe Distribution		1,720		2,178		478		563
Europe		11,841		12,210		3,364		3,506

Americas Materials		13,798		9,180		2,063		1,628
Americas Products		4,404		4,017		977		895
Americas		18,202		13,197		3,040		2,523

Asia		1,467		1,402		188		172

Total Group		31,510		26,809		6,592		6,201

Reconciliation to total assets as reported in the Consolidated Balance Sheet:
Investments accounted for using the equity method		1,163		1,248
Other financial assets		23		25
Derivative financial instruments (current and non-current)		45		64
Income tax assets (current and deferred)		86		260
Cash and cash equivalents		2,346		2,115
Assets held for sale		-		1,112
Total assets as reported in the Consolidated Balance Sheet		35,173		31,633

Reconciliation to total liabilities as reported in the Consolidated Balance Sheet:
Interest-bearing loans and borrowings (current and non-current)						9,316		7,976
Derivative financial instruments (current and non-current)						59		14
Income tax liabilities (current and deferred)						2,652		2,124
Liabilities associated with assets classified as held for sale						-		341
Total liabilities as reported in the Consolidated Balance Sheet						18,619		16,656

C. Operating segments disclosures - other items

Additions to non-current assets


	Year ended 31 December
	Property, plant and equipment (note 15)						Financial assets (note 17)						Total Group
	2018 €m		2017 €m		2016 €m		2018 €m		2017 €m		2016 €m		2018 €m		2017 €m		2016 €m
Continuing operations
Europe Heavyside		351		349		260		-		-		2		351		349		262
Europe Lightside		42		36		27		-		-		-		42		36		27
Europe Distribution		31		33		26		-		-		-		31		33		26
Europe		424		418		313		-		-		2		424		418		315

Americas Materials		429		375		328		2		5		5		431		380		333
Americas Products		166		167		142		-		6		-		166		173		142
Americas		595		542		470		2		11		5		597		553		475

Asia		102		55		47		-		-		-		102		55		47


Total Group from continuing operations		1,121		1,015		830		2		11		7		1,123		1,026		837

Discontinued operations
Americas Distribution		-		29		23		-		-		-		-		29		23

Total Group		1,121		1,044		853		2		11		7		1,123		1,055		860

D. Information about geographical areas

The non-current assets (as defined in IFRS 8) attributable to the country of domicile and all foreign countries of operation, for which revenue exceeds 10% of total external Group revenue, are set out below.


	As at 31 December
	Non-current assets*

	2018		2017
		€m		€m
Continuing operations
Republic of Ireland (country of domicile)		495		493
Benelux (mainly the Netherlands)		816		1,162
United Kingdom		2,461		2,395
United States		12,925		8,749
Other		8,660		8,757
Total Group from continuing operations		25,357		21,556

Discontinued operations
United States - Americas Distribution		-		476
Total Group		25,357		22,032


		* Non-current assets comprise property, plant and equipment, intangible assets and investments accounted for using the equity method.