2. SEGMENT INFORMATION


SEGMENTAL REPORTING
Personal Care	–	primarily sales of skin care and hair care products, deodorants and oral care products.

Home Care	–	primarily sales of home care products, such as powders, liquids and capsules, soap bars and a wide range of cleaning products.

Foods	–	primarily sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads.

Refreshment	–	primarily sales of ice cream and tea-based beverages.

REVENUE

Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs.

Turnover is recognised when the risks and rewards of the underlying products have been substantially transferred to the customer. Depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance.

UNDERLYING OPERATING PROFIT

Underlying operating profit means operating profit before the impact of non-underlying items within operating profit (see note 3). Underlying operating profit represents our measure of segment profit or loss as it is the primary measure used for the purpose of making decisions about allocating resources and assessing performance of segments. Underlying operating margin is calculated as underlying operating profit divided by turnover.


			€ million			€ million		€ million			€ million		€ million			€ million		€ million
	Notes		Personal Care			Home Care		Home and Personal Care			Foods		Refresh- ment			Foods and Refresh- ment^(a)		Total

2017
Turnover				20,697			10,574		31,271			12,512		9,932			22,444		53,715

Operating profit				4,103			1,138		5,241			2,275		1,341			3,616		8,857
Non-underlying items		3		272			150		422			196		(75	)		121		543
Underlying operating profit				4,375			1,288		5,663			2,471		1,266			3,737		9,400

Share of net profit/(loss) of joint ventures and associates				8			4		12			7		136			143		155
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation				488			248		736			321		481			802		1,538
Share-based compensation and other non-cash charges^(b)				164			79		243			96		78			174		417
Within non-underlying items:
Impairment and other non-cash charges^(c)				80			48		128			76		115			191		319


2016
Turnover				20,172			10,009		30,181			12,524		10,008			22,532		52,713

Operating profit				3,704			949		4,653			2,180		968			3,148		7,801
Non-underlying items		3		329			137		466			214		143			357		823
Underlying operating profit				4,033			1,086		5,119			2,394		1,111			3,505		8,624

Share of net profit/(loss) of joint ventures and associates				(5	)		1		(4	)		4		127			131		127
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation				437			236		673			322		469			791		1,464

Share-based compensation and other non-cash charges^(b)				134			86		220			76		59			135		355
Within non-underlying items:
Impairment and other non-cash charges^(c)				74			45		119			75		49			124		243

2015
Turnover				20,074			10,159		30,233			12,919		10,120			23,039		53,272

Operating profit				3,637			740		4,377			2,298		840			3,138		7,515
Non-underlying items		3		314			115		429			170		197			367		796
Underlying operating profit				3,951			855		4,806			2,468		1,037			3,505		8,311

Share of net profit/(loss) of joint ventures and associates				(4	)		-		(4	)		4		107			111		107
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation				377			235		612			308		450			758		1,370
Share-based compensation and other non-cash charges^(b)				125			76		201			72		57			129		330
Within non-underlying items:
Impairment and other non-cash charges^(c)				142			58		200			41		96			137		337

^(a)	Foods and Refreshment is expected to be reported together from 2018.

^(b)	Other non-cash charges within underlying operating profit includes movements in provisions from underlying activities, excluding movements arising from non-underlying activities.

^(c)	Other non-cash charges within non-underlying items includes movements in restructuring provisions, movements in certain legal provisions (in 2017 and 2015), and foreign exchange losses resulting from remeasurement of the Argentinian business (in 2016 and 2015) and Venezuelan business (in 2015).

Transactions between the Unilever Group’s reportable segments are immaterial and are carried out on an arm’s length basis.

The Unilever Group is not reliant on revenues from transactions with any single customer and does not receive 10% or more of its revenues from transactions with any single customer.

Segment assets and liabilities are not provided because they are not reported to or reviewed by our chief operating decision-maker, which is Unilever Leadership Executive (ULE) as explained in the Corporate Governance Section.

The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover and non-current assets for these two countries combined, for the United States (being the largest country outside the home countries) and for all other countries are:

€ million

2017

Netherlands/
United
Kingdom

United

States

Others

Total

Turnover

3,849

8,532

41,334

53,715

Non-current assets^(d)

3,781

11,820

23,768

39,369

2016

Turnover

3,819

8,263

40,631

52,713

Non-current assets^(d)

4,770

11,696

23,358

39,824

2015

Turnover

4,157

7,956

41,159

53,272

Non-current assets^(d)

4,878

9,674

22,336

36,888

^(d)

Non-current assets excluding financial assets, deferred tax assets and pension assets for funded schemes in surplus. Non-current assets were reduced in all the geographies as a result of the reclassification of Spreads non-current assets to current assets - assets held for sale (refer to note 22); this was offset in the United States and other geographies by the impact of goodwill and intangible assets from acquisitions.

No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total.

ADDITIONAL INFORMATION BY GEOGRAPHIES

Although the Group’s operations are managed by product area, we provide additional information based on geographies. The analysis of turnover by geographical area is stated on the basis of origin.


	€ million			€ million			€ million		€ million
		Asia/ AMET/RUB	^(e)		The Americas			Europe		Total
2017
Turnover		23,266			17,525			12,924		53,715

Operating profit		3,802			3,086			1,969		8,857
Non-underlying items		306			(23	)		260		543
Underlying operating profit		4,108			3,063			2,229		9,400

Share of net profit/(loss) of joint ventures and associates		12			112			31		155
2016
Turnover		22,445			17,105			13,163		52,713

Operating profit		3,275			2,504			2,022		7,801
Non-underlying items		254			401			168		823
Underlying operating profit		3,529			2,905			2,190		8,624

Share of net profit/(loss) of joint ventures and associates		(2	)		108			21		127
2015
Turnover		22,425			17,294			13,553		53,272

Operating profit		3,019			2,273			2,223		7,515
Non-underlying items		181			399			216		796
Underlying operating profit		3,200			2,672			2,439		8,311

Share of net profit/(loss) of joint ventures and associates		(1	)		96			12		107

^(e)	Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus.

Transactions between the Unilever Group’s geographical regions are immaterial and are carried out on an arm’s length basis.