Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 98Fair valuesThe fair value of assets and liabilities has been determined either by reference to the market value at the balance sheet dateor by discounting the relevant cash fl ows using current interest rates for similar instruments. For interest rate swaps themarket to market value is based on the last applicable fl oating rate of 2010. Receivables and payables with a remaining life ofless than one year are valued at the notional amount, which is deemed to refl ect the fair value. All non-current interest-bearingloans have variable interest rates. All non-current interest-bearing loans are valued at amortised cost.The fair value of fi nancial assets and liabilities per 31 December 2010 are equal to the carrying amounts shown in the balancesheet except for the Syndicated Loan Facility of which the fair value is € 11.8 million above the carrying amount, representingthe capitalised fee costs.5. Segment reportingIn October 2010 Wavin announced several organisational changes within the Wavin Group which will become fully effective asof 1 January 2011. One of these changes relates to the integration of four regions in the mature Western European marketsinto two regions to benefi t from scale and to realise synergies. The UK/Ireland and South West Europe (France) regions will becombined, as well as the Nordic and the North West Europe regions. In the emerging markets the Baltic countries (Lithuania,Estonia and Latvia) and Belarus will become part of the Central & Eastern Europe region instead of the Nordic region.The South East Europe region remains unchanged. The geographic segments are based on the location of the customers.For each of these segments the Group’s Management Board reviews internal management reports on a monthly basis.The adjusted geographic segmentation can be specifi ed as follows:• North West Europe (The Netherlands, Germany, Belgium, Denmark, Norway, Sweden, Finland);• South West Europe (UK (including clay activities of EuroCeramic), Ireland, France);• Central & Eastern Europe (Poland, Czechia, Russia, Slovakia, Ukraine, Lithuania, Estonia, Latvia, Belarus);• South East Europe (Italy, Turkey, Hungary, Romania, Serbia, Croatia, Bulgaria);• Overseas and Other (Wavin Overseas, Wavin T&I, Wavin Head Offi ce and several small companies).Performance is measured mainly on segment Ebitda (operating profi t before depreciation, amortisation and non-recurringitems), as included in the internal management reports. Ebitda is used to measure performance as management believes thatsuch information is the most relevant in evaluating the performance of certain segments relative to other entities that operatewithin the industry.Inter-segment pricing is determined at an arm’s length basis. Segment results, assets and liabilities include items directlyattributable to the region as well as those that can be allocated on a reasonable basis. Segment capital expenditure is thetotal cost incurred during the period to acquire property, plant & equipment, and intangible assets other than goodwill.