CRH PUBLIC LTD CO (ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory)

1. Segment Information

CRH is a leading global diversified building materials group which manufactures and distributes a range of building materials products from the fundamentals of heavy materials and elements to construct the frame, through value-added products that complete the building envelope, to distribution channels which service construction fit-out and renewal.

During 2017, our dedicated European landscaping businesses, previously included within our Europe Heavyside segment, were reorganised to form a new platform, Architectural Products, within our Europe Lightside segment. Comparative segment amounts for 2016 and 2015 have been restated where necessary to reflect the new format for segmentation.

The Group reports across the following six operating segments: Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products and Asia reflecting the Group’s organisational structure 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 Operating Segments).

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

•

the Group’s organisational structure in 2017 (during 2017 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 below. There are no asymmetrical allocations to reporting segments which would require disclosure.

Europe Heavyside businesses are predominantly engaged in the manufacture and supply of cement, lime, aggregates, readymixed and precast concrete and asphalt products. The segment comprises businesses operating in 19 countries across Western, Central and Eastern Europe.

Europe Lightside businesses are predominantly engaged in the production and supply of construction accessories, architectural products, shutters & awnings, perimeter protection & network access products across 17 countries primarily in Western Europe.

Europe Distribution businesses are predominantly engaged in supplying General Merchants, Sanitary, Heating and Plumbing (SHAP) and Do-It-Yourself (DIY) businesses catering to the general public and small and medium-sized builders in the Netherlands, Belgium, France, Germany, Switzerland and Austria, selling a range of bricks, cement, sanitary, heating, plumbing and other building products.

Americas Materials businesses are predominantly engaged in the production and sale of aggregates, asphalt, cement and readymixed concrete products and provide asphalt paving services in the US and Canada. This segment also includes the Group’s cement operations in Brazil.

Americas Products businesses are predominantly engaged in the production and sale in the US and Canada of concrete masonry and hardscapes, packaged lawn and garden products, packaged cement mixes, fencing, utility, drainage and structural precast products, construction accessories and glass and aluminium glazing systems.

Asia businesses are predominantly engaged in the manufacture and supply of cement and aggregates in the Philippines.

The Americas Distribution business has been classified as discontinued operations in the current year; its performance in this year and comparative years is therefore part of discontinued operations. See note 2 for further details.


* 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
	2017 €m		2016 €m		2015 €m		2017 €m		2016 €m		2015 €m		2017 €m		2016 €m		2015 €m		2017 €m		2016 €m		2015 €m
Continuing operations
Europe Heavyside		6,902		6,945		4,813		839		781		424		361		395		304		478		386		120
Europe Lightside		1,440		1,392		1,404		143		137		136		41		45		46		102		92		90
Europe Distribution		4,145		4,066		4,158		269		206		171		62		76		77		207		130		94
Europe		12,487		12,403		10,375		1,251		1,124		731		464		516		427		787		608		304

Americas Materials		7,970		7,598		7,018		1,270		1,204		955		412		386		335		858		818		620
Americas Products		4,327		4,280		3,862		573		543		391		138		132		142		435		411		249
Americas		12,297		11,878		10,880		1,843		1,747		1,346		550		518		477		1,293		1,229		869

Asia		436		508		151		52		109		2		37		38		9		15		71		(7)

Total Group from continuing operations		25,220		24,789		21,406		3,146		2,980		2,079		1,051		1,072		913		2,095		1,908		1,166

Discontinued operations
Americas Distribution		2,343		2,315		2,229		164		150		140		21		31		29		143		119		111
Total Group		27,563		27,104		23,635		3,310		3,130		2,219		1,072		1,103		942		2,238		2,027		1,277

Group operating profit from continuing operations																				2,095		1,908		1,166
Profit on disposals (i)																				56		53		99
Finance costs less income																				(289)		(317)		(295)
Other financial expense																				(60)		(66)		(94)
Share of equity accounted investments’ profit (ii)																				65		42		44
Profit before tax from continuing operations																				1,867		1,620		920

													(i) Profit/(loss) on disposals (note 5)						(ii) Share of equity accounted investments’ profit/(loss) (note 10)
Europe Heavyside														19		24		100		9		12		15
Europe Lightside														-		1		(22)		-		-		-
Europe Distribution														4		13		8		15		13		15
Europe														23		38		86		24		25		30

Americas Materials														29		(19)		24		32		34		23
Americas Products														4		34		(11)		-		-		-
Americas														33		15		13		32		34		23

Asia														-		-		-		9		(17)		(9)

Total Group														56		53		99		65		42		44


		* 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
	2017 €m		2016 €m		2017 €m		2016 €m
Europe Heavyside		8,932		8,383		2,641		2,633
Europe Lightside		1,100		1,084		302		313
Europe Distribution		2,178		2,160		563		642
Europe		12,210		11,627		3,506		3,588

Americas Materials		9,180		8,970		1,628		1,725
Americas Products		4,017		4,275		895		998
Americas Distribution (i)		-		1,152		-		392
Americas		13,197		14,397		2,523		3,115

Asia		1,402		1,557		172		224

Total Group		26,809		27,581		6,201		6,927

Reconciliation to total assets as reported in the Consolidated Balance Sheet:
Investments accounted for using the equity method		1,248		1,299
Other financial assets		25		26
Derivative financial instruments (current and non-current)		64		76
Income tax assets (current and deferred)		260		163
Cash and cash equivalents		2,115		2,449
Assets held for sale		1,112		-
Total assets as reported in the Consolidated Balance Sheet		31,633		31,594

Reconciliation to total liabilities as reported in the Consolidated Balance Sheet:
Interest-bearing loans and borrowings (current and non-current)						7,976		7,790
Derivative financial instruments (current and non-current)						14		32
Income tax liabilities (current and deferred)						2,124		2,402
Liabilities associated with assets classified as held for sale						341		-
Total liabilities as reported in the Consolidated Balance Sheet						16,656		17,151

(i)	During 2017, the Americas Distribution segment was classified as held for sale under IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations (refer to note 2 for further information). Accordingly its total assets and total liabilities have not been presented for 2017.

C. Operating segments disclosures - other items

Additions to non-current assets


	Year ended 31 December
	Property, plant and equipment (note 14)						Financial assets (note 16)						Total Group
	2017 €m		2016 €m		2015 €m		2017 €m		2016 €m		2015 €m		2017 €m		2016 €m		2015 €m
Continuing operations
Europe Heavyside		349		260		238		-		2		8		349		262		246
Europe Lightside		36		27		38		-		-		-		36		27		38
Europe Distribution		33		26		46		-		-		1		33		26		47
Europe		418		313		322		-		2		9		418		315		331

Americas Materials		375		328		335		5		5		10		380		333		345
Americas Products		167		142		153		6		-		-		173		142		153
Americas		542		470		488		11		5		10		553		475		498

Asia		55		47		31		-		-		-		55		47		31

Total Group from continuing operations		1,015		830		841		11		7		19		1,026		837		860

Discontinued operations
Americas Distribution		29		23		41		-		-		-		29		23		41
Total Group		1,044		853		882		11		7		19		1,055		860		901

D. Entity-wide disclosures

Section 1: Information about products and services

The Group’s revenue from external customers in respect of its principal products and services is analysed in the disclosures above. Segment revenue includes €5,236 million (2016: €5,102 million; 2015: €4,523 million) in respect of revenue applicable to construction contracts. The bulk of our construction activities are performed by our Americas Materials reportable segment, are for the most part short-term in nature and are generally completed within the same financial reporting period.

Revenue derived through the supply of services and intersegment revenue are not material to the Group. The transfer pricing policy implemented by the Group between operating segments and across its constituent entities is described in greater detail in note 33. In addition, due to the nature of building materials, which have a low value-to-weight ratio, the Group’s revenue streams include a low level of cross-border transactions.

Section 2: Information about geographical areas and customers

CRH has a presence in 32 countries worldwide. The revenues from external customers and non-current assets (as defined in IFRS 8) attributable to the country of domicile and all foreign countries of operation are set out below; individual foreign countries which exceed 10% of total external Group revenue have been highlighted separately on the basis of materiality.


	Year ended 31 December						As at 31 December
	Revenue by destination						Non-current assets*
	2017 €m		2016 €m		2015 €m		2017 €m		2016 €m
Country of domicile - Republic of Ireland		435		403		349		493		475
Benelux (mainly the Netherlands)		2,589		2,576		2,478		1,162		1,201
United Kingdom		3,023		3,091		1,694		2,395		2,487
United States		10,844		10,415		9,819		8,749		8,710
Other		8,329		8,304		7,066		8,757		8,346
Total Group from continuing operations		25,220		24,789		21,406		21,556		21,219
United States - Americas Distribution		2,343		2,315		2,229		476		531
Total Group		27,563		27,104		23,635		22,032		21,750

There are no material dependencies or concentrations of individual customers which would warrant disclosure under IFRS 8. The individual entities within the Group have a large number of customers spread across various activities, end-uses and geographies.


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

CRH PUBLIC LTD CO | CIK:0000849395 |

ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory