## 27. Segment Reporting 

In primary segment reporting, as a first step, sales and gross profit are shown according to the geographical region where the sales are realized (according to customers’ head offices); in a second presentation, sales are allocated to the region where the head office of the respective group company is located. Intercompany sales are eliminated under Central Units / Consolidation. The allocation of the remaining segment information is also determined on the basis of the respective group company’s head office. The sum totals equal the amounts on the income statement or on the balance sheet, respectively. 

The operating result for the respective region was adjusted concerning intra-group settlements such as royalty and commission payments. Worldwide royalty income, largely realized by PUMA AG, the cost of international marketing, product development and other international costs are included under Central Units / Consolidation. Regional allocation with respect to the sales business would not be reasonable. 

Gross assets include assets used to generate the operating result of the respective segment. Non-operating assets including tax deferrals and group assets which cannot be allocated are disclosed in the Central Units / Consolidation column. 

Liabilities include the respective outside capital from the viewpoint of the companies allocated. Intercompany assets and liabilities are eliminated in the Central Units / Consolidation column. 

Investments and depreciation/amortisation relate to additions to and depreciation/amortisation of property, plant and equipment and of intangible assets during the current financial year. 

Based on the internal reporting structure, secondary segment data is allocated to the Footwear, Apparel and Accessories product categories. The operating results and most of the asset and liability items cannot be allocated in a reasonable manner. 

