XML 33 R18.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information and Geographic Data
12 Months Ended
Sep. 25, 2021
Segment Reporting [Abstract]  
Segment Information and Geographic Data Segment Information and Geographic Data
The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.
The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company’s customers and distribution partners and the unique market dynamics of each geographic region. The accounting policies of the various segments are the same as those described in Note 1, “Summary of Significant Accounting Policies.”
The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of customers and sales through the Company’s retail stores located in those geographic locations. Operating income for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Advertising expenses are generally included in the geographic segment in which the expenditures are incurred. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable segments. Costs excluded from segment operating income include various corporate expenses such as research and development, corporate marketing expenses, certain share-based compensation expenses, income taxes, various nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany transfers between segments for management reporting purposes.
The following table shows information by reportable segment for 2021, 2020 and 2019 (in millions):
202120202019
Americas:
Net sales
$153,306 $124,556 $116,914 
Operating income
$53,382 $37,722 $35,099 
Europe:
Net sales
$89,307 $68,640 $60,288 
Operating income
$32,505 $22,170 $19,195 
Greater China:
Net sales
$68,366 $40,308 $43,678 
Operating income
$28,504 $15,261 $16,232 
Japan:
Net sales
$28,482 $21,418 $21,506 
Operating income
$12,798 $9,279 $9,369 
Rest of Asia Pacific:
Net sales
$26,356 $19,593 $17,788 
Operating income
$9,817 $6,808 $6,055 
A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2021, 2020 and 2019 is as follows (in millions):
202120202019
Segment operating income
$137,006 $91,240 $85,950 
Research and development expense
(21,914)(18,752)(16,217)
Other corporate expenses, net
(6,143)(6,200)(5,803)
Total operating income
$108,949 $66,288 $63,930 
The U.S. and China were the only countries that accounted for more than 10% of the Company’s net sales in 2021, 2020 and 2019. There was no single customer that accounted for more than 10% of net sales in 2021, 2020 and 2019. Net sales for 2021, 2020 and 2019 and long-lived assets as of September 25, 2021 and September 26, 2020 were as follows (in millions):
202120202019
Net sales:
U.S.$133,803 $109,197 $102,266 
China (1)
68,366 40,308 43,678 
Other countries
163,648 125,010 114,230 
Total net sales
$365,817 $274,515 $260,174 
20212020
Long-lived assets:
U.S.$28,203 $25,890 
China (1)
7,521 7,256 
Other countries
3,716 3,620 
Total long-lived assets
$39,440 $36,766 
(1)China includes Hong Kong and Taiwan. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure.