21. Segment Reporting

Question 1

What is test of a reportable segment based on operations in different industries?

Answer 1

If a segment meets any of 3 tests, disclose results of all 3:

1. Segment’s revenues > or = 10% of company’s total revenues (including inter-segment)
2. Segment’s profit or loss > or = 10% of combined operating profit or loss of all segments that had a profit or loss (include allocated common costs, exclude corporate-level expenses, e.g. interest and income taxes)
3. Segment’s assets > or = 10% of company’s identifiable assets

Question 2

What is the test of a reportable segment based on geographic area?

Answer 2

If a segment meets any 1 test, disclose results of all 3:

1. Segment’s revenues > or = 10% of company’s total revenues (including inter-segment)
2. Segment’s profit or loss > or = 10% of combined operating profit or loss of all segments that had a profit or loss (include allocated common costs, exclude corporate-level expenses, e.g. interest and income taxes)
3. Segment’s assets > or = 10% of company’s identifiable assets

Question 3

What is the test of a reportable segment based on major customer or export sales?

Answer 3

If a segment meets any 1 test, disclose results of the 1 test:

1. Segment’s revenues > or = 10% of company’s total revenues (including inter-segment)
2. Segment’s profit or loss > or = 10% of combined operating profit or loss of all segments that had a profit or loss (include allocated common costs, exclude corporate-level expenses, e.g. interest and income taxes)
3. Segment’s assets > or = 10% of company’s identifiable assets