Apple 1998 Annual Report Download - page 64

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NOTE 11--INDUSTRY SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED)
Geographic financial information is as follows (in millions):
"EMEA" is an abbreviation for Europe, the Middle East, and Africa. Revenues in Africa and the Middle East were not significant. "Asia
Pacific" does not include Japan. "Other" is comprised of all North and South America sites excluding the United States. Prior year amounts
have been restated to conform to the current year's presentation. "Net sales to unaffiliated customers" is based on the location of the customers.
Transfers between geographic areas are recorded at amounts generally above cost and in accordance with the rules and regulations of the
respective governing tax authorities. Operating income (loss) by geographic area consists of total net sales less operating expenses, and does
not include an allocation of general corporate expenses. The restructuring charges recorded in 1997 and 1996 are included in the calculation of
operating income (loss) for each geographic area. Identifiable assets of geographic areas are those assets used in the Company's operations in
each area. Corporate assets include cash and cash equivalents, short-term investments and equity securities.
A large portion of the Company's revenue is derived from its international operations, and a majority of the products sold internationally are
manufactured in the Company's facilities in Cork, Ireland and Singapore. As a result, the Company is subject to risks associated with foreign
operations, such as
61
1998 1997 1996
--------- --------- ---------
Net sales to unaffiliated customers:
United States.......................................................... $ 3,287 $ 3,507 $ 4,735
EMEA................................................................... 1,345 1,667 2,222
Japan.................................................................. 731 1,070 1,792
Asia Pacific........................................................... 293 490 563
Other.................................................................. 285 347 521
--------- --------- ---------
Total net sales...................................................... $ 5,941 $ 7,081 $ 9,833
--------- --------- ---------
--------- --------- ---------
Transfers between geographic areas (eliminated in consolidation):
United States.......................................................... $ 50 $ 206 $ 517
EMEA................................................................... 398 207 121
Japan.................................................................. 1 5 --
Asia Pacific........................................................... 854 1,270 3,035
--------- --------- ---------
Total transfers...................................................... $ 1,303 $ 1,688 $ 3,673
--------- --------- ---------
--------- --------- ---------
Operating income (loss):
United States.......................................................... $ 45 $ (913) $ (1,198)
EMEA................................................................... 117 (129) (186)
Japan.................................................................. 3 (86) (4)
Asia Pacific........................................................... 56 104 3
Other.................................................................. 8 (29) --
Eliminations........................................................... 32 (17) 2
Corporate income (expense), net.......................................... 68 25 88
--------- --------- ---------
Income (loss) before provision (benefit) for income taxes................ $ 329 $ (1,045) $ (1,295)
--------- --------- ---------
--------- --------- ---------
Identifiable assets:
United States.......................................................... $ 1,205 $ 1,543 $ 1,935
EMEA................................................................... 342 557 648
Japan.................................................................. 242 383 559
Asia Pacific........................................................... 104 286 312
Other.................................................................. 68 119 171
Eliminations........................................................... (3) (135) (26)
Corporate assets....................................................... 2,331 1,480 1,765
--------- --------- ---------
Total assets......................................................... $ 4,289 $ 4,233 $ 5,364
--------- --------- ---------
--------- --------- ---------