Apple 1999 Annual Report Download - page 66

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 9--SEGMENT INFORMATION AND GEOGRAPHIC DATA (CONTINUED)
A reconciliation of the Company's segment operating income (loss), and assets to the consolidated financial statements follows (in millions):
A large portion of the Company's net sales is derived from its international operations. Also, a majority of the raw materials used in the
Company's products is obtained from sources outside of the United States, and a majority of the products sold by the Company is assembled
internationally in the Company's facilities in Cork, Ireland and Singapore or by third-party vendors in Taiwan, Korea, Mexico, and the United
Kingdom. As a result, the Company is subject to risks associated with foreign operations, such as obtaining governmental permits and
approvals, currency exchange fluctuations, currency restrictions, political instability, labor problems, trade restrictions, and changes in tariff
and freight charges. No single customer accounted for more than 10% of net sales in 1999, 1998, or 1997. Net sales and long-lived assets
related to operations in the United States, Japan, and other foreign countries are as follows (in millions):
62
1999 1998 1997
-------- -------- --------
Segment Operating Income........................... $ 904 $ 570 $ 270
Corporate Expenses, net............................ (518) (302) (673)
In-process Research and Development................ -- (7) (375)
Restructuring...................................... (27) -- (217)
Termination of License Agreement................... -- -- (75)
------ ------ -------
Total Operating Income (loss).................... $ 359 $ 261 $(1,070)
====== ====== =======
Segment Assets..................................... $ 835 $1,193 $ 1,684
Corporate Assets................................... 4,326 3,096 2,549
------ ------ -------
Total Assets..................................... $5,161 $4,289 $ 4,233
====== ====== =======
Segment Depreciation and Amortization.............. $ 12 $ 16 $ 26
Corporate Depreciation and Amortization............ 73 95 92
------ ------ -------
Total Depreciation and Amortization............ $ 85 $ 111 $ 118
====== ====== =======
1999 1998 1997
-------- -------- --------
Net Sales:
United States....................................... $3,394 $3,287 $3,507
Japan............................................... 858 731 1,098
Other Foreign Countries............................. 1,882 1,923 2,476
------ ------ ------
Total Net Sales................................... $6,134 $5,941 $7,081
====== ====== ======
Long-Lived Assets:
United States....................................... $ 335 $ 336 $ 474
Japan............................................... 7 5 11
Other Foreign Countries............................. 62 94 188
------ ------ ------
Total Long-Lived Assets........................... $ 404 $ 435 $ 673
====== ====== ======