Apple 2004 Annual Report Download - page 104

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A reconciliation of the Company's segment operating income 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 U.S., and a majority of the products sold by the Company is assembled
internationally in the Company's facility in Cork, Ireland or by third-party vendors in Taiwan, Korea, the Netherlands, the People's Republic of
China, and the Czech Republic. 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 2004, 2003 or 2002.
Net sales and long
-lived assets related to operations in the U.S., Japan, and other foreign countries are as follows (in millions):
100
2004
2003
2002
Segment operating income
$
989
$
620
$
562
Corporate expenses, net
(640
)
(595
)
(514
)
Purchased in
-
process research and development
—
—
(
1
)
Restructuring costs
(23
)
(26
)
(30
)
Consolidated operating income (loss)
$
326
$
(1
)
$
17
Segment assets
$
1,411
$
1,197
$
818
Corporate assets
6,639
$
5,618
$
5,480
Consolidated assets
$
8,050
$
6,815
$
6,298
Segment depreciation, amortization and accretion
$
49
$
39
$
28
Corporate depreciation, amortization and accretion
101
74
86
Consolidated depreciation, amortization and accretion
$
150
$
113
$
114
2004
2003
2002
Net Sales:
U.S.
$
4,893
$
3,627
$
3,272
Japan
738
698
710
Other Countries
2,648
1,882
1,760
Total Net Sales
$
8,279
$
6,207
$
5,742
Long
-
Lived Assets:
U.S.
$
637
$
635
$
561
Japan
52
19
2
Other Countries
72
60
69
Total Long
-
Lived Assets
$
761
$
714
$
632