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Segment Information and Geographic Data | 9 Months Ended
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Jul. 01, 2017
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 operating segments. The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as India, the Middle East and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment includes Australia and those Asian countries not included in the Company’s other reportable operating segments. Although the reportable operating 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” of the Notes to Consolidated Financial Statements in Part II, Item 8 of the 2016 Form 10-K. The Company evaluates the performance of its reportable operating 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 operating 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 operating segment for the three- and nine-month periods ended July 1, 2017 and June 25, 2016 (in millions):
| Three Months Ended |  | Nine Months Ended
| July 1, 2017 |  | June 25, 2016 |  | July 1, 2017 |  | June 25, 2016
Americas: |  |  |  |  |  |  |
Net sales | $ | 20,376 |  |  | $ | 17,963 |  |  | $ | 73,501 |  |  | $ | 66,384 |
Operating income | $ | 6,420 |  |  | $ | 5,453 |  |  | $ | 23,582 |  |  | $ | 21,587 |
Europe: |  |  |  |  |  |  |
Net sales | $ | 10,675 |  |  | $ | 9,643 |  |  | $ | 41,929 |  |  | $ | 39,110 |
Operating income | $ | 2,984 |  |  | $ | 2,666 |  |  | $ | 12,571 |  |  | $ | 12,047 |
Greater China: |  |  |  |  |  |  |
Net sales | $ | 8,004 |  |  | $ | 8,848 |  |  | $ | 34,963 |  |  | $ | 39,707 |
Operating income | $ | 3,002 |  |  | $ | 3,415 |  |  | $ | 13,402 |  |  | $ | 15,809 |
Japan: |  |  |  |  |  |  |
Net sales | $ | 3,624 |  |  | $ | 3,529 |  |  | $ | 13,875 |  |  | $ | 12,604 |
Operating income | $ | 1,624 |  |  | $ | 1,435 |  |  | $ | 6,334 |  |  | $ | 5,605 |
Rest of Asia Pacific: |  |  |  |  |  |  |
Net sales | $ | 2,729 |  |  | $ | 2,375 |  |  | $ | 12,387 |  |  | $ | 10,982 |
Operating income | $ | 892 |  |  | $ | 753 |  |  | $ | 4,430 |  |  | $ | 3,880 |
A reconciliation of the Company’s segment operating income to the Condensed Consolidated Statements of Operations for the three- and nine-month periods ended July 1, 2017 and June 25, 2016 is as follows (in millions):
| Three Months Ended |  | Nine Months Ended
| July 1, 2017 |  | June 25, 2016 |  | July 1, 2017 |  | June 25, 2016
Segment operating income | $ | 14,922 |  |  | $ | 13,722 |  |  | $ | 60,319 |  |  | $ | 58,928 |
Research and development expense | (2,937 | ) |  | (2,560 | ) |  | (8,584 | ) |  | (7,475 | )
Other corporate expenses, net | (1,217 | ) |  | (1,057 | ) |  | (3,511 | ) |  | (3,190 | )
Total operating income | $ | 10,768 |  |  | $ | 10,105 |  |  | $ | 48,224 |  |  | $ | 48,263 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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