An operating segment is a component of an enterprise: (1) that

engages in business activities from which it may earn revenues and incur
expenses, either internal or external; (2) whose operating results are
regularly reviewed by the enterprises chief operating decision maker and
(3) for which discrete financial information is available. An operating
segment is a reportable segment if (a) its revenue is 10 percent or more of
the combined revenue of all operating segments, (b) its absolute operating
profit or loss is 10 percent or more of the greater of combined operating
profit of all segments that have operating profit or combined operating
losses of all segments that have losses, or (c) its identifiable assets are
10 percent or more of the combined identifiable assets of all operating
segments. Segments not meeting one of these tests are subject to a reevaluation, and possible aggregation, if
the combined revenue from sales to external customers of all reportable segments is less than 75 percent of
consolidated revenue. Segments that are not reportable segments are combined with other business activities and
reported under an all other category.
An industry segment is a reportable segment under the 10 percent operating profit test if its operating
profit or loss, in absolute amount, equals or is greater than the greater of combined operating profits for all
operating segments having operating profits or the absolute value of the combined operating losses for all
operating segments having operating losses.
A segment is a reportable segment under the 10 percent asset test if its assets are 10 percent or more of
the combined assets of all operating segments. The allocation of general corporate assets depends on the internal
operations of the enterprise. The key is the asset figure given to the chief operating decision maker on which he
or she evaluates performance. If corporate assets are not allocated, they become part of the reconciliation
between the reportable segments assets and consolidated assets.
A segment is a reportable segment under the 10 percent revenue test if its intersegment and external
sales is 10 percent or more of the combined intersegment and external sales of all the operating segments
The following information must be disclosed for reportable segments and for the remainder of the enterprises
operating segments and other business activities in the aggregate:
a
Revenue, with separate amounts to unaffiliated and affiliated customers, and disclosure of the
basis of accounting for intersegment sales.
b
Operating profit or loss, based on the information reviewed by the chief operating officer.
c
Identifiable assets for each reportable segment.
d
Interest revenue
e
Interest expense
f
Aggregate amount of depreciation, depletion, and amortization expense.
g
Unusual items as described in paragraph 26 of APB Opinion No. 30.
h
Equity in the net income of investees accounted for by the equity method.
i
Income tax expense or benefit.
j
Extraordinary items.
k
Significant noncash items other than depreciation, depletion, and amortization.
o

Reconciliation schedules should be provided to explain the difference

between segment amounts and consolidated totals for:

1.

Reportable segment revenue to consolidated revenue

Intersegment revenues

2.

Reportable segment profit and loss to consolidated income before taxes

Intersegment revenues, expenses, and common or allocated costs

2.

Reportable segment assets to consolidated assets

Corporate assets

3.

If other significant information is disclosed, reconcile the segment

amounts with consolidated amounts for each item

Additional enterprise-wide disclosures are required if not already reported with

segment information
1.

Products and services

Revenues by product/product line, service

2.

Geographic information

Revenues and fixed assets

Domestic and foreign

And if >10%, the specific country must be disclosed

3.

Major customers

Customer revenues > 10% Total Revenues

Segment which has those revenues

Not required: customer identity