Segment Information and Geographic Data (Tables)

12 Months Ended

Sep. 29, 2018

Summary Information by Reportable Segment

The following table shows information by reportable segment for 2018, 2017 and 2016 (in millions):



	2018		2017		2016
Americas:
Net sales	$	112,093	$	96,600	$	86,613
Operating income	$	34,864	$	30,684	$	28,172

Europe:
Net sales	$	62,420	$	54,938	$	49,952
Operating income	$	19,955	$	16,514	$	15,348

Greater China:
Net sales	$	51,942	$	44,764	$	48,492
Operating income	$	19,742	$	17,032	$	18,835

Japan:
Net sales	$	21,733	$	17,733	$	16,928
Operating income	$	9,500	$	8,097	$	7,165

Rest of Asia Pacific:
Net sales	$	17,407	$	15,199	$	13,654
Operating income	$	6,181	$	5,304	$	4,781

Reconciliation of Segment Operating Income to the Consolidated Statements of Operations

A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2018, 2017 and 2016 is as follows (in millions):



	2018			2017			2016
Segment operating income	$	90,242		$	77,631		$	74,301
Research and development expense	(14,236		)	(11,581		)	(10,045		)
Other corporate expenses, net	(5,108		)	(4,706		)	(4,232		)
Total operating income	$	70,898		$	61,344		$	60,024

Net Sales and Long-lived Assets

Net sales for 2018, 2017 and 2016 and long-lived assets as of September 29, 2018 and September 30, 2017 were as follows (in millions):



	2018		2017		2016
Net sales:
U.S.	$	98,061	$	84,339	$	75,667
China⁽¹⁾	51,942		44,764		48,492
Other countries	115,592		100,131		91,480
Total net sales	$	265,595	$	229,234	$	215,639



	2018		2017
Long-lived assets:
U.S.	$	23,963	$	20,637
China ⁽¹⁾	13,268		10,211
Other countries	4,073		2,935
Total long-lived assets	$	41,304	$	33,783


(1)	China includes Hong Kong and Taiwan. Long-lived assets located in China consist primarily of product tooling and manufacturing process equipment and assets related to retail stores and related infrastructure.

Net Sales by Product

Net sales by product for 2018, 2017 and 2016 were as follows (in millions):



	2018		2017		2016
iPhone ⁽¹⁾	$	166,699	$	141,319	$	136,700
iPad ⁽¹⁾	18,805		19,222		20,628
Mac ⁽¹⁾	25,484		25,850		22,831
Services ⁽²⁾	37,190		29,980		24,348
Other Products ⁽¹⁾⁽³⁾	17,417		12,863		11,132
Total net sales	$	265,595	$	229,234	$	215,639


(1)	Includes deferrals and amortization of related software upgrade rights and non-software services.

(2)

Includes revenue from Digital Content and Services, AppleCare, Apple Pay, licensing and other services. Services net sales in 2018 included a favorable one-time item of $236 million in connection with the final resolution of various lawsuits. Services net sales in 2017 included a favorable one-time adjustment of $640 million due to a change in estimate based on the availability of additional supporting information.


(3)	Includes sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories.