Segment Information and Geographic Data

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information and Geographic Data

Segment Information and Geographic Data

The Company manages its business primarily on a geographic basis. The Company’s reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company’s other reportable segments. Although the reportable 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 Company evaluates the performance of its reportable 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 consists of net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment. The information provided to the Company’s chief operating decision maker for purposes of making decisions and assessing segment performance excludes asset information.

The following table shows information by reportable segment for 2023, 2022 and 2021 (in millions):

	2023		2022		2021
Americas:
Net sales	$	162,560	$	169,658	$	153,306
Operating income	$	60,508	$	62,683	$	53,382
Europe:
Net sales	$	94,294	$	95,118	$	89,307
Operating income	$	36,098	$	35,233	$	32,505
Greater China:
Net sales	$	72,559	$	74,200	$	68,366
Operating income	$	30,328	$	31,153	$	28,504
Japan:
Net sales	$	24,257	$	25,977	$	28,482
Operating income	$	11,888	$	12,257	$	12,798
Rest of Asia Pacific:
Net sales	$	29,615	$	29,375	$	26,356
Operating income	$	12,066	$	11,569	$	9,817

A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2023, 2022 and 2021 is as follows (in millions):

	2023		2022		2021
Segment operating income	$	150,888	$	152,895	$	137,006
Research and development expense	(29,915)		(26,251)		(21,914)
Other corporate expenses, net (1)	(6,672)		(7,207)		(6,143)
Total operating income	$	114,301	$	119,437	$	108,949

(1)Includes corporate marketing expenses, certain share-based compensation expenses, various nonrecurring charges, and other separately managed general and administrative costs.

The U.S. and China were the only countries that accounted for more than 10% of the Company’s net sales in 2023, 2022 and 2021. Net sales for 2023, 2022 and 2021 and long-lived assets as of September 30, 2023 and September 24, 2022 were as follows (in millions):

	2023		2022		2021
Net sales:
U.S.	$	138,573	$	147,859	$	133,803
China (1)	72,559		74,200		68,366
Other countries	172,153		172,269		163,648
Total net sales	$	383,285	$	394,328	$	365,817

	2023		2022
Long-lived assets:
U.S.	$	33,276	$	31,119
China (1)	5,778		7,260
Other countries	4,661		3,738
Total long-lived assets	$	43,715	$	42,117

(1)China includes Hong Kong and Taiwan.