Segment Information and Geographic Data (Tables)

12 Months Ended

Sep. 27, 2014

Summary Information by Operating Segment

The following table shows information by operating segment for 2014, 2013 and 2012 (in millions):

	2014		2013		2012
Americas:
Net sales	$	65,232	$	62,739	$	57,512
Operating income	$	24,316	$	22,817	$	23,414
Europe:
Net sales	$	40,929	$	37,883	$	36,323
Operating income	$	14,771	$	13,025	$	14,869
Greater China:
Net sales	$	29,846	$	25,417	$	22,533
Operating income	$	11,016	$	8,541	$	9,843
Japan:
Net sales	$	14,982	$	13,462	$	10,571
Operating income	$	7,183	$	6,819	$	5,861
Rest of Asia Pacific:
Net sales	$	10,344	$	11,181	$	10,741
Operating income	$	3,636	$	3,753	$	4,253
Retail:
Net sales	$	21,462	$	20,228	$	18,828
Operating income	$	4,575	$	4,025	$	4,613

Reconciliation of Segment Operating Income to Consolidated Statements of Operations

A reconciliation of the Company’s segment operating income to the Consolidated Statements of Operations for 2014, 2013 and 2012, is as follows (in millions):

	2014			2013			2012
Segment operating income	$	65,497		$	58,980		$	62,853
Research and development expense (1)		(4,825	)		(3,558	)		(2,713	)
Share-based compensation expense		(2,863	)		(2,253	)		(1,740	)
Other corporate expenses, net		(5,306	)		(4,170	)		(3,159	)
Total operating income	$	52,503		$	48,999		$	55,241

⁽¹⁾  Amount excludes research and development share-based compensation expense.

Total Assets by Segment and Reconciliation to Consolidated Balance Sheets

The following table shows total assets by segment and reconciliation to the Consolidated Balance Sheets as of September 27, 2014 and September 28, 2013 (in millions):

	2014		2013
Segment assets:
Americas	$	9,352	$	5,653
Europe		4,631		3,134
Greater China		3,172		2,943
Japan		3,106		2,932
Rest of Asia Pacific		908		923
Retail		3,626		3,329
Total segment assets		24,795		18,914
Corporate assets		207,044		188,086
Total assets	$	231,839	$	207,000

Net Sales

Net sales for 2014, 2013 and 2012 are as follows (in millions):

	2014		2013		2012
Net sales:
U.S.	$	68,909	$	66,197	$	60,949
China (1)		30,638		25,946		22,797
Other countries		83,248		78,767		72,762
Total net sales	$	182,795	$	170,910	$	156,508

⁽¹⁾  China includes Hong Kong.

Long-Lived Assets

 Long-lived assets as of September 27, 2014 and September 28, 2013 are as follows (in millions):

	2014		2013
Long-lived assets:
U.S.	$	9,108	$	7,399
China (1)		9,477		7,403
Other countries		2,917		2,786
Total long-lived assets	$	21,502	$	17,588

⁽¹⁾  China includes Hong Kong. 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

Information regarding net sales by product for 2014, 2013 and 2012, is as follows (in millions):

	2014		2013		2012
Net Sales by Product:
iPhone (1)	$	101,991	$	91,279	$	78,692
iPad (1)		30,283		31,980		30,945
Mac (1)		24,079		21,483		23,221
iPod (1)		2,286		4,411		5,615
iTunes, Software and Services (2)		18,063		16,051		12,890
Accessories (3)		6,093		5,706		5,145
Total net sales	$	182,795	$	170,910	$	156,508

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

⁽²⁾  Includes revenue from the iTunes Store, the App Store, the Mac App Store, the iBooks Store, AppleCare, licensing and other services.

⁽³⁾  Includes sales of Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.