Summary
This Form 8-K filing by Apple Inc. on January 28, 2015, primarily serves to provide updated financial information and disclosures related to changes in its reportable operating segments and product-level net sales reporting. These updates align the company's reporting with how management now oversees and makes decisions about the business, shifting from a retail-specific segment to a geographic segmentation (Americas, Europe, Greater China, Japan, and Rest of Asia Pacific). This change also includes the allocation of certain previously unallocated corporate expenses, such as share-based compensation, to these new operating segments. It's important for investors to note that this filing does not alter Apple's previously reported consolidated financial statements from its Form 10-K for the fiscal year ended September 27, 2014, but rather provides updated segment data to reflect ongoing operational management and decision-making processes. The updated segment and product net sales reporting information is furnished through updated exhibits (99.1 and 99.2) which are incorporated into the company's 2014 Form 10-K. Apple began reporting comparative results under this new segmentation with its Form 10-Q for the quarter ended December 27, 2014. Investors relying on historical segment performance or geographical revenue breakdowns should consult these updated disclosures for the most accurate, current view of Apple's operational structure and financial reporting.
Key Highlights
- 1Apple Inc. is updating its reportable operating segments to align with how management currently oversees and makes business decisions, primarily on a geographic basis.
- 2The company is now reporting segments as: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific.
- 3Retail is no longer presented as a separate reportable operating segment.
- 4Certain costs, including some share-based compensation, previously in corporate expenses are now being allocated to operating segments.
- 5Product-level net sales reporting categories have also been updated to reflect evolving products and services.
- 6This filing provides updated information within previously filed financial statements (Form 10-K for FY2014) and does not change the consolidated financial results.
- 7Comparative results reflecting these changes began with the Form 10-Q for the quarter ended December 27, 2014.