Case 10.14 LO 5 Calculate ROI for geographic segments; analyze result McDonald's Corp. McDonald's conducts operations worldwide and is managed in three primary geographic segments: U.S.; Europe; and Asia/Pacific, Middle East and Africa (APMEA). A hybrid geographic/corporate segment (Other Countries and Corporate) reports on the results of Canada and Latin America as well as any unallocated amounts. McDonald's allocates resources to, and evaluates the performance of, its segments based on operating income. The asset totals disclosed by geography are directly managed by those regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Corporate assets primarily include cash and cash equivalents, investments, deferred tax assets, and other assets. Refer to the following geographic segment data (in millions) from the 2014 annual report of McDonald's Corp.: Other Countries & Corporate U.S. Europe APMEA. Total Company 2014 8,561 $11,077 $6,324 $1,389 $27,441 2013 8,851 11,300 6,447 1,477 28,105 10,827 6,391 2012 8,814 25,657 Operating income 2014 3,553 3,280 $1.066 7,949 3,371 1.480 2013 3,779 135 8,765 2012 3,750 3,196 8,604 Depreciation and 1,644 amortization expense 2014 512 660 338 134 2013 627 319 135 2012 477 574 296 142 1,489 Assets 2014 $11,872 $12,811 $5,885 $3,713 $34,281 2013 11,712 15,096 6,203 3,615 36,626 2012 11,432 14,223 6,419 3,312 35,386 Required