EVALUATION LASE-UPERATING SEGIVENT DISCLOSURES CP Corcoran Ileavy Industries Company (CIC) is organized into four divisions, each of which operates in a different industry. The types of customer served and the method used to distribute products differ across all four of these industries. In abilition, cuch division must comply with its twn unique act of industry regulating related issues such as safely and recyclability of materials. Operating profit before depreciation and amortization is the measure of profit regularly used by the chicf operating decision maker for evaluating the performance of cach of these divisions. In addition, information for cach division on capital expenditures and depreciation and amortization is routinely provided by corporate headquarters to the chief operating decision maker. A summary of the information provided to the chief operating decision maker at the end of the current year is as follows: Division llelicopters $1,411,235 Total Ships $1,003,819 Automobiles $4,007,304 644.243 $4,651.547 3,480.666 289,589 $ 881,292 180.345 Trucks 53,796,432 307.982 S4.104,414 3.147,086 500.798 S 456,530 170,976 $1.411.235 1,004,464 57,893 $ 348,878 97.638 $1,003.809 958,743 103.945 $ (58.879) 58,617 ($ in thousands Sales to outside parties Intereymunl sules Total sales Operating expensesexternal Operuling expense internal Operating profit before depreciation and amortization Depreciation and amortization Interest expense Income before lax Income taxes Profit (loss) Scient une Corporate headquarters assets Total assets Capital expenditures $10,218,780 952,225 $11,171,005 8.590,95!) 952,225 $1,627,821 507.576 130,655 $ 989,590 376.044 $ 613,546 $ 9,993,830 1.008.988 $11,002,818 $1,015,669 $3.987,776 S3,209.078 $1,587,006 $1,209,970 $ 349,776 S 365.543 S 276,655 $ 23.695 In compiling notes to the financial statements, CILIC's accountants prepared the following Note to comply with the operating segnient disclosure requirements of ASC Topic 280, "Segment Reporting" Note X. Operating Segments IS in Thousands) Revenues Segment Profit (Loss) Assets Automobiles $4,451.547 S 881,292 S3,987,776 Trucks $4,104.414 $ 456,530 $3.209,078 Other $2,415.044 $ 289.999 $2.796,976 Required Page 402 1. Prepare a report for CHIC's management evaluating whether the operating segments disclosures prepared by CHIC's accountants comply with ASC 280. 2. Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates. EVALUATION LASE-UPERATING SEGIVENT DISCLOSURES CP Corcoran Ileavy Industries Company (CIC) is organized into four divisions, each of which operates in a different industry. The types of customer served and the method used to distribute products differ across all four of these industries. In abilition, cuch division must comply with its twn unique act of industry regulating related issues such as safely and recyclability of materials. Operating profit before depreciation and amortization is the measure of profit regularly used by the chicf operating decision maker for evaluating the performance of cach of these divisions. In addition, information for cach division on capital expenditures and depreciation and amortization is routinely provided by corporate headquarters to the chief operating decision maker. A summary of the information provided to the chief operating decision maker at the end of the current year is as follows: Division llelicopters $1,411,235 Total Ships $1,003,819 Automobiles $4,007,304 644.243 $4,651.547 3,480.666 289,589 $ 881,292 180.345 Trucks 53,796,432 307.982 S4.104,414 3.147,086 500.798 S 456,530 170,976 $1.411.235 1,004,464 57,893 $ 348,878 97.638 $1,003.809 958,743 103.945 $ (58.879) 58,617 ($ in thousands Sales to outside parties Intereymunl sules Total sales Operating expensesexternal Operuling expense internal Operating profit before depreciation and amortization Depreciation and amortization Interest expense Income before lax Income taxes Profit (loss) Scient une Corporate headquarters assets Total assets Capital expenditures $10,218,780 952,225 $11,171,005 8.590,95!) 952,225 $1,627,821 507.576 130,655 $ 989,590 376.044 $ 613,546 $ 9,993,830 1.008.988 $11,002,818 $1,015,669 $3.987,776 S3,209.078 $1,587,006 $1,209,970 $ 349,776 S 365.543 S 276,655 $ 23.695 In compiling notes to the financial statements, CILIC's accountants prepared the following Note to comply with the operating segnient disclosure requirements of ASC Topic 280, "Segment Reporting" Note X. Operating Segments IS in Thousands) Revenues Segment Profit (Loss) Assets Automobiles $4,451.547 S 881,292 S3,987,776 Trucks $4,104.414 $ 456,530 $3.209,078 Other $2,415.044 $ 289.999 $2.796,976 Required Page 402 1. Prepare a report for CHIC's management evaluating whether the operating segments disclosures prepared by CHIC's accountants comply with ASC 280. 2. Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates