The following excerpt is from the financial statements of H. J. Heinz Company and provides segmented geographic data:
The company is engaged principally in one line of business€”processed food products€”that represents more than 90% of consolidated sales. Information about the company business by geographic area is presented in the table below.
There were no material amounts of sales or transfers between geographic areas or between affiliates, and no material amounts of United States export sales.

Instructions
(a) Why does H. J. Heinz not prepare segment information on its products or services?
(b) Why are revenues by geographic area important to disclose?

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Foreign (in thousands of U.S. dollars) Western Domestic Kingdom Canada urope United Other Total Worldwide Sales$2,381,054 $547,527 $216,726 $383,784 $209,354 $1,357,391 $3,738,445 Operating income Identifiable assets 1,362,152 265,218 112,620 294,732 143,971 816,541 2,178,693 Capital expenditures Depreciation expense 42,279 8,364 3,592 6,355 3,606 21,917 64,196 246,780 61,282 34,146 29,146 25,111 149,685 396,465 72,712 12,262 13,790 8,253 4,368 38,673 111,385