Segment Reporting'Theory Presented below is an excerpt from the financial statements of H. J. Heinz Company. Segment and Geographic Data the company is engaged principally in one line of business'processed food products'which represents over 90% of consolidated sales. Information about the business of the company 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.

(a) Why does H. J. Heinz not prepare segment information on its products or services?

(b) What are export sales, and when should they be disclosed?

(c) Why are sales by geographical area important todisclose?

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