Go to H. J. Heinz’s Web site and obtain a copy of its most recent annual report.
a. What are Heinz’s business segments? Are Heinz’s operating segments based on product/ industry or geographic groupings?
b. Examine the segment-disclosure totals for revenues, profits, and assets. Do they agree with the totals reported in the consolidated financial statements?
c. How significant is intersegment revenue? From this analysis, is Heinz primarily horizontally or vertically integrated, or a conglomerate?
d. What geographical area provides most of Heinz’s revenues? Would you consider Heinz a multinational corporation? Why or why not?
e. Qualitatively, do you consider Heinz’s segmental reporting to be adequate? What additional information or details would you like to see disclosed regarding its segments?