Below you will find select income statement and balance sheet items for Findley Company's operating segments. B Operating Segments (in millions of dollars) Revenue Cost of goods sold Gross margin Depreciation expense Administrative expense Operating profit before taxes Total assets $2,076.0 (626.8) 1,449.2 (193.8) (174.3) $1,081.1 $3,000.0 $350.0 (104.5) 245.5 (45.9) (93.5) $106.1 $430.0 $304.0 (174.1) 129.9 (61.2) (34.0) $34.7 $945.0 D E Total $195.0 $1,375.0 $4,300.0 (104.5) (731.2) (1,741.1) 90.5 643.8 2,558.9 (25.5) (183.6) (510.0) (12.8) (110.5) (425.1) $52.2 $349.7 $1,623.8 $325.0 $2,300.0 $7,000.0 The segments only sell externally, not to each other. Segments D and E are similar in their regulatory environments, processes, products, econoomic characteristics, distribution methods, and customers. Required: 1. According to GAAP, how is 'operating segment' defined? 2. Why are segment disclosures required under GAAP? 3. Determine which of Smith Company's segments are 'reportable.' - Aggregate segements when possible. - Explain which of the quantitative thresholds are met (assets/profit/revenue). Make sure to mention all if more than one. - For any that do not meet the quantitative thresholds. Must they be separately identified