Question

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.
Foreign
(In thousands of U.S. dollars)	Domestic	United Kingdom	Canada	Western Europe	Other	Total	Worldwide
Sales	\(2,381,054	\)547,527	\(216,726	\)383,784	\(209,354	\)1,357,391	$3,738,445
Operating income	246,780	61,282	34,146	29,146	25,111	146,685	396,465
Identifiable assets	1362,152	265,218	112,620	294,732	143,971	816,541	2,178,693
Capital expenditures	72,712	12,262	13,790	8,253	4,368	38,673	111,385
Depreciation expense	42,279	8,364	3,592	6,355	3,606	21,917	64,196

Instructions

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

Short answer

xport sales must be disclosed if it equals to or exceeds 10% of total revenue.

Step-by-step solution

Meaning of Financial statements

A financial statement is a viable instrument that reflects the performance and financial position of a company. Balance sheets and income statements are a vital portion of financial statements.

Explaining the export sales and their disclosure

Export sales of a domestic operation are sales to customers in other countries. Export sales must be disclosed if they account for 10% or more of the company's total revenue (consolidated revenue).