Division I$ in thousands) Helicopters Ships Total Automobiles Trucks $10,218,780 952,225 $3,796,432 $1,411,235 $1,003,809 Sales to outside parties Intersegment sales $4,007,304 644,243 307,982 $ 1,003,809 $ 11,171,005 $ 1,411,235 1,004,464 57,893 $ 4,651,547 $ 4,104,414 Total sales. Operating expenses-external Operating expense-internal.. Operating profit before depreciation and amortization.. Depreciation and amortization Interest expense 3,480,666 3,147,086 958,743 8,590,959 289,589 500,798 103,945 952,225 $ 881,292 $ 456,530 $ 348,878 $ (58,879) $ 1,627,821 180,345 170,976 97,638 58,617 507,576 130,655 989,590 Income before tax Income taxes. 376,044 Profit (loss). 613,546 $ 9,993,830 1,008,988 $ 11,002,818 $1,209,970 Segment assets Corporate headquarters assets $3,987,776 $3,209,078 $1,587,006 Total assets. Capital expenditures.. $ 349,776 $ 365,543 $ 276,655 $ 23,695 $ 1,015,669 In compiling notes to the financial statements, CHIC's accountants prepared the following Note to comply with the operating segment disclosure requirements of ASC Topic 280, "Segment Reporting." Note X. Operating Segments ($ in thousands) Automobiles Trucks Other $4,651,547 $ 881,292 $3,987,776 $4,104,414 $ 456,530 $3,209,078 $2,4 15,044 $ 289,999 $2,796,976 Revenues Segment Profit (Loss) Assets
Corcoran Heavy Industries Company (CHIC) is organized into four divisions, each of which operates in a different industry. The types of customer served and the method used to distribute products differ across all four of these industries. In addition, each division must comply with its own unique set of industry regulations related to issues such as safety and recyclability of materials.
Operating profit before
Required
I. Prepare a report for CHIC's management evaluating whether the operating segments disclosures prepared by CHIC's accountants comply with ASC 280.
2. Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization or equity method affiliates.
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