Segment Reporting

ASC 280 requires public entities to report segment information under the "management approach": operating segments are the components whose discrete results the chief operating decision maker (CODM) regularly reviews to allocate resources and assess performance (280-10-50-1), with aggregation permitted only under the five similarity criteria (280-10-50-11) and reportability driven by the 10 percent revenue/profit/asset thresholds and the 75 percent of consolidated revenue floor (280-10-50-12 through 50-14). Reportable segments must disclose a measure of profit or loss, total assets, specified items such as interest, depreciation and tax expense, significant segment expense categories and "other segment items," plus reconciliations to consolidated amounts (280-10-50-22 through 50-31); all public entities, even those with one reportable segment, give entity-wide disclosures about products and services, geographic areas, and major customers (280-10-50-39 through 50-42). The industry subtopics add almost nothing: 280-908 (airlines) is entirely "Section not used," 280-932 (oil and gas) simply points to 932-235-50-22 through 50-23, 280-924 treats a nonpublic casino and its hotel, restaurant and parking operations as one industry segment while requiring geographic information across legal jurisdictions, and 280-954 clarifies that an insurer paying for a patient's care is not the health care facility's "customer" for major-customer disclosures. The core idea is that segment reporting mirrors how management actually runs and measures the business rather than any externally imposed segmentation.

Subtopics

1. 10Overall135 ¶

   ASC 280-10 requires public entities to disclose information about their operating segments using the "management approach" — segments are the components whose discrete financial results the chief operating decision maker (CODM) regularly reviews to allocate resources and assess performance (280-10-50-1). Operating segments that meet the 10 percent revenue, profit/loss, or asset thresholds (or are needed to reach the 75 percent of consolidated revenue floor) are reportable, and the entity must disclose segment profit or loss, assets, significant segment expenses, and reconciliations to consolidated amounts. All public entities, including single-reportable-segment entities, must also give entity-wide disclosures about products and services, geographic areas, and major customers.

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2. 908Airlines3 ¶

   ASC 280-908 is the airlines-industry subtopic of the segment reporting topic, but it contains no substantive guidance — its Overview/Background, Scope, and Other Presentation Matters sections are all marked "Section not used." Airlines therefore apply the general segment reporting requirements of ASC 280-10 (operating segments, aggregation criteria, reportable segment thresholds, and entity-wide disclosures) without any airline-specific modification in this subtopic.

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3. 924Entertainment—Casinos3 ¶

   This Subtopic applies segment reporting to casino entities. A nonpublic casino property that also contains a hotel, restaurant, parking garage and similar amenities is generally treated as a single industry segment, because allocating costs among the interdependent operations to measure each one's contribution to operating profit would be arbitrary and not meaningful. However, nonpublic casino entities that operate in multiple legal jurisdictions may have geographic segments and must report that geographic information (280-924-50-1).

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4. 932Extractive Activities—Oil and Gas3 ¶

   ASC 280-932 is a short "pointer" subtopic that addresses segment reporting as it applies to oil and gas producing activities. It contains no substantive requirements of its own: its scope mirrors that of the oil and gas Overall Subtopic (932-10-15), and it directs preparers to the industry-specific segment disclosure requirements located with the other oil and gas disclosures in 932-235-50-22 through 50-23.

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5. 954Health Care Entities4 ¶

   This industry subtopic applies the general segment reporting rules to investor-owned health care entities. Its single substantive rule is that, for purposes of the major-customer disclosures in paragraph 280-10-50-42, an insurer that merely pays for a patient's care is not the health care facility's "customer." The customer is identified by who decides which services to purchase and from which facility.

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