Microsoft Changes Its Financial Reporting Structure
Microsoft will change the reporting of its financial results to reflect the companys focus on cloud and mobile businesses. Beginning in fiscal year 2016, the company will report revenue and operating income based on three operating segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
The Productivity and Business Processes segment includes results from Office and Office 365 for commercial and consumer customers, as well as Dynamics and Dynamics CRM Online.
The Intelligent Cloud segment includes results from public, private and hybrid server products and services such as Windows Server, SQL Server, System Center, Azure, and Enterprise Services.
The More Personal Computing segment includes results from licensing of the Windows operating system, devices such as Surface and phones, gaming including Xbox consoles, and search.
The company previously reported under six segments, which were lumped together under two broad categories - Devices & Consumer and Commercial.
The company will announce its financial results for the first quarter on October 22, 2015, and will report financial performance based on these three operating segments.