Microsoft Announces Changes to Financial Reporting Structure

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Microsoft today announced that it will change the reporting of its financial results to reflect the company’s strategy and ambitions to build best-in-class platforms and productivity services for a mobile-first, cloud-first world.

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 will announce its financial results for the first quarter on October 22, 2015, and will report financial performance based on these three operating segments. To aid investors with the transition, for the first quarter results only, revenue and gross margin will also be provided for the operating segments that Microsoft reported during fiscal year 2015.

Conference Call

To assist investors in understanding the new operating segments and to answer questions regarding this announcement, Microsoft will hold a conference call at 9:00 a.m. PT on September 29, 2015 with Frank Brod, corporate vice president and chief accounting officer, and Chris Suh, general manager, investor relations. The session may be accessed at The webcast will be available for replay through the close of business on September 29, 2016.

Financial Information

Financial segment information for the four quarters and the full year for fiscal years 2014 and 2015, as if reported under the new operating segment structure, will be available in an 8-K filing and concurrently on the company’s Web site at, prior to the call on September 29, 2015.

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