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SEC filing shows the financial breakdown of Microsoft’s new reporting segments

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Published onSeptember 29, 2015

published onSeptember 29, 2015

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More details about Microsoft’s new reporting segments have emerged. As we reported yesterday,Microsoft has announced its new ‘new’ financial reporting structure. Microsoft’s new plan is to trim down the semantic word categorization of its business segments from five to three. Microsoft is moving away from filing its business segments under Devices and Consumers and Commercial areas, each with sub categories such as Hardware, Licensing (in both areas) and undisclosed ‘Other’ sections.The new reporting structure now consist of three neatly titled catch-all segments,Productivity and Business Processes,Intelligent Cloud,andMore Personal Computing. Thanks to folks over atBusiness Insider who caught an SEC fillingdocument from Microsoft, we’re given an early look at which businesses will shine with the company’s new structure.Items of note to consider are the one-time massive write down of the Nokia acquisition that stands at $7.6 billion dollars. There are other “Corporate and Other” segments that aren’t entirely broken out but account for some broader expenses from the company. Some of the “Corporate and Other” segments cover items such as legal disputes, administrative costs and on-going licensing deals.Nevertheless, based on the numbers, it comes as no surprise that Microsoft’s Intelligent Cloud segment is a shining star, and will look to be for some time to come. Items such as Windows Server, Azure Cloud, Visual Studios, and SQL Servers are showing solid growth. Meanwhile, the More Personal Computing segment took a hit as it incurred losses from Xbox One development costs and a free Windows 10 upgrade campaign.

We are also able to see exactly where each of Microsoft’s business areas fall into each of the new reporting segments. As for Microsoft’s Productivity and Business Processes:

Expect Microsoft to spend a lot of time on its new all-star segment, Intelligent Cloud, that now houses:

As much as it would perhaps like to shy away from, rounding up the rear is Microsoft’s More Personal Computing segment that includes all the stuffwelike discussing:

Clearly, Microsoft is hedging its bets by no longer obscuring its businesses in sub-categories and layers of cross reporting. As a whole, each of the three new business segments will need to stand on their own going forward, and Microsoft seems prepared to identify outlying products and services.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

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Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security