Microsoft changes financial reporting structure

News Article - 20 July 2006
Category: Regulatory

Microsoft is to change its financial reporting structure as a result of merging some departments.

Beginning in the 2007 fiscal year, the company will report its financial performance based on five operating segments, rather than seven.

It has merged its Information Worker and Microsoft Business Solutions businesses, meaning the financial results for the two businesses will be presented as one operating segment.

Microsoft has also merged the Home and Entertainment, and Mobile and Embedded Devices businesses. Their financial results will also be presented as one operating segment.

Reducing the number of segments comes as the company increasingly structures itself around three operating divisions - Microsoft Platforms and Services Division, Microsoft Business Division, and Microsoft Entertainment and Devices Division - created to give it "greater agility" in managing its growth.

The company will announce financial results for its fiscal fourth quarter on July 20, 2006 for the seven business segments under which the company operated in fiscal year 2006, and will provide fiscal year 2007 guidance under the new operating segment structure.

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