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In: Accounting

Locate the financial statements of Microsoft's segmented financial information. Prepare an overview of what is revealed...

Locate the financial statements of Microsoft's segmented financial information. Prepare an overview of what is revealed about the company through its segmented data. Discuss the benefits of reporting financial information this way.

We report our financial performance based on the following segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The segment amounts included in MD&A are presented on a basis consistent with our internal management reporting. All differences between our internal management reporting basis and accounting principles generally accepted in the United States of America (“GAAP”), along with certain corporate-level and other activity, are included in Corporate and Other.

SEGMENT RESULTS OF OPERATIONS

(In millions, except percentages) 2019 2018 2017 Percentage
Change 2019
Versus 2018
Percentage
Change 2018
Versus 2017
Revenue
Productivity and Business Processes $ 41,160 $ 35,865 $ 29,870 15% 20%
Intelligent Cloud 38,985 32,219 27,407 21% 18%
More Personal Computing 45,698 42,276 39,294 8% 8%
Total $ 125,843 $ 110,360 $ 96,571 14% 14%
Operating Income (Loss)
Productivity and Business Processes $ 16,219 $ 12,924 $ 11,389 25% 13%
Intelligent Cloud 13,920 11,524 9,127 21% 26%
More Personal Computing 12,820 10,610 8,815 21% 20%
Corporate and Other 0 0 (306) * *

Total

$ 42,959 $ 35,058 $ 29,025      23%

21%

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