Microsoft 2011 Annual Report Download - page 76

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76
We have recast certain prior period amounts within this note to conform to the way we internally managed and
monitored segment performance during the current fiscal year, including moving Microsoft’s PC hardware
business from Entertainment and Devices Division to Windows & Windows Live Division, Windows Embedded
from Entertainment and Devices Division to Server and Tools, and Office for Mac from Entertainment and Devices
Division to Microsoft Business Division, as well as implementing intersegment cost allocations between all
segments related to the collaborative investment in mobile platform development.
The principal products and services provided by each segment are summarized below:
Windows & Windows Live Division – Windows & Windows Live Division offerings consist of multiple editions of
the Windows operating system, software and services through Windows Live, and Microsoft PC hardware
products.
Server and Tools – Server and Tools product and service offerings include Windows Server, Microsoft SQL
Server, Windows Azure, Windows Embedded device platforms, and Enterprise Services. Enterprise Services
comprise Premier product support services and Microsoft Consulting Services.
Online Services Division – Online Services Division offerings include Bing, MSN, and advertiser tools.
Microsoft Business Division – Microsoft Business Division offerings include Microsoft Office, SharePoint,
Exchange, Lync, and Microsoft Dynamics business solutions.
Entertainment and Devices Division – Entertainment and Devices Division offerings include the Xbox 360
entertainment platform, including Kinect for Xbox 360, Mediaroom (our Internet protocol television software), and
Windows Phone.
Segment revenue and operating income (loss) were as follows during the periods presented:
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Revenue
Windows & Windows Live Division $ 18,778 $ 18,792 $ 15,563
Server and Tools 17,107
15,390 14,686
Online Services Division 2,528
2,200 2,110
Microsoft Business Division 21,986
19,345 19,211
Entertainment and Devices Division 8,716
6,224 6,416
Unallocated and other 828
533 451
Consolidated $ 69,943
$ 62,484 $ 58,437
(In millions)
Y
ear Ended June 30, 2011 2010 2009
Operating Income (Loss)
Windows & Windows Live Division $ 11,968 $ 12,253 $ 9,372
Server and Tools 6,453 5,320 4,627
Online Services Division (2,638) (2,410) (1,749)
Microsoft Business Division 13,827 11,642 11,153
Entertainment and Devices Division 1,135 573 288
Reconciling amounts (3,584) (3,280) (3,328)
Consolidated $ 27,161 $ 24,098 $ 20,363
Reconciling amounts in the tables above and below include adjustments to conform our internal accounting
policies to U.S. GAAP and corporate-level activity not specifically attributed to a segment. Significant internal
accounting policies that differ from U.S. GAAP relate to revenue recognition, income statement classification,
depreciation, and amortization of stock-based awards.
Significant reconciling items were as follows: