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78
2015, 2014, and 2013, respectively, and were expensed as contributed. Matching contributions in the U.S. plan are
invested proportionate to each participant’s voluntary contributions in the investment options provided under the plan.
Investment options in the U.S. plan include Microsoft common stock, but neither participant nor our matching
contributions are required to be invested in Microsoft common stock.
NOTE 22 — SEGMENT INFORMATION AND GEOGRAPHIC DATA
In its operation of the business, management, including our chief operating decision maker, the company’s Chief
Executive Officer, reviews certain financial information, including segmented internal profit and loss statements
prepared on a basis not consistent with U.S. GAAP. The segment information in this note is reported on that basis.
During the periods presented, we reported our financial performance based on the following segments; D&C
Licensing, Computing and Gaming Hardware, Phone Hardware, D&C Other, Commercial Licensing, and Commercial
Other.
On April 25, 2014, we acquired substantially all of NDS. See Note 9 – Business Combinations for additional details.
NDS has been included in our consolidated results of operations since the acquisition date. We report the financial
performance of the acquired business in our Phone Hardware segment. Prior to the acquisition of NDS, financial
results associated with our joint strategic initiatives with Nokia were reflected in our D&C Licensing segment. The
contractual relationship with Nokia related to those initiatives ended in conjunction with the acquisition.
Our reportable segments are described below.
Devices and Consumer
Our D&C segments develop, manufacture, market, and support products and services designed to entertain and
connect people, increase personal productivity, help people simplify tasks and make more informed decisions online,
and help advertisers connect with audiences. Our D&C segments are:
• D&C Licensing, comprising: Windows, including all OEM licensing (“Windows OEM”) and other non-
volume licensing and academic volume licensing of the Windows operating system and related software;
non-volume licensing of Microsoft Office, comprising the core Office product set, for consumers (“Office
Consumer”); Windows Phone operating system, including related patent licensing; and certain other
patent licensing revenue.
• Computing and Gaming Hardware, comprising: Xbox gaming and entertainment consoles and
accessories, second-party and third-party video game royalties, and Xbox Live subscriptions (“Xbox
Platform”); Surface devices and accessories (“Surface”); and Microsoft PC accessories.
• Phone Hardware, comprising: Lumia phones and other non-Lumia phones, beginning with our acquisition
of NDS.
• D&C Other, comprising: Resale, consisting of transactions in our Windows Store and Xbox marketplace;
search advertising; display advertising; Office 365 Consumer, comprising Office 365 Home and Office 365
Personal; Studios, comprising first-party video games; Mojang; non-Microsoft products sold in our retail
stores; and certain other consumer products and services not included in the categories above.
Commercial
Our Commercial segments develop, market, and support software and services designed to increase individual,
team, and organizational productivity and efficiency, including simplifying everyday tasks through seamless
operations across the user’s hardware and software. Our Commercial segments are:
• Commercial Licensing, comprising: server products, including Windows Server, Microsoft SQL Server,
Visual Studio, System Center, and related Client Access Licenses (“CALs”); Windows Embedded; volume
licensing of the Windows operating system, excluding academic (“Windows Commercial”); Microsoft
Office for business, including Office, Exchange, SharePoint, Skype for Business, and related CALs
(“Office Commercial”); Microsoft Dynamics business solutions, excluding Dynamics CRM Online; and
Skype.
• Commercial Other, comprising: Enterprise Services, including Premier Support Services and Microsoft
Consulting Services; Commercial Cloud, comprising Office 365 Commercial, other Microsoft Office online
offerings, Dynamics CRM Online, and Microsoft Azure; and certain other commercial products and online
services not included in the categories above.