In its 10-Q filings with the U.S. Securities and Exchange Commission, Microsoft reports revenues and operating income or loss in the following seven categories:

Client includes the company's desktop and embedded operating systems (OSs), such as Windows XP, Windows 2000 Professional, Windows NT Workstation, and Windows Me.

Information Worker includes desktop applications, such as Office, Visio, and Project; related server products (e.g., Project Server); and Professional Support.

Server Platforms (previously called "Servers and Tools") includes all Windows servers and server applications, such as SQL and Exchange, and Client Access Licenses (CALs) for these products; developer tools and services; Microsoft Press; and various enterprise services, including consulting, Premier Support, and training.

Home and Entertainment includes Xbox consoles and games, PC games, learning and productivity software, Mac software, and hardware such as mice and keyboards.

MSN includes MSN Internet Access and all MSN Web sites.

Business Solutions includes all Great Plains, Solomon, Navision, and Axapta applications; other business productivity applications, such as MSCRM; and bCentral.

CE/Mobility includes Windows CE and mobile platforms, such as Pocket PC and Smartphone.

This chart shows revenues and income or loss for the quarter ending Sept. 30, 2002, and the same quarter a year ago, in each of Microsoft's seven businesses. The figures in this chart use Microsoft's internal accounting methods, which differ in some ways from Generally Accepted Accounting Principles (GAAP).

The second to the last row, Reconciling Amounts, includes revenue components and expenses that Microsoft, in its internal accounting methods, does not allocate to any single business segment, such as general and administrative expenses, broad-based research and development, and corporate-level sales and marketing costs; it also reconciles differences between Microsoft's internal accounting methods and GAAP.

All figures in millions of U.S. dollars.

¹These figures include results from Expedia, which Microsoft sold in Q3'02.

Back to associated article: Desktop Central to Microsoft Profits