Summary
Microsoft Corporation (MSFT) filed this Current Report on Form 8-K on November 26, 2013, to announce the recasting of certain prior period financial amounts. This recasting is primarily to align with changes in its organizational structure, as the company transforms into a "devices and services" company. The new segment reporting, effective from fiscal year 2014, includes segments such as Devices and Consumer (D&C) Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other. Additionally, Microsoft adopted new accounting guidance related to financial instruments and the presentation of items reclassified out of accumulated other comprehensive income (AOCI), both effective July 1, 2013. While these changes affect the presentation and disclosure of financial information and historical segment data, the company explicitly states that this filing does not represent a restatement of previously issued financial statements and does not amend or update previously filed financial statements beyond illustrating these reporting changes.
Key Highlights
- 1Recasting of prior period financial amounts due to organizational structure changes aligned with a 'devices and services' strategy.
- 2New segment reporting structure implemented from FY2014 onwards includes: D&C Licensing, D&C Hardware, D&C Other, Commercial Licensing, and Commercial Other.
- 3Adoption of new accounting guidance for financial instruments disclosure (right to offset) effective July 1, 2013.
- 4Adoption of new accounting guidance for presentation of reclassifications out of Accumulated Other Comprehensive Income (AOCI) effective July 1, 2013.
- 5These changes are for reporting and presentation purposes and do not constitute a restatement of previously issued financial statements.
- 6Recast information pertains to the Company's 2013 Form 10-K and is presented in Exhibits 99.1, 99.2, and 99.3.
- 7The filing clarifies that it does not reflect events occurring after the 2013 Form 10-K filing, referring investors to the Q3 2013 Form 10-Q for subsequent developments.