Microsoft 2015 Annual Report Download - page 81

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80
(In millions)
Y
ear Ended June 30, 2015
2014 2013
Gross margin
Devices and Consumer Licensing $ 13,870 $ 17,439 $ 16,985
Hardware:
Computing and Gaming Hardware 1,788 892 956
Phone Hardware 701 54 0
Total Devices and Consumer Hardware 2,489 946 956
Other 2,022 1,393 1,951
Total Devices and Consumer 18,381 19,778 19,892
Commercial Licensing 37,830 38,615 36,280
Other 4,199 1,855 922
Total Commercial 42,029 40,470 37,202
Corporate and Other 132 (493) 370
Total gross margin $60,542 $ 59,755 $57,464
Below are operating expenses by segment group. As discussed above, we do not allocate operating expenses to our
segments.
(In millions)
Y
ear Ended June 30, 2015
2014 2013
Devices and Consumer $ 11,505 $ 11,219 $ 10,625
Commercial 17,177 16,993 16,050
Corporate and Other 3,688 3,657 4,025
Total segment operating expenses 32,370 31,869 30,700
Impairment, integration, and restructuring 10,011 127 0
Total operating expenses $42,381 $ 31,996 $30,700
Below is operating income (loss) by segment group.
(In millions)
Y
ear Ended June 30, 2015
2014 2013
Devices and Consumer $6,876 $ 8,559 $9,267
Commercial 24,852 23,477 21,152
Corporate and Other (13,567 ) (4,277) (3,655)
Total operating income $18,161 $ 27,759 $ 26,764
Corporate and Other operating income includes adjustments to conform our internal accounting policies to U.S.
GAAP, corporate-level activity not specifically attributed to a segment, and impairment, integration, and restructuring
expenses. Significant internal accounting policies that differ from U.S. GAAP relate to revenue recognition, income
statement classification, and depreciation.