Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), the parent company of Google announced that its financial results for the fourth quarter of 2015 will have a new format particularly its segment reporting.
Since the tech giant completed its reorganization in October, its management has been working hard to make the necessary internal changes to make Alphabet’s financial results more transparent for shareholders.
Alphabet Chief Accountant Amie Thuener said they expect the public holding company’s structure to” bring increased focus, accountability and transparency…”
Alphabet to report two segments
According to Thuener, Alphabet will report its financial reports with two segments—Google and Other Bets.
The Google Segment will include the company’s main internet products such as each, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play. It will also consist of its hardware products as Chromebooks, Chromecast, and Nexus as well as its technical infrastructure and newer efforts like Virtual Reality.
Its Other Bets segment is composed of Access/Google Fiber, Calico, Nest, Verily (formerly Google Life Sciences), GV (formerly Google Ventures), Google Capital, X (formerly Google [X]) and other initiatives.
Each segment has six key financial disclosures:
- Segment operating income / (loss), excluding stock-based compensation expense
- Stock-based compensation
- Segment operating income / (loss)
- Capital expenditures
- Depreciation, amortization and impairments
Alphabet’s consolidated reporting will not change. The public holding company will continue to show Google’s advertising revenue and break down TAC by Sites and Network. It will also continue to post the company’s monetization metrics (click and CPC growth) as a whole and separately for Sites and Network.
Alphabet revenue breakout
Alphabet made some changes in its revenue breakout, which will be presented just like the one below in its press release. The company is scheduled to report its quarterly financial results on February 1.