Ahead of its fourth quarter 2015 earnings report on February 1, Alphabet, Google's holding company, has provided insights on how it will disclose earnings for its businesses. The main crux is that Alphabet says it will report earnings split into two segments: Google and "Other Bets." For each segment, Alphabet will report the following line items:
- Revenues
- Segment operating income / (loss), excluding stock-based compensation expense
- Stock-based compensation
- Segment operating income / (loss)
- Capital expenditures
- Depreciation, amortization and impairments
Consolidated reporting will remain the same, but the new segmented approach will give investors a closer insight into how businesses like Google Fiber, Nest, Verily and other "bets" are paying off. Meanwhile, the Google segment will continue to provide a look at how Google's combined properties, products and hardware are performing.
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