I have a package structure: com.report.domain.model
I would like to change it to com.reporting.domain.model. When I select Refactor → Rename on pac
User jkovacs has already answered this, but I'm going to cover this in a bit more detail. For example, if you want to change com.example.app to my.awesome.game, then:
In your Project pane, click on the little gear icon (
)
Uncheck / de-select the Compact Empty Middle Packages option:

Your package directory will now be broken up in individual directories.
Individually select each directory you want to rename, and:
RefactorRenameRename Package instead of Rename DirectoryNote: When renaming com in Android Studio, it might give a warning. In such case, select Rename All:

Now open your Gradle Build File (build.gradle - Usually app or mobile). Update the applicationId to your new Package Name and Sync Gradle, if it hasn't already been updated automatically:

Done! Anyway, Android Studio needs to make this process a little simpler.
In the Project Window, click on the Gears icon in the title bar
and deselect "Compact Empty Middle Packages". Then you can separately select the report package and rename it.
See also: http://www.jetbrains.com/idea/webhelp/project-tool-window.html#d242351e401
N.B. As of IntelliJ IDEA 2016.3, there is a bug in the menu and when the option is selected, it has a different label "Hide Empty Middle Packages", see https://youtrack.jetbrains.com/issue/IDEA-168362.