Goodwill


Notes to Financial Statements

NOTE 8    GOODWILL

Changes in our goodwill balances during the three months ended September 30, 2010 were as follows:

 

(In millions)    Balance     Acquisitions    

Purchase

Accounting
Adjustments

and Other

    Balance  


June 30,

2010

   

September 30,

2010

 

Windows & Windows Live Division

   $ 77      $ 0      $ 12      $ 89   

Server and Tools

     1,118        0        7        1,125   

Online Services Division

     6,373        0        0        6,373   

Microsoft Business Division

     4,024        0        78        4,102   

Entertainment and Devices Division

     802        0        (20 )     782   


 


 


 


Total

   $   12,394      $     0      $     77      $   12,471   
    


 


 


 


We do not expect any of the amounts recorded as goodwill to be deductible for tax purposes. The measurement period for purchase price allocations ends as soon as information on the facts and circumstances becomes available, but will not exceed 12 months. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred. Any change in the goodwill amounts resulting from foreign currency translations are presented as “other” in the above table. Also included within “other” are transfers between business segments due to reorganizations.