Goodwill


Notes to Financial Statements

NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill for fiscal years 2011 and 2010 by segment were as follows:

 

    

Balance as

of June 30,

2009

    Acquisitions    

Purchase

Accounting

Adjustments

and Other

   

Balance as

of June 30,

2010

    Acquisitions    

Purchase

Accounting

Adjustments

and Other

   

Balance as

of June 30,

2011

 


(In millions)                                           

Windows & Windows Live Division

   $ 77      $ 0      $ 0      $ 77      $ 0      $ 12      $ 89   

Server and Tools

     1,038        82        (2     1,118        13        8        1,139   

Online Services Division

     6,657        0        (284     6,373        0        0        6,373   

Microsoft Business Division

     3,927        116        (19     4,024        4        139        4,167   

Entertainment and Devices Division

     804        0        (2     802        30        (19     813   


 


 


 


 


 


 


Total

   $   12,503      $   198      $   (307   $   12,394      $   47      $   140      $   12,581   
    


 


 


 


 


 


 


None of the amounts recorded as goodwill are expected 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” for fiscal year 2010 is $285 million of goodwill associated with business dispositions. See also Note 9 – Business Combinations.

We test goodwill for impairment annually on May 1 at the reporting unit level using a fair value approach. No impairment of goodwill was identified as of May 1, 2011.