Microsoft 2008 Annual Report Download - page 53

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PAGE 52
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
During fiscal year 2008 and 2007, we recorded additions to intangible assets of $1.6 billion and $473 million,
respectively. We estimate that we have no significant residual value related to our intangible assets. The
components of finite-lived intangible assets acquired during fiscal years 2008 and 2007 were as follows:
(In millions)
Year Ended June 30, 2008
2007
Amount
Weighted
average life
Amount
Weighted
average life
Contract-based $91 6 years $57
5 years
Technology-based 787 4 years 333 4 years
Marketing-related 116 5 years 14 4 years
Customer-related 589 6 years 69 5 years
Total $
1
,583
$
473
Intangible asset additions included $694 million of technology-based intangible assets with a weighted-average
life of four years, and $782 million of other intangible assets with a weighted-average life of six years, related to
the acquisitions of aQuantive, FAST, Danger, and 18 other entities acquired. See Note 8 – Acquisitions.
Acquired intangibles generally are amortized on a straight-line basis over weighted average lives. Intangible
assets amortization expense was $472 million for fiscal year 2008, $236 million for fiscal year 2007, and $127
million for fiscal year 2006. The following table outlines the estimated future amortization expense related to
intangible assets as of June 30, 2008:
(In millions)
Y
ear Ended June 30, Amount
2009 $543
2010 495
2011 408
2012 279
2013 and thereafter 248
Total $
1
,973
NOTE 11 INCOME TAXES
The components of the provision for income taxes were as follows:
(In millions)
Y
ear Ended June 30, 2008
2007 2006
Current taxes:
U.S. Federal $ 4,357
$
4,593 $4,471
U.S. State and Local 256 154 101
International 1,007 957 882
Current taxes 5,620 5,704 5,454
Deferred taxes 513 332 209
Provision for income taxes $ 6,133
$
6,036 $5,663