Microsoft 2010 Annual Report Download - page 56

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55
NOTE 10 — GOODWILL
Changes in the carrying amount of goodwill for fiscal years 2010 and 2009 by segment were as follows:
Balance as
of June 30,
2008
Acquisitions
Purchase
Accounting
Adjustments
and Other
Balance as
of June 30,
2009 Acquisitions
Purchase
Accounting
Adjustments
and Other
Balance as
of June 30,
2010
(In millions)
Windows & Windows
Live Division $ 153
$ 1 $(77)$77
$ 0
$ 0 $ 77
Server and Tools 738
233 67 1,038
82
(2) 1,118
Online Services
Division 6,274
447 (64) 6,657
0
(284) 6,373
Microsoft Business
Division 4,191
0 (264) 3,927
116
(19) 4,024
Entertainment and
Devices Division 752
58 (6) 804
0
(2) 802
Total $ 12,108
$ 739 $ (344) $ 12,503 $ 198
$ (307) $ 12,394
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, 2010. In connection with the disposal of Razorfish, we performed
an interim impairment analysis of our Online Services Division goodwill balance during the first quarter of fiscal year
2010. No impairment of goodwill was identified.
NOTE 11 — INTANGIBLE ASSETS
The components of intangible assets, all of which are finite-lived, were as follows:
(In millions)
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Y
ear Ended June 30, 2010
2009
Contract-based $ 1,075 $ (914) $ 161 $ 1,087 $ (855) $ 232
Technology-based 2,308 (1,521) 787 2,033
(1,090) 943
Marketing-related 114 (86) 28 188
(97) 91
Customer-related 390 (208) 182 732
(239) 493
Total $ 3,887 $ (2,729) $ 1,158 $ 4,040
$ (2,281) $ 1,759
We estimate that we have no significant residual value related to our intangible assets. No material impairments of
intangible assets were identified during any of the periods presented.