Microsoft Corporation Annual Report 2005
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NOTES TO FINANCIAL STATEMENTS

NOTE 6    INVENTORIES

(In millions)
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June 30 2004 spacer 2005
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Finished goods $271   $422
Raw materials and work in process 150   69
    Inventories $421   $491

We recorded lower of cost or market adjustments totaling approximately $90 million in fiscal year 2004.

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