• Financial Review
• Business Description
• Discussion & Analysis
• Market Risk
• Income Statements
• Balance Sheets
• Cash Flows Statements
• Stockholders' Equity
• Notes

• Accounting Policies
• Earnings Per Share
• Other Income (Expense)
• Investments
• Derivatives
• Fair Value Measurements
• Inventories
• Property and Equipment
• Business Combinations
• Goodwill
• Intangible Assets
• Debt
• Income Taxes
• Unearned Revenue
• Other Long-Term Liabilities
• Commitments & Guarantees
• Contingencies
• Stockholders' Equity
• Other Comprehensive Income
• Employee Stock and Savings Plans
• Segment Information & Geo Data
• Quarterly Information (Unaudited)

• Auditor's Report
• Controls & Procedures

Back To Top

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.