Accounting Policies
Stock Split
Accounting Changes
Unearned Revenue
Cash and Short-Term Investments
Inventories
Property and Equipment
Equity and Other Investments
Goodwill
Intangible Assets
Derivatives
Investment Income/(Loss)
Income Taxes
Stockholders' Equity
Other Comprehensive Income
Employee Stock and Savings Plans
Earnings Per Share
Acquisitions
Commitments and Guarantees
Contingencies
Segment Information
Note 9-Goodwill
During fiscal 2003, goodwill increased
by approximately $1.7 billion. The increase related principally to the
following acquisitions: Navision a/s with $1.2 billion allocated to Microsoft Business Solutions, $281 million for the Rare, Ltd.
acquisition allocated to Home and Entertainment,
and Placeware, Inc. with $180 million allocated to Information
Worker. No impairment was charged to goodwill during fiscal 2003. During
fiscal 2002, goodwill was reduced by $85 million, principally in connection
with our exchange of all of the 33.7 million shares and warrants we owned of
Expedia, Inc. to USA Networks, Inc. No goodwill was acquired or impaired during
fiscal 2002. Goodwill by segment was as follows:
(In millions) |
|
|
|
|
June 30 |
|
2002 |
|
2003 |
|
|
|
|
|
Client |
|
$ 26 |
|
$ 37 |
Server and Tools |
|
97 |
|
106 |
Information Worker |
|
- |
|
180 |
Microsoft Business Solutions |
|
1,021 |
|
2,219 |
MSN |
|
160 |
|
154 |
Mobile and Embedded Devices |
|
5 |
|
28 |
Home and
Entertainment |
|
117 |
|
404 |
Goodwill |
|
$ 1,426 |
|
$
3,128 |
|