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Goodwill Impairment

We conducted our annual goodwill impairment test as of May 1, 2012 for all reporting units. This test, which was based on our most recent cash flow forecast, indicated that OSD’s carrying value exceeded its estimated fair value. Accordingly, we recorded a non-cash, non-tax deductible goodwill impairment charge of $6.2 billion during the three months ended June 30, 2012, reducing OSD’s goodwill from $6.4 billion to $223 million.



OTHER INCOME (EXPENSE) AND INCOME TAXES

Other Income (Expense)

The components of other income (expense) were as follows:



 








































(In millions)

  

 

 

 

 

 

 

 

 

 

 













Year Ended June 30,

  

2012

 

 

2011

 

 

2010

 













Dividends and interest income

  

$

   800

  

 

$

   900

  

 

$

   843

  

Interest expense

  

 

(380



 

 

(295



 

 

(151



Net recognized gains on investments

  

 

564

  

 

 

439

  

 

 

348

  

Net losses on derivatives

  

 

(364



 

 

(77



 

 

(140



Net gains (losses) on foreign currency remeasurements

  

 

(117



 

 

(26



 

 

1

  

Other

  

 

1

  

 

 

(31



 

 

14

  

 

 

 

 

 

 

 

 

 

 

Total

  

$

504

  

 

$

910

  

 

$

915

  

 

  

 

 

 

 

 

 

 

 

 

 

 


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