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During fiscal years 2011, 2010, and 2009, depreciation expense was $2.0 billion, $1.8 billion, and $1.7 billion, respectively.

NOTE 9 — BUSINESS COMBINATIONS

During fiscal year 2011, we acquired three entities for total consideration of $75 million, substantially all of which was paid in cash. During fiscal year 2010, we acquired five entities for total consideration of $267 million, substantially all of which was paid in cash. During fiscal year 2010, we also sold three entities for total consideration of $600 million, including Razorfish in the second quarter of fiscal year 2010. During fiscal year 2009, we acquired nine entities for total consideration of $925 million, substantially all of which was paid in cash. These entities have been included in or removed from our consolidated results of operations since their acquisition or sale dates, respectively. Pro forma results of operations have not been presented because the effects of these business combinations, individually and in the aggregate, were not material to our consolidated results of operations.



Definitive Agreement with Skype

On May 10, 2011, we announced that we had entered into a definitive agreement with Skype Global S.à.r.l. (“Skype”) under which we would acquire Skype, a leading internet communications company, for $8.5 billion in cash. The acquisition will extend Skype’s brand and reach of its network platform, while enhancing our existing portfolio of real-time communications products and services. The acquisition is subject to regulatory approvals and other customary closing conditions. We obtained regulatory approval in the U.S. and expect to obtain all remaining required regulatory approvals during calendar year 2011.



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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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