NOTE 10 — GOODWILL

Changes in the carrying amount of goodwill were as follows:


(In millions)		June 30, 2012		Acquisitions		Other			June 30, 2013		Acquisitions			Other			June 30, 2014


Devices and Consumer	Licensing	$	866	$	0	$	0		$	866	$	0		$	2		$	868
	Hardware:
	Computing and Gaming Hardware		1,641		75		(27	)		1,689		0			9			1,698
	Phone Hardware		0		0		0			0		5,458	^(a)		(104	)		5,354

	Total D&C Hardware		1,641		75		(27	)		1,689		5,458			(95	)		7,052
	Other		742		0		(4	)		738		0			0			738

	Total Devices and Consumer		3,249		75		(31	)		3,293		5,458			(93	)		8,658

Commercial	Licensing		10,054		4		(7	)		10,051		2			5			10,058
	Other		149		1,164		(2	)		1,311		105			(5	)		1,411

	Total Commercial		10,203		1,168		(9	)		11,362		107			0			11,469

Total goodwill		$	13,452	$	1,243	$	(40	)	$	14,655	$	5,565		$	(93	)	$	20,127

(a)	Goodwill acquired during fiscal year 2014 related to the acquisition of NDS. See Note 9 – Business Combinations for additional details.

The measurement periods for the valuation of assets acquired and liabilities assumed end as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but do not exceed 12 months. Adjustments in purchase price allocations may require a recasting of the amounts allocated to goodwill retroactive to the periods in which the acquisitions occurred.

Any change in the goodwill amounts resulting from foreign currency translations are presented as “Other” in the above table. Also included in “Other” are business dispositions and transfers between business segments due to reorganizations, as applicable.

As discussed in Note 21 – Segment Information and Geographic Data, during the first quarter of fiscal year 2014, we changed our organizational structure as part of our transformation to a devices and services company. This resulted in a change in our operating segments and reporting units. We allocated goodwill to our new reporting units using a relative fair value approach. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Goodwill Impairment

We test goodwill for impairment annually on May 1 at the reporting unit level using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital. We believe use of a discounted cash flow approach is the most reliable indicator of the fair values of the businesses.

No impairment of goodwill was identified as of May 1, 2014 or May 1, 2013. Upon completion of the fiscal year 2012 test, the goodwill of our OSD unit (in Devices and Consumer Other under our current segment structure) was determined to be impaired. The impairment was the result of the OSD unit experiencing slower than projected growth in search queries and search advertising revenue per query, slower growth in display revenue, and changes in the timing and implementation of certain initiatives designed to drive search and display revenue growth in the future. This goodwill impairment charge of $6.2 billion also represented our accumulated goodwill impairment as of June 30, 2014 and 2013.