XML 24 R16.htm IDEA: XBRL DOCUMENT
v3.25.1

BUSINESS COMBINATIONS | 9 Months Ended
--- | ---
Mar. 31, 2025
Business Combinations [Abstract] |
BUSINESS COMBINATIONS | NOTE 7 — BUSINESS COMBINATIONS Activision Blizzard, Inc. On October 13, 2023, we completed our acquisition of Activision Blizzard, Inc. (“Activision Blizzard”) for a total purchase price of $75.4 billion, consisting primarily of cash. Activision Blizzard is a leader in game development and an interactive entertainment content publisher. The acquisition will accelerate the growth in our gaming business across mobile, PC, console, and cloud gaming. The financial results of Activision Blizzard have been included in our consolidated financial statements since the date of the acquisition. Activision Blizzard is reported as part of our More Personal Computing segment. The allocation of the purchase price to the assets acquired and liabilities assumed was completed as of September 30, 2024. The major classes of assets and liabilities to which we have allocated the purchase price were as follows:
(In millions) |
Cash and cash equivalents |  | $ | 12,976 |
Goodwill |  |  | 51,001 |
Intangible assets |  |  | 21,969 |
Other assets |  |  | 2,503 |
Long-term debt |  |  | (2,799 | )
Long-term income taxes |  |  | (1,946 | )
Deferred income taxes |  |  | (4,676 | )
Other liabilities |  |  | (3,620 | )
Total purchase price |  | $ | 75,408 |
Goodwill was assigned to our More Personal Computing segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of Activision Blizzard. Substantially all of the goodwill is expected to be non-deductible for income tax purposes. Following are the details of the purchase price allocated to the intangible assets acquired:
(In millions, except average life) |  | Amount |  |  | Weighted Average Life |
Marketing-related |  | $ | 11,619 |  |  |  | 24 years |
Technology-based |  |  | 9,689 |  |  |  | 4 years |
Customer-related |  |  | 661 |  |  |  | 4 years |
Fair value of intangible assets acquired |  | $ | 21,969 |  |  |  | 15 years |
Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:
(In millions, except per share amounts) |  |  | Three Months Ended March 31, |  |  |  | Nine Months Ended March 31, |
|  | 2024 |  |  | 2024 |
Revenue |  | $ | 61,856 |  |  | $ | 182,717 |
Net income |  |  | 21,931 |  |  |  | 66,278 |
Diluted earnings per share |  |  | 2.94 |  |  |  | 8.88 |
These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are not the results that would have been realized had we been a combined company during the periods presented and are not necessarily indicative of our consolidated results of operations in future periods. The pro forma results include adjustments related to purchase accounting, primarily amortization of intangible assets. Acquisition costs and other nonrecurring charges were immaterial and are included in the earliest period presented.

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent + Details
Name: | us-gaap_MergersAcquisitionsAndDispositionsDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration