REDMOND, Wash. ( TheStreet) -- Microsoft (MSFT - Get Report) Monday said it expects to record a $6.2 billion charge in its fiscal fourth quarter ended in June in relation to its $6.3 billion acquisition of aQuantive in 2007.
The software giant plans to record a "non-cash, non-tax-deductible income statement charge," for the impairment of goodwill in its Online Services Division, according to a statement released after market close on Monday.
"As a result of its 2012 impairment review, Microsoft has determined that a write down of its Online Services Division goodwill of approximately $6.2 billion is required," the company added. "While the aQuantive acquisition continues to provide tools for Microsoft's online advertising efforts, the acquisition did not accelerate growth to the degree anticipated, contributing to the write down."
Goodwill occurs in an acquisition when the fair value paid for a business is larger than the identifiable net assets.Microsoft does not expect the accounting charge to impact its ongoing business or financial performance. Shares of Microsoft, which have risen more than 17% this year, were down 0.46% to $30.42 in extended trading. -- Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.
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