NOTE 8: GOODWILL

Goodwill is the purchase price minus the fair value of net assets we’ve acquired through business acquisitions and combinations.

This note includes information about:

• changes in the carrying amount of our goodwill;
• specific adjustments to goodwill; and
• how we determine and annually assess goodwill.

Changes in the Carrying Amount of Goodwill During Our Last Two Fiscal Years

(Click to view entire chart)

SPECIFIC ADJUSTMENTS TO GOODWILL
During 2007, specific adjustments to the amount of goodwill we carry included:

• $30 million for impairment of goodwill associated with the Canadian and certain U.S. building materials distribution centers; and
• $52 million for the effect of foreign currency translation primarily related to the Wood Products segment.

During 2006, specific adjustments to the amount of goodwill we carry included:

• $749 million for impairment of goodwill associated with the fine paper reporting unit included in discontinued operations; and
• $39 million for tax adjustments related to the acquisition of Willamette Industries and MacMillan Bloedel.

HOW WE DETERMINE AND ACCOUNT FOR GOODWILL
The Goodwill section of Note 1: Summary of Significant Accounting Policies provides details about how we determine and annually assess the amount of goodwill we carry.