Adobe 1998 Annual Report Download - page 51

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
NOTE 4. PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
November 27 November 28
1998 1997
Land .............................................. $ 7,421 $ 782
Building ............................................ 4,477 4,477
Equipment .......................................... 156,324 141,067
Furniture and fixtures .................................. 28,464 21,243
Leasehold improvements ................................ 24,829 19,916
221,515 187,485
Less accumulated depreciation and amortization ............... 127,628 106,507
$ 93,887 $ 80,978
NOTE 5. OTHER ASSETS
Other assets consisted of the following:
November 27 November 28
1998 1997
Investments ......................................... $ 56,332 $ 35,689
Purchased technology and licensing agreements ............... 3,502 5,043
Restricted funds and security deposits ...................... 130,260 102,962
Intangibles and other assets .............................. 27,527 45,097
217,621 188,791
Less accumulated amortization ........................... 16,769 25,643
$200,852 $163,148
The Company owns a minority interest in certain companies and a majority interest in Adobe
Ventures L.P. and Adobe Ventures II, L.P. The limited partnership investments are accounted for under
the equity method as contractually the partnerships are controlled by the general partner, a third party.
The investments in Adobe Ventures L.P. and Adobe Ventures II, L.P., which were established to
enable the Company to invest in emerging technology companies strategic to Adobe’s software business,
totaled $20.0 million and $22.3 million, respectively, as of November 27, 1998 and $18.9 million and
$6.9 million, respectively, as of November 28, 1997. The investments in the limited partnerships are
adjusted to reflect the Company’s share of Adobe Ventures L.P. and Adobe Ventures II, L.P.’s investment
income (loss) and dividend distributions, which totaled $346,000, $(1.3) million, and $17.8 million in fiscal
years 1998, 1997, and 1996, respectively. Adobe Ventures L.P. and Adobe Ventures II, L.P. carry their
investments in equity securities at an estimated fair market value, and unrealized gains and losses are
included in investment income (loss). Substantially all of the technology companies held by the limited
partnerships at November 27, 1998 are not publicly traded, and therefore, there is no established market
for these investments. As such, these investments are valued based on the most recent round of financing
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