Adobe 2001 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2001 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 3. Cash, cash equivalents, and short-term investments (Continued)
Approximately $196.6 million and $224.9 million in investments are classified as cash equivalents as of
November 30, 2001 and December 1, 2000, respectively. Unrealized gains (losses) on securities, net of
taxes, are included in accumulated other comprehensive income, which is a separate component of
stockholders’ equity, and totaled $8.1 million and $5.1 million as of November 30, 2001 and December 1,
2000, respectively.
We recorded net realized gains (losses) from the sale of fixed income investments for the year ended
November 30, 2001 and December 1, 2000 of $5.8 million and $(70,000), respectively. We also recorded net
realized gains from the sale of our short-term equity investments for the years ended November 30, 2001
and December 1, 2000 of $19.5 million and $12.7 million, respectively. In addition, we recorded losses
related to other-than-temporary declines in the fair value of our marketable equity securities totaling
$53.1 million for the year ended November 30, 2001 and $16.9 million for the year ended December 1,
2000. (See Note 1 for our policy on recording other-than-temporary declines in our marketable equity
securities.) All of the above gains and losses were included in investment gain (loss) on our consolidated
statements of income.
As of November 30, 2001, the cost and estimated fair value of current debt securities and money
market mutual funds with a maturity of one year or less were $287.9 million and $288.8 million,
respectively, and the cost and estimated fair value of current debt securities with maturities ranging from
one to five years was $225.9 million and $227.8 million, respectively. These securities are classified as
current assets based on the Company’s intent and ability to use these securities as necessary to satisfy
significant short-term liquidity requirements that may arise.
Note 4. Property and Equipment
Property and equipment consisted of the following:
November 30, December 1,
2001 2000
Land........................................ $ 3,382 $ —
Equipment ................................... 139,850 140,205
Furniture and fixtures ........................... 25,150 24,824
Capital projects in-progress ....................... 12,593 7,915
Leasehold improvements ......................... 38,384 27,013
219,359 199,957
Less accumulated depreciation and amortization ........ 138,366 135,689
$ 80,993 $ 64,268
We capitalize certain costs related to our website development in accordance with SOP 98-1. We
amortize on a straight-line basis over eighteen to thirty-six months once the website is ready for its
intended use. We launched Adobe Studio in fiscal 2001, and subsequently recorded amortization expense
of $0.9 million. As of November 30, 2001, the amount of unamortized website development cost was
$8.5 million.
75