Adobe 2003 Annual Report Download - page 76

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the goodwill will not be amortized but will be reviewed for impairment on an annual basis. During the
fourth quarter of fiscal 2002, we revised our estimate of certain costs associated with our acquisition of
Accelio, resulting in an increase to goodwill of approximately $2.6 million. The adjustment primarily
reflected higher than estimated transaction costs and costs related to closing redundant facilities. During
fiscal 2003, we revised our estimate of certain costs associated with our acquisition of Accelio to reflect the
nature of our remaining liabilities. An excess accrual of $0.6 million was reversed as a reduction to
goodwill and an additional $0.3 million was reversed to operating expenses. See Note 8 for information
regarding the liabilities recognized in connection with this acquisition.
The $1.0 million of acquired trademarks and other intangible assets is being amortized over their
useful lives ranging from six-months to three years.
In December 2001, we acquired Fotiva, which was a development stage software company that created
solutions to help consumers manage, store, enrich and share digital photographs and other related personal
media. In connection with the acquisition, substantially all of the purchase price of $5.4 million cash was
allocated to in-process research and development and expensed at the time of acquisition due to the in-
process state of the technology. Adobe combined Fotiva’s image management technology with Adobe’s
digital imaging and ePaper technologies to develop a new product, Adobe Photoshop Album, which was
released in the first quarter of fiscal 2003.
Note 3. Cash, cash equivalents, and short-term investments
As of November 28, 2003
Carrying
Value
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Classified as current assets:
Cash................................................................... $ 20,314 $ — $ — $ 20,314
Cash equivalents:
Money market mutual funds ........................... 88,478 — — 88,478
Bank time deposits.......................................... 10,192 — — 10,192
State and municipal bonds and notes .............. 70,918 15 — 70,933
Total cash equivalents................................ 169,588 15 — 169,603
Total cash and cash equivalents...................... 189,902 15 — 189,917
Short-term investments:
State and municipal bonds .............................. 636,798 3,265 (397) 639,666
United States Treasury notes........................... 95,274 34 (235) 95,073
Corporate bonds.............................................. 59,837 34 (192) 59,679
Asset-backed securities................................... 6,340 — (12) 6,328
Obligations of foreign sovereigns ................... 76,366 8 (352) 76,022
Bonds of multi-lateral government agencies... 22,655 — (25) 22,630
Marketable equity securities* ......................... 3,135 4,083 — 7,218
Total short-term investments...................... 900,405 7,424
(1,213) 906,616
Total cash, cash equivalents, and
short-term investments.................................. $ 1,090,307 $ 7,439 $ (1,213) $ 1,096,533