Adobe 2007 Annual Report Download - page 56

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56
Non-operating Income
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
% Change
2006 to 2005
Fiscal
2005
Investment gain (loss), net ............. $ 7.1 (88)% $ 61.2 * $ (1.3)
Percentage of total revenue........... * 2% *
Interest and other income, net........... 82.5 23% 67.2 74 % 38.6
Percentage of total revenue........... 3% 3% 2%
Total non-operating income.......... $ 89.6 $ 128.4 $ 37.3
* Percentage is not meaningful.
Investment Gain (Loss), net
Investment gain (loss), net consists principally of realized gains or losses from the sale of marketable equity
investments, other-than-temporary declines in the value of marketable and non-marketable equity securities and gains and
losses of Adobe Ventures.
Investment Gain (Loss), net fluctuated due to the following:
2007 2006 2005
Net gains (losses) related to our investments in
Adobe Ventures and cost method investments. . . $ 6.9 $ (6.5) $ (1.0 )
Gains from sale of equity investments ........... 0.2 67.9 —
Write-downs due to other-than-temporary declines
in value of our marketable equity securities ..... — — (0.6 )
Gains from sale of short-term investments........ — — 0.1
Gains (losses) on stock warrants................ — (0.2) 0.2
Total investment gain (loss).................. $ 7.1 $ 61.2 $ (1.3 )
Investment gains were higher in fiscal 2006 when compared to fiscal 2007 and fiscal 2005 due to the sale of our
investment in Atom Entertainment, Inc. during the fourth quarter of fiscal 2006.
Interest and Other Income, net
The largest component of interest and other income, net is interest earned on cash, cash equivalents and short-term fixed
income investments, but also includes gains and losses on the sale of fixed income investments, foreign exchange gains and
losses, including those from hedging transactions, and interest expense.
Interest and other income, net increased during fiscal 2007 as compared to fiscal 2006 primarily as a result of higher
rates of return on invested cash and short-term investments.
Interest and other income, net increased during fiscal 2006 compared to fiscal 2005 due to higher levels of cash and
short-term investments and higher rates of return during fiscal 2006. These gains were partially offset by losses associated
with our foreign currency hedging program.