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69
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
Note 1. Significant Accounting Policies
Operations
Founded in 1982, Adobe Systems Incorporated is one of the largest and most diversified software companies in the
world. We offer a line of creative, business and mobile software and services used by creative professionals, designers,
knowledge workers, high-end consumers, OEM partners, developers and enterprises for creating, managing, delivering and
engaging with compelling content and experiences across multiple operating systems, devices and media. We distribute our
products through a network of distributors and dealers, VARs, systems integrators, ISVs and OEMs, direct to end users and
through our own Web site at www.adobe.com. We also license our technology to hardware manufacturers, software
developers and service providers, and we offer integrated software solutions to businesses of all sizes. We have operations in
the Americas, EMEA and Asia. Our software runs on personal computers with Microsoft Windows, Apple OS, Linux, UNIX
and various non-PC platforms, depending on the product.
Basis of Presentation
The accompanying consolidated financial statements include those of Adobe and its subsidiaries, after elimination of all
intercompany accounts and transactions. We have prepared the accompanying consolidated financial statements in
accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and
regulations of the SEC.
Use of Estimates
In the preparation of financial statements in accordance with accounting principles generally accepted in the United
States of America and pursuant to the rules and regulations of the SEC, we must make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the balance
sheet, and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those
estimates.
Fiscal Year
Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30.
Stock Dividend
On March 16, 2005, our Board of Directors approved a two-for-one stock split, in the form of a stock dividend, of our
common stock payable on May 23, 2005 to stockholders of record as of May 2, 2005. Share and per share data, for all
periods presented, have been adjusted to give effect to this stock split.
Reclassification
Certain amounts as reported in the Annual Report on Form 10-K/A for fiscal 2006 in the Consolidated Statements of
Cash Flows have been revised. Specifically, $27.3 million related to excess tax benefits from stock-based compensation have
been reclassified from Net Cash Provided by Operating Activities to Net Cash Used for Financing Activities.
In addition, certain prior year amounts have been reclassified to conform to current year presentation in the Consolidated
Statements of Income.