Adobe 2007 Annual Report Download - page 80

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80
Note 5. Goodwill and Purchased and Other Intangibles
Below is our goodwill reported by business segment, as of November 30, 2007:
2006 (1) Acquisitions Other 2007
Creative Solutions................................ $ 936,393 $ 51,067 $ (22,823 ) $ 964,637
Knowledge Worker Solutions ...................... 423,048 — (11,465 ) 411,583
Enterprise and Developer Solutions.................. 325,033 — (6,076 ) 318,957
Mobile and Device Solutions....................... 217,542 — (5,658 ) 211,884
Other ..........................................
Print and Classic Publishing ..................... 212,831 — (5,536 ) 207,295
Platform ..................................... 34,647 — (901 ) 33,746
Total........................................... $ 2,149,494 $ 51,067 $ (52,459 ) $ 2,148,102
(1) The 2006 balances have been revised to correct insignificant errors in the original allocation of Macromedia goodwill to the
various segments. The correction resulted in a reduction in goodwill allocated to Knowledge Worker, Enterprise & Developer
Solutions and Mobile & Devices of $6.0 million, $57.9 million and $103.8 million, respectively, and an increase in goodwill
allocated to Creative Solutions and Other of $153.7 million and $14.0 million, respectively. This correction did not impact the
total balance of goodwill in our financial statements. This reallocation also had no impact on our annual impairment analysis
which occurred in the second quarter of fiscal 2007.
The column “Other” above includes net reductions in goodwill of (i) $21.4 million related to pre-acquisition research
and development credits for Macromedia, (ii) $28.8 million for insignificant revisions to the valuation of Macromedia
assumed options, offset by $11.9 million in tax impacts related to subsequent assumed option exercises resulting from this
revaluation, (iii) $9.6 million for the realization of tax benefits for deductions resulting from the exercise of stock options and
disqualifying dispositions of vested options assumed and (iv) other individually insignificant tax related items.
Below is our intangible assets, net reported by business segment for fiscal 2007 and 2006:
2007 2006
Creative Solutions................................ $ 193,584 $ 252,658
Knowledge Worker Solutions ...................... 92,253 87,995
Enterprise and Developer Solutions.................. 41,907 51,684
Mobile and Device Solutions....................... 34,581 52,837
Other...........................................
Print and Classic Publishing..................... 37,141 56,951
Platform ..................................... 3,153 4,280
Total........................................... $ 402,619 $ 506,405
Purchased and other intangible assets, subject to amortization, were as follows as of November 30, 2007:
December 1,
2006
Cost
December 1,
2006
Net Additions
Amortization
Expense
November 30,
2007
Net
Weighted
Average
Amortization
Period
(Years)
Purchased technology..................... $ 397,098 $ 249,722 $ 76,220 $ (132,578 ) $ 193,364 4.1
Localization............................. $ 9,060 $ 6,799 $ 43,100 $ (31,721 ) $ 18,178 1.0
Trademarks............................. 130,925 104,068 300 (25,586 ) 78,782 3.0
Customer contracts and relationships ........ 188,401 145,525 11,170 (45,024 ) 111,671 4.1
Other intangibles......................... 600 291 700 (367 ) 624 2.4
Total other intangible assets................ $ 328,986 $ 256,683 $ 55,270 $ (102,698 ) $ 209,255
Total purchased and other intangible
assets ................................ $ 726,084 $ 506,405 $131,490 $ (235,276 ) $ 402,619 3.7