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64
As of November 27, 2009, accrued restructuring charges related to the 2009 restructuring program, 2008 restructuring
program, Omniture acquisition, and Macromedia acquisition totaled approximately $23.0 million, $4.4 million, $12.3
million, and $5.0 million respectively. We expect to pay the liabilities associated with the 2009 and 2008 restructuring
programs through fiscal 2021 and 2013, respectively. We expect to pay the restructuring liabilities associated with the
Omniture and Macromedia acquisitions through fiscal 2013 and fiscal 2012, respectively.
See Note 11 of our Notes to Consolidated Financial Statements for further information regarding our restructuring
charges.
Amortization of Purchased Intangibles and Incomplete Technology
Fiscal
2009
% Change
2009 to 2008
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
Expenses ............................
$
71.6
5
%
$
68.2
(6
)%
$
72.4
Percentage of total revenue ............
2
%
2
%
2
%
As a result of our acquisition of Omniture in fiscal 2009, we acquired purchased intangibles which are amortized over
their estimated useful lives of one to twelve years. In addition, as a result of our acquisition of Macromedia in fiscal 2006, we
acquired purchased intangibles which are amortized over their estimated useful lives of two to four years. During fiscal 2009,
we completed one business combination, in addition to Omniture. During fiscal 2008 we completed one business
combination and during fiscal 2007, we completed two business combinations and one asset acquisition. We acquired
purchased intangibles through these acquisitions which are amortized over their estimated useful lives.
Amortization expense increased during fiscal 2009 as compared to fiscal 2008, primarily due to amortization expense
associated with intangibles assets purchased through the acquisition of Omniture.
Amortization expense decreased during fiscal 2008 as compared to fiscal 2007, due to a decrease in amortization
expense associated with intangible assets purchased through the Macromedia acquisition.
Non-Operating Income (Expense) (dollars in millions)
Fiscal
2009
% Change
2009 to 2008
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
Interest and other income, net ............
$
31.4
(28
)%
$
43.8
(47
)%
$
82.7
Percentage of total revenue ............
1
%
1
%
3
%
Interest expense .......................
(3.4
)
66
%
(10.0
)
*
(0.2
)
Percentage of total revenue ............
*
*
*
Investment gains (losses), net ............
(17.0
)
(204
)%
16.4
131
%
7.1
Percentage of total revenue ............
(1
)%
*
*
Total non-operating income (expense), net
$
11.0
(78
)%
$
50.2
(44
)%
$
89.6
_________________________________________
* Percentage is not meaningful.
Interest and Other Income, Net
Interest and other income, net, consists primarily of interest earned on cash, cash equivalents and short-term fixed
income investments. Interest and other income, net also includes foreign exchange gains and losses, including those from
hedging revenue transactions primarily denominated in Euro and Japanese Yen currencies.
Interest and other income, net, decreased during fiscal 2009 as compared to fiscal 2008 primarily due to lower interest
rates, partially offset by lower average invested balances, realized gains on sales of fixed income securities and lower foreign
exchange losses.
Interest and other income, net, decreased during fiscal 2008 as compared to fiscal 2007 primarily as a result of lower
average invested balances due to cash used for our share repurchase programs, lower interest rates and increased hedging
costs. Additionally, during fiscal 2008, interest and other income, net included losses on fixed income investments associated
with a write-down for an other-than-temporary impairment totaling approximately $1.3 million during the second quarter of
fiscal 2008.