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99
_________________________________________
(1) The change includes adjustments to our Day purchase price allocation through the second quarter of fiscal 2011 and foreign
currency translation adjustments. We also recorded adjustments for tax deductions from acquired stock options associated
with our Omniture and Macromedia acquisitions.
(2) Amounts primarily consist of foreign currency translation adjustments and adjustments for tax deductions from acquired
stock options associated with our Omniture and Macromedia acquisitions.
Purchased and other intangible assets, net by reportable segment as of November 30, 2012 and December 2, 2011 were as
follows (in thousands):
2012 2011
Digital Media.................................................................................................................................... $ 148,215 $ 181,888
Digital Marketing.............................................................................................................................. 396,786 363,560
Print and Publishing.......................................................................................................................... 35 78
Purchased and other intangible assets, net ..................................................................................... $ 545,036 $ 545,526
Purchased and other intangible assets subject to amortization as of November 30, 2012 and December 2, 2011 were as
follows (in thousands):
2012 2011
Cost Accumulated
Amortization Net Cost Accumulated
Amortization Net
Purchased technology........................... $ 366,574 $ (161,538) $ 205,036 $ 314,057 $ (91,363) $ 222,694
Customer contracts and relationships... $ 318,027 $ (74,214) $ 243,813 $ 433,534 $ (229,364) $ 204,170
Trademarks........................................... 53,293 (19,171) 34,122 52,734 (11,217) 41,517
Acquired rights to use technology........ 104,402 (56,782) 47,620 106,865 (48,137) 58,728
Localization.......................................... 8,586 (4,654) 3,932 9,762 (6,591) 3,171
Other intangibles .................................. 18,742 (8,229) 10,513 63,906 (48,660) 15,246
Total other intangible assets................. $ 503,050 $ (163,050) $ 340,000 $ 666,801 $ (343,969) $ 322,832
Purchased and other intangible
assets, net ....................................... $ 869,624 $ (324,588) $ 545,036 $ 980,858 $ (435,332) $ 545,526
Certain purchased and other intangible assets from prior acquisitions, primarily Macromedia and Omniture, were removed
from the balance sheet as they were fully amortized at the end of fiscal 2012. Amortization expense related to purchased and other
intangible assets was $146.2 million, $131.5 million and $169.7 million for fiscal 2012, 2011 and 2010, respectively. Of these
amounts, for fiscal 2012, 2011 and 2010, $98.3 million, $88.3 million and $97.3 million, respectively, were included in cost of
sales.
Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 13 years. As of November 30,
2012, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal Year Purchased
Technology Other Intangible
Assets
2013....................................................................................................................................... $ 70,613 $ 64,429
2014....................................................................................................................................... 64,451 56,995
2015....................................................................................................................................... 49,779 50,977
2016....................................................................................................................................... 11,505 45,359
2017....................................................................................................................................... 5,372 40,026
Thereafter.............................................................................................................................. 3,316 82,214
Total expected amortization expense.................................................................................. $ 205,036 $ 340,000
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)