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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
(ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 3, 1999
OR
9TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-15175
ADOBE SYSTEMS INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 77-0019522
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
345 Park Avenue, San Jose, California 95110-2704
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (408) 536-6000
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES (NO 9
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K. 9
The aggregate market value of the common stock held by non-affiliates of the registrant as of
December 31, 1999 was $7,869,021,358.
The number of shares outstanding of the registrant’s common stock as of December 31, 1999 was
119,501,643.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the
Notice of Annual Meeting of Stockholders to be held on April 26, 2000 are incorporated by reference into
Part III.

Table of contents

  • Page 1
    ... incorporation or organization) 345 Park Avenue, San Jose, California (Address of principal executive offices) 77-0019522 (I.R.S. Employer Identification No.) 95110-2704 (Zip Code) Registrant's telephone number, including area code: (408) 536-6000 Securities registered pursuant to Section 12(b) of...

  • Page 2
    ... and Executive Officers of the Registrant ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management ...Certain Relationships and Related Transactions ...PART IV Item 14. Exhibits, Financial Statement Schedule, and Reports on Form 8-K ...38 41 42 43 82 Signatures...

  • Page 3
    ..., Adobe helps people communicate better. By delivering powerful graphic design, publishing, and imaging software for print and Web production, we help people express, share, and manage their ideas in imaginative and meaningful new ways. Our strategy is to address the needs of professional publishers...

  • Page 4
    ...multimedia, and Web projects. Suite includes Adobe After Effects, Adobe Premiere, Adobe Photoshop, and Adobe Illustrator. Adobe GoLive-professional Web design and publishing software which provides innovative tools Web authors require to design, layout, and produce cutting-edge Web sites without the...

  • Page 5
    ..., and build dynamic Web sites that support the latest technology and standards. Suite includes three award-winning Adobe applications: Adobe GoLive, Adobe Photoshop, and Adobe Illustrator. PRINT PUBLISHING Print Publishing Market Opportunity Graphic designers, production artists, technical writers...

  • Page 6
    ... with robust page layout tools, templates, and stock art. Adobe PressReady-powerful printing software used by professionals and based on Adobe PostScript 3. PressReady turns color inkjet printers into high-quality proofing devices. Adobe Publishing Collection-suite of four award-winning application...

  • Page 7
    ... designed to be integrated into existing e-commerce and transaction servers; it manages encryption of Adobe PDF files and the distribution of keys to unlock the encryption and access them. Acrobat Reader with Web Buy-free software that allows users to view, search, and print PDF files. The free Web...

  • Page 8
    ...project. In the technical authoring and publishing market, Adobe FrameMaker products face competition from large-scale electronic publishing systems developed by several companies, including Interleaf. Participants in this market compete based on the quality and features of their products, the level...

  • Page 9
    ... Korea, Mexico, the Netherlands, New Zealand, Norway, Scotland, Singapore, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom. We license our Adobe PostScript software and other printing systems technology to computer and printer manufacturers, who in turn distribute their products worldwide...

  • Page 10
    ... Computer Publishing. In addition, we prepare and authorize independent trainers to teach Adobe software classes in person or increasingly via computer-based and internet-based training programs. We sponsor workshops led by our own graphics staff, interact with independent user groups, and conduct...

  • Page 11
    ... ...Vertec Solutions, Inc...Vignette Corporation ...Adobe Ventures L.P. Equity Investments Cascade Systems International ...Cogito Learning Media, Inc...DigitalThink, Inc...Electronic Submission Publishing Systems, Inc. Extensis Corporation ...FileNet Corporation ...Managing Editor Software, Inc...

  • Page 12
    ...patents, trademarks, trade secret laws, internal and external nondisclosure precautions, and restrictions on disclosure and transferability that are incorporated into our software license agreements. We protect the source code of our software programs as trade secrets, and make source code available...

  • Page 13
    ... PageMaker, Adobe Photoshop, and Adobe Illustrator, incorporate network copy-detection features. These capabilities help encourage compliance with our license agreements by alerting customers about certain concurrent usage problems over a given network. We believe that, because computer software...

  • Page 14
    ...Chairman of the Board and President Executive Vice President, Worldwide Products and Marketing Executive Vice President and Chief Financial Officer Senior Vice President, Worldwide Sales and Support Senior Vice President, General Counsel, and Corporate Secretary A biography, including the principal...

  • Page 15
    ...Avenue San Jose, California USA 801 N. 34th Street-Waterfront Seattle, Washington USA Europe: Europlaza 1101 BE Hoogoorddreef 54a Amsterdam ZO The Netherlands Japan: Gate City Ohsaki East Tower 1-11-2 Ohsaki, Shinagawa-ku Tokyo 141-0032 Japan 360,000 Research, product development, sales, marketing...

  • Page 16
    ...6, 1996, a securities class action complaint was filed against Adobe, certain of its officers and directors, certain former officers of Adobe and Frame Technology Corporation (''Frame''), Hambrecht & Quist, LLP (''H&Q''), investment banker for Frame, and certain H&Q employees, in connection with the...

  • Page 17
    ... table sets forth the high and low sales price per share of our common stock and the cash dividends paid per share, for the periods indicated, all of which are adjusted for the two-for-one stock split in the form of a stock dividend effected October 1999. Price Range High Low Cash Dividend Per Share...

  • Page 18
    ...Stockholders' equity ... Additional data: Worldwide employees ... All share and per share amounts referred to in the above table have been adjusted to reflect the twofor-one stock split in the form of a stock dividend effected October 26, 1999. (1) In 1999, includes investment gains of $88.9 million...

  • Page 19
    ..., After Effects, GoLive, Adobe PhotoDeluxe, Adobe Web Collection, Adobe Dynamic Media Collection, PageMill, ImageStyler, and ActiveShare. Print Publishing revenue comes primarily from the sale of the following application products: Adobe Illustrator, PageMaker, InDesign, FrameMaker, Adobe Publishing...

  • Page 20
    ... licensing of our Publishing Collection product and the introduction of InDesign, a new page layout application software product, in the second half of fiscal 1999. The increase in revenue from these products was partially offset by a decline in revenue from PageMaker, Illustrator, and FrameMaker...

  • Page 21
    ... weakness in the Japanese personal computer and printer markets, as well as the reduction in royalty revenue from HP's desktop monochrome laser printer division. The decline in revenue in fiscal 1998 was partially offset by an increase in the ePaper Solutions and Web Publishing segments. The ePaper...

  • Page 22
    ..., sales and marketing expenses included higher outside labor costs to support user education related to new product releases and for the development of our Web site. These increased expenses were partially offset by cost reduction initiatives related to the restructuring program implemented...

  • Page 23
    ...and related facilities costs for the finance, human resources, legal, information services, and executive personnel of Adobe. General and administrative expenses also include outside legal and accounting fees, provision for bad debts, and expenses associated with computer equipment and software used...

  • Page 24
    ... of our worldwide sales and administrative organizations and the realignment of our Printing Solutions business. The program included a reduction in force of 198 positions, two of which were executive positions. The reduction in force primarily affected our European headquarters in Edinburgh...

  • Page 25
    .... The ongoing project at Attitude Software at the time of the purchase included the development of the 3D Anarchy authoring product. We purchase this technology to incorporate it into future versions of our existing Adobe products to further enhance the feature sets and user interface contained...

  • Page 26
    ...publicly traded company. In addition, we liquidated our investment in Siebel Systems, Incorporated (''Siebel'') through the distribution to our stockholders of approximately 165,000 shares of Siebel common stock as a dividend-in-kind and the sale of our remaining Siebel shares. A gain was recognized...

  • Page 27
    ... and upgrades • introduction of new products by major competitors • weakness in demand for application software and printers • renegotiation of royalty arrangements • lack of growth in worldwide personal computer and printer sales, and downward sales price adjustments • consolidation in...

  • Page 28
    ... to end users through our online store located on our Web site at www.adobe.com. Any such increase in our direct revenue efforts will place us in increased competition with our channel distributors and with newer types of distribution of our products by online, Internet-based resellers of our...

  • Page 29
    ... fiscal 1997, HP began to ship a clone version of Adobe PostScript technology in some printers, resulting in lower licensing revenue to us in fiscal 1999 and 1998. Even though we continue to work with HP printer operations to incorporate Adobe PostScript and other technologies into other HP products...

  • Page 30
    ... policies affecting many other aspects of our business, including: • rules relating to software revenue recognition • purchase and pooling-of-interests accounting for business combinations • the valuation of in-process research and development • employee stock purchase plans • stock option...

  • Page 31
    ...or the securities markets in general will often result in significant volatility of our common stock price. Year 2000 Issues We have been addressing a broad range of issues associated with the programming code in existing computer systems as the year 2000 approached. The Year 2000 problem is complex...

  • Page 32
    ... Use'', which provides guidance on accounting for the costs of developing computer software intended for internal use. We must adopt SOP 98-1 effective as of fiscal 2000, and we do not expect the adoption to have a material impact on our results of operations or financial position. In June 1998, the...

  • Page 33
    ...investments increased $226.2 million, or 83%, in fiscal 1999, primarily due to cash generated from operations of $334.2 million, proceeds from the issuance of treasury stock related to the exercise of stock options under our stock option plans and sale of stock under the Employee Stock Purchase Plan...

  • Page 34
    ... fiscal 1994 and 1996, we entered into real estate development agreements and operating lease agreements in connection with the construction of two corporate headquarters office facilities in San Jose, California. The operating lease agreement for the first office building commenced in 1996, and the...

  • Page 35
    ... December 3, 1999, total outstanding contracts included $17.0 million in foreign currency forward exchange contracts and purchased Japanese yen put option contracts with a notional value of $64.0 million. All contracts expire at various times through December 2000. Our hedging policy is designed to...

  • Page 36
    ... determine at any time to change our hedging program. Fixed income investments At December 3, 1999, we had an investment portfolio of fixed income securities, including those classified as cash equivalents, of $327.0 million. These securities are subject to interest rate fluctuations. An increase...

  • Page 37
    ...split in the form of a stock dividend of our common stock effected October 26, 1999. 1999 Quarter Ended June 4 Sep. 3 Mar. 5 Dec. 3 Year Ended Dec. 3 Revenue ...Gross profit ...Income before income taxes ...Net income ...Basic net income per share ...Shares used in computing basic net income per...

  • Page 38
    ... Freeman, an executive officer of Adobe, to assist with his relocation to San Jose, California. The first loan in the amount of $550,000 was repaid to us on December 31, 1999. The second loan, in the amount of $1.0 million, is interest-free and is secured by Mr. Freeman's principal residence. Under...

  • Page 39
    .... Exhibits, Financial Statement Schedules, and Reports on Form 8-K (a) Documents filed as part of this report 1. Financial statements • Management's Report • Independent Auditors' Report • Consolidated Balance Sheets December 3, 1999 and November 27, 1998 • Consolidated Statements of Income...

  • Page 40
    ...Sumitomo Bank Leasing and Finance Inc. and Adobe Systems Incorporated (Phase 2) 1997 Employee Stock Purchase Plan, as amended* 1994 Stock Option Plan, as amended* Amended and Restated Limited Partnership Agreement of Adobe Incentive Partners, L.P.* Resignation Agreement* Forms of Retention Agreement...

  • Page 41
    ... receive and pay our reasonable expenses in furnishing it to you. You should call or write: Investor Relations Department 345 Park Avenue San Jose, CA 95110-2704 408-536-4416 Fax 408-537-4034 Many of the above exhibits are also available through our EDGAR filings at www.sec.gov. (b) Reports on Form...

  • Page 42
    ..., thereunto duly authorized. ADOBE SYSTEMS INCORPORATED By /s/ HAROLD L. COVERT Harold L. Covert, Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 43
    ... Adobe Font Folio Adobe PhotoDeluxe Adobe Premiere Adobe Publishing Collection Adobe Type Library Adobe Type Manager After Effects ePaper ePaper Solutions Extreme FrameMaker FrameMaker+SGML GoLive Illustrator ImageReady ImageStyler InCopy InDesign PageMaker PageMill PDF Merchant Photoshop PostScript...

  • Page 44
    ...this section are as follows: Financial Statement Description Page Management's Report ...Independent Auditors' Report ...Consolidated Balance Sheets December 3, 1999 and November 27, 1998 ...Consolidated Statements of Income Years Ended December 3, 1999, November 27, 1998, and November 28, 1997...

  • Page 45
    ... are executed in accordance with management's authorization, and are recorded properly to permit the preparation of consolidated financial statements in accordance with generally accepted accounting principles. In designing control procedures, management recognizes that errors or irregularities...

  • Page 46
    ...of their operations and their cash flows for each of the years in the three-year period ended December 3, 1999, in conformity with generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial...

  • Page 47
    ADOBE SYSTEMS INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) December 3 1999 November 27 1998 ASSETS Current assets: Cash and cash equivalents ...Short-term investments ...Receivables, net of allowances for doubtful accounts of $5,170 and $6,399, respectively ......

  • Page 48
    ADOBE SYSTEMS INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) Years Ended November 27 1998 December 3 1999 November 28 1997 Revenue ...Direct costs ...Gross profit ...Operating expenses: Research and development ...Sales and marketing ...General and ...

  • Page 49
    ... (loss) ...Comprehensive income, net of tax ...Tax benefit from employee stock option plans Stock compensation expense ...Dividends declared ...Purchase of treasury stock ...Reissuance of treasury stock under employee stock and stock option plans ...Proceeds from sale of put warrants ... - - 12,595...

  • Page 50
    ...Dividends declared ...Purchase of treasury stock ...Reissuance of treasury stock under employee stock and stock option plans ...Proceeds from sale of put warrants ... - - 58,478 - 2,530 5,272 - - (12,623) (13,106) (479,161) (479,161) 9,863 - 204,557 - 142,938 978 ... Balances as of December 3, 1999...

  • Page 51
    ... ...Gains on sales of equity securities ...Gain on sale of building ...Tax benefit from employee stock option plans ...Stock compensation expense ...Noncash restructuring and other charges ...Changes in operating assets and liabilities: Receivables ...Other current assets ...Trade and other payables...

  • Page 52
    ..., except share and per share data) NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Operations Founded in 1982, Adobe Systems Incorporated (''Adobe'' or the ''Company'') is a provider of graphic design, publishing, and imaging software for Web and print production. The Company offers a marketleading line of...

  • Page 53
    ... for its employee stock plans, which consist of fixed stock option plans, an employee stock purchase plan, and a performance and restricted stock plan, using the intrinsic value method. Revenue recognition Application products revenue is recognized upon shipment, provided collection is determined...

  • Page 54
    ADOBE SYSTEMS INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except share and per share data) (Continued) NOTE 1. SIGNIFICANT ACCOUNTING POLICIES (Continued) distributors is subject to agreements allowing limited rights of return, rebates, and price protection. The Company ...

  • Page 55
    ... SIGNIFICANT ACCOUNTING POLICIES (Continued) Stock split The Company's Board of Directors approved a two-for-one stock split in the form of a stock dividend of the Company's common stock to stockholders of record on October 4, 1999 effected October 26, 1999. All share and per share amounts referred...

  • Page 56
    ...Delaware corporation, and GoLive Systems GmbH and Co. KG, a German limited partnership (together ''GoLive Systems''). GoLive Systems creates Web site development software, which enables users to effectively use the Internet for professional publishing and communication. The acquisition was accounted...

  • Page 57
    ... project associated with an additional $2.8 million of the purchased in-process technology was canceled as part of the restructuring in the third quarter of fiscal 1998 and subsequently sold to a management-led buyout group. NOTE 3. CASH, CASH EQUIVALENTS, AND INVESTMENTS All cash, cash equivalents...

  • Page 58
    ADOBE SYSTEMS INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except share and per share data) (Continued) NOTE 3. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) As of November 27, 1998 Unrealized Unrealized Gains Losses Cost Estimated Fair Value Classified as current...

  • Page 59
    ... in Adobe Ventures L.P.; Adobe Ventures II, L.P.; and Adobe Ventures III, L.P. The limited partnership investments are accounted for under the equity method, as contractually the partnerships are controlled by the general partner, a third party. The investments in Adobe Ventures L.P.; Adobe Ventures...

  • Page 60
    ... round of financing involving new nonstrategic investors and estimates made by the general partner, a third party. When investments held by the limited partnerships are publicly traded, the fair value of such investments is based on quoted market prices, and mark-to-market adjustments are included...

  • Page 61
    ... Company's worldwide customer support activity and to streamline the product distribution and warehouse operations in North America. The program resulted in severance and related charges for 86 positions and included charges for vacating leased facilities. The 1999 restructuring program implemented...

  • Page 62
    ... 1999 included a reduction in force of 198 positions, two of which were executive positions. The reduction in force primarily affected the Company's European headquarters in Edinburgh, Scotland and its North American headquarters in San Jose, California. In addition to severance and related charges...

  • Page 63
    .... The terminations were in the following areas: 42 in research and development, 107 in sales and marketing, and 49 in general and administrative. The reduction in force within research and development consisted of employees in the Company's Printing Solutions business in San Jose, California and was...

  • Page 64
    ... 1998 restructuring program. This balance is comprised of $0.3 million in severance and related charges, $0.1 million in lease termination costs, and $0.4 million in canceled contracts. The majority of the accrual is expected to be paid by the first quarter of fiscal 2000. Cash payments for the...

  • Page 65
    ...: December 3 1999 Years Ended November 27 1998 November 28 1997 Current: United States federal ...Foreign ...State and local ...Total current ...Deferred: United States federal ...Foreign ...State and local ...Total deferred ...Charge in lieu of taxes attributable to employee stock plans ... $ 54...

  • Page 66
    ... related to investments. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. NOTE 9. BENEFIT PLANS Pretax savings plan In 1987, the Company adopted an Employee Investment Plan...

  • Page 67
    ...program, the Company established an internal limited partnership, Adobe Incentive Partners, L.P. (''AIP''), which allows certain of the Company's executive officers to participate in cash or stock distributions from Adobe's venture investments. Adobe is both the general partner and a limited partner...

  • Page 68
    ... Stock option plans As of December 3, 1999, the Company had reserved 67.0 million shares of common stock for issuance under its 1994 and 1999 Stock Option Plans (the ''Option Plans'') for employees, which provides for the granting of stock options to employees and officers at the fair market value...

  • Page 69
    ADOBE SYSTEMS INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In thousands, except share and per share data) (Continued) NOTE 10. EMPLOYEE STOCK PLANS (Continued) Stock option activity for fiscal 1999, 1998, and 1997 is presented below: December 3 1999 Weighted Average Number Exercise of ...

  • Page 70
    ... provides for the granting of restricted stock and/or performance awards to officers and key employees. As of December 3, 1999, the Company had reserved 4.0 million shares of its common stock for issuance under the Plan. Restricted shares issued under the Plan generally vest annually between two to...

  • Page 71
    ... Cash Incentive Awards (''CIAs''), a form of phantom stock, to designated key employees to reward them based on their contributions to a project. The cash value of the CIA is structured to mirror the Company's Restricted Stock Plan. Designated employees are granted CIAs that generally vest annually...

  • Page 72
    ... purposes of computing pro forma net income, the fair value of each option grant, restricted stock grant, and Employee Stock Purchase Plan purchase right is estimated on the date of grant using the BlackScholes option pricing model. The assumptions used to value the option grants and purchase rights...

  • Page 73
    ... of the Company's common stock over a two-year period. This new stock repurchase program was in addition to an existing program whereby the Company has been authorized to repurchase shares to offset issuances under employee stock option and stock purchase plans. No purchases have been made under the...

  • Page 74
    ... net shares equal to the difference between the exercise price and the value of the option as determined by the contract. In the future, the Company may consider other methods to acquire the Company's stock, including direct purchases, open market purchases, accelerated stock purchase programs, and...

  • Page 75
    ... the years ended December 3, 1999; November 27, 1998; and November 28, 1997, options to purchase approximately 7.2 million, 0.4 million, and 1.9 million shares, respectively, of common stock with exercise prices greater than the average fair market value of the Company's stock for the period of $39...

  • Page 76
    ... fiscal 1996, the Company entered into real estate development agreements and operating lease agreements in connection with the construction of two corporate headquarters office facilities in San Jose, California. The operating lease agreement for the first office building commenced in 1996, and the...

  • Page 77
    ... a material effect on the Company's financial position and results of operations. NOTE 14. RELATED PARTY TRANSACTIONS During fiscal 1999, the Company entered into two separate loan agreements with an executive officer of the Company to assist with his relocation to San Jose, California. The first...

  • Page 78
    ..., in option contracts also for the sale of Japanese yen. Concentration of risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash, cash equivalents, short-term investments, and accounts receivable. The Company's investment portfolio...

  • Page 79
    ... Web sites with graphics, images, videos, and animations. The Print Publishing segment provides software for professional page layout, illustration, business publishing, and printing. The ePaper Solutions segment allows users to convert information to Adobe Portable Document Format (''PDF'') with...

  • Page 80
    ... share and per share data) (Continued) NOTE 16. INDUSTRY SEGMENT AND GEOGRAPHIC INFORMATION (Continued) The following results are broken out by operating segments for the fiscal years 1999, 1998, and 1997: Web Publishing Print Publishing ePaper Solutions OEM PostScript and Other Total Fiscal 1999...

  • Page 81
    ... attributable to a segment, such as general and administrative expenses, corporate and field marketing, sales and support, and order fulfillment. The Company categorizes its geographic information into three major market regions: the Americas, EMEA (Europe, Middle East, and Africa), and Asia. The...

  • Page 82
    ...common stock authorized for issuance by the Company, from 200.0 million to an aggregate of 500.0 million shares of common stock, subject to stockholder approval. In December 1999, the Company sold its corporate headquarters facility in Edinburgh, Scotland in connection with the restructuring program...

  • Page 83
    ... Financial Statements and Supplementary Data, the financial statement schedule of the Company is provided in this separate section. The financial statement schedule included in this section is as follows: Schedule Number Financial Statement Schedule Description Schedule II Valuation and Qualifying...

  • Page 84
    ADOBE SYSTEMS INCORPORATED SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) Valuation and Qualifying Accounts which are Deducted in the Balance Sheet from the Assets to which They Apply Balance at Beginning of Period Charged to Operating Expenses Balance at End of Period Charged to ...

  • Page 85
    ... filed as part of this report are provided in this separate section. The exhibits included in this section are as follows: Exhibit Number Exhibit Description 10.56 10.57 21 23 27.1 27.2 27.3 Note Secured by Deed of Trust and Promissory Note Termination Agreement Subsidiaries of the Registrant...

  • Page 86
    ... Systems U.K., Ltd. Frame Technology International Limited Asia: Adobe Adobe Adobe Adobe Adobe Adobe Adobe Systems Systems Systems Systems Systems Systems Systems Company Ltd. Japan, Inc. Pty. Ltd. India Pvt. Ltd. Korea Ltd. Pte, Ltd. Brasil Limitada Japan California Australia India Korea Singapore...

  • Page 87
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  • Page 88
    ... of our report dated December 14, 1999, relating to the consolidated balance sheets of Adobe Systems Incorporated and subsidiaries as of December 3, 1999 and November 27, 1998, and the related consolidated statements of income, stockholders' equity and other comprehensive income, and cash flows for...

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