Adobe 1999 Annual Report Download - page 57

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
56
NOTE 2. ACQUISITIONS (Continued)
price was allocated to the developed technology, and the remaining $23.6 million was allocated to
trademark, the value of the assembled workforce, and goodwill.
During fiscal 1997, the Company acquired three software companies, in separate transactions, for an
aggregate consideration of approximately $8.5 million. These acquisitions were accounted for using the
purchase method of accounting, and approximately $6.0 million of the purchase price was allocated to
in-process research and development and expensed at the time of the acquisition. One of the in-process
technologies acquired for $2.5 million was discontinued in fiscal 1998. The 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, and short-term investments consisted of the following:
As of December 3, 1999
Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
Cash ....................................... $ 42,452 $ — $ — $ 42,452
Cash equivalents:
Money market mutual funds .................... 52,135 — — 52,135
Time deposit ................................ 5,000 — — 5,000
State and municipal bonds and notes .............. 66,575 — — 66,575
United States government agency notes ............ 4,983 — — 4,983
Total cash equivalents ......................... 128,693 — — 128,693
Total cash and cash equivalents ................. 171,145 — — 171,145
Short-term investments:
State and municipal bonds ...................... 198,284 441 (666) 198,059
Other marketable equity securities ................ 46,694 83,817 (999) 129,512
Total short-term investments .................... 244,978 84,258 (1,665) 327,571
Total securities ................................ $416,123 $84,258 $(1,665) $498,716