Adobe 1999 Annual Report Download - page 59

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
58
NOTE 4. PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
December 3 November 27
1999 1998
Land ........................................ $ 846 $ 7,421
Building ...................................... 4,477 4,477
Equipment .................................... 156,658 156,324
Furniture and fixtures ............................ 26,840 28,464
Capital projects in-progress ........................ 6,592 —
Leasehold improvements .......................... 25,795 24,829
221,208 221,515
Less accumulated depreciation and amortization ......... 152,070 127,628
$ 69,138 $ 93,887
NOTE 5. OTHER ASSETS
Other assets consisted of the following:
December 3 November 27
1999 1998
Investments ................................... $ 75,793 $ 56,332
Purchased technology and licensing agreements ......... 17,505 3,502
Restricted funds and security deposits ................ — 130,260
Intangibles and other assets ........................ 53,387 27,527
146,685 217,621
Less accumulated amortization ..................... 34,979 16,769
$111,706 $200,852
The Company owns a minority interest in certain companies and a majority interest 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 II, L.P.; and Adobe Ventures III, L.P., which
were established to enable the Company to invest in emerging technology companies strategic to Adobe’s
software business, totaled $17.1 million, $31.9 million, and $16.1 million, respectively, as of December 3,
1999, and totaled $20.0 million, $22.3 million, and nil, respectively, as of November 27, 1998. The
Company’s investments in the limited partnerships are adjusted to reflect its equity interest in Adobe
Ventures L.P.; Adobe Ventures II, L.P.; and Adobe Ventures III L.P.’s investment income (loss) and
dividend distributions, which totaled $12.4 million, $346,000, and $(1.3) million in fiscal years 1999, 1998,
and 1997, respectively. Adobe Ventures L.P.; Adobe Ventures II, L.P.; and Adobe Ventures III, L.P. carry
their investments in equity securities at an estimated fair market value, and unrealized gains and losses are