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35
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their investments in equity securities at an estimated fair market value, and unrealized
gains and losses are included in investment income. The stock of a substantial number of
the technology companies held by Adobe Ventures at December 1, 2000 is not publicly
traded, and therefore, there is no established market for these investments. As such, these
investments are valued based on the most recent round of financing involving new nonstra-
tegic 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 in invest-
ment income.
We own minority interests in certain technology companies totaling $3.8 million and
$10.6 million as of December 1, 2000 and December 3, 1999, respectively. Investments in
equity securities that are not publicly traded, or are restricted from trading for more than
one year, are carried at the lower of cost or market.
Our portfolio of equity investments included in Other Assets at December 1, 2000 had an
original cost basis of $84.1 million and an estimated fair market value of $72.5 million.
(For further information, see Note 9.)
As of December 1, 2000, intangibles and other assets consisted primarily of capitalized
localization costs of $4.5 million and other intangible assets of $0.2 million. As of
December 3, 1999, intangibles and other assets consisted primarily of capitalized localiza-
tion costs of $18.0 million and other intangible assets of $8.9 million. Amortization
expense related to goodwill, purchased technology, capitalized localization, and other
intangible assets was $14.0 million and $18.2 million in fiscal 2000 and 1999, respectively.
NOTE 6. ACCRUED EXPENSES
Accrued expenses consisted of the following:
DECEMBER 1 DECEMBER 3
2000 1999
Accrued compensation and benefits $ 96,162 $ 65,957
Sales and marketing allowances 6,435 9,990
Minority interest 1,999 17,737
Other
77,265 57,218
$ 181,861 $ 150,902
NOTE 7. RESTRUCTURING AND OTHER CHARGES
During fiscal 1999 and 1998, we implemented three different Board-approved restructuring
programs. These separate restructuring programs were directly focused on improving our
competitive position as well as enhancing our allocation of resources.
During the second quarter of fiscal 2000, we paid our remaining obligations related to the
three fiscal 1999 and fiscal 1998 restructuring programs totaling $8.0 million. In addition
to the cash payments made, we revised our estimate of the total costs associated with
the restructuring programs, resulting in an adjustment of approximately $0.7 million.
The adjustment primarily reflected lower than estimated severance and related charges
attributable to employees whose positions were eliminated as a result of the restructurings
but who were able to find alternative employment within Adobe. The remaining adjust-
ment was due to lower than expected charges related to vacating leased facilities. As of
December 1, 2000, there was no restructuring liability remaining for our fiscal 1999 and
1998 restructuring programs.