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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 1. Significant Accounting Policies (Continued)
effective for fiscal years beginning after June 15, 2002. We do not expect the adoption of SFAS 143 to have
a material impact on our financial position or results of operations.
In August 2001, the FASB issued SFAS 144. This Statement addresses financial accounting and
reporting for the impairment or disposal of long-lived assets and supersedes SFAS No. 121, ‘‘Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,’’ and the
accounting and reporting provisions of APB No. 30, ‘‘Reporting the Results of Operations for a Disposal
of a Segment of a Business.’’ SFAS 144 is effective for fiscal years beginning after December 15, 2001. We
will adopt SFAS 144 beginning in our fiscal year 2003. We do not expect the adoption of SFAS 144 to have
a material impact on our financial position or results of operations.
In November 2001, the Emerging Issues Task Force (‘‘EITF’’) reached a consensus on EITF
No. 01-09, ‘‘Accounting for Consideration Given by a Vendor to a Customer or a Reseller of the Vendor’s
Products.’’ EITF No. 01-9 addresses the accounting for consideration given by a vendor to a customer and
is a codification of EITF No. 00-14, ‘‘Accounting for Certain Sales Incentives,’’ EITF No. 00-22,
‘‘Accounting for ‘‘Points’ and Certain Other Time-Based or Volume-Based Sales Incentives Offers and
Offers for Free Products or Services to be Delivered in the Future,’’ and EITF No. 00-25, ‘‘Vendor Income
Statement Characterization of Consideration Paid to a Reseller of the Vendor’s Products.’’ We are
evaluating the impact of EITF No. 01-09 and do not believe the adoption will have a material impact on
our financial statements.
Reclassifications
We made certain reclassifications to our fiscal 2000 presentation of other assets by reclassifying certain
intangible assets from purchased technology and licensing agreements to intangibles and other assets, to
conform to the fiscal 2001 presentation. These reclassifications did not impact total assets in fiscal 2000.
We made certain reclassifications to our fiscal 2000 and 1999 reporting of our Comprehensive Income
on our Consolidated Statements of Stockholder’s Equity and Other Comprehensive Income to comply with
SFAS 130. These reclassifications did not impact our total stockholder’s equity in fiscal 2000 or 1999.
Note 2. Acquisitions
During the fourth quarter of fiscal 2000, we acquired Boston, Massachusetts-based Glassbook, Inc.
(‘‘Glassbook’’). Glassbook is a developer of consumer and commercial software for the eBook market,
automating the supply chain for publishers, booksellers, distributors, and libraries. The acquisition was
accounted for using the purchase method of accounting in accordance with Accounting Principles Board
Opinion No. 16 (‘‘APB 16’’), ‘‘Business Combinations.’’ The purchase price of the acquisition was
approximately $24.4 million cash plus additional liabilities assumed of approximately $3.6 million. Based
on an independent appraiser’s valuation, $0.5 million of the purchase price was allocated to in-process
research and development due to the state of the development and the uncertainty of the technology and
expensed upon acquisition. The remaining $27.5 million was allocated $26.9 million to goodwill,
$0.4 million to intangible assets, and $0.2 million to other assets. The goodwill and intangible assets are
amortized on a straight-line basis over a three-year period. The ongoing project at Glassbook at the time of
the purchase included the development of the Glassbook Reader and the Glassbook Content Server
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