Adobe 2001 Annual Report Download - page 76

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 4. Property and Equipment (Continued)
Depreciation, which includes the amortization for website development cost, for the years ended
November 30, 2001, December 1, 2000, and December 3, 1999 was $29.8 million, $29.3 million, and
$32.6 million, respectively.
Note 5. Other Assets
Other assets consisted of the following:
November 30, December 1,
2001 2000
Investments ................................... $ 31,703 $ 72,490
Goodwill ..................................... 53,679 53,679
Purchased technology and licensing agreements ......... 16,754 16,703
Intangibles and other assets ....................... 13,603 7,719
115,739 150,591
Less accumulated amortization ..................... 45,067 23,355
$ 70,672 $127,236
We own a minority interest in certain companies and limited partnership interests in Adobe Ventures.
The limited partnership investments are accounted for under the equity method, as contractually the
partnerships are controlled by Granite Ventures, an independent venture capital firm and sole general
partner of Adobe Ventures.
In March 1997, as part of our venture investing program, we established an internal limited
partnership, Adobe Incentive Partners, L.P. (‘‘AIP’’), which allows certain of Adobe’s executive officers to
participate in cash or stock distributions from Adobe’s venture investments. Assets held by AIP include
Adobe’s entire interests in Adobe Ventures L.P. and Adobe Ventures II, L.P. and certain equity securities
of privately-held companies. Adobe is both the general partner and a limited partner of AIP. Other limited
partners are executive officers and former executive officers of Adobe who are or were involved in Adobe’s
venture investing activities and whose participation was deemed critical to the success of the program.
The investments in Adobe Ventures L.P.; Adobe Ventures II, L.P.; Adobe Ventures III, L.P.; and
Adobe Ventures IV, L.P., which were established to invest in emerging technology companies strategic to
Adobe’s software business, totaled $4.2 million, $7.8 million, $12.8 million, and $11.7 million, respectively,
as of November 30, 2001, and totaled $4.8 million, $15.7 million, $44.2 million, and $4.1 million,
respectively, as of December 1, 2000. Our investments in the limited partnerships are adjusted to reflect
our equity interest in Adobe Ventures L.P.; Adobe Ventures II, L.P.; Adobe Ventures III, L.P.; and Adobe
Ventures IV, L.P.’s investment income (loss) and dividend distributions, which totaled $(49.2) million,
$0.4 million, and $12.4 million in fiscal years 2001, 2000, and 1999, respectively.
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