Adobe 2001 Annual Report Download - page 98

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 16. Industry Segment and Geographic Information (Continued)
A reconciliation of the totals reported for the operating segments to the applicable line items in the
consolidated financial statements for the fiscal years 2001, 2000, and 1999 is as follows:
Years Ended
November 30, December 1, December 3,
2001 2000 1999
Total gross profit from operating segments
above ........................... $1,148,269 $ 1,179,123 $920,894
Total operating expenses(a) ............. 769,812 771,040 661,041
Total operating income ................ 378,457 408,083 259,853
Non-operating income (loss) ............ (71,526) 35,656 114,574
Income before taxes .................. $ 306,931 $ 443,739 $374,427
(a) Total operating expenses include research and development, sales and marketing, general and administrative, restructuring
and other charges, amortization of goodwill and purchased intangibles, and acquired in-process research and development
expenses.
Beginning in the first quarter of fiscal year 2002, we realigned our business segments to reflect the way
we will manage our business. A newly named Graphics segment will in the future replace the former Web
Publishing segment and will include Adobe Illustrator. The Adobe GoLive and Web Collection products
will be reported in the Cross-media Publishing segment. For more information on our new segments,
please see Item 1 of our business section.
The following results are broken out by our new operating segments for the fiscal years 2001, 2000,
and 1999.
OEM
Cross-media ePaper PostScript
New Segments Graphics Publishing Solutions and Other Total
Fiscal 2001
Revenue ........................ $543,419 $289,624 $291,886 $104,791 $1,229,720
Direct costs ...................... 33,366 27,024 15,835 5,226 81,451
Gross profit ...................... $510,053 $262,600 $276,051 $ 99,565 $1,148,269
94% 91% 95% 95% 93%
Fiscal 2000
Revenue ........................ $602,101 $325,162 $207,628 $131,487 $1,266,378
Direct costs ...................... 36,400 29,539 12,445 8,871 87,255
Gross profit ...................... $565,701 $295,623 $195,183 $122,616 $1,179,123
94% 91% 94% 93% 93%
Fiscal 1999
Revenue ........................ $442,220 $305,716 $129,333 $138,165 $1,015,434
Direct costs ...................... 37,810 31,364 12,883 12,483 94,540
Gross profit ...................... $404,410 $274,352 $116,450 $125,682 $ 920,894
91% 90% 90% 91% 91%
We categorize our geographic information into three major market regions: the Americas, EMEA,
and Asia. The Americas region includes the U.S., Canada, Latin America, and Central America. The
EMEA region includes Europe, Middle East, and Africa. The Asia region includes Japan and the Asian
Pacific countries.
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