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86
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 products. We released new products that contained the purchased technology in April 2001, with Acrobat
eBook Reader 2.1 and Adobe Content Server 2.0. During the fourth quarter of fiscal 2002, we recognized a $6.8
million goodwill impairment charge for the remaining book value related to the Glassbook acquisition. This
impairment charge is presented under amortization and impairment of goodwill and purchased intangibles on our
consolidated statements of income.
Note 3. Cash, cash equivalents, and short-term investments
Cash, cash equivalents, and short-term investments consisted of the following:
As of November 29, 2002
Carrying
Value
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Classified as current assets:
Cash.......................................................................................... $ 21,911 $ — $
—
$ 21,911
Cash equivalents:
Money market mutual funds................................................. 128,073
—
—
128,073
State and municipal bonds and notes .................................... 33,635 65
33,700
Total cash equivalents ....................................................... 161,708 65
161,773
Total cash and cash equivalents............................................ 183,619 65
183,684
Short-term investments:
State and municipal bonds .................................................... 396,953 3,583 (294) 400,242
United States Treasury Notes ............................................... 9,688 107 (9) 9,786
Corporate Bonds ................................................................... 9,890 37 (2) 9,925
Marketable equity securities* ............................................... 11,092 3,008
14,100
Total short-term investments ............................................. 427,623 6,735 (305) 434,053
Total cash, cash equivalents, and
Short-term investments......................................................... $ 611,242 $ 6,80
0
$ (305) $ 617,737
As of November 30, 2001
Carrying
Value
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Classified as current assets:
Cash.......................................................................................... $ 22,039 $
—
$
—
$ 22,039
Cash equivalents:
Money market mutual funds................................................. 120,699
—
—
120,699
State and municipal bonds and notes .................................... 75,910 14
75,924
Total cash equivalents ....................................................... 196,609 14
196,623
Total cash and cash equivalents............................................ 218,648 14
218,662
Short-term investments:
State and municipal bonds .................................................... 319,392 2,947 (253) 322,086
United States Treasury Notes ............................................... 3,079 8
—
3,087
Marketable equity securities* ............................................... 26,339 11,439
—
37,778
Total short-term investments ............................................. 348,810 14,394 (253) 362,951
Total cash, cash equivalents, and
short-term investments ......................................................... $ 567,458 $ 14,40
8
$ (253) $ 581,613
* The carrying value of marketable equity securities has been reduced by other-than-temporary declines in the fair value
of securities.