Adobe 2002 Annual Report Download - page 48

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17
which in turn deliver a significant competitive advantage to our enterprise customers. A portfolio of technical
training courses is also available for desktop and server-based products to meet the needs of our enterprise
customers and Solution Partners.
Support
A significant portion of our support revenue is composed of our extended Enterprise Maintenance and Support
offerings, which entitles customers to the right to receive product upgrades and enhancements during the term of the
maintenance and support period, which is typically one year. This also includes support for mission-critical
enterprise solutions. Regional Support Centers are charged with providing timely, high quality technical expertise on
ePaper products and solutions to meet the growing needs of our customers.
Our support revenue also includes support for our desktop products whereby Adobe offers a range of support
programs, from fee-based incidents to annual support contracts. Additionally, Adobe provides extensive self-help
and online technical support capabilities via the web, which allows customers quick and easy access to possible
solutions. Adobe provides product support through a combination of outsourced vendors and internal
support centers.
Adobe also offers Developer Support to partners and developer organizations. The Adobe Solution Network
(“ASN”) Developer Program focuses on providing developers with high-quality tools (Solutions Development Kits),
information, and services.
Free telephone support is provided to customers who are under warranty for support. For customers in North
America and Asia, support is provided up to a maximum of 30 or 90 days beginning upon the customer’s first call or
for a maximum of one or two support incidents, depending on the product. For customers in Europe, support is
provided until our release of the second new full version after the version purchased by the customer. Historically,
the majority of support for European customers is provided within the first 90 days.
Training
We inform customers about our products through on-line informational services on our Web site
(www.adobe.com), and through a growing series of how-to books published by Adobe Press pursuant to a joint
publishing agreement with Peachpit Press. In addition, we develop tests to certify independent trainers who teach
Adobe software classes. We sponsor workshops, work with professional associations and user groups, and conduct
regular beta-testing programs.
Investment in New Markets
We own limited partnership interests in four venture capital limited partnerships, Adobe Ventures L.P., Adobe
Ventures II, L.P., Adobe Ventures III, L.P., and Adobe Ventures IV, L.P. (collectively “Adobe Ventures”), that
invest in early stage companies with innovative technologies. In addition to the potential for financial returns, our
venture activities increase our knowledge of emerging markets and technologies, as well as expand our ecosystem of
Adobe products and services. The partnerships are managed by Granite Ventures, an independent venture capital
firm and sole general partner of Adobe Ventures.
The investments in Adobe Ventures are accounted for using the equity method of accounting, and accordingly,
the investments are adjusted to reflect our share of Adobe Ventures’ investment income (loss) and dividend
distributions. Under the terms of the partnership agreements, the general partner has the sole and exclusive right to
manage and control the partnerships. Adobe as the limited partner has certain rights, including replacing the general
partner and approving acquisitions that exceed certain established parameters. However, these rights are considered
to be protective rights and do not suggest an ability to control the partnerships. Adobe Ventures carry their
investments in equity securities at estimated fair market value and unrealized gains and losses are included in
investment income (loss) on our consolidated statements of income. The stock of a number of technology
investments held by the limited partnerships at November 29, 2002 is not publicly traded, and, therefore, there is no
established market for their securities. In order to determine the fair market value of these investments, we use the
most recent round of financing involving new non-strategic investors or estimates made by Granite Ventures based
on their assessment of the current market value. It is our policy to review the fair value of these investments held by
Adobe Ventures on a regular basis to evaluate the carrying value of the investments in these companies. This policy
includes, but is not limited to, reviewing each companies’ cash position, financing needs, earnings/revenue outlook,
operational performance, management/ownership changes, and competition. The evaluation process is based on