Adobe 2002 Annual Report Download - page 78

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for a Disposal of a Segment of a Business.” SFAS No. 144 is effective for fiscal years beginning after December
15, 2001. We will adopt SFAS No. 144 beginning in our fiscal year 2003. We do not expect the adoption of SFAS
No. 144 to have a material impact on our financial position or results of operations.
In April 2002, the FASB issued Statement of Financial Accounting Standards No. 145 (“SFAS No. 145”),
“Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections.” Among other provisions, SFAS No. 145 rescinds SFAS No. 4, “Reporting Gains and Losses from
Extinguishment of Debt.” Accordingly, gains or losses from extinguishment of debt shall not be reported as
extraordinary items unless the extinguishment qualifies as an extraordinary item under the criteria of APB No. 30.
Gains or losses from extinguishment of debt that do not meet the criteria of APB No. 30 should be reclassified to
income from continuing operations in all prior periods presented. SFAS No. 145 is effective for fiscal years
beginning after May 15, 2002. We will adopt SFAS No. 145 beginning in our fiscal year 2003. We do not expect the
adoption of SFAS No. 145 to have a material impact on our financial position or results of operations.
In July 2002, the FASB issued Statement of Financial Accounting Standards No. 146 (“SFAS No. 146”),
“Accounting for Costs Associated with Exit or Disposal Activities.” SFAS No. 146 addresses financial accounting
and reporting for costs associated with exit or disposal activities. This statement requires that a liability for a cost
associated with an exit or disposal activity be recognized when the liability is incurred. Previous guidance, provided
under EITF No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including certain costs incurred in a restructuring),” required an exit cost liability be recognized at the date
of an entity’s commitment to an exit plan. The provisions of this statement are effective for exit or disposal activities
that are initiated by a company after December 31, 2002. We do not expect the adoption of SFAS No. 146 to have a
material impact on our financial position or results of operations.
In October 2002, the FASB issued Statement of Financial Accounting Standards No. 147 (“SFAS No. 147”),
“Acquisitions of Certain Financial Institutions - an amendment of FASB Statements No. 72 and 144 and FASB
Interpretation No. 9.” The provisions of this statement relate to the application of the purchase method of accounting
for all acquisitions of financial institutions, except transactions between two or more mutual enterprises. The
provisions of this statement also relate to certain long-term customer-relationship intangible assets recognized in an
acquisition of a financial institution, including those acquired in transactions between mutual enterprises. The
provisions of this statement are effective on or after October 1, 2002. There will be no material impact upon the
adoption of SFAS No. 147 on our financial position or results of operations.
In December 2002, the FASB issued Statement of Financial Accounting Standards No. 148 (“SFAS No. 148”),
“Accounting for Stock-Based Compensation - Transition and Disclosure - an amendment to FASB Statement
No. 123, Accounting for Stock-Based Compensation.” SFAS No. 148 provides alternative methods of transition for
a voluntary change to the fair value based method of accounting for stock-based employee compensation. In
addition, SFAS No. 148 amends the disclosure requirements of Statement 123 to require more prominent and more
frequent disclosures in financial statements about the effects of stock-based compensation. The transition guidance
and annual disclosure provisions of SFAS No. 148 are effective for fiscal years ending after December 15, 2002.
The interim disclosure provisions are effective for financial reports containing financial statements for interim
periods beginning after December 15, 2002. We do not expect the adoption of SFAS No. 148 to have a material
impact on our financial position or results of operations.
In November 2002, the FASB issued Interpretation No. 45 (“FIN No. 45”), “Guarantor’s Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” FIN No. 45
expands on the accounting guidance of Statements No. 5, 57, and 107 and incorporates without change the
provisions of FASB Interpretation No. 34, which is being superseded. FIN No. 45 will affect leasing transactions
involving residual guarantees, vendor and manufacturer guarantees, and tax and environmental indemnities. All such
guarantees will need to be disclosed in the notes to the financial statements starting with the period ending after
December 15, 2002. For guarantees issued after December 31, 2002, the fair value of the obligation must be
reported on the balance sheet. Existing guarantees will be grandfathered and will not be recognized on the balance
sheet. We are currently evaluating the impact of FIN No. 45 on our financial position and results of operations.
In January 2003, the FASB issued Interpretation No. 46 (“FIN No. 46”), “Consolidation of Variable Interest
Entities.” FIN No. 46 expands upon and strengthens existing accounting guidance that addresses when a company