Adobe 2003 Annual Report Download - page 79

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Amortization expense of identifiable intangible assets is primarily included in cost of product revenue.
Amortization expense related to identifiable intangible assets was $15.4 million, $28.8 million and $26.8
million for fiscal 2003, 2002 and 2001, respectively. Amortization expense, as of November 28, 2003, is
expected to be as follows:
Fiscal Year Purchased Technology
Other Intangible
Assets
2004..................................................................... $ 5,873 $ 5,462
2005..................................................................... 3,214 80
2006..................................................................... 547 17
2007..................................................................... ― 17
2008..................................................................... — 17
Thereafter ............................................................ — 91
Total expected amortization expense ................ $ 9,634 $ 5,684
Note 6. Other Assets
Other assets consisted of the following:
November 28,
2003
November 29,
2002
Investments .......................................................................................... $ 30,840 $ 35,617
Security deposits and other................................................................... 3,503 4,145
Land deposit......................................................................................... 3,378 3,323
Total other assets.............................................................................. $ 37,721 $ 43,085
We own limited partnership interests in Adobe Ventures. The limited partnership investments are
accounted for under the equity method, as the partnerships are controlled by Granite Ventures, an
independent venture capital firm and sole general partner of Adobe Ventures. As of November 28, 2003
and November 29, 2002, the estimated fair value of our investments in Adobe Ventures was $30.6 million
and $34.9 million, respectively.
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 loss and dividend distributions, which totaled $10.2 million, $15.4 million and $49.2 million in
fiscal years 2003, 2002, and 2001, respectively.
In addition to these venture partnerships, we have direct investments in public and privately-held
companies. Since inception through November 28, 2003, we have invested $222.0 million through our
venture partnerships and direct investments. Since inception through November 28, 2003, net returns were
$346.1 million, including stock dividends and net gains in market value of investments.
We recognize realized gains and losses upon sale of investments using the specific identification
method. During fiscal 2003, 2002 and 2001, we recorded investment losses of $12.9 million, $17.2 million
and $93.4 million, respectively, which comprise gains and losses from our short-term and long-term
investments. Of these losses, $12.0 million, $13.1 million and $59.8 million, respectively, related to our
investments in Adobe Ventures and our cost method investments. During fiscal 2003, 2002 and 2001,
investment losses also included write-downs due to other-than-temporary declines in value, of $4.0 million,
$11.3 million and $53.1 million, respectively, related to our short-term investments. The losses for fiscal
2003, 2002 and 2001 were partially offset by gains of $3.1 million, $7.2 million and $19.5 million,
respectively, from the sale of marketable equity securities.