Adobe 2004 Annual Report Download - page 77

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77
In accordance with EITF 03-1, the following table summarizes the fair value and gross unrealized
losses related to available-for-sale securities, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position, at December 3, 2004:
Market values were determined for each individual security in the investment portfolio. The declines in
value of these investments is primarily related to changes in interest rates and are considered to be
temporary in nature.
See Note 1 for our policy on recording other-than-temporary declines in our marketable equity
securities. We recognize realized gains and losses upon sale of investments using the specific identification
method. See Note 6 for net realized gains from the sale of our short-term investments and losses related to
other-than-temporary declines in the fair value of our marketable equity securities.
The following table summarizes the cost and estimated fair value of current debt securities and money
market mutual funds, classified by the stated maturity of the security:
Cost
Estimated
Fair Value
Due within one year ............. $ 775,111 $ 773,779
Due within two years ........... 317,513 315,237
Due within three years ......... 137,149 136,257
Due after three years ............ 47,732 47,571
Total ................................. $ 1,277,505 $ 1,272,844
Note 4. Property and Equipment
Property and equipment consisted of the following as of December 3, 2004 and November 28, 2003:
2004 2003
Computers and equipment .................................................... $ 194,605 $ 169,455
Furniture and fixtures ........................................................... 33,563 30,882
Capital projects in-progress .................................................. 18,117 14,862
Leasehold improvements...................................................... 55,861 44,813
Buildings............................................................................... 4,782 4,756
306,928 264,768
Less accumulated depreciation and amortization ................. (207,253) (187,761)
Property and equipment, net................................................. $ 99,675 $ 77,007
During fiscal 2004, we partially deployed a new Customer Relations Management (“CRM”) system.
The capitalized costs in connection with the CRM system are included in computers and equipment for the
deployed modules and in capital projects-in-progress for the modules that are to be deployed. Additionally,
during fiscal 2004, we began operations in our third tower in San Jose, California and in a new facility in
the United Kingdom. In connection with these facilities, we made several leasehold improvements during
the year.
Depreciation for fiscal 2004, 2003 and 2002 was $39.8 million, $33.7 million and $34.7 million,
respectively.
Less Than 12 Months 12 Months or More Total
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
State and municipal bonds ................
.
$ 386,297 $ (2,803) $ 61,340 $ (484) $ 447,637 $ (3,287)
United States Treasury notes.............
.
269,150 (772) 27,864 (160) 297,014 (932)
Corporate bonds................................
.
87,225 (541) 6,025 (15) 93,250 (556)
Obligations of foreign sovereigns .....
.
10,277 (67) 1,518 (4) 11,795 (71)
Bonds of multi-lateral government
agencies ........................................
.
5,021 (10) 8,024 (15) 13,045 (25)
Total ............................................. $ 757
,
970 $
(
4
,
193
)
$ 104
,
771 $
(
678
)
$ 862
,
741 $
(
4
,
871
)