Adobe 2004 Annual Report Download - page 78

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78
Note 5. Goodwill and Purchased and Other Intangibles
As of December 3, 2004, the goodwill balance relates to our acquisitions of Accelio, Q-Link,
Syntrillium, GoLive Systems, Inc and GoLive Systems GmbH and Co. KG (together “GoLive”) and
Inscriber Technology Corporation. As required by SFAS 142, we have allocated goodwill to our reportable
segments. Below is our goodwill reported by segment as of December 3, 2004 and November 28, 2003:
2004 2003
Digital Imaging and Video $ 14,112 $ 14,112
Creative Professional 4,650 4,650
Intelligent Documents 91,525 77,209
Total goodwill $ 110,287 $ 95,971
Purchased and other intangible assets, subject to amortization, were as follows as of December 3,
2004:
Cost
Accumulated
Amortization
Net
Purchased technology......................................... $ 41,009 $ (29,266) $ 11,743
Localization........................................................ $ 10,404 $ (7,109) $ 3,295
Trademarks........................................................ 300 (133) 167
Other intangibles ................................................. 1,105 (797) 308
Total other intangible assets................................ $ 11,809 $ (8,039) $ 3,770
Total purchased and other intangible assets ........ $ 52,818 $ (37,305) $ 15,513
Purchased and other intangible assets, subject to amortization, were as follows as of November 28,
2003:
Cost
Accumulated
Amortization
Net
Purchased technology......................................... $ 28,509 $ (18,875) $ 9,634
Localization........................................................ $ 10,540 $ (5,348) $ 5,192
Trademarks........................................................ 300 (97) 203
Other intangibles ................................................. 716 (427) 289
Total other intangible assets................................ $ 11,556 $ (5,872) $ 5,684
Total purchased and other intangible assets ........ $ 40,065 $ (24,747) $ 15,318
In fiscal 2004, purchased and other intangibles increased primarily due to licensing costs and
purchases of technology assets.
Amortization expense of identifiable intangible assets is primarily included in costs of product
revenue. Amortization expense related to identifiable intangible assets was $21.1 million, $15.4 million and
$28.8 million for fiscal 2004, 2003 and 2002, respectively. Amortization expense, as of December 3, 2004,
is expected to be as follows:
Fiscal Year
Purchased
Technology
Other Intangible
Assets
2005 ..................................................................... $ 5,997 $ 3,059
2006 ..................................................................... 2,865 539
2007 ..................................................................... 1,574 43
2008 ..................................................................... 316 38
2009 ..................................................................... 316 18
Thereafter............................................................. 675 73
Total expected amortization expense................. $ 11,743 $ 3,770