Adobe 2005 Annual Report Download - page 77

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77
Note 5. Goodwill and Purchased and Other Intangibles
As of December 2, 2005, the goodwill balance relates to our acquisitions of Accelio, Q-Link,
Syntrillium, OKYZ, 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 2, 2005 and December 3,
2004:
2005 2004
Digital Imaging and Video ....... $ 14,112 $ 14,112
Creative Professional................ 4,650 4,650
Intelligent Document ................ 99,921 91,525
Total
g
oodwill........................... $ 118,683 $ 110,287
During fiscal 2005, our goodwill increased due to the acquisition of OKYZ. OKYZ provides three
dimensional (“3D”) technology and expertise to our Intelligent Document platform.
Purchased and other intangible assets, subject to amortization, were as follows as of December 2,
2005:
Cost
Accumulated
Amortization
Net
Purchased technology......................................... $ 18,785 $ (11,153) $ 7,632
Localization........................................................ $ 20,512 $ (11,901) $ 8,611
Trademarks........................................................ 225 (82) 143
Other intangibles ................................................. 301 (210) 91
Total other intangible assets ................................ $ 21,038 $ (12,193) $ 8,845
Total purchased and other intangible assets ........ $ 39,823 $ (23,346) $ 16,477
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
Amortization expense of identifiable intangible assets is primarily included in costs of product
revenue. Amortization expense related to identifiable intangible assets was $20.4 million, $21.1 million and
$15.4 million for fiscal 2005, 2004 and 2003, respectively. Amortization expense, as of December 2, 2005,
is expected to be as follows:
Fiscal Year
Purchased
Technology
Other Intangible
Assets
2006............................................................. $ 3,782 $ 7,705
2007............................................................. 2,338 1,009
2008............................................................. 559 40
2009............................................................. 315 17
2010............................................................. 315 17
Thereafter .................................................... 323 57
Total expected amortization expense......... $ 7,632 $ 8,845