Adobe 2006 Annual Report Download - page 61

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61
Privately Held Investments
We have direct investments, as well as indirect investments through Adobe Ventures, in several privately
held companies, many of which can still be considered in the start-up or development stages. These investments
are inherently risky, as the technologies or products these companies have under development are typically in the
early stages and may never materialize, and we could lose a substantial part of our initial investment in these
companies.
It is our policy to review privately-held investments on a regular basis to evaluate the carrying amount and
economic viability of these companies. This policy includes, but is not limited to, reviewing each of the
companies’ cash position, financing needs, earnings/revenue outlook, operational performance,
management/ownership changes and competition. The evaluation process is based on information that we request
from these privately-held companies. This information is not subject to the same disclosure regulations as U.S.
publicly traded companies, and as such, the basis for these evaluations is subject to the timing and the accuracy of
the data received from these companies.
See also Note 1 in our Notes to Consolidated Financial Statements.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
FINANCIAL STATEMENTS
Our financial statements required by this item are submitted as a separate section of this Form 10-K/A. See
Item 15 (a)(1) for a listing of financial statements provided in the section titled “Financial Statements.”