Adobe 2006 Annual Report Download - page 87

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87
Note 4. Property and Equipment
Property and equipment consisted of the following as of December 1, 2006 and December 2, 2005:
2006 2005
Computers and equipment .................................................... $ 237,480 $ 196,912
Furniture and fixtures ........................................................... 50,008 37,604
Capital projects in-progress .................................................. 2,363 565
Leasehold improvements ...................................................... 93,910 68,100
Land...................................................................................... 35,350 —
Buildings............................................................................... 62,461 9,611
481,572 312,792
Less accumulated depreciation and amortization ................. (254,375) (209,243)
Property and equipment, net ................................................. $ 227,197 $ 103,549
The increase in property and equipment from fiscal 2006 to fiscal 2005 is primarily due to our
acquisition of Macromedia.
Depreciation expense for fiscal 2006, 2005 and 2004 was $67.7 million, $43.9 million, and $39.8
million, respectively.
Note 5. Goodwill and Purchased and Other Intangibles
As of December 1, 2006, the goodwill balance relates to our acquisitions of Macromedia, Accelio, Q-
Link, Syntrillium, OKYZ, GoLive Systems, Inc and GoLive Systems GmbH and Co. KG (together
“GoLive”) and, Serious Magic, Interakt, and Inscriber Technology Corporation.
Below is our goodwill reported by business segment, as of December 1, 2006:
2006 2005
Creative Solutions .............................................. $ 782,717 $ 18,763
Knowledge Worker Solutions ............................ 429,036 8,395
Enterprise and Developer Solutions ................... 382,911 91,525
Mobile and Device Solutions ........................... 321,323 —
Other*................................................................. 233,507 —
Total
g
oodwill .................................................... $ 2,149,494 $ 118,683
* All goodwill in our Other segments relates to our platform business..
During fiscal 2006, our goodwill increased by $2.2 billion. Of this amount, $2.0 billion is related to our
acquisition of Macromedia. Refer to Note 2 for further information. This goodwill was reduced by $26.9
million primarily for the realization of tax benefits for deductions resulting from the exercise of stock
options and disqualifying dispositions of vested options assumed and for adjustments made to deferred and
current tax balances upon filing the final Macromedia U.S. income tax returns in August 2006. In addition,
goodwill also increased by $35.0 million due to the acquisition of TTF in the second quarter of fiscal 2006
and Serious Magic and Interakt in the fourth quarter of fiscal 2006.