Adobe 2006 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2006 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 125

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125

88
Purchased and other intangible assets, subject to amortization, were as follows as of December 1,
2006:
Cost
Accumulated
Amortization
Net
Purchased technology......................................... $ 397,098 $ (147,376) $ 249,722
Localization........................................................ $ 9,060 $ (2,261) $ 6,799
Trademarks........................................................ 130,925 (26,857) 104,068
Other intangibles ................................................. 189,001 (43,185) 145,816
Total other intangible assets................................ $ 328,986 $ (72,303) $ 256,683
Total purchased and other intangible assets ........ $ 726,084 $ (219,679) $ 506,405
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
Amortization expense related to identifiable intangible assets was $221.6 million, $20.4 million, and
$21.1 million for fiscal 2006, 2005 and 2004, respectively. Of the total amortization expense for fiscal
2006, $137.5 million was charged to cost of sales. There was no amortization charge to cost of sales for
fiscal 2005 and 2004. The increase in amortization expense from fiscal 2005 to fiscal 2006 is primarily due
to our acquisition of Macromedia. Amortization expense, as of December 1, 2006, is expected to be as
follows:
Fiscal Year
Purchased
Technology
Other Intangible
Assets
2007............................................................. $ 114,180 $ 74,985
2008............................................................. 81,592 66,512
2009............................................................. 50,310 57,652
2010............................................................. 649 47,015
2011............................................................. 536 10,481
Thereafter .................................................... 2,455 38
Total expected amortization expense......... $ 249,722 $ 256,683