Adobe 2007 Annual Report Download - page 77

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77
Pro Forma Results
The unaudited financial information in the table below summarizes the combined results of operations of Adobe and
Macromedia, on a pro forma basis, as though the companies had been combined as of the beginning of the period presented.
The pro forma financial information is presented for informational purposes only and is not indicative of the results of
operations that would have been achieved if the acquisition had taken place on December 4, 2004 or of results that may occur
in the future. The pro forma financial information for fiscal 2005 includes the following items:
Fiscal 2005
Amortization of intangible assets............................. $ 204,678
Amortization of stock-based compensation..................... $ 63,686
Restructuring costs......................................... $ 19,733
Business combination accounting effect on historical support
revenue................................................ $ 39,504
The unaudited pro forma financial information for fiscal 2005 combines the historical results for Adobe for the year
ended December 2, 2005 and the historical results for Macromedia for the year ended September 30, 2005.
Fiscal 2005
Net revenue.............................................. $ 2,353,168
Net income.............................................. $ 400,853
Basic net income per share ................................. $ 0.68
Shares used in computing basic net income per share............ 592,110
Diluted net income per share................................ $ 0.65
Shares used in computing diluted net income per share.......... 619,270
In addition to the acquisition of Macromedia, during fiscal 2007, we completed three business combinations and five
asset acquisitions for cash consideration of approximately $63.0 million. The impact of these acquisitions was considered
immaterial to our consolidated financial statements.
Fiscal 2005 Acquisitions
During fiscal 2005, we acquired OKYZ S.A., a privately-held company, which provided 3D technology and expertise to
our Intelligent Document platform.
Note 3. Cash, Cash Equivalents and Short-Term Investments
Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase.
We classify all of our cash equivalents and short-term investments as “available-for-sale”. These investments are free of
trading restrictions or become free of trading restrictions within one year. We carry these investments at fair value, based on
quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in
accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity. Gains are
recognized when realized in our consolidated statements of income. Losses are recognized as realized or when we have
determined that an other-than-temporary decline in fair value has occurred. Gains and losses are determined using the
specific identification method.