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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
102
Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal
2010, 2009 and 2008 were as follows (in thousands):
2010
2009
2008
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income ................................
$
(11,470
)
$
25,384
$
(7,738
)
Net unrealized (loss) gain recognized in other income related to
instruments outstanding .......................................................................
(12,345
)
(6,390
)
5,223
(23,815
)
18,994
(2,515
)
(Loss) gain on hedges of foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income ................................
21,921
(11,872
)
(3,255
)
Net unrealized gain (loss) recognized in other income ............................
12,247
(2,535
)
3,920
34,168
(14,407
)
665
Net gain (loss) recognized in interest and other income (expense), net .......
$
10,353
$
4,587
$
(1,850
)
NOTE 6. PROPERTY AND EQUIPMENT
Property and equipment, net consisted of the following as of December 3, 2010 and November 27, 2009 (in thousands):
2010
2009
Computers and equipment ...................................................................................
$
454,351
$
409,595
Furniture and fixtures ..........................................................................................
68,322
62,786
Server hardware under capital lease ....................................................................
32,151
—
Capital projects in-progress .................................................................................
20,805
19,931
Leasehold improvements .....................................................................................
188,334
152,200
Land .....................................................................................................................
110,160
86,493
Buildings ..............................................................................................................
99,845
99,845
Total .....................................................................................................................
973,968
830,850
Less accumulated depreciation and amortization ................................................
(525,087
)
(442,718
)
Property and equipment, net ............................................................................
$
448,881
$
388,132
Depreciation and amortization expense of property and equipment for fiscal 2010, 2009 and 2008 was $107.5 million,
$95.9 million and $83.3 million, respectively.
NOTE 7. GOODWILL AND PURCHASED AND OTHER INTANGIBLES
Goodwill by reportable segment and activity for the years ended November 27, 2009 and December 3, 2010 was as
follows (in thousands):
2008
Acquisitions
Other
(1)
2009
Acquisitions
Other
(2)
2010
Creative Solutions ........
956,011
253,463
1,126
1,210,600
—
(3,500
)
1,207,100
Knowledge Worker ......
408,318
—
2,255
410,573
—
(1,969
)
408,604
Enterprise .....................
298,039
—
(4,310
)
293,729
159,924
(5,981
)
447,672
Omniture ......................
—
1,108,034
—
1,108,034
—
(1,130
)
1,106,904
Platform ......................
265,518
—
(398
)
265,120
—
(50
)
265,070
Print and Publishing .....
206,844
—
(311
)
206,533
—
(39
)
206,494
Goodwill ..................
2,134,730
1,361,497
(1,638
)
3,494,589
159,924
(12,669
)
3,641,844
_________________________________________
(1) Includes net reductions in goodwill of $5.2 million for tax related obligations associated with our acquisitions of
Macromedia and Accelio in addition to a facility lease obligation adjustment of $1.7 million related to Macromedia,
offset in part by foreign currency translation adjustments and other individually insignificant tax items.
(2) The change includes adjustments to our Omniture purchase price allocation through the second quarter of fiscal 2010
and foreign currency translation adjustments. We also recorded adjustments for restructuring and tax deductions from
acquired stock options associated with our Omniture and Macromedia acquisitions. See Note 2 for further information
regarding our acquisitions.