Adobe 2011 Annual Report Download - page 98

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98
NOTE 8. OTHER ASSETS
Other assets as of December 2, 2011 and December 3, 2010 consisted of the following (in thousands):
Investments
Deferred compensation plan assets
Prepaid land lease
Security and other deposits
Debt issuance costs
Prepaid royalties
Other(*)
Other assets
2011
21,045
12,803
13,058
10,791
8,234
4,519
19,472
$ 89,922
2010
25,018
11,071
13,215
11,266
9,574
7,726
20,480
$ 98,350
_________________________________________
(*) Fiscal 2011 and 2010 includes a tax asset of approximately $9 million and $11 million related to an acquired entity,
respectively.
Investments represent our direct investments in privately held companies which are accounted for based on the cost method.
We assess these investments for impairment in value as circumstances dictate.
NOTE 9. ACCRUED EXPENSES
Accrued expenses as of December 2, 2011 and December 3, 2010 consisted of the following (in thousands):
Accrued compensation and benefits
Sales and marketing allowances
Accrued corporate marketing
Taxes payable
Royalties payable
Accrued interest expense
Other
Accrued expenses
2011
$ 235,500
58,156
37,757
26,732
18,778
21,010
157,008
$ 554,941
2010
$ 290,366
38,706
26,190
21,800
31,007
21,203
135,003
$ 564,275
Other primarily includes general corporate accruals for local and regional expenses and technical support. Other is also
comprised of deferred rent related to office locations with rent escalations and foreign currency liability derivatives.
NOTE 10. INCOME TAXES
Income before income taxes for fiscal 2011, 2010 and 2009 consisted of the following (in thousands):
Domestic
Foreign
Income before income taxes
2011
$ 319,500
715,730
$ 1,035,230
2010
$ 283,819
659,332
$ 943,151
2009
$ 279,095
422,425
$ 701,520
Domestic income before taxes is significantly lower than foreign income before taxes due to certain accounting charges
that our foreign subsidiaries are not required to bear under foreign accounting standards. These charges do not lower our domestic
income subject to U.S. tax.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)