Adobe 2012 Annual Report Download - page 90

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90
respective acquisition dates however the impact of these acquisitions was not material to our consolidated balance sheets and
results of operations.
Fiscal 2010 Acquisition
Day Software Holding AG
On October 28, 2010, we completed our acquisition of Day Software Holding AG (“Day”), a provider of web content
management solutions that many leading global enterprises rely on for Web 2.0 content application and content infrastructure.
Day was based in Basel, Switzerland and Boston, Massachusetts. Following the closing, we integrated Day as a product line within
our Digital Marketing segment for financial reporting purposes. We have included the financial results of Day in our Consolidated
Financial Statements beginning on the acquisition date.
Under the acquisition method of accounting, the total preliminary purchase price was allocated to Day’s net tangible and
intangible assets based upon their estimated fair values as of October 28, 2010. During the first half of fiscal 2011, we finalized
our purchase accounting after adjustments were made to the preliminary purchase price allocation. The total final purchase price
for Day was approximately $248.3 million of which approximately $157.0 million was allocated to goodwill, $79.2 million to
substantially all of the identifiable intangible assets and $9.0 million to net tangible assets. The impact of this acquisition was not
material to our consolidated balance sheets or results of operations.
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.” In general, these investments are free of trading
restrictions. 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 in our Consolidated Balance Sheets. Gains and losses are recognized when realized in our
Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred,
the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific
identification method.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)