Adobe 2013 Annual Report Download - page 100

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100
NOTE 18. INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS
We report segment information based on the “management” approach. The management approach designates the internal
reporting used by management for making decisions and assessing performance as the source of our reportable segments.
Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable
segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and
intangible assets, we do not identify or allocate our assets by the reportable segments.
Effective in the first quarter of fiscal 2013, we moved our video server solutions products from our Digital Media segment
to our Digital Marketing segment to better align the role of how Adobe can help its customers monetize their video assets with
our Digital Marketing solutions. Prior year information in the table below has been updated to reflect this change.
We have the following reportable segments:
• Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small businesses
and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include
traditional content creators, web application developers and digital media professionals, as well as their
management in marketing departments and agencies, companies and publishers.
• Digital Marketing—Our Digital Marketing segment provides solutions and services for how digital advertising
and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers,
advertisers, publishers, merchandisers, web analysts, chief marketing officers, chief information officer and chief
revenue officers.
• Print and Publishing—Our Print and Publishing segment addresses market opportunities ranging from the diverse
authoring and publishing needs of technical and business publishing to our legacy type and OEM
printing businesses.
Our segment results for fiscal 2013, 2012 and 2011 were as follows (dollars in thousands):
Digital Media Digital
Marketing Print and Publishing Total
Fiscal 2013
Revenue $ 2,625,913 $ 1,228,868 $ 200,459 $ 4,055,240
Cost of revenue 170,788 404,804 10,965 586,557
Gross profit $ 2,455,125 $ 824,064 $ 189,494 $ 3,468,683
Gross profit as a percentage of revenue 93% 67% 95% 86%
Fiscal 2012
Revenue $ 3,101,864 $ 1,085,042 $ 216,771 $ 4,403,677
Cost of revenue 130,178 342,764 10,840 483,782
Gross profit $ 2,971,686 $ 742,278 $ 205,931 $ 3,919,895
Gross profit as a percentage of revenue 96% 68% 95% 89%
Fiscal 2011
Revenue $ 3,070,151 $ 927,787 $ 218,320 $ 4,216,258
Cost of revenue 125,591 304,542 7,740 437,873
Gross profit $ 2,944,560 $ 623,245 $ 210,580 $ 3,778,385
Gross profit as a percentage of revenue 96% 67% 96% 90%
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)