Adobe 2013 Annual Report Download - page 79

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Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2013,
2012 and 2011 were as follows (in thousands):
2013 2012 2011
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income $ (4,783) $ (5,899) $ 6,604
Net unrealized gain (loss) recognized in other income 2,751 (4,720)(4,062)
(2,032)(10,619) 2,542
Gain (loss) on hedges of foreign currency assets and liabilities:
Net realized gain recognized in other income 1,835 9,312 4,633
Net unrealized gain (loss) recognized in other income 294 (570)(8,606)
2,129 8,742 (3,973)
Net gain (loss) recognized in interest and other income (expense), net $ 97 $ (1,877) $ (1,431)
NOTE 6. PROPERTY AND EQUIPMENT
Property and equipment, net consisted of the following as of November 29, 2013 and November 30, 2012 (in thousands):
2013 2012
Computers and equipment $ 731,767 $ 702,270
Furniture and fixtures 82,904 84,697
Server hardware under capital lease 61,007 35,303
Capital projects in-progress 54,593 63,980
Leasehold improvements 235,859 222,262
Land 106,283 114,941
Buildings 175,325 175,222
Total 1,447,738 1,398,675
Less accumulated depreciation and amortization (787,964)(734,373)
Property and equipment, net $ 659,774 $ 664,302
Depreciation and amortization expense of property and equipment for fiscal 2013, 2012 and 2011 was $144.7 million,
$134.4 million and $117.5 million, respectively.
In May 2013, management approved a plan to sell land, building and other assets located in Waltham, Massachusetts (the
"Waltham property assets") with a total carrying amount of $47.4 million. The decision to sell the Waltham property assets was
largely based upon lack of operational needs for a facility of this size, in combination with recent improvements in market conditions
for commercial real estate in the area. During May 2013, we began to actively market the Waltham property assets and we expected
to sell the property within one year from management's approval of the plan and classified the Waltham property assets as held
for sale at $23.6 million representing their fair value, net of estimated costs to sell which was the lesser of the fair value less cost
to sell or carrying amount of the assets. The fair value, net of estimated cost to sell was measured with the assistance of third-party
valuation models which used inputs such as market comparable data for similar properties to be purchased by other operating and
investing entities and discounted cash flow techniques as part of the analysis. The fair value measurement was categorized as Level
3 as significant unobservable inputs were used in the valuation analysis. We ceased recognizing depreciation expense on the
Waltham property assets upon reclassification. As a result, we recorded a write-down of $23.8 million during fiscal 2013. These
charges are included in restructuring and other related charges in our Consolidated Statements of Income for fiscal 2013. In
September 2013, we finalized the sale of the Waltham property assets for net proceeds of $24.3 million which approximated the
carrying value of the assets at the time of sale.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)