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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
73
million of which $515.2 million was allocated to goodwill that was non-deductible for tax purposes, $115.0 million to identifiable
intangible assets and $13.5 million to net liabilities assumed. The impact of this acquisition was not material to our Consolidated
Financial Statements.
Behance
On December 20, 2012, we completed our acquisition of privately held Behance, an online social media platform to showcase
and discover creative work. During the first quarter of fiscal 2013, we began integrating Behance into our Digital Media reportable
segment. Behance’s community and portfolio capabilities will accelerate our strategy to bring additional community features to
Creative Cloud. We have included the financial results of Behance in our Consolidated Financial Statements beginning on the
acquisition date.
Under the acquisition method of accounting, the total purchase price was allocated to Behance’s net tangible and intangible
assets based upon their estimated fair values as of December 20, 2012. The total final purchase price for Behance was approximately
$111.1 million of which $91.4 million was allocated to goodwill, $28.5 million to identifiable intangible assets and $8.8 million
to net liabilities assumed. The impact of this acquisition was not material to our Consolidated Financial Statements.
Fiscal 2012 Acquisition
Efficient Frontier
On January 13, 2012, we completed our acquisition of privately held Efficient Frontier, a multi-channel digital ad buying
and optimization company. During the first quarter of fiscal 2012, we began integrating Efficient Frontier into our Digital Marketing
segment. The Efficient Frontier business adds cross-channel digital ad campaign forecasting, execution and optimization
capabilities to our Adobe Marketing Cloud, along with a social marketing engagement platform and social ad buying capabilities.
We have included the financial results of Efficient Frontier in our Consolidated Financial Statements beginning on the acquisition
date.
Under the acquisition method of accounting, the total purchase price was allocated to Efficient Frontier’s net tangible and
intangible assets based upon their estimated fair values as of January 13, 2012. During fiscal 2012, we made adjustments to the
preliminary purchase price allocation. The total final purchase price for Efficient Frontier was $374.7 million of which $291.4
million was allocated to goodwill, $122.7 million to identifiable intangible assets and $39.4 million to net liabilities assumed. The
impact of this acquisition was not material to our Consolidated Financial Statements.
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.