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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
84
Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 14 years. As of November 28,
2014, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal Year Purchased
Technology Other Intangible
Assets
2015....................................................................................................................................... $ 64,804 $ 69,356
2016....................................................................................................................................... 26,399 63,250
2017....................................................................................................................................... 19,004 53,442
2018....................................................................................................................................... 11,932 42,557
2019....................................................................................................................................... 7,428 40,610
Thereafter.............................................................................................................................. 10,944 59,936
Total expected amortization expense.................................................................................. $ 140,511 $ 329,151
NOTE 8. ACCRUED EXPENSES
Accrued expenses as of November 28, 2014 and November 29, 2013 consisted of the following (in thousands):
2014 2013
Accrued compensation and benefits....................................................................................... $ 320,679 $ 318,219
Sales and marketing allowances ............................................................................................. 75,627 66,502
Accrued corporate marketing ................................................................................................. 28,369 22,801
Taxes payable.......................................................................................................................... 24,658 18,225
Royalties payable.................................................................................................................... 15,073 14,778
Accrued interest expense........................................................................................................ 22,621 20,613
Other ....................................................................................................................................... 196,839 195,801
Accrued expenses
................................................................................................................. $ 683,866 $ 656,939
Other primarily includes general corporate accruals for technical support and local and regional expenses, including our
accrual for a loss contingency as of November 28, 2014. Other is also comprised of deferred rent related to office locations with
rent escalations and foreign currency liability derivatives. See Note 15 for further information regarding the loss contingency.
NOTE 9. INCOME TAXES
Income before income taxes for fiscal 2014, 2013 and 2012 consisted of the following (in thousands):
2014 2013 2012
Domestic................................................................................................................... $ 191,563 $ 132,916 $ 512,987
Foreign...................................................................................................................... 169,813 223,225 605,807
Income before income taxes................................................................................... $ 361,376 $ 356,141 $ 1,118,794