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Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
80
NOTE 6. PROPERTY AND EQUIPMENT
Property and equipment, net consisted of the following as of November 27, 2015 and November 28, 2014 (in thousands):
2015 2014
Computers and equipment $ 940,057 $ 855,218
Furniture and fixtures 89,434 82,385
Server hardware under capital lease — 25,703
Capital projects in-progress 12,394 68,652
Leasehold improvements 247,535 240,506
Land 70,728 106,283
Buildings 398,468 320,410
Total 1,758,616 1,699,157
Less accumulated depreciation and amortization (971,195)(914,034)
Property and equipment, net $ 787,421 $ 785,123
Depreciation and amortization expense of property and equipment for fiscal 2015, 2014 and 2013 was $146.3 million,
$144.2 million and $144.7 million, respectively.
In the second quarter of fiscal 2015, management approved a plan to sell land and an unoccupied building located in San
Jose, California. The total carrying value of the property assets was $36.3 million which mostly pertained to the land. The decision
to sell these property assets was largely based upon a general lack of operational needs for the building and land, and recent
improvements in market conditions for commercial real estate in the area. We began to actively market the assets during the second
quarter of fiscal 2015 and finalized the sale of these assets on September 23, 2015 for total proceeds of $57.8 million. The gain
on the sale of the property assets was included in interest and other income (expense), net in our Consolidated Statements of
Income.
In August 2014, we exercised our option to purchase the East and West Towers of our corporate headquarter offices for a
total purchase price of $143.2 million. We capitalized the East and West Towers as property and equipment on our Consolidated
Balance Sheets at $144.1 million, the lesser of cost or fair value, which represented the total purchase price plus other direct costs
associated with the purchase. These buildings are depreciated over their useful life of 40 years on a straight-line basis.
NOTE 7. GOODWILL AND PURCHASED AND OTHER INTANGIBLES
Goodwill by reportable segment and activity for the years ended November 27, 2015 and November 28, 2014 was as follows
(in thousands):
2013 Acquisitions Other(1) 2014 Acquisitions Other(1) 2015
Digital Media $2,049,726 $ 12,510 $ (4,838) $2,057,398 $ 747,964 $ (9,060) $2,796,302
Digital Marketing 2,463,828 — (57,687) 2,406,141 — (93,983) 2,312,158
Print and Publishing 258,427 — (4) 258,423 — (2) 258,421
Goodwill $4,771,981 $ 12,510 $ (62,529) $4,721,962 $ 747,964 $ (103,045) $5,366,881
_________________________________________
(1) Amounts primarily consist of foreign currency translation adjustments.