ADOBE SYSTEMS INC | 2013 | FY | 3


 GOODWILL AND PURCHASED AND OTHER INTANGIBLES 
During fiscal 2013, 2012 and 2011, we modified our segments due to changes in how we operate our business. See Note 18 for further information regarding our segment changes. Prior year information in the tables below has been reclassified to reflect these changes.
Goodwill by reportable segment and activity for the years ended November 29, 2013 and November 30, 2012 was as follows (in thousands):
 
 
2011
 
Acquisitions
 
Other(1)
 
2012
 
Acquisitions
 
Other(1)
 
2013
Digital Media
 
$
1,958,941

 
$

 
$
(611
)
 
$
1,958,330

 
$
91,355

 
$
41

 
$
2,049,726

Digital Marketing
 
1,631,725

 
291,422

 
(6,679
)
 
1,916,468

 
526,739

 
20,621

 
2,463,828

Print and Publishing
 
258,551

 

 
(90
)
 
258,461

 

 
(34
)
 
258,427

Goodwill
 
$
3,849,217

 
$
291,422

 
$
(7,380
)
 
$
4,133,259

 
$
618,094

 
$
20,628

 
$
4,771,981

_________________________________________ 
(1) 
Amounts primarily consist of foreign currency translation adjustments.
Purchased and other intangible assets, net by reportable segment as of November 29, 2013 and November 30, 2012 were as follows (in thousands):
 
 
2013
 
2012
Digital Media
 
$
170,213

 
$
148,215

Digital Marketing
 
433,245

 
396,786

Print and Publishing
 
1,796

 
35

Purchased and other intangible assets, net
 
$
605,254

 
$
545,036


Purchased and other intangible assets subject to amortization as of November 29, 2013 and November 30, 2012 were as follows (in thousands): 
 
2013
 
2012
 
Cost
 
Accumulated Amortization
 
Net
 
Cost
 
Accumulated Amortization
 
Net
Purchased technology
$
423,237

 
$
(220,414
)
 
$
202,823

 
$
366,574

 
$
(161,538
)
 
$
205,036

Customer contracts and relationships
$
389,800

 
$
(111,416
)
 
$
278,384

 
$
318,027

 
$
(74,214
)
 
$
243,813

Trademarks
67,546

 
(27,933
)
 
39,613

 
53,293

 
(19,171
)
 
34,122

Acquired rights to use technology
155,322

 
(76,740
)
 
78,582

 
104,402

 
(56,782
)
 
47,620

Localization
3,404

 
(2,172
)
 
1,232

 
8,586

 
(4,654
)
 
3,932

Other intangibles
16,447

 
(11,827
)
 
4,620

 
18,742

 
(8,229
)
 
10,513

Total other intangible assets
$
632,519

 
$
(230,088
)
 
$
402,431

 
$
503,050

 
$
(163,050
)
 
$
340,000

Purchased and other intangible
    assets, net
$
1,055,756

 
$
(450,502
)
 
$
605,254

 
$
869,624

 
$
(324,588
)
 
$
545,036


 
In the first quarter of fiscal 2013, we acquired rights to use certain technology for approximately $51.8 million. Of this cost, an estimated $25.3 million was related to future licensing rights and has been capitalized and will be amortized on a straight-line basis over the estimated useful lives ranging from five to ten years. We estimated that the remaining cost of approximately $26.5 million was related to historical use of licensing rights and was expensed as cost of product revenue.
Purchased intangibles associated with certain of our prior year acquisitions became fully amortized and were removed from the balance sheet in the first quarter of fiscal 2013. Excluding the expense associated with historical use of the acquired rights to use the technology discussed in the paragraph above, amortization expense related to purchased and other intangible assets was $156.9 million, $146.2 million and $131.5 million for fiscal 2013, 2012 and 2011, respectively. Of these amounts, for fiscal 2013, 2012 and 2011, $111.0 million, $98.3 million and $88.3 million, respectively, were included in cost of sales.
Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 14 years. As of November 29, 2013, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal Year
 
Purchased
Technology
 
Other Intangible
Assets
2014
$
74,811

 
$
75,239

2015
61,273

 
68,041

2016
22,808

 
62,061

2017
15,350

 
52,771

2018
8,961

 
41,779

Thereafter
19,620

 
102,540

Total expected amortization expense
$
202,823

 
$
402,431


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