SEGMENTS

We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments.

Effective in the first quarter of fiscal 2013, we moved our video server solutions products from our Digital Media segment to our Digital Marketing segment to better align the role of how Adobe can help its customers monetize their video assets with our Digital Marketing solutions. Prior year information in the table below has been updated to reflect this change.

We have the following reportable segments:

•

Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small businesses and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional content creators, web application developers and digital media professionals, as well as their management in marketing departments and agencies, companies and publishers.


•	Digital Marketing—Our Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers and chief revenue officers.


•	Print and Publishing—Our Print and Publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing to our legacy type and OEM printing businesses.



(in thousands)	Digital Media			Digital Marketing			Print and Publishing			Total
Three months ended March 1, 2013
Revenue	$	688,400		$	267,700		$	51,773		$	1,007,873
Cost of revenue	53,709			98,279			4,696			156,684
Gross profit	$	634,691		$	169,421		$	47,077		$	851,189
Gross profit as a percentage of revenue	92		%	63		%	91		%	84		%
Three months ended March 2, 2012
Revenue	$	724,353		$	265,837		$	55,030		$	1,045,220
Cost of revenue	25,625			79,547			3,093			108,265
Gross profit	$	698,728		$	186,290		$	51,937		$	936,955
Gross profit as a percentage of revenue	96		%	70		%	94		%	90		%