632598256894

Exhibit 3.6 Consolidated multistep statements of income: Adobe Systems, Inc. (in thousands).
Source: Adobe Systems, Inc., annual report, November 2007.
The Nature of Operating Income
Operating income is not defined under GAAP, and is often considered equivalent to earnings before
interest and taxes (EBIT). More specifically, operating income is designed to reflect the revenues,
gains, expenses, and losses that are related to the fundamental operating activities of the firm
independent of capital structure and income tax environment. However, notice that the Adobe Systems
operating income in both 2006 and 2007 is reported after restructuring charges. While operating
income or loss may include only operations-related items, some of these items may be nonrecurring.
Hence, operating income is often not the “sustainable” earnings measure called for by the AICPA
Special Committee on Financial Reporting. Even at this early point in the income statement,
nonrecurring items have been introduced that will require adjustment in order to arrive at an earnings
base “that provides a basis for estimating sustainable earnings.” 12 Note also that “operating income” in
a multistep format is an earlier subtotal than “income from continuing operations.” Operating income