Adobe 1998 Annual Report Download - page 44

ADOBE SYSTEMS INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended
November 27 November 28 November 29
1998 1997 1996
Cash flows from operating activities:
Net income ................................................ $ 105,144 $ 186,837 $ 153,277
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................. 56,264 59,384 55,621
Deferred income taxes ....................................... (6,774) (4,172) (9,420)
Equity in net (income) loss of Adobe Ventures I and II ................ (2,365) 1,326 (19,001)
Gains on sales of equity securities ............................... (12,972) (35,616) (53,216)
Tax benefit from employee stock option plans ....................... 12,595 29,607 10,828
Stock compensation expense ................................... 2,513 1,329 2,772
Write-off of acquired in-process research and development .............. — 5,969 21,251
Noncash restructuring and other charges .......................... 9,077 — 2,525
Changes in operating assets and liabilities:
Receivables ............................................. (11,054) (15,151) 8,556
Other current assets ....................................... 6,886 (2,351) (1,173)
Trade and other payables ................................... (8,461) 14,802 8,534
Accrued expenses ........................................ 32,947 4,216 (7,198)
Accrued restructuring charges ................................ 3,914 (2,471) (20,229)
Income taxes payable ...................................... 17,125 (32,294) 48,768
Deferred revenue ......................................... (1,370) (2,768) (3,781)
Net cash provided by operating activities ............................. 203,469 208,647 198,114
Cash flows from investing activities:
Purchases of short-term investments ............................... (1,278,178) (2,657,302) (2,363,993)
Maturities and sales of short-term investments ........................ 1,347,800 2,875,294 2,363,793
Acquisitions of property and equipment ............................ (59,745) (33,882) (45,869)
Additions to other assets ....................................... (57,520) (42,122) (65,399)
Acquisitions, net of cash acquired ................................. (3,544) (6,121) (8,027)
Proceeds from sales of equity securities ............................. 10,886 30,993 72,630
Net cash provided by (used for) investing activities ....................... (40,301) 166,860 (46,865)
Cash flows from financing activities:
Proceeds from issuance of common stock ........................... — 70,995 39,870
Purchase of treasury stock ...................................... (379,203) (275,644) (126,778)
Proceeds from reissuance of treasury stock .......................... 70,935 — —
Proceeds from sale of put warrants ................................ 2,768 6,356 —
Payment of dividends ......................................... (16,291) (20,911) (14,586)
Net cash used for financing activities ................................ (321,791) (219,204) (101,494)
Effect of foreign currency exchange rates on cash and cash equivalents ......... 1,918 528 2,497
Net increase (decrease) in cash and cash equivalents ..................... (156,705) 156,831 52,252
Cash and cash equivalents at beginning of year ......................... 267,576 110,745 58,493
Cash and cash equivalents at end of year ............................. $ 110,871 $ 267,576 $ 110,745
Supplemental disclosures:
Cash paid during the year for income taxes .......................... $ 22,471 $ 85,062 $ 30,463
Noncash investing and financing activities:
Cash dividends declared but not paid ............................. $ 3,062 $ 3,558 $ 3,582
Dividends in-kind declared but not distributed ...................... $ — $ 10,032 $ —
Dividends in-kind distributed .................................. $ 7,197 $ 21,603 $ —
Issuance of notes for acquisition ................................ $ — $ — $ 9,473
See accompanying Notes to Consolidated Financial Statements.
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