Adobe 2007 Annual Report Download - page 54

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54
Sales and Marketing
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
% Change
2006 to 2005
Fiscal
2005
Expenses .......................... $ 984.4 14% $ 867.1 46 % $ 593.3
Percentage of total revenue.......... 31% 34% 30%
Sales and marketing expenses consist primarily of salary and benefit expenses, sales commissions, travel expenses and
related facilities costs for our sales, marketing, order management and global supply chain management personnel. Sales and
marketing expenses also include the costs of programs aimed at increasing revenue, such as advertising, trade shows, public
relations and other market development programs.
Sales and marketing expenses fluctuated due to the following:
% Change
2007 to 2006
% Change
2006 to 2005
Increased compensation associated with incentive compensation and
stock-based compensation .................................... 6 % 17 %
Increased compensation and related benefits associated with headcount
growth .................................................... 3 16
Increased professional fees and contractor costs..................... 2 6
Increased marketing spending related to product launches and overall
marketing efforts to further increase revenue..................... 2 4
Increased facility costs ......................................... 1 3
Total change ............................................... 14 % 46 %
The increase in compensation for fiscal 2007 relates to higher expense for profit sharing and employee bonuses based on
company performance.
General and Administrative
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
% Change
2006 to 2005
Fiscal
2005
Expenses............................ $ 275.0 17% $ 234.6 41 % $ 166.7
Percentage of total revenue........... 9% 9% 8%
General and administrative expenses consist primarily of compensation and benefit expenses, travel expenses and
related facilities costs for our finance, facilities, human resources, legal, information services and executive personnel.
General and administrative expenses also include outside legal and accounting fees, provision for bad debts, expenses
associated with computer equipment and software used in the administration of the business, charitable contributions and
various forms of insurance.