Adobe 2009 Annual Report Download - page 67

67
The primary working capital sources of cash for fiscal 2007 were increases in net income, accrued expenses, income
taxes payable, deferred revenue and trade payables coupled with decreases in trade receivables and prepaid expenses and
other current assets. Net changes in accrued expenses was primarily attributable to increases in accrued bonuses and accrued
localization costs related to the localization of our CS3 family of products during fiscal 2007. Income taxes payable increased
due to overall increased taxable income. Increases to deferred revenue related primarily to deferred maintenance and service
revenue due to strong upgrade plan sales in the fourth quarter of fiscal 2007 for our CS3 family of products and related
individual creative products. The decrease in trade receivables was due to collections in the first quarter of fiscal 2007 related
to high Acrobat 8 sales at the end of fiscal 2006 and strong collections during the third quarter of fiscal 2007 resulting from
shipments of our CS3 family of products.
The primary working capital use of cash in fiscal 2007 was a decrease in accrued restructuring costs which was
primarily due to payments for facility and severance costs for fiscal 2007.
Cash flows from investing activities
Net cash used for investing activities of $1.5 billion for fiscal 2009, was primarily due to the acquisition of Omniture,
purchases of short-term investments and property and equipment, offset in part by maturities and sales of short-term
investments. Purchases of long-term investments and other assets during fiscal 2009 were less than fiscal 2008 primarily due
to $56.0 million paid in the third quarter of fiscal 2008 for future licensing rights acquired through certain technology
licensing arrangements which did not recur in fiscal 2009.
Net cash from investing activities changed from cash provided for fiscal 2007 of $81.5 million to cash used in fiscal
2008 of $304.7 million primarily due to purchases of short-term investments offset in part by maturities and sales of short-
term investments. Other uses of cash during fiscal 2008 represented purchases of property and equipment, long-term
investments and other assets and one business combination offset in part by proceeds from the sale of other investments in
equity securities. The uses associated with the purchase of long-term investments and other assets related primarily to cash
paid for future licensing rights acquired through certain technology licensing arrangements totaling $56.0 million in fiscal
2008.
The primary sources of cash from investment activities during fiscal 2007 were sales and maturities of short-term
investments offset in part by purchases of short-term investments. The proceeds from the sales of short-term investments
were primarily used for stock repurchases. Uses of cash during fiscal 2007 included purchases of property and equipment,
purchases of long-term investments and other assets which related primarily to the technology licensing arrangements that
occurred during the second quarter of fiscal 2007, the completion of two business combinations and one asset acquisition in
fiscal 2007, and the purchase of a portion of the lease receivable totaling $80.4 million associated with our lease extension for
the Almaden tower lease. See Note 17 of our Notes to Consolidated Financial Statements for further information regarding
this lease extension.
Cash flows from financing activities
Net cash from financing activities changed from cash used in fiscal 2008 of $1.0 billion to cash provided for fiscal 2009
of $477.7 million, primarily due to additional borrowing under our credit agreement of $650.0 million and lower purchases of
treasury stock, offset in part by proceeds related to the issuance of treasury stock (See sections entitled “Stock Repurchase
Program I” and “Stock Repurchase Program II” discussed below).
Net cash used for financing activities decreased $328.8 million for a total of $1.0 billion in fiscal 2008 as compared to
fiscal 2007, primarily due to net borrowings under our credit agreement of $350.0 million. Additionally, we had lower
purchases of treasury stock when compared to the prior year (See sections entitled “Stock Repurchase Program I” and
“Stock Repurchase Program II” discussed below), offset in part by lower proceeds related to the issuance of treasury stock.
We expect to continue our investing activities, including short-term and long-term investments, venture capital, facilities
expansion and purchases of computer systems for research and development, sales and marketing, product support and
administrative staff. Furthermore, cash reserves may be used to repurchase stock under our stock repurchase programs and
strategically acquire software companies, products or technologies that are complementary to our business. The Board of
Directors has approved a facilities expansion for our operations in India, which may include the purchase of land and
buildings.