Adobe 2010 Annual Report Download - page 85

85
ADOBE SYSTEMS INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended
December 3,
2010
November 27,
2009
November 28,
2008
Cash flows from operating activities:
Net income ..........................................................................................................
$
774,680
$
386,508
$
871,814
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion ..........................................................
292,738
282,423
270,269
Stock-based compensation ...............................................................................
231,086
167,581
172,474
Deferred income taxes .....................................................................................
(172,329
)
49,590
46,584
Unrealized losses (gains) on investments ..........................................................
11,517
11,623
(17,377
)
Tax benefit from employee stock option plans ..................................................
11,107
44,381
90,360
Other non-cash items .......................................................................................
3,262
3,315
4,784
Excess tax benefits from stock-based compensation ..........................................
(16,430
)
(11,980
)
(31,983
)
Changes in operating assets and liabilities, net of acquired assets and assumed
liabilities:
Trade receivables, net ..................................................................................
(134,276
)
172,287
(153,386
)
Prepaid expenses and other current assets .....................................................
(39,963
)
21,814
(5,584
)
Trade payables ............................................................................................
(10,092
)
(13,601
)
14,078
Accrued expenses ........................................................................................
127,814
(52,179
)
(13,904
)
Accrued restructuring ..................................................................................
(26,811
)
(8,446
)
24,330
Income taxes payable ...................................................................................
(48,656
)
109,620
(57,656
)
Deferred revenue .........................................................................................
109,348
(45,142
)
65,879
Net cash provided by operating activities ..................................................
1,112,995
1,117,794
1,280,682
Cash flows from investing activities:
Purchases of short-term investments .....................................................................
(2,600,787
)
(1,307,366
)
(2,381,533
)
Maturities of short-term investments ....................................................................
643,614
464,031
1,568,874
Proceeds from sales of short-term investments ......................................................
1,134,365
1,057,176
717,076
Purchases of property and equipment ...................................................................
(169,642
)
(119,592
)
(111,792
)
Proceeds from sale of property and equipment ......................................................
32,151
—
—
Acquisitions, net of cash acquired ........................................................................
(193,281
)
(1,582,669
)
(3,584
)
Purchases of long-term investments and other assets .............................................
(28,216
)
(29,143
)
(124,469
)
Proceeds from sale of long-term investments ........................................................
20,351
17,696
30,747
Other...................................................................................................................
2,151
2,771
—
Net cash used for investing activities .........................................................
(1,159,294
)
(1,497,096
)
(304,681
)
Cash flows from financing activities:
Purchases of treasury stock ..................................................................................
(850,020
)
(350,013
)
(1,722,715
)
Proceeds from issuance of treasury stock ..............................................................
139,270
179,566
319,165
Excess tax benefits from stock-based compensation ..............................................
16,430
11,980
31,983
Proceeds from debt ..............................................................................................
1,493,439
650,000
800,000
Repayment of debt and capital lease obligations ...................................................
(1,003,719
)
—
(450,000
)
Repayment of acquired debt .................................................................................
—
(13,897
)
—
Debt issuance costs ..............................................................................................
(10,662
)
—
—
Net cash (used for) provided by financing activities ...................................
(215,262
)
477,636
(1,021,567
)
Effect of foreign currency exchange rates on cash and cash equivalents .....................
11,965
14,703
(14,406
)
Net (decrease) increase in cash and cash equivalents .................................................
(249,596
)
113,037
(59,972
)
Cash and cash equivalents at beginning of year.........................................................
999,487
886,450
946,422
Cash and cash equivalents at end of year ..................................................................
$
749,891
$
999,487
$
886,450
Supplemental disclosures:
Cash paid for income taxes, net of refunds............................................................
$
389,114
$
105,158
$
126,299
Cash paid for interest ...........................................................................................
$
34,632
$
2,088
$
9,604
Non-cash investing activities:
Issuance of common stock and stock awards assumed in business acquisitions ......
$
3,264
$
84,968
$
—
Property and equipment acquired under capital leases ...........................................
$
32,151
$
—
$
—
See accompanying Notes to Consolidated Financial Statements.