Adobe 2012 Annual Report Download - page 71

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For fiscal 2010, net cash provided by operating activities of $1.1 billion was primarily comprised of net income plus the
net effect of non-cash items. The primary working capital sources of cash were net income coupled with increases in accrued
expenses and deferred revenue. Accrued expenses increased primarily due to amounts due under our fiscal 2010 annual incentive
plan and interest on our Notes, both of which were paid in the first quarter of fiscal 2011. During fiscal 2010, we made our first
semi-annual interest payment associated with our Notes totaling $31.1 million. The resulting reduction in accrued interest was
partially offset by additional interest accruals made during the period. Increases in deferred revenue related primarily to activity
from our acquisition of Omniture, the related renewal of calendar-year based contracts in addition to increases in maintenance
and support orders and royalty revenue deferrals related to changes in customer billing terms.
The primary working capital uses of cash for fiscal 2010 were increases in trade receivables, prepaid expenses and other
current assets as well as decreases in taxes payable, accrued restructuring and trade payables. Trade receivables increased as a
result of products shipped and billed during the latter half of the fourth quarter of fiscal 2010 as a result of the launch of Acrobat
X and slower receivable payments pertaining to Omniture services. Increases in prepaid expenses and other current assets related
primarily to higher valuations on our cash flow and balance sheet hedges due to the strengthening of the U.S. dollar. Income taxes
payable decreased primarily due to payments of approximately $200.0 million for tax liabilities associated with the repatriation
of undistributed foreign earnings as well as a $20.0 million settlement of an IRS exam in the fourth quarter of fiscal 2010. Accrued
restructuring decreased primarily due to payments made related to the fiscal 2009 restructuring plan that was initiated in the fourth
quarter of fiscal 2009 in addition to adjustments made to previously recorded estimates, offset in part by new charges.
Cash Flows from Investing Activities
For fiscal 2012, net cash used for investing activities of $834.7 million was primarily due to our acquisition of Efficient
Frontier in the first quarter of fiscal 2012. Other uses of cash during fiscal 2012 represented purchases of short-term investments
and property and equipment, offset in part by sales and maturities of short-term investments. See Note 2 of our Notes to the
Consolidated Financial Statements for further information regarding our acquisition of Efficient Frontier.
For fiscal 2011, net cash used for investing activities of $757.4 million was primarily due to purchases of short-term
investments and multiple business acquisitions, offset in part by maturities and sales of short-term investments. Other uses of cash
during fiscal 2011 represented purchases of property, plant and equipment and long-term investments, intangibles and other assets.
For fiscal 2010, net cash used for investing activities of $1.2 billion was primarily due to purchases of short-term investments
and the acquisition of Day, offset in part by maturities and sales of short-term investments. Other uses of cash during fiscal 2010
represented purchases of property and equipment and long-term investments and other assets. These uses of cash were offset in
part by proceeds from the sale of equipment under our sale lease-back transaction and the sale of long-term investments. See Note
16 of our Notes to Consolidated Financial Statements for information regarding our sale lease-back transaction.
Cash Flows from Financing Activities
For fiscal 2012 and fiscal 2011, net cash used for financing activities of $234.7 million and $550.4 million, respectively,
was primarily due to treasury stock repurchases offset in part by proceeds from our treasury stock issuances. See the section titled
“Stock Repurchase Program” discussed below.
For fiscal 2010, the primary cash flows from financing activities represented the issuance of $600.0 million of 3.25% senior
notes due February 1, 2015 and $900.0 million of 4.75% senior notes due February 1, 2020. On February 1, 2010, we paid the
outstanding balance on our then existing credit facility with a portion of the funds from our Notes. Other uses of cash during fiscal
2010 were for treasury stock repurchases offset in part by proceeds from our treasury stock issuances.
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 program and to
strategically acquire companies, products or technologies that are complementary to our business.
Restructuring
During the past several years, we have initiated various restructuring plans. During fiscal 2012 the following five restructuring
plans, two of which were the result of large acquisitions, were still active:
• Fiscal 2011 Restructuring Plan
• Fiscal 2009 Restructuring Plan
• Fiscal 2008 Restructuring Plan
• Omniture Restructuring Plan
• Macromedia Restructuring Plan
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