Adobe 2002 Annual Report Download - page 80

49
The increase in cash used for investing activities in fiscal 2002 compared to 2001 was primarily due to
increased purchases of short-term investments because of lower treasury stock purchases. The decrease in cash used
for investment activities in fiscal 2001 compared to 2000 was primarily due to a reduction in purchases of short-term
and long-term investments in order to purchase treasury stock.
Cash used for financing activities was $223.3 million, $409.6 million, and $148.3 million in fiscal 2002, 2001,
and 2000, respectively. The $223.3 of cash used for financing activities for the year ended November 29, 2002, was
primarily due to the purchase of $293.2 million of treasury stock and payment of dividends of $11.9 million. Cash
used for financing activities in 2002 was offset by proceeds of $81.9 million from the issuance of treasury stock
related to the exercise of stock options under our stock option plans and the sale of stock under the Employee Stock
Purchase Plan. The $409.6 million of cash used for financing activities for the year ended November 30, 2001, was
primarily due to the purchase of $485.1 million of treasury stock and payment of dividends of $12.0 million. Cash
used for financing activities in 2001 was offset by proceeds of $87.5 million from the issuance of treasury stock
related to the exercise of stock options under our stock option plans and the sale of stock under the Employee Stock
Purchase Plan. The $148.4 million of cash used for financing activities for the year ended December 1, 2000, was
primarily due to the purchase of $255.5 million of treasury stock and payment of dividends of $12.0 million. Cash
used for financing activities in 2000 was offset by proceeds of $119.1 million from the issuance of treasury stock
related to the exercise of stock options under our stock option plans and the sale of stock under the Employee Stock
Purchase Plan.
The decrease in cash used for financing activities in fiscal 2002 compared to 2001 was primarily due to less
cash used for the purchase of treasury stock due to a lower average per share cost. The increase in cash used for
financing activities in fiscal 2001 compared to 2000 was due to an increase in the purchase of treasury stock.
Trade receivables decreased $9.2 million in 2002 from 2001 and our days sales outstanding (“DSO”) in
receivables decreased 6 days in 2002 from 2001. The decrease in trade receivables and DSO was primarily due to
our improved collections in 2002. Other receivables increased $12.1 million in 2002 from 2001 primarily due to an
increase in indirect tax refund receivables from increased product purchases from our third party manufacturers
outside of the U.S. Net property and equipment decreased $6.5 million in 2002 from 2001 primarily due to
depreciation and asset retirements. The decrease in net property and equipment was partially offset by an increase
related to our India building that we placed into service during fiscal 2002. Other assets increased $4.5 million in
2002 from 2001 due to additional investments in Adobe Ventures.
Trade and other payables increased $6.9 million in 2002 from 2001 due to an increase in indirect taxes payable
resulting from an increase in foreign sales. Our income tax payable increased approximately $41.1 million in 2002
from 2001 due to an increase in taxable income. Taxable income increased in 2002 over 2001 even though book
income did not increase because of certain expenses that are not currently deductible for tax purposes. Also, the
company accounts for tax contingencies in the United States and foreign tax jurisdictions in accordance with SFAS
No. 5. Please see Note 9 of our Notes to Consolidated Financial Statements for a summary of the changes in the
income taxes payable account. Deferred revenue increased $9.5 million in 2002 from 2001 primarily due to
increased maintenance contracts resulting from our acquisition of Accelio.
Our existing cash, cash equivalents, and investment balances may decline during fiscal 2003 due to further
weakening of the economy or changes in our planned cash outlay. However, we believe that our existing balances
together with our anticipated cash flows from operations will be sufficient to meet our working capital and operating
resource expenditure requirements for the next twelve months. Cash from operations could be affected by various
risks and uncertainties, including, but not limited to: adverse changes in general economic or political conditions in
any of the major countries in which we do business; customer acceptance of new products and upgrades; delays in
shipment of our new products or major new versions of existing products; weakness in demand for application
software, computers and printers; downward sales price adjustments; the impact of competition; and other risks
detailed in the section “Factors That May Affect Our Future Performance.”
We expect to continue our investing activities, including expenditures for computer systems for research and
development, sales and marketing, product support, and administrative staff. Furthermore, cash reserves may be
used to purchase treasury stock and acquire software companies, products, or technologies that are complementary
to our business.