Adobe 2004 Annual Report Download - page 50

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Equity Compensation Plan Information
The following table gives information about our common stock that may be issued under our existing equity
compensation plans as of December 3, 2004:
Plan Category
Number of Securities
to Be Issued Upon
Exercise of
Outstanding Options
(a)
Weighted Average
Exercise Price of
Outstanding Options
(b)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
(c)
Equity compensation plans approved by
stockholders.............................................
.
38,266,316 $ 37.04 23,766,048 *
* Includes 2.8 million shares and 12.7 million shares, respectively, which are reserved for issuance under the 1994 Performance and
Restricted Stock Plan and the 1997 Employee Stock Purchase Plan as of December 3, 2004.
LIQUIDITY AND CAPITAL RESOURCES
Fiscal
2004
% Change
2004 to 2003
Fiscal
2003
% Change
2003 to 2002 Fiscal
2002
Cash, cash equivalents and
short-term investments ......... $ 1,313.2 20% $ 1,096.5 78% $ 617.7
Working capital......................... 1,099.6 23% 892.5 104% 436.9
Stockholders’ equity.................. $ 1,423.5 29% $ 1,100.8 63% $ 674.3
Our primary source of cash is receipts from revenue. The primary uses of cash are payroll (salaries, bonuses,
and benefits), general operating expenses (marketing, travel, office rent) and cost of product revenue. Another
source of cash is proceeds from the exercise of employee options and another use of cash is our stock repurchase
program, which is detailed below.
Cash provided by operating activities for fiscal 2004 of $683.7 million, primarily comprised net income, net of
non-cash related expenses. Working capital sources of cash were increases in accrued expenses, deferred revenue
and a decrease in accounts receivable. Accrued expenses increased primarily due to compensation costs. Deferred
revenue increased primarily due to increased maintenance and support obligations. Our accounts receivable
decreased due to increased levels of cash collections. Our days sales outstanding in trade receivables (“DSO”)
decreased from 37 days at November 28, 2003 to 30 days at December 3, 2004. Working capital uses of cash
included a decrease in income taxes payable due to tax payments made for both agreed and disputed tax
assessments.
Cash provided by operating activities for fiscal 2003 of $433.1 million primarily comprised net income, net of
non-cash related expenses, and increases in accrued expenses, income taxes payable and deferred revenue. Accrued
expenses increased primarily due to incentive compensation related costs, sales and marketing programs, legal fees
and accruals for major product releases. Income taxes payable increased due to an increase in taxable income.
Deferred revenue increased primarily due to increased maintenance obligations. These increases were partially
offset by an increase in receivables at the end of the year and a decrease in accrued restructuring charges. The
increase in receivables was primarily due to the increase in revenues during the year and the launch of our new
Creative Suites and related CS products at the end of the year. The decrease in accrued restructuring is primarily due
to the payments of severance and facility costs.
During fiscal 2002, cash provided by operating activities of $329.3 million was primarily due to net income, net
of non-cash related expenses, an increase in income taxes payable and deferred revenue and a decrease in accounts
receivable. Income taxes payable increased due to an increase in taxable income. Deferred revenue increased
primarily due to increased maintenance obligations. The decrease in trade receivables was primarily due to our
improved collections during fiscal 2002. These increases in cash were partially offset by a decrease in accrued
restructuring charges and accrued expenses. Accrued restructuring charges decreased primarily due to the payment