Adobe 2005 Annual Report Download - page 46

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46
General and Administrative
Fiscal
2005
% Change
2005 to 2004
Fiscal
2004
% Change
2004 to 2003 Fiscal
2003
Expenses ................................... $ 166.7 21% $ 138.0 13% $ 122.4
Percentage of total revenues.. 8% 8% 9%
General and administrative expenses consist of compensation and benefit expenses, travel expenses, and related
facilities costs for our finance, facilities, human resources, legal, information services and executive personnel.
General and administrative expenses also include outside legal and accounting fees, provision for bad debts, and
expenses associated with computer equipment and software used in the administration of the business.
General and administrative expenses fluctuated due to the following:
% Change
2005 to 2004
% Change
2004 to 2003
Compensation and related benefits associated with headcount growth
and higher incentive compensation........................................................
8 %
10%
Increased professional fees....................................................................... 6 3
Increased depreciation and amortization .................................................. 3 —
Increased repairs and maintenance ........................................................... 2 —
Decreased legal fees ................................................................................. (2) —
Various individually insignificant items................................................... 4 —
Total change ......................................................................................... 21 % 13%
Restructuring and Other Charges
Fiscal
2005
% Change
2005 to 2004
Fiscal
2004
% Change
2004 to 2003 Fiscal
2003
Expenses ................................... $ — —% $ — *% $ (0.5)
Percentage of total revenues.. — — *%
* Percentage is not meaningful.
We did not incur any restructuring and other charges in fiscal 2005 and 2004. During fiscal 2003, we revised
our estimates of certain costs associated with our restructuring program that was implemented in the fourth quarter
of fiscal 2002. As a result, we revised the accrual related to severance and other charges and facilities.
Non-operating Income
Fiscal
2005
% Change
2005 to 2004
Fiscal
2004
% Change
2004 to 2003 Fiscal
2003
Investment gain (loss) ............... $ (1.3) *% $ 2.5 *% $ (12.9)
Percentage of total revenues.. *% *% (1)%
Interest and other income .......... 38.6 *% 14.3 3% 13.9
Percentage of total revenues.. 2% 1% 1 %
Total non-operating income .. $ 37.3 *% $ 16.8 *% $ 1.0
* Percentage is not meaningful.
Investment Gain (Loss)
Investment gain (loss) consists principally of realized gains or losses from the sale of marketable equity
investments, other-than-temporary declines in the value of marketable and non-marketable equity securities, and
gains and losses of Adobe Ventures.