Adobe 2007 Annual Report Download - page 58

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The primary working capital uses of cash were payments for accrued restructuring costs and outlays for prepaid
expenses and other current assets. Accrued restructuring decreased primarily due to payments for facility and severance costs
for fiscal 2007. See Note 9 of our Notes to Consolidated Financial Statements for information regarding our restructuring
charges.
Net cash provided by operating activities of $900.0 million for fiscal 2006, was primarily comprised of net income, net
of non-cash related expenses. The primary working capital sources of cash were decreases in other current assets and
increases in income taxes payable and deferred revenue. Income taxes payable increased primarily due to higher current tax
liabilities related to overall increased taxable income. Deferred revenue increased primarily due to increased maintenance and
support obligations.
Working capital uses of cash included increases in trade receivables and decreases in accrued restructuring and accrued
expenses. Our trade receivables increased due to increased revenue and our DSO was 48 days ending fiscal 2006. Net
changes to accrued expenses was attributable primarily to decreases in compensation related costs and other expenses.
Accrued restructuring decreased due to payments made during fiscal 2006.
Net cash provided by operating activities of $758.4 million for fiscal 2005, was primarily comprised of net income, net
of non-cash related expenses. The primary working capital sources of cash were increases in accrued expenses, income taxes
payable and deferred revenue. Net changes to accrued expenses were attributable primarily to increases in compensation
related costs and marketing expenses. Income taxes payable increased as a result of higher current tax liabilities related to
repatriation of certain foreign earnings and overall increased taxable income. Deferred revenue increased primarily due to
increased maintenance and support obligations including deferrals for free upgrades associated with certain product releases.
Working capital uses of cash included increases in trade receivables and other current assets. Our accounts receivable
increased due to higher revenue during the period. Our DSO was 31 days ending fiscal 2005.
We discontinued our practice of paying quarterly cash dividends after payment of the dividend for the first quarter of
fiscal 2005. Under the terms of our credit agreement and lease agreements we are not prohibited from paying cash dividends
unless payment would trigger an event of default or one currently exists. We intend to use the cash previously used to pay the
quarterly dividend for our ongoing stock repurchase programs.
Cash flows from investing activities
Net cash from investing activities decreased from net cash provided for fiscal 2006 of $195.2 million to net cash
provided for fiscal 2007 of $83.3 million. In fiscal 2006, net cash acquired with the Macromedia acquisition amounted to
$488.4 million and the sale of our minority equity investment in Atom Entertainment, Inc. amounted to $82.3 million. No
similar transactions of this magnitude occurred during fiscal 2007. The primary sources of cash during fiscal 2007 were sales
and maturities of short-term investments offset in part by purchases of short-term investments. Uses of cash during fiscal
2007 included purchases of property and equipment, purchases of long-term investments and other assets which relate
primarily to the technology licensing arrangements that occurred during the second quarter of fiscal 2007 and three
acquisitions completed in fiscal 2007. Additionally, as part of our lease extension for the Almaden Tower lease completed
during the second fiscal quarter of 2007, we purchased a portion of the lease receivable totaling $80.4 million. See Note 15 of
our Notes to Consolidated Financial Statements for further information regarding this lease extension.
Net cash from investing activities increased from net cash used for fiscal 2005 of $348.4 million to net cash provided for
fiscal 2006 of $195.2 million primarily due to net cash acquired with the Macromedia acquisition and the sale of our minority
equity investment in Atom Entertainment, Inc. in fiscal 2006. These proceeds were offset in part by purchases of short-term
investments, net of sales and maturities, acquisitions of property, plant and equipment, cash paid for acquisitions and
purchases of long-term investments.
Cash flows from financing activities
Net cash used for financing activities increased $602.8 million for a total of $1.4 billion during fiscal 2007 as compared
to cash used for the same period last year. Net cash used for financing activities increased $500.8 million for a total of $747.4
million during fiscal 2006 as compared to cash used of $246.6 million during fiscal 2005. Increases in both periods presented
were primarily due to additional purchases of treasury stock when compared to the prior year. Cash used for stock