Adobe 2008 Annual Report Download - page 55

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55
Research and development expenses increased due to the following:
% Change
2008 to 2007
% Change
2007 to 2006
Compensation and related benefits associated with headcount
growth ............................................
7
%
9
%
Compensation associated with incentive compensation and
stock-based compensation ............................
—
5
Various individually insignificant items ...................
1
—
Total change .......................................
8
%
14
%
We believe that investments in research and development, including the recruiting and hiring of software developers, are
critical to remaining competitive in the marketplace and are directly related to continued timely development of new and
enhanced products. We will continue to focus on long-term opportunities available in our end markets and make significant
investments in the development of our desktop application and server-based software products.
Sales and Marketing
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
Expenses ..........................
$
1,089.3
11
%
$
984.4
14
%
$
867.1
Percentage of total revenue .........
30
%
31
%
34
%
Sales and marketing expenses consist primarily of salary and benefit expenses, sales commissions, travel expenses and
related facilities costs for our sales, marketing, order management and global supply chain management personnel. Sales and
marketing expenses also include the costs of programs aimed at increasing revenue, such as advertising, trade shows, public
relations and other market development programs.
Sales and marketing expenses increased due to the following:
% Change
2008 to 2007
% Change
2007 to 2006
Compensation and related benefits associated with headcount growth ...
5
%
3
%
Marketing spending related to product launches and overall marketing
efforts to further increase revenue ..............................
4
2
Compensation associated with incentive compensation and stock-based
compensation ...............................................
1
6
Various individually insignificant items ...........................
1
3
Total change ...............................................
11
%
14
%
General and Administrative
Fiscal
2008
% Change
2008 to 2007
Fiscal
2007
% Change
2007 to 2006
Fiscal
2006
Expenses ...........................
$
337.3
23
%
$
275.0
17
%
$
234.6
Percentage of total revenue ..........
9
%
9
%
9
%
General and administrative expenses consist primarily 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, expenses
associated with computer equipment and software used in the administration of the business, charitable contributions and
various forms of insurance.