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66
LIQUIDITY AND CAPITAL RESOURCES
This data should be read in conjunction with the Consolidated Statements of Cash Flows.
(in millions)
Fiscal
2009
Fiscal
2008
Cash, cash equivalents and short-term investments ...........................
$
1,904.5
$
2,019.2
Working capital ........................................................
$
1,629.1
$
1,972.5
Stockholders’ equity ....................................................
$
4,890.6
$
4,410.4
Summary of our cash flows is as follows (in millions):
Fiscal
2009
Fiscal
2008
Fiscal
2007
Net cash provided by operating activities ........................
$
1,117.7
$
1,280.7
$
1,441.1
Net cash (used for) provided by investing activities ................
(1,497.1
)
(304.7
)
81.5
Net cash provided by (used for) financing activities ...............
477.7
(1,021.6
)
(1,350.4
)
Effect of foreign currency exchange rates on cash and cash
equivalents ...............................................
14.7
(14.4
)
1.7
Net increase (decrease) in cash and cash equivalents ...............
$
113.0
$
(60.0
)
$
173.9
Our primary source of cash is receipts from revenue. The primary uses of cash are payroll related expenses; general
operating expenses including marketing, travel and office rent; and cost of product revenue. Another source of cash is
proceeds from the exercise of employee options and participation in the employee stock purchase plan (“ESPP”). Another use
of cash is our stock repurchase program, which is described below.
Cash flows from operating activities
Net cash provided by operating activities of $1.1 billion for fiscal 2009, was primarily comprised of net income plus the
net effect of non-cash expenses. The primary working capital sources of cash were net income coupled with decreases in
trade receivables, prepaid expenses and other current assets and increases in income taxes payable. Trade receivables
decreased primarily from CS4 revenue that was shipped in the latter half of the fourth quarter of fiscal 2008 and collected
during the first quarter of fiscal 2009, in addition to lower overall gross revenue and improved collections.
The primary working capital uses of cash were decreases in accrued expenses, deferred revenue, trade payables and
accrued restructuring. Accrued expenses decreased primarily due to payments for employee bonuses and commissions related
to fiscal 2008. Decreases in deferred revenue related primarily to deferred revenue that was recognized in the first quarter of
fiscal 2009 associated with our free of charge upgrades for CS4 and Adobe Photoshop Lightroom products, as well as
declines in maintenance and support orders. Accrued restructuring decreased primarily due to payments related to the 2008
restructuring program that was initiated in the fourth quarter of fiscal 2008, offset in part by new charges related to our 2009
restructuring program and acquisition of Omniture.
Net cash provided by operating activities of $1.3 billion for fiscal 2008, was primarily comprised of net income plus the
net effect of non-cash expenses. The primary working capital sources of cash were increases in net income, deferred revenue,
accrued restructuring and trade payables. Increases in deferred revenue related to maintenance and support and free of charge
upgrade plan purchases which offset in part, decreases in deferred revenue related to royalties. Accrued restructuring costs
increased due to the restructuring program initiated in the fourth quarter of fiscal 2008 offset in part by payments of facility
costs during fiscal 2008 associated with the Macromedia acquisition. See Note 11 of our Notes to Consolidated Financial
Statements for information regarding our restructuring charges.
The primary working capital uses of cash were increases in trade receivables and prepaid expenses and other current
assets coupled with decreases in income taxes payable and accrued expenses. Trade receivables increased primarily as a
result of high sales of our CS4 family of products at the end of fiscal 2008. Income taxes payable decreased primarily due to
payments made as the result of the completion of a U.S. income tax examination covering our fiscal years 2001 through
2004. Accrued expenses decreased primarily due to payments for employee bonuses and profit sharing offset in part by
increases in royalty accruals and charitable contributions.
Net cash provided by operating activities of $1.4 billion for fiscal 2007, was primarily comprised of net income, net of
non-cash related expenses.