Adobe 2010 Annual Report Download - page 73

73
related primarily to higher valuations on our cash flow and balance sheet hedges due to the strengthening of the U.S. dollar.
Income taxes payable decreased primarily due to payments of approximately $200.0 million for tax liabilities associated with
the repatriation of undistributed foreign earnings as well as a $20.0 million settlement of an IRS exam in the fourth quarter of
fiscal 2010. Accrued restructuring decreased primarily due to payments made related to the fiscal 2009 restructuring plan that
was initiated in the fourth quarter of fiscal 2009 in addition to adjustments made to previously recorded estimates, offset in
part by new charges.
For fiscal 2009, net cash provided by operating activities of $1.1 billion 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.
For fiscal 2008, net cash provided by operating activities of $1.3 billion 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.
Cash flows from investing activities
For fiscal 2010, net cash used for investing activities of $1.2 billion was primarily due to purchases of short-term
investments, offset in part by maturities and sales of short-term investments. Other uses of cash during fiscal 2010
represented purchases of property and equipment and long-term investments and other assets and the acquisition of Day.
These uses of cash were offset in part by proceeds from the sale of equipment under our sale lease-back transaction and the
sale of long-term investments and other assets. See Note 16 of our Notes to Consolidated Financial Statements for
information regarding our sale lease-back transaction.
For fiscal 2009, net cash used for investing activities of $1.5 billion was primarily due to the acquisition of Omniture,
purchases of short-term investments and property and equipment, offset in part by maturities and sales of short-term
investments. Purchases of long-term investments and other assets during fiscal 2009 were less than fiscal 2008 primarily due
to $56.0 million paid in the third quarter of fiscal 2008 for future licensing rights acquired through certain technology
licensing arrangements which did not recur in fiscal 2009.
For fiscal 2008, net cash used for investing activities of $304.7 million was primarily due to purchases of short-term
investments offset in part by maturities and sales of short-term investments. Other uses of cash during fiscal 2008 represented
purchases of property and equipment, long-term investments and other assets and one business combination offset in part by
proceeds from the sale of other investments in equity securities. The uses associated with the purchase of long-term
investments and other assets related primarily to cash paid for future licensing rights acquired through certain technology
licensing arrangements totaling $56.0 million in fiscal 2008.