Adobe 2011 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2011 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

63
Research and Development
Research and development expenses consist primarily of salary and benefit expenses for software developers, contracted
development efforts, related facilities costs and expenses associated with computer equipment used in software development.
Research and development expenses increased due to the following:
Compensation and related benefits associated with headcount growth
Compensation associated with incentive compensation and stock-based compensation
Various individually insignificant items
Total change
% Change
2011-2010
6%
—
2
8%
% Change
2010-2009
2%
16
2
20%
We believe that investments in research and development, including the recruiting and hiring of software developers, are
critical to remain 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 application, tool and service offerings.
Sales and Marketing
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:
Compensation and related benefits associated with headcount growth
Marketing spending related to product launches and overall marketing efforts to further
increase revenue
Compensation associated with incentive compensation and stock-based compensation
Various individually insignificant items
Total change
% Change
2011-2010
5%
3
1
2
11%
% Change
2010-2009
3%
3
16
5
27%
General and Administrative
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.
General and administrative expenses increased due to the following:
Compensation and related benefits associated with headcount growth
Professional and consulting fees
Compensation associated with incentive compensation and stock-based compensation
Depreciation and amortization
Various individually insignificant items
Total change
% Change
2011-2010
3%
5
2
(1)
(1)
8%
% Change
2010-2009
5%
4
15
3
1
28%
Professional and consulting fees increased during fiscal 2011 as compared to fiscal 2010 primarily due to increase in fees
for various technology projects and increased litigation expense. Professional and consulting fees increased during fiscal 2010 as
compared to fiscal 2009 primarily due to increases in information technology services to support our business.
Table of Contents