Adobe 2012 Annual Report Download - page 64

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64
Included in the overall increase in revenue for fiscal 2012 and fiscal 2011 were impacts associated with foreign currency
as shown below. Our currency hedging program is used to mitigate a portion of the foreign currency impact to revenue.
(in millions) Fiscal
2012 Fiscal
2011
Revenue impact: Increase/(Decrease)
EMEA:
Euro ................................................................................................................................. $(46.9) $ 16.4
British Pound................................................................................................................... (1.8) 6.5
Other currencies............................................................................................................... (1.1) 2.9
Total EMEA.................................................................................................................. (49.8) 25.8
Japanese Yen......................................................................................................................... 6.0 38.5
Other currencies ................................................................................................................... 1.5 14.6
Total revenue impact..................................................................................................... (42.3) 78.9
Hedging impact:
EMEA................................................................................................................................... 23.4 3.6
Japanese Yen......................................................................................................................... 7.3 0.2
Total hedging impact..................................................................................................... 30.7 3.8
Total impact.......................................................................................................................... $(11.6) $ 82.7
During fiscal 2012, the U.S. Dollar strengthened against the Euro, British Pound and other EMEA currencies causing
revenue in EMEA measured in U.S. Dollar equivalents to decrease compared with the same reporting period last year. This decrease
was offset in part by the favorable impact to revenue measured in Japanese Yen and other Asian currencies as the U.S. Dollar
weakened against these currencies. Our EMEA and Yen currency hedging programs resulted in hedging gains during fiscal 2012
as noted in the table above.
During fiscal 2011, the Euro, British Pound and other EMEA currencies were favorably impacted as the U.S. Dollar weakened
against these currencies causing revenue in EMEA measured in average U.S. Dollar equivalents to increase compared to fiscal
2010. Revenue measured in both the Japanese Yen and other currencies also were favorably impacted as the U.S. Dollar weakened
against these currencies. During fiscal 2011, our EMEA and Japanese Yen currency hedging programs resulted in hedging gains
as noted above.
See Note 18 of our Notes to Consolidated Financial Statements for further geographic information.
Product Backlog
The actual amount of product backlog at any particular time may not be a meaningful indicator of future business prospects.
Shippable backlog is comprised of unfulfilled orders, excluding those associated with new product releases, those pending credit
review and those not shipped due to the application of our global inventory policy. We had minimal shippable backlog at the end
of the fourth quarter of fiscal 2012. We expect that our shippable backlog will continue to be insignificant in future periods.
Cost of Revenue (dollars in millions)
Fiscal
2012 Fiscal
2011 Fiscal
2010 % Change
2012-2011 % Change
2011-2010
Product ........................................................................ $ 121.7 $ 125.7 $ 127.5 (3)% (1)%
Percentage of total revenue....................................... 3% 3% 3%
Subscription ................................................................ 219.1 194.0 195.6 13 % (1)%
Percentage of total revenue....................................... 5% 5% 5%
Services and support ................................................... 143.0 118.2 80.4 21 % 47 %
Percentage of total revenue....................................... 3% 3% 2%
Total cost of revenue................................................... $ 483.8 $ 437.9 $ 403.5 10 % 9 %
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