Adobe 2014 Annual Report Download - page 45

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45
Fiscal 2013 Revenue by Geography Compared to Fiscal 2012 Revenue by Geography
Revenue declined across all geographies during fiscal 2013 as compared to fiscal 2012. Revenue in the Americas and APAC
decreased during fiscal 2013 due to decreases in Digital Media and Print and Publishing revenue, offset in part by increases in
Digital Marketing revenue. Revenue in EMEA decreased during fiscal 2013 due to decreases in Digital Media revenue, offset in
part by increases in Digital Marketing and Print and Publishing revenue. Within each geographical region, the fluctuations in
revenue by reportable segment were attributable to the factors noted in the segment information above.
Included in the overall change in revenue for fiscal 2014 and fiscal 2013 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
2014 Fiscal
2013
Revenue impact: Increase/(Decrease)
EMEA:
Euro ................................................................................................................................. $ 12.3 $ 9.1
British Pound................................................................................................................... 12.9 (3.9)
Other currencies............................................................................................................... (0.2) 0.6
Total EMEA.................................................................................................................. 25.0 5.8
Japanese Yen......................................................................................................................... (25.7)(63.6)
Other currencies ................................................................................................................... (8.9)(5.6)
Total revenue impact..................................................................................................... (9.6)(63.4)
Hedging impact:
EMEA................................................................................................................................... 10.1 3.7
Japanese Yen......................................................................................................................... 8.6 32.3
Total hedging impact..................................................................................................... 18.7 36.0
Total impact.......................................................................................................................... $ 9.1 $ (27.4)
During fiscal 2014, the U.S. Dollar strengthened against the Japanese Yen and other Asian currencies causing revenue in
APAC measured in U.S. Dollar equivalents to decrease compared with the year-ago period. This decrease was offset by the
favorable impact to revenue measured in EMEA currencies as the U.S. Dollar weakened against the Euro and the British Pound
for the majority of fiscal 2014. Our EMEA and Yen currency hedging programs resulted in hedging gains during fiscal 2014.
During fiscal 2013, the U.S. Dollar strengthened against the Japanese Yen and other Asian currencies causing revenue in
APAC measured in U.S. Dollar equivalents to decrease compared with the year-ago period. This decrease was partially offset by
the favorable impact to revenue measured in EMEA currencies as the U.S. Dollar generally weakened against these currencies.
Our EMEA and Yen currency hedging programs resulted in hedging gains during fiscal 2013.
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 2014 and fiscal 2013. We expect that our shippable backlog will continue to be insignificant in future
periods.
The deferred revenue balance on our consolidated balance sheet does not represent the total contract value of annual or
multi-year, non-cancellable subscription agreements. Unbilled deferred revenue represents expected future billings which are
contractually committed under our existing subscription, SaaS and managed services agreements that have not been invoiced and
are not recorded in deferred revenue within our financial statements. Our presentation of unbilled deferred revenue backlog may
differ from that of other companies in the industry. As of November 28, 2014, we had unbilled deferred revenue backlog of
approximately $1.7 billion of which approximately 60% to 65% is not reasonably expected to be billed during fiscal 2015. As of
November 29, 2013, we had unbilled deferred revenue backlog of approximately $1.0 billion.