Adobe 2014 Annual Report Download - page 53

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increases in short-term income tax receivables related to the carryback of R&D and foreign tax credits in the fourth quarter of
fiscal 2013.
For fiscal 2012, net cash provided by operating activities of $1.5 billion was primarily comprised of net income plus the
net effect of non-cash items. The primary working capital sources of cash were net income coupled with increases in deferred
revenue and decreases in trade receivables. Deferred revenue increased primarily due to an increase in activity for both upgrade
plans with support and site and term licenses largely associated with our Digital Media and Digital Marketing enterprise license
agreements. The decrease in trade receivables is primarily related to an increase in revenue linearity and improved collections in
our Digital Marketing portfolio offset in part by higher revenue levels due to the CS6 product release which occurred late in the
second quarter of fiscal 2012.
The primary working capital uses of cash were decreases in accrued restructuring and trade payables. Decreases in accrued
restructuring primarily related to payments and adjustments for employee terminations and facility exit costs associated with the
Fiscal 2011 Restructuring Plan, a significant portion of which were paid and adjusted in the first and second quarters of fiscal
2012. Trade payables decreased primarily due to the timing of payments as a greater number of invoices were paid prior to the
fiscal year end in fiscal 2012 as compared to fiscal 2011.
Cash Flows from Investing Activities
For fiscal 2014, net cash used for investing activities of $490.7 million was primarily due to purchases of short-term
investments, purchases of property and equipment and a business acquisition. These cash outflows were offset in part by sales
and maturities of short-term investments.
For fiscal 2013, net cash used for investing activities of $1,177.8 million was primarily due to our acquisitions of Neolane
and Behance. Other uses of cash during fiscal 2013 represented purchases of short-term investments, purchases of property and
equipment associated with our construction projects in Oregon and India and purchases of long-term technology licenses. These
cash outflows were offset in part by sales and maturities of short-term investments and the sale of the Waltham Property. See Note
2 of our Notes to the Consolidated Financial Statements for further information regarding our acquisitions of Neolane and Behance.
For fiscal 2012, net cash used for investing activities of $834.7 million was primarily due to our acquisition of Efficient
Frontier in the first quarter of fiscal 2012. Other uses of cash during fiscal 2012 represented purchases of short-term investments
and property and equipment, offset in part by sales and maturities of short-term investments. See Note 2 of our Notes to the
Consolidated Financial Statements for further information regarding our acquisition of Efficient Frontier.
Cash Flows from Financing Activities
For fiscal 2014, fiscal 2013 and fiscal 2012, net cash used for financing activities of $507.3 million, $559.1 million and
$234.7 million, respectively, was primarily due to payments for our treasury stock repurchases and costs associated with the
issuance of treasury stock, offset in part by proceeds from the issuance of treasury stock and excess tax benefits from stock-based
compensation. See the section titled “Stock Repurchase Program” discussed below.
We expect to continue our investing activities, including short-term and long-term investments, venture capital, facilities
expansion and purchases of computer systems for research and development, sales and marketing, product support and
administrative staff. Furthermore, cash reserves may be used to repurchase stock under our stock repurchase program and to
strategically acquire companies, products or technologies that are complementary to our business.
In December 2014, we entered into a definitive agreement under which we expect to acquire Fotolia for approximately
$800 million in cash. We expect to finance the acquisition using existing cash, cash equivalents and short-term investment balances,
newly issued debt or drawings from our existing revolving credit agreement. We believe that these resources, in addition to cash
generated from operations, will be sufficient to fund the acquisition. See Note 2 of our Notes to the Consolidated Financial
Statements for further information regarding our acquisition of Fotolia.
Restructuring
During the past several years, we have initiated various restructuring plans. Currently, the Fiscal 2014 Restructuring Plan
is the only plan of significance to us as we consider our restructuring plans initiated in prior years to be substantially complete.
As of November 28, 2014, we have accrued total restructuring charges of $22.3 million of which approximately $15.0
million relates to ongoing termination benefits that are expected to be paid during fiscal 2015. The remaining $7.3 million relates
to the cost of closing redundant facilities and are expected to be paid under contract through fiscal 2021 of which approximately
45% will be paid through 2016. During fiscal 2014, we made payments related to our restructuring plans totaling $11.0 million