Adobe 2015 Annual Report Download - page 3

Table of Contents
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Forward-Looking Statements
In addition to historical information, this Annual Report on Form 10-K contains forward-looking statements, including
statements regarding product plans, future growth, market opportunities, strategic initiatives, industry positioning, customer
acquisition, the amount of recurring revenue and revenue growth. In addition, when used in this report, the words “will,” “expects,”
“could,” “would,” “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “looks for,” “looks
to,” “continues” and similar expressions, as well as statements regarding our focus for the future, are generally intended to identify
forward-looking statements. Each of the forward-looking statements we make in this report involves risks and uncertainties that
could cause actual results to differ materially from these forward-looking statements. Factors that might cause or contribute to
such differences include, but are not limited to, those discussed in the section entitled “Risk Factors” in Part I, Item 1A of this
report. You should carefully review the risks described herein and in other documents we file from time to time with the U.S.
Securities and Exchange Commission (the “SEC”), including our Quarterly Reports on Form 10-Q to be filed in 2016. You should
not place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-
K. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances
after the date of this document, except as required by law.
PART I
ITEM 1. BUSINESS
Founded in 1982, Adobe Systems Incorporated is one of the largest and most diversified software companies in the world.
We offer a line of products and services used by creative professionals, marketers, knowledge workers, application developers,
enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and
experiences across multiple operating systems, devices and media. We market and license our products and services directly to
enterprise customers through our sales force and to end users through app stores and our own website at www.adobe.com. We
offer many of our products via a Software-as-a-Service (“SaaS”) model or a managed services model (both of which are referred
to as a hosted or cloud-based model) as well as through term subscription and pay-per-use models. We also distribute certain
products and services through a network of distributors, value-added resellers (“VARs”), systems integrators (“SIs”), independent
software vendors (“ISVs”), retailers, software developers and original equipment manufacturers (“OEMs”). In addition, we license
our technology to hardware manufacturers, software developers and service providers for use in their products and solutions. Our
products run on personal and server-based computers, as well as on smartphones, tablets and other devices, depending on the
product. We have operations in the Americas, Europe, Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”). See Note
18 of our Notes to Consolidated Financial Statements for further geographical information.
Adobe was originally incorporated in California in October 1983 and was reincorporated in Delaware in May 1997. We
maintain executive offices and principal facilities at 345 Park Avenue, San Jose, California 95110-2704. Our telephone number
is 408-536-6000 and our website is www.adobe.com. Investors can obtain copies of our SEC filings from this site free of charge,
as well as from the SEC website at www.sec.gov. The information posted to our website is not incorporated into this Annual Report
on Form 10-K.
BUSINESS OVERVIEW
For over 30 years, Adobe’s innovations have transformed how individuals, businesses and governments interact. Across
these markets, we help our customers create and deliver the most compelling experiences in a streamlined workflow, and optimize
those experiences for greater return on investment. Our solutions turn ordinary interactions into valuable digital experiences, across
media and devices, anywhere, anytime.
While we continue to offer a broad portfolio of products and solutions, we focus our investments in two strategic growth
areas:
Digital Media—providing tools, services and solutions that enable individuals, small and medium businesses and enterprises
to create, publish and promote their content anywhere. Our customers include content creators, web designers, app developers
and digital media professionals, as well as management in marketing departments and agencies, companies and publishers. Our
customers also include knowledge workers who create, collaborate and distribute documents. This is the core of what we have
delivered for over 25 years, and we have evolved our business model rapidly to provide these customers with a more complete
and integrated workflow across the variety of new devices, formats and business models that continue to emerge.
Digital Marketing—providing solutions and services for creating, managing, executing, measuring and optimizing digital
advertising and marketing campaigns across multiple channels. Our customers include marketers, advertisers, agencies, publishers,
merchandisers, web analysts, marketing executives, information management executives, product development executives, and