Adobe 2015 Annual Report Download - page 52

Table of Contents
52
Cash Flows from Investing Activities
For fiscal 2015, net cash used for investing activities of $1.49 billion was primarily due to purchases of short-term investments
and our acquisition of Fotolia. Other uses of cash during fiscal 2015 represented purchases of property and equipment, and long-
term investments and other assets. These cash outflows were offset in part by sales and maturities of short-term investments and
proceeds received from the sale of certain property assets. See Note 2 and Note 6 of our Consolidated Financial Statements for
more detailed information regarding our acquisition of Fotolia and sale of property assets, respectively.
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 $1.18 billion 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 certain property assets. See Note
2 of our Notes to the Consolidated Financial Statements for more detailed information regarding our acquisitions of Neolane and
Behance.
Cash Flows from Financing Activities
In January 2015, we issued $1 billion of 3.25% senior notes due February 1, 2025 (the “2025 Notes”). Our proceeds were
approximately $989.3 million which is net of an issuance discount of $10.7 million. The 2025 Notes rank equally with our other
unsecured and unsubordinated indebtedness. In addition, we incurred issuance costs of $7.9 million in connection with our 2025
Notes. Both the discount and issuance costs are being amortized to interest expense over the term of the 2025 Notes using the
effective interest method.
We used $600 million of the proceeds from the 2025 Notes offering to repay the outstanding balance plus accrued and
unpaid interest of the $600 million 3.25% senior notes due February 1, 2015 (“2015 Notes”). The remaining proceeds were used
for general corporate purposes. See Note 16 of our Consolidated Financial Statements for more detailed information.
In addition to the 2025 Notes issuance and 2015 Notes repayment, other financing activities during fiscal 2015 include
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.
For fiscal 2014 and 2013, net cash used for financing activities of $507.3 million and $559.1 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.
Restructuring
During the past several years, we have initiated various restructuring plans. We consider our restructuring plans to be
substantially complete.
As of November 27, 2015, we have accrued total restructuring charges of $4.7 million, substantially all of which relate to
the cost of closing redundant facilities and is expected to be paid under contract through fiscal 2021 for which approximately 75%
will be paid through fiscal 2017. During fiscal 2015, we made payments related to our restructuring plans totaling $18.2 million
which consisted of $16.6 million in payments associated with termination benefits and contract terminations and the remaining
payments related to the closing of redundant facilities.
As of November 28, 2014, we had accrued total restructuring charges of $22.3 million of which approximately $15.0 million
related to termination benefits and contract terminations. The remaining accrued restructuring charges of $7.3 million related to
the cost of closing redundant facilities. During fiscal 2014, we made payments related to our restructuring plans totaling $11.0