What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to announce and provide details on Adobe's financial results for its first fiscal quarter ended February 28, 2014. It includes a furnished press release with these financial results and elaborates on the company's use of non-GAAP financial measures.

What types of expenses does Adobe exclude when calculating its non-GAAP financial results?

Adobe excludes several categories of expenses from its non-GAAP results. These include stock-based and deferred compensation expenses, restructuring and other charges, amortization of purchased intangibles and technology license arrangements, investment gains and losses, accrued loss contingencies from one-time litigation events, and certain income tax adjustments. The company believes these exclusions provide a better view of core operational performance.

Why does Adobe use non-GAAP financial measures?

Adobe uses non-GAAP financial measures for internal purposes such as budgeting, resource allocation, and evaluating operational performance. The company believes these measures provide meaningful supplemental information that helps them understand how to invest in research and development, fund infrastructure, and execute go-to-market strategies. They also use these measures for historical and competitor comparisons.

What is the new non-GAAP tax rate Adobe is using and why?

Beginning in Q1 FY2014, Adobe started using a long-term non-GAAP tax rate of 21%. This rate is intended to eliminate the effects of non-recurring and period-specific income tax items, providing a more stable and consistent basis for evaluating operating performance, planning, and forecasting, as opposed to using actual tax rates which can vary significantly.

ADBE 8-K: Earnings & Results

Summary

Adobe Systems Incorporated (ADBE) filed an 8-K on March 18, 2014, to announce its financial results for the first fiscal quarter ended February 28, 2014. The report primarily furnished a press release detailing these results, which are presented using both GAAP and non-GAAP measures. The company emphasizes its use of non-GAAP financial measures for internal decision-making, including budgeting, resource allocation, and strategic investment in areas like R&D and go-to-market strategies. Investors should note the specific items excluded from non-GAAP calculations, such as stock-based compensation, restructuring charges, amortization of intangibles, investment gains/losses, and certain tax adjustments, as these adjustments are significant in understanding the company's reported performance.

Key Highlights

1Adobe announced its Q1 FY2014 financial results via an 8-K filing, including a furnished press release.
2The company presented both GAAP and non-GAAP financial results.
3Adobe utilizes non-GAAP measures to assess operational performance, plan budgets, and make resource allocation decisions.
4Key exclusions from non-GAAP measures include stock-based compensation, restructuring charges, and amortization of acquired intangibles.
5A new long-term non-GAAP tax rate of 21% was adopted starting in Q1 FY2014 to provide more consistent financial reporting.
6The non-GAAP adjustments are intended to offer a clearer view of core business profitability and facilitate comparisons.
7Investors are cautioned that non-GAAP measures are not a substitute for GAAP and have inherent limitations.

ADOBE INC. 8-K Report, Financial Results (Mar 18, 2014)

Summary

Key Highlights

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