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

The main purpose of this 8-K filing is to announce Adobe Inc.'s financial results for its second fiscal quarter ended June 3, 2016, and to provide details on the non-GAAP financial measures the company uses to report its performance. The filing includes a press release that furnishes these financial results.

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

Adobe excludes several types of expenses from its non-GAAP financial 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, and certain income tax adjustments. The company also excludes the income tax effect of these pre-tax adjustments.

Why does Adobe use non-GAAP financial measures?

Adobe uses non-GAAP financial measures to provide supplemental information regarding its operational performance. Management believes these measures offer a better understanding of how to invest in research and development, fund infrastructure, and implement go-to-market strategies. They are used for internal budgeting and decision-making, and to allow investors and analysts to better understand and evaluate operational results and compare them across accounting periods and to peer companies.

Are Adobe's non-GAAP financial measures the same as GAAP measures?

No, Adobe's non-GAAP financial measures are not in accordance with, or an alternative for, Generally Accepted Accounting Principles (GAAP). They may differ from non-GAAP measures used by other companies. Adobe explicitly states that these measures have limitations, do not reflect all amounts determined under GAAP, and should only be used in conjunction with the corresponding GAAP measures.

ADBE 8-K: Earnings & Results

Summary

This 8-K filing from Adobe Inc. (ADBE), dated June 21, 2016, announces the company's financial results for its second fiscal quarter ended June 3, 2016, as detailed in an attached press release. The primary focus of the filing is the presentation of non-GAAP financial measures, which Adobe uses internally for budgeting and operational decision-making. These non-GAAP figures exclude items such as stock-based compensation, restructuring charges, amortization of purchased intangibles, investment gains/losses, and certain tax adjustments, with the aim of providing a clearer view of core operational performance and allowing for better comparison with historical results and peer companies. Investors should note that while Adobe believes these non-GAAP measures offer valuable supplemental information for assessing operational performance and making investment decisions, they are not prepared in accordance with GAAP and have limitations. The company explicitly states that these measures should be used in conjunction with the corresponding GAAP measures. The press release itself, furnished as an exhibit, likely contains the specific financial figures for the quarter, including revenue, profitability, and earnings per share, both on a GAAP and non-GAAP basis. The filing serves as a communication channel for these key financial updates and management's perspective on operational health.

Key Highlights

1Adobe Inc. reported its financial results for the second fiscal quarter ended June 3, 2016, via a press release filed on June 21, 2016.
2The filing predominantly discusses the company's use of non-GAAP financial measures, which exclude specific expenses to better reflect operational performance.
3Key exclusions in non-GAAP reporting include stock-based compensation, restructuring charges, amortization of purchased intangibles, and investment gains/losses.
4Adobe utilizes these non-GAAP measures for internal budgeting, resource allocation, and to facilitate comparisons with historical results and peer companies.
5The company emphasizes that non-GAAP measures are supplemental and should be considered alongside GAAP financial results.
6The press release, furnished as Exhibit 99.1, contains the specific financial results for the quarter, including non-GAAP metrics.
7Management believes non-GAAP measures provide greater transparency into key metrics used for financial and operational decision-making.

ADOBE INC. 8-K Report, Financial Results (Jun 21, 2016)

Summary

Key Highlights

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