Summary
This 8-K filing from Adobe Inc. (ADBE) on September 20, 2016, primarily announces the company's financial results for its third fiscal quarter ended September 2, 2016, as detailed in an accompanying press release. The report emphasizes Adobe's record revenue for the quarter. A significant portion of the filing is dedicated to explaining Adobe's use of non-GAAP financial measures, outlining the adjustments made and the rationale behind them. The company believes these non-GAAP figures provide a more meaningful view of operational performance and facilitate comparisons with historical results and peers by excluding items such as stock-based compensation, restructuring charges, and amortization of acquired intangibles.
Key Highlights
- 1Adobe reported record revenue for its third fiscal quarter ended September 2, 2016.
- 2The filing details Adobe's non-GAAP financial reporting practices, which exclude various charges to better reflect core operational performance.
- 3Key exclusions in non-GAAP measures include stock-based compensation, restructuring charges, and amortization of purchased intangibles.
- 4The company uses non-GAAP measures to aid in internal budgeting, resource allocation, and to provide investors with a clearer view of operational profitability.
- 5Adobe's press release, furnished as an exhibit, provides detailed financial results, including non-GAAP metrics like operating income, net income, tax rate, and diluted earnings per share.
- 6The company explicitly states that non-GAAP measures are not a substitute for GAAP and should be considered alongside GAAP results.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce Adobe's financial results for its third fiscal quarter ended September 2, 2016, and to furnish the associated press release detailing these results and the company's use of non-GAAP financial measures.
Adobe uses non-GAAP financial measures because it believes they provide a more meaningful supplemental view of its operational performance and financial condition. These measures are used internally for budgeting and decision-making, and they aim to offer investors a better understanding of the company's core profitability by excluding certain expenses that are not reflective of ongoing operations, such as stock-based compensation, restructuring costs, and amortization of acquired intangibles.
Key items excluded from Adobe's non-GAAP calculations include stock-based and deferred compensation expenses, restructuring and other charges, amortization of purchased intangibles and technology license arrangements, accrued loss contingencies from one-time litigation events, investment gains and losses, and certain income tax adjustments. These exclusions are intended to provide a clearer picture of core operational results.
While the 8-K itself primarily furnishes a press release with financial results, the press release typically includes both GAAP and non-GAAP figures. The company explicitly states that its non-GAAP measures are not a substitute for GAAP and should be evaluated in conjunction with the corresponding GAAP measures.