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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
NOTE 7. RESTRUCTURING AND OTHER CHARGES (CONTINUED)
As of November 28, 1997, approximately $8.4 million in accrued restructuring costs remained
resulting from the mergers with Aldus and Frame in fiscal 1994 and fiscal 1995, respectively. During fiscal
1998, lease payments of $2.3 million were made against the accrual and, as a result of the renegotiation of
certain facility leases and the sublease of certain facilities in fiscal 1998, $3.4 million of the restructuring
accrual related to the Aldus and Frame acquisitions was reversed in the second half of fiscal 1998. The
remaining accrual of $2.7 million at November 27, 1998 relates to lease termination costs primarily in
Europe.
NOTE 8. INCOME TAXES
Income before income taxes includes net income from foreign operations of approximately $18.8 mil-
lion, $59.3 million, and $25.4 million for the years ended November 27, 1998, November 28, 1997, and
November 29, 1996, respectively.
The provision for income taxes consisted of the following:
Years Ended
November 27 November 28 November 29
1998 1997 1996
Current:
United States federal ....................... $34,466 $ 42,238 $65,118
Foreign ................................. 15,394 29,260 12,290
State and local ............................ 6,869 12,320 12,731
Total current ............................... 56,729 83,818 90,139
Deferred:
United States federal ....................... (4,312) (1,721) (6,825)
Foreign ................................. (1,500) (2,071) (780)
State and local ............................ (962) (380) (1,815)
Total deferred .............................. (6,774) (4,172) (9,420)
Charge in lieu of taxes attributable to employee stock
plans ................................... 12,595 29,607 10,828
$62,550 $109,253 $91,547
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