Adobe 2001 Annual Report Download - page 78

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 5. Other Assets (Continued)
As of November 30, 2001, intangibles and other assets consisted primarily of capitalized localization
costs of $9.1 million and other intangible assets of $4.5 million. As of December 1, 2000, intangibles and
other assets consist primarily of capitalized localization costs of $4.5 million and other intangible assets of
$3.2 million. Amortization expense related to goodwill, purchased technology, capitalized localization, and
other intangible assets was $26.8 million and $14.0 million in fiscal 2001 and 2000, respectively.
Note 6. Accrued Expenses
Accrued expenses consisted of the following:
November 30, December 1,
2001 2000
Accrued compensation and benefits ................. $ 44,555 $ 96,162
Sales and marketing allowances .................... 4,956 6,435
Minority interest ............................... 544 1,999
Other ....................................... 69,203 77,265
$119,258 $181,861
Note 7. Restructuring and Other Charges
Fiscal 2001 restructuring program
In the fourth quarter of fiscal 2001, we implemented a restructuring plan to realign our workforce to
our future strategic goals and to align our resources with our fiscal 2002 revenue targets. We believe this
restructuring will enable us to increase our investment in digital imaging, digital video, and ePaper-based
businesses in fiscal 2002. As part of the restructuring program, we implemented a reduction in force of 247
positions, affecting organizations throughout the company. The reductions came predominantly from sales
and marketing and in our North American operations, and as of November 30, 2001, the majority of these
terminations were completed. Total restructuring and other charges was $12.1 million, of which all related
to severance and related charges associated with the reduction in force. Of the $12.1 million in charges,
$9.6 million remains accrued at November 30, 2001. The majority of these severance payments will be paid
in early 2002.
The following table depicts the restructuring and other charges at November 30, 2001:
Accrual Balance Accrued Balance
at at
December 1, Total Charges Cash November 30,
2000 (Credits) Payments 2001
Severance and related
charges ............... $— $12,063 $(2,490) $9,573
During fiscal 1999 and 1998, we implemented three different restructuring programs. These separate
restructuring programs were directly focused on improving our competitive position as well as enhancing
our allocation of resources.
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