Adobe 2001 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2001 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In thousands, except share and per share data)
Note 7. Restructuring and Other Charges (Continued)
The following table depicts the activity for the 1999 second-quarter restructuring program through
December 1, 2000:
Accrued Accrued
Balance at Balance at
December 3, Cash December 1,
1999 Payments Adjustments 2000
Severance and related charges ..... $5,207 $(4,787) $(420) $—
Lease termination costs .......... 435 (426) (9) —
Other charges ................. 205 (205) — —
$5,847 $(5,418) $(429) $—
Fiscal 1998 restructuring program
The 1998 restructuring program was implemented to refocus our product development efforts and to
eliminate management redundancies in our organization. This program consisted of severance and related
charges for 364 positions, four of which were executive positions. In addition, we divested two business
units, canceled certain contracts, and vacated leased facilities. These restructuring actions in fiscal 1998
resulted in total charges of $38.2 million, of which approximately $9.1 million were noncash charges.
During fiscal 2000, we paid our remaining obligation related to this restructuring program, and as of
December 1, 2000, no restructuring liability existed.
Accrued Accrued
Balance at Balance at
December 3, Cash December 1,
1999 Payments Adjustments 2000
Severance and related charges ................... $259 $ (87) $(172) $—
Lease termination costs ....................... 78 (7) (71) —
Other charges .............................. 435 (435) — —
$772 $(529) $(243) $—
Other Charges
During the second quarter of fiscal 2000, we recorded other charges of approximately $6.3 million that
were unusual in nature. These charges related to the disposal of certain equipment and one-time litigation-
related expenses.
During the third and fourth quarters of fiscal 1999, we recorded other charges of approximately
$8.4 million that were unusual in nature. These charges included $2.0 million associated with the
cancellation of a contract and $2.2 million for accelerated depreciation related to the adjustment of the
useful life of certain assets as a result of decisions made by our management as part of the restructuring
program. We also incurred a nonrecurring compensation charge of $2.6 million for a terminated employee
and consulting fees of $1.6 million to assist in the restructuring of our operations.
As of November 30, 2001 no obligations existed related to the fiscal 1999 and 1998 restructuring
programs.
80