Adobe 2007 Annual Report Download - page 40

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112-114 Avenue Kleber
Suites 203, 204, 205
75016 Paris
21,000 Sales and marketing
Germany:
Grobe Elbstrable 27
Hamburg 22767
36,000 Research and product development
UK:
3 Roundwood Avenue
Stockley Park, Uxbridge, UB11 1AY
21,000 Product development, sales, marketing and administration
* The total square footage is 346,000, of which we occupy 272,000 square feet, or approximately 79% of this facility;
74,000 square feet is unoccupied basement space.
** The total square footage is 348,000, of which we occupy 81,000 square feet, or approximately 23% of this facility. The
remaining square footage is subleased.
In general, all facilities are in good condition and are operating at an average capacity of approximately 81%.
ITEM 3. LEGAL PROCEEDINGS
On October 13, 2006, a purported shareholder derivative action entitled Steven Staehr v. Bruce R. Chizen, et al was filed
in the Superior Court of California for the County of Santa Clara against certain of our current and former officers and
directors, and against Adobe as a nominal defendant. The complaint asserts that stock option grants to executives were priced
retroactively by Adobe and were improperly accounted for, and alleges various causes of action based on that assertion. The
complaint seeks payment by the defendants to Adobe of damages allegedly suffered by it and disgorgement of profits, as well
as injunctive relief. On November 27, 2007 the Court granted defendants’ demurrer to the Second Amended Complaint and
dismissed it without leave to amend. On December 11, 2007, plaintiff filed a motion for reconsideration of the Court's order
sustaining the demurrer without leave to amend which is scheduled to be heard on January 29, 2008.
In connection with our anti-piracy efforts, conducted both internally and through organizations such as the Business
Software Alliance, from time to time we undertake litigation against alleged copyright infringers. Such lawsuits may lead to
counter-claims alleging improper use of litigation or violation of other local laws. We believe we have valid defenses with
respect to such counter-claims; however, it is possible that our consolidated financial position, cash flows or results of
operations could be affected in any particular period by the resolution of one or more of these counter-claims.
From time to time, in addition to those identified above, Adobe is subject to legal proceedings, claims, investigations
and proceedings in the ordinary course of business, including claims of alleged infringement of third-party patents and other
intellectual property rights, commercial, employment and other matters. In accordance with accounting principles generally
accepted in the United States of America, Adobe makes a provision for a liability when it is both probable that a liability has
been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and
adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events
pertaining to a particular case. Litigation is inherently unpredictable. However, we believe that we have valid defenses with
respect to the legal matters pending against Adobe. It is possible, nevertheless, that our consolidated financial position, cash
flows or results of operations could be affected by the resolution of one or more of such contingencies.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the quarter ended November 30, 2007.