Adobe 2007 Annual Report Download - page 86

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86
At December 1, 2006, accrued restructuring charges of $31.4 million includes $9.8 million recorded in accrued
restructuring, current and $21.6 million, related to long-term facilities obligations, recorded in accrued restructuring, non-
current in the accompanying consolidated balance sheets. The initial restructuring charges are the total expected costs to be
incurred under the restructuring plan.
Adobe Restructuring Charges
In connection with the worldwide restructuring plan, we recognized costs related to (i) termination benefits for former
Adobe employees whose positions were eliminated, (ii) the closure of Adobe facilities and (iii) the cancellation of certain
contracts held by Adobe.
The following table sets forth a summary of the Adobe restructuring activity ending fiscal 2007:
2006 Cash Payments Adjustments 2007
Termination benefits............. $ 179 $ (37) $ (142 ) $ —
Cost of closing redundant facilities . 467 (387) (80 ) —
Total.......................... $ 646 $ (424) $ (222 ) $ —
As of November 30, 2007, we have no remaining accrued restructuring charges associated with Adobe restructuring
activity recorded in the accompanying consolidated balance sheets as compared to $0.6 million as of December 1, 2006.
Total costs under the plan incurred and expected to be incurred were $19.5 million and $19.0 million, respectively. The
world-wide consolidation of facilities was completed in fiscal 2007.
The following table sets forth a summary of the Adobe restructuring activity ending fiscal 2006:
Initial
Restructuring
Charges Cash Payments Adjustments 2006
Termination benefits............. $ 18,879 $ (18,597) $ (103 ) $ 179
Cost of closing redundant facilities . — (479) 946 467
Cost of contract termination....... 105 (11) (94 ) —
Total.......................... $ 18,984 $ (19,087) $ 749 $ 646
Accrued restructuring charges as of December 1, 2006 include $0.3 million recorded in accrued restructuring, current
and $0.3 million, related to long-term facilities obligations recorded in accrued restructuring, non-current in the
accompanying consolidated balance sheets.
Note 10. Benefit Plans
Pretax Savings Plan
In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which
is a pretax savings plan covering substantially all of our United States employees. Under the plan, eligible employees may
contribute up to 65% of their pretax salary, subject to the Internal Revenue Service annual contribution limits. In fiscal 2007,
we matched 50% of the first 6% of the employee’ s contribution. We contributed $14.5 million, $11.2 million and $8.9
million in fiscal 2007, 2006 and 2005, respectively. We can terminate matching contributions at our discretion.
Profit Sharing Plan
We have a profit sharing plan that provides for profit sharing payments to all eligible employees following each quarter
in which we achieve at least 80% of our budgeted earnings for the quarter. The plan, as well as the annual operating budget
on which the plan is based, is approved by our Board of Directors. We contributed $67.6 million, $51.9 million and $45.7
million to the plan in fiscal 2007, 2006 and 2005, respectively.