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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
113
The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used
to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the
contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed
upon discount. During fiscal 2009, we repurchased approximately 15.2 million shares at an average price per share of $27.89
through structured repurchase agreements entered into during fiscal 2008 and fiscal 2009. During fiscal 2008, we repurchased
22.4 million shares at an average price of $36.26 through structured repurchase agreements which included prepayments
from fiscal 2007. During fiscal 2007, we repurchased 22.0 million shares at an average price of $40.04 through structured
repurchase agreements which included prepayments from fiscal 2006.
During fiscal 2008, we also repurchased 3.6 million shares at an average price of $36.41 in open market transactions.
For fiscal 2009, 2008 and 2007, the prepayments were classified as treasury stock on our Consolidated Balance Sheets at
the payment date, though only shares physically delivered to us by November 27, 2009, November 28, 2008 and
November 30, 2007 were excluded from the denominator in the computation of earnings per share. As of November 27, 2009
and November 28, 2008, approximately $59.9 million and $134.7 million, respectively, of up-front payments remained under
the agreements.
Stock Repurchase Program II
Under this stock repurchase program, we had authorization to repurchase an aggregate of 50.0 million shares of our
common stock. During the third quarter of fiscal 2008, the remaining authorized number of shares were repurchased. From
the inception of the 50.0 million share authorization under this program, we provided prepayments of $1.9 billion under
structured share repurchase agreements to large financial institutions. During the third quarter of fiscal 2008, the remaining
authorized number of shares were repurchased.
During fiscal 2008, we provided prepayments of $1.0 billion and repurchased 31.9 million shares under these structured
agreements at an average price of $37.15. During fiscal 2007, we provided prepayments of $850.0 million under structured
share repurchase agreements to large financial institutions. During fiscal 2007, we repurchased 17.7 million shares under
these structured agreements at an average price of $40.50 and approximately $133.7 million of up-front payments remained
under these agreements as of November 30, 2007.
During fiscal 2008, we also repurchased 0.5 million shares at an average price of $39.79 in open market transactions.
NOTE 15. COMPREHENSIVE INCOME
The following table sets forth the activity for each component of comprehensive income, net of related taxes, for fiscal
2009, 2008 and 2007 (in thousands):
2009 2008 2007
Net income ......................................... $ 386,508 $ 871,814 $ 723,807
Other comprehensive income (loss):
Available-for-sale securities:
Unrealized gains (losses) on available-for-sale
securities, net of taxes .......................... 6,661 (3,102 ) 14,570
Reclassification adjustment for (gains) losses on
available-for-sale securities recognized during the
period ..................................... (8,752 ) 1,559 2,000
Subtotal available-for-sale securities ........... (2,091 ) (1,543 ) 16,570
Derivative instruments:
Unrealized (losses) gains on derivative instruments .. (14,618 ) 54,967 4,974
Reclassification adjustment for gains on derivative
instruments recognized during
the period .................................. (27,138 ) (13,248 ) (5,510
)
Subtotal derivative instruments ................ (41,756 ) 41,719 (536 )
Foreign currency translation adjustments ............. 11,071 (10,902 ) 5,570
Other comprehensive income (loss) ..................... (32,776 ) 29,274 21,604
Total comprehensive income, net of taxes ............... $ 353,732 $ 901,088 $ 745,411