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70
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.
Summary of Stock Repurchases for fiscal 2009, 2008 and 2007
(in thousands, except average amounts)
Board Approval
Repurchases
2009
2008
2007
Date
Under the Plan
Shares
Average
Shares
Average
Shares
Average
December 1997 ..
From employees(1)
1
$
24.00
5
$
34.89
39
$
39.24
Open market
—
$
—
3,554
$
36.41
—
$
—
Structured
repurchases
(2)
15,231
$
27.89
22,418
$
36.26
22,012
$
40.04
April 2007 ......
Structured
repurchases
(2)
—
$
—
31,859
$
37.15
17,684
$
40.50
Open market
—
$
—
456
$
39.79
—
$
—
Total shares .....
15,232
$
27.89
58,292
$
36.79
39,735
$
40.25
Total cost .......
$
424,851
$
2,144,400
$
1,599,214
_________________________________________
(1) The repurchases from employees represent shares cancelled when surrendered in lieu of cash payments for the
option exercise price or withholding taxes due.
(2) Stock repurchase agreements executed with large financial institutions. See “Stock Repurchase Program I” and
“Stock Repurchase Program II” above.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Our principal commitments as of November 27, 2009, consist of obligations under operating leases, royalty agreements
and various service agreements. See Note 17 of our Notes to Consolidated Financial Statements for additional information
regarding our contractual commitments.
Contractual Obligations
The following table summarizes our contractual obligations as of November 27, 2009 (in millions):
Payment Due by Period
Total
Less than
1 year
1-3 years
3-5 years
More than
5 years
Operating leases..........................
$
249.3
$
53.2
$
74.7
$
44.8
$
76.6
Purchase obligations ......................
210.5
165.5
26.0
6.0
13.0
Debt ...................................
1,000.0
—
—
1,000.0
—
Total .................................
$
1,459.8
$
218.7
$
100.7
$
1,050.8
$
89.6
As of November 27, 2009, the principal outstanding under the credit agreement was $1.0 billion which is due in full no
later than February 16, 2013. Interest associated with this agreement cannot be estimated with certainty by period throughout
the term since it is based on a fluctuating interest rate calculation. Our credit facility contains a financial covenant requiring
us not to exceed a certain maximum leverage ratio.
Our leases for the East and West Towers and the Almaden Tower are both subject to standard covenants including
certain financial ratios as defined in the lease agreements that are reported to the lessors quarterly. As of November 27, 2009,
we were in compliance with all of our covenants. We believe these covenants will not impact our credit or cash in the coming
fiscal year or restrict our ability to execute our business plan.
Under the terms of our credit agreement and lease agreements, we are not prohibited from paying cash dividends unless
payment would trigger an event of default or one currently exists.