Adobe 2010 Annual Report Download - page 109

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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
109
Summary of Restructuring Plans
The following table sets forth a summary of restructuring activities related to all of our restructuring plans described
above during fiscal 2010 (in thousands):
November 27,
2009
Costs
Incurred
Cash
Payments
Other
Adjustments
December 3,
2010
Fiscal 2009 Plan:
Termination benefits ..............................
$
22,984
$
18,413
$
(35,980
)
$
(3,844
)
$
1,573
Cost of closing redundant facilities ........
—
7,047
(1,398
)
1,653
7,302
Omniture Plan:
Termination benefits ..............................
6,712
—
(5,674
)
(552
)
486
Cost of closing redundant facilities ........
5,323
—
(2,481
)
(122
)
2,720
Contract termination ...............................
242
—
(165
)
102
179
Fiscal 2008 Plan:
Termination benefits ..............................
1,057
—
(435
)
(322
)
300
Cost of closing redundant facilities ........
3,382
—
(924
)
(309
)
2,149
Macromedia Plan:
Cost of closing redundant facilities ........
5,006
—
(2,834
)
(514
)
1,658
Other ......................................................
8
—
(2
) —
6
Total restructuring plans ............................
$
44,714
$
25,460
$
(49,893
)
$
(3,908
)
$
16,373
Accrued restructuring charges of approximately $16.4 million as of December 3, 2010 includes $8.1 million recorded in
accrued restructuring, current and $8.3 million related to long-term facilities obligations recorded in accrued restructuring,
non-current on our Consolidated Balance Sheets. We expect to pay accrued termination benefits through the first quarter of
fiscal 2011 and facilities-related liabilities under contract through fiscal 2021 of which over 70% will be paid through 2013.
Included in the other adjustments column are $(2.2) million related to changes in previous estimates, $(0.9) million
related to foreign currency translation adjustments and $(0.8) million in adjustments to goodwill associated with our
acquisitions in prior years.
NOTE 12. BENEFIT PLANS
Retirement Savings Plan
In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which
is a retirement savings plan covering substantially all of our U.S. employees, now referred to as the Adobe 401(k) Retirement
Savings Plan. Under the plan, eligible employees may contribute up to 65% of their pretax or after-tax salary, subject to the
Internal Revenue Service annual contribution limits. In fiscal 2010, we matched 50% of the first 6% of the employee’ s
eligible compensation. We contributed $17.9 million, $15.1 million and $16.6 million in fiscal 2010, 2009 and 2008,
respectively. We can terminate matching contributions at our discretion.
Profit Sharing Plan
Our profit sharing plan was discontinued effective fiscal 2010. The profit sharing plan provided for profit sharing
payments to all eligible employees following each quarter in which we achieve at least 75% of our budgeted earnings for the
quarter for fiscal 2009 and 80% of our budgeted earnings for the quarter for fiscal year 2008. The plan, as well as the annual
operating budget on which the plan was based, was approved by our Board of Directors. We contributed $13.3 million and
$73.8 million to the plan in fiscal 2009 and 2008, respectively.
Deferred Compensation Plan
On September 21, 2006, the Board of Directors approved the Adobe Systems Incorporated Deferred Compensation Plan,
effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded, non-
qualified, deferred compensation arrangement under which certain executives and members of the Board of Directors are able
to defer a portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100%
of other specified compensation, including commissions, bonuses, performance-based and time-based restricted stock units,
and directors’ fees. Participants are able to elect the payment of benefits to begin on a specified date at least three years after
the end of the plan year in which the election is made in the form of a lump sum or annual installments over five, ten or