Adobe 2012 Annual Report Download - page 103

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that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire, or both.
Given the uncertainties described above, we can only determine a range of estimated potential decreases in underlying unrecognized
tax benefits ranging from $0 to approximately $5 million. These amounts could decrease income tax expense under current GAAP
related to income taxes.
NOTE 10. RESTRUCTURING
Fiscal 2011 Restructuring Plan
In the fourth quarter of fiscal 2011, we initiated a restructuring plan consisting of reductions in workforce and the
consolidation of facilities in order to better align our resources around our Digital Media and Digital Marketing strategies.
During fiscal 2012, we continued to implement restructuring activities under this plan. We vacated approximately 64,000
square feet of sales and/or research and development facilities in Canada, the Czech Republic, Germany, Ireland, Israel and the
United Kingdom. We accrued $11.3 million for the fair value of our future contractual obligations under those operating leases
as of the dates we ceased to use the leased properties using our estimated credit-adjusted risk-free interest rates ranging from
approximately 1% to 4%. This amount is net of the fair value of future estimated sublease income of approximately $3.3 million.
Total costs incurred for termination benefits through fiscal 2012 were $56.8 million which included favorable adjustments of $21.8
million arising from revisions to severance cost estimates that were made in connection with the fourth quarter fiscal 2011
restructuring plan. Total costs incurred to date and expected to be incurred for closing redundant facilities are $14.6 million as all
facilities under this plan have been exited as of November 30, 2012.
Other Restructuring Plans
Other restructuring plans include other Adobe plans and other plans associated with certain of our acquisitions that are
substantially complete. We continue to make cash outlays to settle obligations under these plans, however the current impact to
our consolidated financial statements is not significant. As of November 30, 2012, the total remaining balance under our other
restructuring plans was $1.0 million for termination benefits and $9.7 million for closing redundant facilities, of which
approximately $8.0 million relates to our Fiscal 2009 Restructuring Plan. Our other restructuring plans consist of the following:
• Fiscal 2009 Restructuring Plan—In the fourth quarter of fiscal 2009, in order to appropriately align our costs in
connection with our fiscal 2010 operating plan, we initiated a restructuring plan consisting of reductions in workforce
and the consolidation of facilities. The restructuring activities related to this program affected only those employees
and facilities that were associated with Adobe prior to the acquisition of Omniture on October 23, 2009.
• Omniture Restructuring Plan—We completed our acquisition of Omniture on October 23, 2009. In the fourth quarter
of fiscal 2009, we initiated a plan to restructure the pre-merger operations of Omniture to eliminate certain duplicative
activities, focus our resources on future growth opportunities and reduce our cost structure.
• Fiscal 2008 Restructuring Plan—In the fourth quarter of fiscal 2008, we initiated a restructuring program consisting
of reductions in workforce and the consolidation of facilities, in order to reduce our operating costs and focus our
resources on key strategic priorities.
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 2012 (in thousands):
December 2,
2011 Costs Incurred Cash Payments Other Adjustments* November 30, 2012
Fiscal 2011 Plan:
Termination benefits............................ $ 72,817 $ — $ (49,551) $ (22,018) $ 1,248
Cost of closing redundant facilities..... 2,995 11,097 (4,662) 193 9,623
Other Restructuring Plans:
Termination benefits............................ 1,548 810 (977)(390) 991
Cost of closing redundant facilities..... 11,019 5,536 (7,940) 1,073 9,688
Total restructuring plans ........................ $ 88,379 $ 17,443 $ (63,130) $ (21,142) $ 21,550
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)