Adobe 2002 Annual Report Download - page 121

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90
Note 7. Accrued Expenses
Accrued expenses consisted of the following:
November 29,
2002
November 30,
2001
Accrued compensation and benefits ........................................................................... $ 54,11
7
$ 44,555
Sales and marketing allowances ................................................................................. 7,371 4,956
Accrued restructuring ................................................................................................. 10,975 9,573
Other........................................................................................................................... 62,565 71,297
$135,02
8
$130,381
Note 8. Restructuring and Other Charges
Fiscal 2002 restructuring program
In the fourth quarter of fiscal 2002, we incurred a restructuring charge of $11.1 million, which included
severance and related charges and charges related to the closure of a facility. The related restructuring program
eliminated 239 engineering, sales and marketing, and general and administrative positions worldwide in order to
realign our resources for our future business plans. These plans include adding resources to support our ePaper
enterprise business in fiscal 2003.
The restructuring program is expected to be completed in fiscal 2003. Of the $11.1 million in charges, $4.7
million remains accrued at November 29, 2002.
The following table depicts the activity for the fourth quarter 2002 restructuring program through
November 29, 2002:
Accrued
Balance at
November 30,
2001 Total Charges
Cash
Payments
Accrued
Balance at
November 29,
2002
Severance and related charges ...................... $ — $ 10,119 $ (6,349 ) $ 3,771
Facility.......................................................... — 975 — 975
$ — $ 11,094 $ (6,349 ) $ 4,746
In the second quarter of fiscal 2002, we implemented a restructuring program to eliminate 39 redundant sales
and marketing positions held by Adobe employees worldwide as a result of the acquisition of Accelio. The
restructuring included severance and related charges associated with the reduction in force and the cost of vacating a
leased facility. Total restructuring and other charges were $1.6 million and the majority of these payments were paid
in the second quarter of fiscal 2002. Of the $1.6 million in charges, $.05 million remains accrued at
November 29, 2002. The remaining payments will be paid in the first quarter of fiscal 2003.
The following table depicts the activity for the second quarter fiscal 2002 restructuring program through
November 29, 2002:
Accrued
Balance at
November 30,
2001 Total Charges
Cash
Payments
Accrued
Balance at
November 29,
2002
Severance and related charges ...................... $ — $ 1,600 $ (1,553 ) $ 47
Facility.......................................................... — 5 — 5
$ — $ 1,605 $ (1,553 ) $ 52
Fiscal 2001 restructuring program
In the fourth quarter of fiscal 2001, we implemented a restructuring plan to realign our workforce to our future
strategic goals and to align our resources with our lower fiscal 2002 revenue targets due to adverse economic
conditions resulting in part from the events of September 11, 2001. This restructuring enabled us to increase our
investment in digital imaging, digital video, and ePaper-based businesses in fiscal 2002. As part of the restructuring
program, we implemented a reduction in force of 247 positions, affecting organizations throughout the company.