Adobe 2002 Annual Report Download - page 122

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The reductions came predominantly from sales and marketing and in our North American operations, and as of
November 30, 2001, the majority of these terminations were completed. The restructuring charge in the fourth
quarter of fiscal 2001 was $12.1 million, all of which related to severance and related charges associated with the
reduction in force. During the fourth quarter of fiscal 2002, we paid our remaining obligations under our 2001
restructuring program. We also revised our estimate of the total costs associated with the restructuring program,
resulting in an adjustment of approximately $0.6 million. The adjustment primarily reflected lower than estimated
severance and related charges. As of November 29, 2002, there was no restructuring liability remaining for our
fiscal year 2001 restructuring program.
The following table depicts the activity for the fiscal year 2001 restructuring program through
November 29, 2002:
Accrued
Balance at
November 30,
2001
Cash
Payments Adjustments
Accrued
Balance at
November 29,
2002
Severance and related charges ................... $ 9,573 $ (9,022 ) $ (551) $
—
Note 9. Income Taxes
Income before income taxes includes net income from foreign operations of approximately $163.0 million,
$90.0 million, and $39.0 million for the years ended November 29, 2002, November 30, 2001, and
December 1, 2000, respectively.
The provision for income taxes consisted of the following:
Years Ended
November 29,
2002
November 30,
2001
December 1,
2000
Current:
United States federal ................................................................... $ 63,54
7
$ 52,355 $ 13,096
Foreign ........................................................................................ 8,344 16,087 11,452
State and local ............................................................................. 5,055 4,753 5,063
Total current ................................................................................... 76,946 73,195 29,611
Deferred:
United States federal ................................................................... (4,984) (14,494) (1,569)
Foreign ........................................................................................ 259 (767) 3,568
State and local ............................................................................. (761) (2,339) (601)
Total deferred ................................................................................. (5,486) (17,600) 1,398
Charge in lieu of taxes attributable to employee stock plans.......... 21,830 45,692 124,922
$ 93,29
0
$ 101,287 $ 155,931
Total income tax expense differs from the expected tax expense (computed by multiplying the United States
federal statutory rate of 35% for fiscal year 2002, 2001, and 2000 by income before income taxes) as a result of
the following:
Years Ended
November 29,
2002
November 30,
2001
December 1,
2000
Computed “expected” tax expense ................................................ $ 99,641 $ 107,42
6
$155,30
9
State tax expense, net of federal benefit ........................................ 6,477 6,983 12,403
Nondeductible goodwill ................................................................ 7,437 3,178 958
Tax-exempt income ....................................................................... (3,915) (4,496) (3,868)
Tax credits ..................................................................................... (6,000) (8,000) (8,000)
Differences between statutory rate and foreign effective tax rate.. (9,487) (2,653) (571)
Other, net ....................................................................................... (863) (1,151) (300)
$ 93,29
0
$101,28
7
$155,931