Adobe 2004 Annual Report Download - page 53

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53
Summary of Stock Repurchases for fiscal 2004, 2003 and 2002
(in thousands, except average amounts)
Board Approval Repurchases
Date Under the Plan 2004 Average 2003 Average 2002 Average
December 1997 From employees(1) 5 $ 51.30 18 $ 34.99 83 $ 35.55
Open market 6,207 41.63 1,185 32.96 — —
Option exercises(2) 1,584 28.47 8,517 29.60
Structured
repurchases(3) 4,766 46.65 — — — —
March 2001 Open market — — — — 1,899 18.40
Option exercises(2) — — — — 115 28.58
Total shares 10,978 $ 43.82 2,787 $ 30.42 10,614 $ 27.63
Total cost $ 481,075 $ 84,777 $ 293,241
(1) The repurchases from employees represent shares canceled when surrendered in lieu of cash payments for the option exercise price or
withholding taxes due.
(2) These are exercises of outstanding put and call options.
(3) These are stock repurchase agreements executed with large financial institutions. See “Stock Repurchase Program I – On-going Dilution
Coverage” above.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Our principal commitments as of December 3, 2004, consist of obligations under operating leases, royalty
agreements and various service agreements. We expect to fulfill all of the following commitments from our working
capital.
Lease Commitments
The two lease agreements discussed in Note 15 of our Notes to Consolidated Financial Statements are subject to
standard financial covenants. As of December 3, 2004 we were in compliance with all of our financial covenants.
We expect to remain within compliance in the next 12 months. We are comfortable with these limitations and
believe they will not impact our credit or cash in the coming year or restrict our ability to execute our business plan.
See Note 15 of our Notes to Consolidated Financial Statements for further information regarding our lease
commitments.
The following table summarizes our contractual commitments as of December 3, 2004:
Less than Ove
r
Total 1 year 1 – 3 years 3-5
y
ears 5
y
ears
Non-cancelable operating leases,
net of sublease income .................
$ 123.1
$ 28.5
$ 40.2
$ 30.0
$ 24.4
Indemnifications
In the normal course of business, we provide indemnifications of varying scope to customers against claims of
intellectual property infringement made by third parties arising from the use of our products. Historically, costs
related to these indemnification provisions have not been significant and we are unable to estimate the maximum
potential impact of these indemnification provisions on our future results of operations.