Adobe 2006 Annual Report Download - page 40

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40
investigations and proceedings in the ordinary course of business, including claims of alleged infringement of
third-party patents and other intellectual property rights, commercial, employment and other matters. In
accordance with U.S. generally accepted accounting principles, Adobe makes a provision for a liability when it is
both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These
provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings,
advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently
unpredictable. However, we believe that we have valid defenses with respect to the legal matters pending against
Adobe. It is possible, nevertheless, that our consolidated financial position, cash flows or results of operations
could be affected by the resolution of one or more of such contingencies.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the quarter ended December 1, 2006.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
(a) Our common stock is traded on the NASDAQ Global Select Market under the symbol “ADBE.” On January
19, 2007, there were 1,827 holders of record of our common stock. Because many of such shares are held by
brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of
stockholders represented by these record holders. The following table sets forth the high and low sales price per
share of our common stock and the cash dividends paid per share, for the periods indicated. All per share amounts
in the following table have been adjusted to reflect the two-for-one stock split in the form of a stock dividend
effected May 23, 2005.
Price Range
High Low
Cash Dividend
Per Share
Fiscal 2006:
First Quarter ....................... $ 40.51 $ 34.52 —
Second Quarter................... 39.45 28.35 —
Third Quarter...................... 34.07 26.47 —
Fourth Quarter.................... 42.55 31.50 —
Fiscal Year ......................... 42.55 26.47 —
Fiscal 2005:
First Quarter ....................... $ 32.56 $ 27.40 $ 0.00625
Second Quarter................... 34.48 26.57 —
Third Quarter...................... 32.92 25.80 —
Fourth Quarter.................... 35.68 26.67 —
Fiscal Year ......................... 35.68 25.80 0.00625
Under the terms of our lease agreements for our San Jose headquarters, we are not prohibited from paying
cash dividends unless an event of default occurs. We discontinued our quarterly cash dividend after the payment
of the dividend for the first quarter of fiscal 2005. We intend to use the cash previously used to pay the quarterly
dividend for our ongoing stock repurchase programs.
For information on our equity compensation plans, refer to Note 11 in our Notes to Consolidated Financial
Statements.