Adobe 2008 Annual Report Download - page 86

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86
Note 7. Accrued Expenses
Accrued expenses consisted of the following as of November 28, 2008 and November 30, 2007:
2008
2007
Accrued compensation and benefits ..........................
$
177,760
$
205,018
Taxes payable ............................................
21,760
24,579
Sales and marketing allowances .............................
28,127
21,231
Other ...................................................
172,322
157,751
Total accrued expenses ..................................
$
399,969
$
408,579
Other primarily includes general corporate accruals for corporate marketing programs, local and regional expenses,
charitable contributions and technical support. Other is also comprised of deferred rent related to office locations with rent
escalations, accrued royalties, foreign currency derivatives and accrued interest on the credit facility.
Note 8. Income Taxes
Income before income taxes includes income from foreign operations of $740.3 million, $453.2 million and $293.7
million for fiscal 2008, 2007 and 2006, respectively.
The provision for income taxes consisted of the following for fiscal 2008, 2007 and 2006:
2008
2007
2006
Current:
United States federal .........................................
$
24,179
$
36,614
$
12,419
Foreign ....................................................
27,680
55,536
34,762
State and local ...............................................
6,972
4,100
3,623
Total current ..................................................
58,831
96,250
50,804
Deferred:
United States federal .........................................
41,678
50,640
(19,843
)
Foreign ....................................................
(9,693
)
(13,480
)
2,198
State and local ...............................................
25,518
23,007
(5,383
)
Total deferred .................................................
57,503
60,167
(23,028
)
Tax expense attributable to employee stock plans ...................
90,360
66,966
146,142
$
206,694
$
223,383
$
173,918
Certain employee stock plan benefits in fiscal 2008, 2007 and 2006 associated with the acquisition of Macromedia
reduced goodwill. See Note 5 for further information regarding our goodwill.