Adobe 2008 Annual Report Download - page 92

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92
incurred were $19.5 million and $19.0 million, respectively. The world wide consolidation of facilities was completed in
fiscal 2007.
The following table sets forth a summary of the Adobe restructuring activity for the fiscal year ended December 1, 2006:
Initial
Restructuring
Charges
Cash
Payments
Adjustments
December 1,
2006
Termination benefits ...........
$
18,879
$
(18,597
)
$
(103
)
$
179
Cost of closing redundant
facilities ...................
—
(479
)
946
467
Cost of contract termination .....
105
(11
)
(94
)
—
Total ......................
$
18,984
$
(19,087
)
$
749
$
646
Accrued restructuring charges as of December 1, 2006 included $0.3 million recorded in accrued restructuring, current
and $0.3 million, related to long-term facilities obligations recorded in accrued restructuring, non-current in the
accompanying consolidated balance sheets.
Note 10. Benefit Plans
Pretax Savings Plan
In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which
is a pretax savings plan covering substantially all of our United States employees. Under the plan, eligible employees may
contribute up to 65% of their pretax salary, subject to the Internal Revenue Service annual contribution limits. In fiscal 2008,
we matched 50% of the first 6% of the employee’ s contribution. We contributed $16.6 million, $14.5 million and $11.2
million in fiscal 2008, 2007 and 2006, respectively. We can terminate matching contributions at our discretion.
Profit Sharing Plan
We have a profit sharing plan that provides for profit sharing payments to all eligible employees following each quarter
in which we achieve at least 80% of our budgeted earnings for the quarter. The plan, as well as the annual operating budget
on which the plan is based, is approved by our Board of Directors. We contributed $73.8 million, $67.6 million and $51.9
million to the plan in fiscal 2008, 2007 and 2006, respectively.
Deferred Compensation Plan
On September 21, 2006, the Board of Directors approved the Adobe Systems Incorporated Deferred Compensation Plan,
effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded, non-
qualified, deferred compensation arrangement under which certain executives and members of the Board of Directors are able
to defer a portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100%
of other specified compensation, including commissions, bonuses, performance-based and time-based restricted stock units,
and directors’ fees. Participants are able to elect the payment of benefits to begin on a specified date at least three years after
the end of the plan year in which the election is made in the form of a lump sum or annual installments over five, ten or
fifteen years. Upon termination of a participant’ s employment with Adobe, such participant will receive a distribution in the
form of a lump sum payment. All distributions will be made in cash, except for deferred performance-based and time-based
restricted stock units which will be settled in stock. As of November 28, 2008 and November 30, 2007, the invested amounts
under the Deferred Compensation Plan total $7.6 million and $3.1 million, respectively and were recorded as long-term other
assets on our balance sheet. As of November 28, 2008 and November 30, 2007, we recorded $7.6 million and $3.1 million,
respectively, as long-term liabilities to recognize undistributed deferred compensation due to employees.