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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
103
The following table sets forth a summary of preliminary restructuring activities during fiscal 2009 (in thousands):
November 28,
2008
Costs
Recorded
Cash
Payments
Other
Adjustments
November 27,
2009
Termination benefits ....................
$
—
$
6,704
$
—
$
8
$
6,712
Cost of closing redundant
facilities ................................
.....
—
3,914
—
19
3,933
Contract termination ....................
—
242
—
—
242
Total .............................................
$
—
$
10,860
$
—
$
27
$
10,887
Accrued restructuring charges of approximately $10.9 million at November 27, 2009 include $8.6 million recorded in
accrued restructuring, current and $2.3 million related to long-term facilities obligations recorded in accrued restructuring,
non-current in our Consolidated Balance Sheets. We expect to pay accrued termination benefits during fiscal 2010. We
expect to pay facilities-related liabilities through fiscal 2013. Included in the other adjustments column are foreign currency
translation adjustments.
Additionally, approximately $1.5 million of restructuring costs related to facilities were included in the liabilities
assumed by us upon acquisition of Omniture on October 23, 2009 for which subsequent payments of $0.1 million were made
during the fourth quarter of fiscal 2009. Restructuring costs related to these facilities were approximately $1.4 million at
November 27, 2009 with $1.2 million recorded in accrued restructuring, current and $0.2 million related to long-term
facilities obligations recorded in accrued restructuring, non-current in our Consolidated Balance Sheets. We expect to pay
these facilities-related liabilities through fiscal 2013.
2008 Restructuring Plan Charges
In the fourth quarter of fiscal 2008, we initiated a restructuring program, consisting of reductions in workforce of
approximately 560 full-time positions globally and the consolidation of facilities, in order to reduce our operating costs and
focus our resources on key strategic priorities. In connection with this restructuring program, we recorded restructuring
charges in the fourth quarter of fiscal 2008 totaling $29.2 million related to ongoing termination benefits for the elimination
of approximately 460 of the 560 full-time positions globally. As of November 28, 2008, $0.4 million was paid.
During fiscal 2009, we continued to implement restructuring activities under this program. We vacated approximately
89,000 square feet of research and development and sales facilities in the U.S., the United Kingdom and Canada. We accrued
$8.5 million for the fair value of our future contractual obligations under these operating leases using our credit-adjusted risk-
free interest rate, estimated at approximately 6% as of the date we ceased to use the leased properties. This amount is net of
the fair value of future estimated sublease income of approximately $4.4 million. We also recorded additional charges of $6.7
million for termination benefits for the elimination of substantially all of the remaining 100 full-time positions expected to be
terminated.
The following table sets forth a summary of Adobe restructuring activities during fiscal 2009 (in thousands):
November 28,
2008
Costs
Incurred
Cash
Payments
Other
Adjustments
November 27,
2009
Termination benefits ..................
$
28,759
$
6,722
$
(34,191
)
$
(233
)
$
1,057
Cost of closing redundant
facilities ...................................
—
8,514
(5,380
)
248
3,382
Total ...........................................
$
28,759
$
15,236
$
(39,571
)
$
15
$
4,439
Accrued restructuring charges of approximately $4.4 million at November 27, 2009 include $1.9 million recorded in
accrued restructuring, current and $2.5 million related to long-term facilities obligations recorded in accrued restructuring,
non-current in our Consolidated Balance Sheets. Total costs incurred to date and expected to be incurred for closing
redundant facilities are $44.5 million and $44.7 million, respectively. We have substantially paid all of the accrued
termination benefits during fiscal 2009. We expect to pay facilities-related liabilities through fiscal 2013.
Included in the other adjustments column are foreign currency translation adjustments of $0.6 million and small
changes to previous estimates.