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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
104
Macromedia Merger Restructuring Charges
We completed our acquisition of Macromedia on December 3, 2005. In connection with this acquisition, we initiated
plans to restructure both the pre-merger operations of Adobe and Macromedia to eliminate certain duplicative activities,
focus our resources on future growth opportunities and reduce our cost structure. In connection with the worldwide
restructuring plan, we recognized costs related to termination benefits for employee positions that were eliminated and for the
closure of duplicative facilities. We also recognized costs related to the cancellation of certain contracts associated with the
wind-down of subsidiaries and other service contracts held by Macromedia. Costs for termination benefits and contract
terminations were completed during fiscal 2007. Total costs incurred were $27.0 million and $3.2 million, respectively.
The following table sets forth a summary of Macromedia restructuring activities during fiscal 2009 (in thousands):
November 28,
2008
Cash
Payments
Other
Adjustments
November 27,
2009
Cost of closing redundant facilities ............... $ 12,168 $ (6,675
) $ (487
) $ 5,006
Other ............................................................. 977 (889
) (80
) 8
Total .............................................................. $ 13,145 $ (7,564
) $ (567
) $ 5,014
Accrued restructuring charges of approximately $5.0 million at November 27, 2009 related to facilities obligations
include $3.1 million recorded in accrued restructuring, current and $1.9 million recorded in accrued restructuring, non-current
in our Consolidated Balance Sheets. We expect to pay these liabilities through fiscal 2012.
Included in the other adjustments column is a change to previous estimates of $0.6 million offset in part by small
foreign currency translation adjustments. Included in the change in previous estimates of $0.6 million is an adjustment of
$1.7 million associated with an accrual for a leased facility that was included in the purchase price of Macromedia as an
assumed liability. During the third quarter of fiscal 2009, adjustments were made to the liability for this lease facility that
were recorded as a reduction to Macromedia goodwill. Accordingly, during fiscal 2009, $1.1 million represents adjustments
recorded as an increase to restructuring charges.
The following table sets forth a summary of Macromedia restructuring activities during fiscal 2008 (in thousands):
November 30,
2007
Cash
Payments
Other
Adjustments
November 28,
2008
Cost of closing redundant facilities ............. $ 16,283
$ (7,187
)
$ 3,072
$ 12,168
Other ........................................................... 1,435 (147 ) (311 ) 977
Total ............................................................. $ 17,718 $ (7,334 ) $ 2,761 $ 13,145
Accrued restructuring charges of $13.1 million at November 28, 2008 includes $6.9 million recorded in accrued
restructuring, current and $6.2 million, related to long-term facilities obligations, recorded in accrued restructuring, non-
current in our Consolidated Balance Sheets. Included in the other adjustments column is a change to previous estimates,
recorded as a current period expense, associated with closing redundant facilities as a result of the Macromedia acquisition as
well as the net effect of foreign currency changes.
NOTE 12. BENEFIT PLANS
Retirement Savings Plan
In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which
is a retirement savings plan covering substantially all of our U.S. employees, now referred to as the Adobe 401(k) Retirement
Savings Plan. Under the plan, eligible employees may contribute up to 65% of their pretax or after-tax salary, subject to the
Internal Revenue Service annual contribution limits. In fiscal 2009, we matched 50% of the first 6% of the employee’s
eligible compensation. We contributed $15.1 million, $16.6 million and $14.5 million in fiscal 2009, 2008 and 2007,
respectively. We can terminate matching contributions at our discretion.