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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
117
The following table sets forth the taxes related to each component of OCI for fiscal 2010, 2009 and 2008 (in
thousands):
2010
2009
2008
Available-for-sale securities ...........................................................
495
931
(988
)
Foreign currency translation adjustments .......................................
275
1,411
(4,860
)
Taxes related to derivative instruments were zero for all fiscal years.
The following table sets forth the components of accumulated other comprehensive income, net of related taxes, for
fiscal 2010 and 2009 (in thousands):
2010
2009
Net unrealized gains on available-for-sale securities:
Unrealized gains on available-for-sale securities ..............................................
$
12,138
$
13,818
Unrealized losses on available-for-sale securities .............................................
(2,493
)
(2
)
Total net unrealized gains on available-for-sale securities ............................
9,645
13,816
Net unrealized (losses) gains on derivative instruments .......................................
151
(5
)
Cumulative foreign currency translation adjustments...........................................
7,632
10,635
Total accumulated other comprehensive income, net of taxes ..............................
$
17,428
$
24,446
The following table sets forth the components of foreign currency translation adjustments for fiscal 2010, 2009 and
2008 (in thousands):
2010
2009
2008
Beginning balance ............................................................................
10,640
$
(431
)
$
10,471
Foreign currency translation adjustments .........................................
(4,144
)
17,343
(19,461
)
Income tax effect relating to translation adjustments for
undistributed foreign earnings ......................................................
1,136
(6,272
)
8,559
Ending balance .................................................................................
7,632
$
10,640
$
(431
)
Stock Repurchase Program I
To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from
stock issuances, we repurchase shares in the open market and also enter into structured repurchases with third-parties.
Authorization to repurchase shares to cover on-going dilution was not subject to expiration. However, this repurchase
program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow
requirements as determined by our Board of Directors from time to time.
During the third quarter of fiscal 2010, our Board of Directors approved an amendment to our stock repurchase program
authorized in April 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority. As part of
this amendment, the Board of Directors granted authority to repurchase up to $1.6 billion in common stock through the end
of fiscal 2012. This amended program did not affect the $250.0 million structured stock repurchase agreement entered into
during March 2010. As of December 3, 2010, no prepayments remain under that agreement.
During fiscal 2010, 2009 and 2008 we entered into several structured repurchase agreements with large financial
institutions, whereupon we provided the financial institutions with prepayments of $850.0 million, $350.0 million and $525.0
million, respectively. Of the $850.0 million of prepayments during fiscal 2010, $250.0 million was under the stock
repurchase program prior to the program amendment and the remaining $600.0 million was under the amended $1.6 billion
time-constrained dollar-based authority. We entered into these agreements in order to take advantage of repurchasing shares
at a guaranteed discount to the Volume Weighted Average Price (“VWAP”) of our common stock over a specified period of
time. We only enter into such transactions when the discount that we receive is higher than the foregone return on our cash
prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under
the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to
us.