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76
During fiscal 2008, we also repurchased 3.6 million shares at an average price of $36.41 in open market transactions.
For fiscal 2010, 2009 and 2008, the prepayments were classified as treasury stock on our Consolidated Balance Sheets at
the payment date, though only shares physically delivered to us by December 3, 2010, November 27, 2009 and November 28,
2008 were excluded from the computation of earnings per share. As of December 3, 2010, no prepayments remained under
the agreements. As of November 27, 2009, approximately $59.9 million of prepayments remained under the agreements.
Subsequent to December 3, 2010, as part of our $1.6 billion stock repurchase program, we entered into a structured
stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $125.0
million. This amount will be classified as treasury stock on our Consolidated Balance Sheets. Upon completion of the $125.0
million stock repurchase agreement, $875.0 million remains under our time-constrained dollar-based authority. See Note 14
and 21 of our Notes to Consolidated Financial Statements for further discussion of our stock repurchase programs.
See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities for share repurchases during the quarter ended December 3, 2010.
Stock Repurchase Program II
Under this stock repurchase program, we had authorization to repurchase an aggregate of 50.0 million shares of our
common stock. From the inception of the 50.0 million share authorization under this program, we provided prepayments of
$1.9 billion under structured share repurchase agreements to large financial institutions. During the third quarter of fiscal
2008, the remaining authorized number of shares were repurchased.
During fiscal 2008, we provided prepayments of $1.0 billion and repurchased 31.9 million shares under these structured
agreements at an average price of $37.15. During fiscal 2008, we also repurchased 0.5 million shares at an average price of
$39.79 in open market transactions.
Summary of Stock Repurchases for fiscal 2010, 2009 and 2008
(in thousands, except average amounts)
Board Approval
Repurchases
2010
2009
2008
Date
Under the Plan
Shares
Average
Shares
Average
Shares
Average
December 1997 ......
From employees(1)
1
35.66
1
24.00
5
$
34.89
Open market
—
—
—
—
3,554
$
36.41
Structured repurchases(2)
9,358
33.11
15,231
27.89
22,418
$
36.26
April 2007 ..............
Structured repurchases(2)
—
—
—
—
31,859
$
37.15
Open market
—
—
—
—
456
$
39.79
June 2010 ...............
Structured repurchases(2)
21,807
27.51
—
—
—
$
—
Total shares ............
31,166
29.19
15,232
27.89
58,292
$
36.79
Total cost ...............
909,900
424,851
2,144,400
_________________________________________
(1) The repurchases from employees represent shares cancelled when surrendered in lieu of cash payments for the option
exercise price or withholding taxes due.
(2) Stock repurchase agreements executed with large financial institutions. See “Stock Repurchase Program I” and “Stock
Repurchase Program II” above.
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
Our principal commitments as of December 3, 2010 consist of obligations under operating leases, capital leases, royalty
agreements and various service agreements. See Note 16 of our Notes to Consolidated Financial Statements for additional
information regarding our contractual commitments.