Adobe 2011 Annual Report Download - page 102

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During the fourth quarter of fiscal 2011, we vacated approximately 47,000 square feet of sales and/or research and
development facilities in New Zealand and the U.S. We accrued $3.3 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 1% as of the dates we
ceased to use the leased properties. This amount is net of the fair value of future estimated sublease income of approximately $0.3
million. Total costs incurred to date and expected to be incurred for closing redundant facilities are $3.3 million and $17.1 million,
respectively.
During the fourth quarter of fiscal 2011, we also incurred charges of $12.7 million related to the write-off of certain assets
that were no longer useful to the company based on changes in our business.
Fiscal 2009 Restructuring Plan
In the fourth quarter of fiscal 2009, in order to appropriately align our costs in connection with our fiscal 2010 operating
plan, we initiated a restructuring plan consisting of reductions in workforce and the consolidation of facilities. The restructuring
activities related to this program affected only those employees and facilities that were associated with Adobe prior to the acquisition
of Omniture on October 23, 2009 and are independent of the Omniture restructuring plan described below.
During fiscal 2010, we continued to implement restructuring activities under this plan. We vacated approximately 50,000
square feet of sales and or research and development facilities in Australia, Canada, Denmark and the U.S. We accrued $7.0 million
for the fair value of our future contractual obligations under these operating leases using our estimated credit-adjusted risk-free
interest rates ranging from approximately 3% to 7% as of the dates we ceased to use the leased properties. This amount is net of
the fair value of future estimated sublease income of approximately $7.1 million. We also recorded charges of $18.4 million in
termination benefits for the elimination of substantially all of the remaining full-time positions expected to be terminated worldwide.
We also recorded net adjustments of approximately $1.7 million to reflect net decreases in previously recorded estimates for
termination benefits and facilities-related liabilities.
During fiscal 2011, we continued to implement restructuring activities under this plan. We vacated approximately 38,000
square feet of sales facilities in Sweden and the United Kingdom and accrued $3.7 million for the fair value of our future contractual
obligations under those operating leases. Total costs incurred for termination benefits through fiscal 2011 were $40.0 million.
Total costs incurred to date and expected to be incurred for closing redundant facilities are $10.7 million and $12.7 million,
respectively.
Omniture Restructuring Plan
We completed our acquisition of Omniture on October 23, 2009. In the fourth quarter of fiscal 2009, we initiated a plan to
restructure the pre-merger operations of Omniture to eliminate certain duplicative activities, focus our resources on future growth
opportunities and reduce our cost structure. In connection with this restructuring plan, we accrued a total of approximately $12.4
million in costs related to termination benefits, the closure of duplicative facilities and cancellation of certain contracts associated
with the wind-down of subsidiaries and other service contracts held by Omniture through fiscal 2011. Substantially all of these
costs were recorded as a part of the purchase price allocation.
Fiscal 2008 Restructuring Plan
In the fourth quarter of fiscal 2008, we initiated a restructuring program consisting of reductions in workforce and the
consolidation of facilities, in order to reduce our operating costs and focus our resources on key strategic priorities. In connection
with the restructuring plan, we recognized costs related to termination benefits for employee positions that were eliminated and
for the closure of duplicative facilities. Total costs incurred to date for termination benefits were $35.2 million and was completed
during the first quarter of fiscal 2011. Total costs incurred to date and expected to be incurred for closing redundant facilities are
$9.1 million and $9.2 million, respectively.
Macromedia Restructuring Plan
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
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)