Adobe 2012 Annual Report Download - page 104

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(*) Included in Other Adjustments are foreign currency translation adjustments and Goodwill adjustments of $0.4 million
each.
Accrued restructuring charges of approximately $21.6 million at November 30, 2012 includes $9.3 million recorded in
accrued restructuring, current and $12.3 million related to long-term facilities obligations recorded in accrued restructuring, non-
current on our Consolidated Balance Sheets. We expect to pay accrued termination benefits through the second half of fiscal 2013
and facilities-related liabilities under contract through fiscal 2021.
NOTE 11. 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 2012, we matched 50% of the first 6% of the employee’s eligible compensation. We
contributed $19.4 million, $19.6 million and $17.9 million in fiscal 2012, 2011 and 2010, respectively. We can terminate matching
contributions at our discretion.
Deferred Compensation Plan
On September 21, 2006, the Board of Directors approved the Adobe Systems Incorporated Deferred Compensation Plan,
effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded, non-qualified,
deferred compensation arrangement under which certain executives and members of the Board of Directors are able to defer a
portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100% of other specified
compensation, including commissions, bonuses, performance-based and time-based restricted stock units, and directors’
fees. Participants are able to elect the payment of benefits to begin on a specified date at least three years after the end of the plan
year in which the election is made in the form of a lump sum or annual installments over five, ten or fifteen years. Upon termination
of a participant’s employment with Adobe, such participant will receive a distribution in the form of a lump sum payment. All
distributions will be made in cash, except for deferred performance-based and time-based restricted stock units which will be
settled in stock. As of November 30, 2012 and December 2, 2011, the invested amounts under the Deferred Compensation Plan
total $15.1 million and $12.8 million, respectively and were recorded as other assets on our Consolidated Balance Sheets. As of
November 30, 2012 and December 2, 2011, $16.4 million and $13.2 million, respectively, was recorded as long-term liabilities to
recognize undistributed deferred compensation due to employees.
NOTE 12. STOCK-BASED COMPENSATION
We have the following stock-based compensation plans and programs:
Restricted Stock Plans
We grant restricted stock units to all eligible employees under our 2003 Equity Incentive Plan, as amended (“2003 Plan”),
our 2005 Equity Incentive Assumption Plan (“2005 Assumption Plan”) and our Amended 1994 Performance and Restricted Stock
Plan (“Restricted Stock Plan”). Restricted stock units granted under these plans generally vest over four years, the majority of
which vest 25% annually, and certain grants have other vesting periods approved by our Board of Directors or an authorized
committee of the Board of Directors.
We grant performance awards to officers and key employees under our Restricted Stock Plan as well as our 2003 Plan.
Performance awards granted under these plans after fiscal year 2009 vest annually over three years. Performance awards granted
prior to fiscal year 2009 vest annually over four years.
As of November 30, 2012, we had reserved 136.9 million and 5.5 million shares of common stock for issuance under our
2003 Plan and 2005 Assumption Plan, respectively and had 36.6 million and 1.4 million shares available for grant under our 2003
Plan and 2005 Assumption Plan, respectively. As of November 30, 2012, we had reserved 16.0 million shares of our common
stock for issuance under the Restricted Stock Plan and approximately 12 thousand shares were available for grant.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)