Adobe 2012 Annual Report Download - page 72

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As of November 30, 2012, we have accrued total restructuring charges of approximately $21.6 million of which
approximately $2.3 million relates to ongoing termination benefits and contract terminations that are expected to be paid during
fiscal 2013. The remaining accrued restructuring charges of $19.3 million relate to the cost of closing redundant facilities and are
expected to be paid under contract through fiscal 2021, approximately 69% of which will be paid through 2015. During fiscal
2012, we made payments related to the above restructuring plans totaling approximately $63.1 million which consisted of
approximately $50.5 million and $12.6 million in payments related to termination benefits and contract terminations and the
closing of redundant facilities, respectively.
As of December 2, 2011, we accrued total restructuring charges of approximately $88.4 million of which approximately
$74.4 million related to ongoing termination benefits and contract terminations which were paid or adjusted during fiscal 2012
with the remaining $14.0 million related to the cost of closing redundant facilities. During fiscal 2011, we made payments related
to the above restructuring plans totaling approximately $13.1 million which consisted of approximately $6.8 million and $6.3
million in payments related to termination benefits and contract terminations and the closing of redundant facilities, respectively.
We believe that our existing cash and cash equivalents, short-term investments and cash generated from operations will be
sufficient to meet the cash outlays for the restructuring actions described above.
See Note 10 of our Notes to Consolidated Financial Statements for additional information regarding our restructuring
plans.
Other Liquidity and Capital Resources Considerations
Our existing cash, cash equivalents and investment balances may fluctuate during fiscal 2013 due to changes in our planned
cash outlay, including changes in incremental costs such as direct and integration costs related to our business acquisitions. Our
cash and investments totaled $3.5 billion as of November 30, 2012. Of this amount, approximately 83% was held by our foreign
subsidiaries and subject to material repatriation tax effects. Our intent is to permanently reinvest a significant portion of our
earnings from foreign operations, and current plans do not anticipate that we will need funds generated from foreign operations
to fund our domestic operations. In the event funds from foreign operations are needed to fund operations in the United States and
if U.S. tax has not already been previously provided, we would provide for and pay additional U.S. taxes in connection with
repatriating these funds.
Cash from operations could also be affected by various risks and uncertainties, including, but not limited to the risks detailed
in Part I, Item 1A titled “Risk Factors”. However, based on our current business plan and revenue prospects, we believe that our
existing balances, our anticipated cash flows from operations and our available credit facility will be sufficient to meet our working
capital and operating resource expenditure requirements for the next twelve months.
As of November 30, 2012, the amount outstanding under our senior notes was $1.5 billion. On March 2, 2012, we entered
into a five-year $1.0 billion senior unsecured revolving credit agreement (the “Credit Agreement”), providing for loans to us and
certain of our subsidiaries. As of November 30, 2012, there were no outstanding borrowings under this Credit Agreement and the
entire $1.0 billion credit line remains available for borrowing. In connection with entering into the Credit Agreement, we terminated
and paid off all obligations under our previous credit agreement dated as of February 16, 2007.
We use professional investment management firms to manage a large portion of our invested cash. External investment
firms managed, on average, 74% of our consolidated invested balances during fiscal 2012. The fixed income portfolio is primarily
invested in corporate bonds and commercial paper, foreign government securities, money market mutual funds and repurchase
agreements, municipal securities, U.S. agency securities and U.S. Treasury securities.
Stock Repurchase Program
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. During the second quarter of fiscal 2012, we exhausted our $1.6 billion time-constrained dollar-based authority granted by
our Board of Directors in fiscal 2010. In April 2012, the Board of Directors approved a new stock repurchase program granting
authority to repurchase up to $2.0 billion in common stock through the end of fiscal 2015. The new stock repurchase program
approved by our Board of Directors is similar to our previous $1.6 billion stock repurchase program.
During fiscal 2012, 2011 and 2010, we entered into several structured stock repurchase agreements with large financial
institutions, whereupon we provided them with prepayments totaling $405.0 million, $695.0 million and $850.0 million,
respectively. Of the $405.0 million of prepayments during fiscal 2012, $100.0 million was under the new $2.0 billion stock
repurchase program and the remaining $305.0 million was under our previous $1.6 billion authority. Of the $850.0 million of
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