Adobe 2014 Annual Report Download - page 54

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which consisted of $5.7 million and $5.3 million in payments related to termination benefits and contract terminations and the
closing of redundant facilities, respectively.
As of November 29, 2013, we accrued total restructuring charges of $13.9 million of which approximately $11.7 million
related to cost of closing redundant facilities. The remaining accrued restructuring charges of $2.2 million related to the cost of
termination benefits and contract terminations. During fiscal 2013, we made payments related to the above restructuring plans
totaling $10.3 million which consisted of $1.3 million and $9.0 million in payments related to termination benefits and contract
terminations and the closing of redundant facilities, respectively.
As of November 30, 2012, we accrued total restructuring charges of $21.6 million of which $2.3 million related to ongoing
termination benefits and contract terminations. The remaining accrued restructuring charges of $19.3 million related to the cost
of closing redundant facilities. During fiscal 2012, we made payments related to restructuring plans totaling $63.1 million which
consisted of $50.5 million and $12.6 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 2015 due to changes in our planned
cash outlay, including changes in incremental costs such as direct and integration costs related to our acquisitions. Our cash and
investments totaled $3.7 billion as of November 28, 2014. Of this amount, approximately 80% 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 cash, cash equivalents and investment 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.
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. On March 1, 2013, we exercised our option under the Credit
Agreement to extend the maturity date of the Credit Agreement by one year to March 2, 2018. As of November 28, 2014, there
were no outstanding borrowings under this Credit Agreement and the entire $1.0 billion credit line remains available for borrowing.
As of November 28, 2014, the amount outstanding under our senior notes was $1.5 billion, consisting of $600 million of
3.25% senior notes due February 1, 2015 (the “2015 Notes”) and $900 million of 4.75% senior notes due February 1, 2020 (the
“2020 Notes”). During the first quarter of fiscal 2014, we reclassified $599.8 million as current debt on our Consolidated Balance
Sheets, which represented the 2015 Notes, net of unamortized original issuance discount. We intend to refinance the current portion
of our debt on or before the due date using either newly issued debt or drawings from our existing revolving credit agreement.
In anticipation of this refinancing, we entered into an interest rate lock agreement with a large financial institution subsequent
to November 28, 2014, which fixed a benchmark U.S. Treasury rate for an aggregate notional amount of $600.0 million. This
derivative agreement hedges the impact on future interest payments attributable to changes in the benchmark interest rate and will
be terminated upon the debt issuance.
We use professional investment management firms to manage a large portion of our invested cash. External investment
firms managed, on average, 82% of our consolidated invested balances during fiscal 2014. The fixed income portfolio is primarily
invested in corporate bonds and commercial paper, foreign government securities, money market mutual funds, municipal
securities, U.S. agency securities and U.S. Treasury securities.