Adobe 2014 Annual Report Download - page 88

ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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Summary of Restructuring Plans
The following table sets forth a summary of restructuring activities related to all of our restructuring plans described above
during fiscal 2014 (in thousands):
November 29,
2013 Costs Incurred Cash Payments Other Adjustments November 28, 2014
Fiscal 2014 Restructuring Plan:
Termination benefits............................ $ — $ 18,823 $ (4,382) $ 20 $ 14,461
Cost of closing redundant facilities..... — 557 (57)(28) 472
Other Restructuring Plans:
Termination benefits............................ 2,233 — (1,357)(339) 537
Cost of closing redundant facilities..... 11,655 528 (5,215)(124) 6,844
Total restructuring plans ........................ $ 13,888 $ 19,908 $ (11,011) $ (471) $ 22,314
Accrued restructuring charges of $22.3 million as of November 28, 2014 include $17.1 million recorded in accrued
restructuring, current and $5.2 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 fiscal 2015 and facilities-related liabilities
under contract through fiscal 2021 of which approximately 45% will be paid through 2016.
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 2014, we matched 50% of the first 6% of the employee’s eligible compensation. We
contributed $24.8 million, $22.3 million and $19.4 million in fiscal 2014, 2013 and 2012, respectively. Adobe is under no obligation
to continue matching future employee contributions and at the Company’s discretion may change its practices at any time.
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 28, 2014 and November 29, 2013, the invested amounts under the Deferred Compensation Plan
total $25.7 million and $19.8 million, respectively and were recorded as other assets on our Consolidated Balance Sheets. As of
November 28, 2014 and November 29, 2013, $31.0 million and $22.0 million, respectively, was recorded as long-term liabilities
to recognize undistributed deferred compensation due to employees.