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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
118
The facility contains a financial covenant requiring us not to exceed a certain maximum leverage ratio. At our option,
borrowings under the facility accrue interest based on either the London interbank offered rate (“LIBOR”) for one, two, three
or six months, or longer periods with bank consent, plus a margin according to a pricing grid tied to this financial covenant,
or a base rate. The margin is set at rates between 0.20% and 0.475%. Commitment fees are payable on the facility at rates
between 0.05% and 0.15% per year based on the same pricing grid. The facility is available to provide loans to us and certain
of our subsidiaries for general corporate purposes. As of November 28, 2008, the amount outstanding under this credit
facility was $350.0 million. On September 22, 2009 we borrowed an additional $650.0 million under the credit facility. As of
November 27, 2009, the amount outstanding under this credit facility was $1.0 billion which is included in long-term
liabilities on our Consolidated Balance Sheets. The carrying value of the outstanding liability approximates fair value. As of
November 27, 2009, we were in compliance with all of the covenants.
NOTE 19. NON-OPERATING INCOME (EXPENSE)
Non-operating income (expense) for fiscal 2009, 2008 and 2007 included the following (in thousands):
2009
2008
2007
Interest and other income, net:
Interest income ............................................
$
34,978
$
57,588
$
92,794
Foreign exchange losses .....................................
(13,420
)
(17,494
)
(9,264
)
Realized gains on fixed income investment .....................
8,753
3,161
934
Realized losses on fixed income investment .....................
(1
)
(1,501
)
(3,510
)
Other ....................................................
1,070
2,093
1,770
Interest and other income, net ..............................
$
31,380
$
43,847
$
82,724
Interest expense ..............................................
$
(3,407
)
$
(10,019
)
$
(253
)
Investment gains (losses), net:
Realized investment gains ...................................
$
52
$
18,398
$
9,308
Unrealized investment gains(*) ................................
7,950
7,803
5,265
Realized investment losses ...................................
(9,019
)
(1,417
)
(2,236
)
Unrealized investment losses .................................
(15,949
)
(8,375
)
(5,203
)
Investment gains (losses), net ..............................
$
(16,966
)
$
16,409
$
7,134
Non-operating income (expense), net ............................
$
11,007
$
50,237
$
89,605
_________________________________________
(*) During fiscal 2009, we recorded $3.0 million in unrealized holding gains and losses associated with our deferred
compensation plan assets (classified as trading securities).
NOTE 20. INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS
For substantially all of fiscal 2009, we had the following reportable segments: Creative Solutions, Knowledge Worker,
Enterprise, Platform and Print and Publishing. Coinciding with the integration of Omniture in the fourth quarter of fiscal
2009, we created a new reportable segment for financial reporting purposes. Our Creative Solutions segment focuses on
delivering a complete professional line of integrated tools for a full range of creative and developer tasks to an extended set
of customers. The Knowledge Worker segment focuses on the needs of knowledge worker customers, providing essential
applications and services to help them share information and collaborate. This segment contains revenue generated by
Acrobat Connect and our Acrobat family of products. Our Enterprise segment provides server-based enterprise interaction
solutions that automate people-centric processes and contains revenue generated by our LiveCycle line of products. The
Platform segment includes client and developer technologies, such as Adobe Flash Player, Adobe Flash Lite, Adobe AIR,
Adobe Flex and Adobe Flash Builder, and also encompasses products and technologies created and managed in other Adobe
segments. The Print and Publishing segment addresses market opportunities ranging from the diverse publishing needs of
technical and business publishing, to our legacy type and OEM printing businesses. Finally, our Omniture segment provides
web analytics and online business optimization products and services to manage and enhance online, offline and multi-
channel business initiatives.