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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
91
The following table summarizes the cost and estimated fair value of debt securities classified as short-term investments
based on stated maturities as of November 27, 2009 (in thousands):
Amortized
Cost
Estimated
Fair Value
Due within one year ....................................................
$
385,828
$
387,572
Due within two years ...................................................
246,169
249,882
Due within three years ..................................................
214,108
218,621
Due after three years ....................................................
41,607
43,884
Total ...............................................................
$
887,712
$
899,959
We review our debt and marketable equity securities classified as short-term investments on a regular basis to evaluate
whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the
length of time and extent to which the market value has been less than the cost, the financial condition and near-term
prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell, the investment
before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of
these securities, we write down these investments to fair value. For debt securities, the portion of the write-down related to
credit loss would be recorded to interest and other income, net in our Consolidated Statements of Income. Any portion not
related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate
component of stockholders’ equity in our Consolidated Balance Sheets. For equity securities, the write-down would be
recorded to investment gains (losses), net in our Consolidated Statements of Income. As of November 27, 2009, we do not
consider any of our investments to be other-than-temporarily impaired.
NOTE 4. FAIR VALUE MEASUREMENTS
We measure certain financial assets and liabilities at fair value on a recurring basis. The fair value of these financial
assets and liabilities was determined using the following inputs at November 27, 2009 (in thousands):
Fair Value Measurements at Reporting Date Using
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
Current assets:
Money market funds and overnight deposits(1) ....
$
924,378
$
924,378
$
—
$
—
Fixed income available-for-sale securities(2) ........
899,960
—
899,960
—
Available-for-sale equity securities(3) ..................
5,026
5,026
—
—
Total current assets
1,829,364
929,404
899,960
—
Non-current assets:
Investments of limited partnership(4)....................
37,121
—
—
37,121
Foreign currency derivatives(5) ............................
4,307
—
4,307
—
Deferred compensation plan assets(4):
Money market funds ........................................
717
717
—
—
Equity and fixed income mutual funds ............
8,328
—
8,328
—
Subtotal for deferred compensation plan
assets ........................................................
9,045
717
8,328
—
Total non-current assets
50,473
717
12,635
37,121
Total assets ..............................................................
$
1,879,837
$
930,121
$
912,595
$
37,121
Liabilities:
Foreign currency derivatives(6) ............................
$
1,589
$
—
$
1,589
$
—
Total liabilities .........................................................
$
1,589
$
—
$
1,589
$
—