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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
97
The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities,
aggregated by investment category that have been in a continuous unrealized loss position for less than twelve months, as of
December 3, 2010 and November 27, 2009 (in thousands):
2010
2009
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
U.S. Treasury and agency securities ........................
$
192,702
$
(388
$
11,179
$
(1
)
Corporate bonds .......................................................
257,615
(1,450
5,041
(1
)
Foreign government securities .................................
4,531
(2
—
—
Municipal securities .................................................
43,028
(32
—
—
Total ................................................................
$
497,876
$
(1,872
$
16,220
$
(2
)
As of December 3, 2010 and November 27, 2009, there were no securities in a continuous unrealized loss position for
more than twelve months. There were 168 securities and 4 securities that were in an unrealized loss position at December 3,
2010 and at November 27, 2009, respectively.
The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as
short-term investments based on stated maturities as of December 3, 2010 (in thousands):
Amortized
Cost
Estimated
Fair Value
Due within one year .....................................................................................................
$
624,260
$
625,423
Due within two years ...................................................................................................
518,262
523,168
Due within three years .................................................................................................
443,965
446,342
Due after three years ....................................................................................................
110,302
112,007
Total ....................................................................................................................
$
1,696,789
$
1,706,940
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 December 3, 2010, we do not
consider any of our investments to be other-than-temporarily impaired.