Adobe 2012 Annual Report Download - page 93

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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 more than twelve months, as of November 30,
2012 and December 2, 2011 (in thousands):
2012 2011
Fair
Value
Gross
Unrealized
Losses Fair
Value
Gross
Unrealized
Losses
Corporate bonds and commercial paper...................... $ 2,999 $ (1) $ 22,918 $ (232)
Municipal securities..................................................... — — 2,668 (1)
Total................................................................... $ 2,999 $ (1) $ 25,586 $ (233)
There was 1 security and 13 securities in an unrealized loss position for more than twelve months at November 30, 2012
and at December 2, 2011, 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 effective maturities as of November 30, 2012 (in thousands):
Amortized
Cost Estimated Fair Value
Due within one year................................................................................................................ $ 655,597 $ 656,818
Due between one and two years ............................................................................................. 490,297 495,066
Due between two and three years........................................................................................... 673,418 678,481
Due after three years............................................................................................................... 279,301 282,692
Total............................................................................................................................... $ 2,098,613 $ 2,113,057
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. During both fiscal 2012 and fiscal 2011, we recorded immaterial other-than-temporary impairment losses
associated with our marketable equity securities and did not consider any of our debt securities to be other-than-temporarily
impaired. During fiscal 2010, we did not consider any of our investments to be other-than-temporarily impaired.
NOTE 4. FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
We measure certain financial assets and liabilities at fair value on a recurring basis. There have been no transfers between
fair value measurement levels during the year ended November 30, 2012.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)