Adobe 2006 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2006 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 125

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125

85
Note 3. Cash, cash equivalents and short-term investments
Cash, cash equivalents and short-term investments consisted of the following as of December 1, 2006:
Carrying
Value
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Classified as current assets:
Cash................................................................... $ 48,869 $ — $ — $ 48,869
Cash equivalents:
Money market mutual funds ........................... 642,942 — — 642,942
Bank time deposits.......................................... 33,972 — — 33,972
State and municipal bonds and notes .............. 2,004 — — 2,004
Corporate bonds.............................................. 44,713 — — 44,713
Total cash equivalents................................ 723,631 — — 723,631
Total cash and cash equivalents...................... 772,500 — — 772,500
Short-term investments:
State and municipal bonds .............................. 1,231,327 1,079 (3,100) 1,229,306
United States Treasury notes........................... 163,110 274 (87) 163,297
Corporate bonds.............................................. 51,601 67 — 51,668
Obligations of foreign sovereigns ................... 23,896 27 (6) 23,917
Bonds of multi-lateral government agencies... 28,124 40 — 28,164
Marketable equity securities* ......................... 6,734 5,293 — 12,027
Total short-term investments...................... 1,504,792 6,780 (3,193) 1,508,379
Total cash, cash equivalents, and
short-term investments.................................. $ 2,277,292 $ 6,780 $ (3,193) $ 2,280,879
Cash, cash equivalents and short-term investments consisted of the following as of December 2, 2005:
Carrying
Value
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Classified as current assets:
Cash................................................................... $ 41,682 $ — $ — $ 41,682
Cash equivalents:
Money market mutual funds ........................... 334,933 — — 334,933
Bank time deposits.......................................... 24,339 — — 24,339
Corporate bonds.............................................. 19,864 — — 19,864
Total cash equivalents................................ 379,136 — — 379,136
Total cash and cash equivalents...................... 420,818 — — 420,818
Short-term investments:
State and municipal bonds .............................. 1,091,538 22 (8,168) 1,083,392
United States Treasury notes........................... 112,093 — (614) 111,479
Corporate bonds.............................................. 74,449 101 (240) 74,310
Obligations of foreign sovereigns ................... 9,004 — (25) 8,979
Marketable equity securities* ......................... 131 1,725 — 1,856
Total short-term investments...................... 1,287,215 1,848 (9,047) 1,280,016
Total cash, cash equivalents, and
short-term investments .................................. $ 1,708,034 $ 1,848 $ (9,047) $ 1,700,834
*The carrying value of marketable equity securities has been reduced by other-than-temporary declines in the fair
value of these securities.
Interest income for fiscal 2006, 2005, and 2004 was $74.9 million, $42.1 million, and $22.3 million,
respectively.
In accordance with FASB Staff Position (“FSP”) FAS115-1, “The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments,” the following table summarizes the fair value and
gross unrealized losses related to available-for-sale securities, aggregated by investment category and