Adobe 2008 Annual Report Download - page 106

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106
Note 17. Financial Instruments
Fair Value of Financial Instruments
We measure certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents,
available-for-sale fixed income and equity securities, other equity securities and foreign currency derivatives. The fair value
of these financial assets and liabilities was determined using the following inputs at November 28, 2008:
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)
Assets:
Money market funds and overnight deposits(1) ...
$
722,742
$
722,742
$
—
$
—
Fixed income available-for-sale securities(2) .....
1,175,732
—
1,175,732
—
Equity available-for-sale securities(3) ...........
3,047
3,047
—
—
Investments of limited partnership(4) ...........
39,004
251
—
38,753
Foreign currency derivatives(5) ................
49,848
—
49,848
—
Deferred compensation plan assets(6)
Money market funds ......................
$
704
$
704
$
—
$
—
Equity and fixed income mutual funds .......
6,856
—
6,856
—
Subtotal for deferred compensation plan
assets
...............................
$ 7,560
$ 704
$ 6,856
$ —
Total .....................................
$
1,997,933
$
726,744
$
1,232,436
$
38,753
Liabilities:
Foreign currency derivatives
(7)
................
1,739 — 1,739 —
Total .....................................
$
1,739
$
—
$
1,739
$
—
_________________________________________
(1) Included in cash and cash equivalents on our consolidated balance sheet.
(2) Included in either cash and cash equivalents or short-term investments on our consolidated balance sheet.
(3) Included in short-term investments on our consolidated balance sheet.
(4) Included in other assets on our consolidated balance sheet.
(5) Included in prepaid expenses and other assets on our consolidated balance sheet.
(6) Included in other assets on our consolidated balance sheet.
(7) Included in accrued expenses on our consolidated balance sheet.
Fixed income available-for-sale securities include United States treasury securities (78% of total), corporate bonds (10%
of total), obligations of foreign governments (10% of total) and obligations of multi-lateral government agencies (2% of
total).
The Level 1 investments of limited partnership relate to investments in publicly-traded companies and the Level 3
investments relate to investments in privately-held companies. The investments of limited partnership relate to our interest in
Adobe Ventures which was $39.0 million and $30.6 million as of November 28, 2008 and November 30, 2007, respectively.
The change in this asset balance relates primarily to investment gains included in earnings during the fiscal year ended
November 28, 2008. All other activity during the quarter was insignificant both individually and in the aggregate.