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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
92
The fair value of these financial assets and liabilities was determined using the following inputs at November 28, 2008
(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) ....
$
722,742
$
722,742
$
—
$
—
Fixed income available-for-sale securities(2) ........
1,175,732
—
1,175,732
—
Available-for-sale equity securities(3) ..................
3,047
3,047
—
—
Total current assets
1,901,521
725,789
1,175,732
—
Non-current assets:
Investments of limited partnership(4)....................
39,004
251
—
38,753
Foreign currency derivatives(5) ............................
49,848
—
49,848
—
Deferred compensation plan assets
(4)
:
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 non-current assets
96,412
955
56,704
38,753
Total assets ..............................................................
$
1,997,933
$
726,744
$
1,232,436
$
38,753
Liabilities:
Foreign currency derivatives
(6)
............................ $ 1,739 $ — $ 1,739 $ —
Total liabilities .........................................................
$
1,739
$
—
$
1,739
$
—
_________________________________________
(1) Included in cash and cash equivalents on our Consolidated Balance Sheets.
(2) Included in either cash and cash equivalents or short-term investments on our Consolidated Balance Sheets.
(3) Included in short-term investments on our Consolidated Balance Sheets.
(4) Included in other assets on our Consolidated Balance Sheets.
(5) Included in prepaid expenses and other current assets on our Consolidated Balance Sheets.
(6) Included in accrued expenses on our Consolidated Balance Sheets.
See Note 3 for further information regarding the fair value of our financial instruments.
Fixed income available-for-sale securities include U.S. treasury securities, Agency or U.S. government guaranteed
securities (70% of total), corporate bonds (21% of total), obligations of foreign governments and their agencies (6% of total),
and obligations of multi-lateral government agencies (3% of total) at November 27, 2009 and U.S. treasury securities,
Agency or U.S. government guaranteed securities (78% of total), corporate bonds (10% of total), obligations of foreign
governments and their agencies (10% of total), and obligations of multi-lateral government agencies (2% of total) at
November 28, 2008. These are all high quality, investment grade securities with a minimum credit rating of A- and a
weighted average credit rating better than AA+. We value these securities based on pricing from pricing vendors, who may
use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable
either directly or indirectly (Level 2 inputs) in determining fair value. However, we classify all of our fixed income available-
for-sale securities as having Level 2 inputs. Our procedures include controls to ensure that appropriate fair values are
recorded such as comparing prices obtained from multiple independent sources.