Adobe 2010 Annual Report Download - page 80

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80
The following tables present the hypothetical fair values of our debt securities classified as short-term investments
assuming immediate parallel shifts in the yield curve of 50 basis points (“BPS”), 100 BPS and 150 BPS. The analysis is
shown as of December 3, 2010 and November 27, 2009 (dollars in millions):
-150 BPS
-100 BPS
-50 BPS
Fair Value
12/3/2010
+50 BPS
+100 BPS
+150 BPS
1,730.2
1,726.4
1,718.9
1,706.9
1,694.7
1,682.6
1,670.6
-150 BPS -100 BPS -50 BPS
Fair Value
11/27/2009 +50 BPS +100 BPS +150 BPS
910.8
909.2
905.4
900.0
893.9
888.0
882.2
Other Market Risk
Privately Held Long-Term Investments
The privately held companies in which we invest, can still be considered in the start-up or development stages which are
inherently risky. The technologies or products these companies have under development are typically in the early stages and
may never materialize, which could result in a loss of a substantial part of our initial investment in these companies. The
evaluation of privately held companies is based on information that we request from these companies which is not subject to
the same disclosure regulations as U.S. publicly traded companies and as such, the basis for these evaluations is subject to the
timing and accuracy of the data received from these companies.
See Note 4 and Note 8 of our Notes to Consolidated Financial Statements for information regarding our limited
partnership interest in Adobe Ventures.
Short-Term Investments and Marketable Equity Securities
We are exposed to equity price risk on our portfolio of marketable equity securities. As of December 3, 2010, our total
equity holdings in publicly traded companies were valued at $11.2 million compared to $5.0 million at November 27, 2009.
The increase was primarily due to the change in the fair value of our equity holdings during fiscal 2010.
The following table represents the potential decrease in fair values of our marketable equity securities as of December 3,
2010, that are sensitive to changes in the stock market. Fair value deteriorations of 50%, 35% and 15% were selected for
illustrative purposes because none is more likely to occur than another.
(in millions)
50%
35%
15%
Marketable equity securities ........................................................
$
(5.6
)
$
(3.9
)
$
(1.7
)