Adobe 2011 Annual Report Download - page 95

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95
The fair value of derivative instruments on our Consolidated Balance Sheets as of December 2, 2011 and December 3, 2010
was as follows (in thousands):
Derivatives designated as hedging instruments:
Foreign exchange option contracts(3)
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts
Total derivatives
2011
Fair Value
Asset
Derivatives(1)
$ 19,296
6,066
$ 25,362
Fair Value
Liability
Derivatives(2)
$ —
3,881
$ 3,881
2010
Fair Value
Asset
Derivatives(1)
$ 6,092
12,729
$ 18,821
Fair Value
Liability
Derivatives(2)
$ —
1,945
$ 1,945
_________________________________________
(1) Included in prepaid expenses and other current assets on our Consolidated Balance Sheets.
(2) Included in accrued expenses on our Consolidated Balance Sheets.
(3) Hedging effectiveness expected to be recognized to income within the next twelve months.
The effect of derivative instruments designated as cash flow hedges and of derivative instruments not designated as hedges
in our Consolidated Statements of Income for fiscal 2011, 2010 and 2009 were as follows (in thousands):
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax(1)
Net gain (loss) reclassified from accumulated
OCI into income, net of tax(2)
Net gain (loss) recognized in income(3)
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in income(4)
2011
Foreign
Exchange
Option
Contracts
$ 16,952
$ 3,749
$(28,796)
$ —
Foreign
Exchange
Forward
Contracts
$ —
$ —
$ —
$(3,973)
2010
Foreign
Exchange
Option
Contracts
$ 20,325
$ 20,169
$(23,285)
$ —
Foreign
Exchange
Forward
Contracts
$ —
$ —
$ —
$(34,168)
2009
Foreign
Exchange
Option
Contracts
$(14,618)
$ 27,138
$(18,027)
$ —
Foreign
Exchange
Forward
Contracts
$ —
$ —
$ —
$(14,407)
_________________________________________
(1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).
(2) Effective portion classified as revenue.
(3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net.
(4) Classified in interest and other income (expense), net.
Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2011,
2010 and 2009 were as follows (in thousands):
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income
Net unrealized (loss) gain recognized in other income
(Loss) gain on hedges of foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income
Net unrealized gain (loss) recognized in other income
Net gain (loss) recognized in interest and other income (expense), net
2011
$ 6,604
(4,062)
2,542
4,633
(8,606)
(3,973)
$(1,431)
2010
$(11,470)
(12,345)
(23,815)
21,921
12,247
34,168
$ 10,353
2009
$ 25,384
(6,390)
18,994
(11,872)
(2,535)
(14,407)
$ 4,587
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)