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Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
76
The fair value of our financial assets and liabilities at November 28, 2014 was determined using the following inputs (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)
Assets:
Cash equivalents:
Money market mutual funds $ 705,978 $ 705,978 $ — $ —
Time deposits 63,139 63,139 — —
Short-term investments:
Corporate bonds and commercial paper 1,519,376 — 1,519,376 —
Foreign government securities 4,511 — 4,511 —
Marketable equity securities 491 491 — —
Municipal securities 175,201 — 175,201 —
U.S. agency securities 498,385 — 498,385 —
U.S. Treasury securities 424,127 — 424,127 —
Prepaid expenses and other current assets:
Foreign currency derivatives 32,991 — 32,991 —
Other assets:
Deferred compensation plan assets 25,745 549 25,196 —
Interest rate swap derivatives 14,268 — 14,268 —
Total assets $ 3,464,212 $ 770,157 $ 2,694,055 $ —
Liabilities:
Accrued expenses:
Foreign currency derivatives $ 663 $ — $ 663 $ —
Total liabilities $ 663 $ — $ 663 $ —
See Note 3 for further information regarding the fair value of our financial instruments.
Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers with
a minimum credit rating of BBB and a weighted average credit rating of 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. The valuation techniques used to measure the fair value of our
financial instruments and derivatives having Level 2 inputs were derived from non-binding market consensus prices that are
corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash
flow techniques. Our procedures include controls to ensure that appropriate fair values are recorded such as comparing prices
obtained from multiple independent sources.
Our deferred compensation plan assets consist of prime money market funds and mutual funds.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
We also have direct investments in privately held companies accounted for under the cost method, which are periodically
assessed for other-than-temporary impairment. If we determine that an other-than-temporary impairment has occurred, we write