ADOBE INC.ADBE
ADOBE INC. Fair Value Disclosure
FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The fair value of our financial assets and liabilities at November 28, 2025 was determined using the following inputs:
(in millions) | 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: | |||||||||||||||||||||||
| Corporate debt securities | $ | 928 | $ | — | $ | 928 | $ | — | |||||||||||||||
| Money market funds | 3,607 | 3,607 | — | — | |||||||||||||||||||
| Time deposits | 85 | 85 | — | — | |||||||||||||||||||
| U.S. Treasury securities | 100 | — | 100 | — | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Corporate debt securities | 914 | — | 914 | — | |||||||||||||||||||
| U.S. Treasury securities | 250 | — | 250 | — | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Foreign currency derivatives | 62 | — | 62 | — | |||||||||||||||||||
| Interest rate swap derivatives | 2 | — | 2 | — | |||||||||||||||||||
| Other assets: | |||||||||||||||||||||||
| Deferred compensation plan assets | 342 | 342 | — | — | |||||||||||||||||||
Foreign currency derivatives | 22 | — | 22 | — | |||||||||||||||||||
| Interest rate swap derivatives | 92 | — | 92 | — | |||||||||||||||||||
| Total assets | $ | 6,404 | $ | 4,034 | $ | 2,370 | $ | — | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||
| Foreign currency derivatives | $ | 94 | $ | — | $ | 94 | $ | — | |||||||||||||||
Interest rate swap derivatives | 8 | — | 8 | — | |||||||||||||||||||
| Other liabilities: | |||||||||||||||||||||||
Foreign currency derivatives | 6 | — | 6 | — | |||||||||||||||||||
| Total liabilities | $ | 108 | $ | — | $ | 108 | $ | — | |||||||||||||||
The fair value of our financial assets and liabilities at November 29, 2024 was determined using the following inputs:
(in millions) | 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: | |||||||||||||||||||||||
| Corporate debt securities | $ | 41 | $ | — | $ | 41 | $ | — | |||||||||||||||
| Money market funds | 6,726 | 6,726 | — | — | |||||||||||||||||||
| Time deposits | 57 | 57 | — | — | |||||||||||||||||||
U.S. Treasury securities | 2 | — | 2 | — | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Asset-backed securities | 4 | — | 4 | — | |||||||||||||||||||
| Corporate debt securities | 120 | — | 120 | — | |||||||||||||||||||
U.S. agency securities | 11 | — | 11 | — | |||||||||||||||||||
| U.S. Treasury securities | 138 | — | 138 | — | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Foreign currency derivatives | 105 | — | 105 | — | |||||||||||||||||||
| Other assets: | |||||||||||||||||||||||
| Deferred compensation plan assets | 283 | 283 | — | — | |||||||||||||||||||
Foreign currency derivatives | 24 | — | 24 | — | |||||||||||||||||||
| Total assets | $ | 7,511 | $ | 7,066 | $ | 445 | $ | — | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
Accrued expenses and other current liabilities: | |||||||||||||||||||||||
| Foreign currency derivatives | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||||||||
| Other liabilities: | |||||||||||||||||||||||
Foreign currency derivatives | 2 | — | 2 | — | |||||||||||||||||||
| Total liabilities | $ | 11 | $ | — | $ | 11 | $ | — | |||||||||||||||
Our fixed income available-for-sale debt securities consist of high quality, investment grade securities from diverse issuers with a weighted average credit rating of AA. We value these securities based on pricing from independent pricing vendors who use matrix pricing valuation techniques including market approach methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Inputs include quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value, including benchmark yields, issuer spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. We therefore categorize all of our fixed income available-for-sale securities as Level 2. We perform routine procedures such as comparing prices obtained from multiple independent sources to ensure that appropriate fair values are recorded.
The fair values of our money market funds, time deposits and deferred compensation plan assets, which consist of money market and other mutual funds, are based on quoted prices in active markets at the measurement date.
Our over-the-counter foreign currency and interest rate swap derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange and interest rate data at the measurement date.
Our other current financial assets and current financial liabilities have fair values that approximate their carrying values.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The fair value of our senior notes was $6.18 billion as of November 28, 2025, excluding the associated interest rate swaps, based on observable market prices in less active markets and categorized as Level 2. See Note 17 for further details regarding our debt.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 15, 2026 | Showing above |
| 2024 | Jan 13, 2025 | |
| 2023 | Jan 17, 2024 | |
| 2022 | Jan 17, 2023 | |
| 2021 | Jan 21, 2022 | |
| 2020 | Jan 15, 2021 | |
| 2019 | Jan 21, 2020 | |
| 2018 | Jan 25, 2019 | |
| 2017 | Jan 22, 2018 | |
| 2016 | Jan 20, 2017 | |
| 2015 | Jan 19, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.