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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 1 - us-gaap:SignificantAccountingPoliciesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<!-- xbrl,ns -->
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 1. SIGNIFICANT ACCOUNTING POLICIES</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Operations</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Founded in 1982, Adobe Systems Incorporated is one of the largest and most diversified
software companies in the world. We offer a line of creative, business, Web and mobile software and
services used by creative professionals, knowledge workers, consumers, original equipment
manufacturers (“OEMs”), developers and enterprises for creating, managing, delivering,
optimizing and engaging with compelling content and experiences across multiple operating systems,
devices and media. We distribute our products through a network of distributors, value-added
resellers (“VARs”), systems integrators, independent software vendors (“ISVs”) and OEMs, direct to
end users and through our own Website at www.adobe.com. We also license our technology to hardware
manufacturers, software developers and service providers, and we offer integrated software
solutions to businesses of all sizes. We have operations in the Americas, Europe, Middle East and
Africa (“EMEA”) and Asia. Our software runs on personal computers with Microsoft Windows, Apple Mac
OS, Linux, UNIX and various non-PC platforms, depending on the product.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Basis of Presentation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying Consolidated Financial Statements include those of Adobe and its
subsidiaries, after elimination of all intercompany accounts and transactions. We have prepared the
accompanying Consolidated Financial Statements in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the
Securities and Exchange Commission (“SEC”).
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Use of Estimates</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In preparation of consolidated financial statements and related disclosures in conformity with
GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments
that affect the amounts reported in the Consolidated Financial Statements and accompanying notes.
Estimates are used for, but not limited to sales allowances and programs, bad debts, stock-based
compensation, allocation of purchase price allocations, excess inventory and
purchase commitments, restructuring costs, facilities lease losses, impairment of goodwill and
intangible assets, litigation, income taxes and investments. Actual results may differ materially
from these estimates.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fiscal Year</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30.
Fiscal years 2009, 2008 and 2007 were all 52 weeks.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Reclassification</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain prior year amounts have been reclassified to conform to current year presentation in
the Consolidated Statements of Cash Flows. The previously reported classifications of net cash
provided by (used for) operating activities, investing activities and financing activities for any
period presented were not affected by these reclassifications.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Allowance for Doubtful Accounts</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We maintain an allowance for doubtful accounts which reflects our best estimate of potentially
uncollectible trade receivables. We regularly review our trade receivables allowances by
considering such factors as historical experience, credit-worthiness, the age of the trade
receivable balances and current economic conditions that may affect a customer’s ability to pay and
we specifically reserve for those deemed uncollectible.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,798</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">9,421</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Charged (credited) to operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">2,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,414</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,367</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Preference claim, credited to operating expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deductions<sup style="font-size: 85%; vertical-align: text-top">(*)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(165</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,684</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,033</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,225</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Deductions related to the allowance for doubtful accounts represent amounts written
off against the allowance, less recoveries.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Foreign Currency Translation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We translate assets and liabilities of foreign subsidiaries, whose functional currency is
their local currency, at exchange rates in effect at the balance sheet date. We translate revenue
and expenses at the monthly average exchange rates. We include accumulated net translation
adjustments in stockholders’ equity as a component of accumulated other comprehensive income.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Property and Equipment</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We record property and equipment at cost less accumulated depreciation and amortization.
Property and equipment are depreciated using the straight-line method over their estimated useful
lives ranging from 1 to 5 years for computers and equipment, 1 to 6 years for furniture and
fixtures and up to 35 years for buildings. Leasehold improvements are amortized using the
straight-line method over the lesser of the remaining respective lease term or useful lives.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Goodwill, Purchased Intangibles and Other Long-Lived Assets</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We review our goodwill for impairment annually, or more frequently, if facts and circumstances
warrant a review. We completed our annual impairment test in the second quarter of fiscal 2009 and
determined that there was no impairment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill is assigned to one or more reporting segments on the date of acquisition. We evaluate
goodwill for impairment by comparing the fair value of each of our reporting segments to its
carrying value, including the associated goodwill. To determine the fair values, we use the market
approach based on comparable publicly traded companies in similar lines of businesses and the
income approach based on estimated discounted future cash flows. Our cash flow assumptions consider
historical and forecasted revenue, operating costs and other relevant factors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We amortize intangible assets with finite lives over their estimated useful lives and review
them for impairment whenever an impairment indicator exists. We continually monitor events and
changes in circumstances that could indicate carrying amounts of our long-lived assets, including
our intangible assets may not be recoverable. When such events or changes in circumstances occur,
we assess recoverability by determining whether the carrying value of such assets will be recovered
through the undiscounted expected future cash flows. If the future undiscounted cash flows are less
than the carrying amount of these assets, we recognize an impairment loss based on the excess of
the carrying amount over the fair value of the assets. We did not recognize any intangible asset
impairment charges in fiscal 2009, 2008 or 2007.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our intangible assets are amortized over their estimated useful lives of 1 to 13 years as
shown in the table below. Amortization is based on the pattern in which the economic benefits of
the intangible asset will be consumed.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Useful Life (years)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchased technology
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Localization
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Software Development Costs</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Capitalization of software development costs for software to be sold, leased, or otherwise
marketed begins upon the establishment of technological feasibility, which is generally the
completion of a working prototype that has been certified as having no critical bugs and is a
release candidate. Amortization begins once the software is ready for its intended use, generally
based on the pattern in which the economic benefits will be consumed. To date, software development
costs incurred between completion of a working prototype and general availability of the related
product have not been material.
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revenue Recognition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our revenue is derived from the licensing of software products, consulting, hosting services
and maintenance and support. Primarily, we recognize revenue when persuasive evidence of an
arrangement exists, we have delivered the product or performed the service, the fee is fixed or
determinable and collection is probable.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Multiple Element Arrangements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We enter into multiple element revenue arrangements in which a customer may purchase a
combination of software, upgrades, hosting services, maintenance and support, and consulting
(multiple-element arrangements). When vendor specific objective evidence (“VSOE”) of fair value
does not exist for all delivered elements, we allocate and defer revenue for the undelivered items
based on VSOE of fair value of the undelivered elements and recognize the difference between the
total arrangement fee and the amount deferred for the undelivered items as license revenue.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     VSOE of fair value for each element is based on the price for which the element is sold
separately. We determine the VSOE of fair value of each element based on historical evidence of our
stand-alone sales of these elements to third-parties or from the stated renewal rate for the
elements contained in the initial software license arrangement. When VSOE of fair value does not
exist for any undelivered element, revenue is deferred until the earlier of the point at which such
VSOE of fair value exists or until all elements of the arrangement have been delivered. The only
exception to this guidance is when the only undelivered element is maintenance and support or other
services, then the entire arrangement fee is recognized ratably over the performance period.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Product Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize our product revenue upon shipment, provided all other revenue recognition
criteria have been met. Our desktop application products’ revenue from distributors is subject to
agreements allowing limited rights of return, rebates and price protection. Our direct sales and
OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized
for estimated future returns, price protection and rebates at the time the related revenue is
recorded. The estimates for returns are adjusted periodically based upon historical rates of
returns, inventory levels in the distribution channel and other related factors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We record the estimated costs of providing free technical phone support to customers for our
software products.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating
our software, provided collection of such revenue is deemed probable. For certain OEM customers, we
must estimate royalty revenue due to the timing of securing customer information. This estimate is
based on a combination of our generated forecasts and actual historical reporting by our OEM
customers. To substantiate our ability to estimate revenue, we review license royalty revenue
reports ultimately received from our significant OEM customers in comparison to the amounts
estimated in the prior period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our product-related deferred revenue includes maintenance upgrade revenue and customer
advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application
products is included in our product revenue line item as the maintenance primarily entitles
customers to receive product upgrades. In cases where we provide a specified free upgrade to an
existing product, we defer the fair value for the specified upgrade right until the future
obligation is fulfilled or when the right to the specified free upgrade expires.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Services and Support Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our services and support revenue is composed of consulting, training and maintenance and
support, primarily related to the licensing of our Enterprise and Mobile and Device Solutions
products. Our support revenue also includes technical support and developer support to partners and
developer organizations related to our desktop products.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize revenue for hosting services that are based on a committed number of
transactions, including implementation and set-up fees, ratably beginning on the date the customer
commences use of our services and continuing through the end of the customer term. Over-usage fees,
and fees billed based on the actual number of transactions from which we capture data, are billed
in accordance with contract terms as these fees are incurred. We record amounts that have been
invoiced in accounts receivable and in deferred revenue or revenue, depending on whether the
revenue recognition criteria have been met.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our consulting revenue is primarily recognized using the proportionate performance method and
is measured monthly
based on input measures, such as hours incurred to date compared to total estimated hours to
complete, with consideration given to output measures, such as contract milestones when applicable.
Our maintenance and support offerings, which entitle customers to receive product upgrades and
enhancements or technical support, depending on the offering, are recognized ratably over the
performance period of the arrangement.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Rights of Return, Rebates and Price Protection</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As discussed above, we offer limited rights of return, rebates and price protection of our
products under various policies and programs with our distributors, resellers and/or end-user
customers. We estimate and record reserves for these programs as an offset to revenue. Below is a
summary of each of the general provisions in our contracts:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Distributors are allowed limited rights of return of products purchased during the
previous quarter. In addition, distributors are allowed to return products that have
reached the end of their lives and products that are being replaced by new versions.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>We offer rebates to our distributors, resellers and/or end user customers. The amount of
revenue that is reduced for distributor and reseller rebates is based on actual performance
against objectives set forth by us for a particular reporting period (volume, timely
reporting, etc.). If mail-in or other promotional rebates are offered, the amount of
revenue reduced is based on the dollar amount of the rebate, taking into consideration an
estimated redemption rate calculated using historical trends.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>From time to time, we may offer price protection to our distributors that allow for the
right to a credit if we permanently reduce the price of a software product. The amount of
revenue that is reduced for price protection is calculated as the difference between the
old and new price of a software product on inventory held by the distributor prior to the
effective date of the decrease.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Although our subscription contracts are generally non-cancelable, a limited number of
customers have the right to cancel their contracts by providing prior written notice to us of their
intent to cancel the remainder of the contract term. In the event a customer cancels its contract,
they are not entitled to a refund for prior services we have provided to them.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On a quarterly basis, the amount of revenue that is reserved for future returns is calculated
based on our historical trends and data specific to each reporting period. We review the actual
returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate.
We then apply the historical rate to the current period revenue as a basis for estimating future
returns. When necessary, we also provide a specific returns reserve for product in the distribution
channel in excess of estimated requirements. This estimate can be affected by the amount of a
particular product in the channel, the rate of sell-through, product plans and other factors.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revenue Reserve</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Revenue reserve rollforward (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55,526</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">6,566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount charged to revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">113,009</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">153,129</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">156,761</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual returns
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136,117</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(145,718</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(168,755</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34,401</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Deferred Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Deferred revenue consist of billings or payments received in advance of revenue recognition
for our products and services described above. We recognize deferred
revenue as revenue only when the
revenue recognition criteria are met.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Taxes Collected from Customers</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We net taxes collected from customers against those remitted to government authorities in our
financial statements. Accordingly, taxes collected from customers are
not reported as revenue.
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Advertising Expenses</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Advertising costs are expensed as incurred. Advertising expenses for fiscal 2009, 2008 and
2007 were $67.0 million, $67.1 million and $45.3 million, respectively.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Foreign Currency and Other Hedging Instruments</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In countries outside the United States (“U.S.”), we transact business in U.S. dollars and in various other
currencies. In Europe and Japan, transactions that are denominated in Euro and Yen are subject to
exposure from movements in exchange rates. We hedge our net recognized foreign currency assets and
liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash
flows will be adversely affected by changes in exchange rates. We use foreign exchange option and
forward contracts for Euro- and Yen-denominated revenue.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We account for our derivative instruments as either assets or liabilities on the balance sheet
and measure them at fair value. Gains and losses resulting from changes in fair value are accounted
for depending on the use of the derivative and whether it is designated and qualifies for hedge
accounting. Derivatives that do not qualify for hedge accounting are adjusted to fair value
through earnings. <i>See Note 5 for information regarding our hedging activities.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Gains and losses from foreign exchange forward contracts which hedge certain balance sheet
positions, primarily non-functional currency denominated assets and liabilities (e.g., trade
receivables and accounts payable) are recorded each period as a component of interest and other
income, net in our Consolidated Statements of Income. Foreign exchange forward and option contracts
hedging forecasted non-functional currency product licensing revenue, are designated as cash flow
hedges under accounting for derivative instruments and hedging activities, with gains and losses
recorded net of tax, as a component of other comprehensive income in stockholders’ equity and
reclassified into revenue at the time the forecasted transactions occur.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Income Taxes</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We use the asset and liability method of accounting for income taxes. Under this method,
income tax expense is recognized for the amount of taxes payable or refundable for the current
year. In addition, deferred tax assets and liabilities are recognized for expected future tax
consequences of temporary differences between the financial reporting and tax bases of assets and
liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance
to reduce deferred tax assets to an amount for which realization is more likely than not.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Recent Accounting Pronouncements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In October 2009, the Financial Accounting Standards Board (“FASB”) issued new revenue
recognition standards for arrangements with multiple deliverables, where certain of those
deliverables are non-software related. The new standards permit entities to initially use
management’s best estimate of selling price to value individual deliverables when those
deliverables do not have VSOE of fair value or when third-party evidence is not available.
Additionally, these new standards modify the manner in which the transaction consideration is
allocated across the separately identified deliverables by no longer permitting the residual method
of allocating arrangement consideration. These new standards are effective for annual periods
ending after June 15, 2010 and are effective for us beginning in the first quarter of fiscal 2011,
however early adoption is permitted. We are currently evaluating the impact of adopting these new
standards on our consolidated financial position, results of operations and cash flows, including
possible early adoption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued the FASB Accounting Standards Codification (the
“Codification”) for financial statements issued for interim and annual periods ending after
September 15, 2009, which was effective for us beginning in the fourth quarter of fiscal 2009. The
Codification became the single authoritative source for GAAP. Accordingly, previous references to
GAAP accounting standards are no longer used in our disclosures, including these Notes to the
Consolidated Financial Statements. The Codification does not affect our consolidated financial
position, cash flows, or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued amended standards for determining whether to consolidate a
variable interest entity. These new standards amend the evaluation criteria to identify the
primary beneficiary of a variable interest entity and requires ongoing reassessment of whether an
enterprise is the primary beneficiary of the variable interest entity. The provisions of the new
standards are effective for annual reporting periods beginning after November 15, 2009 and interim
periods within those fiscal years. These standards will be effective for us beginning in the first
quarter of fiscal 2010. The adoption of the new standards will not have an impact on our
consolidated financial position, results of operations and cash flows.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2009, the FASB issued new standards for subsequent events, which establishes general
standards of accounting for and disclosure of events that occur after the balance sheet date but
before financial statements are issued or are available to be issued. The new standards are
effective for interim and annual reporting periods ending after June 15, 2009. We adopted the new
standards during the third quarter of fiscal 2009 and, as the pronouncement only requires
additional disclosures, the adoption did not have an impact on our consolidated financial position,
results of operations or cash flows. We have evaluated subsequent events through January 22, 2010,
the date that these financial statements were issued.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued new standards for the recognition and measurement of
other-than-temporary impairments for debt securities which replaced the pre-existing “intent and
ability” indicator. These new standards specify that if the fair value of a debt security is less
than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances
where (1) an entity has an intent to sell the security, (2) it is more likely than not that the
entity will be required to sell the security before recovery of its amortized cost basis, or (3)
the entity does not expect to recover the entire amortized cost basis of the security (that is, a
credit loss exists). Other-than-temporary impairments are separated into amounts representing
credit losses which are recognized in earnings and amounts related to all other factors which are
recognized in other comprehensive income (loss). We adopted these standards in the third quarter of
fiscal 2009 and they did not have a material effect on our consolidated financial position, results
of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued new standards which provide guidance on how to determine the
fair value of assets and liabilities when the volume and level of activity for the asset or
liability has significantly decreased. These new standards also provide guidance on identifying
circumstances that indicate a transaction is not orderly. In addition, we are required to disclose
in interim as well as annual reporting periods the inputs and valuation techniques used to measure
fair value and discussion of changes in valuation techniques. We adopted these standards in the
third quarter of fiscal 2009 and they did not have a material effect on our consolidated financial
position, results of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In September 2008, the FASB issued additional guidance which requires additional disclosures
by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments.
This new guidance also amends previous guidance related to accounting for guarantees to require
additional disclosure about the current status of the payment/performance risk of a guarantee.
These new provisions are effective for reporting periods ending after November 15, 2008. These
provisions further clarify the effective date of new disclosure requirements regarding derivative
instruments and hedging activities. We adopted these disclosures requirements in the first quarter
of fiscal 2009. Since the new guidance only required additional disclosures, the adoption did not
impact our consolidated financial position, results of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2008, the FASB issued new standards which provided guidance on how to determine the
useful life of intangible assets by amending the factors an entity should consider in developing
renewal or extension assumptions used in determining the useful life of recognized intangible
assets. This new guidance applies prospectively to intangible assets that are acquired individually
or with a group of other assets in business combinations and asset acquisitions. These standards
are effective for financial statements issued for fiscal years beginning after December 15, 2008
and interim periods within those fiscal years and is effective for us beginning in the first
quarter of fiscal 2010. Early adoption is not permitted. As this guidance is to be applied
prospectively, on adoption, there will be no impact to our current consolidated financial
statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2008, the FASB issued new standards which requires companies with derivative
instruments to disclose information that should enable financial statement users to understand how
and why a company uses derivative instruments, how derivative instruments and related hedged items
are accounted for and how derivative instruments and related hedged items affect a company’s
financial position, financial performance and cash flows. We adopted these new standards in the
first quarter of fiscal 2009. Since the new standards only required additional disclosure, the
adoption did not impact our consolidated financial position, results of operations or cash flows.
<i>See Note 5 for further information regarding derivative instruments and related hedged items.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
December 2007, the FASB revised their guidance for business combinations and non-controlling
interests. The new standards will change how business acquisitions are accounted for and will
impact financial statements both on the acquisition date and in subsequent periods. The changes
also impact the accounting and reporting for minority interests, which will be recharacterized as
non-controlling interests and classified as a component of equity. The new standards are effective
for us beginning in the first quarter of fiscal 2010. Early adoption is not permitted. We are
currently evaluating the impact the new standards will have on our consolidated financial
statements however, we currently believe that depending on the size and frequency of acquisitions,
the adoption of these standards may have a material effect on our
future consolidated financial statements
as more costs associated with acquisitions will be required to be expensed rather than accounted
for as part of the purchase price.
</div>
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 2. ACQUISITIONS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Fiscal 2009 Acquisitions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 23, 2009, we completed the acquisition of Omniture, Inc. (“Omniture”), an industry
leader in Web analytics and online business optimization based in Orem, Utah, for approximately
$1.8 billion. Under the terms of the agreement, we completed our tender offer to acquire all of the
outstanding shares of Omniture common stock at a price of $21.50 per share, net to the seller in
cash, without interest. Acquiring Omniture accelerates our strategy of delivering more effective
solutions for assembling, delivering, targeting and optimizing Web content and applications. The
transaction was accounted for using the purchase method of accounting. We have included the
financial results of Omniture in our Consolidated Financial Statements beginning on the acquisition
date. Following the closing, we integrated Omniture as a new reportable segment for financial
reporting purposes.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Assets acquired and liabilities assumed were recorded at their fair values as of October 23,
2009. The total $1.8 billion purchase price was comprised of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisition of approximately 79 million shares of outstanding common stock of Omniture at
$21.50 per share in cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,698,926</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated fair value of earned stock options and restricted stock units assumed and converted
</div></td>
<td> </td>
<td> </td>
<td align="right">84,968</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated direct transaction costs
</div></td>
<td> </td>
<td> </td>
<td align="right">13,964</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total purchase price
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,797,858</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In connection with the acquisition, each Omniture stock option that was outstanding and
unexercised was assumed and converted into an option to purchase Adobe common stock based on one of
two conversion ratios, dependent on which plan the award was granted under. The conversion ratio
was either 0.6182, which was calculated as the consideration price of $21.50 divided by the closing
price on the date of acquisition, or 0.6083 calculated as the consideration price of $21.50 divided
by the average closing price from October 16, 2009 to October 22, 2009. We assumed the stock
options in accordance with the terms of the applicable Omniture stock option plan and terms of the
stock option agreement relating to that Omniture stock option. Based on Omniture’s stock options
outstanding at October 23, 2009, we converted options to purchase approximately 8.9 million shares
of Omniture common stock into options to purchase approximately 5.5 million shares of Adobe common
stock. We also assumed and converted approximately 2.5 million shares of outstanding Omniture
restricted stock units into approximately 1.6 million shares of Adobe restricted stock units, using
the same conversion ratios stated above. The estimated value of the stock options and restricted
stock units assumed and converted that is included in the preliminary purchase price equals the
fair value of the options to purchase approximately 5.5 million of Adobe common stock and the 1.6
million shares of Adobe restricted stock units, reduced by the portion of the respective values
considered unearned compensation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The estimated fair value of the stock options assumed was determined to be approximately $97.1
million using a Binomial option valuation model with the following assumptions: volatility of
33.6-35.4%; weighted average risk-free interest rate of 0.20-3.64%; dividend yield of 0%; early
exercise threshold of $14.20; and post vesting cancellation rate of 1.89%. The underlying stock
price used in valuing the options was $34.33, which was the average of closing prices for a range
of trading days from September 11, 2009 through September 17, 2009, comprising two days before
through two days after the date the acquisition was announced. The value of stock options
considered unearned compensation was determined to be approximately $34.9 million, net of estimated
forfeitures, also using a Binomial option valuation model with the following assumptions:
volatility of 36.5-37.0%; weighted average risk-free interest rate of 0.24%-3.25%; dividend
yield of 0%; early exercise threshold of $14.20; and post vesting cancellation rate of 1.89%. The
underlying stock price used in valuing the options for which a portion was considered unearned
compensation was $34.78, which was the closing price on October 23, 2009. The fair value of the
converted restricted stock units was determined to be approximately $55.6 million based on Adobe’s
average stock price of $34.33, as discussed above. This amount was reduced by the fair value
of the restricted stock units considered unearned compensation of approximately $32.8 million, net
of estimated forfeitures, based on the $34.78 stock price referred to above. $67.7 million in
unearned compensation will be recorded as an expense on a straight-line basis over the remaining
service periods of the respective awards. The recognition of expense associated with the portion of
the assumed and converted stock options and restricted stock units that are subject to future
service requirements, which are not included in the purchase accounting, have not been included in
the pro forma statements of income.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Direct transaction costs of approximately $14.0 million include estimated investment banking,
legal and accounting fees, and other external costs directly related to the acquisition. As of
November 27, 2009, substantially all costs for accounting, legal, and other professional services
have been paid.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Preliminary Purchase Price Allocation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the purchase accounting method, the total preliminary purchase price was allocated to
Omniture’s net tangible and intangible assets based upon their estimated fair values as of October
23, 2009. The excess purchase price over the value of the net tangible and identifiable intangible
assets was recorded as goodwill.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below represents the allocation of the preliminary purchase price to the acquired
net assets of Omniture based on their estimated fair values as of October 23, 2009 and the
associated estimated useful lives at that date. The preliminary allocation of the purchase price
was based upon a preliminary valuation and our estimates and assumptions are subject to change
within the purchase price allocation period as valuations are finalized.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Useful Life</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(years)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net tangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Identifiable intangible assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Existing technology
</div></td>
<td> </td>
<td> </td>
<td align="right">176,100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">167,900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Contract backlog
</div></td>
<td> </td>
<td> </td>
<td align="right">52,100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-competition agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">41,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">In-process research and development
</div></td>
<td> </td>
<td> </td>
<td align="right">4,600</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">1,334,980</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring liability
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,860</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total estimated purchase price allocation
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,797,858</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Net tangible assets—</i>Omniture’s tangible assets and liabilities as of October 23, 2009 were
reviewed and adjusted to their fair value as necessary. Among the net tangible assets assumed were
$137.4 million in cash and cash equivalents, $119.1 million in trade receivables, $40.9 million in
property, plant and equipment, $46.0 million in accrued expenses and $110.9 million in deferred tax
liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Deferred revenue—</i>Included in net tangible assets is Omniture’s deferred revenue which represents advance payments from customers
related to subscription contracts and professional services. We estimated our obligation related to
the deferred revenue using the cost build-up approach. The cost build-up approach determines fair
value by estimating the costs relating to supporting the obligation plus an assumed profit. The sum
of the costs and assumed profit approximates, in theory, the amount that we would be required to
pay a third party to assume the obligation. The estimated costs to fulfill the obligation were
based on the near-term projected cost structure for subscription and professional services. As a
result, we recorded an adjustment to reduce Omniture’s carrying value of deferred revenue by $39.7
million to $87.4 million, which represents our estimate of the fair value of the contractual
obligations assumed based on a preliminary valuation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Identifiable intangible assets—</i>Existing technology acquired primarily consists of Omniture’s
SiteCatalyst Web analytics, Omniture Test & Target, and HBX subscription service offerings and also
consists of Omniture SiteSearch, Omniture Merchandising and Omniture Insight products and
subscription services. The preliminary estimated fair value of the existing technology was
determined based on the present value of the expected cash flows to be generated by each existing
technology. Customer relationships consist of Omniture’s contractual relationships and customer
loyalty related to their enterprise and mid-market customers as well as partner customers that
resell Omniture’s services to end users. Contract backlog relates to subscription contracts and
professional services. We will amortize the fair value of the contract backlog based on the pattern
in which the economic benefits will be consumed. Trademarks include the Omniture trade name as well
as SiteCatalyst, Omniture SearchCenter, Omniture Discover, Omniture Genesis, and HBX product names.
Non-compete agreements include agreements with key Omniture employees that preclude them from
competing against Omniture for a period of two years. With the exception of contract backlog, we
expect to amortize the fair value of these intangible assets on a straight-line basis over their
respective estimated useful lives.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>In-process research and development—</i>In-process research and development (“IPR&D”) was
expensed to amortization of purchased intangibles and incomplete technology in our Consolidated
Statements of Income upon acquisition as it represents incomplete Omniture research and development
projects that had not reached technological feasibility and had no alternative future use as of the
date of the acquisition. Technological feasibility is established when an enterprise has completed
all planning, designing, coding, and testing activities that are necessary to establish that a
product can be produced to meet its design specifications including functions, features, and
technical performance requirements. The estimated fair value of $4.6 million was determined by
estimating the net cash flows expected to be generated from the project and discounting the net
cash flows to their present value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Goodwill—</i>Approximately $1.3 billion has been allocated to goodwill. Goodwill represents the
excess of the purchase price over the fair value of the underlying acquired net tangible and
intangible assets. The factors that contributed to the recognition of goodwill included securing
buyer-specific synergies that increase revenue and profits and are not otherwise available to a
marketplace participant, acquiring a talented workforce, and cost savings opportunities. The
preliminary goodwill recorded in connection with Omniture has been allocated to the Omniture and
Creative Solutions reportable segments of $1.1 billion and $0.2 billion, respectively, based on
expected revenue and cost synergies to be gained as a result of the acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Restructuring—</i>$10.9 million in restructuring related primarily to costs for severance and
associated benefits, outplacement services, and cost of redundant facilities. <i>See Note 11 for
further details of the amounts accrued during 2009.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Taxes—</i>As part of our accounting for the Omniture acquisition, a portion of the overall
purchase price was allocated to goodwill and acquired intangible assets. Amortization expense
associated with acquired intangible assets is not deductible for tax purposes. Thus, approximately
$174.4 million, included in the net tangible assets, was established as a deferred tax liability
for the future amortization of the intangible assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Any impairment charges made in the future associated with goodwill will not be tax deductible
and will result in an increased effective income tax rate in the quarter the impairment is
recorded.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Pro Forma Results</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The financial information in the table below summarizes the combined results of operations of
Adobe and Omniture, on a pro forma basis, as though the companies had been combined as of the
beginning of the periods presented. The pro forma financial information is presented for
informational purposes only and is not indicative of the results of operations that would have been
achieved if the acquisition had taken place on November 29, 2008 and December 1, 2007 or of results
that may occur in the future.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following pro forma financial information for fiscal 2009 and 2008 combines the historical
results for Adobe for the years ended November 27, 2009 and November 28, 2008 and the historical
results of Omniture for the period January 1, 2009 through October 23, 2009 and the year ended December 31, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3,168,731</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,835,799</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">308,904</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">742,749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.59</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used in computing basic net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">524,470</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">539,373</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.58</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.35</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used in computing diluted net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">531,293</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">549,883</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition to the acquisition of Omniture, we acquired one other company during fiscal 2009
for cash consideration of approximately $35.3 million. The impact of this acquisition was not material to our consolidated balance sheets and
results of operations.
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fiscal 2008 Acquisition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2008, we completed one business combination for cash consideration of
approximately $4.3 million. This acquisition was not material to our consolidated balance sheets
and results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fiscal 2007 Acquisitions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2007, we completed two business combinations and one asset acquisition for cash
consideration of $77.0 million. Both individually and in the aggregate, these acquisitions were not
material to our consolidated balance sheets and results of operations.
<i>See Note 7 for information regarding goodwill and purchased and other
intangibles.</i>
</div>
</div>
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<!-- Begin Block Tagged Note 3 - adbe:CashCashEquivalentsAndShortTermInvestmentTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 3. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Cash equivalents consist of instruments with remaining maturities of three months or less at
the date of purchase. We classify all of our cash equivalents and short-term investments as
“available-for-sale.” These investments are free of trading restrictions. We carry these
investments at fair value, based on quoted market prices or other readily available market
information. Unrealized gains and losses, net of taxes, are included in accumulated other
comprehensive income, which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains are
recognized when realized in our Consolidated Statements of Income. Losses are recognized as
realized. When we have determined that an other-than-temporary decline in fair value has occurred
the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are
determined using the specific identification method.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Cash, cash equivalents and short-term investments consisted of the following as of November
27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">75,110</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">75,110</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash equivalents:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">884,240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">884,240</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Bank deposits
</div></td>
<td> </td>
<td> </td>
<td align="right">40,137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,137</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">924,377</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">924,377</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">999,487</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">999,487</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Short-term investments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">373,180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,199</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">376,378</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">United States government agency bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">59,447</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,720</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Government guaranteed bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">221,730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,409</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">225,138</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">185,735</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,702</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190,437</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of foreign governments
</div></td>
<td> </td>
<td> </td>
<td align="right">23,022</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">397</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,419</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Bonds of multi-lateral government agencies
</div></td>
<td> </td>
<td> </td>
<td align="right">24,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">269</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,867</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right">887,712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,249</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">899,959</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other marketable equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">2,527</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,027</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total short-term investments
</div></td>
<td> </td>
<td> </td>
<td align="right">890,239</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,749</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">904,986</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total cash, cash equivalents and short-term investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,889,726</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,749</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,904,473</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     Cash, cash equivalents and short-term investments consisted of the following as of
November 28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">117,681</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">117,681</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash equivalents:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">682,148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682,148</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Bank deposits
</div></td>
<td> </td>
<td> </td>
<td align="right">40,594</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,594</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">35,992</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,999</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">10,028</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,028</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">768,762</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">768,769</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">886,443</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">886,450</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Short-term investments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">863,772</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,384</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">878,155</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">109,415</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">219</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(997</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">108,637</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of foreign governments
</div></td>
<td> </td>
<td> </td>
<td align="right">115,316</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">811</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">116,094</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Bonds of multi-lateral government agencies
</div></td>
<td> </td>
<td> </td>
<td align="right">26,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">260</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,819</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right">1,115,062</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,674</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,129,705</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other marketable equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">2,773</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,047</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total short-term investments
</div></td>
<td> </td>
<td> </td>
<td align="right">1,117,835</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,948</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,132,752</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total cash, cash equivalents and short-term investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,004,278</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,955</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,019,202</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>See Note 4 for
further information regarding the fair value of our financial instruments</i>.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the fair value and gross unrealized losses related to
available-for-sale securities, aggregated by investment category and length of time that individual
securities have been in a continuous unrealized loss position, at November 27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less Than 12 Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
treasury notes and agency
bonds
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,179</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">11,179</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Government guaranteed bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,041</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5,041</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,220</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">16,220</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, there were no securities in a continuous unrealized loss position for
more than twelve months. There were 4 securities that were in an unrealized loss position at
November 27, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the fair value and gross unrealized losses related to
available-for-sale securities, aggregated by investment category and length of time that individual
securities have been in a continuous unrealized loss position, at November 28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less Than 12 Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">37,400</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">37,400</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">67,606</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(997</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">67,606</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(997</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Obligations of foreign governments
</div></td>
<td> </td>
<td> </td>
<td align="right">28,033</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">28,033</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">133,039</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">133,039</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 28, 2008, there were no securities in a continuous unrealized loss position for
more than twelve months. There were 33 securities that were in an unrealized loss position at
November 28, 2008.
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the cost and estimated fair value of debt securities classified
as short-term investments based on stated maturities as of November 27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Due within one year
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">385,828</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">387,572</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Due within two years
</div></td>
<td> </td>
<td> </td>
<td align="right">246,169</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">249,882</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Due within three years
</div></td>
<td> </td>
<td> </td>
<td align="right">214,108</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218,621</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Due after three years
</div></td>
<td> </td>
<td> </td>
<td align="right">41,607</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">43,884</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">887,712</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">899,959</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We review our debt and marketable equity securities classified as short-term investments on a
regular basis to evaluate whether or not any security has experienced an other-than-temporary
decline in fair value. We consider factors such as the length of time and extent to which the
market value has been less than the cost, the financial condition and near-term prospects of the
issuer and our intent to sell, or whether it is more likely than not we will be required to sell,
the investment before recovery of the investment’s amortized cost basis. If we believe that an
other-than-temporary decline exists in one of these securities, we write down these investments to
fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to
interest and other income, net in our Consolidated Statements of Income.
Any portion not
related to credit loss would be recorded to accumulated other comprehensive income, which is
reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets.
For equity securities, the write-down would be recorded to investment gains (losses), net in our Consolidated Statements of Income.
As
of November 27, 2009, we do not consider any of our investments to be other-than-temporarily
impaired.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 4 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 4. FAIR VALUE MEASUREMENTS</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We measure certain financial assets and liabilities at fair value on a recurring basis. The
fair value of these financial assets and liabilities was determined using the following inputs at
November 27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted Prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Active Markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unobservable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Identical Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Inputs</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market funds and overnight deposits<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">924,378</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">924,378</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Fixed income available-for-sale securities<sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">899,960</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">899,960</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Available-for-sale equity securities<sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">5,026</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,026</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,829,364</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">929,404</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">899,960</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Investments of limited partnership<sup style="font-size: 85%; vertical-align: text-top">(4)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">37,121</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,121</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency derivatives<sup style="font-size: 85%; vertical-align: text-top">(5)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">4,307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,307</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred compensation plan assets<sup style="font-size: 85%; vertical-align: text-top">(4)</sup>:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market funds
</div></td>
<td> </td>
<td> </td>
<td align="right">717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Equity and fixed income mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">8,328</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,328</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal for deferred compensation plan assets
</div></td>
<td> </td>
<td> </td>
<td align="right">9,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,328</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">50,473</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">717</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,635</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">37,121</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,879,837</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">930,121</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">912,595</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">37,121</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency derivatives<sup style="font-size: 85%; vertical-align: text-top">(6)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,589</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of these financial assets and liabilities was determined using the following
inputs at November 28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Fair Value Measurements at Reporting Date Using</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Quoted Prices in</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Significant</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Active Markets for</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Observable</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unobservable</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Identical Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Inputs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Inputs</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 1)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 2)</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Level 3)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Money market funds and overnight deposits<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">722,742</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">722,742</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Fixed income available-for-sale securities<sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">1,175,732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,175,732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Available-for-sale equity securities<sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">3,047</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,047</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">1,901,521</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">725,789</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,175,732</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Investments of limited partnership<sup style="font-size: 85%; vertical-align: text-top">(4)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">39,004</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">251</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38,753</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency derivatives<sup style="font-size: 85%; vertical-align: text-top">(5)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">49,848</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49,848</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred compensation plan assets<sup style="font-size: 85%; vertical-align: text-top">(4)</sup>:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market funds
</div></td>
<td> </td>
<td> </td>
<td align="right">704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Equity and fixed income mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">6,856</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,856</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal for deferred compensation plan assets
</div></td>
<td> </td>
<td> </td>
<td align="right">7,560</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,856</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total non-current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">96,412</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">955</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,704</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38,753</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,997,933</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">726,744</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,232,436</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">38,753</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency derivatives<sup style="font-size: 85%; vertical-align: text-top">(6)</sup>
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,739</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,739</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,739</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,739</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Included in cash and cash equivalents on our Consolidated Balance Sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Included in either cash and cash equivalents or short-term investments on our
Consolidated Balance Sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>Included in short-term investments on our Consolidated Balance Sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td>Included in other assets on our Consolidated Balance Sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(5)</sup></td>
<td> </td>
<td>Included in prepaid expenses and other current assets on our Consolidated Balance
Sheets.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(6)</sup></td>
<td> </td>
<td>Included in accrued expenses on our Consolidated Balance Sheets.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>See Note 3 for further information regarding
the fair value of our financial instruments.</i>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The investments of limited partnership relate to our interest in Adobe Ventures IV L.P.
(“Adobe Ventures”), which are
consolidated in our Consolidated Financial Statements. The Level 1 investments of limited
partnership relate to investments in publicly-traded companies and the Level 3 investments consist
of investments in privately-held companies. These investments are remeasured at fair value each
period with any gains or losses recognized in investment gains (losses), net in our Consolidated
Statements of Income. We estimated fair value of the Level 3 investments by considering available
information such as pricing in recent rounds of financing, current cash positions, earnings and
cash flow forecasts, recent operational performance and any other readily available market data.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A reconciliation of the beginning and ending balances for investments of limited partnership
using significant unobservable inputs (Level 3) as of November 27, 2009 and November 28, 2008 was
as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of November 30, 2007
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">30,647</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases and sales of investments, net
</div></td>
<td> </td>
<td> </td>
<td align="right">363</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized net investment gains included in earnings
</div></td>
<td> </td>
<td> </td>
<td align="right">7,743</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of November 28, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">38,753</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases and sales of investments, net
</div></td>
<td> </td>
<td> </td>
<td align="right">1,921</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrealized net investment losses included in earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,553</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Balance as of November 27, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">37,121</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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-down the investment to its fair value. We
estimated fair value of our cost method investments considering available information such as
pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts,
recent operational performance and any other readily available market data. During fiscal 2009, we
determined that certain of our cost method investments were other-than-temporarily impaired which
resulted in a charge of $13.9 million, included in investment gains (losses), net in our
Consolidated Statements of Income. The fair value of cost method investments that were impaired
was estimated using Level 3 inputs.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>See Note 8 for further information regarding our limited partnership interest in Adobe
Ventures and our cost method investments.</i>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 5 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 5. FINANCIAL INSTRUMENTS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Hedge Accounting</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize derivative instruments and hedging activities as either assets or liabilities in
our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from
changes in fair value are accounted for depending on the use of the derivative and whether it is
designated and qualifies for hedge accounting.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Economic Hedging—Hedges of Forecasted Transactions</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In countries outside the U.S., we transact business in U.S. dollars and in various other
currencies. In Europe and Japan, transactions that are denominated in Euro and Yen are subject to
exposure from movements in exchange rates. We may use foreign exchange option contracts or forward
contracts to hedge certain operational (“cash flow”) exposures resulting from changes in foreign
currency exchange rates. These foreign exchange contracts, carried at fair value, may have
maturities between one and twelve months. The maximum original duration of any contract is twelve
months. We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign
currency denominated revenue in the normal course of business and accordingly, they are not
speculative in nature.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     To receive hedge accounting treatment, all hedging relationships are formally documented at
the inception of the hedge, and the hedges must be highly effective in offsetting changes to future
cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow
hedges in accumulated other comprehensive income in our Consolidated Balance Sheets, until the
forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related
gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction
does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on
the related cash flow hedge from accumulated other comprehensive income to interest and other
income, net in our Consolidated Statements of Income at that time. For fiscal 2009, 2008 and 2007
there were no such gains or losses recognized in interest and other income, net relating to hedges
of forecasted transactions that did not occur.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We evaluate hedge effectiveness at the inception of the hedge prospectively as well as
retrospectively and record any ineffective portion of the hedging instruments in interest and other
income, net on our Consolidated Statements of Income. The net gain (loss) recognized in interest
and other income, net for cash flow hedges due to hedge ineffectiveness was insignificant for
fiscal 2009, 2008 and 2007. The time value of purchased derivative instruments is recorded in
interest and other income, net in our Consolidated Statements of Income.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     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 2009 was
as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Foreign</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Foreign</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exchange</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exchange</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Option</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Forward</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Contracts</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Contracts</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives in cash flow hedging relationships:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net gain (loss) recognized in OCI, net of tax<sup style="font-size: 85%; vertical-align: text-top">(1)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(14,618</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net gain (loss) reclassified from accumulated OCI into
income, net of tax<sup style="font-size: 85%; vertical-align: text-top">(2)</sup>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">27,138</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net gain (loss) recognized in income<sup style="font-size: 85%; vertical-align: text-top">(3)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(18,027</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging relationships:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net gain (loss) recognized in income<sup style="font-size: 85%; vertical-align: text-top">(4)</sup>
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(14,407</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Net change in the fair value of the effective portion classified in other
comprehensive income (“OCI”).</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Effective portion classified as revenue.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(3)</sup></td>
<td> </td>
<td>Ineffective portion and amount excluded from effectiveness testing classified in
interest and other income, net.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(4)</sup></td>
<td> </td>
<td>Classified in interest and other income, net.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Balance Sheet Hedging — Hedging of Foreign Currency Assets and Liabilities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We also hedge our net recognized foreign currency assets and liabilities with foreign exchange
forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by
changes in exchange rates. These derivative instruments hedge assets and liabilities that are
denominated in foreign currencies and are carried at fair value with changes in the fair value
recorded to interest and other income, net in our Consolidated Statements of Income. These
derivative instruments do not subject us to material balance sheet risk due to exchange rate
movements because gains and losses on these derivatives are intended to offset gains and losses on
the assets and liabilities being hedged. As of November 27, 2009, total notional amounts of
outstanding contracts were $154.9 million which included the notional equivalent of $87.6 million
in Euro, $22.9 million in Yen and $44.4 million in other foreign currencies. At November 27, 2009,
the outstanding balance sheet hedging derivatives had maturities of 90 days or less.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of derivative instruments in our Consolidated Balance Sheets as of November 27,
2009 were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="2%"> </td>
<td width="23%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
<td width="15%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>Fair Values of Derivative Instruments</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Asset Derivatives</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="4" style="border-bottom: 1px solid #000000"><b>Liability Derivatives</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Balance Sheet</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center"><b>Balance Sheet</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives designated as hedging instruments:
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange option contracts<sup style="font-size: 85%; vertical-align: text-top">(*)</sup>
</div></td>
<td> </td>
<td align="center" valign="bottom">Prepaid expense and other current assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">4,175</td>
<td> </td>
<td> </td>
<td align="center" valign="bottom">Accrued expenses</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives not designated as hedging instruments:
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange forward contracts
</div></td>
<td> </td>
<td align="center" valign="bottom">Prepaid expense and other current assets</td>
<td> </td>
<td> </td>
<td align="right">132</td>
<td> </td>
<td> </td>
<td align="center" valign="bottom">Accrued expenses</td>
<td> </td>
<td> </td>
<td align="right">1,589</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total derivatives
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,307</td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,589</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td align="left" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Hedging effectiveness expected to be recognized to income within the next twelve months.</td>
</tr>
</table>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Net gains (losses) recognized in interest and other income, net relating to balance sheet
hedging for fiscal 2009, 2008 and 2007 were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gain (loss) on foreign currency assets and liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net realized gain (loss) recognized in other income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">25,384</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,738</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">13,388</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net unrealized (loss) gain recognized in other income related
to instruments outstanding
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,390</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5,223</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,035</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">18,994</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,515</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,353</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">(Loss) gain on hedges of foreign currency assets and liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Net realized loss recognized in other income
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,872</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,255</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,394</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net unrealized (loss) gain recognized in other income
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,535</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3,920</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,887</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,407</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">665</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,507</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Net gain (loss) recognized in other income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,587</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,850</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,846</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Concentration of Risk</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Financial instruments that potentially subject us to concentrations of credit risk are
short-term investments, primarily fixed-income securities, structured repurchase transactions,
derivatives, hedging foreign currency and interest rate risk and trade receivables.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our investment portfolio consists of investment-grade securities diversified among security
types, industries and issuers. Our cash and investments are held and managed by recognized
financial institutions that follow our investment policy. Our policy limits the amount of credit
exposure to any one security issue or issuer and we believe no significant concentration of credit
risk exists with respect to these investments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We mitigate concentration of risk related to foreign currency hedges through a policy that
establishes counterparty limits. The bank counterparties in these contracts expose us to
credit-related losses in the event of their nonperformance. However, to mitigate that risk, we only
contract with counterparties who meet our minimum requirements under our counterparty risk
assessment process. In addition, our hedging policy establishes maximum limits for each
counterparty. We monitor ratings, credit spreads and potential downgrades on at least a quarterly
basis. Based on our on-going assessment of counterparty risk, we will adjust our exposure to
various counterparties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The aggregate fair value of derivative instruments in net asset positions as of November 27,
2009 was $4.3 million. This amount represents the maximum exposure to loss at the reporting date as
a result of all of the counterparties failing to perform as contracted. This exposure could be
reduced by up to $1.6 million of liabilities included in master netting arrangements with those
same counterparties.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and
software products to the retail market, and to customers to whom we license software directly. A
credit review is completed for our new distributors, dealers and OEMs. We also perform ongoing
credit evaluations of our customers’ financial condition and require letters of credit or other
guarantees, whenever deemed necessary. The credit limit given to the customer is based on our risk
assessment of their ability to pay, country risk and other factors and is not contingent on the
resale of the product or on the collection of payments from their customers. We also purchase
credit insurance to mitigate credit risk in some foreign markets where we believe it is warranted.
If we license our software to a customer where we have a reason to believe the customer’s ability
to pay is not probable, due to country risk or credit risk, we will not recognize the revenue. We
will revert to recognizing the revenue on a cash basis, assuming all other criteria for revenue
recognition has been met. <i>See Note 20 for information regarding our significant customers.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We derive a significant portion of our OEM PostScript and Other licensing revenue from a small
number of OEMs. Our OEMs on occasion seek to renegotiate their royalty arrangements. We evaluate
these requests on a case-by-case basis. If an agreement is not reached, a customer may decide to
pursue other options, which could result in lower licensing revenue for us.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 6 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 6. PROPERTY AND EQUIPMENT</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Property and equipment, net consisted of the following as of November 27, 2009 and November
28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Computers and equipment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">409,595</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">331,235</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture and fixtures
</div></td>
<td> </td>
<td> </td>
<td align="right">62,786</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">56,253</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Capital projects in-progress
</div></td>
<td> </td>
<td> </td>
<td align="right">19,931</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,273</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">152,200</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">133,571</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td> </td>
<td align="right">86,493</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74,835</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings
</div></td>
<td> </td>
<td> </td>
<td align="right">99,845</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">62,464</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td> </td>
<td align="right">830,850</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">665,631</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less accumulated depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(442,718</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(352,594</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Property and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">388,132</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">313,037</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Depreciation and amortization expense of property and equipment for fiscal 2009, 2008 and 2007
was $95.9 million, $83.3 million and $73.2 million, respectively.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 7 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 7. GOODWILL AND PURCHASED AND OTHER INTANGIBLES</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill by reportable segment, as of November 27, 2009 was as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Acquisitions</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Other</b><sup style="font-size: 85%; vertical-align: text-top"><b>(*)</b></sup></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Creative Solutions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">956,011</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">253,463</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,126</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,210,600</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Knowledge Worker
</div></td>
<td> </td>
<td> </td>
<td align="right">408,318</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,255</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">410,573</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Enterprise
</div></td>
<td> </td>
<td> </td>
<td align="right">298,039</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,310</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">293,729</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Platform
</div></td>
<td> </td>
<td> </td>
<td align="right">265,518</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(398</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">265,120</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Print and Publishing
</div></td>
<td> </td>
<td> </td>
<td align="right">206,844</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(311</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">206,533</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Omniture
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,108,034</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,108,034</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,134,730</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,361,497</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,638</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,494,589</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Includes net reductions in goodwill of $5.2 million for tax related obligations
associated with our acquisitions of Macromedia and Accelio in addition to a facility lease
obligation adjustment of $1.7 million related to Macromedia, offset in part by foreign
currency translation adjustments and other individually insignificant tax items.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>See Note 2 for further information regarding our acquisitions.</i>
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Purchased and other intangible assets, net by reportable segment as of November 27, 2009 and
November 28, 2008 were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Creative Solutions
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">124,178</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">107,526</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Knowledge Worker
</div></td>
<td> </td>
<td> </td>
<td align="right">23,041</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48,851</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Enterprise
</div></td>
<td> </td>
<td> </td>
<td align="right">6,588</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13,146</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Platform
</div></td>
<td> </td>
<td> </td>
<td align="right">9,159</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,248</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Print and Publishing
</div></td>
<td> </td>
<td> </td>
<td align="right">6,218</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,189</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Omniture
</div></td>
<td> </td>
<td> </td>
<td align="right">358,204</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchased and other intangible assets, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">527,388</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">214,960</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Purchased and other intangible assets subject to amortization as of November 27, 2009 were as
follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Net</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchased technology
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">586,952</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(387,731</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">199,221</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Localization
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">20,284</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(15,222</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,062</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">172,030</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(104,953</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">67,077</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">363,922</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(159,450</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">204,472</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">54,535</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,979</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">51,556</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total other intangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">610,771</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(282,604</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">328,167</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchased and other intangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,197,723</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(670,335</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">527,388</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Purchased and other intangible assets subject to amortization as of November 28, 2008 were as
follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Accumulated</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Net</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchased technology
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">411,408</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(338,608</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">72,800</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Localization
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">23,751</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,156</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">17,595</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">130,925</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(78,181</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">52,744</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">198,891</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(127,520</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">71,371</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">800</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(350</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">450</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total other intangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">354,367</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(212,207</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">142,160</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Purchased and other intangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">765,775</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(550,815</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">214,960</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Amortization expense related to purchased and other intangible assets was $151.3 million,
$184.4 million and $216.3 million for fiscal 2009, 2008 and 2007, respectively. Of these amounts,
for fiscal 2009, 2008 and 2007, $88.3 million, $116.1 million and $145.4 million, respectively, was
included in cost of sales.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Purchased and other intangible assets are amortized over their estimated useful lives of 1 to
13 years. As of November 27, 2009, we expect amortization expense in future periods to be as
follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Purchased</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other Intangible</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><u><b>Fiscal Year</b></u></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Technology</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Assets</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">35,830</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">100,403</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">32,446</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,494</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2012
</div></td>
<td> </td>
<td> </td>
<td align="right">30,840</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22,068</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2013
</div></td>
<td> </td>
<td> </td>
<td align="right">26,867</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,447</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2014
</div></td>
<td> </td>
<td> </td>
<td align="right">25,110</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,046</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Thereafter
</div></td>
<td> </td>
<td> </td>
<td align="right">48,128</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104,709</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total expected amortization expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">199,221</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">328,167</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 8 - adbe:OtherAssetsNonCurrentTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 8. OTHER ASSETS</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other assets as of November 27, 2009 and November 28, 2008 consisted of the following (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquired rights to use technology
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">84,313</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">90,643</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Investments
</div></td>
<td> </td>
<td> </td>
<td align="right">63,526</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">76,589</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Security and other deposits
</div></td>
<td> </td>
<td> </td>
<td align="right">11,692</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">16,087</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid royalties
</div></td>
<td> </td>
<td> </td>
<td align="right">12,059</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,026</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred compensation plan assets
</div></td>
<td> </td>
<td> </td>
<td align="right">9,045</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,560</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted cash
</div></td>
<td> </td>
<td> </td>
<td align="right">4,650</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,361</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid land lease
</div></td>
<td> </td>
<td> </td>
<td align="right">3,209</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,185</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Prepaid rent
</div></td>
<td> </td>
<td> </td>
<td align="right">1,377</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,658</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1,394</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,420</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">191,265</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">216,529</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Acquired rights to use technology purchased during fiscal 2009 and fiscal 2008 was $6.0
million and $100.4 million, respectively. Of the cost for fiscal 2008, an estimated $56.4 million
was related to future licensing rights and has been capitalized and is being amortized on a
straight-line basis over the estimated useful lives up to fifteen years. Of the remaining costs for
fiscal 2008, we estimated that $27.2 million was related to historical use of licensing rights
which was expensed as cost of sales and the residual of $16.8 million for fiscal 2008 was expensed
as general and administrative costs. In connection with these licensing arrangements, we have the
ability to acquire additional rights to use technology in the future. <i>See Note 17 for further
information regarding our contractual commitments.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In general, acquired rights to use technology are amortized over their estimated useful lives
of 3 to 15 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Included in investments are our indirect investments through our limited partnership interest
in Adobe Ventures of approximately $37.1 million and $39.0 million as of November 27, 2009 and
November 28, 2008, respectively, which is consolidated in accordance with the provisions for
consolidating variable interest entities. The partnership is controlled by Granite Ventures, an
independent venture capital firm and sole general partner of Adobe Ventures. We are the primary
beneficiary of Adobe Ventures and bear virtually all of the risks and rewards related to our
ownership<i>. </i>Our investment in Adobe Ventures does not have a significant impact on our consolidated
financial position, results of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Adobe Ventures carries its investments in equity securities at estimated fair value and
investment gains and losses are included in our Consolidated Statements of Income. Substantially
all of the investments held by Adobe Ventures at November 27, 2009 and November 28, 2008 are not
publicly traded and, therefore, there is no established market for these securities. In order to
determine the fair value of these investments, we use the most recent round of financing involving
new non-strategic investors or estimates of current market value made by Granite Ventures. It is
our policy to evaluate the fair value of these investments held by Adobe Ventures, as well as our
direct investments, on a regular basis. This evaluation includes, but is not limited to, reviewing
each company’s cash position, financing needs, earnings and revenue outlook, operational
performance, management and ownership changes and competition. In the case of privately-held
companies, this evaluation is based on information that we request from these companies. This
information 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 the accuracy of the data
received from these companies. See <i>Note 4 for further information regarding Adobe Ventures.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Also included in investments are our direct investments in privately-held companies of
approximately $26.4 million and $37.6 million as of November 27, 2009 and November 28, 2008,
respectively, which are accounted for based on the cost method. We assess these investments for
impairment in value as circumstances dictate. <i>See Note 4 for further information regarding our cost
method investments.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We entered into a Purchase and Sale Agreement, effective May 12, 2008, for the acquisition of
real property located in Waltham, Massachusetts. We purchased the property upon completion of
construction of an office building shell and core, parking structure, and site improvements. The
purchase price for the property was $44.7 million and closed on June 16, 2009. We made an initial
deposit of $7.0 million which was included in security and other deposits as of November 28, 2008
and the remaining balance was paid at closing. This deposit was held in escrow until closing and
then applied to the purchase price.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other assets include the fair value, at inception, of the residual value guarantee associated
with our leases on the buildings we occupy as part of our corporate headquarters. The lease
agreements for our corporate headquarters provide for residual value guarantees. The fair value of
a residual value guarantee in lease agreements entered into after December 31, 2002, must be
recognized as a liability on our Consolidated Balance Sheets. As such, we recognized $5.2 million
and $3.0 million in liabilities, related to the extended East and West Towers and Almaden Tower
leases, respectively. These liabilities are recorded in other long-term liabilities with the
offsetting entry recorded as prepaid rent in other assets. The balance is being amortized to the
Consolidated Statements of Income over the life of the leases. As of November 27, 2009 and November
28, 2008, the unamortized portion of the fair value of the residual value guarantees remaining in
other long-term liabilities and prepaid rent was $1.3 million and $2.6 million, respectively.
</div>
</div>
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<!-- Begin Block Tagged Note 9 - adbe:AccruedExpensesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 9. ACCRUED EXPENSES</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued expenses as of November 27, 2009 and November 28, 2008 consisted of the following (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued compensation and benefits
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">164,352</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">177,760</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Taxes payable
</div></td>
<td> </td>
<td> </td>
<td align="right">11,879</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,760</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Sales and marketing allowances
</div></td>
<td> </td>
<td> </td>
<td align="right">32,774</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,127</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">210,641</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">172,322</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Accrued expenses
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">419,646</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">399,969</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Other primarily includes general corporate accruals for corporate marketing programs, local
and regional expenses, and technical support. Other is also comprised of deferred rent related to
office locations with rent escalations, accrued royalties, foreign currency derivatives and accrued
interest on the credit facility.
</div>
</div>
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<!-- Begin Block Tagged Note 10 - us-gaap:IncomeTaxDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 10. INCOME TAXES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Income before income taxes includes income from foreign operations of $422.4 million, $740.3
million and $453.2 million for fiscal 2009, 2008 and 2007, respectively.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The provision for income taxes for fiscal 2009, 2008 and 2007 consisted of the following (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b><sup style="font-size: 85%; vertical-align: text-top"><b>(*)</b></sup></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States federal
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">152,840</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24,179</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">36,614</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td> </td>
<td align="right">36,794</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27,680</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55,536</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">State and local
</div></td>
<td> </td>
<td> </td>
<td align="right">25,427</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,972</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,100</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total current
</div></td>
<td> </td>
<td> </td>
<td align="right">215,061</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58,831</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96,250</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">United States federal
</div></td>
<td> </td>
<td> </td>
<td align="right">50,376</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">41,678</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,640</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign
</div></td>
<td> </td>
<td> </td>
<td align="right">559</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,693</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,480</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">State and local
</div></td>
<td> </td>
<td> </td>
<td align="right">4,635</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25,518</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,007</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total deferred
</div></td>
<td> </td>
<td> </td>
<td align="right">55,570</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57,503</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60,167</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax expense attributable to employee stock plans
</div></td>
<td> </td>
<td> </td>
<td align="right">44,381</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90,360</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66,966</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Provision for income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">315,012</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">206,694</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">223,383</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Certain employee stock plan benefits in fiscal 2007 associated with the acquisition
of Macromedia reduced goodwill. <i>See Note 7 for further information regarding our goodwill</i>.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total income tax expense differs from the expected tax expense (computed by multiplying the
U.S. federal statutory rate of 35% by income before income taxes) as a result of the following (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Computed “expected” tax expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">245,532</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">377,478</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">331,516</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State tax expense, net of federal benefit
</div></td>
<td> </td>
<td> </td>
<td align="right">7,799</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,700</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,938</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax-exempt income
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(342</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,123</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax credits
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,127</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,873</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(23,341</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Differences between statutory rate and foreign effective tax rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(91,262</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(132,470</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(84,740</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Change in deferred tax asset valuation allowance
</div></td>
<td> </td>
<td> </td>
<td align="right">2,759</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,105</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,694</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock-based compensation (net of tax deduction)
</div></td>
<td> </td>
<td> </td>
<td align="right">6,085</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,457</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,587</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Resolution of U.S. income tax exam for fiscal 2001 - 2004 years
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(20,712</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign tax refund for fiscal 2000 - 2002
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16,351</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Domestic manufacturing deduction benefit
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7,525</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,300</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,419</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Tax charge for licensing Omniture’s technology to foreign
subsidiaries
</div></td>
<td> </td>
<td> </td>
<td align="right">161,701</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other, net
</div></td>
<td> </td>
<td> </td>
<td align="right">4,050</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,212</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,271</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Provision for income taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">315,012</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">206,694</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">223,383</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Deferred Tax Assets and Liabilities</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The tax effects of the temporary differences that gave rise to significant portions of the
deferred tax assets and liabilities as of November 28, 2008 and November 27, 2009 are presented
below (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Acquired technology
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">937</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,497</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Reserves and accruals
</div></td>
<td> </td>
<td> </td>
<td align="right">68,472</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71,174</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Deferred revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">17,441</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">46,200</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized losses on investments
</div></td>
<td> </td>
<td> </td>
<td align="right">15,263</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,350</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock-based compensation
</div></td>
<td> </td>
<td> </td>
<td align="right">56,541</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">50,329</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net operating loss of acquired companies
</div></td>
<td> </td>
<td> </td>
<td align="right">56,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,621</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Credits
</div></td>
<td> </td>
<td> </td>
<td align="right">12,205</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19,130</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Capitalized expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">5,701</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,688</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">11,603</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,538</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total gross deferred tax assets
</div></td>
<td> </td>
<td> </td>
<td align="right">244,301</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">218,527</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Deferred tax asset valuation allowance
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(4,283</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,524</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total deferred tax assets
</div></td>
<td> </td>
<td> </td>
<td align="right">240,018</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">217,003</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(11,975</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,113</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Undistributed earnings of foreign subsidiaries
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(210,619</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(167,760</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Acquired intangible assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(192,493</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(52,745</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total deferred tax liabilities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(415,087</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(223,618</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net deferred tax (liabilities) assets
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(175,069</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,615</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The deferred tax assets and liabilities for fiscal 2009 and fiscal 2008 include amounts
related to various acquisitions. The total change in deferred tax assets and liabilities in fiscal
2009 includes changes that are recorded to other comprehensive income, additional paid-in capital,
goodwill and retained earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We provide U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries’
earnings are considered permanently reinvested outside the U.S. To the extent that the foreign
earnings previously treated as permanently reinvested are repatriated, the related U.S. tax
liability may be reduced by any foreign income taxes paid on these earnings. As of November 27,
2009, the cumulative amount of earnings upon which U.S. income taxes have not been provided is
approximately $1.5 billion. The unrecognized deferred tax liability for these earnings is
approximately $420.9 million.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, we have net operating loss carryforward assets of approximately
$135.0 million for federal, $56.2 million for state and $1.6 million related to foreign net
operating losses. We also have federal and state tax credit carryforwards of approximately $2.9
million and $13.8 million, respectively. The net operating loss carryforward assets, federal tax
credits and foreign tax credits will expire in various years from fiscal 2014 through 2029. The
state tax credit carryforwards can be carried forward indefinitely. The net operating loss
carryforward assets and certain credits are subject to an annual limitation under Internal Revenue
Code Section 382, but are expected to be fully realized.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
addition, we have been tracking certain deferred tax attributes of
$82.8 million which have
not been recorded in the financial statements pursuant to accounting standards related to
stock-based compensation. These amounts are no longer included in our gross or net deferred tax
assets. Pursuant to these standards, the benefit of these deferred tax assets will be recorded to
equity when they reduce taxes payable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     A valuation allowance has been established for certain deferred tax assets related to the
impairment of investments. At the end of fiscal 2009, our valuation allowance was $4.3 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Accounting for Uncertainty in Income Taxes</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On December 1, 2007, we adopted new standards related to how tax benefits for uncertain tax
positions are to be recognized, measured, and derecognized in the financial statements. These
standards also specify how liabilities for uncertain tax positions should be classified on the
balance sheet. The adoption of these standards resulted in an increase of $3.9 million to both
assets and unrecognized tax benefits in our Consolidated Balance Sheets as of the beginning of
fiscal 2008. Upon adoption, the gross liability for unrecognized tax benefits at December 1, 2007
was $218.4 million, exclusive of interest and penalties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Prior to the adoption of this new accounting standard, we presented our estimated liability
for unrecognized tax benefits as a current liability. These new standards require liabilities for
unrecognized tax benefits to be classified based on whether a payment is expected to be made within
the next 12 months. That is, amounts expected to be paid within the next 12 months are to be
classified as a current liability and all other amounts are to be classified as a non-current
liability. As a result of adopting these standards, we reclassified $197.7 million from current
income taxes payable to long-term income taxes payable, including accrued interest in our
Consolidated Balance Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Prior to the adoption of this new accounting standard, we presented our estimated state, local
and interest liabilities net of the estimated benefit we expect to receive from deducting such
payments on future tax returns (i.e., on a “net” basis). These standards require this estimated
benefit to be classified as a deferred tax asset instead of a reduction of the overall liability
(i.e., on a “gross” basis). Accordingly, we recognized additional deferred income tax assets of
$3.9 million to present the unrecognized tax benefits as gross amounts in our Consolidated Balance
Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We classify interest and penalties on unrecognized tax benefits as income tax expense. As of
December 1, 2007, the combined amount of accrued interest and penalties related to tax positions
taken on our tax returns and included in non-current income taxes payable was approximately $42.8
million.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2009 and 2008, our aggregate changes in our total gross amount of unrecognized
tax benefits are summarized as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">139,549</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">201,808</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross increases in unrecognized tax benefits — prior year tax positions
</div></td>
<td> </td>
<td> </td>
<td align="right">43,173</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,009</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross increases in unrecognized tax benefits — current year tax positions
</div></td>
<td> </td>
<td> </td>
<td align="right">42,422</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,350</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Settlements with taxing authorities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(429</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(81,213</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Lapse of statute of limitations
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(12,585</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,512</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange gains and losses
</div></td>
<td> </td>
<td> </td>
<td align="right">5,910</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,893</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">218,040</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">139,549</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, the combined amount of accrued interest and penalties related to tax
positions taken on our tax returns and included in non-current income taxes payable was
approximately $16.6 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We file income tax returns in the U.S. on a federal basis and in many U.S. state and foreign
jurisdictions. We are subject to the continual examination of our income tax returns by the IRS and
other domestic and foreign tax authorities. Our major
tax jurisdictions are the U.S., Ireland and California. For California, Ireland and the U.S., the
earliest fiscal years open for examination are 2001, 2004 and 2005, respectively. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from
the current examination. We believe such estimates to be reasonable; however, there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The timing of the resolution of income tax examinations is highly uncertain as are the amounts
and timing of tax payments that are part of any audit settlement process. These events could cause
large fluctuations in the balance sheet classification of current and non-current assets and
liabilities. The Company believes that before the end of fiscal 2010, it is reasonably possible
that either certain audits will conclude or statutes of limitations on certain income tax
examination periods will expire, or both. Given the uncertainties described above, we can only
determine a range of estimated potential decreases in underlying unrecognized tax benefits equal to
$0 to approximately $10 million. These amounts would decrease income tax expense under current
GAAP related to income taxes and as a result of our adoption of new accounting standards related to
business combinations in fiscal 2010 (<i>see Note 1</i>). Under the new guidance related to business
combinations, adjustments to acquired income tax liabilities (including adjustments for
acquisitions completed prior to the effective date) that are recorded subsequent to the acquisition
date will be recognized in income from continuing operations, with certain exceptions, if such
changes occur after the measurement period.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 11 - adbe:RestructuringChargesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 11. RESTRUCTURING</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>2009 Restructuring Plan Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On November 10, 2009, we initiated a restructuring plan to appropriately align our costs in
connection with our fiscal 2010 operating plan impacting up to approximately 630 full-time positions
worldwide. In connection with this restructuring plan, in the fourth quarter of fiscal 2009, we
recorded restructuring charges of approximately $25.5 million related to ongoing termination
benefits for the elimination of approximately 340 of these full-time positions worldwide. As of
November 27, 2009, approximately $2.5 million was paid. The remaining accrual associated with these
ongoing termination benefits is expected to be paid during fiscal 2010. The restructuring activities related to this program affect only those employees that were
associated with Adobe prior to the acquisition of Omniture, Inc. on October 23, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning in the first quarter of fiscal 2010, we expect to incur up to approximately $18 million related to the consolidation of leased facilities.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth a summary of Adobe restructuring activities during fiscal 2009
(in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Cash</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 27,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Incurred</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Termination benefits
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25,521</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2,537</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">22,984</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued restructuring charges of approximately $23.0 million at November 27, 2009 is recorded
in accrued restructuring, current in our Consolidated Balance Sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Omniture Restructuring Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We completed our acquisition of Omniture on October 23, 2009. In the fourth quarter of fiscal
2009, we initiated a plan to restructure the pre-merger operations of Omniture to eliminate certain
duplicative activities, focus our resources on future growth opportunities and reduce our cost
structure. In connection with this restructuring plan, we accrued a total of approximately $10.6
million in costs related to termination benefits for the elimination of approximately 100 regular
positions and for the closure of duplicative facilities. We also accrued approximately $0.2 million
in costs related to the cancellation of certain contracts associated with the wind-down of
subsidiaries and other service contracts held by Omniture. Restructuring charges related to the
Omniture acquisition were recorded as a part of the purchase price allocation, as discussed in <i>Note
2 </i>and have been accrued for as of November 27, 2009.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth a summary of preliminary restructuring activities during fiscal
2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Cash</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 27,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Recorded</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Termination benefits
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,704</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,712</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of closing
redundant facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,914</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,933</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Contract termination
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">242</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">242</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,860</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">27</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,887</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued restructuring charges of approximately $10.9 million at November 27, 2009 include $8.6
million recorded in accrued restructuring, current and $2.3 million related to long-term facilities
obligations recorded in accrued restructuring, non-current in our Consolidated Balance Sheets. We
expect to pay accrued termination benefits during fiscal 2010. We expect to pay facilities-related
liabilities through fiscal 2013. Included in the other adjustments column are foreign currency
translation adjustments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Additionally, approximately $1.5 million of restructuring costs related to facilities were
included in the liabilities assumed by us upon acquisition of Omniture on October 23, 2009 for
which subsequent payments of $0.1 million were made during the fourth quarter of fiscal 2009.
Restructuring costs related to these facilities were approximately $1.4 million at November 27,
2009 with $1.2 million recorded in accrued restructuring, current and $0.2 million related to
long-term facilities obligations recorded in accrued restructuring, non-current in our Consolidated
Balance Sheets. We expect to pay these facilities-related liabilities through fiscal 2013.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>2008 Restructuring Plan Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the fourth quarter of fiscal 2008, we initiated a restructuring program, consisting of
reductions in workforce of approximately 560 full-time positions globally and the consolidation of
facilities, in order to reduce our operating costs and focus our resources on key strategic
priorities. In connection with this restructuring program, we recorded restructuring charges in the
fourth quarter of fiscal 2008 totaling $29.2 million related to ongoing termination benefits for
the elimination of approximately 460 of the 560 full-time positions globally. As of November 28,
2008, $0.4 million was paid.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2009, we continued to implement restructuring activities under this program. We
vacated approximately 89,000 square feet of research and development and sales facilities in the
U.S., the United Kingdom and Canada. We accrued $8.5 million for the fair value of our future
contractual obligations under these operating leases using our credit-adjusted risk-free interest
rate, estimated at approximately 6% as of the date we ceased to use the leased properties. This
amount is net of the fair value of future estimated sublease income of approximately $4.4 million.
We also recorded additional charges of $6.7 million for termination benefits for the elimination of
substantially all of the remaining 100 full-time positions expected to be terminated.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">          The following table sets forth a summary of Adobe restructuring activities during fiscal
2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Cash</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 27,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Incurred</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Termination benefits
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28,759</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,722</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(34,191</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(233</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,057</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of closing
redundant facilities
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,514</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,380</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">248</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,382</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28,759</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,236</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(39,571</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">15</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,439</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued restructuring charges of approximately $4.4 million at November 27, 2009 include $1.9
million recorded in accrued restructuring, current and $2.5 million related to long-term facilities
obligations recorded in accrued restructuring, non-current in our Consolidated Balance Sheets.
Total costs incurred to date and expected to be incurred for closing redundant facilities are $44.5
million and $44.7 million, respectively. We have substantially paid all of the accrued termination
benefits during fiscal 2009. We expect to pay facilities-related liabilities through fiscal 2013.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Included in the other adjustments column are foreign currency translation adjustments of $0.6
million and small changes to previous estimates.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Macromedia Merger Restructuring Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We completed our acquisition of Macromedia on December 3, 2005. In connection with this
acquisition, we initiated plans to restructure both the pre-merger operations of Adobe and
Macromedia to eliminate certain duplicative activities, focus our resources on future growth
opportunities and reduce our cost structure. In connection with the worldwide restructuring plan,
we recognized costs related to termination benefits for employee positions that were eliminated and
for the closure of duplicative facilities. We also recognized costs related to the cancellation of
certain contracts associated with the wind-down of subsidiaries and other service contracts held by
Macromedia. Costs for termination benefits and contract terminations were completed during fiscal
2007. Total costs incurred were $27.0 million and $3.2 million, respectively.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth a summary of Macromedia restructuring activities during fiscal
2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Cash</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 27,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of closing redundant facilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">12,168</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6,675</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(487</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,006</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">977</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(889</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(80</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,145</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,564</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(567</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">5,014</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued restructuring charges of approximately $5.0 million at November 27, 2009 related to
facilities obligations include $3.1 million recorded in accrued restructuring, current and $1.9
million recorded in accrued restructuring, non-current in our Consolidated Balance Sheets. We
expect to pay these liabilities through fiscal 2012.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Included in the other adjustments column is a change to previous estimates of $0.6 million
offset in part by small foreign currency translation adjustments. Included in the change in
previous estimates of $0.6 million is an adjustment of $1.7 million associated with an accrual for
a leased facility that was included in the purchase price of Macromedia as an assumed liability.
During the third quarter of fiscal 2009, adjustments were made to the liability for this lease
facility that were recorded as a reduction to Macromedia goodwill. Accordingly, during fiscal 2009,
$1.1 million represents adjustments recorded as an increase to restructuring charges.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth a summary of Macromedia restructuring activities during
fiscal 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 30,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Cash</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>November 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Adjustments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cost of closing redundant
facilities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,283</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,187</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">3,072</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12,168</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1,435</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(147</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(311</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">977</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">17,718</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(7,334</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,761</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">13,145</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Accrued restructuring charges of
$13.1 million at November 28, 2008 includes $6.9 million recorded in accrued restructuring, current
and $6.2 million, related to long-term facilities obligations, recorded in accrued restructuring,
non-current in our Consolidated Balance Sheets.
Included in the other adjustments column is a change to previous estimates, recorded as a current
period expense, associated with closing redundant facilities as a result of the Macromedia
acquisition as well as the net effect of foreign currency changes.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 12. BENEFIT PLANS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Retirement Savings Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the
Internal Revenue Code, which
is a retirement savings plan covering substantially all of our U.S. employees, now referred to as
the Adobe 401(k) Retirement Savings Plan. Under the plan, eligible employees may contribute up to
65% of their pretax or after-tax salary, subject to the Internal Revenue Service annual
contribution limits. In fiscal 2009, we matched 50% of the first 6% of the employee’s eligible
compensation. We contributed $15.1 million, $16.6 million and $14.5 million in fiscal 2009, 2008
and 2007, respectively. We can terminate matching contributions at our discretion.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Profit Sharing Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have a profit sharing plan that provides for profit sharing payments to all eligible
employees following each quarter in which we achieve at least 75% of our budgeted earnings for the
quarter for fiscal 2009 and 80% of our budgeted earnings for the quarter for fiscal years 2008 and
2007. The plan, as well as the annual operating budget on which the plan is based, is approved by
our Board of Directors. We contributed $13.3 million, $73.8 million and $67.6 million to the plan
in fiscal 2009, 2008 and 2007, respectively. The profit sharing plan has been discontinued
effective for fiscal 2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Deferred Compensation Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On September 21, 2006, the Board of Directors approved the Adobe Systems Incorporated Deferred
Compensation Plan, effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred
Compensation Plan is an unfunded, non-qualified, deferred compensation arrangement under which
certain executives and members of the Board of Directors are able to defer a portion of their
annual compensation. Participants may elect to contribute up to 75% of their base salary and 100%
of other specified compensation, including commissions, bonuses, performance-based and time-based
restricted stock units, and directors’ fees. Participants are able to elect the payment of benefits
to begin on a specified date at least three years after the end of the plan year in which the
election is made in the form of a lump sum or annual installments over five, ten or fifteen years.
Upon termination of a participant’s employment with Adobe, such participant will receive a
distribution in the form of a lump sum payment. All distributions will be made in cash, except for
deferred performance-based and time-based restricted stock units which will be settled in stock. As
of November 27, 2009 and November 28, 2008, the invested amounts under the Deferred Compensation
Plan total $9.0 million and $7.6 million, respectively and were recorded as other assets on our
Consolidated Balance Sheets. As of November 27, 2009 and November 28, 2008, $9.0 million and $7.6
million, respectively, was recorded as long-term liabilities to recognize undistributed deferred
compensation due to employees.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 13. STOCK-BASED COMPENSATION</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have the following stock-based compensation plans and programs:
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Stock Option Plans</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our stock option program is a long-term retention program that is intended to attract, retain
and provide incentives for talented employees, officers and directors, and to align stockholder and
employee interests. Currently, we grant options from the (i) 2003 Equity Incentive Plan, as amended
(“2003 Plan”), and the 2005 Equity Incentive Assumption Plan (“2005 Assumption Plan”). These plans
are collectively referred to in the following discussion as “the Plans.” Under the Plans, options
can be granted to all employees, including executive officers, outside consultants and non-employee
directors. The Plans will continue until the earlier of (i) termination by the Board or (ii) the
date on which all of the shares available for issuance under the plan have been issued and
restrictions on issued shares have lapsed. Option vesting periods are generally four years for all
of the Plans. Options granted under the Plans generally expire seven years from the effective date
of grant.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, we had reserved 110.3 million and 4.0 million shares of common stock
for issuance under our 2003 Plan and 2005 Assumption Plan, respectively. As of November 27, 2009,
we had 42.7 million and 2.9 million shares available for grant under our 2003 Plan and 2005
Assumption Plan, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Employee Stock Purchase Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our 1997 Employee Stock Purchase Plan (“ESPP”) allows eligible employee participants to
purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of
a twenty-four month offering period with four six-month purchase periods in each offering period.
Employees purchase shares in each purchase period at 85% of the market value of our common stock at
either the beginning of the offering period or the end of the purchase period, whichever price is
lower. The ESPP will continue until the earlier of (i) termination by the Board or (ii) the date on
which all of the shares available for issuance under the plan have been issued.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, we had reserved 76.0 million shares of our common stock for issuance
under the ESPP and
approximately 12.3 million shares remain available for future issuance.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Restricted Stock Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We grant restricted stock awards and performance awards to officers and key employees under
our Amended 1994 Performance and Restricted Stock Plan (“Restricted Stock Plan”). We can also grant
restricted stock units to all eligible employees under the Restricted Stock Plan and the 2003 Plan.
Restricted stock awards issued under these plans vest annually over three years.
Performance awards and restricted stock units issued under these
plans generally vest over four years, the majority of which vest 25% annually;
certain other restricted stock units vest 50% on the second anniversary and 25% on each of
the third and fourth anniversaries.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, we had reserved 16.0 million shares of our common stock for issuance
under the Restricted Stock Plan and approximately 0.3 million shares were available for grant.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Performance Share Programs</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">          Effective January 26, 2009, the Executive Compensation Committee adopted the 2009 Performance
Share Program (the “2009 Program”). The purpose of the 2009 Program is to align key management and
senior leadership with stockholders’ interests and to retain key employees. The measurement period
for the 2009 Program is our fiscal 2009 year. All members of our executive management and other key
senior leaders are participating in the 2009 Program. Awards granted under the 2009 Program were
granted in the form of performance shares pursuant to the terms of our 2003 Equity Incentive Plan.
If pre-determined performance goals are met, shares of stock will be granted to the recipient, with
25% vesting on the later of the date of certification of achievement or the first anniversary date
of the grant, and the remaining 75% vesting evenly on the following three annual anniversary dates
of the grant, contingent upon the recipient’s continued service to Adobe. Participants in the 2009
Program have the ability to receive up to 115% of the target number of shares originally granted.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Issuance of Shares</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Upon exercise of stock options, vesting of restricted
stock and performance shares,
and purchases of shares under the ESPP,
we will
issue treasury stock. If treasury stock is not available, common stock will be issued. In order to
minimize the impact of on-going dilution from exercises of stock options and vesting of restricted
stock and performance shares, we instituted a stock repurchase program. <i>See Note 14 for information
regarding our stock repurchase programs.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Valuation of Stock-Based Compensation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Stock-based compensation cost is measured at the grant date based on the fair value of the
award. We currently use the Black-Scholes option pricing model to determine the fair value of stock
options and ESPP shares. The determination of the fair value of stock-based payment awards on the
date of grant using an option pricing model is affected by our stock price as well as assumptions
regarding a number of complex and subjective variables. These variables include our expected stock
price volatility over the expected term of the awards, actual and projected employee stock option
exercise behaviors, a risk-free interest rate and any expected dividends.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We estimate the expected term of options granted by calculating the average term from our
historical stock option exercise experience. We estimate the volatility of our common stock by
using implied volatility in market traded options. Our decision to use implied volatility was based
upon the availability of actively traded options on our common stock and our assessment that
implied volatility is more representative of future stock price trends than historical volatility.
We base the risk-free interest rate that we use in the option valuation model on zero-coupon yields
implied by U.S. Treasury issues with remaining terms similar to the expected term on the options.
We do not anticipate paying any cash dividends in the foreseeable future and therefore use an
expected dividend yield of zero in the option valuation model. We are required to estimate
forfeitures at the time of grant and revise those estimates in subsequent periods if actual
forfeitures differ from those estimates. We use historical data to estimate pre-vesting option
forfeitures and record stock-based compensation expense only for those awards that are expected to
vest.
</div>
<!-- Folio -->
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</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The assumptions used to value our option grants were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fiscal Years</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected term (in years)
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">3.0 – 4.1</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">2.3 – 4.7</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">3.5 – 4.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">34 – 57%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">32 – 60%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">30 – 39%</td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">1.16 – 2.24%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">1.70 – 3.50%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">3.60 – 5.10%</td>
<td nowrap="nowrap"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The expected term of ESPP shares is the average of the remaining purchase periods under each
offering period. The assumptions used to value employee stock purchase rights were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>Fiscal Years</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected term (in years)
</div></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">0.5 – 2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">0.5 – 2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center">0.5 – 2.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">40 – 57%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">30 – 36%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">30 – 33%</td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">0.27 – 1.05%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">2.12 – 3.29%</td>
<td nowrap="nowrap"> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td nowrap="nowrap" align="center">4.79 – 5.11%</td>
<td nowrap="nowrap"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize the estimated compensation cost of restricted stock awards and restricted stock
units, net of estimated forfeitures, over the vesting term. The estimated compensation cost is
based on the fair value of our common stock on the date of grant.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize the estimated compensation cost of performance shares, net of estimated
forfeitures. The awards are earned upon attainment of identified performance goals, some of which
contain discretionary metrics. As such, these awards are re-valued based on our traded stock price
at the end of each reporting period. If the discretion is removed, the award will be classified as
a fixed equity award. The fair value of the awards will be based on the measurement date, which is
the date the award becomes fixed. The awards will be subsequently amortized over the remaining
performance period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Summary of Stock Options</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Option activity under our stock option program for fiscal years 2009, 2008 and 2007 was as
follows (shares in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Outstanding Options</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exercise</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Price</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">December 1, 2006
</div></td>
<td> </td>
<td> </td>
<td align="right">61,731</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">24.19</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">10,084</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.36</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(21,368</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">21.18</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,705</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.18</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">November 30, 2007
</div></td>
<td> </td>
<td> </td>
<td align="right">47,742</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">28.47</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">5,462</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.08</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(9,983</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">25.45</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2,517</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35.34</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">November 28, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">40,704</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.67</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">5,758</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22.90</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7,560</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">17.15</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(3,160</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">33.57</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">5,509</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">20.15</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">November 27, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">41,251</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.45</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The weighted average fair values of options granted during fiscal 2009, 2008 and 2007 were
$8.39, $10.32 and $12.37, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total intrinsic value of options exercised during fiscal 2009, 2008 and 2007 was $91.8
million, $142.4 million and $463.6 million, respectively. The intrinsic value is calculated as the
difference between the market value on the date of exercise and the exercise price of the shares.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Information regarding the stock options outstanding at November 27, 2009, November 28, 2008
and November 30, 2007 is summarized below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exercise</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Life</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Value</b><sup style="font-size: 85%; vertical-align: text-top"><b>(*)</b></sup></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Price</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(millions)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>As of November 27, 2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">41,251</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.45</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.33</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">295.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Options vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">39,322</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.54</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.24</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">279.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options exercisable
</div></td>
<td> </td>
<td> </td>
<td align="right">26,677</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.85</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.54</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">181.7</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>As of November 28, 2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">40,704</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.67</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.00</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">76.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Options vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">38,975</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">29.36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.87</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">76.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options exercisable
</div></td>
<td> </td>
<td> </td>
<td align="right">28,034</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">26.61</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.28</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">76.1</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>As of November 30, 2007</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">47,742</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">28.47</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.36</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">654.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Options vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">43,067</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">27.68</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.19</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">623.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Options exercisable
</div></td>
<td> </td>
<td> </td>
<td align="right">29,387</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">23.77</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.38</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">539.8</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>The intrinsic value is calculated as the difference between the market value as of
end of the fiscal year and the exercise price of the shares. As reported by the NASDAQ Global
Select Market, the market values as of November 27, 2009, November 28, 2008 and November 30,
2007 were $35.38, $23.16 and $42.14, respectively.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     All stock options granted to current executive officers are made after a review by and with
the approval of the Executive Compensation Committee of the Board of Directors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Summary of Employee Stock Purchase Plan Shares</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The weighted average subscription date fair value of shares under the ESPP during fiscal 2009,
2008 and 2007 were $5.43, $9.56 and $12.03, respectively. Employees purchased 3.2 million shares at
an average price of $19.04, 2.4 million shares at an average price of $30.40, and 2.6 million
shares at an average price of $25.24, respectively, for fiscal 2009, 2008 and 2007. The intrinsic
value of shares purchased during fiscal 2009, 2008 and 2007 was $21.7 million, $25.0 million and
$39.8 million, respectively. The intrinsic value is calculated as the difference between the market
value on the date of purchase and the purchase price of the shares.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Summary of Restricted Stock</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock award activity for fiscal 2009, 2008 and 2007 was as follows (shares in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="28%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Non-vested</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Grant Date</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Non-vested</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Grant Date</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Non-vested</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Grant Date</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning
outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">39.31</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">36.41</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">501</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">9.17</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Awarded
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.03</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Released
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">38.22</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(15</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">34.94</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(92</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">29.32</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">39.95</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(393</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4.77</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td> <td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td> <td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">3</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">40.01</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">39.31</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">36.41</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" colspan="3" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 3px double #000000"> </td> <td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 3px double #000000"> </td> <td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total fair value of restricted stock awards vested during fiscal 2009, 2008 and 2007 was
$39.4 thousand, $0.5 million and $0.7 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock awards are considered outstanding at the time of grant, as the stock award
holders are entitled to dividends and voting rights. Unvested restricted stock awards are not
considered outstanding in the computation of basic earnings per share.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock unit activity for fiscal years 2009, 2008 and 2007 was as follows (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">4,261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,701</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Awarded
</div></td>
<td> </td>
<td> </td>
<td align="right">6,176</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,177</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,771</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Released
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(1,162</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(422</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(401</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(195</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(70</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td> <td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">10,433</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,701</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The weighted average grant date fair values for restricted stock units granted during fiscal 2009, 2008 and 2007 were $27.74, $33.55 and $39.67, respectively.
The total fair value of restricted stock units vested during fiscal 2009 and 2008 was $27.1
million and $14.4 million, respectively.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Information regarding restricted stock units outstanding at the end of fiscal 2009, 2008
and 2007 is summarized below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Life</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Value(*)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(millions)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">10,433</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.82</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">369.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">8,078</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.63</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">285.7</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">4,261</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.73</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">98.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">3,351</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.52</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">77.6</td>
<td> </td>
</tr>
<tr>
<td align="left" valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>2007</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">1,701</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.88</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">71.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">1,309</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.65</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">55.2</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>The intrinsic value is calculated as the market value as of end of the fiscal year.
As reported by the NASDAQ Global Select Market, the market values as of November 27, 2009,
November 28, 2008 and November 30, 2007 were $35.38, $23.16 and $42.14, respectively.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Summary of Performance Shares</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the summary of performance share activity under our 2009
Program for fiscal 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Maximum</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Eligible</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Granted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>to Receive</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Awarded
</div></td>
<td> </td>
<td> </td>
<td align="right">559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">643</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">552</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">635</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     However, the performance metrics under the 2009 program were not achieved and therefore no
shares will be awarded under the grants noted above.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the first quarter of fiscal 2009, the Executive Compensation Committee certified the actual
performance achievement of participants in the 2008 Performance Share Program (the “2008 Program”).
Based upon the achievement of goals outlined in the 2008 Program, participants had the ability to
receive up to 200% of the target number of shares originally granted. Actual performance resulted
in participants achieving approximately 124% of target or approximately 1.0 million shares for the
2008 Program. Shares under the 2008 Program vested 25% in the first quarter of fiscal 2009, and the
remaining 75% vest evenly on the following three annual anniversary dates of the grant, contingent
upon the recipient’s continued service to Adobe.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the summary of performance share activity under our 2006
through 2008 programs, based upon share awards actually achieved, for fiscal 2009 and fiscal 2008
(in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">383</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Achieved
</div></td>
<td> </td>
<td> </td>
<td align="right">1,022</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">993</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Released
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(382</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(480</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Forfeited
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(73</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(130</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td align="right" colspan="3" style="border-top: 1px solid #000000"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending outstanding balance
</div></td>
<td> </td>
<td> </td>
<td align="right">950</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">383</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td colspan="3" align="right" style="border-top: 3px double #000000"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The total fair value of performance awards vested during fiscal 2009 and 2008 was $7.7 million
and $16.7 million, respectively.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Information regarding performance shares outstanding at November 27, 2009 and November 28,
2008 is summarized below:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Life</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Value(*)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(millions)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Performance shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">950</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.05</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">33.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Performance shares vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">818</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.97</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">28.8</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Performance shares outstanding
</div></td>
<td> </td>
<td> </td>
<td align="right">383</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.20</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Performance shares vested and expected to vest
</div></td>
<td> </td>
<td> </td>
<td align="right">323</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.10</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">7.4</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>The intrinsic value is calculated as the market value as of end of the fiscal year.
As reported by the NASDAQ Global
Select Market, the market value as of November 27, 2009 and November 28, 2008 was $35.38 and
$23.16, respectively.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Grants to Non-Employee Directors</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Directors Plan (and starting in fiscal 2008, the 2003 Plan) provides for the granting of
nonqualified stock options to non-employee directors. Prior to fiscal 2009, option grants were
limited to 25,000 shares per person in each fiscal year, except for a new non-employee director to
whom 50,000 shares were granted upon election as a director. Options granted before November 29,
2008 vest over four years: 25% on the day preceding each of our next four annual meetings and have
a ten-year term. Starting in fiscal 2009, the initial equity grant to a new non-employee director
is a restricted stock unit award having an aggregate value of $0.5 million as based on the average
stock price over the 30 calendar days ending on the day before the date of grant. The initial
equity award vests over 2 years, 50% on the day preceding each of our next 2 annual meetings. For
the annual equity grant, a non-employee director can elect to receive 100% options, 100% restricted
stock units or 50% of each and shall have an aggregate value of $0.2 million as based on the
average stock price over the 30 calendar days ending on the day before the date of grant. The
target grant value of restricted stock units to stock options will be based on a 3:1 conversion
ratio. Annual equity awards granted on or after November 29, 2008 vest 100% on the day preceding
the next annual meeting. Options granted on or after November 29, 2008 have a seven-year term. The
exercise price of the options that are issued is equal to the fair market value of our common stock
on the date of grant.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Options granted to directors for fiscal 2009, 2008 and 2007 are as follows (shares in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Options granted to existing directors
</div></td>
<td> </td>
<td> </td>
<td align="right">175</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">250</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">250</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercise price
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">23.28</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">37.09</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">42.61</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Restricted stock units granted to directors for fiscal 2009 are as follows (shares in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units granted to existing directors
</div></td>
<td> </td>
<td> </td>
<td align="right">27</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restricted stock units granted to new directors
</div></td>
<td> </td>
<td> </td>
<td align="right">20</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Compensation Costs</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     With the exception of performance shares, stock-based compensation expense is recognized on a
straight-line basis over the requisite service period of the entire award, which is generally the
vesting period. For performance shares, expense is recognized on a straight-line basis over the
requisite service period for each vesting portion of the award.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, there was $305.0 million of unrecognized compensation cost, adjusted
for estimated forfeitures, related to non-vested stock-based awards which will be recognized over a
weighted average period of 2.4 years. Total unrecognized compensation cost will be adjusted for
future changes in estimated forfeitures.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Total stock-based compensation costs that have been included in our Consolidated Statements of
Income for fiscal 2009, 2008 and 2007 were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="19" style="border-bottom: 1px solid #000000"><b>Income Statement Classifications</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Cost of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Revenue –</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Services and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Research and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Sales and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>General and</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Support</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Development</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Marketing</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Administrative</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"><b>Option Grants and Stock
Purchase Rights</b><b><sup style="font-size: 85%; vertical-align: text-top"><b>(*)</b></sup></b>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">1,906</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">45,535</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">38,790</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">24,595</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">110,826</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">3,728</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">55,653</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">41,326</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">24,521</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">125,228</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2007
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">5,152</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">58,579</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">41,801</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">24,467</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">129,999</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:0px; text-indent:-0px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" nowrap="nowrap">
<div style="margin-left:0px; text-indent:-0px"><b>Restricted Stock
and Performance Share
Awards </b><sup style="font-size: 85%; vertical-align: text-top"><b>(*)</b></sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top"> </td>
<td align="right" valign="top"> </td>
<td valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2009
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">639</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">27,931</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">19,818</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">9,274</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">57,662</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2008
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">570</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">20,835</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">17,928</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">10,810</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">50,143</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:0px; text-indent:-0px">Fiscal 2007
</div></td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">346</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">9,518</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">6,084</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">4,040</td>
<td nowrap="nowrap" valign="top"> </td>
<td> </td>
<td nowrap="nowrap" align="right" valign="top">$</td>
<td align="right" valign="top">19,988</td>
<td nowrap="nowrap" valign="top"> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>During fiscal 2009 and 2008, we recorded $0.9 million and $2.9 million,
respectively, associated with cash recoveries of fringe benefit tax from employees in India.</td>
</tr>
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 14 - adbe:StockholdersEquityTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 14. STOCKHOLDERS’ EQUITY</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Stockholder Rights Plan</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our Stockholder Rights Plan is intended to protect stockholders from unfair or coercive
takeover practices. In accordance with this plan, the Board of Directors declared a dividend
distribution of one common stock purchase right on each outstanding share of our common stock held
as of July 24, 1990 and on each share of common stock issued by Adobe thereafter. In July 2000, the
Stockholder Rights Plan was amended to extend it for ten years so that each right entitles the
holder to purchase one unit of Series A Preferred Stock, which is equal to 1/1000 share of Series A
Preferred Stock, par value $0.0001 per share, at a price of $700 per unit. As adjusted for our 2000
and 2005 stock splits each in the form of a dividend, each share of common stock now entitles the
holder to one-quarter of such a purchase right. Each whole right still entitles the registered
holder to purchase from Adobe a unit of preferred stock at $700. The rights become exercisable in
certain circumstances, including upon an entity’s acquiring or announcing the intention to acquire
beneficial ownership of 15% or more of our common stock without the approval of the Board of
Directors or upon our being acquired by any person in a merger or business combination transaction.
The rights are redeemable by Adobe prior to exercise at $0.01 per right and expire on July 23,
2010.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Stock Repurchase Program I</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     To facilitate our stock repurchase program, designed to return value to our stockholders and
minimize dilution from stock issuances, we repurchase shares in the open market and also enter into
structured repurchases with third-parties.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Authorization to repurchase shares to cover on-going dilution is not subject to expiration.
However, this repurchase program is limited to covering net dilution from stock issuances and is
subject to business conditions and cash flow requirements as determined by our Board of Directors
from time to time.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2009, 2008 and 2007 we entered into several structured repurchase agreements
with large financial institutions, whereupon we provided the financial institutions with
prepayments of $350.0 million, $525.0 million and $1.1 billion, respectively. We entered into these
agreements in order to take advantage of repurchasing shares at a guaranteed discount to the Volume
Weighted Average Price (“VWAP”) of our common stock over a specified period of time. We only enter
into such transactions when the discount that we receive is higher than the foregone return on our
cash prepayments to the financial institutions. There were no explicit commissions or fees on these
structured repurchases. Under the terms of the agreements, there is no requirement for the
financial institutions to return any portion of the prepayment to us.
</div>
<!-- Folio -->
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The financial institutions agree to deliver shares to us at monthly intervals during the
contract term. The parameters used to calculate the number of shares deliverable are: the total
notional amount of the contract, the number of trading days in the contract, the number of trading
days in the interval and the average VWAP of our stock during the interval less the agreed upon
discount. During fiscal 2009, we repurchased approximately 15.2 million shares at an average price
per share of $27.89 through structured repurchase agreements entered into during fiscal 2008 and
fiscal 2009. During fiscal 2008, we repurchased 22.4 million shares at an average price of $36.26
through structured repurchase agreements which included prepayments from fiscal 2007. During fiscal
2007, we repurchased 22.0 million shares at an average price of $40.04 through structured
repurchase agreements which included prepayments from fiscal 2006.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2008, we also repurchased 3.6 million shares at an average price of $36.41 in
open market transactions.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For fiscal 2009, 2008 and 2007, the prepayments were classified as treasury stock on our
Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by
November 27, 2009, November 28, 2008 and November 30, 2007 were excluded from the denominator in
the computation of earnings per share. As of November 27, 2009 and November 28, 2008, approximately
$59.9 million and $134.7 million, respectively, of up-front payments remained under the agreements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Stock Repurchase Program II</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Under this stock repurchase program, we had authorization to repurchase an aggregate of 50.0
million shares of our common stock. During the third quarter of fiscal 2008, the remaining
authorized number of shares were repurchased. From the inception of the 50.0 million share
authorization under this program, we provided prepayments of $1.9 billion under structured share
repurchase agreements to large financial institutions. During the third quarter of fiscal 2008, the
remaining authorized number of shares were repurchased.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2008, we provided prepayments of $1.0 billion and repurchased 31.9 million
shares under these structured agreements at an average price of $37.15. During fiscal 2007, we
provided prepayments of $850.0 million under structured share repurchase agreements to large
financial institutions. During fiscal 2007, we repurchased 17.7 million shares under these
structured agreements at an average price of $40.50 and approximately $133.7 million of up-front
payments remained under these agreements as of November 30, 2007.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     During fiscal 2008, we also repurchased 0.5 million shares at an average price of $39.79 in
open market transactions.
</div>
</div>
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<!-- Begin Block Tagged Note 15 - us-gaap:ComprehensiveIncomeNoteTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 15. COMPREHENSIVE INCOME</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the activity for each component of comprehensive income, net of
related taxes, for fiscal 2009, 2008 and 2007 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">386,508</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">871,814</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">723,807</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other comprehensive income (loss):
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Unrealized gains (losses) on available-for-sale
securities, net of taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">6,661</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,102</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14,570</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Reclassification adjustment for (gains) losses on
available-for-sale securities recognized during
the period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,752</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,000</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal available-for-sale securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,091</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,543</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">16,570</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Derivative instruments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Unrealized
(losses) gains on derivative instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(14,618</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">54,967</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">4,974</td>
<td nowrap="nowrap"> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Reclassification adjustment for gains on
derivative instruments recognized during
the period
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(27,138</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">(13,248</td>
<td>)</td>
<td> </td>
<td> </td>
<td align="right">(5,510</td>
<td>)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal derivative instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(41,756</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41,719</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(536</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign currency translation adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">11,071</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,902</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5,570</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other comprehensive income (loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(32,776</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">29,274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,604</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total comprehensive income, net of taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">353,732</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">901,088</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">745,411</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the taxes related for each component of other
comprehensive income for fiscal 2009, 2008 and 2007 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities
</div></td>
<td> </td>
<td>$</td>
<td align="right">931</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> $</td>
<td align="right">(988</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td>$</td>
<td align="right">2,382</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments
</div></td>
<td> </td>
<td>$</td>
<td align="right">1,411</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4,860</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td>$</td>
<td align="right">3,699</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Taxes related to derivative instruments were zero for all fiscal years.
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the components of accumulated other comprehensive income, net
of related taxes, for fiscal 2009 and 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net unrealized gains on available-for-sale securities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized gains on available-for-sale securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">13,818</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">16,062</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized losses on available-for-sale securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(155</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total net unrealized gains on available-for-sale securities
</div></td>
<td> </td>
<td> </td>
<td align="right">13,816</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,907</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net unrealized gains on derivative instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">41,750</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cumulative foreign currency translation adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">10,635</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(435</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total accumulated other comprehensive income, net of taxes
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">24,446</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57,222</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the components of foreign currency translation adjustments for
fiscal 2009, 2008 and 2007 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(431</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">10,471</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,901</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Foreign currency translation adjustments
</div></td>
<td> </td>
<td> </td>
<td align="right">17,343</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(19,461</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">9,269</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income tax effect relating to
translation adjustments for
undistributed foreign earnings
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(6,272</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">8,559</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,699</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">10,640</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(431</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">10,471</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 16 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 16. NET INCOME PER SHARE</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Basic net income per share is computed using the weighted average number of common shares
outstanding for the period, excluding unvested restricted stock. Diluted net income per share is
based upon the weighted average common shares outstanding for the period plus dilutive potential
common shares, including unvested restricted stock and stock options using the treasury stock
method.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table sets forth the computation of basic and diluted net income per share for
fiscal 2009, 2008 and 2007 (in thousands, except per share data):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">386,508</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">871,814</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">723,807</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used to compute basic net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">524,470</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">539,373</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">584,203</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Dilutive potential common shares:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unvested restricted stock and performance share awards
</div></td>
<td> </td>
<td> </td>
<td align="right">2,130</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,107</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Stock options
</div></td>
<td> </td>
<td> </td>
<td align="right">4,010</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8,073</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,559</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used to compute diluted net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">530,610</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">548,553</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">598,775</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income per share
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.74</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.62</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.24</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net income per share
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.73</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.59</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.21</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For fiscal 2009, 2008 and 2007, options to purchase approximately 27.0 million, 16.5 million
and 10.4 million shares, respectively, of common stock with exercise prices greater than the annual
average fair market value of our stock of $27.30, $37.07 and $41.77, respectively, were not
included in the calculation because the effect would have been anti-dilutive.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 17 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 17. COMMITMENTS AND CONTINGENCIES</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Lease Commitments</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We lease certain of our facilities and some of our equipment under non-cancellable operating
lease arrangements that expire at various dates through 2028. We also have one land lease that
expires in 2091. Rent expense includes base contractual rent and variable costs such as building
expenses, utilities, taxes, insurance and equipment rental. Rent expense and sublease income for
these leases for fiscal 2007 through fiscal 2009 were as follows (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Rent expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">93,921</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">101,202</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">90,553</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less: sublease income
</div></td>
<td> </td>
<td> </td>
<td align="right">5,563</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11,421</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,406</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Net rent expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">88,358</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">89,781</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">81,147</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We occupy three office buildings in San Jose, California where our corporate headquarters are
located. We reference these office buildings as the Almaden Tower and the East and West Towers.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In August 2004, we extended the lease agreement for our East and West Towers for an additional
five years with an option to extend for an additional five years solely at our election. In June
2009, we submitted notice to the lessor that we intended to exercise our option to renew this
agreement for an additional five years effective August 2009. As stated in the original lease
agreement, in conjunction with the lease renewal, we were required to obtain a standby letter of
credit for approximately $16.5 million which enabled us to secure a lower interest rate and reduce
the number of covenants. As defined in the lease agreement, the standby letter of credit primarily
represents the lease investment balance equity which is callable in the event of default. In March
2007, the Almaden Tower lease was extended for five years, with a renewal option for an additional
five years solely at our election. As part of the lease extensions, we purchased the lease
receivable from the lessor of the East and West Towers for $126.8 million and a portion of the
lease receivable from the lessor of the Almaden Tower for $80.4 million, both of which are recorded
as investments in lease receivables on our Consolidated Balance Sheets. This purchase may be
credited against the residual value guarantee if we purchase the properties or will be repaid from
the sale proceeds if the properties are sold to third parties. Under the agreement for the East and
West Towers and the agreement for the Almaden Tower, we have the option to purchase the buildings
at anytime during the lease term for approximately $143.2 million and $103.6 million, respectively.
The residual value guarantees under the East and West Towers and the Almaden Tower obligations are
$126.8 million and $89.4 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     These two leases are both subject to standard covenants including certain financial ratios
that are reported to the lessors quarterly. As of November 27, 2009, we were in compliance with all
covenants. In the case of a default, the lessor may demand we purchase the buildings for an amount
equal to the lease balance, or require that we remarket or relinquish the buildings. Both leases
qualify for operating lease accounting treatment and, as such, the buildings and the related
obligations are not included on our consolidated balance sheet. We utilized this type of financing
in order to access bank-provided funding at the most favorable rates and to provide the lowest
total cost of occupancy for the headquarter buildings. At the end of the lease term, we can extend
the lease for an additional five year term, purchase the buildings for the lease balance, remarket
or relinquish the buildings. If we choose to remarket or are required to do so upon relinquishing
the buildings, we are bound to arrange the sale of the buildings to an unrelated party and will be
required to pay the lessor any shortfall between the net remarketing proceeds and the lease
balance, up to the residual value guarantee amount.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following are our future minimum lease payments under non-cancellable operating leases and
future minimum sublease income under non-cancellable subleases for each of the next five years and
thereafter as of November 27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Future</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Future</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Minimum</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Minimum</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Lease</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sublease</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left"><u><b>Fiscal Year</b></u></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Payments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Income</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2010
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">53,244</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,970</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2011
</div></td>
<td> </td>
<td> </td>
<td align="right">41,328</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,323</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2012
</div></td>
<td> </td>
<td> </td>
<td align="right">33,391</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,008</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">2013
</div></td>
<td> </td>
<td> </td>
<td align="right">24,780</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">404</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">2014
</div></td>
<td> </td>
<td> </td>
<td align="right">19,964</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Thereafter
</div></td>
<td> </td>
<td> </td>
<td align="right">76,548</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">249,255</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,705</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table above includes commitments related to our restructured facilities. <i>See Note 11 for
information regarding our restructuring charges.</i>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Guarantees</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The lease agreements for our corporate headquarters provide for residual value guarantees as
noted above. The fair value of a residual value guarantee in lease
agreements entered into after December 31, 2002, must be recognized as a liability on our
Consolidated Balance Sheets. As such, we recognized $5.2 million and $3.0 million in liabilities,
related to the extended East and West Towers and Almaden Tower leases, respectively. These
liabilities are recorded in other long-term liabilities with the offsetting entry recorded as
prepaid rent in other assets. The balance will be amortized to the income statement over the life
of the leases. As of November 27, 2009 and November 28, 2008, the unamortized portion of the fair
value of the residual value guarantees, for both leases, remaining in other long-term liabilities
and prepaid rent was $1.3 million and $2.6 million, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Royalties</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We have royalty commitments associated with the shipment and licensing of certain products.
Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the
underlying revenue. Royalty expense, which was recorded under our cost of products revenue on our
Consolidated Statements of Income, was approximately $43.0 million, $47.8 million and $37.4 million
in fiscal 2009, 2008 and 2007, respectively.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Indemnifications</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In the normal course of business, we provide indemnifications of varying scope to customers
against claims of intellectual property infringement made by third-parties arising from the use of
our products. Historically, costs related to these indemnification provisions have not been
significant and we are unable to estimate the maximum potential impact of these indemnification
provisions on our future results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     To the extent permitted under Delaware law, we have agreements whereby we indemnify our
officers and directors for certain events or occurrences while the officer or director is, or was
serving, at our request in such capacity. The indemnification period covers all pertinent events
and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future
payments we could be required to make under these indemnification agreements is unlimited; however,
we have director and officer insurance coverage that reduces our exposure and enables us to recover
a portion of any future amounts paid. We believe the estimated fair value of these indemnification
agreements in excess of applicable insurance coverage is minimal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As part of our limited partnership interests in Adobe Ventures, we have provided a general
indemnification to Granite Ventures, an independent venture capital firm and sole general partner
of Adobe Ventures, for certain events or occurrences while Granite Ventures is, or was serving, at
our request in such capacity provided that Granite Ventures acts in good faith on behalf of the
partnership. We are unable to develop an estimate of the maximum potential amount of future
payments that could potentially result from any hypothetical future claim, but believe the risk of
having to make any payments under this general indemnification to be remote.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Legal Proceedings</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On September 23, 2009, Richard Miner on behalf of himself and all similarly situated
stockholders of Omniture, Inc. filed a class action lawsuit captioned <i>Miner v. Omniture, Inc., et.
al.</i>, <i>Case No. 090403559 </i>(the “Miner Lawsuit”) against Omniture, the members of Omniture’s board of
directors (collectively, the “Omniture Defendants”) and Adobe in the United States Fourth Judicial
District Court for Utah County, Provo Department, State of Utah seeking to enjoin the proposed
acquisition between Omniture and Adobe. In the event the acquisition is consummated, the plaintiff
seeks to recover an unspecified amount of damages. The plaintiff alleges that the members of
Omniture’s board of directors breached their fiduciary duties to Omniture’s stockholders by failing
to seek the highest possible price for Omniture and that Adobe induced or aided and abetted in the
alleged breach of such fiduciary duties. Also on September 23, 2009, Christopher R. Barrell filed a
substantially similar lawsuit to the Miner Lawsuit in the United States Fourth Judicial District
Court for Utah County, Provo Department, State of Utah, captioned <i>Barrell v. Omniture, Inc. et.
al., Case No. 090403560 </i>(the “Barrell Lawsuit”). The Barrell Lawsuit names the same defendants as
the Miner Lawsuit, and also names Snowbird Acquisition Corporation as an additional defendant.
Subsequently, on September 24, 2009, the plaintiff in the Barrell Lawsuit filed an amended
complaint, which added allegations that the Schedule 14D-9 Solicitation/Recommendation Statement
filed by Omniture on September 24, 2009 contained inadequate disclosures and was materially
misleading. On September 25, 2009, the Omniture Defendants filed a motion requesting that the
court consolidate the Barrell Lawsuit, Miner Lawsuit and a substantially similar lawsuit captioned
<i>Lodhia v. Omniture, Inc. et al., Case No. 090403499 </i>(the “Lodhia Lawsuit”) in which the Omniture
Defendants, but not Adobe, were named. Additionally, on September 30, 2009, the plaintiff in the
Lodhia Lawsuit filed a response to defendants’ motion to consolidate, agreeing consolidation is
appropriate, and also filed a motion seeking appointment as lead plaintiff in the consolidated
action. Omniture moved for an order consolidating all three lawsuits. The plaintiffs in the
three lawsuits filed a joint motion seeking preliminary injunction barring the consummation of the
proposed acquisition and requiring additional disclosures by Omniture in its Schedule 14D-9. At a
hearing on October 20, 2009, the court granted Omniture’s motion to consolidate the three cases and
denied the plaintiffs’ motion for a preliminary injunction.
On December 30, 2009, the plaintiffs served the defendants with a consolidated amended complaint. Adobe intends to defend the lawsuits
vigorously. As of November 27, 2009, no amounts have been accrued as a loss is not probable.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In connection with our anti-piracy efforts, conducted both internally and through
organizations such as the Business Software Alliance, from time to time we undertake litigation
against alleged copyright infringers. Such lawsuits may lead to counter-claims alleging improper
use of litigation or violation of other local laws. We believe we have valid defenses with respect
to such counter-claims; however, it is possible that our consolidated financial position, cash
flows or results of operations could be affected in any particular period by the resolution of one
or more of these counter-claims.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     From time to time, Adobe is subject to legal proceedings, claims and investigations in the
ordinary course of business, including claims of alleged infringement of third-party patents and
other intellectual property rights, commercial, employment and other matters. Adobe makes a
provision for a liability when it is both probable that a liability has been incurred and the
amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly
and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel
and other information and events pertaining to a particular case. Litigation is inherently
unpredictable. However, we believe that we have valid defenses with respect to the legal matters
pending against Adobe. It is possible, nevertheless, that our consolidated financial position, cash
flows or results of operations could be negatively affected by an unfavorable resolution of one or
more of such proceedings, claims or investigations.
</div>
</div>
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<!-- Begin Block Tagged Note 18 - us-gaap:ScheduleOfLineOfCreditFacilitiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 18. CREDIT AGREEMENT</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In August 2007, we entered into the Amendment to our Credit Agreement dated February 2007 (the
“Amendment”), which increased the total senior unsecured revolving facility from $500.0 million to
$1.0 billion. The Amendment also permits us to request one-year extensions effective on each
anniversary of the closing date of the original agreement, subject to the majority consent of the
lenders. We also retain an option to request an additional $500.0 million in commitments, for a
maximum aggregate facility of $1.5 billion.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In February 2008, we entered into the Second Amendment to the Credit Agreement dated February
26, 2008, which extended the maturity date of the facility by one year to February 16, 2013. The
facility would terminate at this date if no additional extensions have been requested and granted.
All other terms and conditions remain the same.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The facility contains a financial covenant requiring us not to exceed a certain maximum
leverage ratio. At our option, borrowings under the facility accrue interest based on either the
London interbank offered rate (“LIBOR”) for one, two, three
or six months, or longer periods with bank consent, plus a margin according to a pricing grid tied
to this financial covenant, or a base rate. The margin is set at rates between 0.20% and 0.475%.
Commitment fees are payable on the facility at rates between 0.05% and 0.15% per year based on the
same pricing grid. The facility is available to provide loans to us and certain of our subsidiaries
for general corporate purposes. As of November 28, 2008, the amount outstanding under this credit
facility was $350.0 million. On September 22, 2009 we borrowed an additional $650.0 million under
the credit facility. As of November 27, 2009, the amount outstanding under this credit facility was
$1.0 billion which is included in long-term liabilities on our Consolidated Balance Sheets. The
carrying value of the outstanding liability approximates fair value. As of November 27, 2009, we
were in compliance with all of the covenants.
</div>
</div>
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<!-- Begin Block Tagged Note 19 - us-gaap:OtherIncomeAndOtherExpenseDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 19. NON-OPERATING INCOME (EXPENSE)</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Non-operating income (expense) for fiscal 2009, 2008 and 2007 included the following (in
thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest and other income, net:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34,978</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">57,588</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">92,794</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange losses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(13,420</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17,494</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,264</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Realized gains on fixed income investment
</div></td>
<td> </td>
<td> </td>
<td align="right">8,753</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">934</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Realized losses on fixed income investment
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,501</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,510</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">1,070</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,093</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,770</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Interest and other income, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31,380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,847</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">82,724</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Interest expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(3,407</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(10,019</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(253</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Investment gains (losses), net:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Realized investment gains
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">52</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">18,398</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">9,308</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized investment gains<sup style="font-size: 85%; vertical-align: text-top">(*)</sup>
</div></td>
<td> </td>
<td> </td>
<td align="right">7,950</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,803</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,265</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Realized investment losses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9,019</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,417</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,236</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized investment losses
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15,949</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8,375</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5,203</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Investment gains (losses), net
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(16,966</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">16,409</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">7,134</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Non-operating income (expense), net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,007</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,237</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">89,605</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>During fiscal 2009, we recorded $3.0 million in unrealized holding gains and losses
associated with our deferred compensation plan assets (classified as trading securities).</td>
</tr>
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 20 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 20. INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     For substantially all of fiscal 2009, we had the following reportable segments: Creative
Solutions, Knowledge Worker, Enterprise, Platform and Print and Publishing. Coinciding with the
integration of Omniture in the fourth quarter of fiscal 2009, we created a new reportable segment
for financial reporting purposes. Our Creative Solutions segment focuses on delivering a complete
professional line of integrated tools for a full range of creative and developer tasks to an
extended set of customers. The Knowledge Worker segment focuses on the needs of knowledge worker
customers, providing essential applications and services to help them share information and
collaborate. This segment contains revenue generated by Acrobat Connect and our Acrobat family of
products. Our Enterprise segment provides server-based enterprise interaction solutions that
automate people-centric processes and contains revenue generated by our LiveCycle line of products.
The Platform segment includes client and developer technologies, such as Adobe Flash Player, Adobe
Flash Lite, Adobe AIR, Adobe Flex and Adobe Flash Builder, and also encompasses products and
technologies created and managed in other Adobe segments. The Print and Publishing segment
addresses market opportunities ranging from the diverse publishing needs of technical and business
publishing, to our legacy type and OEM printing businesses. Finally, our Omniture segment provides
web analytics and online business optimization products and services to manage and enhance online,
offline and multi-channel business initiatives.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Effective in the first quarter of fiscal 2009, our former Mobile and Devices Solutions
segment, was integrated into our Platform business unit to better align our engineering and
marketing efforts and is now reported as part of the Platform segment. Prior year information in
the table below has been reclassified to reflect the integration of these business units.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     To better align our marketing efforts and go-to-market strategies, in fiscal 2010 we plan to
move responsibility for the Connect Solutions product line from our Knowledge Worker segment to our
Enterprise segment. We will adjust our reportable segments at the beginning of fiscal 2010 to
reflect changes for how we manage our business as we enter the new fiscal year.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We report segment information based on the “management” approach. The management approach
designates the internal reporting used by management for making decisions and assessing performance
as the source of our reportable segments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our chief operating decision maker reviews revenue and gross margin information for each of
our reportable segments. Operating expenses are not reviewed on a segment by segment basis. In
addition, with the exception of goodwill and intangible assets, we do not identify or allocate our
assets by the reportable segments.
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our segment results for fiscal 2009, 2008 and 2007 were as follows (dollars in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="23%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Creative</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Knowledge</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Print and</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Solutions</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Worker</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Enterprise</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Platform</b><b><sup style="font-size: 85%; vertical-align: text-top"><b>(1)</b></sup></b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Publishing</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Omniture</b><b><sup style="font-size: 85%; vertical-align: text-top"><b>(2)</b></sup></b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fiscal 2009</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,702,110</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">622,970</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">235,498</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">181,033</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">177,970</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">26,272</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,945,853</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">152,909</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,155</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47,991</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,174</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,674</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,829</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">296,732</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,549,201</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">582,815</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">187,507</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">159,859</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">159,296</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">10,443</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,649,121</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit as
a percentage of
revenue
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">91</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">94</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">80</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">88</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">90</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">40</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">90</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fiscal 2008</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,072,835</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">810,883</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">252,976</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">231,558</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">211,637</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,579,889</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">160,560</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53,282</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75,539</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44,344</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28,905</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">362,630</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,912,275</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">757,601</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">177,437</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">187,214</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">182,732</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,217,259</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit as
a percentage of
revenue
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">92</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">93</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">70</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">81</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">86</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">90</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Fiscal 2007</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,898,924</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">728,528</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">191,317</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">133,380</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">205,732</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,157,881</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cost of revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">147,161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57,683</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">68,932</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44,087</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36,831</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">354,694</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,751,763</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">670,845</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">122,385</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">89,293</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">168,901</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,803,187</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Gross profit as
a percentage of
revenue
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">92</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">92</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">64</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">67</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">82</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">89</td>
<td nowrap="nowrap">%</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Platform revenue includes revenue related to our Mobile client products of $51.3
million, $113.1 million and $52.5 million for fiscal 2009, 2008 and 2007, respectively, or
28%, 49% and 39% of Platform revenues, respectively.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td>
<td> </td>
<td>Fiscal 2009 includes the integration of Omniture as a new reportable segment in the
fourth quarter. Fiscal 2008 and 2007 do not include the impact of our acquisition of Omniture.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The tables below list our revenue and property and equipment, net, by geographic area for
fiscal 2009, 2008 and 2007 (in thousands). With the exception of property and equipment, we do not
identify or allocate our assets by geographic area.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>Revenue</b>
<div style="font-size: 1px; margin-right: 6%; width: 10%; border-bottom: 1px solid #000000"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Americas:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,244,631</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,473,319</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,379,028</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">137,940</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">159,507</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">129,776</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total Americas
</div></td>
<td> </td>
<td> </td>
<td align="right">1,382,571</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,632,826</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,508,804</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">EMEA
</div></td>
<td> </td>
<td> </td>
<td align="right">928,857</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,229,161</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,026,455</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Asia:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Japan
</div></td>
<td> </td>
<td> </td>
<td align="right">410,055</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">450,799</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">407,344</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">224,370</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">267,103</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">215,278</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total Asia
</div></td>
<td> </td>
<td> </td>
<td align="right">634,425</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">717,902</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">622,622</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,945,853</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,579,889</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">3,157,881</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>Property and Equipment</b>
<div style="font-size: 1px; margin-left:0%; width: 20%; border-bottom: 1px solid #000000"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Americas:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">United States
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">336,303</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">252,434</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">5,806</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9,154</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Total Americas
</div></td>
<td> </td>
<td> </td>
<td align="right">342,109</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">261,588</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">EMEA
</div></td>
<td> </td>
<td> </td>
<td align="right">23,729</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29,887</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Asia:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">India
</div></td>
<td> </td>
<td> </td>
<td align="right">14,625</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,242</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">7,669</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6,320</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total Asia
</div></td>
<td> </td>
<td> </td>
<td align="right">22,294</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21,562</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">388,132</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">313,037</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Significant Customers</i>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As listed, our significant customers are distributors who sell products across our various
segments. Our significant customers, as a percentage of net revenue for fiscal 2009, 2008 and 2007
were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2007</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ingram Micro
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">15</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">18</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">21</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tech Data
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">10</td>
<td nowrap="nowrap">%</td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Receivables from our significant customers, as a percentage of gross trade receivables for
fiscal 2009 and 2008 were as follows:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ingram Micro
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">16</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">18</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Tech Data
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">6</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">8</td>
<td nowrap="nowrap">%</td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 21 - us-gaap:QuarterlyFinancialInformationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>NOTE 21. SELECTED QUARTERLY FINANCIAL DATA (unaudited)</b>
</div>
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Quarter Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands, except per share data)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>February 27</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>May 29</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>August 28</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>November 27</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">786,390</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">704,673</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">697,507</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">757,283</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">709,037</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">632,665</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">632,460</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">674,959</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">203,162</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">163,730</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">174,416</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">160,212</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income (loss)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">156,435</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">126,071</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">136,045</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(32,043</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income (loss) per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.30</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.24</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.06</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net income (loss) per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.30</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.24</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.26</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.06</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><b>Quarter Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands, except per share data)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>February 29</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>May 30</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>August 29</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>November 28</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenue
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">890,445</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">886,886</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">887,257</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">915,301</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Gross profit
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">807,970</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">804,020</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">776,406</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">828,863</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before income taxes
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">295,644</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">278,006</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">228,514</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">276,344</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">219,379</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">214,910</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">191,608</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">245,917</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.39</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.40</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.36</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.47</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.38</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.40</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.35</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">0.46</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our fiscal year is a 52- or 53-week year. Each of the fiscal quarters presented were comprised of
13 weeks.
</div>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Operations</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Founded in 1982, Adobe Systems Incorporated is one of the largest and most diversified
software companies in the world. We offer a line of creative, business, Web and mobile software and
services used by creative professionals, knowledge workers, consumers, original equipment
manufacturers (“OEMs”), developers and enterprises for creating, managing, delivering,
optimizing and engaging with compelling content and experiences across multiple operating systems,
devices and media. We distribute our products through a network of distributors, value-added
resellers (“VARs”), systems integrators, independent software vendors (“ISVs”) and OEMs, direct to
end users and through our own Website at www.adobe.com. We also license our technology to hardware
manufacturers, software developers and service providers, and we offer integrated software
solutions to businesses of all sizes. We have operations in the Americas, Europe, Middle East and
Africa (“EMEA”) and Asia. Our software runs on personal computers with Microsoft Windows, Apple Mac
OS, Linux, UNIX and various non-PC platforms, depending on the product.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Basis of Presentation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The accompanying Consolidated Financial Statements include those of Adobe and its
subsidiaries, after elimination of all intercompany accounts and transactions. We have prepared the
accompanying Consolidated Financial Statements in accordance with accounting principles generally
accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the
Securities and Exchange Commission (“SEC”).
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Use of Estimates</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In preparation of consolidated financial statements and related disclosures in conformity with
GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments
that affect the amounts reported in the Consolidated Financial Statements and accompanying notes.
Estimates are used for, but not limited to sales allowances and programs, bad debts, stock-based
compensation, allocation of purchase price allocations, excess inventory and
purchase commitments, restructuring costs, facilities lease losses, impairment of goodwill and
intangible assets, litigation, income taxes and investments. Actual results may differ materially
from these estimates.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fiscal Year</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30.
Fiscal years 2009, 2008 and 2007 were all 52 weeks.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Reclassification</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Certain prior year amounts have been reclassified to conform to current year presentation in
the Consolidated Statements of Cash Flows. The previously reported classifications of net cash
provided by (used for) operating activities, investing activities and financing activities for any
period presented were not affected by these reclassifications.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Allowance for Doubtful Accounts</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We maintain an allowance for doubtful accounts which reflects our best estimate of potentially
uncollectible trade receivables. We regularly review our trade receivables allowances by
considering such factors as historical experience, credit-worthiness, the age of the trade
receivable balances and current economic conditions that may affect a customer’s ability to pay and
we specifically reserve for those deemed uncollectible.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,798</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">9,421</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Charged (credited) to operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">2,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,414</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,367</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Preference claim, credited to operating expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deductions<sup style="font-size: 85%; vertical-align: text-top">(*)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(165</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,684</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,033</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,225</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Deductions related to the allowance for doubtful accounts represent amounts written
off against the allowance, less recoveries.</td>
</tr>
</table>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Foreign Currency Translation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We translate assets and liabilities of foreign subsidiaries, whose functional currency is
their local currency, at exchange rates in effect at the balance sheet date. We translate revenue
and expenses at the monthly average exchange rates. We include accumulated net translation
adjustments in stockholders’ equity as a component of accumulated other comprehensive income.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Property and Equipment</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We record property and equipment at cost less accumulated depreciation and amortization.
Property and equipment are depreciated using the straight-line method over their estimated useful
lives ranging from 1 to 5 years for computers and equipment, 1 to 6 years for furniture and
fixtures and up to 35 years for buildings. Leasehold improvements are amortized using the
straight-line method over the lesser of the remaining respective lease term or useful lives.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Goodwill, Purchased Intangibles and Other Long-Lived Assets</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We review our goodwill for impairment annually, or more frequently, if facts and circumstances
warrant a review. We completed our annual impairment test in the second quarter of fiscal 2009 and
determined that there was no impairment.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Goodwill is assigned to one or more reporting segments on the date of acquisition. We evaluate
goodwill for impairment by comparing the fair value of each of our reporting segments to its
carrying value, including the associated goodwill. To determine the fair values, we use the market
approach based on comparable publicly traded companies in similar lines of businesses and the
income approach based on estimated discounted future cash flows. Our cash flow assumptions consider
historical and forecasted revenue, operating costs and other relevant factors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We amortize intangible assets with finite lives over their estimated useful lives and review
them for impairment whenever an impairment indicator exists. We continually monitor events and
changes in circumstances that could indicate carrying amounts of our long-lived assets, including
our intangible assets may not be recoverable. When such events or changes in circumstances occur,
we assess recoverability by determining whether the carrying value of such assets will be recovered
through the undiscounted expected future cash flows. If the future undiscounted cash flows are less
than the carrying amount of these assets, we recognize an impairment loss based on the excess of
the carrying amount over the fair value of the assets. We did not recognize any intangible asset
impairment charges in fiscal 2009, 2008 or 2007.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our intangible assets are amortized over their estimated useful lives of 1 to 13 years as
shown in the table below. Amortization is based on the pattern in which the economic benefits of
the intangible asset will be consumed.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Useful Life (years)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchased technology
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Localization
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Software Development Costs</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Capitalization of software development costs for software to be sold, leased, or otherwise
marketed begins upon the establishment of technological feasibility, which is generally the
completion of a working prototype that has been certified as having no critical bugs and is a
release candidate. Amortization begins once the software is ready for its intended use, generally
based on the pattern in which the economic benefits will be consumed. To date, software development
costs incurred between completion of a working prototype and general availability of the related
product have not been material.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revenue Recognition</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our revenue is derived from the licensing of software products, consulting, hosting services
and maintenance and support. Primarily, we recognize revenue when persuasive evidence of an
arrangement exists, we have delivered the product or performed the service, the fee is fixed or
determinable and collection is probable.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Multiple Element Arrangements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We enter into multiple element revenue arrangements in which a customer may purchase a
combination of software, upgrades, hosting services, maintenance and support, and consulting
(multiple-element arrangements). When vendor specific objective evidence (“VSOE”) of fair value
does not exist for all delivered elements, we allocate and defer revenue for the undelivered items
based on VSOE of fair value of the undelivered elements and recognize the difference between the
total arrangement fee and the amount deferred for the undelivered items as license revenue.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     VSOE of fair value for each element is based on the price for which the element is sold
separately. We determine the VSOE of fair value of each element based on historical evidence of our
stand-alone sales of these elements to third-parties or from the stated renewal rate for the
elements contained in the initial software license arrangement. When VSOE of fair value does not
exist for any undelivered element, revenue is deferred until the earlier of the point at which such
VSOE of fair value exists or until all elements of the arrangement have been delivered. The only
exception to this guidance is when the only undelivered element is maintenance and support or other
services, then the entire arrangement fee is recognized ratably over the performance period.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Product Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize our product revenue upon shipment, provided all other revenue recognition
criteria have been met. Our desktop application products’ revenue from distributors is subject to
agreements allowing limited rights of return, rebates and price protection. Our direct sales and
OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized
for estimated future returns, price protection and rebates at the time the related revenue is
recorded. The estimates for returns are adjusted periodically based upon historical rates of
returns, inventory levels in the distribution channel and other related factors.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We record the estimated costs of providing free technical phone support to customers for our
software products.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating
our software, provided collection of such revenue is deemed probable. For certain OEM customers, we
must estimate royalty revenue due to the timing of securing customer information. This estimate is
based on a combination of our generated forecasts and actual historical reporting by our OEM
customers. To substantiate our ability to estimate revenue, we review license royalty revenue
reports ultimately received from our significant OEM customers in comparison to the amounts
estimated in the prior period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our product-related deferred revenue includes maintenance upgrade revenue and customer
advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application
products is included in our product revenue line item as the maintenance primarily entitles
customers to receive product upgrades. In cases where we provide a specified free upgrade to an
existing product, we defer the fair value for the specified upgrade right until the future
obligation is fulfilled or when the right to the specified free upgrade expires.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Services and Support Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our services and support revenue is composed of consulting, training and maintenance and
support, primarily related to the licensing of our Enterprise and Mobile and Device Solutions
products. Our support revenue also includes technical support and developer support to partners and
developer organizations related to our desktop products.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We recognize revenue for hosting services that are based on a committed number of
transactions, including implementation and set-up fees, ratably beginning on the date the customer
commences use of our services and continuing through the end of the customer term. Over-usage fees,
and fees billed based on the actual number of transactions from which we capture data, are billed
in accordance with contract terms as these fees are incurred. We record amounts that have been
invoiced in accounts receivable and in deferred revenue or revenue, depending on whether the
revenue recognition criteria have been met.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our consulting revenue is primarily recognized using the proportionate performance method and
is measured monthly
based on input measures, such as hours incurred to date compared to total estimated hours to
complete, with consideration given to output measures, such as contract milestones when applicable.
Our maintenance and support offerings, which entitle customers to receive product upgrades and
enhancements or technical support, depending on the offering, are recognized ratably over the
performance period of the arrangement.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Rights of Return, Rebates and Price Protection</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As discussed above, we offer limited rights of return, rebates and price protection of our
products under various policies and programs with our distributors, resellers and/or end-user
customers. We estimate and record reserves for these programs as an offset to revenue. Below is a
summary of each of the general provisions in our contracts:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Distributors are allowed limited rights of return of products purchased during the
previous quarter. In addition, distributors are allowed to return products that have
reached the end of their lives and products that are being replaced by new versions.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>We offer rebates to our distributors, resellers and/or end user customers. The amount of
revenue that is reduced for distributor and reseller rebates is based on actual performance
against objectives set forth by us for a particular reporting period (volume, timely
reporting, etc.). If mail-in or other promotional rebates are offered, the amount of
revenue reduced is based on the dollar amount of the rebate, taking into consideration an
estimated redemption rate calculated using historical trends.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>From time to time, we may offer price protection to our distributors that allow for the
right to a credit if we permanently reduce the price of a software product. The amount of
revenue that is reduced for price protection is calculated as the difference between the
old and new price of a software product on inventory held by the distributor prior to the
effective date of the decrease.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Although our subscription contracts are generally non-cancelable, a limited number of
customers have the right to cancel their contracts by providing prior written notice to us of their
intent to cancel the remainder of the contract term. In the event a customer cancels its contract,
they are not entitled to a refund for prior services we have provided to them.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On a quarterly basis, the amount of revenue that is reserved for future returns is calculated
based on our historical trends and data specific to each reporting period. We review the actual
returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate.
We then apply the historical rate to the current period revenue as a basis for estimating future
returns. When necessary, we also provide a specific returns reserve for product in the distribution
channel in excess of estimated requirements. This estimate can be affected by the amount of a
particular product in the channel, the rate of sell-through, product plans and other factors.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Revenue Reserve</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Revenue reserve rollforward (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55,526</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">6,566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount charged to revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">113,009</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">153,129</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">156,761</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual returns
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136,117</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(145,718</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(168,755</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34,401</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Deferred Revenue</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Deferred revenue consist of billings or payments received in advance of revenue recognition
for our products and services described above. We recognize deferred
revenue as revenue only when the
revenue recognition criteria are met.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Taxes Collected from Customers</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We net taxes collected from customers against those remitted to government authorities in our
financial statements. Accordingly, taxes collected from customers are
not reported as revenue.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Advertising Expenses</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Advertising costs are expensed as incurred. Advertising expenses for fiscal 2009, 2008 and
2007 were $67.0 million, $67.1 million and $45.3 million, respectively.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Foreign Currency and Other Hedging Instruments</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In countries outside the United States (“U.S.”), we transact business in U.S. dollars and in various other
currencies. In Europe and Japan, transactions that are denominated in Euro and Yen are subject to
exposure from movements in exchange rates. We hedge our net recognized foreign currency assets and
liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash
flows will be adversely affected by changes in exchange rates. We use foreign exchange option and
forward contracts for Euro- and Yen-denominated revenue.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We account for our derivative instruments as either assets or liabilities on the balance sheet
and measure them at fair value. Gains and losses resulting from changes in fair value are accounted
for depending on the use of the derivative and whether it is designated and qualifies for hedge
accounting. Derivatives that do not qualify for hedge accounting are adjusted to fair value
through earnings. <i>See Note 5 for information regarding our hedging activities.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Gains and losses from foreign exchange forward contracts which hedge certain balance sheet
positions, primarily non-functional currency denominated assets and liabilities (e.g., trade
receivables and accounts payable) are recorded each period as a component of interest and other
income, net in our Consolidated Statements of Income. Foreign exchange forward and option contracts
hedging forecasted non-functional currency product licensing revenue, are designated as cash flow
hedges under accounting for derivative instruments and hedging activities, with gains and losses
recorded net of tax, as a component of other comprehensive income in stockholders’ equity and
reclassified into revenue at the time the forecasted transactions occur.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Income Taxes</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We use the asset and liability method of accounting for income taxes. Under this method,
income tax expense is recognized for the amount of taxes payable or refundable for the current
year. In addition, deferred tax assets and liabilities are recognized for expected future tax
consequences of temporary differences between the financial reporting and tax bases of assets and
liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance
to reduce deferred tax assets to an amount for which realization is more likely than not.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Recent Accounting Pronouncements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In October 2009, the Financial Accounting Standards Board (“FASB”) issued new revenue
recognition standards for arrangements with multiple deliverables, where certain of those
deliverables are non-software related. The new standards permit entities to initially use
management’s best estimate of selling price to value individual deliverables when those
deliverables do not have VSOE of fair value or when third-party evidence is not available.
Additionally, these new standards modify the manner in which the transaction consideration is
allocated across the separately identified deliverables by no longer permitting the residual method
of allocating arrangement consideration. These new standards are effective for annual periods
ending after June 15, 2010 and are effective for us beginning in the first quarter of fiscal 2011,
however early adoption is permitted. We are currently evaluating the impact of adopting these new
standards on our consolidated financial position, results of operations and cash flows, including
possible early adoption.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued the FASB Accounting Standards Codification (the
“Codification”) for financial statements issued for interim and annual periods ending after
September 15, 2009, which was effective for us beginning in the fourth quarter of fiscal 2009. The
Codification became the single authoritative source for GAAP. Accordingly, previous references to
GAAP accounting standards are no longer used in our disclosures, including these Notes to the
Consolidated Financial Statements. The Codification does not affect our consolidated financial
position, cash flows, or results of operations.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, the FASB issued amended standards for determining whether to consolidate a
variable interest entity. These new standards amend the evaluation criteria to identify the
primary beneficiary of a variable interest entity and requires ongoing reassessment of whether an
enterprise is the primary beneficiary of the variable interest entity. The provisions of the new
standards are effective for annual reporting periods beginning after November 15, 2009 and interim
periods within those fiscal years. These standards will be effective for us beginning in the first
quarter of fiscal 2010. The adoption of the new standards will not have an impact on our
consolidated financial position, results of operations and cash flows.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In May 2009, the FASB issued new standards for subsequent events, which establishes general
standards of accounting for and disclosure of events that occur after the balance sheet date but
before financial statements are issued or are available to be issued. The new standards are
effective for interim and annual reporting periods ending after June 15, 2009. We adopted the new
standards during the third quarter of fiscal 2009 and, as the pronouncement only requires
additional disclosures, the adoption did not have an impact on our consolidated financial position,
results of operations or cash flows. We have evaluated subsequent events through January 22, 2010,
the date that these financial statements were issued.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued new standards for the recognition and measurement of
other-than-temporary impairments for debt securities which replaced the pre-existing “intent and
ability” indicator. These new standards specify that if the fair value of a debt security is less
than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances
where (1) an entity has an intent to sell the security, (2) it is more likely than not that the
entity will be required to sell the security before recovery of its amortized cost basis, or (3)
the entity does not expect to recover the entire amortized cost basis of the security (that is, a
credit loss exists). Other-than-temporary impairments are separated into amounts representing
credit losses which are recognized in earnings and amounts related to all other factors which are
recognized in other comprehensive income (loss). We adopted these standards in the third quarter of
fiscal 2009 and they did not have a material effect on our consolidated financial position, results
of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2009, the FASB issued new standards which provide guidance on how to determine the
fair value of assets and liabilities when the volume and level of activity for the asset or
liability has significantly decreased. These new standards also provide guidance on identifying
circumstances that indicate a transaction is not orderly. In addition, we are required to disclose
in interim as well as annual reporting periods the inputs and valuation techniques used to measure
fair value and discussion of changes in valuation techniques. We adopted these standards in the
third quarter of fiscal 2009 and they did not have a material effect on our consolidated financial
position, results of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In September 2008, the FASB issued additional guidance which requires additional disclosures
by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments.
This new guidance also amends previous guidance related to accounting for guarantees to require
additional disclosure about the current status of the payment/performance risk of a guarantee.
These new provisions are effective for reporting periods ending after November 15, 2008. These
provisions further clarify the effective date of new disclosure requirements regarding derivative
instruments and hedging activities. We adopted these disclosures requirements in the first quarter
of fiscal 2009. Since the new guidance only required additional disclosures, the adoption did not
impact our consolidated financial position, results of operations or cash flows.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In April 2008, the FASB issued new standards which provided guidance on how to determine the
useful life of intangible assets by amending the factors an entity should consider in developing
renewal or extension assumptions used in determining the useful life of recognized intangible
assets. This new guidance applies prospectively to intangible assets that are acquired individually
or with a group of other assets in business combinations and asset acquisitions. These standards
are effective for financial statements issued for fiscal years beginning after December 15, 2008
and interim periods within those fiscal years and is effective for us beginning in the first
quarter of fiscal 2010. Early adoption is not permitted. As this guidance is to be applied
prospectively, on adoption, there will be no impact to our current consolidated financial
statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In March 2008, the FASB issued new standards which requires companies with derivative
instruments to disclose information that should enable financial statement users to understand how
and why a company uses derivative instruments, how derivative instruments and related hedged items
are accounted for and how derivative instruments and related hedged items affect a company’s
financial position, financial performance and cash flows. We adopted these new standards in the
first quarter of fiscal 2009. Since the new standards only required additional disclosure, the
adoption did not impact our consolidated financial position, results of operations or cash flows.
<i>See Note 5 for further information regarding derivative instruments and related hedged items.</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In
December 2007, the FASB revised their guidance for business combinations and non-controlling
interests. The new standards will change how business acquisitions are accounted for and will
impact financial statements both on the acquisition date and in subsequent periods. The changes
also impact the accounting and reporting for minority interests, which will be recharacterized as
non-controlling interests and classified as a component of equity. The new standards are effective
for us beginning in the first quarter of fiscal 2010. Early adoption is not permitted. We are
currently evaluating the impact the new standards will have on our consolidated financial
statements however, we currently believe that depending on the size and frequency of acquisitions,
the adoption of these standards may have a material effect on our
future consolidated financial statements
as more costs associated with acquisitions will be required to be expensed rather than accounted
for as part of the purchase price.
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     We maintain an allowance for doubtful accounts which reflects our best estimate of potentially
uncollectible trade receivables. We regularly review our trade receivables allowances by
considering such factors as historical experience, credit-worthiness, the age of the trade
receivable balances and current economic conditions that may affect a customer’s ability to pay and
we specifically reserve for those deemed uncollectible.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,798</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">9,421</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Charged (credited) to operating expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">2,841</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,414</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,367</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Preference claim, credited to operating expense
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,000</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deductions<sup style="font-size: 85%; vertical-align: text-top">(*)</sup>
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(165</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,684</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,033</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">15,225</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,128</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,398</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(*)</sup></td>
<td> </td>
<td>Deductions related to the allowance for doubtful accounts represent amounts written
off against the allowance, less recoveries.</td>
</tr>
</table>
</div>
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<!-- Begin Block Tagged Note Table: adbe-20091127_note1_table24 - adbe:AmortizationOfIntangibleAssetsOverTheirEstimatedUsefulLifeTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Our intangible assets are amortized over their estimated useful lives of 1 to 13 years as
shown in the table below. Amortization is based on the pattern in which the economic benefits of
the intangible asset will be consumed.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Useful Life (years)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchased technology
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Localization
</div></td>
<td> </td>
<td> </td>
<td align="right">1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">10</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other intangibles
</div></td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Revenue reserve rollforward (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2007</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55,526</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Increase due to acquisition
</div></td>
<td> </td>
<td> </td>
<td align="right">6,566</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Amount charged to revenue
</div></td>
<td> </td>
<td> </td>
<td align="right">113,009</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">153,129</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">156,761</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Actual returns
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(136,117</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(145,718</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(168,755</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">34,401</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">50,943</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43,532</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Assets acquired and liabilities assumed were recorded at their fair values as of October 23,
2009. The total $1.8 billion purchase price was comprised of the following (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Acquisition of approximately 79 million shares of outstanding common stock of Omniture at
$21.50 per share in cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,698,926</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated fair value of earned stock options and restricted stock units assumed and converted
</div></td>
<td> </td>
<td> </td>
<td align="right">84,968</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated direct transaction costs
</div></td>
<td> </td>
<td> </td>
<td align="right">13,964</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total purchase price
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,797,858</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: adbe-20091127_note2_table2 - adbe:PurchasePriceAllocationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The table below represents the allocation of the preliminary purchase price to the acquired
net assets of Omniture based on their estimated fair values as of October 23, 2009 and the
associated estimated useful lives at that date. The preliminary allocation of the purchase price
was based upon a preliminary valuation and our estimates and assumptions are subject to change
within the purchase price allocation period as valuations are finalized.
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Weighted</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Useful Life</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><b>(in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(years)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net tangible assets
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">31,138</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Identifiable intangible assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Existing technology
</div></td>
<td> </td>
<td> </td>
<td align="right">176,100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Customer contracts and relationships
</div></td>
<td> </td>
<td> </td>
<td align="right">167,900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Contract backlog
</div></td>
<td> </td>
<td> </td>
<td align="right">52,100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Non-competition agreements
</div></td>
<td> </td>
<td> </td>
<td align="right">900</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Trademarks
</div></td>
<td> </td>
<td> </td>
<td align="right">41,000</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">In-process research and development
</div></td>
<td> </td>
<td> </td>
<td align="right">4,600</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">1,334,980</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Restructuring liability
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10,860</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">N/A</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total estimated purchase price allocation
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,797,858</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: adbe-20091127_note2_table3 - us-gaap:BusinessAcquisitionProFormaInformationTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following pro forma financial information for fiscal 2009 and 2008 combines the historical
results for Adobe for the years ended November 27, 2009 and November 28, 2008 and the historical
results of Omniture for the period January 1, 2009 through October 23, 2009 and the year ended December 31, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3,168,731</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3,835,799</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">308,904</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">742,749</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Basic net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.59</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.38</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used in computing basic net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">524,470</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">539,373</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted net income per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.58</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.35</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Shares used in computing diluted net income per share
</div></td>
<td> </td>
<td> </td>
<td align="right">531,293</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">549,883</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: adbe-20091127_note3_table1 - adbe:CashCashEquivalentsAndShortTermInvestmentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Cash, cash equivalents and short-term investments consisted of the following as of November
27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">75,110</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">75,110</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash equivalents:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">884,240</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">884,240</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Bank deposits
</div></td>
<td> </td>
<td> </td>
<td align="right">40,137</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,137</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">924,377</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">924,377</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">999,487</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">999,487</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Short-term investments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">373,180</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,199</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">376,378</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">United States government agency bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">59,447</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">59,720</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Government guaranteed bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">221,730</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,409</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">225,138</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">185,735</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4,702</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">190,437</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of foreign governments
</div></td>
<td> </td>
<td> </td>
<td align="right">23,022</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">397</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">23,419</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Bonds of multi-lateral government agencies
</div></td>
<td> </td>
<td> </td>
<td align="right">24,598</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">269</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">24,867</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right">887,712</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12,249</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">899,959</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other marketable equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">2,527</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,500</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,027</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total short-term investments
</div></td>
<td> </td>
<td> </td>
<td align="right">890,239</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,749</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">904,986</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total cash, cash equivalents and short-term investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">1,889,726</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">14,749</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">1,904,473</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt">
<b>
</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     Cash, cash equivalents and short-term investments consisted of the following as of
November 28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Estimated</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">117,681</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">117,681</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Cash equivalents:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Money market mutual funds
</div></td>
<td> </td>
<td> </td>
<td align="right">682,148</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">682,148</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Bank deposits
</div></td>
<td> </td>
<td> </td>
<td align="right">40,594</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40,594</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">35,992</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35,999</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">10,028</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10,028</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">768,762</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">768,769</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Total cash and cash equivalents
</div></td>
<td> </td>
<td> </td>
<td align="right">886,443</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">886,450</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Short-term investments:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">United States treasury notes
</div></td>
<td> </td>
<td> </td>
<td align="right">863,772</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14,384</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">878,155</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Corporate bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">109,415</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">219</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(997</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">108,637</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Obligations of foreign governments
</div></td>
<td> </td>
<td> </td>
<td align="right">115,316</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">811</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(33</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">116,094</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Bonds of multi-lateral government agencies
</div></td>
<td> </td>
<td> </td>
<td align="right">26,559</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">260</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26,819</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Subtotal
</div></td>
<td> </td>
<td> </td>
<td align="right">1,115,062</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,674</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,129,705</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other marketable equity securities
</div></td>
<td> </td>
<td> </td>
<td align="right">2,773</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">274</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,047</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total short-term investments
</div></td>
<td> </td>
<td> </td>
<td align="right">1,117,835</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,948</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1,132,752</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total cash, cash equivalents and short-term investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,004,278</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15,955</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1,031</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">2,019,202</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>See Note 4 for
further information regarding the fair value of our financial instruments</i>.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note Table: adbe-20091127_note3_table2 - us-gaap:AvailableForSaleSecuritiesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the fair value and gross unrealized losses related to
available-for-sale securities, aggregated by investment category and length of time that individual
securities have been in a continuous unrealized loss position, at November 27, 2009 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less Than 12 Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">United States
treasury notes and agency
bonds
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">11,179</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">11,179</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Government guaranteed bonds
</div></td>
<td> </td>
<td> </td>
<td align="right">5,041</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">5,041</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16,220</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">16,220</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As of November 27, 2009, there were no securities in a continuous unrealized loss position for
more than twelve months. There were 4 securities that were in an unrealized loss position at
November 27, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table summarizes the fair value and gross unrealized losses related to
available-for-sale securities, aggregated by investment category and length of time that individual
securities have been in a continuous unrealized loss position, at November 28, 2008 (in thousands):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less Than 12 Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </t