Document and Company Informatio
Document and Company Information (USD $) | |||
9 Months Ended
Aug. 28, 2009 | Sep. 25, 2009
| May. 29, 2009
| |
Document And Company Information [Abstract] | |||
Entity Registrant Name | ADOBE SYSTEMS INC | ||
Entity Central Index Key | 0000796343 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-08-28 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --11-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $12,843,687,113 | ||
Entity Common Stock, Shares Outstanding | 523,760,118 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (USD $) | ||
In Thousands | Aug. 28, 2009
| Nov. 28, 2008
|
Current assets: | ||
Cash and cash equivalents | $1,132,144 | $886,450 |
Short-term investments | 1,424,317 | 1,132,752 |
Trade receivables, net of allowances for doubtful accounts of $6,153 and $4,128, respectively | 281,807 | 467,234 |
Deferred income taxes | 72,163 | 110,713 |
Prepaid expenses and other current assets | 80,503 | 137,954 |
Total current assets | 2,990,934 | 2,735,103 |
Property and equipment, net | 335,752 | 313,037 |
Goodwill | 2,125,946 | 2,134,730 |
Purchased and other intangibles, net | 117,384 | 214,960 |
Investment in lease receivable | 207,239 | 207,239 |
Other assets | 184,705 | 216,529 |
Total assets | 5,961,960 | 5,821,598 |
Current liabilities: | ||
Trade payables | 48,416 | 55,840 |
Accrued expenses | 349,077 | 399,969 |
Accrued restructuring | 8,230 | 35,690 |
Income taxes payable | 20,332 | 27,136 |
Deferred revenue | 188,328 | 243,964 |
Total current liabilities | 614,383 | 762,599 |
Long-term liabilities: | ||
Debt | 350,000 | 350,000 |
Deferred revenue | 29,866 | 31,356 |
Accrued restructuring | 4,967 | 6,214 |
Income taxes payable | 137,296 | 123,182 |
Deferred income taxes | 105,597 | 117,328 |
Other liabilities | 25,293 | 20,565 |
Total liabilities | 1,267,402 | 1,411,244 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 2,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.0001 par value; 900,000 shares authorized; 600,834 shares issued; 524,665 and 526,111 shares outstanding, respectively | 61 | 61 |
Additional paid-in-capital | 2,303,342 | 2,396,819 |
Retained earnings | 5,331,957 | 4,913,406 |
Accumulated other comprehensive income | 21,728 | 57,222 |
Treasury stock, at cost (76,169 and 74,723 shares, respectively), net of reissuances | (2,962,530) | (2,957,154) |
Total stockholders' equity | 4,694,558 | 4,410,354 |
Total liabilities and stockholders' equity | $5,961,960 | $5,821,598 |
1_Condensed Consolidated Balanc
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Thousands, unless otherwise specified | Aug. 28, 2009
| Nov. 28, 2008
|
Allowances for doubtful accounts | $6,153 | $4,128 |
Preferred stock, par value | 0.0001 | 0.0001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.0001 | 0.0001 |
Common stock, shares authorized | 900,000 | 900,000 |
Common stock, shares issued | 600,834 | 600,834 |
Common stock, shares outstanding | 524,665 | 526,111 |
Treasury stock, shares | 76,169 | 74,723 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 |
Revenue: | ||||
Products | $649,865 | $838,813 | $2,052,119 | $2,532,076 |
Services and support | 47,642 | 48,444 | 136,451 | 132,512 |
Total revenue | 697,507 | 887,257 | 2,188,570 | 2,664,588 |
Cost of revenue: | ||||
Products | 49,365 | 84,623 | 164,041 | 202,657 |
Services and support | 15,682 | 26,228 | 50,367 | 73,535 |
Total cost of revenue | 65,047 | 110,851 | 214,408 | 276,192 |
Gross profit | 632,460 | 776,406 | 1,974,162 | 2,388,396 |
Operating expenses: | ||||
Research and development | 138,902 | 170,124 | 427,289 | 508,909 |
Sales and marketing | 231,320 | 271,439 | 724,020 | 813,399 |
General and administrative | 79,593 | 97,156 | 224,462 | 257,163 |
Restructuring charges | 65 | 1,194 | 15,866 | 2,625 |
Amortization of purchased intangibles | 14,978 | 17,024 | 45,654 | 51,222 |
Total operating expenses | 464,858 | 556,937 | 1,437,291 | 1,633,318 |
Operating income | 167,602 | 219,469 | 536,871 | 755,078 |
Non-operating income (expense): | ||||
Interest and other income, net | 6,667 | 9,338 | 24,753 | 34,778 |
Interest expense | (460) | (2,390) | (1,872) | (8,027) |
Investment gains (losses), net | 607 | 2,097 | (18,444) | 20,335 |
Total non-operating income (expense), net | 6,814 | 9,045 | 4,437 | 47,086 |
Income before income taxes | 174,416 | 228,514 | 541,308 | 802,164 |
Provision for income taxes | 38,371 | 36,906 | 122,757 | 176,267 |
Net income | $136,045 | $191,608 | $418,551 | $625,897 |
Basic net income per share | 0.26 | 0.36 | 0.79 | 1.15 |
Shares used in computing basic net income per share | 525,911 | 531,060 | 528,015 | 542,624 |
Diluted net income per share | 0.26 | 0.35 | 0.79 | 1.13 |
Shares used in computing diluted net income per share | 531,809 | 541,311 | 532,846 | 552,739 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (USD $) | ||
In Thousands | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 |
Cash flows from operating activities: | ||
Net income | $418,551 | $625,897 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 197,386 | 202,841 |
Stock-based compensation | 126,231 | 137,613 |
Deferred income taxes | 22,671 | 34,336 |
Unrealized losses (gains) on investments | 13,308 | (9,690) |
Retirements of property and equipment | 3,435 | 185 |
Tax benefit from employee stock option plans | 2,711 | 83,740 |
Provision for losses on trade receivables | 3,049 | 3,870 |
Other non-cash items | 2,464 | 2,709 |
Excess tax benefits from stock-based compensation | (84) | (23,635) |
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | ||
Trade receivables | 182,377 | (13,695) |
Prepaid expenses and other current assets | 15,663 | 2,044 |
Trade payables | (7,424) | (3,574) |
Accrued expenses | (44,351) | (43,996) |
Accrued restructuring | (27,527) | (5,418) |
Income taxes payable | 12,619 | (73,957) |
Deferred revenue | (57,126) | 23,163 |
Net cash provided by operating activities | 863,953 | 942,433 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (1,142,015) | (840,782) |
Maturities of short-term investments | 333,219 | 520,784 |
Proceeds from sales of short-term investments | 504,958 | 486,904 |
Purchases of property and equipment | (84,659) | (88,481) |
Acquisitions, net of cash acquired | 0 | 485 |
Purchases of long-term investments and other assets | (24,891) | (102,085) |
Proceeds from sale of long-term investments | 4,909 | 18,085 |
Other | 3,271 | 0 |
Net cash used for investing activities | (405,208) | (5,090) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (350,013) | (1,422,735) |
Proceeds from issuance of treasury stock | 122,219 | 301,454 |
Excess tax benefits from stock-based compensation | 84 | 23,635 |
Proceeds from borrowings under credit facility | 0 | 450,000 |
Repayments of borrowings under credit facility | 0 | (100,000) |
Net cash used for financing activities | (227,710) | (747,646) |
Effect of foreign currency exchange rates on cash and cash equivalents | 14,659 | (1,856) |
Net increase in cash and cash equivalents | 245,694 | 187,841 |
Cash and cash equivalents at beginning of period | 886,450 | 946,422 |
Cash and cash equivalents at end of period | 1,132,144 | 1,134,263 |
Supplemental disclosures: | ||
Cash paid for income taxes, net of refunds | 78,635 | 129,320 |
Cash paid for interest | $453 | $2,311 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We have prepared the accompanying unaudited Condensed Consolidated Financial Statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In managements opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended November28, 2008 on file with the SEC. There have been no material changes in our significant accounting policies, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended November28, 2008. Recent Accounting Pronouncements With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the nine months ended August28, 2009, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended November28, 2008, that are of significance, or potential significance, to us. In June2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No.168, The FASB Accounting Standards Codification and the Hierarchy of GAAP, a replacement of SFAS No.162 (SFAS 168). SFAS 168 will become the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009 and will be effective for us beginning in the fourth quarter of fiscal 2009. On the effective date of SFAS 168, it will supersede all then-existing non-SEC accounting and reporting standards. As SFAS 168 is not intended to change or alter existing GAAP, it is not expected to have any impact on our consolidated financial statements and will only impact references for accounting guidance. In June2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation (FIN) No. 46(R) (SFAS 167), which amends 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 SFAS 167 are effective for interim and annual reporting periods ending after November15, 2009 and will be effective for us beginning in the fourth quarter of fiscal 2009. We are currently evalu |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short Term Investments | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Cash Cash Equivalents And Short Term Investment [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | NOTE 2. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 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 or become free of trading restrictions within one year. 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. Gains are recognized when realized in our Condensed Consolidated Statements of Income. Losses are recognized as realized or when we have determined that an other-than-temporary decline in fair value has occurred. Gains and losses are determined using the specific identification method. Cash, cash equivalents and short-term investments consisted of the following as of August28, 2009 (in thousands): Carrying Unrealized Unrealized Estimated Value Gains Losses Fair Value Current assets: Cash $ 33,923 $ $ $ 33,923 Cash equivalents: Money market mutual funds 1,043,750 1,043,750 Bank deposits 49,451 49,451 United States treasury notes 5,021 (1 ) 5,020 Total cash equivalents 1,098,222 (1 ) 1,098,221 Total cash and cash equivalents 1,132,145 (1 ) 1,132,144 Short-term investments: United States treasury notes 749,616 5,164 (10 ) 754,770 United States government agency bonds 133,164 127 (21 ) 133,270 Government guaranteed bonds 265,448 1,724 (73 ) 267,099 Corporate bonds 204,126 3,626 (2 ) 207,750 Obligations of foreign governments 28,222 488 28,710 Bonds of multi-lateral government agencies 27,434 340 27,774 Subtotal 1,408,010 11,469 (106 ) 1,419,373 Other marketable equity securities 2,504 2,440 4,944 Total short-term investments 1,410,514 13,909 (106 ) 1,424,317 Total cash, cash equivalents and short-term investments $ 2,542,659 $ 13,909 $ (107 ) $ 2,556,461 Cash, cash equivalents and short-term investments consisted of the following as of November 28, 2008 (in thousands): Carrying Unrealized Unrealized Estimated Value Gains Losses Fair Value Current assets: Cash $ 117,681 $ $ $ 117,681 Cash equivalents: Money market mutual funds 682,148 |
Financial Instruments
Financial Instruments | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Financial Instruments [Abstract] | |
Financial Instruments | NOTE 3. FINANCIAL INSTRUMENTS 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 August28, 2009 (in thousands): Fair Value Measurements at Reporting Date Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 1,093,201 $ 1,093,201 $ $ Fixed income available-for-sale securities(2) 1,424,393 1,424,393 Available-for-sale equity securities(3) 4,944 4,944 Total current assets 2,522,538 1,098,145 1,424,393 Non-current assets: Investments of limited partnership(4) 34,705 34,705 Foreign currency derivatives(5) 4,688 4,688 Deferred compensation plan assets(4): Money market funds 770 770 Equity and fixed income mutual funds 7,754 7,754 Subtotal for deferred compensation plan assets 8,524 770 7,754 Total non-current assets 47,917 770 12,442 34,705 Total assets $ 2,570,455 $ 1,098,915 $ 1,436,835 $ 34,705 Liabilities: Foreign currency derivatives(6) $ 729 $ $ 729 $ Total liabilities $ 729 $ $ 729 $ The fair value of these financial assets and liabilities was determined using the following inputs at November28, 2008 (in thousands): Fair Value Measurements at Reporting Date Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 722,742 $ 722,742 $ $ Fixed income available-for-sale securities(2) 1,175,732 1,175,732 Available-for-sale equity securities(3) 3,047 3,047 Total current assets 1,901,521 725,789 1,175,732 Non-current assets: Investments of limited partnership(4) 39,004 251 38,753 Foreign currency derivatives(5) 49,848 49,848 Deferred compensation plan assets(4): Money market funds 704 704 Equity and fixed income mutual funds 6,856 |
Acquisitions
Acquisitions | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Acquisition [Abstract] | |
Acquisitions | NOTE 4. ACQUISITIONS On August 13, 2009, we entered into a definitive agreement related to a potential business combination. We completed this business combination subsequent to our quarter ended August 28, 2009 for cash consideration of approximately $35.3 million. This acquisition was not material to our consolidated balance sheets and results of operations. See Note 18 for further discussion of this transaction and for a discussion of the planned acquisition of Omniture, Inc. (Omniture). |
Goodwill and Purchased and Othe
Goodwill and Purchased and Other Intangibles | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Goodwill and Purchased and Other Intangibles [Abstract] | |
Goodwill and Purchased and Other Intangibles | NOTE 5. GOODWILL AND PURCHASED AND OTHER INTANGIBLES Goodwill as of August28, 2009 and November28, 2008 was $2.126billion and $2.135billion, respectively. The change includes reductions in goodwill of $7.5million related to the release of tax reserves associated with the acquisitions of Accelio and Macromedia in addition to a facility lease obligation adjustment of $1.7million related to Macromedia, offset in part by small foreign currency translation adjustments. Purchased and other intangible assets subject to amortization as of August28, 2009 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 405,830 $ (375,412 ) $ 30,418 Localization $ 24,441 $ (16,567 ) $ 7,874 Trademarks 130,925 (97,940 ) 32,985 Customer contracts and relationships 196,617 (150,754 ) 45,863 Other intangibles 800 (556 ) 244 Total other intangible assets $ 352,783 $ (265,817 ) $ 86,966 Total purchased and other intangible assets $ 758,613 $ (641,229 ) $ 117,384 Purchased and other intangible assets subject to amortization as of November28, 2008 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 411,408 $ (338,608 ) $ 72,800 Localization $ 23,751 $ (6,156 ) $ 17,595 Trademarks 130,925 (78,181 ) 52,744 Customer contracts and relationships 198,891 (127,520 ) 71,371 Other intangibles 800 (350 ) 450 Total other intangible assets $ 354,367 $ (212,207 ) $ 142,160 Total purchased and other intangible assets $ 765,775 $ (550,815 ) $ 214,960 Amortization expense related to purchased and other intangible assets was $34.4million and $109.7million for the three and nine months ended August28, 2009, respectively. Comparatively, amortization expense was $43.2million and $140.7million for the three and nine months ended August29, 2008, respectively. Of these amounts, $19.4million and $64.1million were included in cost of sales for the three and nine months ended August28, 2009, respectively, and $26.2million and $89.5million were included in cost of sales for the three and nine months ended August29, 2008, respectively. As of August28, 2009, we expect amortization expense in future periods to be as follows (in thousands): Other Purchased Intangible Fiscal year Technology Assets Remainder of 2009 $ 13,736 $ 20,133 2010 8,301 52,202 2011 4,994 12,444 2012 3,387 1,009 2013 789 Thereafter 389 Total expected amortization expense $ 30,418 $ 86,966 |
Other Assets
Other Assets | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Other Assets [Abstract] | |
Other Assets | NOTE 6. OTHER ASSETS Other assets as of August28, 2009 and November28, 2008 consisted of the following (in thousands): 2009 2008 Acquired rights to use technology $ 87,806 $ 90,643 Investments 61,110 76,589 Security and other deposits 8,655 16,087 Deferred compensation plan assets 8,524 7,560 Prepaid royalties 8,191 9,026 Restricted cash 4,089 7,361 Prepaid land lease 3,156 3,185 Prepaid rent 1,524 2,658 Other 1,650 3,420 Total other assets $ 184,705 $ 216,529 Included in investments are our indirect investments through our limited partnership interest in Adobe Ventures of approximately $34.7million and $39.0million as of August28, 2009 and November28, 2008, respectively, which is consolidated in accordance with FIN No.46R, a revision to FIN No.46, Consolidation of Variable Interest Entities, an interpretation of ARB No.51. 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. Our investment in Adobe Ventures does not have a significant impact on our condensed consolidated financial position, results of operations or cash flows. See Note 3 for further information regarding Adobe Ventures. Also included in investments are our direct investments in privately-held companies of approximately $26.4million and $37.6million as of August28, 2009 and November28, 2008, respectively, which are accounted for based on the cost method. We assess these investments for impairment in value as circumstances dictate. See Note 3 for further information regarding our cost method investments. We entered into a Purchase and Sale Agreement, effective May12, 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 $44.7million and closed on June16, 2009. We made an initial deposit of $7.0million which was included in security and other deposits as of November28, 2008 and the remaining balance was paid at closing. This deposit was held in escrow until closing and then applied to the purchase price. |
Accrued Expenses
Accrued Expenses | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Accrued Expenses [Abstract] | |
Accrued Expenses | NOTE 7. ACCRUED EXPENSES Accrued expenses as of August28, 2009 and November28, 2008 consisted of the following (in thousands): 2009 2008 Accrued compensation and benefits $ 141,814 $ 177,760 Taxes payable 7,924 21,760 Sales and marketing allowances 22,888 28,127 Other 176,451 172,322 Total accrued expenses $ 349,077 $ 399,969 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. |
Stock Based Compensation
Stock Based Compensation | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 8. STOCK-BASED COMPENSATION The assumptions used to value option grants during the three and nine months ended August28, 2009 and August29, 2008 were as follows: Three Months Nine Months 2009 2008 2009 2008 Expected life (in years) 3.7 3.8 3.5 3.6 3.0 3.8 2.3 4.7 Volatility 37 43 % 34 37 % 37 57 % 32 39 % Risk free interest rate 1.93 2.24 % 2.79 3.50 % 1.16 2.24 % 1.70 3.50 % The expected term of employee stock purchase plan (ESPP) shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three and nine months ended August28, 2009 and August29, 2008 were as follows: Three Months Nine Months 2009 2008 2009 2008 Expected life (in years) 0.5 2.0 0.5 2.0 0.5 2.0 0.5 2.0 Volatility 40 % 34 36 % 40 57 % 30 36 % Risk free interest rate 0.33 1.05 % 2.12 2.66 % 0.27 1.05 % 2.12 3.29 % Summary of Stock Options Option activity for the nine months ended August28, 2009 and the fiscal year ended November 28, 2008 was as follows (in thousands): 2009 2008 Beginning outstanding balance 40,704 47,742 Granted 4,914 5,462 Exercised (4,370 ) (9,983 ) Cancelled (2,699 ) (2,517 ) Ending outstanding balance 38,549 40,704 Information regarding stock options outstanding at August28, 2009 and August29, 2008 is summarized below: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Life Value(*) (thousands) Price (years) (millions) 2009 Options outstanding 38,549 $ 29.75 3.92 $ 176.9 Options vested and expected to vest 36,986 $ 29.78 3.84 $ 168.5 Options exercisable 26,573 $ 29.21 3.23 $ 127.8 2008 Options outstanding 42,070 $ 29.67 4.16 $ 554.5 Options vested and expected to vest 39,936 $ 29.29 4.07 $ 541.2 Options exercisable 27,252 $ 25.94 3.35 $ 460.3 (*) The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of August28, 2009 and August29, 2008 were $31.73 and $42.83, respectively. Summary of Employee Stock Purchase Plan Shares The weighted average subscription date fair value of shares under the ESPP during the nine months ended August28, 2009 and August29, 2008 was $5.40 and $9.03, respectively. Employees purchased 3.2million shares at an average price of $19.04 and 2.4million shares at an |
Employee Benefit Plan
Employee Benefit Plan | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plan | NOTE 9. EMPLOYEE BENEFIT PLAN Deferred Compensation Plan As of August28, 2009 and November28, 2008, the invested amounts under our Deferred Compensation Plan totaled $8.5million and $7.6million, respectively, and are recorded as other assets on our Condensed Consolidated Balance Sheets. As of August28, 2009 and November28, 2008, we recorded $8.5million and $7.6million, respectively, as a long-term liability to recognize undistributed deferred compensation due to employees. |
Restructuring Charges
Restructuring Charges | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Restructuring Charges [Abstract] | |
Restructuring Charges | NOTE 10. RESTRUCTURING CHARGES Fiscal 2008 Restructuring Charges 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 $29.2million related to termination benefits for the elimination of approximately 460 of the 560 full-time positions globally. Charges associated with these ongoing termination benefits were recorded in accordance with SFAS No.112, Employers Accounting for Postemployment Benefits. As of November28, 2008, $0.4million was paid. In the first quarter of 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. In accordance with SFAS No.146, Accounting for Costs Associated with Exit or Disposal Activities, we accrued $8.5million 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 $4.4million. We also recorded charges of $3.4million for termination benefits for the elimination of approximately 43 of the remaining 100 full-time positions expected to be terminated. In the second quarter of fiscal 2009, we accrued an additional $3.0million under this program for termination benefits related to the elimination of approximately 48 of the remaining 57 full-time positions expected to be terminated. In the third quarter of fiscal 2009, we accrued an additional $0.4million under this program for termination benefits related to the elimination of substantially all of the remaining full-time positions expected to be terminated. The following table sets forth a summary of Adobe restructuring activities during the nine months ended August28, 2009 (in thousands): Total Total Costs Costs Incurred Expected November 28, Costs Cash Other August 28, to to be 2008 Incurred Payments Adjustments 2009 Date Incurred Termination benefits $ 28,759 $ 6,722 $ (34,042 ) $ 174 $ 1,613 $ 36,102 $ 36,121 Cost of closing redundant facilities 8,514 (4,488 ) 613 4,639 9,127 9,601 Total $ 28,759 $ 15,236 $ (38,530 ) $ 787 $ 6,252 $ 45,229 $ 45,722 Accrued restructuring charges of approximately $6.3million at August28, 2009 include $3.3 million recorded in accrued r |
Stockholders Equity
Stockholders Equity | |
11/29/2008 - 8/28/2009
USD / shares | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE 11. STOCKHOLDERS EQUITY Stock Repurchase Program I 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. During the nine months ended August28, 2009 and August29, 2008, we entered into several structured repurchase agreements with large financial institutions, whereupon we provided the financial institutions with prepayments of $350.0million and $325.0million, 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. 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 the nine months ended August28, 2009, we repurchased approximately 9.9million shares at an average price of $25.31 through structured repurchase agreements, which included prepayments from fiscal 2008 and 2009. During the nine months ended August29, 2008, we repurchased 19.0million shares at an average price of $37.12 through structured repurchase agreements, which included prepayments from fiscal 2007. During the nine months ended August29, 2008, we also repurchased 0.75million shares at an average price of $39.19 in open market transactions. As of August28, 2009 and November28, 2008, prepayments were classified as treasury stock on our Condensed Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by the financial statement date are excluded from the denominator in the computation of earnings per share. As of August28, 2009 and August29, 2008, approximately $233.9 million and $41.0million, respectively, of up-front payments remained under the agreements. Stock Repurchase Program II Under this stock repurchase program, we had authorization to repurchase 50.0million shares of our common stock. From the inception of the 50.0million share authorization under this program, we provided prepayments of $1.9billion under structured share repurchase agreements to large financial institutions. During the third quarter of fiscal 2008, the remaining authorized number of shares were repurchased. During the nine months ended August29, 2008, we provided prepayments of $1.0billion and repurchased 31.9million shares through structured share repurchase agreements at an average p |
Comprehensive Income
Comprehensive Income | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Comprehensive Income [Abstract] | |
Comprehensive Income | NOTE 12. COMPREHENSIVE INCOME The following table sets forth the activity for each component of other comprehensive income, net of related taxes (income tax effects were insignificant for all periods presented), for the three and nine months ended August28, 2009 and August29, 2008 (in thousands): Three Months Nine Months 2009 2008 2009 2008 Net income $ 136,045 $ 191,608 $ 418,551 $ 625,897 Other comprehensive income (loss): Unrealized gains (losses)on available-for-sale securities 278 (1,954 ) 1,856 (11,158 ) Reclassification adjustment for (gains)losses on available-for-sale securities recognized during the period (2,449 ) (44 ) (5,026 ) 157 Unrealized (losses)gains on derivative instruments (329 ) 10,494 (14,516 ) 10,776 Reclassification adjustment for gainson derivative instruments recognized during the period (749 ) (27,138 ) Foreign currency translation adjustments (2,333 ) (6,358 ) 9,330 (4,284 ) Other comprehensive (loss)income (5,582 ) 2,138 (35,494 ) (4,509 ) Total other comprehensive income, net of taxes $ 130,463 $ 193,746 $ 383,057 $ 621,388 The following table sets forth the components of accumulated other comprehensive income, net of related taxes, as of August28, 2009 and November28, 2008 (in thousands): 2009 2008 Net unrealized gains on available-for-sale securities: Unrealized gains on available-for-sale securities 12,844 16,062 Unrealized losses on available-for-sale securities (107 ) (155 ) Total net unrealized gains on available-for-sale securities 12,737 15,907 Net unrealized gains on derivative instruments $ 96 $ 41,750 Cumulative foreign currency translation adjustments 8,895 (435 ) Total accumulated other comprehensive income, net of taxes $ 21,728 $ 57,222 |
Net Income Per Share
Net Income Per Share | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Net Income Per Share [Abstract] | |
Net Income Per Share | NOTE 13. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for the three and nine months ended August28, 2009 and August29, 2008 (in thousands, except per share data): Three Months Nine Months 2009 2008 2009 2008 Net income $ 136,045 $ 191,608 $ 418,551 $ 625,897 Shares used to compute basic net income per share 525,911 531,060 528,015 542,624 Dilutive potential common shares: Unvested restricted stock and performance share awards 1,940 1,063 1,696 991 Stock options 3,958 9,188 3,135 9,124 Shares used to compute diluted net income per share 531,809 541,311 532,846 552,739 Basic net income per share $ 0.26 $ 0.36 $ 0.79 $ 1.15 Diluted net income per share $ 0.26 $ 0.35 $ 0.79 $ 1.13 For the three and nine months ended August28, 2009, options to purchase approximately 24.5 million and 30.6million shares, respectively, of common stock with exercise prices greater than the average fair market value of our stock of $30.40 and $24.99, respectively, were not included in the calculation because the effect would have been anti-dilutive. Comparatively, for the three and nine months ended August29, 2008, options to purchase approximately 14.4million and 15.4million shares, respectively, of common stock with exercise prices greater than the average fair market value of our stock of $42.06 and $39.21, respectively, were not included in the calculation because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 14. COMMITMENTS AND CONTINGENCIES Lease Commitments 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. In August2004, 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 August2009. 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 $16.5million 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 $126.8million and a portion of the lease receivable from the lessor of the Almaden Tower for $80.4million, both of which are recorded as investments in lease receivables on our Condensed 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 any time during the lease term for approximately $143.2million and $103.6million, respectively. The residual value guarantees under the East and West Towers and the Almaden Tower obligations are $126.8million and $89.4million, respectively. These two leases are both subject to standard covenants including certain financial ratios that are reported to the lessors quarterly. As of August28, 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 under SFAS No.13, Accounting for Leases, and, as such, the buildings and the related obligations are not included on our Condensed Consolidated Balance Sheets. 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 |
Credit Agreement
Credit Agreement | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Credit Agreement [Abstract] | |
Credit Agreement | NOTE 15. CREDIT AGREEMENT In August2007, we entered into an Amendment to our Credit Agreement dated February2007 (the Amendment), which increased the total senior unsecured revolving facility from $500.0million to $1.0billion. 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 $500.0million in commitments, for a maximum aggregate facility of $1.5billion. In February2008, we entered into a Second Amendment to the Credit Agreement dated February 26, 2008, which extended the maturity date of the facility by one year to February16, 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. The facility contains a financial covenant requiring us not to exceed a certain maximum leverage ratio. At the Companys 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 both August28, 2009 and November28, 2008, the amount outstanding under the credit facility was $350.0million, which is included in long-term liabilities on our Condensed Consolidated Balance Sheets. As of August28, 2009, we were in compliance with all of the covenants. Subsequent to August 28, 2009, we borrowed an additional $650.0 million under the credit facility. See Note 18 for further discussion of this transaction. The carrying value of the outstanding liability approximates fair value. |
Non Operating Income
Non Operating Income (Expense) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Non-Operating Income (Expense) [Abstract] | |
Non-Operating Income (Expense) | NOTE 16. NON-OPERATING INCOME (EXPENSE) Non-operating income (expense)for the three and nine months ended August28, 2009 and August 29, 2008 included the following (in thousands): Three Months Nine Months 2009 2008 2009 2008 Interest and other income, net: Interest income $ 7,616 $ 14,407 $ 28,655 $ 45,110 Foreign exchange losses (3,545 ) (5,967 ) (9,621 ) (11,901 ) Realized gains on fixed income investment 2,449 85 5,027 1,184 Realized losseson fixed income investment (41 ) (1 ) (1,340 ) Other, net 147 854 693 1,725 Interest and other income, net $ 6,667 $ 9,338 $ 24,753 $ 34,778 Interest expense $ (460 ) $ (2,390 ) $ (1,872 ) $ (8,027 ) Investment gains (losses), net: Realized investment gains $ $ 2,861 $ 52 $ 18,298 Unrealized investment gains 2,019 2,882 3,396 7,840 Realized investment losses (1,362 ) (353 ) (3,347 ) (989 ) Unrealized investment losses (50 ) (3,293 ) (18,545 ) (4,814 ) Investment gains (losses), net $ 607 $ 2,097 $ (18,444 ) $ 20,335 Total non-operating income (expense), net $ 6,814 $ 9,045 $ 4,437 $ 47,086 |
Segments
Segments | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Segments [Abstract] | |
Segments | NOTE 17. SEGMENTS We have the following reportable segments: Creative Solutions, Knowledge Worker, Enterprise, Platform and Print and Publishing. 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 Flex Builder, and also encompasses products and technologies created and managed in other Adobe segments. Finally, the Print and Publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing, to our legacy type and original equipment manufacturer (OEM) printing businesses. 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. 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. 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. Creative Knowledge Print and (in thousands) Solutions Worker Enterprise Platform(*) Publishing Total Three months ended August28, 2009 Revenue $ 400,360 $ 154,517 $ 55,488 $ 44,935 $ 42,207 $ 697,507 Cost of revenue 34,903 9,870 10,957 4,946 4,371 65,047 Gross profit $ 365,457 $ 144,647 $ 44,531 $ 39,989 $ 37,836 $ 632,460 Gross profit as a percentage of revenue 91 % 94 % 80 % 89 % 90 % 91 % Three months ended August29, 2008 Revenue $ 493,615 $ 217,988 $ 65,491 $ 59,077 $ 51,086 $ 887,257 Cost of revenue 53,716 1 |
Subsequent Events
Subsequent Events | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18. SUBSEQUENT EVENTS Subsequent to August 28, 2009, we completed a business combination for cash consideration of approximately $35.3 million. This acquisition was not material to our consolidated balance sheets and results of operations. See Note 4 for further discussion of this transaction. In September 2009, we entered into a definitive agreement with Omniture under which we expect to acquire Omniture for approximately $1.8 billion. Under the terms of the agreement, we have commenced a tender offer to acquire all of the outstanding common stock of Omniture for $21.50 per share in cash. Omniture is an industry leader in Web analytics and online business optimization based in Orem, Utah. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the fourth quarter of our fiscal 2009. Following the closing, we intend to integrate Omniture as a new reportable segment for financial reporting purposes. Subsequent to August 28, 2009, we borrowed an additional $650.0 million under our credit facility to be used to fund a portion of our pending acquisition of Omniture. See Note 15 for further discussion of our credit facility. |
3_Summary of Significant Accoun
Summary of Significant Accounting Policies (Policies) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Summary Of Significant Accounting Policies Tables [Abstract] | |
Basis of presentation-Financial statements | We have prepared the accompanying unaudited Condensed Consolidated Financial Statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In managements opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended November28, 2008 on file with the SEC. |
Significant accounting policies | There have been no material changes in our significant accounting policies, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended November28, 2008. Recent Accounting Pronouncements With the exception of those discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the nine months ended August28, 2009, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended November28, 2008, that are of significance, or potential significance, to us. |
Adoption of SFAS 168 and its impact | In June2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No.168, The FASB Accounting Standards Codification and the Hierarchy of GAAP, a replacement of SFAS No.162 (SFAS 168). SFAS 168 will become the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009 and will be effective for us beginning in the fourth quarter of fiscal 2009. On the effective date of SFAS 168, it will supersede all then-existing non-SEC accounting and reporting standards. As SFAS 168 is not intended to change or alter existing GAAP, it is not expected to have any impact on our consolidated financial statements and will only impact references for accounting guidance. |
Adoption of SFAS 167 and its impact | In June2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation (FIN) No. 46(R) (SFAS 167), which amends 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 SFAS 167 are effective for interim and annual reporting periods ending after November15, 2009 and will be effective for us beginning in the fourth quarter of fiscal 2009. We are currently evaluating the impact of adopting SFAS 167 on our consolidated financial position, results of operations and cash flows. |
Adoption of SFAS 165 and its impact | In May2009, the FASB issued SFAS No.165, Subsequent Events (SFAS 165), 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 provisions of SFAS 165 are effective for interim and annual reporting periods ending after June15, 2009. We adopted SFAS 165 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 October1, 2009, the date that these financial statements were issued. |
Adoption of FSPs FAS 115-2 and FAS 124-2; FSP FAS 107-1 and APB 28-1; and FSP FAS 157-4 and their impact | In April2009, the FASB issued three related FASB Staff Positions (FSP): (i)FSP Financial Accounting Standard (FAS) No.115-2 and FAS No.124-2, Recognition of Presentation of Other-Than-Temporary Impairments (FSP FAS 115-2 and FAS 124-2), (ii)FSP FAS No.107-1 and Accounting Principles Board Opinion (APB) No.28-1, Interim Disclosures about Fair Value of Financial Instruments (FSP FAS 107-1 and APB 28-1), and (iii)FSP FAS No.157-4, Determining the Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP FAS 157-4), which are effective for interim and annual reporting periods ending after June15, 2009. FSP FAS 115-2 and FAS 124-2 amends the other-than-temporary impairment guidance in GAAP for debt securities to modify the requirement for recognizing other-than-temporary impairments, change the existing impairment model, and modify the presentation and frequency of related disclosures. FSP FAS 107-1 and APB 28-1 requires disclosures about fair value of financial instruments for interim reporting periods as well as in annual financial statements. FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with SFAS No.157, Fair Value Measurements (SFAS 157). We adopted these FSPs during 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. |
Adoption of FSP FAS 133-1 and FIN 45-4 and their impact | In September2008, the FASB issued FSP FAS No.133-1 and FIN No.45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of SFAS No.133 and FIN No.45; and Clarification of the Effective Date of SFAS No.161 (FSP FAS 133-1 and FIN 45-4). FSP FAS 133-1 and FIN 45-4 amends SFAS No.133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133) to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. FSP FAS 133-1 and FIN 45-4 also amend FIN No.45, Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness to Others, an interpretation of SFAS No.5, 57, and 107 and rescission of FIN No.34 (FIN 45), to require additional disclosure about the current status of the payment/performance risk of a guarantee. The provisions of the FSP that amend SFAS 133 and FIN 45 are effective for reporting periods ending after November15, 2008. FSP FAS 133-1 and FIN 45-4 also clarifies the effective date in SFAS No.161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of SFAS 133 (SFAS 161). We adopted the disclosures required by SFAS 161 in the first quarter of fiscal 2009. Since FSP FAS 133-1 and FIN 45-4 only required additional disclosures, the adoption did not impact our consolidated financial position, results of operations or cash flows. |
Adoption of FSP FAS No 142-3 and its impact | In April2008, the FASB issued FSP FAS No.142-3, Determination of the Useful Life of Intangible Assets (FSP 142-3). FSP 142-3 amends the factors an entity should consider in developing renewal or extension assumptions used in determining the useful life of recognized intangible assets under SFAS No.142, Goodwill and Other 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. FSP FAS 142-3 is effective for financial statements issued for fiscal years beginning after December15, 2008 and interim periods within those fiscal years. FSP FAS 142-3 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 is no impact to our current consolidated financial statements. |
Adoption of SFAS 161 and Its Impact | In March2008, the FASB issued SFAS 161 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 under SFAS 133 and how derivative instruments and related hedged items affect a companys financial position, financial performance and cash flows. We adopted SFAS 161 in the first quarter of fiscal 2009. Since SFAS 161 only required additional disclosure, the adoption did not impact our consolidated financial position, results of operations or cash flows. |
Adoption of SFAS 141 R and SFAS 160 and their impact | In December2007, the FASB issued SFAS No.141 (revised 2007), Business Combinations (SFAS 141R) and SFAS No.160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin (ARB) No.51 (SFAS 160). SFAS 141R will change how business acquisitions are accounted for and will impact financial statements both on the acquisition date and in subsequent periods. SFAS 160 will change the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and classified as a component of equity. SFAS 141R and SFAS 160 are effective for us beginning in the first quarter of fiscal 2010. Early adoption is not permitted. We are currently evaluating the impact that SFAS 141R and SFAS 160 will have on our consolidated financial statements. |
Adoption of SFAS 157 and Its Impact | In September2006, the FASB issued SFAS 157, which defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements. SFAS 157 does not require any new fair value measurements but rather eliminates inconsistencies in guidance found in various prior accounting pronouncements and is effective for fiscal years beginning after November15, 2007. Effective November29, 2008, we adopted SFAS 157 for all nonfinancial assets and nonfinancial liabilities measured at fair value on a non-recurring basis. Examples include goodwill, intangibles, and other long-lived assets. The adoption of SFAS 157 did not have a material impact on our consolidated financial position, results of operations or cash flows. |
4_Cash, Cash Equivalents and Sh
Cash, Cash Equivalents and Short Term Investments (Table) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Cash Cash Equivalents And Short Term Investments (Tables) [Abstract] | |
Cash, Cash Equivalents and Short-term Investments Current Year | Cash, cash equivalents and short-term investments consisted of the following as of August28, 2009 (in thousands): Carrying Unrealized Unrealized Estimated Value Gains Losses Fair Value Current assets: Cash $ 33,923 $ $ $ 33,923 Cash equivalents: Money market mutual funds 1,043,750 1,043,750 Bank deposits 49,451 49,451 United States treasury notes 5,021 (1 ) 5,020 Total cash equivalents 1,098,222 (1 ) 1,098,221 Total cash and cash equivalents 1,132,145 (1 ) 1,132,144 Short-term investments: United States treasury notes 749,616 5,164 (10 ) 754,770 United States government agency bonds 133,164 127 (21 ) 133,270 Government guaranteed bonds 265,448 1,724 (73 ) 267,099 Corporate bonds 204,126 3,626 (2 ) 207,750 Obligations of foreign governments 28,222 488 28,710 Bonds of multi-lateral government agencies 27,434 340 27,774 Subtotal 1,408,010 11,469 (106 ) 1,419,373 Other marketable equity securities 2,504 2,440 4,944 Total short-term investments 1,410,514 13,909 (106 ) 1,424,317 Total cash, cash equivalents and short-term investments $ 2,542,659 $ 13,909 $ (107 ) $ 2,556,461 |
Cash, Cash Equivalents and Short-term Investments Prior Year | Cash, cash equivalents and short-term investments consisted of the following as of November 28, 2008 (in thousands): Carrying Unrealized Unrealized Estimated Value Gains Losses Fair Value Current assets: Cash $ 117,681 $ $ $ 117,681 Cash equivalents: Money market mutual funds 682,148 682,148 Bank deposits 40,594 40,594 United States treasury notes 35,992 7 35,999 Corporate bonds 10,028 10,028 Total cash equivalents 768,762 7 768,769 Total cash and cash equivalents 886,443 7 886,450 Short-term investments: United States treasury notes 863,772 14,384 (1 ) 878,155 Corporate bonds 109,415 219 (997 ) 108,637 Obligations of foreign governments 115,316 811 (33 ) 116,094 Bonds of multi-lateral government agencies 26,559 260 26,819 Subtotal 1,115,062 15,674 (1,031 ) 1,129,705 Other marketable equity securities 2,773 274 3,047 Total short-term investments 1,117,835 15,948 (1,031 ) 1,132,752 Total cash, cash equivalents and short-term investments $ 2,004,278 $ 15,955 $ (1,031 ) $ 2,019,202 See Note 3 for further information regarding our financial instruments. |
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities Current Year | 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 August28, 2009 (in thousands): Less Than 12 Months Total Gross Gross Unrealized Unrealized Fair Value Losses Fair Value Losses United States treasury notes and agency bonds $ 108,878 $ (32 ) $ 108,878 $ (32 ) Government guaranteed bonds 23,084 (73 ) 23,084 (73 ) Corporate bonds 3,473 (2 ) 3,473 (2 ) Total $ 135,435 $ (107 ) $ 135,435 $ (107 ) |
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities Prior Year | 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 November28, 2008 (in thousands): Less Than 12 Months Total Gross Gross Unrealized Unrealized Fair Value Losses Fair Value Losses United States treasury notes $ 37,400 $ (1 ) $ 37,400 $ (1 ) Corporate bonds 67,606 (997 ) 67,606 (997 ) Obligations of foreign governments 28,033 (33 ) 28,033 (33 ) Total $ 133,039 $ (1,031 ) $ 133,039 $ (1,031 ) |
Cost and Estimated Fair Value of Debt Securities | The following table summarizes the cost and estimated fair value of debt securities classified as short-term investments based on stated maturities as of August28, 2009 (in thousands): Estimated Cost Fair Value Due within one year $ 772,898 $ 775,869 Due within two years 317,246 320,399 Due within three years 241,150 243,434 Due after three years 76,716 79,671 Total $ 1,408,010 $ 1,419,373 |
5_Financial Instruments
Financial Instruments (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Financial Instruments (Tables) [Abstract] | |
Financial Assets and Liabilities at Fair Value on Recurring Basis Current Year | 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 August28, 2009 (in thousands): Fair Value Measurements at Reporting Date Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 1,093,201 $ 1,093,201 $ $ Fixed income available-for-sale securities(2) 1,424,393 1,424,393 Available-for-sale equity securities(3) 4,944 4,944 Total current assets 2,522,538 1,098,145 1,424,393 Non-current assets: Investments of limited partnership(4) 34,705 34,705 Foreign currency derivatives(5) 4,688 4,688 Deferred compensation plan assets(4): Money market funds 770 770 Equity and fixed income mutual funds 7,754 7,754 Subtotal for deferred compensation plan assets 8,524 770 7,754 Total non-current assets 47,917 770 12,442 34,705 Total assets $ 2,570,455 $ 1,098,915 $ 1,436,835 $ 34,705 Liabilities: Foreign currency derivatives(6) $ 729 $ $ 729 $ Total liabilities $ 729 $ $ 729 $ |
Financial Assets and Liabilities at Fair Value on Recurring Basis Prior Year | The fair value of these financial assets and liabilities was determined using the following inputs at November28, 2008 (in thousands): Fair Value Measurements at Reporting Date Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 722,742 $ 722,742 $ $ Fixed income available-for-sale securities(2) 1,175,732 1,175,732 Available-for-sale equity securities(3) 3,047 3,047 Total current assets 1,901,521 725,789 1,175,732 Non-current assets: Investments of limited partnership(4) 39,004 251 38,753 Foreign currency derivatives(5) 49,848 49,848 Deferred compensation plan assets(4): Money market funds 704 704 Equity and fixed income mutual funds 6,856 6,856 Subtotal for deferred compensation plan assets 7,560 704 6,856 Total non-current assets 96,412 955 56,704 38,753 Total assets $ 1,997,933 $ 726,744 $ 1,232,436 $ 38,753 Liabilities: Foreign currency derivatives(6) $ 1,739 $ $ 1,739 $ Total liabilities $ 1,739 $ $ 1,739 $ (1) Included in cash and cash equivalents on our Condensed Consolidated Balance Sheets. (2) Included in either cash and cash equivalents or short-term investments on our Condensed Consolidated Balance Sheets. (3) Included in short-term investments on our Condensed Consolidated Balance Sheets. (4) Included in other assets on our Condensed Consolidated Balance Sheets. (5) Included in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (6) Included in accrued expenses on our Condensed Consolidated Balance Sheets. See Note 2 for further information regarding our financial instruments. |
Reconciliation Balances for Investments of Limited Partnership | A reconciliation of the beginning and ending balances for investments of limited partnership using significant unobservable inputs (Level 3) as of August28, 2009 and November28, 2008 was as follows (in thousands): Balance as of November28, 2008 $ 38,753 Purchases and sales of investments, net 966 Unrealized net investment losses included in earnings (5,014 ) Balance as of August28, 2009 $ 34,705 |
Fair Value of Derivative Instruments | The fair value of derivative instruments in our Condensed Consolidated Balance Sheets as of August28, 2009 were as follows (in thousands): Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives Balance Sheet Balance Sheet Location Fair Value Location Fair Value Derivatives designated as hedging instruments: Foreign exchange option contracts(*) Prepaid expense and other current assets $ 4,507 Accrued expenses $ Derivatives not designated as hedging instruments: Foreign exchange forward contracts Prepaid expense and other current assets 181 Accrued expenses 729 Total derivatives $ 4,688 $ 729 (*) Hedging effectiveness expected to be recognized to income within the next twelve months. |
Effect of Derivative Instruments as Cash Flow Hedges | The effect of derivative instruments designated as cash flow hedges and of derivative instruments not designated as hedges on our Condensed Consolidated Statements of Income for the three and nine months ended August28, 2009 were as follows (in thousands): Three Months Nine Months Foreign Foreign Foreign Foreign Exchange Exchange Exchange Exchange Option Forward Option Forward Contracts Contracts Contracts Contracts Derivatives in cash flow hedging relationships: Net gain (loss)recognized in OCI(1) $ (329 ) $ $ (14,516 ) $ Net gain (loss)reclassified from accumulated OCI into income(2) $ 749 $ $ 27,138 $ Net gain (loss)recognized in income(3) $ (3,734 ) $ $ (12,782 ) $ Derivatives not designated as hedging relationships: Net gain (loss)recognized in income(4) $ $ (1,650 ) $ $ (10,200 ) (1) Net change in the fair value of the effective portion classified in other comprehensive income (OCI). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income, net. (4) Classified in interest and other income, net. |
6_Goodwill and Purchased and Ot
Goodwill and Purchased and Other Intangibles (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Goodwill and Purchased and Other Intangibles (Tables) [Abstract] | |
Purchased and Other Intangible Assets Current Year | Purchased and other intangible assets subject to amortization as of August28, 2009 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 405,830 $ (375,412 ) $ 30,418 Localization $ 24,441 $ (16,567 ) $ 7,874 Trademarks 130,925 (97,940 ) 32,985 Customer contracts and relationships 196,617 (150,754 ) 45,863 Other intangibles 800 (556 ) 244 Total other intangible assets $ 352,783 $ (265,817 ) $ 86,966 Total purchased and other intangible assets $ 758,613 $ (641,229 ) $ 117,384 |
Purchased and Other Intangible Assets Prior Year | Purchased and other intangible assets subject to amortization as of November28, 2008 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 411,408 $ (338,608 ) $ 72,800 Localization $ 23,751 $ (6,156 ) $ 17,595 Trademarks 130,925 (78,181 ) 52,744 Customer contracts and relationships 198,891 (127,520 ) 71,371 Other intangibles 800 (350 ) 450 Total other intangible assets $ 354,367 $ (212,207 ) $ 142,160 Total purchased and other intangible assets $ 765,775 $ (550,815 ) $ 214,960 |
Amortization Expense in Future Periods | As of August28, 2009, we expect amortization expense in future periods to be as follows (in thousands): Other Purchased Intangible Fiscal year Technology Assets Remainder of 2009 $ 13,736 $ 20,133 2010 8,301 52,202 2011 4,994 12,444 2012 3,387 1,009 2013 789 Thereafter 389 Total expected amortization expense $ 30,418 $ 86,966 |
7_Other Assets
Other Assets (Table) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Other Asset (Table) [Abstract] | |
Other Assets | Other assets as of August28, 2009 and November28, 2008 consisted of the following (in thousands): 2009 2008 Acquired rights to use technology $ 87,806 $ 90,643 Investments 61,110 76,589 Security and other deposits 8,655 16,087 Deferred compensation plan assets 8,524 7,560 Prepaid royalties 8,191 9,026 Restricted cash 4,089 7,361 Prepaid land lease 3,156 3,185 Prepaid rent 1,524 2,658 Other 1,650 3,420 Total other assets $ 184,705 $ 216,529 |
8_Accrued Expenses
Accrued Expenses (Table) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Accrued Expenses (Table) [Abstract] | |
Accrued Expenses | Accrued expenses as of August28, 2009 and November28, 2008 consisted of the following (in thousands): 2009 2008 Accrued compensation and benefits $ 141,814 $ 177,760 Taxes payable 7,924 21,760 Sales and marketing allowances 22,888 28,127 Other 176,451 172,322 Total accrued expenses $ 349,077 $ 399,969 |
9_Stock Based Compensation
Stock Based Compensation (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Stock Based Compensation (Tables) [Abstract] | |
Assumptions Used to Value Option Grants | The assumptions used to value option grants during the three and nine months ended August28, 2009 and August29, 2008 were as follows: Three Months Nine Months 2009 2008 2009 2008 Expected life (in years) 3.7 3.8 3.5 3.6 3.0 3.8 2.3 4.7 Volatility 37 43 % 34 37 % 37 57 % 32 39 % Risk free interest rate 1.93 2.24 % 2.79 3.50 % 1.16 2.24 % 1.70 3.50 % |
Assumptions Used to Value Employee Stock Purchase Rights | The expected term of employee stock purchase plan (ESPP) shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three and nine months ended August28, 2009 and August29, 2008 were as follows: Three Months Nine Months 2009 2008 2009 2008 Expected life (in years) 0.5 2.0 0.5 2.0 0.5 2.0 0.5 2.0 Volatility 40 % 34 36 % 40 57 % 30 36 % Risk free interest rate 0.33 1.05 % 2.12 2.66 % 0.27 1.05 % 2.12 3.29 % |
Stock Option Activity | Option activity for the nine months ended August28, 2009 and the fiscal year ended November 28, 2008 was as follows (in thousands): 2009 2008 Beginning outstanding balance 40,704 47,742 Granted 4,914 5,462 Exercised (4,370 ) (9,983 ) Cancelled (2,699 ) (2,517 ) Ending outstanding balance 38,549 40,704 |
Stock Options Outstanding | Information regarding stock options outstanding at August28, 2009 and August29, 2008 is summarized below: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Life Value(*) (thousands) Price (years) (millions) 2009 Options outstanding 38,549 $ 29.75 3.92 $ 176.9 Options vested and expected to vest 36,986 $ 29.78 3.84 $ 168.5 Options exercisable 26,573 $ 29.21 3.23 $ 127.8 2008 Options outstanding 42,070 $ 29.67 4.16 $ 554.5 Options vested and expected to vest 39,936 $ 29.29 4.07 $ 541.2 Options exercisable 27,252 $ 25.94 3.35 $ 460.3 (*) The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of August28, 2009 and August29, 2008 were $31.73 and $42.83, respectively. |
Restricted Stock Unit Activity | Restricted stock unit activity for the nine months ended August28, 2009 and the fiscal year ended November28, 2008 was as follows (in thousands): 2009 2008 Beginning outstanding balance 4,261 1,701 Awarded 3,333 3,177 Released (984 ) (422 ) Forfeited (291 ) (195 ) Ending outstanding balance 6,319 4,261 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at August28, 2009 and August29, 2008 is summarized below: Weighted Average Remaining Aggregate Number of Contractual Intrinsic Shares Life Value(*) (thousands) (years) (millions) 2009 Restricted stock units outstanding 6,319 1.70 $ 200.5 Restricted stock units vested and expected to vest 4,978 1.52 $ 157.8 2008 Restricted stock units outstanding 4,025 1.91 $ 172.4 Restricted stock units vested and expected to vest 3,083 1.69 $ 132.0 (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of August28, 2009 and August29, 2008 were $31.73 and $42.83, respectively. |
Performance Share Activity 2009 Program | The following table sets forth the summary of performance share activity under our 2009 Program for the nine months ended August28, 2009 (in thousands): Maximum Shares Shares Eligible Granted to Receive Beginning outstanding balance Awarded 558 642 Forfeited (3 ) (4 ) Ending outstanding balance 555 638 |
Performance Share Activity Prior Years Programs | The following table sets forth the summary of performance share activity under our 2006 through 2008 programs, based upon share awards actually achieved, for the nine months ended August 28, 2009 and the fiscal year ended November28, 2008 (in thousands): 2009 2008 Beginning outstanding balance 383 Achieved 1,022 993 Released (382 ) (480 ) Forfeited (59 ) (130 ) Ending outstanding balance 964 383 |
Performance Shares Outstanding | Information regarding performance shares outstanding at August28, 2009 and August29, 2008 is summarized below: Weighted Average Remaining Aggregate Number of Contractual Intrinsic Shares Life Value(*) (thousands) (years) (millions) 2009 Performance shares outstanding 964 1.30 $ 30.6 Performance shares vested and expected to vest 801 1.21 $ 25.3 2008 Performance shares outstanding 454 1.44 $ 19.4 Performance shares vested and expected to vest 369 1.34 $ 15.8 (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of August28, 2009 and August29, 2008 were $31.73 and $42.83, respectively. |
Total Stock-based Compensation Costs Three Months Ended | Total stock-based compensation costs that have been included in our Condensed Consolidated Statements of Income for the three months ended August28, 2009 and August29, 2008 were as follows (in thousands): 2009 2008 Option Restricted Option Restricted Grants Stock and Grants Stock and and Stock Performance and Stock Performance Purchase Share Purchase Share Income Statement Classifications Rights(*) Awards(*) Rights(*) Awards(*) Cost of revenueservices and support $ 437 $ 190 $ 1,189 $ 230 Research and development 11,922 6,338 15,612 6,377 Sales and marketing 9,100 4,730 10,576 5,370 General and administrative 4,938 2,087 6,113 2,793 Total $ 26,397 $ 13,345 $ 33,490 $ 14,770 (*) For the three months ended August28, 2009 and August29, 2008, we recorded $0.1 million and $2.1million, respectively, associated with cash recoveries of fringe benefit tax from employees in India. |
Total Stock-based Compensation Costs Nine Months Ended | Total stock-based compensation costs that have been included in our Condensed Consolidated Statements of Income for the nine months ended August28, 2009 and August29, 2008 were as follows (in thousands): 2009 2008 Restricted Option Restricted Option Grants Stock and Grants Stock and and Stock Performance and Stock Performance Purchase Share Purchase Share Income Statement Classifications Rights(*) Awards(*) Rights(*) Awards(*) Cost of revenueservices and support $ 1,595 $ 527 $ 2,968 $ 483 Research and development 35,317 21,271 43,382 16,380 Sales and marketing 27,681 14,565 31,701 15,558 General and administrative 19,220 6,962 18,841 10,368 Total $ 83,813 $ 43,325 $ 96,892 $ 42,789 (*) For the nine months ended August28, 2009 and August29, 2008, we recorded $0.9 million and $2.1million, respectively, associated with cash recoveries of fringe benefit tax from employees in India. |
10_Restructuring Charges
Restructuring Charges (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Restructuring Charges (Tables) [Abstract] | |
Restructuring Activities | The following table sets forth a summary of Adobe restructuring activities during the nine months ended August28, 2009 (in thousands): Total Total Costs Costs Incurred Expected November 28, Costs Cash Other August 28, to to be 2008 Incurred Payments Adjustments 2009 Date Incurred Termination benefits $ 28,759 $ 6,722 $ (34,042 ) $ 174 $ 1,613 $ 36,102 $ 36,121 Cost of closing redundant facilities 8,514 (4,488 ) 613 4,639 9,127 9,601 Total $ 28,759 $ 15,236 $ (38,530 ) $ 787 $ 6,252 $ 45,229 $ 45,722 |
Macromedia Restructuring Activities | The following table sets forth a summary of Macromedia restructuring activities during the nine months ended August28, 2009 (in thousands): Total Total Costs Costs Incurred Expected November 28, Cash Other August 28, to to be 2008 Payments Adjustments 2009 Date Incurred Cost of closing redundant facilities $ 12,168 $ (3,986 ) $ (1,255 ) $ 6,927 $ 41,060 $ 41,060 Other 977 (879 ) (80 ) 18 2,277 2,277 Total $ 13,145 $ (4,865 ) $ (1,335 ) $ 6,945 $ 43,337 $ 43,337 |
11_Comprehensive Income
Comprehensive Income (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Comprehensive Income (Tables) [Abstract] | |
Other Comprehensive Income, Net of Taxes | The following table sets forth the activity for each component of other comprehensive income, net of related taxes (income tax effects were insignificant for all periods presented), for the three and nine months ended August28, 2009 and August29, 2008 (in thousands): Three Months Nine Months 2009 2008 2009 2008 Net income $ 136,045 $ 191,608 $ 418,551 $ 625,897 Other comprehensive income (loss): Unrealized gains (losses)on available-for-sale securities 278 (1,954 ) 1,856 (11,158 ) Reclassification adjustment for (gains)losses on available-for-sale securities recognized during the period (2,449 ) (44 ) (5,026 ) 157 Unrealized (losses)gains on derivative instruments (329 ) 10,494 (14,516 ) 10,776 Reclassification adjustment for gainson derivative instruments recognized during the period (749 ) (27,138 ) Foreign currency translation adjustments (2,333 ) (6,358 ) 9,330 (4,284 ) Other comprehensive (loss)income (5,582 ) 2,138 (35,494 ) (4,509 ) Total other comprehensive income, net of taxes $ 130,463 $ 193,746 $ 383,057 $ 621,388 |
Accumulated Other Comprehensive Income, Net of Taxes | The following table sets forth the components of accumulated other comprehensive income, net of related taxes, as of August28, 2009 and November28, 2008 (in thousands): 2009 2008 Net unrealized gains on available-for-sale securities: Unrealized gains on available-for-sale securities 12,844 16,062 Unrealized losses on available-for-sale securities (107 ) (155 ) Total net unrealized gains on available-for-sale securities 12,737 15,907 Net unrealized gains on derivative instruments $ 96 $ 41,750 Cumulative foreign currency translation adjustments 8,895 (435 ) Total accumulated other comprehensive income, net of taxes $ 21,728 $ 57,222 |
12_Net Income Per Share
Net Income Per Share (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Net Income Per Share (Tables) [Abstract] | |
Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for the three and nine months ended August28, 2009 and August29, 2008 (in thousands, except per share data): Three Months Nine Months 2009 2008 2009 2008 Net income $ 136,045 $ 191,608 $ 418,551 $ 625,897 Shares used to compute basic net income per share 525,911 531,060 528,015 542,624 Dilutive potential common shares: Unvested restricted stock and performance share awards 1,940 1,063 1,696 991 Stock options 3,958 9,188 3,135 9,124 Shares used to compute diluted net income per share 531,809 541,311 532,846 552,739 Basic net income per share $ 0.26 $ 0.36 $ 0.79 $ 1.15 Diluted net income per share $ 0.26 $ 0.35 $ 0.79 $ 1.13 |
Non Operating Income (Expense)
Non Operating Income (Expense) (Table) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Non-Operating Income (Expense) (Table) [Abstract] | |
Non Operating Income (Expense) | Non-operating income (expense)for the three and nine months ended August28, 2009 and August 29, 2008 included the following (in thousands): Three Months Nine Months 2009 2008 2009 2008 Interest and other income, net: Interest income $ 7,616 $ 14,407 $ 28,655 $ 45,110 Foreign exchange losses (3,545 ) (5,967 ) (9,621 ) (11,901 ) Realized gains on fixed income investment 2,449 85 5,027 1,184 Realized losseson fixed income investment (41 ) (1 ) (1,340 ) Other, net 147 854 693 1,725 Interest and other income, net $ 6,667 $ 9,338 $ 24,753 $ 34,778 Interest expense $ (460 ) $ (2,390 ) $ (1,872 ) $ (8,027 ) Investment gains (losses), net: Realized investment gains $ $ 2,861 $ 52 $ 18,298 Unrealized investment gains 2,019 2,882 3,396 7,840 Realized investment losses (1,362 ) (353 ) (3,347 ) (989 ) Unrealized investment losses (50 ) (3,293 ) (18,545 ) (4,814 ) Investment gains (losses), net $ 607 $ 2,097 $ (18,444 ) $ 20,335 Total non-operating income (expense), net $ 6,814 $ 9,045 $ 4,437 $ 47,086 |
13_Segments
Segments (Tables) | |
9 Months Ended
Aug. 28, 2009 USD / shares | |
Segments (Tables) [Abstract] | |
Segment Reporting (Three Months Ended) | Creative Knowledge Print and (in thousands) Solutions Worker Enterprise Platform(*) Publishing Total Three months ended August28, 2009 Revenue $ 400,360 $ 154,517 $ 55,488 $ 44,935 $ 42,207 $ 697,507 Cost of revenue 34,903 9,870 10,957 4,946 4,371 65,047 Gross profit $ 365,457 $ 144,647 $ 44,531 $ 39,989 $ 37,836 $ 632,460 Gross profit as a percentage of revenue 91 % 94 % 80 % 89 % 90 % 91 % Three months ended August29, 2008 Revenue $ 493,615 $ 217,988 $ 65,491 $ 59,077 $ 51,086 $ 887,257 Cost of revenue 53,716 15,762 20,727 14,137 6,509 110,851 Gross profit $ 439,899 $ 202,226 $ 44,764 $ 44,940 $ 44,577 $ 776,406 Gross profit as a percentage of revenue 89 % 93 % 68 % 76 % 87 % 88 % (*) Platform revenue includes revenue related to our Mobile client products of $8.4 million and $27.5million for the three months ended August28, 2009 and August29, 2008, respectively, or 19% and 47% of Platform revenues, respectively. |
Segment Reporting (Nine Months Ended) | Creative Knowledge Print and (in thousands) Solutions Worker Enterprise Platform(*) Publishing Total Nine months ended August28, 2009 Revenue $ 1,272,837 $ 473,670 $ 173,039 $ 134,053 $ 134,971 $ 2,188,570 Cost of revenue 117,225 30,088 36,175 16,420 14,500 214,408 Gross profit $ 1,155,612 $ 443,582 $ 136,864 $ 117,633 $ 120,471 $ 1,974,162 Gross profit as a percentage of revenue 91 % 94 % 79 % 88 % 89 % 90 % Nine months ended August29, 2008 Revenue $ 1,564,334 $ 611,925 $ 174,011 $ 155,037 $ 159,281 $ 2,664,588 Cost of revenue 124,024 39,475 56,308 35,347 21,038 276,192 Gross profit $ 1,440,310 $ 572,450 $ 117,703 $ 119,690 $ 138,243 $ 2,388,396 Gross profit as a percentage of revenue 92 % 94 % 68 % 77 % 87 % 90 % (*) Platform revenue includes revenue related to our Mobile client products of $42.9 million and $64.9million for the nine months ended August28, 2009 and August29, 2008, respectively, or 32% and 42% of Platform revenues, respectively. |
14_Cash, Cash Equivalents and S
Cash, Cash Equivalents and Short-term Investments (Details) (USD $) | ||
In Thousands | Aug. 28, 2009
| Nov. 28, 2008
|
Cash, Cash Equivalents and Short-term Investments [Abstract] | ||
Total cash and cash equivalents | $1,132,144 | $886,450 |
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 135,435 | 133,039 |
Less Than 12 Months Gross Unrealized Losses | (107) | (1,031) |
Total Fair Value | 135,435 | 133,039 |
Total Gross Unrealized Losses | (107) | (1,031) |
Cash, Cash Equivalents And Short Term Investments Numeric [Abstract] | ||
Securities in an unrealized loss position | 18 | 33 |
12 Months or More Securities in a Continuous Loss Position | 0 | 0 |
Carrying Value | ||
Cash, Cash Equivalents and Short-term Investments [Abstract] | ||
Cash | 33,923 | 117,681 |
Money market mutual funds | 1,043,750 | 682,148 |
Bank deposits | 49,451 | 40,594 |
United States treasury notes | 5,021 | 35,992 |
Corporate bonds | 0 | 10,028 |
Total cash equivalents | 1,098,222 | 768,762 |
Total cash and cash equivalents | 1,132,145 | 886,443 |
United States treasury notes | 749,616 | 863,772 |
United States government agency bonds | 133,164 | 0 |
Government guaranteed bonds | 265,448 | 0 |
Corporate bonds | 204,126 | 109,415 |
Obligations of foreign governments | 28,222 | 115,316 |
Bonds of multi-lateral government agencies | 27,434 | 26,559 |
Subtotal | 1,408,010 | 1,115,062 |
Other marketable equity securities | 2,504 | 2,773 |
Total short-term investments | 1,410,514 | 1,117,835 |
Total cash, cash equivalents and short-term investments | 2,542,659 | 2,004,278 |
Unrealized Gains | ||
Cash, Cash Equivalents and Short-term Investments [Abstract] | ||
Cash | 0 | 0 |
Money market mutual funds | 0 | 0 |
Bank deposits | 0 | 0 |
United States treasury notes | 0 | 7 |
Corporate bonds | 0 | 0 |
Total cash equivalents | 0 | 7 |
Total cash and cash equivalents | 0 | 7 |
United States treasury notes | 5,164 | 14,384 |
United States government agency bonds | 127 | 0 |
Government guaranteed bonds | 1,724 | 0 |
Corporate bonds | 3,626 | 219 |
Obligations of foreign governments | 488 | 811 |
Bonds of multi-lateral government agencies | 340 | 260 |
Subtotal | 11,469 | 15,674 |
Other marketable equity securities | 2,440 | 274 |
Total short-term investments | 13,909 | 15,948 |
Total cash, cash equivalents and short-term investments | 13,909 | 15,955 |
Unrealized Losses | ||
Cash, Cash Equivalents and Short-term Investments [Abstract] | ||
Cash | 0 | 0 |
Money market mutual funds | 0 | 0 |
Bank deposits | 0 | 0 |
United States treasury notes | (1) | 0 |
Corporate bonds | 0 | 0 |
Total cash equivalents | (1) | 0 |
Total cash and cash equivalents | (1) | 0 |
United States treasury notes | (10) | (1) |
United States government agency bonds | (21) | 0 |
Government guaranteed bonds | (73) | 0 |
Corporate bonds | (2) | (997) |
Obligations of foreign governments | 0 | (33) |
Bonds of multi-lateral government agencies | 0 | 0 |
Subtotal | (106) | (1,031) |
Other marketable equity securities | 0 | 0 |
Total short-term investments | (106) | (1,031) |
Total cash, cash equivalents and short-term investments | (107) | (1,031) |
Estimated Fair Value | ||
Cash, Cash Equivalents and Short-term Investments [Abstract] | ||
Cash | 33,923 | 117,681 |
Money market mutual funds | 1,043,750 | 682,148 |
Bank deposits | 49,451 | 40,594 |
United States treasury notes | 5,020 | 35,999 |
Corporate bonds | 0 | 10,028 |
Total cash equivalents | 1,098,221 | 768,769 |
Total cash and cash equivalents | 1,132,144 | 886,450 |
United States treasury notes | 754,770 | 878,155 |
United States government agency bonds | 133,270 | 0 |
Government guaranteed bonds | 267,099 | 0 |
Corporate bonds | 207,750 | 108,637 |
Obligations of foreign governments | 28,710 | 116,094 |
Bonds of multi-lateral government agencies | 27,774 | 26,819 |
Subtotal | 1,419,373 | 1,129,705 |
Other marketable equity securities | 4,944 | 3,047 |
Total short-term investments | 1,424,317 | 1,132,752 |
Total cash, cash equivalents and short-term investments | 2,556,461 | 2,019,202 |
Cost and Estimated Fair Value of Debt Securities [Abstract] | ||
Due within one year, Estimated Fair value | 775,869 | |
Due within two years, Estimated Fair value | 320,399 | |
Due within three years, Estimated Fair value | 243,434 | |
Due after three years, Estimated Fair value | 79,671 | |
Total, Estimated Fair value | 1,419,373 | |
Cost | ||
Cost and Estimated Fair Value of Debt Securities [Abstract] | ||
Due within one year, Cost | 772,898 | |
Due within two years, Cost | 317,246 | |
Due within three years, Cost | 241,150 | |
Due after three years, Cost | 76,716 | |
Total, Cost | 1,408,010 | |
United States treasury notes and agency bonds | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 108,878 | |
Less Than 12 Months Gross Unrealized Losses | (32) | |
Total Fair Value | 108,878 | |
Total Gross Unrealized Losses | (32) | |
Government guaranteed bonds | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 23,084 | |
Less Than 12 Months Gross Unrealized Losses | (73) | |
Total Fair Value | 23,084 | |
Total Gross Unrealized Losses | (73) | |
Corporate bonds | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 3,473 | 67,606 |
Less Than 12 Months Gross Unrealized Losses | (2) | (997) |
Total Fair Value | 3,473 | 67,606 |
Total Gross Unrealized Losses | (2) | (997) |
Obligations of foreign governments | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 28,033 | |
Less Than 12 Months Gross Unrealized Losses | (33) | |
Total Fair Value | 28,033 | |
Total Gross Unrealized Losses | (33) | |
United States treasury notes | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Less than 12 Months Fair Value | 37,400 | |
Less Than 12 Months Gross Unrealized Losses | (1) | |
Total Fair Value | 37,400 | |
Total Gross Unrealized Losses | ($1) |
Financial Instruments (Details)
Financial Instruments (Details) (USD $) | |||||||||||||||||||
3 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 28, 2009 | Nov. 28, 2008
| |||||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis [Abstract] | |||||||||||||||||||
Subtotal for Deferred Compensation Plan Assets | $8,524,000 | $7,560,000 | |||||||||||||||||
Fixed income available-for-sale securities Numeric [Abstract] | |||||||||||||||||||
U.S. Treasury Securities, Agency or U.S. Government Guaranteed Securities | 0.75 | 0.78 | |||||||||||||||||
Corporate Bonds | 0.15 | 0.1 | |||||||||||||||||
Obligations of Foreign Governments and their Agencies | 0.08 | 0.1 | |||||||||||||||||
Obligations of Multi-lateral Government Agencies | 0.02 | 0.02 | |||||||||||||||||
Cost method investments Numeric [Abstract] | |||||||||||||||||||
Other-than-temporary Impairment Charges | 0 | 13,900,000 | |||||||||||||||||
Total Fair Value, Assets Measured on Recurring Basis, Disclosure Items | |||||||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis [Abstract] | |||||||||||||||||||
Money Market Funds and Overnight Deposits | 1,093,201,000 | [4] | 722,742,000 | [4] | |||||||||||||||
Fixed Income Available-for-sale Securities | 1,424,393,000 | [5] | 1,175,732,000 | [5] | |||||||||||||||
Available-for-sale Equity Securities | 4,944,000 | [8] | 3,047,000 | [8] | |||||||||||||||
Total Current Assets | 2,522,538,000 | 1,901,521,000 | |||||||||||||||||
Investments of Limited Partnership | 34,705,000 | [6] | 39,004,000 | [6] | |||||||||||||||
Foreign Currency Derivatives | 4,688,000 | [7] | 49,848,000 | [7] | |||||||||||||||
Money Market Funds | 770,000 | [6] | 704,000 | [6] | |||||||||||||||
Equity and Fixed Income Mutual Funds | 7,754,000 | [6] | 6,856,000 | [6] | |||||||||||||||
Subtotal for Deferred Compensation Plan Assets | 8,524,000 | 7,560,000 | |||||||||||||||||
Total Non-current Assets | 47,917,000 | 96,412,000 | |||||||||||||||||
Total Assets | 2,570,455,000 | 1,997,933,000 | |||||||||||||||||
Foreign Currency Derivatives | 729,000 | [3] | 1,739,000 | [3] | |||||||||||||||
Total Liabilities | 729,000 | 1,739,000 | |||||||||||||||||
Fair Value, Inputs, Level 3 | |||||||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis [Abstract] | |||||||||||||||||||
Money Market Funds and Overnight Deposits | 0 | [4] | 0 | [4] | |||||||||||||||
Fixed Income Available-for-sale Securities | 0 | [5] | 0 | [5] | |||||||||||||||
Available-for-sale Equity Securities | 0 | [8] | 0 | [8] | |||||||||||||||
Total Current Assets | 0 | 0 | |||||||||||||||||
Investments of Limited Partnership | 34,705,000 | [6] | 38,753,000 | [6] | |||||||||||||||
Foreign Currency Derivatives | 0 | [7] | 0 | [7] | |||||||||||||||
Money Market Funds | 0 | [6] | 0 | [6] | |||||||||||||||
Equity and Fixed Income Mutual Funds | 0 | [6] | 0 | [6] | |||||||||||||||
Subtotal for Deferred Compensation Plan Assets | 0 | 0 | |||||||||||||||||
Total Non-current Assets | 34,705,000 | 38,753,000 | |||||||||||||||||
Total Assets | 34,705,000 | 38,753,000 | |||||||||||||||||
Foreign Currency Derivatives | 0 | 0 | |||||||||||||||||
Total Liabilities | 0 | 0 | |||||||||||||||||
Reconciliation Balances for Investments of Limited Partnership [Abstract] | |||||||||||||||||||
Purchases and Sales of Investments, Net | 966,000 | ||||||||||||||||||
Unrealized Net Investment Losses Included in Earnings | (5,014,000) | ||||||||||||||||||
Balance as of August 28, 2009 | 34,705,000 | 34,705,000 | 38,753,000 | ||||||||||||||||
Fair Value, Inputs, Level 1 | |||||||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis [Abstract] | |||||||||||||||||||
Money Market Funds and Overnight Deposits | 1,093,201,000 | 722,742,000 | |||||||||||||||||
Fixed Income Available-for-sale Securities | 0 | 0 | |||||||||||||||||
Available-for-sale Equity Securities | 4,944,000 | 3,047,000 | |||||||||||||||||
Total Current Assets | 1,098,145,000 | 725,789,000 | |||||||||||||||||
Investments of Limited Partnership | 0 | 251,000 | |||||||||||||||||
Foreign Currency Derivatives | 0 | 0 | |||||||||||||||||
Money Market Funds | 770,000 | 704,000 | |||||||||||||||||
Equity and Fixed Income Mutual Funds | 0 | 0 | |||||||||||||||||
Subtotal for Deferred Compensation Plan Assets | 770,000 | 704,000 | |||||||||||||||||
Total Non-current Assets | 770,000 | 955,000 | |||||||||||||||||
Total Assets | 1,098,915,000 | 726,744,000 | |||||||||||||||||
Foreign Currency Derivatives | 0 | [3] | 0 | [3] | |||||||||||||||
Total Liabilities | 0 | 0 | |||||||||||||||||
Fair Value, Inputs, Level 2 | |||||||||||||||||||
Financial Assets and Liabilities at Fair Value on Recurring Basis [Abstract] | |||||||||||||||||||
Money Market Funds and Overnight Deposits | 0 | 0 | |||||||||||||||||
Fixed Income Available-for-sale Securities | 1,424,393,000 | 1,175,732,000 | |||||||||||||||||
Available-for-sale Equity Securities | 0 | 0 | |||||||||||||||||
Total Current Assets | 1,424,393,000 | 1,175,732,000 | |||||||||||||||||
Investments of Limited Partnership | 0 | 0 | |||||||||||||||||
Foreign Currency Derivatives | 4,688,000 | 49,848,000 | |||||||||||||||||
Money Market Funds | 0 | 0 | |||||||||||||||||
Equity and Fixed Income Mutual Funds | 7,754,000 | 6,856,000 | |||||||||||||||||
Subtotal for Deferred Compensation Plan Assets | 7,754,000 | 6,856,000 | |||||||||||||||||
Total Non-current Assets | 12,442,000 | 56,704,000 | |||||||||||||||||
Total Assets | 1,436,835,000 | 1,232,436,000 | |||||||||||||||||
Foreign Currency Derivatives | 729,000 | [3] | 1,739,000 | [3] | |||||||||||||||
Total Liabilities | 729,000 | 1,739,000 | |||||||||||||||||
Derivative Financial Instruments, Assets | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Total Derivatives, Asset | 4,688,000 | ||||||||||||||||||
Cost method investments Numeric [Abstract] | |||||||||||||||||||
Aggregate fair value of derivative instruments, Assets | 4,688,000 | ||||||||||||||||||
Derivative Financial Instruments, Assets | Foreign Exchange Forward Contracts | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Prepaid Expense and Other Current Assets | 181,000 | ||||||||||||||||||
Derivative Financial Instruments, Assets | Foreign Exchange Option Contracts | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Prepaid Expense and Other Current Assets, Hedging | 4,507,000 | ||||||||||||||||||
Derivative Financial Instruments, Liabilities | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Total Derivatives, Liability | 729,000 | ||||||||||||||||||
Cost method investments Numeric [Abstract] | |||||||||||||||||||
Aggregate fair value of derivative instruments, Liabilities | 729,000 | ||||||||||||||||||
Derivative Financial Instruments, Liabilities | Foreign Exchange Forward Contracts | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Accrued Expenses | 729,000 | ||||||||||||||||||
Derivative Financial Instruments, Liabilities | Foreign Exchange Option Contracts | |||||||||||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Accrued Expenses, Hedging | 0 | ||||||||||||||||||
Foreign Exchange Forward Contracts | |||||||||||||||||||
Derivatives in cash flow hedging relationships [Abstract] | |||||||||||||||||||
Net Gain (Loss) Recognized in OCI | 0 | [10] | 0 | [10] | |||||||||||||||
Net Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | [2] | 0 | [2] | |||||||||||||||
Net Gain (Loss) Recognized in Income | 0 | [9] | 0 | [9] | |||||||||||||||
Derivatives not Designated as Hedging Relationships [Abstract] | |||||||||||||||||||
Net Gain (Loss) Recognized in Income | (1,650,000) | [1] | (10,200,000) | [1] | |||||||||||||||
Foreign Exchange Option Contracts | |||||||||||||||||||
Derivatives in cash flow hedging relationships [Abstract] | |||||||||||||||||||
Net Gain (Loss) Recognized in OCI | (329,000) | [10] | (14,516,000) | [10] | |||||||||||||||
Net Gain (Loss) Reclassified from Accumulated OCI into Income | 749,000 | [2] | 27,138,000 | [2] | |||||||||||||||
Net Gain (Loss) Recognized in Income | (3,734,000) | [9] | (12,782,000) | [9] | |||||||||||||||
Derivatives not Designated as Hedging Relationships [Abstract] | |||||||||||||||||||
Net Gain (Loss) Recognized in Income | $0 | [1] | $0 | [1] | |||||||||||||||
[1]Classified in interest and other income, net. | |||||||||||||||||||
[2]Effective portion classified as revenue. | |||||||||||||||||||
[3]Included in accrued expenses on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[4]Included in cash and cash equivalents on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[5]Included in either cash and cash equivalents or short-term investments on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[6]Included in other assets on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[7]Included in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[8]Included in short-term investments on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[9]Ineffective portion and amount excluded from effectiveness testing classified in interest and other income, net. | |||||||||||||||||||
[10]Net change in the fair value of the effective portion classified in other comprehensive income ("OCI"). |
Acquisition (Details)
Acquisition (Details) (USD $) | |
In Millions | Aug. 28, 2009
|
Acquisition Numeric [Abstract] | |
Cash Consideration for Business Combination | 35.3 |
15_Goodwill and Purchased and O
Goodwill and Purchased and Other Intangibles (Details) (USD $) | |||||
3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 | Nov. 28, 2008
| |
Purchased and Other Intangible Assets [Abstract] | |||||
Net | $117,384,000 | $214,960,000 | |||
Goodwill and Purchased and Other Intangibles Numeric [Abstract] | |||||
Amortization expense related to purchased and other intangible assets | 34,400,000 | 43,200,000 | 109,700,000 | 140,700,000 | |
Amortization expense included in cost of sales | 19,400,000 | 26,200,000 | 64,100,000 | 89,500,000 | |
Goodwill | 2,125,946,000 | 2,134,730,000 | |||
Reductions in goodwill, related to tax reserves associated with the acquisitions of Accelio and Macromedia | 7,500,000 | ||||
Facility lease obligation adjustment related to Macromedia, offset in part by small foreign currency translation adjustments | 1,700,000 | ||||
Purchased Technology | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 405,830,000 | 411,408,000 | |||
Accumulated Amortization | (375,412,000) | (338,608,000) | |||
Net | 30,418,000 | 72,800,000 | |||
Amortization Expense in Future Periods [Abstract] | |||||
Remainder of 2009 | 13,736,000 | ||||
2010 | 8,301,000 | ||||
2011 | 4,994,000 | ||||
2012 | 3,387,000 | ||||
2013 | 0 | ||||
Thereafter | 0 | ||||
Total expected amortization expense | 30,418,000 | ||||
Localization | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 24,441,000 | 23,751,000 | |||
Accumulated Amortization | (16,567,000) | (6,156,000) | |||
Net | 7,874,000 | 17,595,000 | |||
Trademarks | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 130,925,000 | 130,925,000 | |||
Accumulated Amortization | (97,940,000) | (78,181,000) | |||
Net | 32,985,000 | 52,744,000 | |||
Customer Contracts and Relationships | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 196,617,000 | 198,891,000 | |||
Accumulated Amortization | (150,754,000) | (127,520,000) | |||
Net | 45,863,000 | 71,371,000 | |||
Other Intangibles | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 800,000 | 800,000 | |||
Accumulated Amortization | (556,000) | (350,000) | |||
Net | 244,000 | 450,000 | |||
Total Other Intangible Assets | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 352,783,000 | 354,367,000 | |||
Accumulated Amortization | (265,817,000) | (212,207,000) | |||
Net | 86,966,000 | 142,160,000 | |||
Amortization Expense in Future Periods [Abstract] | |||||
Remainder of 2009 | 20,133,000 | ||||
2010 | 52,202,000 | ||||
2011 | 12,444,000 | ||||
2012 | 1,009,000 | ||||
2013 | 789,000 | ||||
Thereafter | 389,000 | ||||
Total expected amortization expense | 86,966,000 | ||||
Total Purchased And Other Intangible Assets | |||||
Purchased and Other Intangible Assets [Abstract] | |||||
Cost | 758,613,000 | 765,775,000 | |||
Accumulated Amortization | (641,229,000) | (550,815,000) | |||
Net | $117,384,000 | $214,960,000 |
Other Assets (Details)
Other Assets (Details) (USD $) | |||
Aug. 28, 2009
| Jun. 16, 2009
| Nov. 28, 2008
| |
Other Assets [Abstract] | |||
Acquired rights to use technology | $87,806,000 | $90,643,000 | |
Investments | 61,110,000 | 76,589,000 | |
Security and other deposits | 8,655,000 | 16,087,000 | |
Deferred compensation plan assets | 8,524,000 | 7,560,000 | |
Prepaid royalties | 8,191,000 | 9,026,000 | |
Restricted cash | 4,089,000 | 7,361,000 | |
Prepaid land lease | 3,156,000 | 3,185,000 | |
Prepaid Rent | 1,524,000 | 2,658,000 | |
Other | 1,650,000 | 3,420,000 | |
Total other assets | 184,705,000 | 216,529,000 | |
Other Assets Numeric [Abstract] | |||
Indirect investments of limited partnership interest in Adobe Ventures | 34,700,000 | 39,000,000 | |
Direct investments in privately-held companies | 26,400,000 | 37,600,000 | |
Purchase price of real property | 44,700,000 | ||
Initial security and other deposits | 7,000,000 | ||
Total Fair Value, Assets Measured on Recurring Basis, Disclosure Items | |||
Other Assets [Abstract] | |||
Deferred compensation plan assets | 8,524,000 | 7,560,000 | |
Fair Value, Inputs, Level 3 | |||
Other Assets [Abstract] | |||
Deferred compensation plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 | |||
Other Assets [Abstract] | |||
Deferred compensation plan assets | 770,000 | 704,000 | |
Fair Value, Inputs, Level 2 | |||
Other Assets [Abstract] | |||
Deferred compensation plan assets | $7,754,000 | $6,856,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) (USD $) | ||
In Thousands | Aug. 28, 2009
| Nov. 28, 2008
|
Accrued Expense [Abstract] | ||
Accrued compensation and benefits | $141,814 | $177,760 |
Taxes payable | 7,924 | 21,760 |
Sales and marketing allowances | 22,888 | 28,127 |
Other | 176,451 | 172,322 |
Total accrued expenses | $349,077 | $399,969 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) (USD $) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 | 3 Months Ended
Aug. 28, 2009 Option Grants | 3 Months Ended
Aug. 29, 2008 Option Grants | 9 Months Ended
Aug. 28, 2009 Option Grants | 9 Months Ended
Aug. 29, 2008 Option Grants | 9 Months Ended
Aug. 28, 2009 2009 Program | Nov. 28, 2008
2009 Program | 9 Months Ended
Aug. 28, 2009 2009 Program | Nov. 28, 2008
2009 Program | 3 Months Ended
Aug. 28, 2009 Option Grants and Stock Purchase Rights | 3 Months Ended
Aug. 29, 2008 Option Grants and Stock Purchase Rights | 9 Months Ended
Aug. 28, 2009 Option Grants and Stock Purchase Rights | 9 Months Ended
Aug. 29, 2008 Option Grants and Stock Purchase Rights | 3 Months Ended
Aug. 28, 2009 Restricted Stock and Performance Share Awards | 3 Months Ended
Aug. 29, 2008 Restricted Stock and Performance Share Awards | 9 Months Ended
Aug. 28, 2009 Restricted Stock and Performance Share Awards | 9 Months Ended
Aug. 29, 2008 Restricted Stock and Performance Share Awards | 9 Months Ended
Aug. 28, 2009 Restricted Stock Unit | 12 Months Ended
Nov. 28, 2008 Restricted Stock Unit | Aug. 29, 2008
Restricted Stock Unit | Nov. 30, 2007
Restricted Stock Unit | 3 Months Ended
Aug. 28, 2009 Employee Stock Purchase Plan | 3 Months Ended
Aug. 29, 2008 Employee Stock Purchase Plan | 9 Months Ended
Aug. 28, 2009 Employee Stock Purchase Plan | 9 Months Ended
Aug. 29, 2008 Employee Stock Purchase Plan | 9 Months Ended
Aug. 28, 2009 Prior Year | 12 Months Ended
Nov. 28, 2008 Prior Year | Aug. 29, 2008
Prior Year | Nov. 30, 2007
Prior Year | 9 Months Ended
Aug. 28, 2009 Stock Options | 12 Months Ended
Nov. 28, 2008 Stock Options | Aug. 29, 2008
Stock Options | Nov. 30, 2007
Stock Options | 9 Months Ended
Aug. 28, 2009 2009 Program | 3 Months Ended
Feb. 27, 2009 2008 Program | |||||||||||||||
Expected Life (in years) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
From | 3.7 | 3.5 | 3 | 2.3 | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||
To | 3.8 | 3.6 | 3.8 | 4.7 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Volatility [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
From | 0.37 | 0.34 | 0.37 | 0.32 | 0.4 | 0.34 | 0.4 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||
To | 0.43 | 0.37 | 0.57 | 0.39 | 0.4 | 0.36 | 0.57 | 0.36 | ||||||||||||||||||||||||||||||||||||||||||||
Risk Free Interest Rate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
From | 0.0193 | 0.0279 | 0.0116 | 0.017 | 0.0033 | 0.0212 | 0.0027 | 0.0212 | ||||||||||||||||||||||||||||||||||||||||||||
To | 0.0224 | 0.035 | 0.0224 | 0.035 | 0.0105 | 0.0266 | 0.0105 | 0.0329 | ||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 40,704,000 | 47,742,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Granted | 4,914,000 | 5,462,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exercised | (4,370,000) | (9,983,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cancelled | (2,699,000) | (2,517,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ending outstanding balance | 38,549,000 | 40,704,000 | 42,070,000 | 47,742,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options Outstanding [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Options outstanding - Shares | 38,549,000 | 40,704,000 | 42,070,000 | 47,742,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Shares | 36,986,000 | 39,936,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options exercisable - Shares | 26,573,000 | 27,252,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options outstanding - Exercise Price | 29.75 | 29.67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Exercise Price | 29.78 | 29.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options exercisable - Exercise Price | 29.21 | 25.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options outstanding - Life | 3.92 | 4.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Life | 3.84 | 4.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options exercisable - Life | 3.23 | 3.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Options outstanding - Intrinsic Value | $176,900,000 | [3] | $554,500,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Intrinsic Value | 168,500,000 | [3] | 541,200,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||
Options exercisable - Intrinsic Value | 127,800,000 | [3] | 460,300,000 | [3] | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Unit Activity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 4,261,000 | 1,701,000 | 383,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Awarded | 558,000 | 642,000 | 3,333,000 | 3,177,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Released | (984,000) | (422,000) | (382,000) | (480,000) | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | (3,000) | (4,000) | (291,000) | (195,000) | (59,000) | (130,000) | ||||||||||||||||||||||||||||||||||||||||||||||
Ending outstanding balance | 555,000 | 0 | 638,000 | 0 | 6,319,000 | 4,261,000 | 4,025,000 | 1,701,000 | 964,000 | 383,000 | 454,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units and Performance Shares Outstanding [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares outstanding | 555,000 | 0 | 638,000 | 0 | 6,319,000 | 4,261,000 | 4,025,000 | 1,701,000 | 964,000 | 383,000 | 454,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Number of shares vested and expected to vest | 4,978,000 | 3,083,000 | 801,000 | 369,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding weighted average remaining contractual life | 1.7 | 1.91 | 1.3 | 1.44 | ||||||||||||||||||||||||||||||||||||||||||||||||
Vested and expected to vest weighted average remaining contractual life | 1.52 | 1.69 | 1.21 | 1.34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding intrinsic value | 200,500,000 | [4] | 172,400,000 | [4] | 30,600,000 | [5] | 19,400,000 | [5] | ||||||||||||||||||||||||||||||||||||||||||||
Vested and expected to vest intrinsic value | 157,800,000 | [4] | 132,000,000 | [4] | 25,300,000 | [5] | 15,800,000 | [5] | ||||||||||||||||||||||||||||||||||||||||||||
Performance Share Activity 2009 Program [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 4,261,000 | 1,701,000 | 383,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Awarded | 558,000 | 642,000 | 3,333,000 | 3,177,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | (3,000) | (4,000) | (291,000) | (195,000) | (59,000) | (130,000) | ||||||||||||||||||||||||||||||||||||||||||||||
Ending outstanding balance | 555,000 | 0 | 638,000 | 0 | 6,319,000 | 4,261,000 | 4,025,000 | 1,701,000 | 964,000 | 383,000 | 454,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Performance Share Activity Prior Years Programs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 4,261,000 | 1,701,000 | 383,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
Achieved | 1,022,000 | 993,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Released | (984,000) | (422,000) | (382,000) | (480,000) | ||||||||||||||||||||||||||||||||||||||||||||||||
Forfeited | (3,000) | (4,000) | (291,000) | (195,000) | (59,000) | (130,000) | ||||||||||||||||||||||||||||||||||||||||||||||
Ending outstanding balance | 555,000 | 0 | 638,000 | 0 | 6,319,000 | 4,261,000 | 4,025,000 | 1,701,000 | 964,000 | 383,000 | 454,000 | 0 | ||||||||||||||||||||||||||||||||||||||||
Total Stock-based Compensation Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue-services and support | 437,000 | [2] | 1,189,000 | [2] | 1,595,000 | [1] | 2,968,000 | [1] | 190,000 | [2] | 230,000 | [2] | 527,000 | [1] | 483,000 | [1] | ||||||||||||||||||||||||||||||||||||
Research and development | 11,922,000 | [2] | 15,612,000 | [2] | 35,317,000 | [1] | 43,382,000 | [1] | 6,338,000 | [2] | 6,377,000 | [2] | 21,271,000 | [1] | 16,380,000 | [1] | ||||||||||||||||||||||||||||||||||||
Sales and marketing | 9,100,000 | [2] | 10,576,000 | [2] | 27,681,000 | [1] | 31,701,000 | [1] | 4,730,000 | [2] | 5,370,000 | [2] | 14,565,000 | [1] | 15,558,000 | [1] | ||||||||||||||||||||||||||||||||||||
General and administrative | 4,938,000 | [2] | 6,113,000 | [2] | 19,220,000 | [1] | 18,841,000 | [1] | 2,087,000 | [2] | 2,793,000 | [2] | 6,962,000 | [1] | 10,368,000 | [1] | ||||||||||||||||||||||||||||||||||||
Total | 26,397,000 | [2] | 33,490,000 | [2] | 83,813,000 | [1] | 96,892,000 | [1] | 13,345,000 | [2] | 14,770,000 | [2] | 43,325,000 | [1] | 42,789,000 | [1] | ||||||||||||||||||||||||||||||||||||
Stock Based Compensation Numeric [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock based awards, will be recognized in 2.5 years | 225,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Period over which unrecognized compensation costs will be recognized | 2.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Recoveries of Fringe Benefit Tax, India | 100,000 | 2,100,000 | 900,000 | 2,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Actual shares achieved for the 2008 Program | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Actual percentage achieved for the 2008 Program | 1.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage vesting on the later of the date of certification of achievement or the first anniversary date of the grant | 0.25 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage vesting evenly on following three annual anniversary dates of the grant, contingent upon the recipient's continued service to Adobe | 0.75 | 0.75 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum percentage of target shares able to receive | 1.15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Fair Value of Shares, ESPP | 5.4 | 9.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Purchased, ESPP | 3,200,000 | 2,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average shares Purchase Price, ESPP | 19.04 | 30.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares Purchased Intrinsic Value, ESPP | 21,700,000 | 25,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Closing market values | 31.73 | 42.83 | 31.73 | 42.83 | 31.73 | 42.83 | ||||||||||||||||||||||||||||||||||||||||||||||
[1]For the nine months ended August 28, 2009 and August 29, 2008, we recorded $0.9 million and $2.1 million, respectively, associated with cash recoveries of fringe benefit tax from employees in India | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[2]For the three months ended August 28, 2009 and August 29, 2008, we recorded $0.1 million and $2.1 million, respectively, associated with cash recoveries of fringe benefit tax from employees in India. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[3]The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of August 28, 2009 and August 29, 2008 were $31.73 and $42.83, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[4]The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of August 28, 2009 and August 29, 2008 were $31.73 and $42.83, respectively | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[5]The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of August 28, 2009 and August 29, 2008 were $31.73 and $42.83, respectively. |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) (USD $) | ||
Aug. 28, 2009
| Nov. 28, 2008
| |
Employee Benefit Plan Numeric [Abstract] | ||
Deferred Compensation Plan Assets, Noncurrent | $8,524,000 | $7,560,000 |
Deferred Compensation Liability, Noncurrent | 8,524,000 | 7,560,000 |
Total Fair Value, Assets Measured on Recurring Basis, Disclosure Items | ||
Employee Benefit Plan Numeric [Abstract] | ||
Deferred Compensation Plan Assets, Noncurrent | 8,524,000 | 7,560,000 |
Fair Value, Inputs, Level 3 | ||
Employee Benefit Plan Numeric [Abstract] | ||
Deferred Compensation Plan Assets, Noncurrent | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Employee Benefit Plan Numeric [Abstract] | ||
Deferred Compensation Plan Assets, Noncurrent | 770,000 | 704,000 |
Fair Value, Inputs, Level 2 | ||
Employee Benefit Plan Numeric [Abstract] | ||
Deferred Compensation Plan Assets, Noncurrent | $7,754,000 | $6,856,000 |
Restructuring Charges (Details)
Restructuring Charges (Details) (USD $) | ||||||||||||||||||
3 Months Ended
Aug. 28, 2009 | 3 Months Ended
May. 29, 2009 | 3 Months Ended
Feb. 27, 2009 | 3 Months Ended
Nov. 28, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 28, 2009 Cost of Closing Redundant Facilities Adobe | Nov. 28, 2008
Cost of Closing Redundant Facilities Adobe | 9 Months Ended
Aug. 28, 2009 Cost of Closing Redundant Facilities Macromedia | Nov. 28, 2008
Cost of Closing Redundant Facilities Macromedia | 9 Months Ended
Aug. 28, 2009 Termination Benefits Adobe | Nov. 28, 2008
Termination Benefits Adobe | 9 Months Ended
Aug. 28, 2009 Other Restructuring Charges Macromedia | Nov. 28, 2008
Other Restructuring Charges Macromedia | 9 Months Ended
Aug. 28, 2009 Adobe | Nov. 28, 2008
Adobe | 9 Months Ended
Aug. 28, 2009 Macromedia | 12 Months Ended
Nov. 30, 2007 Macromedia | Nov. 28, 2008
Macromedia | |
Restructuring Activities [Abstract] | ||||||||||||||||||
Restructuring Reserve - Adobe | $0 | $28,759,000 | $28,759,000 | |||||||||||||||
Restructuring Reserve - Macromedia | 12,168,000 | 977,000 | 13,145,000 | |||||||||||||||
Costs Incurred | 8,514,000 | 6,722,000 | 15,236,000 | |||||||||||||||
Cash Payments | 400,000 | (4,488,000) | (3,986,000) | (34,042,000) | (879,000) | (38,530,000) | (4,865,000) | |||||||||||
Other adjustments | 613,000 | (1,255,000) | 174,000 | (80,000) | 787,000 | (1,335,000) | ||||||||||||
Total Costs Incurred to Date | 9,127,000 | 41,060,000 | 36,102,000 | 2,277,000 | 45,229,000 | 43,337,000 | ||||||||||||
Total Costs Expected to be Incurred | 9,601,000 | 41,060,000 | 36,121,000 | 2,277,000 | 45,722,000 | 43,337,000 | ||||||||||||
Restructuring Charges Numeric [Abstract] | ||||||||||||||||||
Restructuring Charges Related to Termination Benefits | 29,200,000 | |||||||||||||||||
Employers' Accounting for Postemployment Benefits | 400,000 | (4,488,000) | (3,986,000) | (34,042,000) | (879,000) | (38,530,000) | (4,865,000) | |||||||||||
Costs Associated with Exit or Disposal Activities | 8,500,000 | |||||||||||||||||
Estimated sublease income, Net of fair value | 4,400,000 | |||||||||||||||||
Charges for termination benefits for the elimination | 400,000 | 3,000,000 | 3,400,000 | |||||||||||||||
Accrued restructuring, current | 3,300,000 | 5,000,000 | 6,900,000 | |||||||||||||||
Accrued restructuring, non-current | 3,000,000 | 1,900,000 | 6,200,000 | |||||||||||||||
Accrued restructuring charges | 6,300,000 | 6,900,000 | 13,100,000 | |||||||||||||||
Foreign currency translation adjustments | 500,000 | |||||||||||||||||
Costs for termination benefits | 27,000,000 | |||||||||||||||||
Costs for contract terminations | 3,200,000 | |||||||||||||||||
Accrual for a leased facility included in the purchase price of Macromedia as an assumed liability | (1,700,000) | |||||||||||||||||
Adjustments recorded as an increase to restructuring charges | 400,000 | |||||||||||||||||
Change to previous estimates, Other Adjustments | ($1,300,000) | |||||||||||||||||
Expected reductions in full time positions | 57 | 100 | 560 | |||||||||||||||
Positions eliminated | 48 | 43 | 460 | |||||||||||||||
Research & development and sales facilities, area vacated | 89,000 | |||||||||||||||||
Credit-adjusted risk-free interest rate | 0.06 |
Equity (Details)
Equity (Details) (USD $) | ||
Share data in Millions | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 |
Stock Repurchase Program I | ||
Shareholders' Equity Numeric [Abstract] | ||
Structured Repurchase Prepayments | $350,000,000 | $325,000,000 |
Repurchased Shares | 9.9 | 19 |
Repurchased Shares, Price | 25.31 | 37.12 |
Up-front payments remaining in treasury stock | 233,900,000 | 41,000,000 |
Stock Repurchase Program I | Open Market Transactions | ||
Shareholders' Equity Numeric [Abstract] | ||
Repurchased Shares | 0.8 | |
Repurchased Shares, Price | 39.19 | |
Stock Repurchase Program I I | ||
Shareholders' Equity Numeric [Abstract] | ||
Structured Repurchase Prepayments | $1,900,000,000 | $1,000,000,000 |
Repurchased Shares | 31.9 | |
Repurchased Shares, Price | 37.15 | |
Share Authorization | 50 | |
Stock Repurchase Program I I | Open Market Transactions | ||
Shareholders' Equity Numeric [Abstract] | ||
Repurchased Shares | 0.5 | |
Repurchased Shares, Price | 39.79 |
Comprehensive Income (Details)
Comprehensive Income (Details) (USD $) | |||||
In Thousands | 3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 | Nov. 28, 2008
|
Other Comprehensive Income, Net of Taxes [Abstract] | |||||
Net income | $136,045 | $191,608 | $418,551 | $625,897 | |
Unrealized gains (losses) on available-for-sale securities | 278 | (1,954) | 1,856 | (11,158) | |
Reclassification adjustment for (gains) losses on available-for-sale securities recognized during the period | (2,449) | (44) | (5,026) | 157 | |
Unrealized (losses) gains on derivative instruments | (329) | 10,494 | (14,516) | 10,776 | |
Reclassification adjustment for gains on derivative instruments recognized during the period | (749) | 0 | (27,138) | 0 | |
Foreign currency translation adjustments | (2,333) | (6,358) | 9,330 | (4,284) | |
Other comprehensive (loss) income | (5,582) | 2,138 | (35,494) | (4,509) | |
Total other comprehensive income, net of taxes | 130,463 | 193,746 | 383,057 | 621,388 | |
Accumulated Other Comprehensive Income, Net of Tax [Abstract] | |||||
Unrealized gains on available-for-sale securities | 12,844 | 16,062 | |||
Unrealized losses on available-for-sale securities | (107) | (155) | |||
Total net unrealized gains on available-for-sale securities | 12,737 | 15,907 | |||
Net unrealized gains on derivative instruments | 96 | 41,750 | |||
Cumulative foreign currency translation adjustments | 8,895 | (435) | |||
Total accumulated other comprehensive income, net of taxes | $21,728 | $57,222 |
Net Income Per Share (Details)
Net Income Per Share (Details) (USD $) | ||||
3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 | |
Net Income Per Share [Abstract] | ||||
Net income | $136,045,000 | $191,608,000 | $418,551,000 | $625,897,000 |
Shares used to compute basic net income per share | 525,911,000 | 531,060,000 | 528,015,000 | 542,624,000 |
Unvested restricted stock and performance share awards | 1,940,000 | 1,063,000 | 1,696,000 | 991,000 |
Stock options | 3,958,000 | 9,188,000 | 3,135,000 | 9,124,000 |
Shares used in computing diluted net income per share | 531,809,000 | 541,311,000 | 532,846,000 | 552,739,000 |
Basic net income per share | 0.26 | 0.36 | 0.79 | 1.15 |
Diluted net income per share | 0.26 | 0.35 | 0.79 | 1.13 |
Net Income Per Share Numeric [Abstract] | ||||
Common stock with exercise prices greater than average fair market value | 24,500,000 | 14,400,000 | 30,600,000 | 15,400,000 |
Average fair market value | 30.4 | 42.06 | 24.99 | 39.21 |
Commitments and Contingencies (
Commitments and Contingencies (Details) (USD $) | ||
In Millions | 9 Months Ended
Aug. 28, 2009 | Nov. 28, 2008
|
Commitments and Contingencies Numeric [Abstract] | ||
Unamortized Portion, Residual Value Guarantee Under Other Long-term Liabilities and Prepaid Rent | 1.5 | 2.6 |
Standby letter of credit to secure a lower interest rate and reduce the number of covenants | 16.5 | |
East and West Towers | ||
Commitments and Contingencies Numeric [Abstract] | ||
Lease Receivable Purchased | 126.8 | |
Option to Purchase Buildings | 143.2 | |
Residual Value Guarantees | 126.8 | |
Residual Value Gurarantee Under Other Long Term Liabilities | 5.2 | |
Almaden Tower | ||
Commitments and Contingencies Numeric [Abstract] | ||
Lease Receivable Purchased | 80.4 | |
Option to Purchase Buildings | 103.6 | |
Residual Value Guarantees | 89.4 | |
Residual Value Gurarantee Under Other Long Term Liabilities | $3 |
Credit Agreement (Details)
Credit Agreement (Details) (USD $) | |||
9 Months Ended
Aug. 28, 2009 | Nov. 28, 2008
| Aug. 13, 2007
| |
Credit Agreement Numeric [Abstract] | |||
Option to request an additional credit in commitments | $500,000,000 | ||
Maximum aggregate, credit facility | 1,500,000,000 | ||
Interest rates | |||
From | 0.002 | ||
To | 0.00475 | ||
Commitment fees rate | |||
From | 0.0005 | ||
To | 0.0015 | ||
Amount outstanding, credit facility | 350,000,000 | 350,000,000 | |
From | |||
Credit Agreement Numeric [Abstract] | |||
Total senior unsecured revolving credit facility | 500,000,000 | ||
To | |||
Credit Agreement Numeric [Abstract] | |||
Total senior unsecured revolving credit facility | $1,000,000,000 |
Non Operating Income (Expense)
Non Operating Income (Expense) (Details) (USD $) | ||||
In Thousands | 3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 |
Non-operating income (expense): | ||||
Interest income | $7,616 | $14,407 | $28,655 | $45,110 |
Foreign exchange losses | (3,545) | (5,967) | (9,621) | (11,901) |
Realized gains on fixed income investment | 2,449 | 85 | 5,027 | 1,184 |
Realized losses on fixed income investment | 0 | (41) | (1) | (1,340) |
Other, net | 147 | 854 | 693 | 1,725 |
Interest and other income, net | 6,667 | 9,338 | 24,753 | 34,778 |
Interest expense | (460) | (2,390) | (1,872) | (8,027) |
Realized investment gains | 0 | 2,861 | 52 | 18,298 |
Unrealized investment gains | 2,019 | 2,882 | 3,396 | 7,840 |
Realized investment losses | (1,362) | (353) | (3,347) | (989) |
Unrealized investment losses | (50) | (3,293) | (18,545) | (4,814) |
Investment gains (losses), net | 607 | 2,097 | (18,444) | 20,335 |
Total non-operating income (expense), net | $6,814 | $9,045 | $4,437 | $47,086 |
Segments (Details)
Segments (Details) (USD $) | |||||||||||||||||||
3 Months Ended
Aug. 28, 2009 | 3 Months Ended
Aug. 29, 2008 | 9 Months Ended
Aug. 28, 2009 | 9 Months Ended
Aug. 29, 2008 | ||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | $697,507,000 | $887,257,000 | $2,188,570,000 | $2,664,588,000 | |||||||||||||||
Cost of revenue | 65,047,000 | 110,851,000 | 214,408,000 | 276,192,000 | |||||||||||||||
Gross profit | 632,460,000 | 776,406,000 | 1,974,162,000 | 2,388,396,000 | |||||||||||||||
Total Reporting Segment | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 697,507,000 | 887,257,000 | 2,188,570,000 | 2,664,588,000 | |||||||||||||||
Cost of revenue | 65,047,000 | 110,851,000 | 214,408,000 | 276,192,000 | |||||||||||||||
Gross profit | 632,460,000 | 776,406,000 | 1,974,162,000 | 2,388,396,000 | |||||||||||||||
Gross profit as a percentage of revenue | 0.91 | 0.88 | 0.9 | 0.9 | |||||||||||||||
Creative Solutions | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 400,360,000 | 493,615,000 | 1,272,837,000 | 1,564,334,000 | |||||||||||||||
Cost of revenue | 34,903,000 | 53,716,000 | 117,225,000 | 124,024,000 | |||||||||||||||
Gross profit | 365,457,000 | 439,899,000 | 1,155,612,000 | 1,440,310,000 | |||||||||||||||
Gross profit as a percentage of revenue | 0.91 | 0.89 | 0.91 | 0.92 | |||||||||||||||
Knowledge Worker | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 154,517,000 | 217,988,000 | 473,670,000 | 611,925,000 | |||||||||||||||
Cost of revenue | 9,870,000 | 15,762,000 | 30,088,000 | 39,475,000 | |||||||||||||||
Gross profit | 144,647,000 | 202,226,000 | 443,582,000 | 572,450,000 | |||||||||||||||
Gross profit as a percentage of revenue | 0.94 | 0.93 | 0.94 | 0.94 | |||||||||||||||
Enterprise | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 55,488,000 | 65,491,000 | 173,039,000 | 174,011,000 | |||||||||||||||
Cost of revenue | 10,957,000 | 20,727,000 | 36,175,000 | 56,308,000 | |||||||||||||||
Gross profit | 44,531,000 | 44,764,000 | 136,864,000 | 117,703,000 | |||||||||||||||
Gross profit as a percentage of revenue | 0.8 | 0.68 | 0.79 | 0.68 | |||||||||||||||
Platform | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 44,935,000 | [2] | 59,077,000 | [2] | 134,053,000 | [1] | 155,037,000 | [1] | |||||||||||
Cost of revenue | 4,946,000 | [2] | 14,137,000 | [2] | 16,420,000 | [1] | 35,347,000 | [1] | |||||||||||
Gross profit | 39,989,000 | [2] | 44,940,000 | [2] | 117,633,000 | [1] | 119,690,000 | [1] | |||||||||||
Gross profit as a percentage of revenue | 0.89 | [2] | 0.76 | [2] | 0.88 | [1] | 0.77 | [1] | |||||||||||
Segment Numeric [Abstract] | |||||||||||||||||||
Revenue from mobile client products | 8,400,000 | 27,500,000 | 42,900,000 | 64,900,000 | |||||||||||||||
Revenue from mobile client products as a % of Platform Revenue | 0.19 | 0.47 | 0.32 | 0.42 | |||||||||||||||
Print And Publishing | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 42,207,000 | 51,086,000 | 134,971,000 | 159,281,000 | |||||||||||||||
Cost of revenue | 4,371,000 | 6,509,000 | 14,500,000 | 21,038,000 | |||||||||||||||
Gross profit | $37,836,000 | $44,577,000 | $120,471,000 | $138,243,000 | |||||||||||||||
Gross profit as a percentage of revenue | 0.9 | 0.87 | 0.89 | 0.87 | |||||||||||||||
[1]Platform revenue includes revenue related to our Mobile client products of $42.9 million and $64.9 million for the nine months ended August 28, 2009 and August 29, 2008, respectively, or 32% and 42% of Platform revenues, respectively. | |||||||||||||||||||
[2]Platform revenue includes revenue related to our Mobile client products of $8.4 million and $27.5 million for the three months ended August 28, 2009 and August 29, 2008, respectively, or 19% and 47% of Platform revenues, respectively. |
Subsequent Events (Details)
Subsequent Events (Details) (USD $) | ||
Sep. 22, 2009
| Sep. 15, 2009
| |
Subsequent Events Numeric [Abstract] | ||
Expected purchase price of Omniture, Inc. | $1,800,000,000 | |
Price per share to acquire Omniture | 21.5 | |
Additional funds borrowed, credit facility | $650,000,000 |