Document and Entity Information
Document and Entity Information Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 01, 2017 | Jan. 12, 2018 | Jun. 02, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ADOBE SYSTEMS INC | ||
Entity Central Index Key | 796,343 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 1, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-01 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 52,575,558,763 | ||
Entity Common Stock, Shares Outstanding | 491,578,529 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,306,072 | $ 1,011,315 |
Short-term investments | 3,513,702 | 3,749,985 |
Trade receivables, net of allowances for doubtful accounts of $9,151 and $6,214, respectively | 1,217,968 | 833,033 |
Prepaid expenses and other current assets | 210,071 | 245,441 |
Total current assets | 7,247,813 | 5,839,774 |
Property and equipment, net | 936,976 | 816,264 |
Goodwill | 5,821,561 | 5,406,474 |
Purchased and other intangibles, net | 385,658 | 414,405 |
Investment in lease receivable | 0 | 80,439 |
Other assets | 143,548 | 139,890 |
Total assets | 14,535,556 | 12,697,246 |
Current liabilities: | ||
Accounts Payable, Current | 113,538 | 88,024 |
Accrued expenses | 993,773 | 739,630 |
Income taxes payable | 14,196 | 38,362 |
Deferred revenue | 2,405,950 | 1,945,619 |
Total current liabilities | 3,527,457 | 2,811,635 |
Long-term liabilities: | ||
Debt and capital lease obligations | 1,881,421 | 1,892,200 |
Deferred revenue | 88,592 | 69,131 |
Income taxes payable | 173,088 | 184,381 |
Deferred income taxes | 279,941 | 217,660 |
Other liabilities | 125,188 | 97,404 |
Total liabilities | 6,075,687 | 5,272,411 |
Commitments and contingencies | ||
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; 491,262 and 494,254 shares outstanding, respectively | 61 | 61 |
Additional paid-in-capital | 5,082,195 | 4,616,331 |
Retained earnings | 9,573,870 | 8,114,517 |
Accumulated other comprehensive income (loss) | (111,821) | (173,602) |
Treasury stock, at cost (109,572 and 106,580 shares, respectively), net of reissuances | (6,084,436) | (5,132,472) |
Total stockholders' equity | 8,459,869 | 7,424,835 |
Total liabilities and stockholders' equity | $ 14,535,556 | $ 12,697,246 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Current Assets: | ||
Allowance for doubtful accounts receivable, current | $ 9,151 | $ 6,214 |
Stockholders' Equity: | ||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 900,000 | 900,000 |
Common stock, shares issued | 600,834 | 600,834 |
Common stock, shares outstanding | 491,262 | 494,254 |
Treasury Stock, Shares | 109,572 | 106,580 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Revenue: | |||
Subscription | $ 6,133,869 | $ 4,584,833 | $ 3,223,904 |
Products | 706,767 | 800,498 | 1,125,146 |
Services and support | 460,869 | 469,099 | 446,461 |
Total revenue | 7,301,505 | 5,854,430 | 4,795,511 |
Cost of revenue: | |||
Subscription | 623,048 | 461,860 | 409,194 |
Products | 57,082 | 68,917 | 90,035 |
Services and support | 330,361 | 289,131 | 245,088 |
Total cost of revenue | 1,010,491 | 819,908 | 744,317 |
Gross profit | 6,291,014 | 5,034,522 | 4,051,194 |
Operating expenses: | |||
Research and development | 1,224,059 | 975,987 | 862,730 |
Sales and marketing | 2,197,592 | 1,910,197 | 1,683,242 |
General and administrative | 624,706 | 576,202 | 533,478 |
Amortization of purchased intangibles | 76,562 | 78,534 | 68,649 |
Total operating expenses | 4,122,919 | 3,540,920 | 3,148,099 |
Operating income | 2,168,095 | 1,493,602 | 903,095 |
Non-operating income (expense): | |||
Interest and other income (expense), net | 36,395 | 13,548 | 33,909 |
Interest expense | (74,402) | (70,442) | (64,184) |
Investment gains (losses), net | 7,553 | (1,570) | 961 |
Total non-operating income (expense), net | (30,454) | (58,464) | (29,314) |
Income before income taxes | 2,137,641 | 1,435,138 | 873,781 |
Provision for income taxes | 443,687 | 266,356 | 244,230 |
Net income | $ 1,693,954 | $ 1,168,782 | $ 629,551 |
Basic net income per share | $ 3.43 | $ 2.35 | $ 1.26 |
Shares used to compute basic net income per share | 493,632 | 498,345 | 498,764 |
Diluted net income per share | $ 3.38 | $ 2.32 | $ 1.24 |
Shares used to compute diluted net income per share | 501,123 | 504,299 | 507,164 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,693,954 | $ 1,168,782 | $ 629,551 | |
Available-for-sale Securities: | ||||
Unrealized gains / losses on available-for-sale securities | (2,503) | (1,618) | (9,226) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | (947) | [1] | (1,895) | (2,955) |
Net increase (decrease) from available-for-sale securities | (3,450) | (3,513) | (12,181) | |
Derivatives designated as hedging instruments: | ||||
Unrealized gains / losses on derivative instruments | 6,917 | 35,199 | 29,795 | |
Reclassification adjustment for gains / losses on derivative instruments recognized | (31,973) | [2] | (16,425) | (55,535) |
Net increase (decrease) from derivatives desinated as hedging instruments | (25,056) | 18,774 | (25,740) | |
Foreign currency translation adjustments | 90,287 | (19,783) | (123,065) | |
Other comprehensive income (loss), net of taxes | 61,781 | (4,522) | (160,986) | |
Total comprehensive income, net of taxes | $ 1,755,735 | $ 1,164,260 | $ 468,565 | |
[1] | (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. | |||
[2] | (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balances at Nov. 28, 2014 | $ 6,775,905 | $ 61 | $ 3,778,495 | $ 6,924,294 | $ (8,094) | $ (3,918,851) |
Beginning Balances, shares at Nov. 28, 2014 | 600,834 | |||||
Beginning Treasury stock, shares at Nov. 28, 2014 | 103,350 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 629,551 | 629,551 | ||||
Other comprehensive income (loss), net of taxes | (160,986) | (160,986) | ||||
Re-issuance of treasury stock under stock compensation plans | 22,103 | 300,414 | $ 278,311 | |||
Re-issuance of treasury stock under stock compensation plans, Shares | 8,429 | |||||
Tax benefit from employee stock plans | 68,133 | 68,133 | ||||
Purchase of treasury stock | 625,000 | $ 625,000 | ||||
Purchase of treasury stock, Shares | 8,104 | |||||
Equity awards assumed for acquisition | 677 | 677 | ||||
Stock-based compensation | 337,578 | 337,578 | ||||
Value of shares in deferred compensation plan | (2,175) | $ (2,175) | ||||
Ending Balances at Nov. 27, 2015 | 7,001,580 | $ 61 | 4,184,883 | 7,253,431 | (169,080) | $ (4,267,715) |
Ending Balances, shares at Nov. 27, 2015 | 600,834 | |||||
Ending Treasury stock, shares at Nov. 27, 2015 | 103,025 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,168,782 | 1,168,782 | ||||
Other comprehensive income (loss), net of taxes | (4,522) | (4,522) | ||||
Re-issuance of treasury stock under stock compensation plans | 90,703 | 7,365 | 307,696 | $ 209,628 | ||
Re-issuance of treasury stock under stock compensation plans, Shares | 6,872 | |||||
Tax benefit from employee stock plans | 75,102 | 75,102 | ||||
Purchase of treasury stock | 1,075,000 | $ 1,075,000 | ||||
Purchase of treasury stock, Shares | 10,427 | |||||
Equity awards assumed for acquisition | 0 | |||||
Stock-based compensation | 348,981 | 348,981 | ||||
Value of shares in deferred compensation plan | 615 | $ 615 | ||||
Ending Balances at Dec. 02, 2016 | $ 7,424,835 | $ 61 | 4,616,331 | 8,114,517 | (173,602) | $ (5,132,472) |
Ending Balances, shares at Dec. 02, 2016 | 600,834 | |||||
Ending Treasury stock, shares at Dec. 02, 2016 | 106,580 | 106,580 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 1,693,954 | 1,693,954 | ||||
Other comprehensive income (loss), net of taxes | 61,781 | 61,781 | ||||
Re-issuance of treasury stock under stock compensation plans | 81,775 | 1,768 | 234,601 | $ 151,058 | ||
Re-issuance of treasury stock under stock compensation plans, Shares | 5,194 | |||||
Purchase of treasury stock | 1,100,000 | $ 1,100,000 | ||||
Purchase of treasury stock, Shares | 8,186 | |||||
Equity awards assumed for acquisition | 10,348 | 10,348 | ||||
Stock-based compensation | 453,748 | 453,748 | ||||
Value of shares in deferred compensation plan | (3,022) | $ (3,022) | ||||
Ending Balances at Dec. 01, 2017 | $ 8,459,869 | $ 61 | $ 5,082,195 | $ 9,573,870 | $ (111,821) | $ (6,084,436) |
Ending Balances, shares at Dec. 01, 2017 | 600,834 | |||||
Ending Treasury stock, shares at Dec. 01, 2017 | 109,572 | 109,572 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 1,693,954 | $ 1,168,782 | $ 629,551 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 325,997 | 331,535 | 339,473 |
Stock-based compensation | 451,451 | 349,912 | 335,859 |
Deferred income taxes | 51,605 | 24,222 | (69,657) |
Gain on the sale of property | 0 | 0 | (21,415) |
Unrealized (gains) losses on investments | (5,494) | 3,145 | (9,210) |
Excess tax benefits from stock-based compensation | 0 | (75,105) | (68,153) |
Other non-cash items | 4,625 | 2,022 | 1,216 |
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | |||
Trade receivables, net | (187,173) | (160,416) | (79,502) |
Prepaid expenses and other current assets | 28,040 | (71,021) | (7,701) |
Trade payables | (45,186) | (6,281) | 22,870 |
Accrued expenses | 154,125 | 64,978 | (22,564) |
Income taxes payable | (34,493) | 43,115 | 97,934 |
Deferred revenue | 475,402 | 524,840 | 320,801 |
Net cash provided by operating activities | 2,912,853 | 2,199,728 | 1,469,502 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (1,931,011) | (2,285,222) | (2,064,833) |
Maturities of short-term investments | 759,737 | 769,228 | 371,790 |
Proceeds from sales of short-term investments | 1,393,929 | 860,849 | 1,176,476 |
Acquisitions, net of cash acquired | (459,626) | (48,427) | (826,004) |
Purchases of property and equipment | (178,122) | (203,805) | (184,936) |
Proceeds from sale of property | 0 | 0 | 57,779 |
Purchases of long-term investments, intangibles and other assets | (29,918) | (58,433) | (22,779) |
Proceeds from sale of long-term investments | 2,134 | 5,777 | 4,149 |
Net cash used for investing activities | (442,877) | (960,033) | (1,488,358) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (1,100,000) | (1,075,000) | (625,000) |
Proceeds from issuance of treasury stock | 158,351 | 145,697 | 164,270 |
Taxes paid related to net share settlement of equity awards | (240,126) | (236,400) | (186,373) |
Excess tax benefits from stock-based compensation | 0 | 75,105 | 68,153 |
Proceeds from Issuance of Debt | 0 | 0 | 989,280 |
Repayment of debt and capital lease obligations | (1,960) | (108) | (602,189) |
Debt issuance costs | 0 | 0 | (8,828) |
Net cash used for financing activities | (1,183,735) | (1,090,706) | (200,687) |
Effect of foreign currency exchange rates on cash and cash equivalents | 8,516 | (14,234) | (21,297) |
Net increase (decrease) in cash and cash equivalents | 1,294,757 | 134,755 | (240,840) |
Cash and cash equivalents at beginning of year | 1,011,315 | 876,560 | 1,117,400 |
Cash and cash equivalents at end of year | 2,306,072 | 1,011,315 | 876,560 |
Supplemental disclosures: | |||
Cash paid for income taxes, net of refunds | 396,668 | 249,884 | 203,010 |
Cash paid for interest | 69,430 | 66,193 | 56,014 |
Non-cash investing activities: | |||
Investment in lease receivable applied to building purchase | 80,439 | 0 | 0 |
Issuance of common stock and stock awards assumed in business acquisitions | $ 10,348 | $ 0 | $ 677 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Operations Founded in 1982, Adobe Systems Incorporated is one of the largest and most diversified software companies in the world. We offer a line of products and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences across personal computers, devices and media. We market and license our products and services directly to enterprise customers through our sales force and to end users through app stores and our own website at www.adobe.com. We offer many of our products via a Software-as-a-Service (“SaaS”) model or a managed services model (both of which are referred to as a hosted or cloud-based) as well as through term subscription and pay-per-use models. We also distribute certain products and services through a network of distributors, value-added resellers (“VARs”), systems integrators (“SIs”), independent software vendors (“ISVs”), retailers, software developers and original equipment manufacturers (“OEMs”). In addition, we license our technology to hardware manufacturers, software developers and service providers for use in their products and solutions. Our products run on personal and server-based computers, as well as on smartphones, tablets and other devices, depending on the product. We have operations in the Americas, Europe, Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”). Basis of Presentation The accompanying Consolidated Financial Statements include those of Adobe and its subsidiaries, after elimination of all intercompany accounts and transactions. We have prepared the accompanying Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Use of Estimates In preparing Consolidated Financial Statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to, sales allowances and programs, bad debts, stock-based compensation, determining the fair value of acquired assets and assumed liabilities, excess inventory and purchase commitments, facilities lease losses, impairment of goodwill and intangible assets, litigation, income taxes and investments. Actual results may differ materially from these estimates. Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Our financial results for fiscal 2016 benefited from an extra week in the first quarter of fiscal 2016 due to our 52/53 week financial calendar whereby fiscal 2016 was a 53-week fiscal year compared with fiscal 2017 and 2015 which were 52-week fiscal years. Reclassifications Certain immaterial prior year amounts have been reclassified to conform to current year presentation in the Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Cash Flows. Significant Accounting Policies Revenue Recognition Our revenue is derived from the subscription, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of our enterprise customer arrangements are complex, involving multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer. We recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, we have delivered the product or performed the service, the fee is fixed or determinable and collection is probable. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of software, upgrades, maintenance and support, hosted services, and consulting. For our software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our software maintenance and support services, custom software development services, consulting services and training, when such services are sold optionally with software licenses. For multiple-element arrangements containing our non-software services, we must: (1) determine whether and when each element has been delivered; (2) determine the fair value of each element using the selling price hierarchy of VSOE of selling price, third-party evidence (“TPE”) of selling price or best-estimated selling price (“BESP”), as applicable; and (3) allocate the total price among the various elements based on the relative selling price method. For multiple-element arrangements that contain both software and non-software elements, we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy. We determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use BESP. Once revenue is allocated to software or software-related elements as a group, we recognize revenue in conformance with software revenue accounting guidance. Revenue is recognized when revenue recognition criteria are met for each element. We are generally unable to establish VSOE or TPE for non-software elements and as such, we use BESP. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. We determine BESP for a product or service by considering multiple factors including, but not limited to major product groupings, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. We must estimate certain royalty revenue amounts due to the timing of securing information from our customers. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Accordingly, our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events, thus materially impacting our financial position and results of operations. Subscription and Services and Support Revenue We recognize revenue for hosted services that are priced based on a committed number of transactions, ratably beginning on the date the services associated with the committed transactions are first made available to the customer and continuing through the end of the contractual service term. Over-usage fees, and fees billed based on the actual number of transactions from which we capture data, are billed in accordance with contract terms as these fees are incurred. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue, depending on whether all revenue recognition criteria have been met. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to the licensing of our enterprise, mobile and device products and solutions. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. Our consulting revenue is recognized using a time and materials basis and is measured monthly based on input measures, such as hours incurred to date, with consideration given to output measures, such as contract milestones when applicable. Our maintenance and support offerings, which entitle customers to receive product upgrades and enhancements on a when and if available basis or technical support, depending on the offering, are recognized ratably over the performance period of the arrangement. Our software subscription offerings, which may include product upgrades and enhancements on a when and if available basis, hosted services, and online storage, are generally offered to our customers over a specified period of time and we recognize revenue associated with these arrangements ratably over the subscription period. Product Revenue We recognize our product revenue upon shipment, provided all other revenue recognition criteria have been met. Our desktop application product revenue from distributors is subject to agreements allowing limited rights of return, rebates and price protection. Our direct sales and OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized for estimated future returns, price protection and rebates at the time the related revenue is recorded. The estimates for returns are adjusted periodically based upon historical rates of returns, inventory levels in the distribution channel and other related factors. We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating our software, provided collection of such revenue is deemed probable. For certain OEM customers, we must estimate royalty revenue due to the timing of securing customer information. This estimate is based on a combination of our generated forecasts and actual historical reporting by our OEM customers. To substantiate our ability to estimate revenue, we review license royalty revenue reports ultimately received from our significant OEM customers in comparison to the amounts estimated in the prior period. Our product-related deferred revenue includes maintenance upgrade revenue and customer advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application products is included in our product revenue line item as the maintenance primarily entitles customers to receive product upgrades. In cases where we provide a specified free upgrade to an existing product, we defer the fair value for the specified upgrade right until the future obligation is fulfilled or when the right to the specified free upgrade expires. Rights of Return, Rebates and Price Protection As discussed above, we offer limited rights of return, rebates and price protection of our products under various policies and programs with our distributors, resellers and/or end-user customers. We estimate and record reserves for these programs as an offset to revenue and accounts receivable. Below is a summary of each of the general provisions in our contracts: • Distributors are allowed limited rights of return of products purchased during the previous quarter. In addition, distributors are allowed to return products that have reached the end of their lives, as defined by us, and products that are being replaced by new versions. • We offer rebates to our distributors, resellers and/or end user customers. The amount of revenue that is reduced for distributor and reseller rebates is based on actual performance against objectives set forth by us for a particular reporting period (volume, timely reporting, etc.). If mail-in or other promotional rebates are offered, the amount of revenue reduced is based on the dollar amount of the rebate, taking into consideration an estimated redemption rate calculated using historical trends. • From time to time, we may offer price protection to our distributors that allow for the right to a credit if we permanently reduce the price of a software product. The amount of revenue that is reduced for price protection is calculated as the difference between the old and new price of a software product on inventory held by the distributor immediately prior to the effective date of the decrease. Although our subscription contracts are generally non-cancellable, a limited number of customers have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. In the event a customer cancels its contract, they are not entitled to a refund for prior services we have provided to them. On a quarterly basis, the amount of revenue that is reserved for future returns is calculated based on our historical trends and data specific to each reporting period. We review the actual returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate. We then apply the historical rate to the current period revenue as a basis for estimating future returns. When necessary, we also provide a specific returns reserve for product in the distribution channel in excess of estimated requirements. This estimate can be affected by the amount of a particular product in the channel, the rate of sell-through, product plans and other factors. Revenue Reserve Revenue reserve rollforward (in thousands): 2017 2016 2015 Beginning balance $ 23,096 $ 19,446 $ 17,402 Amount charged to revenue 61,031 55,739 45,676 Actual returns (62,121 ) (52,089 ) (43,632 ) Ending balance $ 22,006 $ 23,096 $ 19,446 Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition for our products and solutions described above. We recognize deferred revenue as revenue only when the revenue recognition criteria are met. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts which reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on both specific and general reserves. We regularly review our trade receivables allowances by considering such factors as historical experience, credit-worthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to pay and we specifically reserve for those deemed uncollectible. (in thousands) 2017 2016 2015 Beginning balance $ 6,214 $ 7,293 $ 7,867 Increase due to acquisition 2,391 77 326 Charged to operating expenses 4,411 1,337 1,472 Deductions (1) (3,865 ) (2,493 ) (2,372 ) Ending balance $ 9,151 $ 6,214 $ 7,293 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. Property and Equipment We record property and equipment at cost less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over their estimated useful lives ranging from 1 to 5 years for computers and equipment as well as server hardware under capital leases, 1 to 6 years for furniture and fixtures, 5 to 20 years for building improvements and up to 40 years for buildings. Leasehold improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or estimated useful lives ranging from 1 to 15 years. Goodwill, Purchased Intangibles and Other Long-Lived Assets Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our second quarter of each fiscal year. In performing our goodwill impairment test, we first evaluate goodwill to determine if it is more likely than not that the occurrence of an event or change in circumstances has reduced the fair value of a reporting segment below its carrying value. The qualitative assessment requires that we consider events or circumstances that may include macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segments’ net assets, and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of our reporting segments are greater than the carrying amounts, then the two-step goodwill impairment test is not performed. If the qualitative assessment indicates that the two-step quantitative analysis should be performed, we evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We completed our annual goodwill impairment test in the second quarter of fiscal 2017. We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment, and the two-step quantitative goodwill impairment test was not performed. We amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists. We continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets, including our intangible assets may not be recoverable. When such events or changes in circumstances occur, we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets. We did not recognize any intangible asset impairment charges in fiscal 2017 , 2016 or 2015 . During fiscal 2017 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years. Amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent. The weighted average useful lives of our intangible assets were as follows: Weighted Average Useful Life (years ) Purchased technology 5 Customer contracts and relationships 9 Trademarks 8 Acquired rights to use technology 9 Localization 1 Other intangibles 5 Internal Use Software We capitalize costs associated with customized internal-use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees who are directly associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. Taxes Collected from Customers We net taxes collected from customers against those remitted to government authorities in our financial statements. Accordingly, taxes collected from customers are not reported as revenue. Treasury Stock We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Consolidated Balance Sheets. Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses for fiscal 2017 , 2016 and 2015 were $141.7 million , $135.8 million and $113.6 million , respectively. Foreign Currency Translation We translate assets and liabilities of foreign subsidiaries, whose functional currency is their local currency, at exchange rates in effect at the balance sheet date. We translate revenue and expenses at the monthly average exchange rates. We include accumulated net translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income (loss). Foreign Currency and Other Hedging Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We use foreign exchange option and forward contracts for revenue denominated in Euros, British Pounds and Japanese Yen. We hedge our net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Contracts that do not qualify for hedge accounting are adjusted to fair value through earnings. See Note 5 for information regarding our hedging activities. Gains and losses from foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income, net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue are designated as cash flow hedges with gains and losses recorded net of tax, as a component of other comprehensive income in stockholders’ equity and reclassified into revenue at the time the forecasted transactions occur. Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk are short-term fixed-income investments, structured repurchase transactions, foreign currency and interest rate hedge contracts and trade receivables. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and investments are held and primarily managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer and we believe no significant concentration of credit risk exists with respect to these investments. We enter into foreign currency hedge contracts with bank counterparties that could expose us to credit related losses in the event of their nonperformance. This is largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit related losses with the same counterparty by permitting net settlement transactions. The aggregate fair value of foreign currency contracts in net asset positions as of December 1, 2017 and December 2, 2016 was $14.2 million and $38.1 million respectively. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. These exposures could be reduced by certain immaterial liabilities included in master netting arrangements with those same counterparties. Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and software products to the retail market, customers to whom we license software directly and our SaaS offerings. A credit review is completed for our new distributors, dealers and OEMs. We also perform ongoing credit evaluations of our customers’ financial condition and require letters of credit or other guarantees, whenever deemed necessary. The credit limit given to the customer is based on our risk assessment of their ability to pay, country risk and other factors and is not contingent on the resale of the product or on the collection of payments from their customers. If we license our software or provide SaaS services to a customer where we have a reason to believe the customer’s ability to pay is not probable, due to country risk or credit risk, we will not recognize the revenue. We will revert to recognizing the revenue on a cash basis, assuming all other criteria for revenue recognition has been met. Recently Adopted Accounting Guidance On March 30, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies various aspects related to the accounting and presentation of share-based payments. The amendments require entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. Tax-related cash flows resulting from share-based payments are required to be reported as operating activities in the statement of cash flows. The updates relating to the income tax effects of the share-based payments including the cash flow presentation must be adopted either prospectively or retrospectively. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard during the first quarter of fiscal 2017. As required by the standard, excess tax benefits recognized on stock-based compensation expense were reflected in our Consolidated Statements of Income as a component of the provision for income taxes rather than paid-in capital on a prospective basis. Accordingly, we recorded excess tax benefits within our provision for income taxes, rather than additional paid-in capital upon adoption. The cumulative effect to retained earnings from previously unrecognized excess tax benefits, after offset by the related valuation allowance, was not significant to our Consolidated Balance Sheets. We also elected to prospectively apply the change in presentation of excess tax benefits wherein excess tax benefits recognized on stock-based compensation expense were classified as operating activities in our Consolidated Statements of Cash Flows for fiscal 2017. Prior period classification of cash flows related to excess tax benefits were not adjusted in our Consolidated Statements of Cash Flows. Presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to all periods presented as such cash flows have historically been presented as financing activities. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. There have been no other new accounting pronouncements made effective during fiscal 2017 that have significance, or potential significance, to our Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the full retrospective or modified retrospective transition method. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of fiscal 2019. We expect to adopt this updated standard in the first quarter of fiscal 2019 on a modified retrospective basis. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. While we are continuing to assess all potential impacts of the new standard, we currently believe that the most significant impact relates to our accounting for arrangements that include on-premise term-based software licenses bundled with maintenance and support. Under current GAAP, the revenue attributable to these software licenses is recognized ratably over the term of the arrangement because VSOE does not exist for the undelivered maintenance and support element as it is not sold separately. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fee upon delivery of the software licenses. We expect revenue related to our professional services and cloud offerings, including Creative Cloud and Document Cloud for business enterprises, individuals and teams, to remain substantially unchanged. When sold with cloud-enabled services, Creative Cloud and Document Cloud require a significant level of integration and interdependency with software and the individual components are not considered distinct. Revenue for these offerings will continue to be recognized over the period in which the cloud services are provided |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 01, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS TubeMogul On December 19, 2016 , we completed our acquisition of TubeMogul, a publicly held video advertising platform company. As of the end of fiscal 2017, we are continuing to integrate TubeMogul into our Digital Marketing reportable segment. Under the acquisition method of accounting, the total final purchase price was allocated to TubeMogul’s net tangible and intangible assets based upon their estimated fair values as of December 19, 2016 . During fiscal 2017, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to tangible assets, liabilities assumed, and their related impact to goodwill. The total final purchase price for TubeMogul was $560.8 million of which $348.4 million was allocated to goodwill that was non-deductible for tax purposes, $113.1 million to identifiable intangible assets and $99.3 million to net assets acquired. Fotolia On January 27, 2015 , we completed our acquisition of privately held Fotolia, a leading marketplace for royalty-free photos, images, graphics and HD videos. During fiscal 2015, we integrated Fotolia into our Digital Media reportable segment. Under the acquisition method of accounting, the total final purchase price was allocated to Fotolia's net tangible and intangible assets based upon their estimated fair values as of January 27, 2015 . During fiscal 2015, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to assumed intangible assets, calculation of deferred tax assets, liabilities and equity awards. The total final purchase price for Fotolia was $807.5 million of which $745.1 million was allocated to goodwill that was non-deductible for tax purposes, $204.4 million to identifiable intangible assets and $142.0 million to net liabilities assumed. We also completed other immaterial business acquisitions during the fiscal years presented. Pro forma information has not been presented for any of our fiscal 2017, 2016 and 2015 acquisitions as the impact to our Consolidated Financial Statements was not material. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 01, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 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.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are recognized when realized in our Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. Cash, cash equivalents and short-term investments consisted of the following as of December 1, 2017 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 280,488 $ — $ — $ 280,488 Cash equivalents: Money market mutual funds 2,006,741 — — 2,006,741 Time deposits 18,843 — — 18,843 Total cash equivalents 2,025,584 — — 2,025,584 Total cash and cash equivalents 2,306,072 — — 2,306,072 Short-term fixed income securities: Asset-backed securities 98,403 1 (403 ) 98,001 Corporate bonds and commercial paper 2,461,691 2,694 (10,125 ) 2,454,260 Foreign government securities 2,396 — (8 ) 2,388 Municipal securities 21,189 8 (132 ) 21,065 U.S. Treasury securities 941,538 2 (3,552 ) 937,988 Total short-term investments 3,525,217 2,705 (14,220 ) 3,513,702 Total cash, cash equivalents and short-term investments $ 5,831,289 $ 2,705 $ (14,220 ) $ 5,819,774 Cash, cash equivalents and short-term investments consisted of the following as of December 2, 2016 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 208,635 $ — $ — $ 208,635 Cash equivalents: Corporate bonds and commercial paper 1,249 — — 1,249 Money market mutual funds 782,210 — — 782,210 Municipal securities 1,301 — — 1,301 Time deposits 17,920 — — 17,920 Total cash equivalents 802,680 — — 802,680 Total cash and cash equivalents 1,011,315 — — 1,011,315 Short-term fixed income securities: Asset backed securities 111,009 95 (190 ) 110,914 Corporate bonds and commercial paper 2,464,769 3,135 (9,554 ) 2,458,350 Municipal securities 134,710 37 (525 ) 134,222 U.S. agency securities 39,538 42 — 39,580 U.S. Treasury securities 1,008,195 194 (1,470 ) 1,006,919 Total short-term investments 3,758,221 3,503 (11,739 ) 3,749,985 Total cash, cash equivalents and short-term investments $ 4,769,536 $ 3,503 $ (11,739 ) $ 4,761,300 See Note 4 for further information regarding the fair value of our financial instruments. The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and commercial paper $ 1,338,232 $ (5,459 ) $ 1,282,076 $ (9,474 ) Asset-backed securities 64,618 (193 ) 54,063 (189 ) Municipal securities 11,805 (115 ) 114,810 (525 ) Foreign government securities 2,388 (8 ) — — U.S. Treasury and agency securities 593,296 (2,087 ) 580,529 (1,470 ) Total $ 2,010,339 $ (7,862 ) $ 2,031,478 $ (11,658 ) There w e re 894 securities and 1,052 securities in an unrealized loss position for less than twelve months at December 1, 2017 and at December 2, 2016 , respectively. The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and commercial paper $ 500,689 $ (4,666 ) $ 39,162 $ (80 ) Asset-backed security 32,383 (210 ) 1,331 (1 ) Municipal securities 598 (17 ) — — U.S. Treasury securities 338,950 (1,465 ) — — Total $ 872,620 $ (6,358 ) $ 40,493 $ (81 ) There were 360 securities and 23 securities in an unrealized loss position for more than twelve months at December 1, 2017 and at December 2, 2016 , respectively. The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of December 1, 2017 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 1,025,894 $ 1,023,639 Due between one and two years 1,294,919 1,289,307 Due between two and three years 815,254 812,828 Due after three years 389,150 387,928 Total $ 3,525,217 $ 3,513,702 We review our debt and marketable equity securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to interest and other income, net in our Consolidated Statements of Income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. For equity securities, the write-down would be recorded to investment gains (losses), net in our Consolidated Statements of Income. During fiscal 2017 and 2015 , we did not consider any of our investments to be other-than-temporarily impaired. During fiscal 2016 , we recorded immaterial other-than-temporary impairment losses associated with certain of our fixed income securities and wrote down the securities to fair value. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There have been no transfers between fair value measurement levels during the year ended December 1, 2017 . The fair value of our financial assets and liabilities at December 1, 2017 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 2,006,741 $ 2,006,741 $ — $ — Time deposits 18,843 18,843 — — Short-term investments: Asset-backed securities 98,001 — 98,001 — Corporate bonds and commercial paper 2,454,260 — 2,454,260 — Foreign government securities 2,388 — 2,388 — Municipal securities 21,065 — 21,065 — U.S. Treasury securities 937,988 — 937,988 — Prepaid expenses and other current assets: Foreign currency derivatives 14,198 — 14,198 — Other assets: Deferred compensation plan assets 56,690 2,573 54,117 — Total assets $ 5,610,174 $ 2,028,157 $ 3,582,017 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 1,598 $ — $ 1,598 $ — Other liabilities: Interest rate swap derivatives 1,058 — 1,058 — Total liabilities $ 2,656 $ — $ 2,656 $ — The fair value of our financial assets and liabilities at December 2, 2016 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Corporate bonds and commercial paper $ 1,249 $ — $ 1,249 $ — Money market mutual funds 782,210 782,210 — — Municipal securities 1,301 — 1,301 — Time deposits 17,920 17,920 — — Short-term investments: Asset-backed securities 110,914 — 110,914 — Corporate bonds and commercial paper 2,458,350 — 2,458,350 — Municipal securities 134,222 — 134,222 — U.S. agency securities 39,580 — 39,580 — U.S. Treasury securities 1,006,919 — 1,006,919 — Prepaid expenses and other current assets: Foreign currency derivatives 38,112 — 38,112 — Other assets: Deferred compensation plan assets 42,180 1,831 40,349 — Interest rate swap derivatives 13,117 — 13,117 — Total assets $ 4,646,074 $ 801,961 $ 3,844,113 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 5,246 $ — $ 5,246 $ — Total liabilities $ 5,246 $ — $ 5,246 $ — See Note 3 for further information regarding the fair value of our financial instruments. Our fixed income available-for-sale debt securities consist of high quality, investment grade securities from diverse issuers with a weighted average credit rating of AA-. We value these securities based on pricing from independent pricing vendors who use matrix pricing valuation techniques including market approach methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Inputs include quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value, including benchmark yields, issuer spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. We therefore classify all of our fixed income available-for-sale securities as Level 2. We perform routine procedures such as comparing prices obtained from multiple independent sources to ensure that appropriate fair values are recorded. The fair values of our money market mutual funds and time deposits are based on the closing price of these assets as of the reporting date. We classify our money market mutual funds and time deposits as Level 1. Our Level 2 over-the-counter foreign currency and interest rate swap derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange and interest rate data at the measurement date. Our deferred compensation plan assets consist of money market mutual funds and other mutual funds. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have direct investments in privately held companies accounted for under the cost and equity method, which are periodically assessed for other-than-temporary impairment. If we determine that an other-than-temporary impairment has occurred, we write down the investment to its fair value. We estimate fair value of our cost and equity method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. During fiscal 2017 and 2015, we determined there were no other-than-temporary impairments on our cost and equity method investments. During fiscal 2016 , we determined there were immaterial other-than-temporary impairments on certain of our cost method investments and wrote down the investments to fair value. The fair value of our senior notes was $1.98 billion as of December 1, 2017 , based on observable market prices in less active markets and categorized as Level 2. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 01, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES Hedge Accounting and Hedging Programs We recognize derivative instruments and hedging activities as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. We evaluate hedge effectiveness at the inception of the hedge prospectively as well as retrospectively, and record any ineffective portion of the hedging instruments in interest and other income (expense), net on our Consolidated Statements of Income. The net gain (loss) recognized in interest and other income (expense), net for cash flow hedges due to hedge ineffectiveness was insignificant for all fiscal years presented. The time value of purchased contracts is recorded in interest and other income (expense), net in our Consolidated Statements of Income. The bank counterparties to these contracts expose us to credit-related losses in the event of their nonperformance which are largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit-related losses with the same counterparty by permitting net settlement of transactions. Balance Sheet Hedging — Hedges of Foreign Currency Assets and Liabilities We also hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded to interest and other income (expense), net in our Consolidated Statements of Income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of December 1, 2017 , total notional amounts of outstanding contracts were $333.9 million which included the notional equivalent of $105.0 million in Euros, $34.6 million in British Pounds, $45.4 million in Japanese Yen, $78.0 million in Indian Rupees, and $70.9 million in other foreign currencies. As of December 2, 2016 , total notional amounts of outstanding contracts were $313.8 million which included the notional equivalent of $152.8 million in Euros, $33.6 million in British Pounds, $46.5 million in Japanese Yen, $26.4 million in Indian Rupees, and $54.5 million in other foreign currencies. At December 1, 2017 and December 2, 2016 , the outstanding balance sheet hedging derivatives had maturities of 180 days or less. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months . We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to interest and other income (expense), net in our Consolidated Statements of Income at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in interest and other income (expense), net in our Consolidated Statements of Income. For fiscal 2017 and 2016 , there were no net gains or losses recognized in other income relating to hedges of forecasted transactions that did not occur. In fiscal 2015 , these net gains or losses were immaterial. Fair Value Hedging—Hedges of Interest Rate Risks During the third quarter of fiscal 2014, we entered into interest rate swaps designated as a fair value hedge related to our $900 million of 4.75% fixed interest rate senior notes due February 1, 2020 (the “2020 Notes”). In effect, the interest rate swaps convert the fixed interest rate on our 2020 Notes to a floating interest rate based on the LIBOR. Under the terms of the swaps, we will pay monthly interest at the one-month LIBOR rate plus a fixed number of basis points on the $900 million notional amount through February 1, 2020. In exchange, we will receive 4.75% fixed rate interest from the swap counterparties. See Note 15 for further details regarding our debt. The interest rate swaps are accounted for as fair value hedges and substantially offset the changes in fair value of the hedged portion of the underlying debt that are attributable to the changes in market risk. Therefore, the gains and losses related to changes in the fair value of the interest rate swaps are included in interest and other income (expense), net in our Consolidated Statements of Income. The fair value of the interest rate swaps is reflected in other liabilities or other assets in our Consolidated Balance Sheets. The fair value of derivative instruments on our Consolidated Balance Sheets as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange option contracts (1)(2) $ 12,918 $ — $ 34,355 $ — Interest rate swap (3) — 1,058 13,117 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 1,280 1,598 3,757 5,246 Total derivatives $ 14,198 $ 2,656 $ 51,229 $ 5,246 _________________________________________ (1) Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next twelve months. (3) Included in other liabilities and other assets in fiscal 2017 and 2016, respectively, on our Consolidated Balance Sheets. The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Derivatives in cash flow hedging relationships: Net gain (loss) recognized in other comprehensive income, net of tax (1) $ 6,917 $ — $ 36,511 $ — $ 39,825 $ — Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax (2) $ 32,852 $ — $ 18,823 $ — $ 56,336 $ — Net gain (loss) recognized in income (3) $ (30,243 ) $ — $ (29,169 ) $ — $ (17,423 ) $ — Derivatives not designated as hedging relationships: Net gain (loss) recognized in income (4) $ — $ 6,586 $ — $ (1,308 ) $ — $ 4,430 _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. (4) Classified in interest and other income (expense), net. Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ (6,142 ) $ 832 $ (10,952 ) Net unrealized gain (loss) recognized in other income (907 ) (6,070 ) 3,815 (7,049 ) (5,238 ) (7,137 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain recognized in other income 5,415 174 5,490 Net unrealized gain (loss) recognized in other income 1,171 (1,482 ) (1,060 ) 6,586 (1,308 ) 4,430 Net gain (loss) recognized in interest and other income (expense), net $ (463 ) $ (6,546 ) $ (2,707 ) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Computers and equipment $ 1,128,264 $ 1,051,937 Furniture and fixtures 115,273 94,243 Capital projects in-progress 5,575 7,648 Leasehold improvements 120,165 110,414 Land 77,723 77,340 Buildings 490,665 382,364 Building improvements 265,829 202,266 Total 2,203,494 1,926,212 Less accumulated depreciation and amortization (1,266,518 ) (1,109,948 ) Property and equipment, net $ 936,976 $ 816,264 Depreciation and amortization expense of property and equipment for fiscal 2017 , 2016 and 2015 was $156.9 million , $157.6 million and $146.3 million , respectively. In March 2017, we exercised our option to purchase the Almaden Tower for a total purchase price of $103.6 million . We capitalized the Almaden Tower as property and equipment on our Consolidated Balance Sheets at $104.2 million , the lesser of cost or fair value, which represented the total purchase price plus other direct costs associated with the purchase. |
Goodwill and Purchased and Othe
Goodwill and Purchased and Other Intangibles | 12 Months Ended |
Dec. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED AND OTHER INTANGIBLES | GOODWILL AND PURCHASED AND OTHER INTANGIBLES Goodwill by reportable segment and activity for the years ended December 1, 2017 and December 2, 2016 was as follows (in thousands): 2015 Acquisitions Other (1) 2016 Acquisitions Other (1) 2017 Digital Media $ 2,796,302 $ — $ 288 $ 2,796,590 $ — $ 4,501 $ 2,801,091 Digital Marketing 2,312,158 35,802 3,502 2,351,462 348,352 62,232 2,762,046 Print and Publishing 258,421 — 1 258,422 — 2 258,424 Goodwill $ 5,366,881 $ 35,802 $ 3,791 $ 5,406,474 $ 348,352 $ 66,735 $ 5,821,561 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. Purchased and other intangible assets by reportable segment as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Digital Media $ 128,243 $ 203,570 Digital Marketing 257,408 210,823 Print and Publishing 7 12 Purchased and other intangible assets, net $ 385,658 $ 414,405 Purchased and other intangible assets subject to amortization as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Purchased technology $ 223,252 $ (110,433 ) $ 112,819 $ 149,253 $ (82,091 ) $ 67,162 Customer contracts and relationships $ 577,484 $ (356,613 ) $ 220,871 $ 541,366 $ (274,380 ) $ 266,986 Trademarks 76,255 (56,094 ) 20,161 76,355 (46,846 ) 29,509 Acquired rights to use technology 71,130 (54,223 ) 16,907 87,403 (60,929 ) 26,474 Localization 603 (170 ) 433 631 (177 ) 454 Other intangibles 38,693 (24,226 ) 14,467 38,693 (14,873 ) 23,820 Total other intangible assets $ 764,165 $ (491,326 ) $ 272,839 $ 744,448 $ (397,205 ) $ 347,243 Purchased and other intangible $ 987,417 $ (601,759 ) $ 385,658 $ 893,701 $ (479,296 ) $ 414,405 In fiscal 2017 , certain purchased intangibles associated with our acquisitions in prior years and certain other acquired rights to use technology became fully amortized and were removed from the Consolidated Balance Sheets. In fiscal 2016, purchased intangibles associated with our acquisition of EchoSign and certain other acquired rights to use technology became fully amortized and were removed from the Consolidated Balance Sheets. Amortization expense related to purchased and other intangible assets was $153.6 million , $152.4 million , and $174.5 million for fiscal 2017 , 2016 and 2015 respectively. Of these amounts, $76.1 million , $71.1 million , and $104.4 million were included in cost of sales for fiscal 2017 , 2016 and 2015 respectively. Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 14 years. As of December 1, 2017 , we expect amortization expense in future periods to be as follows (in thousands): Fiscal Year Purchased Technology Other Intangible Assets 2018 $ 37,984 $ 97,726 2019 34,404 69,733 2020 32,111 39,658 2021 7,203 17,304 2022 1,117 14,297 Thereafter — 34,121 Total expected amortization expense $ 112,819 $ 272,839 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 01, 2017 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses as of December 1, 2017 and December 2, 2016 consisted of the following (in thousands): 2017 2016 Accrued compensation and benefits $ 417,742 $ 339,487 Accrued media costs 134,525 5,144 Sales and marketing allowances 47,389 55,681 Accrued corporate marketing 72,087 55,218 Taxes payable 49,550 43,113 Royalties payable 46,411 25,089 Accrued interest expense 25,594 25,805 Other 200,475 190,093 Accrued expenses $ 993,773 $ 739,630 Accrued media costs primarily relate to our advertising platform offerings from TubeMogul, which are part of the Advertising Cloud. We accrue for media costs related to impressions purchased from third-party ad inventory sources. Other primarily includes general corporate accruals for local and regional expenses. Other is also comprised of deferred rent related to office locations with rent escalations and foreign currency liability derivatives. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes for fiscal 2017 , 2016 and 2015 consisted of the following (in thousands): 2017 2016 2015 Domestic $ 1,056,156 $ 805,749 $ 589,371 Foreign 1,081,485 629,389 284,410 Income before income taxes $ 2,137,641 $ 1,435,138 $ 873,781 The provision for income taxes for fiscal 2017 , 2016 and 2015 consisted of the following (in thousands): 2017 2016 2015 Current: United States federal $ 298,802 $ 94,396 $ 204,834 Foreign 60,962 59,749 52,125 State and local 33,578 15,222 (14,975 ) Total current 393,342 169,367 241,984 Deferred: United States federal 48,905 33,924 (31,011 ) Foreign (4,242 ) (2,751 ) (9,368 ) State and local 5,682 (9,287 ) (25,511 ) Total deferred 50,345 21,886 (65,890 ) Tax expense attributable to employee stock plans — 75,103 68,136 Provision for income taxes $ 443,687 $ 266,356 $ 244,230 See Note 1 to the Consolidated Financial Statements for further information on our adoption of ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 35% by income before income taxes) as a result of the following (in thousands): 2017 2016 2015 Computed “expected” tax expense $ 748,174 $ 502,298 $ 305,824 State tax expense, net of federal benefit 25,131 10,636 (8,316 ) Tax credits (38,000 ) (48,383 ) (25,967 ) Differences between statutory rate and foreign effective tax rate (215,490 ) (133,778 ) (90,063 ) Stock-based compensation, net of tax deduction (42,512 ) 15,101 9,623 Resolution of income tax examinations (31,358 ) (68,003 ) (17,595 ) Domestic manufacturing deduction benefit (32,200 ) (26,990 ) (16,800 ) Tax charge for licensing acquired company technology to foreign subsidiaries 24,771 5,346 80,015 Other, net 5,171 10,129 7,509 Provision for income taxes $ 443,687 $ 266,356 $ 244,230 Deferred Tax Assets and Liabilities The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 1, 2017 and December 2, 2016 are presented below (in thousands): 2017 2016 Deferred tax assets: Acquired technology $ 4,846 $ 7,421 Reserves and accruals 48,761 35,440 Deferred revenue 23,452 21,039 Unrealized losses on investments 11 2,391 Stock-based compensation 74,942 56,353 Net operating loss carryforwards of acquired companies 44,465 31,305 Credit carryforwards 124,205 63,315 Capitalized expenses 13,428 15,571 Benefits relating to tax positions 33,318 39,492 Other 30,289 26,439 Total gross deferred tax assets 397,717 298,766 Deferred tax asset valuation allowance (93,568 ) (24,265 ) Total deferred tax assets 304,149 274,501 Deferred tax liabilities: Depreciation and amortization 84,064 78,619 Undistributed earnings of foreign subsidiaries 382,744 292,844 Acquired intangible assets 117,282 120,698 Total deferred tax liabilities 584,090 492,161 Net deferred tax liabilities: $ 279,941 $ 217,660 Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Included in the deferred tax assets and liabilities for fiscal 2017 and 2016 are amounts related to various acquisitions. The deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. We provide U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered permanently reinvested outside the United States. To the extent that the foreign earnings previously treated as permanently reinvested are repatriated, the related U.S. tax liability may be reduced by any foreign income taxes paid on these earnings. As of December 1, 2017, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $5.0 billion . The unrecognized deferred tax liability for these earnings is approximately $1.4 billion . As of December 1, 2017 , we have net operating loss carryforwards of approximately $118.4 million for federal and $52.6 million for state. We also have state and foreign tax credit carryforwards of approximately $166.2 million and $16.2 million , respectively. The net operating loss carryforward assets and tax credits will expire in various years from fiscal 2018 through 2036 . The state tax credit carryforwards can be carried forward indefinitely. The net operating loss carryforward assets and certain credits are reduced by the valuation allowance and are subject to an annual limitation under Internal Revenue Code Section 382, the carrying amount of which are expected to be fully realized. As of December 1, 2017 , a valuation allowance of $93.6 million has been established for certain deferred tax assets related to the impairment of investments and certain state and foreign assets. For fiscal 2017 , the total change in the valuation allowance was $69.3 million , of which $55.3 million was related to the deferred tax attributes recorded due to our early adoption of the new accounting guidance related to stock-based compensation. Accounting for Uncertainty in Income Taxes During fiscal 2017 and 2016 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 2017 2016 Beginning balance $ 178,413 $ 258,718 Gross increases in unrecognized tax benefits – prior year tax positions 3,680 6,047 Gross decreases in unrecognized tax benefits – prior year tax positions (30,166 ) (67,870 ) Gross increases in unrecognized tax benefits – current year tax positions 24,927 23,068 Settlements with taxing authorities (3,876 ) (33,265 ) Lapse of statute of limitations (8,819 ) (8,456 ) Foreign exchange gains and losses 8,786 171 Ending balance $ 172,945 $ 178,413 The combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $23.6 million and $22.4 million for fiscal 2017 and 2016, respectively. These amounts were included in non-current income taxes payable in their respective years. We file income tax returns in the United States on a federal basis and in many U.S. state and foreign jurisdictions. We are subject to the continual examination of our income tax returns by the IRS and other domestic and foreign tax authorities. Our major tax jurisdictions are Ireland, California and the United States. For Ireland, California and the United States, the earliest fiscal years open for examination are 2008 , 2010 and 2013 , respectively. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from these examinations. We believe such estimates to be reasonable; however, there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position. The timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. These events could cause large fluctuations in the balance of current and non-current assets, liabilities and income taxes payable. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire, or both. Given the uncertainties described above, we can only determine a range of estimated potential decreases in underlying unrecognized tax benefits ranging from $0 to approximately $40 million . Subsequent to December 1, 2017 , the “Tax Cuts and Jobs Act” (the “Act”) was enacted and included broad tax reforms that are applicable to Adobe. Under the provisions of the Act, the U.S. corporate tax rate decreased from 35% to 21% effective January 1, 2018, our undistributed foreign earnings are subject to taxation in fiscal 2018 and are available for repatriation, and our future foreign earnings are subject to U.S. taxation. These changes will require us to remeasure our deferred tax assets and liabilities and reclassify deferred tax liabilities related to undistributed foreign earnings to long-term income taxes payable due over eight years. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 01, 2017 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Retirement Savings Plan In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which is a retirement savings plan covering substantially all of our U.S. employees, now referred to as the Adobe 401(k) Retirement Savings Plan. Under the plan, eligible employees may contribute up to 65% of their pretax or after-tax salary, subject to the Internal Revenue Service annual contribution limits. In fiscal 2017 , we matched 50% of the first 6% of the employee’s eligible compensation. We contributed $34.3 million , $33.4 million and $25.7 million in fiscal 2017 , 2016 and 2015 , respectively. We are under no obligation to continue matching future employee contributions and, at our discretion, may change our practices at any time. Deferred Compensation Plan On September 21, 2006, the Board of Directors approved the Adobe Systems Incorporated Deferred Compensation Plan, effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded, non-qualified, deferred compensation arrangement under which certain executives and members of the Board of Directors are able to defer a portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100% of other specified compensation, including commissions, bonuses, performance-based and time-based restricted stock units, and directors’ fees. Participants are able to elect the payment of benefits to begin on a specified date at least three years after the end of the plan year in which election is made. For cash benefit elections, distributions are made in cash and in the form of a lump sum or annual installments over five years. For stock benefit elections, distributions are settled in stock and in the form of a lump sum payment only. As of December 1, 2017 and December 2, 2016 , the invested amounts under the Deferred Compensation Plan total $56.7 million and $42.2 million , respectively and were recorded as other assets on our Consolidated Balance Sheets. As of December 1, 2017 and December 2, 2016 , $67.2 million and $49.0 million , respectively, was recorded as long-term liabilities to recognize undistributed deferred compensation due to employees. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Our stock-based compensation programs are long-term retention programs that are intended to attract, retain and provide incentives for employees, officers and directors, and to align stockholder and employee interests. We have the following stock-based compensation plans and programs: Restricted Stock Unit Plan We grant restricted stock units to eligible employees under our 2003 Equity Incentive Plan, as amended ( “ 2003 Plan ” ). Restricted stock units granted as part of our annual review process or for promotions vest annually over three years. Restricted stock units granted to new hires generally vest over four years. Certain grants have other vesting periods approved by our Board of Directors or an authorized committee. We grant performance awards to officers and key employees under our 2003 Plan which cliff-vest after three years. As of December 1, 2017 , we had reserved 183.2 million shares of common stock for issuance under our 2003 Plan and had 93.6 million shares available for grant. Employee Stock Purchase Plan Our 1997 Employee Stock Purchase Plan (“ESPP”) allows eligible employee participants to purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of a twenty-four month offering period with four six-month purchase periods in each offering period. Employees purchase shares in each purchase period at 85% of the market value of our common stock at either the beginning of the offering period or the end of the purchase period, whichever price is lower. The ESPP will continue until the earlier of (i) termination by the Board or (ii) the date on which all of the shares available for issuance under the plan have been issued. As of December 1, 2017 , we had reserved 93.0 million shares of our common stock for issuance under the ESPP and approximately 7.0 million shares remain available for future issuance. Stock Option Plan The 2003 Plan allows us to grant options to all employees, including executive officers, outside consultants and non-employee directors. This plan will continue until the earlier of (i) termination by the Board or (ii) the date on which all of the shares available for issuance under the plan have been issued and restrictions on issued shares have lapsed. Option vesting periods used in the past were generally four years and expire seven years from the effective date of grant. We eliminated the use of stock option grants for all employees effective fiscal 2012, and for all of the non-employee directors effective fiscal 2014, but may choose to issue stock options in the future. Performance Share Programs Our 2017, 2016 and 2015 Performance Share Programs aim to help focus key employees on building stockholder value, provide significant award potential for achieving outstanding Company performance and enhance the ability of the Company to attract and retain highly talented and competent individuals. The Executive Compensation Committee of our Board of Directors approves the terms of each of our Performance Share Programs, including the award calculation methodology, under the terms of our 2003 Plan. Shares may be earned based on the achievement of an objective relative total stockholder return measured over a three-year performance period. Performance share awards will be awarded and fully vest upon the later of the Executive Compensation Committee's certification of the level of achievement or the three-year anniversary of each grant. Program participants generally have the ability to receive up to 200% of the target number of shares originally granted. On January 24, 2017, the Executive Compensation Committee approved the 2017 Performance Share Program, the terms of which are similar to prior year performance share programs as discussed above. As of December 1, 2017 , the shares awarded under our 2017 , 2016 and 2015 Performance Share Programs are yet to be achieved. Issuance of Shares Upon exercise of stock options, vesting of restricted stock units and performance shares, and purchases of shares under the ESPP, we will issue treasury stock. If treasury stock is not available, common stock will be issued. In order to minimize the impact of on-going dilution from exercises of stock options and vesting of restricted stock units and performance shares, we instituted a stock repurchase program. See Note 12 for information regarding our stock repurchase programs. Valuation of Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. Our performance share awards are valued using a Monte Carlo Simulation model. The fair value of the awards are fixed at grant date and amortized over the longer of the remaining performance or service period. We use the Black-Scholes option pricing model to determine the fair value of ESPP shares. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends. The expected term of ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights were as follows: 2017 2016 2015 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 22% - 27% 26% - 29% 26% - 30% Risk free interest rate 0.62% - 1.41% 0.37% - 1.06% 0.11% - 0.67% Summary of Restricted Stock Units Restricted stock unit activity for fiscal 2017 , 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Beginning outstanding balance 8,316 10,069 13,564 Awarded 5,018 4,440 4,012 Released (3,859 ) (5,471 ) (6,561 ) Forfeited (766 ) (722 ) (946 ) Increase due to acquisition 595 — — Ending outstanding balance 9,304 8,316 10,069 The weighted average grant date fair values of restricted stock units granted during fiscal 2017 , 2016 and 2015 were $120.33 , $89.87 and $75.47 , respectively. The total fair value of restricted stock units vested during fiscal 2017 , 2016 and 2015 was $472.0 million , $499.8 million and $495.1 million , respectively. Information regarding restricted stock units outstanding at December 1, 2017 , December 2, 2016 and November 27, 2015 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units vested and expected to vest 8,608 1.05 $ 1,545.3 2016 Restricted stock units outstanding 8,316 1.11 $ 829.4 Restricted stock units vested and expected to vest 7,613 1.04 $ 759.3 2015 Restricted stock units outstanding 10,069 0.93 $ 928.0 Restricted stock units vested and expected to vest 9,267 0.86 $ 842.9 _________________________________________ (*) 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 December 1, 2017 , December 2, 2016 and November 27, 2015 were $179.52 , $99.73 and $92.17 , respectively. Summary of Performance Shares In the first quarter of fiscal 2017, the Executive Compensation Committee certified the actual performance achievement of participants in the 2014 Performance Share Program. Actual performance resulted in participants achieving 198% of target or approximately 0.6 million additional shares. The shares granted and achieved under the 2014 Performance Share Program fully vested on the three-year anniversary of the grant on January 24, 2017, if not forfeited. In the first quarter of fiscal 2016, the Executive Compensation Committee certified the actual performance achievement of participants in the 2013 Performance Share Program. Actual performance resulted in participants achieving 198% of target or approximately 0.7 million additional shares. The shares granted and achieved under the 2013 Performance Share Program fully vested on the three-year anniversary of the grant on January 24, 2016, if not forfeited. As of December 1, 2017 , the shares awarded under our 2017 , 2016 and 2015 Performance Share Programs are yet to be achieved. Performance share activity for fiscal 2017 , 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Shares Granted Maximum Shares Eligible to Receive Shares Granted Maximum Shares Eligible to Receive Shares Maximum Beginning outstanding balance 1,630 3,261 1,940 3,881 1,517 3,034 Awarded 1,082 (1) 1,040 1,206 (2) 1,053 671 1,342 Achieved (1,135 ) (3) (1,147 ) (1,373 ) (3) (1,387 ) — — Forfeited (43 ) (86 ) (143 ) (286 ) (248 ) (495 ) Ending outstanding balance 1,534 3,068 1,630 3,261 1,940 3,881 _________________________________________ (1) Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. (2) Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. (3) Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs. The total fair value of performance awards vested during fiscal 2017 , 2016 and 2015 was $127.4 million , $123.1 million and $26.1 million , respectively. Summary of Employee Stock Purchase Plan Shares The weighted average subscription date fair value of shares under the ESPP during fiscal 2017 , 2016 and 2015 were $29.86 , $24.84 and $20.81 , respectively. Employees purchased 1.9 million shares at an average price of $77.63 , 1.9 million shares at an average price of $66.13 , and 2.1 million shares at an average price of $52.37 , respectively, for fiscal 2017 , 2016 and 2015 . The intrinsic value of shares purchased during fiscal 2017 , 2016 and 2015 was $97.7 million , $54.3 million and $53.9 million , respectively. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Summary of Stock Options As of December 1, 2017 and December 2, 2016 , we had 0.3 million and 0.6 million stock options outstanding, respectively. Grants to Executive Officers All equity awards granted to executive officers are made after a review by and with the approval of the Executive Compensation Committee of the Board of Directors. Grants to Non-Employee Directors Although the 2003 Plan provides for the granting of non-qualified stock options and restricted stock units to non-employee directors, restricted stock units are the primary form of our grants to non-employee directors since fiscal 2014. The initial equity grant to a new non-employee director is a restricted stock unit award having an aggregate value of $0.3 million based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting. The actual target grant value will be prorated based on the number of days remaining before the next annual meeting or the date of the first anniversary of our last annual meeting if the next annual meeting is not yet scheduled. Annual equity grants to non-employee directors in the form of restricted stock units shall have an aggregate value of $0.3 million as based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting. Restricted stock units granted to directors for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Restricted stock units granted to existing directors 18 25 41 Compensation Costs We recognize the estimated compensation cost of restricted stock units, net of estimated forfeitures, on a straight-line basis over the requisite service period of the entire award, which is generally the vesting period. The estimated compensation cost is based on the fair value of our common stock on the date of grant. We recognize the estimated compensation cost of performance shares, net of estimated forfeitures, on a straight-line basis over the requisite service period of the entire award. The fiscal 2017 , 2016 and 2015 awards are earned upon achievement of an objective total stockholder return measure at the end of the three-year performance period, as described above. We estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate forfeitures and record stock-based compensation expense only for those awards that are expected to vest. As of December 1, 2017 , there was $708.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards which will be recognized over a weighted average period of 1.8 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. Total stock-based compensation costs that have been included in our Consolidated Statements of Income for fiscal 2017 , 2016 and 2015 were as follows (in thousands): Income Statement Classifications Cost of Revenue– Subscription Cost of Revenue– Services and Support Research and Development Sales and Marketing General and Administrative Total (1) Option Grants and Stock Purchase Rights 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 2016 $ 1,474 $ 5,514 $ 13,932 $ 16,534 $ 4,371 $ 41,825 2015 $ 1,449 $ 5,185 $ 14,082 $ 18,360 $ 4,790 $ 43,866 Restricted Stock Units and Performance Share Awards 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 2016 $ 6,632 $ 7,522 $ 109,249 $ 113,757 $ 70,312 $ 307,472 2015 $ 6,481 $ 6,446 $ 104,624 $ 109,908 $ 66,709 $ 294,168 _________________________________________ (1) During fiscal 2017 , 2016 and 2015 , we recorded tax benefits of $153.2 million , $71.7 million and $68.8 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 01, 2017 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) and activity, net of related taxes, for fiscal 2017 were as follows (in thousands): December 2, Increase / Decrease Reclassification Adjustments December 1, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 3,499 $ 878 $ (1,673 ) $ 2,704 Unrealized losses on available-for-sale securities (11,565 ) (3,381 ) 726 (14,220 ) Total net unrealized gains / losses on available-for-sale securities (8,066 ) (2,503 ) (947 ) (1 ) (11,516 ) Net unrealized gains / losses on derivative instruments designated as hedging instruments 21,689 6,917 (31,973 ) (2 ) (3,367 ) Cumulative foreign currency translation adjustments (187,225 ) 90,287 — (96,938 ) Total accumulated other comprehensive income (loss), net of taxes $ (173,602 ) $ 94,701 $ (32,920 ) $ (111,821 ) _________________________________________ (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2017 , 2016 and 2015 (in thousands): 2017 2016 2015 Available-for-sale securities: Unrealized gains / losses $ 663 $ (299 ) $ (154 ) Reclassification adjustments (491 ) 108 — Subtotal available-for-sale securities 172 (191 ) (154 ) Derivatives designated as hedging instruments: Unrealized gains on derivative instruments * — — 6,147 Reclassification adjustments * (732 ) (552 ) (550 ) Subtotal derivatives designated as hedging instruments (732 ) (552 ) 5,597 Foreign currency translation adjustments 3,005 24 (3,378 ) Total taxes, other comprehensive income (loss) $ 2,445 $ (719 ) $ 2,065 _________________________________________ (*) Taxes related to derivative instruments other than the interest rate lock agreement were zero based on the tax jurisdiction where these derivative instruments were executed. Stock Repurchase Program To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from stock issuances, we may repurchase shares in the open market or enter into structured repurchase agreements with third parties. In January 2017, our Board of Directors approved a new stock repurchase program granting us authority to repurchase up to $2.5 billion in common stock through the end of fiscal 2019. The new stock repurchase program approved by our Board of Directors is similar to our previous stock repurchase programs. During fiscal 2017 , 2016 and 2015 , we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $1.10 billion , $1.08 billion , and $625 million , respectively. We enter 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 our estimate of the expected 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 fiscal 2017 , we repurchased approximately 8.2 million shares at an average price per share of $134.20 through structured repurchase agreements entered into during fiscal 2017 and fiscal 2016 . During fiscal 2016 , we repurchased approximately 10.4 million shares at an average price per share of $97.16 through structured repurchase agreements entered into during fiscal 2016 and fiscal 2015 . During fiscal 2015 , we repurchased approximately 8.1 million shares at an average price per share of $77.38 through structured repurchase agreements entered into during fiscal 2015 and fiscal 2014. For fiscal 2017 , 2016 and 2015 , the prepayments were classified as treasury stock on our Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by December 1, 2017 , December 2, 2016 and November 27, 2015 were excluded from the computation of earnings per share. As of December 1, 2017 , $101.5 million of prepayments remained under the agreement. Subsequent to December 1, 2017 , as part of the 2017 stock repurchase authority, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $300 million . This amount will be classified as treasury stock on our Consolidated Balance Sheets. Upon completion of the $300 million stock repurchase agreement, $1.6 billion remains under our current authority. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 01, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock units and performance awards. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested restricted stock units, performance share awards, and stock options using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for fiscal 2017 , 2016 and 2015 (in thousands, except per share data): 2017 2016 2015 Net income $ 1,693,954 $ 1,168,782 $ 629,551 Shares used to compute basic net income per share 493,632 498,345 498,764 Dilutive potential common shares: Unvested restricted stock units and performance share awards 7,161 5,455 7,389 Stock options 330 499 1,011 Shares used to compute diluted net income per share 501,123 504,299 507,164 Basic net income per share $ 3.43 $ 2.35 $ 1.26 Diluted net income per share $ 3.38 $ 2.32 $ 1.24 For fiscal 2017 , 2016 , and 2015 there were no options to purchase shares of common stock with exercise prices greater than the average fair market value of our stock of $138.71 , $96.39 , and $79.22 , respectively, that would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments We lease certain of our facilities and some of our equipment under non-cancellable operating lease arrangements that expire at various dates through 2031 . We also have one land lease that expires in 2091 . Rent expense includes base contractual rent and variable costs such as building expenses, utilities, taxes, insurance and equipment rental. Rent expense for these leases was approximately $115.4 million in fiscal 2017 and $92.9 million in both fiscal 2016 and 2015 . Our sublease income was immaterial for all periods presented. We occupy three office buildings in San Jose, California where our corporate headquarters are located. We reference these office buildings as the Almaden, East and West Towers. In March 2017, we exercised our option to purchase the Almaden Tower for a total purchase price of $103.6 million . Upon purchase, our investment in the lease receivable of $80.4 million was credited against the total purchase price. We capitalized the Almaden Tower as property and equipment on our Consolidated Balance Sheets at $104.2 million , the lesser of cost or fair value, which represented the total purchase price plus other direct costs associated with the purchase. As of December 1, 2017 , we own the buildings and the underlying land that make up our corporate headquarters in San Jose, California, including the Almaden Tower. Unconditional Purchase Obligations Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. The following table summarizes our non-cancellable unconditional purchase obligations and operating leases for each of the next five years and thereafter as of December 1, 2017 (in thousands): Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2018 $ 449,823 $ 60,464 $ 3,001 2019 245,087 62,307 2,903 2020 410 63,341 2,286 2021 — 53,670 2,036 2022 — 44,016 — Thereafter — 251,544 — Total $ 695,320 $ 535,342 $ 10,226 Other Subsequent to December 1, 2017 , we purchased land near our headquarters in San Jose, California for a total purchase price of $68.0 million . Royalties We have royalty commitments associated with the licensing of certain offerings and products. Royalty expense is generally based on a dollar amount per unit or a percentage of the underlying revenue. Royalty expense, which was recorded under our cost of revenue on our Consolidated Statements of Income, was approximately $100.9 million , $79.8 million and $62.3 million in fiscal 2017 , 2016 and 2015 , respectively. Indemnifications In the ordinary course of business, we provide indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of our products and from time to time, we are subject to claims by our customers under these indemnification provisions. Historically, costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations. To the extent permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid. We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings In connection with disputes relating to the validity or alleged infringement of third-party intellectual property rights, including patent rights, we have been, are currently and may in the future be subject to claims, negotiations or complex, protracted litigation. Intellectual property disputes and litigation may be very costly and can be disruptive to our business operations by diverting the attention and energies of management and key technical personnel. Although we have successfully defended or resolved past litigation and disputes, we may not prevail in any ongoing or future litigation and disputes. Third-party intellectual property disputes could subject us to significant liabilities, require us to enter into royalty and licensing arrangements on unfavorable terms, prevent us from licensing certain of our products or offering certain of our services, subject us to injunctions restricting our sale of products or services, cause severe disruptions to our operations or the markets in which we compete, or require us to satisfy indemnification commitments with our customers including contractual provisions under various license arrangements and service agreements. In addition to intellectual property disputes, we are subject to legal proceedings, claims and investigations in the ordinary course of business, including claims relating to commercial, employment and other matters. Some of these disputes and legal proceedings may include speculative claims for substantial or indeterminate amounts of damages. We consider all claims on a quarterly basis in accordance with GAAP and based on known facts assess whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, we then evaluate disclosure requirements and whether to accrue for such claims in our financial statements. This determination is then reviewed and discussed with our Audit Committee and our independent registered public accounting firm. We make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Unless otherwise specifically disclosed in this note, we have determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. All legal costs associated with litigation are expensed as incurred. Litigation is inherently unpredictable. However, we believe that we have valid defenses with respect to the legal matters pending against us. It is possible, nevertheless, that our consolidated financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution of one or more of such proceedings, claims or investigations. In connection with our anti-piracy efforts, conducted both internally and through organizations such as the Business Software Alliance, from time to time we undertake litigation against alleged copyright infringers. Such lawsuits may lead to counter-claims alleging improper use of litigation or violation of other laws. We believe we have valid defenses with respect to such counter-claims; however, it is possible that our consolidated financial position, cash flows or results of operations could be negatively affected in any particular period by the resolution of one or more of these counter-claims. |
Debt
Debt | 12 Months Ended |
Dec. 01, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our long-term debt as of December 1, 2017 and December 2, 2016 consisted of the following (in thousands): 2017 2016 Notes $ 1,882,479 $ 1,879,083 Fair value of interest rate swap (1,058 ) 13,117 Adjusted carrying value of Notes 1,881,421 1,892,200 Senior Notes In February 2010, we issued $900 million of 4.75% senior notes due February 1, 2020 (the “2020 Notes”). Our proceeds were $900 million and were net of an issuance discount of $5.5 million . In addition, we incurred issuance costs of $6.4 million . Both the discount and issuance costs are being amortized to interest expense over the term of the 2020 Notes using the effective interest method. The 2020 Notes rank equally with our other unsecured and unsubordinated indebtedness. The effective interest rate including the discount and issuance costs was 4.92% . Interest is payable semi-annually, in arrears, on February 1 and August 1, and commenced on August 1, 2010 . In June 2014, we entered into interest rate swaps with a total notional amount of $900 million designated as a fair value hedge related to our 2020 Notes. The interest rate swaps effectively convert the fixed interest rate on our 2020 Notes to a floating interest rate based on LIBOR. Under the terms of the swap, we will pay monthly interest at the one-month LIBOR interest rate plus a fixed number of basis points on the $900 million notional amount. In exchange, we will receive 4.75% fixed rate interest from the swap counterparties. See Note 5 for further details regarding our interest rate swap derivatives. In January 2015, we issued $1 billion of 3.25% senior notes due February 1, 2025 (the “2025 Notes”). Our proceeds were approximately $989.3 million which is net of an issuance discount of $10.7 million . In addition, we incurred issuance costs of $7.9 million . Both the discount and issuance costs are being amortized to interest expense over the term of the 2025 Notes using the effective interest method. The 2025 Notes rank equally with our other unsecured and unsubordinated indebtedness. The effective interest rate including the discount, issuance costs and interest rate agreement is 3.67% . Interest is payable semi-annually, in arrears on February 1 and August 1, and commenced on August 1, 2015 . A portion of the proceeds from this offering was used to repay $600 million in aggregate principal amount of previously outstanding senior notes plus accrued and unpaid interest due February 1, 2015 . The remaining proceeds were used for general corporate purposes. As of December 1, 2017 , our outstanding notes payable consist of the 2020 Notes and 2025 Notes (the “Notes”) with a total carrying value of $1.88 billion , which includes the fair value of the interest rate swaps and is net of debt issuance costs. Based on quoted prices in inactive markets, the fair value of the Notes was $1.98 billion as of December 1, 2017 , which excludes the effect of the fair value of the interest rate swaps described above. We may redeem the Notes at any time, subject to a make-whole premium. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The Notes also include covenants that limit our ability to grant liens on assets and to enter into sale and leaseback transactions, subject to significant allowances. As of December 1, 2017 , we were in compliance with all of the covenants. In February and August 2017, we made semi-annual interest payments on our 2020 and 2025 Notes each totaling $37.6 million . Credit Agreement On March 2, 2012, we entered into a five-year $1 billion senior unsecured revolving credit agreement (the “Credit Agreement”), providing for loans to us and certain of our subsidiaries. Pursuant to the terms of the Credit Agreement, we may, subject to the agreement of the applicable lenders, request up to an additional $500 million in commitments, for a maximum aggregate commitment of $1.5 billion . Loans under the Credit Agreement will bear interest at either (i) LIBOR plus a margin, based on our public debt ratings, ranging from 0.795% and 1.3% or (ii) the base rate, which is defined as the highest of (a) the agent’s prime rate, (b) the federal funds effective rate plus 0.50% or (c) LIBOR plus 1.00% plus a margin, based on our debt ratings, ranging from 0.00% to 0.30% . Commitment fees are payable quarterly at rates between 0.08% and 0.20% per year, also based on our debt ratings. Subject to certain conditions stated in the Credit Agreement, we and any of our subsidiaries designated as additional borrowers may borrow, prepay and re-borrow amounts under the revolving credit facility at any time during the term of the Credit Agreement. The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the lenders. The negative covenants include restrictions regarding the incurrence of liens and indebtedness, certain merger and acquisition transactions, dispositions and other matters, all subject to certain exceptions. The financial covenant, based on a quarterly financial test, requires us not to exceed a maximum leverage ratio. On March 1, 2013, we exercised an option under the Credit Agreement to extend the maturity date of the Credit Agreement to March 2, 2018. On July 27, 2015, we entered into an amendment to further extend the maturity date to July 27, 2020 and reallocated the facility among the syndicate of lenders that are parties to the Credit Agreement. The facility will terminate and all amounts owing thereunder will be due and payable on the maturity date unless (a) the commitments are terminated earlier upon the occurrence of certain events, including an event of default, or (b) the maturity date is further extended upon our request, subject to the agreement of the lenders. As of December 1, 2017 , there were no outstanding borrowings under this Credit Agreement and we were in compliance with all covenants. |
Non-Operating Income (Expense)
Non-Operating Income (Expense) | 12 Months Ended |
Dec. 01, 2017 | |
Other Income and Expenses [Abstract] | |
NON-OPERATING INCOME (EXPENSE) | NON-OPERATING INCOME (EXPENSE) Non-operating income (expense) for fiscal 2017 , 2016 and 2015 included the following (in thousands): 2017 2016 2015 Interest and other income (expense), net: Interest income $ 66,069 $ 47,340 $ 28,759 Foreign exchange gains (losses) (30,705 ) (35,716 ) (20,130 ) Realized gains on fixed income investment 1,673 2,880 3,309 Realized losses on fixed income investment (725 ) (985 ) (354 ) Other 83 29 22,325 Interest and other income (expense), net $ 36,395 $ 13,548 $ 33,909 Interest expense $ (74,402 ) $ (70,442 ) $ (64,184 ) Investment gains (losses), net: Realized investment gains $ 3,279 $ 4,964 $ 2,760 Unrealized investment gains 4,274 186 — Realized investment losses — (6,720 ) (206 ) Unrealized investment losses — — (1,593 ) Investment gains (losses), net $ 7,553 $ (1,570 ) $ 961 Non-operating income (expense), net $ (30,454 ) $ (58,464 ) $ (29,314 ) |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 12 Months Ended |
Dec. 01, 2017 | |
Segment Reporting [Abstract] | |
INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS | INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS 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 CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses 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. For fiscal 2017, we have the following reportable segments: • Digital Media— Our Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional content creators, web application developers and digital media professionals, as well as their management in marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate and distribute documents. • Digital Marketing— Our Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers, chief information officers and chief revenue officers. • Print and Publishing— Our Print and Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and OEM printing businesses. Our segment results for fiscal 2017 , 2016 and 2015 were as follows (dollars in thousands): Digital Media Digital Marketing Print and Publishing Total Fiscal 2017 Revenue $ 5,010,579 $ 2,120,032 $ 170,894 $ 7,301,505 Cost of revenue 239,994 763,468 7,029 1,010,491 Gross profit $ 4,770,585 $ 1,356,564 $ 163,865 $ 6,291,014 Gross profit as a percentage of revenue 95 % 64 % 96 % 86 % Fiscal 2016 Revenue $ 3,941,011 $ 1,736,585 $ 176,834 $ 5,854,430 Cost of revenue 231,074 581,093 7,741 819,908 Gross profit $ 3,709,937 $ 1,155,492 $ 169,093 $ 5,034,522 Gross profit as a percentage of revenue 94 % 67 % 96 % 86 % Fiscal 2015 Revenue $ 3,095,160 $ 1,508,858 $ 191,493 $ 4,795,511 Cost of revenue 210,587 525,309 8,421 744,317 Gross profit $ 2,884,573 $ 983,549 $ 183,072 $ 4,051,194 Gross profit as a percentage of revenue 93 % 65 % 96 % 84 % Effective in the first quarter of fiscal 2018, we plan to move our legacy enterprise offerings — Adobe Connect web conferencing platform and Adobe LiveCycle, an enterprise document and forms platform, from our Digital Marketing segment into Print and Publishing, in order to more closely align our Digital Marketing business with the strategic growth opportunity. We will adjust our reportable segments at the beginning of fiscal 2018 to reflect these changes as we enter into the new fiscal year. The tables below list our revenue and property and equipment, net, by geographic area for fiscal 2017 , 2016 and 2015 (in thousands). With the exception of property and equipment, we do not identify or allocate our assets (including long-lived assets) by geographic area. Revenue 2017 2016 2015 Americas: United States $ 3,830,845 $ 3,087,764 $ 2,548,024 Other 385,686 312,371 240,020 Total Americas 4,216,531 3,400,135 2,788,044 EMEA 1,985,105 1,619,153 1,336,448 APAC: Japan 524,254 401,205 347,740 Other 575,615 433,937 323,279 Total APAC 1,099,869 835,142 671,019 Revenue $ 7,301,505 $ 5,854,430 $ 4,795,511 Property and Equipment 2017 2016 2015 Americas: United States $ 753,393 $ 642,823 $ 621,122 Other 2,797 559 427 Total Americas 756,190 643,382 621,549 EMEA 54,181 48,662 43,943 APAC: India 109,051 106,322 111,662 Other 17,554 17,898 10,267 Total APAC 126,605 124,220 121,929 Property and equipment, net $ 936,976 $ 816,264 $ 787,421 Significant Customers For fiscal 2017 , 2016 and 2015 there were no customers that represented at least 10% of net revenue. As of fiscal year end 2017 and 2016 , no single customer was responsible for over 10% of our trade receivables. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA (unaudited) 2017 (in thousands, except per share data) Quarter Ended March 3 June 2 September 1 December 1 Revenue $ 1,681,646 $ 1,772,190 $ 1,841,074 $ 2,006,595 Gross profit $ 1,444,309 $ 1,532,830 $ 1,578,152 $ 1,735,723 Income before income taxes $ 460,632 $ 492,618 $ 541,379 $ 643,012 Net income $ 398,446 $ 374,390 $ 419,569 $ 501,549 Basic net income per share $ 0.81 $ 0.76 $ 0.85 $ 1.02 Diluted net income per share $ 0.80 $ 0.75 $ 0.84 $ 1.00 2016 (in thousands, except per share data) Quarter Ended March 4 June 3 September 2 December 2 Revenue $ 1,383,335 $ 1,398,709 $ 1,463,967 $ 1,608,419 Gross profit $ 1,184,763 $ 1,196,630 $ 1,261,266 $ 1,391,863 Income before income taxes $ 292,307 $ 329,830 $ 356,301 $ 456,700 Net income $ 254,307 $ 244,074 $ 270,788 $ 399,613 Basic net income per share $ 0.51 $ 0.49 $ 0.54 $ 0.81 Diluted net income per share $ 0.50 $ 0.48 $ 0.54 $ 0.80 Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Each of the fiscal quarters presented were comprised of 13 weeks with the exception of the first quarter of fiscal 2016 which was comprised of 14 weeks. |
Basis of Presentation and Sig26
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenue is derived from the subscription, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of our enterprise customer arrangements are complex, involving multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer. We recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, we have delivered the product or performed the service, the fee is fixed or determinable and collection is probable. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of software, upgrades, maintenance and support, hosted services, and consulting. For our software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our software maintenance and support services, custom software development services, consulting services and training, when such services are sold optionally with software licenses. For multiple-element arrangements containing our non-software services, we must: (1) determine whether and when each element has been delivered; (2) determine the fair value of each element using the selling price hierarchy of VSOE of selling price, third-party evidence (“TPE”) of selling price or best-estimated selling price (“BESP”), as applicable; and (3) allocate the total price among the various elements based on the relative selling price method. For multiple-element arrangements that contain both software and non-software elements, we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy. We determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use BESP. Once revenue is allocated to software or software-related elements as a group, we recognize revenue in conformance with software revenue accounting guidance. Revenue is recognized when revenue recognition criteria are met for each element. We are generally unable to establish VSOE or TPE for non-software elements and as such, we use BESP. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. We determine BESP for a product or service by considering multiple factors including, but not limited to major product groupings, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. We must estimate certain royalty revenue amounts due to the timing of securing information from our customers. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Accordingly, our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events, thus materially impacting our financial position and results of operations. Subscription and Services and Support Revenue We recognize revenue for hosted services that are priced based on a committed number of transactions, ratably beginning on the date the services associated with the committed transactions are first made available to the customer and continuing through the end of the contractual service term. Over-usage fees, and fees billed based on the actual number of transactions from which we capture data, are billed in accordance with contract terms as these fees are incurred. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue, depending on whether all revenue recognition criteria have been met. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to the licensing of our enterprise, mobile and device products and solutions. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. Our consulting revenue is recognized using a time and materials basis and is measured monthly based on input measures, such as hours incurred to date, with consideration given to output measures, such as contract milestones when applicable. Our maintenance and support offerings, which entitle customers to receive product upgrades and enhancements on a when and if available basis or technical support, depending on the offering, are recognized ratably over the performance period of the arrangement. Our software subscription offerings, which may include product upgrades and enhancements on a when and if available basis, hosted services, and online storage, are generally offered to our customers over a specified period of time and we recognize revenue associated with these arrangements ratably over the subscription period. Product Revenue We recognize our product revenue upon shipment, provided all other revenue recognition criteria have been met. Our desktop application product revenue from distributors is subject to agreements allowing limited rights of return, rebates and price protection. Our direct sales and OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized for estimated future returns, price protection and rebates at the time the related revenue is recorded. The estimates for returns are adjusted periodically based upon historical rates of returns, inventory levels in the distribution channel and other related factors. We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating our software, provided collection of such revenue is deemed probable. For certain OEM customers, we must estimate royalty revenue due to the timing of securing customer information. This estimate is based on a combination of our generated forecasts and actual historical reporting by our OEM customers. To substantiate our ability to estimate revenue, we review license royalty revenue reports ultimately received from our significant OEM customers in comparison to the amounts estimated in the prior period. Our product-related deferred revenue includes maintenance upgrade revenue and customer advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application products is included in our product revenue line item as the maintenance primarily entitles customers to receive product upgrades. In cases where we provide a specified free upgrade to an existing product, we defer the fair value for the specified upgrade right until the future obligation is fulfilled or when the right to the specified free upgrade expires. Rights of Return, Rebates and Price Protection As discussed above, we offer limited rights of return, rebates and price protection of our products under various policies and programs with our distributors, resellers and/or end-user customers. We estimate and record reserves for these programs as an offset to revenue and accounts receivable. Below is a summary of each of the general provisions in our contracts: • Distributors are allowed limited rights of return of products purchased during the previous quarter. In addition, distributors are allowed to return products that have reached the end of their lives, as defined by us, and products that are being replaced by new versions. • We offer rebates to our distributors, resellers and/or end user customers. The amount of revenue that is reduced for distributor and reseller rebates is based on actual performance against objectives set forth by us for a particular reporting period (volume, timely reporting, etc.). If mail-in or other promotional rebates are offered, the amount of revenue reduced is based on the dollar amount of the rebate, taking into consideration an estimated redemption rate calculated using historical trends. • From time to time, we may offer price protection to our distributors that allow for the right to a credit if we permanently reduce the price of a software product. The amount of revenue that is reduced for price protection is calculated as the difference between the old and new price of a software product on inventory held by the distributor immediately prior to the effective date of the decrease. Although our subscription contracts are generally non-cancellable, a limited number of customers have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. In the event a customer cancels its contract, they are not entitled to a refund for prior services we have provided to them. On a quarterly basis, the amount of revenue that is reserved for future returns is calculated based on our historical trends and data specific to each reporting period. We review the actual returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate. We then apply the historical rate to the current period revenue as a basis for estimating future returns. When necessary, we also provide a specific returns reserve for product in the distribution channel in excess of estimated requirements. This estimate can be affected by the amount of a particular product in the channel, the rate of sell-through, product plans and other factors. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition for our products and solutions described above. We recognize deferred revenue as revenue only when the revenue recognition criteria are met. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts which reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on both specific and general reserves. We regularly review our trade receivables allowances by considering such factors as historical experience, credit-worthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to pay and we specifically reserve for those deemed uncollectible. |
Property and Equipment | Property and Equipment We record property and equipment at cost less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over their estimated useful lives ranging from 1 to 5 years for computers and equipment as well as server hardware under capital leases, 1 to 6 years for furniture and fixtures, 5 to 20 years for building improvements and up to 40 years for buildings. Leasehold improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or estimated useful lives ranging from 1 to 15 years. |
Goodwill, Purchased Intangibles and Other Long-Lived Assets | Goodwill, Purchased Intangibles and Other Long-Lived Assets Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our second quarter of each fiscal year. In performing our goodwill impairment test, we first evaluate goodwill to determine if it is more likely than not that the occurrence of an event or change in circumstances has reduced the fair value of a reporting segment below its carrying value. The qualitative assessment requires that we consider events or circumstances that may include macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segments’ net assets, and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of our reporting segments are greater than the carrying amounts, then the two-step goodwill impairment test is not performed. If the qualitative assessment indicates that the two-step quantitative analysis should be performed, we evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We completed our annual goodwill impairment test in the second quarter of fiscal 2017. We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment, and the two-step quantitative goodwill impairment test was not performed. We amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists. We continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets, including our intangible assets may not be recoverable. When such events or changes in circumstances occur, we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets. We did not recognize any intangible asset impairment charges in fiscal 2017 , 2016 or 2015 . During fiscal 2017 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years. Amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent. The weighted average useful lives of our intangible assets were as follows: Weighted Average Useful Life (years ) Purchased technology 5 Customer contracts and relationships 9 Trademarks 8 Acquired rights to use technology 9 Localization 1 Other intangibles 5 |
Internal Use Software | Internal Use Software We capitalize costs associated with customized internal-use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees who are directly associated with the development of the applications. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. |
Taxes Collected from Customers | Taxes Collected from Customers We net taxes collected from customers against those remitted to government authorities in our financial statements. Accordingly, taxes collected from customers are not reported as revenue. |
Treasury Stock | Treasury Stock We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Consolidated Balance Sheets. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses for fiscal 2017 , 2016 and 2015 were $141.7 million , $135.8 million and $113.6 million , respectively. |
Foreign Currency Translation | Foreign Currency Translation We translate assets and liabilities of foreign subsidiaries, whose functional currency is their local currency, at exchange rates in effect at the balance sheet date. We translate revenue and expenses at the monthly average exchange rates. We include accumulated net translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income (loss). |
Derivatives and Hedging Instruments | Foreign Currency and Other Hedging Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We use foreign exchange option and forward contracts for revenue denominated in Euros, British Pounds and Japanese Yen. We hedge our net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Contracts that do not qualify for hedge accounting are adjusted to fair value through earnings. See Note 5 for information regarding our hedging activities. Gains and losses from foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income, net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue are designated as cash flow hedges with gains and losses recorded net of tax, as a component of other comprehensive income in stockholders’ equity and reclassified into revenue at the time the forecasted transactions occur. Hedge Accounting and Hedging Programs We recognize derivative instruments and hedging activities as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. We evaluate hedge effectiveness at the inception of the hedge prospectively as well as retrospectively, and record any ineffective portion of the hedging instruments in interest and other income (expense), net on our Consolidated Statements of Income. The net gain (loss) recognized in interest and other income (expense), net for cash flow hedges due to hedge ineffectiveness was insignificant for all fiscal years presented. The time value of purchased contracts is recorded in interest and other income (expense), net in our Consolidated Statements of Income. The bank counterparties to these contracts expose us to credit-related losses in the event of their nonperformance which are largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit-related losses with the same counterparty by permitting net settlement of transactions. Balance Sheet Hedging — Hedges of Foreign Currency Assets and Liabilities We also hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded to interest and other income (expense), net in our Consolidated Statements of Income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of December 1, 2017 , total notional amounts of outstanding contracts were $333.9 million which included the notional equivalent of $105.0 million in Euros, $34.6 million in British Pounds, $45.4 million in Japanese Yen, $78.0 million in Indian Rupees, and $70.9 million in other foreign currencies. As of December 2, 2016 , total notional amounts of outstanding contracts were $313.8 million which included the notional equivalent of $152.8 million in Euros, $33.6 million in British Pounds, $46.5 million in Japanese Yen, $26.4 million in Indian Rupees, and $54.5 million in other foreign currencies. At December 1, 2017 and December 2, 2016 , the outstanding balance sheet hedging derivatives had maturities of 180 days or less. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months . We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to interest and other income (expense), net in our Consolidated Statements of Income at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in interest and other income (expense), net in our Consolidated Statements of Income. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk are short-term fixed-income investments, structured repurchase transactions, foreign currency and interest rate hedge contracts and trade receivables. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and investments are held and primarily managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer and we believe no significant concentration of credit risk exists with respect to these investments. We enter into foreign currency hedge contracts with bank counterparties that could expose us to credit related losses in the event of their nonperformance. This is largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit related losses with the same counterparty by permitting net settlement transactions. The aggregate fair value of foreign currency contracts in net asset positions as of December 1, 2017 and December 2, 2016 was $14.2 million and $38.1 million respectively. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. These exposures could be reduced by certain immaterial liabilities included in master netting arrangements with those same counterparties. Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and software products to the retail market, customers to whom we license software directly and our SaaS offerings. A credit review is completed for our new distributors, dealers and OEMs. We also perform ongoing credit evaluations of our customers’ financial condition and require letters of credit or other guarantees, whenever deemed necessary. The credit limit given to the customer is based on our risk assessment of their ability to pay, country risk and other factors and is not contingent on the resale of the product or on the collection of payments from their customers. If we license our software or provide SaaS services to a customer where we have a reason to believe the customer’s ability to pay is not probable, due to country risk or credit risk, we will not recognize the revenue. We will revert to recognizing the revenue on a cash basis, assuming all other criteria for revenue recognition has been met. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Guidance On March 30, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies various aspects related to the accounting and presentation of share-based payments. The amendments require entities to record all tax effects related to share-based payments at settlement or expiration through the income statement and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. Tax-related cash flows resulting from share-based payments are required to be reported as operating activities in the statement of cash flows. The updates relating to the income tax effects of the share-based payments including the cash flow presentation must be adopted either prospectively or retrospectively. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. If an election is made, the change to recognize forfeitures as they occur must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to opening retained earnings. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. We early adopted this standard during the first quarter of fiscal 2017. As required by the standard, excess tax benefits recognized on stock-based compensation expense were reflected in our Consolidated Statements of Income as a component of the provision for income taxes rather than paid-in capital on a prospective basis. Accordingly, we recorded excess tax benefits within our provision for income taxes, rather than additional paid-in capital upon adoption. The cumulative effect to retained earnings from previously unrecognized excess tax benefits, after offset by the related valuation allowance, was not significant to our Consolidated Balance Sheets. We also elected to prospectively apply the change in presentation of excess tax benefits wherein excess tax benefits recognized on stock-based compensation expense were classified as operating activities in our Consolidated Statements of Cash Flows for fiscal 2017. Prior period classification of cash flows related to excess tax benefits were not adjusted in our Consolidated Statements of Cash Flows. Presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact to all periods presented as such cash flows have historically been presented as financing activities. Further, we did not elect an accounting policy change to record forfeitures as they occur and thus we continue to estimate forfeitures at each period. There have been no other new accounting pronouncements made effective during fiscal 2017 that have significance, or potential significance, to our Consolidated Financial Statements. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the full retrospective or modified retrospective transition method. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for us in the first quarter of fiscal 2019. We expect to adopt this updated standard in the first quarter of fiscal 2019 on a modified retrospective basis. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. While we are continuing to assess all potential impacts of the new standard, we currently believe that the most significant impact relates to our accounting for arrangements that include on-premise term-based software licenses bundled with maintenance and support. Under current GAAP, the revenue attributable to these software licenses is recognized ratably over the term of the arrangement because VSOE does not exist for the undelivered maintenance and support element as it is not sold separately. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fee upon delivery of the software licenses. We expect revenue related to our professional services and cloud offerings, including Creative Cloud and Document Cloud for business enterprises, individuals and teams, to remain substantially unchanged. When sold with cloud-enabled services, Creative Cloud and Document Cloud require a significant level of integration and interdependency with software and the individual components are not considered distinct. Revenue for these offerings will continue to be recognized over the period in which the cloud services are provided. Under current GAAP, we expense costs related to the acquisition of revenue-generating contracts as incurred. Under the new standard, we will be required to capitalize certain costs incremental to contract acquisition and amortize them over the expected period of benefit. Due to the complexity of certain of our contracts, the actual accounting treatment required under the new standard for these arrangements may be dependent on contract-specific terms and therefore may vary in some instances. On February 24, 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases with a lease term of twelve months or less. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for us beginning in the first quarter of fiscal 2020 and we do not plan to early adopt. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. On August 28, 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging, requiring expanded hedge accounting for both non-financial and financial risk components and refining the measurement of hedge results to better reflect an entity's hedging strategies. The updated standard also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The updated standard is effective for us beginning in the first quarter of fiscal 2020 and we do not plan to early adopt. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to our Consolidated Financial Statements. |
Cash and Cash Equivalents | 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.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are recognized when realized in our Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue reserve rollforward | Revenue Reserve Revenue reserve rollforward (in thousands): 2017 2016 2015 Beginning balance $ 23,096 $ 19,446 $ 17,402 Amount charged to revenue 61,031 55,739 45,676 Actual returns (62,121 ) (52,089 ) (43,632 ) Ending balance $ 22,006 $ 23,096 $ 19,446 |
Allowance for doubtful accounts | (in thousands) 2017 2016 2015 Beginning balance $ 6,214 $ 7,293 $ 7,867 Increase due to acquisition 2,391 77 326 Charged to operating expenses 4,411 1,337 1,472 Deductions (1) (3,865 ) (2,493 ) (2,372 ) Ending balance $ 9,151 $ 6,214 $ 7,293 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Finited-lived intangible assets schedule of weighted average useful lives | Weighted Average Useful Life (years ) Purchased technology 5 Customer contracts and relationships 9 Trademarks 8 Acquired rights to use technology 9 Localization 1 Other intangibles 5 |
Cash, Cash Equivalents and Sh28
Cash, Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments consisted of the following as of December 1, 2017 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 280,488 $ — $ — $ 280,488 Cash equivalents: Money market mutual funds 2,006,741 — — 2,006,741 Time deposits 18,843 — — 18,843 Total cash equivalents 2,025,584 — — 2,025,584 Total cash and cash equivalents 2,306,072 — — 2,306,072 Short-term fixed income securities: Asset-backed securities 98,403 1 (403 ) 98,001 Corporate bonds and commercial paper 2,461,691 2,694 (10,125 ) 2,454,260 Foreign government securities 2,396 — (8 ) 2,388 Municipal securities 21,189 8 (132 ) 21,065 U.S. Treasury securities 941,538 2 (3,552 ) 937,988 Total short-term investments 3,525,217 2,705 (14,220 ) 3,513,702 Total cash, cash equivalents and short-term investments $ 5,831,289 $ 2,705 $ (14,220 ) $ 5,819,774 Cash, cash equivalents and short-term investments consisted of the following as of December 2, 2016 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 208,635 $ — $ — $ 208,635 Cash equivalents: Corporate bonds and commercial paper 1,249 — — 1,249 Money market mutual funds 782,210 — — 782,210 Municipal securities 1,301 — — 1,301 Time deposits 17,920 — — 17,920 Total cash equivalents 802,680 — — 802,680 Total cash and cash equivalents 1,011,315 — — 1,011,315 Short-term fixed income securities: Asset backed securities 111,009 95 (190 ) 110,914 Corporate bonds and commercial paper 2,464,769 3,135 (9,554 ) 2,458,350 Municipal securities 134,710 37 (525 ) 134,222 U.S. agency securities 39,538 42 — 39,580 U.S. Treasury securities 1,008,195 194 (1,470 ) 1,006,919 Total short-term investments 3,758,221 3,503 (11,739 ) 3,749,985 Total cash, cash equivalents and short-term investments $ 4,769,536 $ 3,503 $ (11,739 ) $ 4,761,300 |
Continuous Unrealized Loss Position Less Than Twelve Months Related to Available-for-Sale Securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and commercial paper $ 1,338,232 $ (5,459 ) $ 1,282,076 $ (9,474 ) Asset-backed securities 64,618 (193 ) 54,063 (189 ) Municipal securities 11,805 (115 ) 114,810 (525 ) Foreign government securities 2,388 (8 ) — — U.S. Treasury and agency securities 593,296 (2,087 ) 580,529 (1,470 ) Total $ 2,010,339 $ (7,862 ) $ 2,031,478 $ (11,658 ) |
Continuous Unrealized Loss Position Twelve Months or Longer Related to Available-for-Sale-Securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and commercial paper $ 500,689 $ (4,666 ) $ 39,162 $ (80 ) Asset-backed security 32,383 (210 ) 1,331 (1 ) Municipal securities 598 (17 ) — — U.S. Treasury securities 338,950 (1,465 ) — — Total $ 872,620 $ (6,358 ) $ 40,493 $ (81 ) |
Cost and Estimated Fair Value of Debt Securities | The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of December 1, 2017 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 1,025,894 $ 1,023,639 Due between one and two years 1,294,919 1,289,307 Due between two and three years 815,254 812,828 Due after three years 389,150 387,928 Total $ 3,525,217 $ 3,513,702 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities at fair value on a recurring basis | The fair value of our financial assets and liabilities at December 1, 2017 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 2,006,741 $ 2,006,741 $ — $ — Time deposits 18,843 18,843 — — Short-term investments: Asset-backed securities 98,001 — 98,001 — Corporate bonds and commercial paper 2,454,260 — 2,454,260 — Foreign government securities 2,388 — 2,388 — Municipal securities 21,065 — 21,065 — U.S. Treasury securities 937,988 — 937,988 — Prepaid expenses and other current assets: Foreign currency derivatives 14,198 — 14,198 — Other assets: Deferred compensation plan assets 56,690 2,573 54,117 — Total assets $ 5,610,174 $ 2,028,157 $ 3,582,017 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 1,598 $ — $ 1,598 $ — Other liabilities: Interest rate swap derivatives 1,058 — 1,058 — Total liabilities $ 2,656 $ — $ 2,656 $ — The fair value of our financial assets and liabilities at December 2, 2016 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Corporate bonds and commercial paper $ 1,249 $ — $ 1,249 $ — Money market mutual funds 782,210 782,210 — — Municipal securities 1,301 — 1,301 — Time deposits 17,920 17,920 — — Short-term investments: Asset-backed securities 110,914 — 110,914 — Corporate bonds and commercial paper 2,458,350 — 2,458,350 — Municipal securities 134,222 — 134,222 — U.S. agency securities 39,580 — 39,580 — U.S. Treasury securities 1,006,919 — 1,006,919 — Prepaid expenses and other current assets: Foreign currency derivatives 38,112 — 38,112 — Other assets: Deferred compensation plan assets 42,180 1,831 40,349 — Interest rate swap derivatives 13,117 — 13,117 — Total assets $ 4,646,074 $ 801,961 $ 3,844,113 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 5,246 $ — $ 5,246 $ — Total liabilities $ 5,246 $ — $ 5,246 $ — |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on our Consolidated Balance Sheets as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange option contracts (1)(2) $ 12,918 $ — $ 34,355 $ — Interest rate swap (3) — 1,058 13,117 — Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 1,280 1,598 3,757 5,246 Total derivatives $ 14,198 $ 2,656 $ 51,229 $ 5,246 _________________________________________ (1) Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next twelve months. (3) Included in other liabilities and other assets in fiscal 2017 and 2016, respectively, on our Consolidated Balance Sheets. |
Effect of Derivative Instruments as Designated Cash Flow Hedges and Not Designated as Hedges | The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Derivatives in cash flow hedging relationships: Net gain (loss) recognized in other comprehensive income, net of tax (1) $ 6,917 $ — $ 36,511 $ — $ 39,825 $ — Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax (2) $ 32,852 $ — $ 18,823 $ — $ 56,336 $ — Net gain (loss) recognized in income (3) $ (30,243 ) $ — $ (29,169 ) $ — $ (17,423 ) $ — Derivatives not designated as hedging relationships: Net gain (loss) recognized in income (4) $ — $ 6,586 $ — $ (1,308 ) $ — $ 4,430 _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. (4) Classified in interest and other income (expense), net. |
Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Balance Sheet Hedging | Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ (6,142 ) $ 832 $ (10,952 ) Net unrealized gain (loss) recognized in other income (907 ) (6,070 ) 3,815 (7,049 ) (5,238 ) (7,137 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain recognized in other income 5,415 174 5,490 Net unrealized gain (loss) recognized in other income 1,171 (1,482 ) (1,060 ) 6,586 (1,308 ) 4,430 Net gain (loss) recognized in interest and other income (expense), net $ (463 ) $ (6,546 ) $ (2,707 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of the following as of December 1, 2017 and December 2, 2016 (in thousands): 2017 2016 Computers and equipment $ 1,128,264 $ 1,051,937 Furniture and fixtures 115,273 94,243 Capital projects in-progress 5,575 7,648 Leasehold improvements 120,165 110,414 Land 77,723 77,340 Buildings 490,665 382,364 Building improvements 265,829 202,266 Total 2,203,494 1,926,212 Less accumulated depreciation and amortization (1,266,518 ) (1,109,948 ) Property and equipment, net $ 936,976 $ 816,264 |
Goodwill and Purchased and Ot32
Goodwill and Purchased and Other Intangibles (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by reportable segment | Goodwill by reportable segment and activity for the years ended December 1, 2017 and December 2, 2016 was as follows (in thousands): 2015 Acquisitions Other (1) 2016 Acquisitions Other (1) 2017 Digital Media $ 2,796,302 $ — $ 288 $ 2,796,590 $ — $ 4,501 $ 2,801,091 Digital Marketing 2,312,158 35,802 3,502 2,351,462 348,352 62,232 2,762,046 Print and Publishing 258,421 — 1 258,422 — 2 258,424 Goodwill $ 5,366,881 $ 35,802 $ 3,791 $ 5,406,474 $ 348,352 $ 66,735 $ 5,821,561 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. |
Purchased and other intangible assets by reportable segment | Purchased and other intangible assets by reportable segment as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Digital Media $ 128,243 $ 203,570 Digital Marketing 257,408 210,823 Print and Publishing 7 12 Purchased and other intangible assets, net $ 385,658 $ 414,405 |
Purchased and other intangible assets subject to amortization | Purchased and other intangible assets subject to amortization as of December 1, 2017 and December 2, 2016 were as follows (in thousands): 2017 2016 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Purchased technology $ 223,252 $ (110,433 ) $ 112,819 $ 149,253 $ (82,091 ) $ 67,162 Customer contracts and relationships $ 577,484 $ (356,613 ) $ 220,871 $ 541,366 $ (274,380 ) $ 266,986 Trademarks 76,255 (56,094 ) 20,161 76,355 (46,846 ) 29,509 Acquired rights to use technology 71,130 (54,223 ) 16,907 87,403 (60,929 ) 26,474 Localization 603 (170 ) 433 631 (177 ) 454 Other intangibles 38,693 (24,226 ) 14,467 38,693 (14,873 ) 23,820 Total other intangible assets $ 764,165 $ (491,326 ) $ 272,839 $ 744,448 $ (397,205 ) $ 347,243 Purchased and other intangible $ 987,417 $ (601,759 ) $ 385,658 $ 893,701 $ (479,296 ) $ 414,405 |
Amortization expense in future periods | As of December 1, 2017 , we expect amortization expense in future periods to be as follows (in thousands): Fiscal Year Purchased Technology Other Intangible Assets 2018 $ 37,984 $ 97,726 2019 34,404 69,733 2020 32,111 39,658 2021 7,203 17,304 2022 1,117 14,297 Thereafter — 34,121 Total expected amortization expense $ 112,819 $ 272,839 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses as of December 1, 2017 and December 2, 2016 consisted of the following (in thousands): 2017 2016 Accrued compensation and benefits $ 417,742 $ 339,487 Accrued media costs 134,525 5,144 Sales and marketing allowances 47,389 55,681 Accrued corporate marketing 72,087 55,218 Taxes payable 49,550 43,113 Royalties payable 46,411 25,089 Accrued interest expense 25,594 25,805 Other 200,475 190,093 Accrued expenses $ 993,773 $ 739,630 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes, domestic and foreign | Income before income taxes for fiscal 2017 , 2016 and 2015 consisted of the following (in thousands): 2017 2016 2015 Domestic $ 1,056,156 $ 805,749 $ 589,371 Foreign 1,081,485 629,389 284,410 Income before income taxes $ 2,137,641 $ 1,435,138 $ 873,781 |
Provision for income taxes, current | The provision for income taxes for fiscal 2017 , 2016 and 2015 consisted of the following (in thousands): 2017 2016 2015 Current: United States federal $ 298,802 $ 94,396 $ 204,834 Foreign 60,962 59,749 52,125 State and local 33,578 15,222 (14,975 ) Total current 393,342 169,367 241,984 Deferred: United States federal 48,905 33,924 (31,011 ) Foreign (4,242 ) (2,751 ) (9,368 ) State and local 5,682 (9,287 ) (25,511 ) Total deferred 50,345 21,886 (65,890 ) Tax expense attributable to employee stock plans — 75,103 68,136 Provision for income taxes $ 443,687 $ 266,356 $ 244,230 |
Income tax expense differs from the expected tax expense | Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 35% by income before income taxes) as a result of the following (in thousands): 2017 2016 2015 Computed “expected” tax expense $ 748,174 $ 502,298 $ 305,824 State tax expense, net of federal benefit 25,131 10,636 (8,316 ) Tax credits (38,000 ) (48,383 ) (25,967 ) Differences between statutory rate and foreign effective tax rate (215,490 ) (133,778 ) (90,063 ) Stock-based compensation, net of tax deduction (42,512 ) 15,101 9,623 Resolution of income tax examinations (31,358 ) (68,003 ) (17,595 ) Domestic manufacturing deduction benefit (32,200 ) (26,990 ) (16,800 ) Tax charge for licensing acquired company technology to foreign subsidiaries 24,771 5,346 80,015 Other, net 5,171 10,129 7,509 Provision for income taxes $ 443,687 $ 266,356 $ 244,230 |
Deferred tax assets and liabilities | The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of December 1, 2017 and December 2, 2016 are presented below (in thousands): 2017 2016 Deferred tax assets: Acquired technology $ 4,846 $ 7,421 Reserves and accruals 48,761 35,440 Deferred revenue 23,452 21,039 Unrealized losses on investments 11 2,391 Stock-based compensation 74,942 56,353 Net operating loss carryforwards of acquired companies 44,465 31,305 Credit carryforwards 124,205 63,315 Capitalized expenses 13,428 15,571 Benefits relating to tax positions 33,318 39,492 Other 30,289 26,439 Total gross deferred tax assets 397,717 298,766 Deferred tax asset valuation allowance (93,568 ) (24,265 ) Total deferred tax assets 304,149 274,501 Deferred tax liabilities: Depreciation and amortization 84,064 78,619 Undistributed earnings of foreign subsidiaries 382,744 292,844 Acquired intangible assets 117,282 120,698 Total deferred tax liabilities 584,090 492,161 Net deferred tax liabilities: $ 279,941 $ 217,660 |
Gross amount of unrecognized tax benefits | During fiscal 2017 and 2016 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 2017 2016 Beginning balance $ 178,413 $ 258,718 Gross increases in unrecognized tax benefits – prior year tax positions 3,680 6,047 Gross decreases in unrecognized tax benefits – prior year tax positions (30,166 ) (67,870 ) Gross increases in unrecognized tax benefits – current year tax positions 24,927 23,068 Settlements with taxing authorities (3,876 ) (33,265 ) Lapse of statute of limitations (8,819 ) (8,456 ) Foreign exchange gains and losses 8,786 171 Ending balance $ 172,945 $ 178,413 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used to Value Employee Stock Purchase Rights | The expected term of ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights were as follows: 2017 2016 2015 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 22% - 27% 26% - 29% 26% - 30% Risk free interest rate 0.62% - 1.41% 0.37% - 1.06% 0.11% - 0.67% |
Restricted Stock Unit Activity | Restricted stock unit activity for fiscal 2017 , 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Beginning outstanding balance 8,316 10,069 13,564 Awarded 5,018 4,440 4,012 Released (3,859 ) (5,471 ) (6,561 ) Forfeited (766 ) (722 ) (946 ) Increase due to acquisition 595 — — Ending outstanding balance 9,304 8,316 10,069 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at December 1, 2017 , December 2, 2016 and November 27, 2015 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units vested and expected to vest 8,608 1.05 $ 1,545.3 2016 Restricted stock units outstanding 8,316 1.11 $ 829.4 Restricted stock units vested and expected to vest 7,613 1.04 $ 759.3 2015 Restricted stock units outstanding 10,069 0.93 $ 928.0 Restricted stock units vested and expected to vest 9,267 0.86 $ 842.9 _________________________________________ (*) 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 December 1, 2017 , December 2, 2016 and November 27, 2015 were $179.52 , $99.73 and $92.17 , respectively. |
Performance Share Activity | Performance share activity for fiscal 2017 , 2016 and 2015 was as follows (in thousands): 2017 2016 2015 Shares Granted Maximum Shares Eligible to Receive Shares Granted Maximum Shares Eligible to Receive Shares Maximum Beginning outstanding balance 1,630 3,261 1,940 3,881 1,517 3,034 Awarded 1,082 (1) 1,040 1,206 (2) 1,053 671 1,342 Achieved (1,135 ) (3) (1,147 ) (1,373 ) (3) (1,387 ) — — Forfeited (43 ) (86 ) (143 ) (286 ) (248 ) (495 ) Ending outstanding balance 1,534 3,068 1,630 3,261 1,940 3,881 _________________________________________ (1) Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. (2) Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. (3) Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs. |
Restricted Stock Units Granted to Directors | Restricted stock units granted to directors for fiscal 2017 , 2016 and 2015 were as follows (in thousands): 2017 2016 2015 Restricted stock units granted to existing directors 18 25 41 |
Total Stock-Based Compensation Costs | Total stock-based compensation costs that have been included in our Consolidated Statements of Income for fiscal 2017 , 2016 and 2015 were as follows (in thousands): Income Statement Classifications Cost of Revenue– Subscription Cost of Revenue– Services and Support Research and Development Sales and Marketing General and Administrative Total (1) Option Grants and Stock Purchase Rights 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 2016 $ 1,474 $ 5,514 $ 13,932 $ 16,534 $ 4,371 $ 41,825 2015 $ 1,449 $ 5,185 $ 14,082 $ 18,360 $ 4,790 $ 43,866 Restricted Stock Units and Performance Share Awards 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 2016 $ 6,632 $ 7,522 $ 109,249 $ 113,757 $ 70,312 $ 307,472 2015 $ 6,481 $ 6,446 $ 104,624 $ 109,908 $ 66,709 $ 294,168 _________________________________________ (1) During fiscal 2017 , 2016 and 2015 , we recorded tax benefits of $153.2 million , $71.7 million and $68.8 million , respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | : December 2, Increase / Decrease Reclassification Adjustments December 1, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 3,499 $ 878 $ (1,673 ) $ 2,704 Unrealized losses on available-for-sale securities (11,565 ) (3,381 ) 726 (14,220 ) Total net unrealized gains / losses on available-for-sale securities (8,066 ) (2,503 ) (947 ) (1 ) (11,516 ) Net unrealized gains / losses on derivative instruments designated as hedging instruments 21,689 6,917 (31,973 ) (2 ) (3,367 ) Cumulative foreign currency translation adjustments (187,225 ) 90,287 — (96,938 ) Total accumulated other comprehensive income (loss), net of taxes $ (173,602 ) $ 94,701 $ (32,920 ) $ (111,821 ) _________________________________________ (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Other Comprehensive Income, Tax [Table Text Block] | The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2017 , 2016 and 2015 (in thousands): 2017 2016 2015 Available-for-sale securities: Unrealized gains / losses $ 663 $ (299 ) $ (154 ) Reclassification adjustments (491 ) 108 — Subtotal available-for-sale securities 172 (191 ) (154 ) Derivatives designated as hedging instruments: Unrealized gains on derivative instruments * — — 6,147 Reclassification adjustments * (732 ) (552 ) (550 ) Subtotal derivatives designated as hedging instruments (732 ) (552 ) 5,597 Foreign currency translation adjustments 3,005 24 (3,378 ) Total taxes, other comprehensive income (loss) $ 2,445 $ (719 ) $ 2,065 _________________________________________ (*) Taxes related to derivative instruments other than the interest rate lock agreement were zero based on the tax jurisdiction where these derivative instruments were executed. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for fiscal 2017 , 2016 and 2015 (in thousands, except per share data): 2017 2016 2015 Net income $ 1,693,954 $ 1,168,782 $ 629,551 Shares used to compute basic net income per share 493,632 498,345 498,764 Dilutive potential common shares: Unvested restricted stock units and performance share awards 7,161 5,455 7,389 Stock options 330 499 1,011 Shares used to compute diluted net income per share 501,123 504,299 507,164 Basic net income per share $ 3.43 $ 2.35 $ 1.26 Diluted net income per share $ 3.38 $ 2.32 $ 1.24 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of non-cancellable unconditional purchase obligations, operating leases and capital leases | The following table summarizes our non-cancellable unconditional purchase obligations and operating leases for each of the next five years and thereafter as of December 1, 2017 (in thousands): Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2018 $ 449,823 $ 60,464 $ 3,001 2019 245,087 62,307 2,903 2020 410 63,341 2,286 2021 — 53,670 2,036 2022 — 44,016 — Thereafter — 251,544 — Total $ 695,320 $ 535,342 $ 10,226 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Our long-term debt as of December 1, 2017 and December 2, 2016 consisted of the following (in thousands): 2017 2016 Notes $ 1,882,479 $ 1,879,083 Fair value of interest rate swap (1,058 ) 13,117 Adjusted carrying value of Notes 1,881,421 1,892,200 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Other Income and Expenses [Abstract] | |
Non-Operating Income (Expense) | Non-operating income (expense) for fiscal 2017 , 2016 and 2015 included the following (in thousands): 2017 2016 2015 Interest and other income (expense), net: Interest income $ 66,069 $ 47,340 $ 28,759 Foreign exchange gains (losses) (30,705 ) (35,716 ) (20,130 ) Realized gains on fixed income investment 1,673 2,880 3,309 Realized losses on fixed income investment (725 ) (985 ) (354 ) Other 83 29 22,325 Interest and other income (expense), net $ 36,395 $ 13,548 $ 33,909 Interest expense $ (74,402 ) $ (70,442 ) $ (64,184 ) Investment gains (losses), net: Realized investment gains $ 3,279 $ 4,964 $ 2,760 Unrealized investment gains 4,274 186 — Realized investment losses — (6,720 ) (206 ) Unrealized investment losses — — (1,593 ) Investment gains (losses), net $ 7,553 $ (1,570 ) $ 961 Non-operating income (expense), net $ (30,454 ) $ (58,464 ) $ (29,314 ) |
Industry Segment, Geographic 41
Industry Segment, Geographic Information and Significant Customers (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Our segment results for fiscal 2017 , 2016 and 2015 were as follows (dollars in thousands): Digital Media Digital Marketing Print and Publishing Total Fiscal 2017 Revenue $ 5,010,579 $ 2,120,032 $ 170,894 $ 7,301,505 Cost of revenue 239,994 763,468 7,029 1,010,491 Gross profit $ 4,770,585 $ 1,356,564 $ 163,865 $ 6,291,014 Gross profit as a percentage of revenue 95 % 64 % 96 % 86 % Fiscal 2016 Revenue $ 3,941,011 $ 1,736,585 $ 176,834 $ 5,854,430 Cost of revenue 231,074 581,093 7,741 819,908 Gross profit $ 3,709,937 $ 1,155,492 $ 169,093 $ 5,034,522 Gross profit as a percentage of revenue 94 % 67 % 96 % 86 % Fiscal 2015 Revenue $ 3,095,160 $ 1,508,858 $ 191,493 $ 4,795,511 Cost of revenue 210,587 525,309 8,421 744,317 Gross profit $ 2,884,573 $ 983,549 $ 183,072 $ 4,051,194 Gross profit as a percentage of revenue 93 % 65 % 96 % 84 % |
Revenue and Property and Equipment by Geographic Area | The tables below list our revenue and property and equipment, net, by geographic area for fiscal 2017 , 2016 and 2015 (in thousands). With the exception of property and equipment, we do not identify or allocate our assets (including long-lived assets) by geographic area. Revenue 2017 2016 2015 Americas: United States $ 3,830,845 $ 3,087,764 $ 2,548,024 Other 385,686 312,371 240,020 Total Americas 4,216,531 3,400,135 2,788,044 EMEA 1,985,105 1,619,153 1,336,448 APAC: Japan 524,254 401,205 347,740 Other 575,615 433,937 323,279 Total APAC 1,099,869 835,142 671,019 Revenue $ 7,301,505 $ 5,854,430 $ 4,795,511 Property and Equipment 2017 2016 2015 Americas: United States $ 753,393 $ 642,823 $ 621,122 Other 2,797 559 427 Total Americas 756,190 643,382 621,549 EMEA 54,181 48,662 43,943 APAC: India 109,051 106,322 111,662 Other 17,554 17,898 10,267 Total APAC 126,605 124,220 121,929 Property and equipment, net $ 936,976 $ 816,264 $ 787,421 |
Selected Quarterly Financial 42
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 2017 (in thousands, except per share data) Quarter Ended March 3 June 2 September 1 December 1 Revenue $ 1,681,646 $ 1,772,190 $ 1,841,074 $ 2,006,595 Gross profit $ 1,444,309 $ 1,532,830 $ 1,578,152 $ 1,735,723 Income before income taxes $ 460,632 $ 492,618 $ 541,379 $ 643,012 Net income $ 398,446 $ 374,390 $ 419,569 $ 501,549 Basic net income per share $ 0.81 $ 0.76 $ 0.85 $ 1.02 Diluted net income per share $ 0.80 $ 0.75 $ 0.84 $ 1.00 2016 (in thousands, except per share data) Quarter Ended March 4 June 3 September 2 December 2 Revenue $ 1,383,335 $ 1,398,709 $ 1,463,967 $ 1,608,419 Gross profit $ 1,184,763 $ 1,196,630 $ 1,261,266 $ 1,391,863 Income before income taxes $ 292,307 $ 329,830 $ 356,301 $ 456,700 Net income $ 254,307 $ 244,074 $ 270,788 $ 399,613 Basic net income per share $ 0.51 $ 0.49 $ 0.54 $ 0.81 Diluted net income per share $ 0.50 $ 0.48 $ 0.54 $ 0.80 |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||
Other Details [Abstract] | ||||
Aggregate fair value of derivative instruments, Liabilities | $ 2,656 | $ 5,246 | ||
Aggregate fair value of derivative instruments, Assets | 14,198 | 51,229 | ||
Advertising expenses | $ 141,700 | $ 135,800 | $ 113,600 | |
Number of weeks in current fiscal year | P52W | P53W | P52W | |
Foreign Exchange [Member] | ||||
Other Details [Abstract] | ||||
Aggregate fair value of derivative instruments, Assets | [1] | $ 14,200 | $ 38,100 | |
Revenue Reserve [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | 23,096 | 19,446 | $ 17,402 | |
Amount charged to revenue | 61,031 | 55,739 | 45,676 | |
Actual returns | (62,121) | (52,089) | (43,632) | |
Ending balance | 22,006 | 23,096 | 19,446 | |
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | 6,214 | 7,293 | 7,867 | |
Increase due to acquisition | 2,391 | 77 | 326 | |
Charged to operating expenses | 4,411 | 1,337 | 1,472 | |
Actual returns | [2] | (3,865) | (2,493) | (2,372) |
Ending balance | $ 9,151 | $ 6,214 | $ 7,293 | |
[1] | Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. | |||
[2] | Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 01, 2017 | |
Computers and equipment [Member] | Minimum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computers and equipment [Member] | Maximum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Buildings [Member] | Maximum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Building Improvements [Member] | Minimum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building Improvements [Member] | Maximum [Member] | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 01, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Goodwill impairment | $ 0 |
Purchased technology [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Customer contracts and relationships [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Trademarks [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
Acquired rights to use technology [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Localization [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
Other intangibles [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Minimum [Member] | |
Purchased and other intangible assets | |
Intangible assets estimated useful lives - range (in years) | 1 year |
Maximum [Member] | |
Purchased and other intangible assets | |
Intangible assets estimated useful lives - range (in years) | 14 years |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 03, 2017 | Dec. 01, 2017 | Dec. 02, 2016 | Dec. 19, 2016 | Jan. 27, 2015 | |
Business Acquisition [Line Items] | |||||
Purchase price allocation, goodwill | $ 348,352 | $ 35,802 | |||
TubeMogul [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocation, purchase price | $ 560,800 | ||||
Purchase price allocation, goodwill | $ 348,400 | ||||
Purchase price allocation, identifiable intangible assets | 113,100 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 99,300 | ||||
Fotolia [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price allocation, purchase price | $ 807,500 | ||||
Purchase price allocation, goodwill | $ 745,100 | ||||
Purchase price allocation, identifiable intangible assets | 204,400 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ (142,000) |
Cash, Cash Equivalents and Sh47
Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 5,831,289 | $ 4,769,536 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (2,705) | (3,503) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (14,220) | (11,739) |
Estimated Fair Value, Total cash, cash equivalents and short-term investments | 5,819,774 | 4,761,300 |
Cash and cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,306,072 | 1,011,315 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,306,072 | 1,011,315 |
Cash [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 280,488 | 208,635 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 280,488 | 208,635 |
Cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,025,584 | 802,680 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,025,584 | 802,680 |
Cash equivalents [Member] | Corporate Bonds And Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,249 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Cash and Cash Equivalents, Fair Value Disclosure | 1,249 | |
Cash equivalents [Member] | Money market mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,006,741 | 782,210 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,006,741 | 782,210 |
Cash equivalents [Member] | Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,301 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Cash and Cash Equivalents, Fair Value Disclosure | 1,301 | |
Cash equivalents [Member] | Time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,843 | 17,920 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 18,843 | 17,920 |
Short-term investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,525,217 | 3,758,221 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (2,705) | (3,503) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (14,220) | (11,739) |
Available For Sale Securities Fair Value Disclosure | 3,513,702 | 3,749,985 |
Short-term fixed income securities [Member] | Corporate Bonds And Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,461,691 | 2,464,769 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (2,694) | (3,135) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (10,125) | (9,554) |
Available For Sale Securities Fair Value Disclosure | 2,454,260 | 2,458,350 |
Short-term fixed income securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 98,403 | 111,009 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (1) | (95) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (403) | (190) |
Available For Sale Securities Fair Value Disclosure | 98,001 | 110,914 |
Short-term fixed income securities [Member] | Foreign government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,396 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (8) | |
Available For Sale Securities Fair Value Disclosure | 2,388 | |
Short-term fixed income securities [Member] | Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,189 | 134,710 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (8) | (37) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (132) | (525) |
Available For Sale Securities Fair Value Disclosure | 21,065 | 134,222 |
Short-term fixed income securities [Member] | U.S. agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 39,538 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (42) | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Available For Sale Securities Fair Value Disclosure | 39,580 | |
Short-term fixed income securities [Member] | US Treasury Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 941,538 | 1,008,195 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | (2) | (194) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3,552) | (1,470) |
Available For Sale Securities Fair Value Disclosure | $ 937,988 | $ 1,006,919 |
Cash, Cash Equivalents and Sh48
Cash, Cash Equivalents and Short-Term Investments (Details 1) $ in Thousands | Dec. 01, 2017USD ($)securities | Dec. 02, 2016USD ($)securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 5,831,289 | $ 4,769,536 |
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale securities in a continuous unrealized loss position for more than twelve months, fair value | 872,620 | 40,493 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (6,358) | (81) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,010,339 | 2,031,478 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (7,862) | $ (11,658) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Number of securities in a continuous unrealized loss position for less than twelve months | securities | 894 | 1,052 |
Number of securities in a continuous unrealized loss position for more than twelve months | securities | 360 | 23 |
Corporate Bonds And Commercial Paper [Member] | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale securities in a continuous unrealized loss position for more than twelve months, fair value | $ 500,689 | $ 39,162 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4,666) | (80) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,338,232 | 1,282,076 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5,459) | (9,474) |
Asset-backed Securities [Member] | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale securities in a continuous unrealized loss position for more than twelve months, fair value | 32,383 | 1,331 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (210) | (1) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 64,618 | 54,063 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (193) | (189) |
Foreign government securities | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,388 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (8) | 0 |
Municipal securities | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale securities in a continuous unrealized loss position for more than twelve months, fair value | 598 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (17) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 11,805 | 114,810 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (115) | (525) |
US Treasury Bond Securities [Member] | ||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | ||
Available-for-sale securities in a continuous unrealized loss position for more than twelve months, fair value | 338,950 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,465) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 593,296 | 580,529 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,087) | (1,470) |
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,025,584 | 802,680 |
Available-for-sale Securities, Amortized Cost Basis | 2,025,584 | 802,680 |
Cash Equivalents [Member] | Corporate Bonds And Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,249 | |
Available-for-sale Securities, Amortized Cost Basis | 1,249 | |
Cash Equivalents [Member] | Time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 18,843 | 17,920 |
Available-for-sale Securities, Amortized Cost Basis | $ 18,843 | 17,920 |
Cash Equivalents [Member] | Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,301 | |
Available-for-sale Securities, Amortized Cost Basis | $ 1,301 |
Cash, Cash Equivalents and Sh49
Cash, Cash Equivalents and Short-Term Investments (Details 2) $ in Thousands | Dec. 01, 2017USD ($) |
Amortized cost and Estimated Fair Value of Short-term fixed Income Securities [Abstract] | |
Due within one year, Amortized Cost | $ 1,025,894 |
Due between one and two years, Amortized Cost | 1,294,919 |
Due between two and three years, Amortized Cost | 815,254 |
Due after three years, Amortized Cost | 389,150 |
Total, Amortized Cost | 3,525,217 |
Due within one year, Estimated Fair value | 1,023,639 |
Due between one and two years, Estimated Fair value | 1,289,307 |
Due between two and three years, Estimated Fair value | 812,828 |
Due after three years, Estimated Fair value | 387,928 |
Total, Estimated Fair value | $ 3,513,702 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Dec. 01, 2017USD ($) |
Notes 2020 and 2025 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Instrument, Fair Value Disclosure | $ 1,980 |
Fair Value Measurements (Deta51
Fair Value Measurements (Details 1) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 14,198 | $ 38,112 |
Deferred Compensation Plan Assets | 56,690 | 42,180 |
Interest Rate Derivative Assets, at Fair Value | 13,117 | |
Assets, Fair Value Disclosure | 5,610,174 | 4,646,074 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1,598 | 5,246 |
Interest Rate Derivative Liabilities, at Fair Value | 1,058 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 2,656 | 5,246 |
Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 98,001 | 110,914 |
Corporate Bonds And Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,249 | |
Available-for-sale Securities | 2,454,260 | 2,458,350 |
Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 2,388 | |
Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,301 | |
Available-for-sale Securities | 21,065 | 134,222 |
Money market mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,006,741 | 782,210 |
Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 18,843 | 17,920 |
U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 39,580 | |
US Treasury Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 937,988 | 1,006,919 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets | 2,573 | 1,831 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Assets, Fair Value Disclosure | 2,028,157 | 801,961 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Corporate Bonds And Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | |
Fair Value, Inputs, Level 1 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Money market mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,006,741 | 782,210 |
Fair Value, Inputs, Level 1 | Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 18,843 | 17,920 |
Fair Value, Inputs, Level 1 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | |
Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 14,198 | 38,112 |
Deferred Compensation Plan Assets | 54,117 | 40,349 |
Interest Rate Derivative Assets, at Fair Value | 13,117 | |
Assets, Fair Value Disclosure | 3,582,017 | 3,844,113 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1,598 | 5,246 |
Interest Rate Derivative Liabilities, at Fair Value | 1,058 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 2,656 | 5,246 |
Fair Value, Inputs, Level 2 | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 98,001 | 110,914 |
Fair Value, Inputs, Level 2 | Corporate Bonds And Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,249 | |
Available-for-sale Securities | 2,454,260 | 2,458,350 |
Fair Value, Inputs, Level 2 | Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 2,388 | |
Fair Value, Inputs, Level 2 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,301 | |
Available-for-sale Securities | 21,065 | 134,222 |
Fair Value, Inputs, Level 2 | Money market mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 39,580 | |
Fair Value, Inputs, Level 2 | US Treasury Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 937,988 | 1,006,919 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | |
Assets, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, at Fair Value | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Corporate Bonds And Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | |
Fair Value, Inputs, Level 3 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Money market mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | Time deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | 0 | |
Fair Value, Inputs, Level 3 | US Treasury Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities | $ 0 | $ 0 |
Derivatives and Hedging Activ52
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | ||
Derivatives, Fair Value [Line Items] | |||
Fair value asset derivatives | $ 14,198 | $ 51,229 | |
Fair value liability derivatives | $ 2,656 | $ 5,246 | |
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Remaining Maturity | 180 days | 180 days | |
Foreign Exchange Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 333,900 | $ 313,800 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Option Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value asset derivatives | [1],[2] | 12,918 | 34,355 |
Fair value liability derivatives | [1],[2] | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value asset derivatives | [3] | 0 | 13,117 |
Fair value liability derivatives | [3] | 1,058 | 0 |
Derivatives not designated as hedging instruments [Member] | Foreign Exchange Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value asset derivatives | [2] | 1,280 | 3,757 |
Fair value liability derivatives | [2] | $ 1,598 | $ 5,246 |
[1] | Hedging effectiveness expected to be recognized to income within the next twelve months. | ||
[2] | Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. | ||
[3] | Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. |
Derivatives and Hedging Activ53
Derivatives and Hedging Activities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Option Contracts [Member] | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | $ 6,917 | $ 36,511 | $ 39,825 |
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2] | 32,852 | 18,823 | 56,336 |
Net gain (loss) recognized in income | [3] | (30,243) | (29,169) | (17,423) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | 0 | 0 | 0 |
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2] | 0 | 0 | 0 |
Net gain (loss) recognized in income | [3] | 0 | 0 | 0 |
Derivatives not designated as hedging instruments [Member] | Foreign Exchange Option Contracts [Member] | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in income | [4] | 0 | 0 | 0 |
Derivatives not designated as hedging instruments [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in income | [4] | $ 6,586 | $ (1,308) | $ 4,430 |
[1] | Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). | |||
[2] | Effective portion classified as revenue. | |||
[3] | Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. | |||
[4] | Classified in interest and other income (expense), net. |
Derivatives and Hedging Activ54
Derivatives and Hedging Activities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (30,705) | $ (35,716) | $ (20,130) |
Derivatives not designated as hedging instruments [Member] | |||
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), Realized | (6,142) | 832 | (10,952) |
Foreign Currency Transaction Gain (Loss), Unrealized | (907) | (6,070) | 3,815 |
Foreign Currency Transaction Gain (Loss), before Tax | (7,049) | (5,238) | (7,137) |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 5,415 | 174 | 5,490 |
Unrealized Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 1,171 | (1,482) | (1,060) |
Realized and Unrealized Gain (Loss) on Foreign Currency Derivative Instruments Not Designated As Hedging Instruments, Net | 6,586 | (1,308) | 4,430 |
Derivative, Gain (Loss) on Derivative, Net | $ (463) | $ (6,546) | $ (2,707) |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Jun. 13, 2014 | Feb. 28, 2010 | |
Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 333.9 | $ 313.8 | ||
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Remaining Maturity | 180 days | 180 days | ||
Euro Member Countries, Euro | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 105 | $ 152.8 | ||
United Kingdom, Pounds | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 34.6 | 33.6 | ||
Japan, Yen | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 45.4 | 46.5 | ||
India, Rupees | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 78 | 26.4 | ||
Other Foreign Currencies [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 70.9 | $ 54.5 | ||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Remaining Maturity | 12 months | |||
Fair Value Hedging [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 900 | |||
Derivative, fixed interest rate | 4.75% | |||
Notes 2020 [Member] | ||||
Derivative [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
Debt Instrument, Face Amount | $ 900 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 |
Property and Equipment [Line Items] | |||
Total | $ 2,203,494 | $ 1,926,212 | |
Less accumulated depreciation and amortization | (1,266,518) | (1,109,948) | |
Property and equipment, net | 936,976 | 816,264 | $ 787,421 |
Computers And Equipment [Member] | |||
Property and Equipment [Line Items] | |||
Total | 1,128,264 | 1,051,937 | |
Furniture and Fixtures [Member] | |||
Property and Equipment [Line Items] | |||
Total | 115,273 | 94,243 | |
Construction in Progress [Member] | |||
Property and Equipment [Line Items] | |||
Total | 5,575 | 7,648 | |
Leasehold Improvements [Member] | |||
Property and Equipment [Line Items] | |||
Total | 120,165 | 110,414 | |
Land [Member] | |||
Property and Equipment [Line Items] | |||
Total | 77,723 | 77,340 | |
Buildings [Member] | |||
Property and Equipment [Line Items] | |||
Total | 490,665 | 382,364 | |
Building Improvements [Member] | |||
Property and Equipment [Line Items] | |||
Total | $ 265,829 | $ 202,266 |
Property and Equipment (Detai57
Property and Equipment (Details Numeric) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 02, 2017 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Property and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 156.9 | $ 157.6 | $ 146.3 | |
Almaden Tower [Member] | ||||
Property and Equipment [Line Items] | ||||
Option to purchase building, purchase price | $ 103.6 | |||
Capitalized amount for building purchase | $ 104.2 |
Goodwill and Purchased and Ot58
Goodwill and Purchased and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | ||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | $ 5,406,474 | $ 5,366,881 | |
Acquisitions | 348,352 | 35,802 | |
Other | [1] | 66,735 | 3,791 |
Goodwill, Ending Balance | 5,821,561 | 5,406,474 | |
Digital Media [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 2,796,590 | 2,796,302 | |
Acquisitions | 0 | 0 | |
Other | [1] | 4,501 | 288 |
Goodwill, Ending Balance | 2,801,091 | 2,796,590 | |
Digital Marketing [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 2,351,462 | 2,312,158 | |
Acquisitions | 348,352 | 35,802 | |
Other | [1] | 62,232 | 3,502 |
Goodwill, Ending Balance | 2,762,046 | 2,351,462 | |
Print and Publishing [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 258,422 | 258,421 | |
Acquisitions | 0 | 0 | |
Other | [1] | 2 | 1 |
Goodwill, Ending Balance | $ 258,424 | $ 258,422 | |
[1] | Amounts primarily consist of foreign currency translation adjustments. |
Goodwill and Purchased and Ot59
Goodwill and Purchased and Other Intangibles (Details 1) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Purchased and other intangible assets, net | $ 385,658 | $ 414,405 |
Digital Media [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Purchased and other intangible assets, net | 128,243 | 203,570 |
Digital Marketing [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Purchased and other intangible assets, net | 257,408 | 210,823 |
Print and Publishing [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Purchased and other intangible assets, net | $ 7 | $ 12 |
Goodwill and Purchased and Ot60
Goodwill and Purchased and Other Intangibles (Details 2) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 987,417 | $ 893,701 |
Accumulated Amortization | (601,759) | (479,296) |
Net | 385,658 | 414,405 |
Purchased technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 223,252 | 149,253 |
Accumulated Amortization | (110,433) | (82,091) |
Net | 112,819 | 67,162 |
Customer contracts and relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 577,484 | 541,366 |
Accumulated Amortization | (356,613) | (274,380) |
Net | 220,871 | 266,986 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 76,255 | 76,355 |
Accumulated Amortization | (56,094) | (46,846) |
Net | 20,161 | 29,509 |
Acquired rights to use technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 71,130 | 87,403 |
Accumulated Amortization | (54,223) | (60,929) |
Net | 16,907 | 26,474 |
Localization [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 603 | 631 |
Accumulated Amortization | (170) | (177) |
Net | 433 | 454 |
Other intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 38,693 | 38,693 |
Accumulated Amortization | (24,226) | (14,873) |
Net | 14,467 | 23,820 |
Total other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 764,165 | 744,448 |
Accumulated Amortization | (491,326) | (397,205) |
Net | $ 272,839 | $ 347,243 |
Goodwill and Purchased and Ot61
Goodwill and Purchased and Other Intangibles (Details 3) $ in Thousands | Dec. 01, 2017USD ($) |
Purchased technology [Member] | |
Amortization Expense in Future Periods [Abstract] | |
2,018 | $ 37,984 |
2,019 | 34,404 |
2,020 | 32,111 |
2,021 | 7,203 |
2,022 | 1,117 |
Thereafter | 0 |
Total expected amortization expense | 112,819 |
Total other intangible assets [Member] | |
Amortization Expense in Future Periods [Abstract] | |
2,018 | 97,726 |
2,019 | 69,733 |
2,020 | 39,658 |
2,021 | 17,304 |
2,022 | 14,297 |
Thereafter | 34,121 |
Total expected amortization expense | $ 272,839 |
Goodwill and Purchased and Ot62
Goodwill and Purchased and Other Intangibles (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to purchased and other intangible assets | $ 153.6 | $ 152.4 | $ 174.5 |
Amortization expense included in cost of sales | $ 76.1 | $ 71.1 | $ 104.4 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 14 years |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Accrued Expense [Abstract] | ||
Employee-related Liabilities, Current | $ 417,742 | $ 339,487 |
Accrued Media Costs | 134,525 | 5,144 |
Sales and marketing allowances | 47,389 | 55,681 |
Accrued Marketing Costs, Current | 72,087 | 55,218 |
Sales and Excise Tax Payable, Current | 49,550 | 43,113 |
Accrued Royalties, Current | 46,411 | 25,089 |
Interest Payable, Current | 25,594 | 25,805 |
Other Accrued Liabilities, Current | 200,475 | 190,093 |
Accrued Liabilities, Current | $ 993,773 | $ 739,630 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Dec. 02, 2016 | Sep. 02, 2016 | Jun. 03, 2016 | Mar. 04, 2016 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S federal statutory rate | 35.00% | ||||||||||
Income before income taxes | $ 643,012 | $ 541,379 | $ 492,618 | $ 460,632 | $ 456,700 | $ 356,301 | $ 329,830 | $ 292,307 | $ 2,137,641 | $ 1,435,138 | $ 873,781 |
Income before income taxes [Abstract] | |||||||||||
Domestic | 1,056,156 | 805,749 | 589,371 | ||||||||
Foreign | 1,081,485 | 629,389 | 284,410 | ||||||||
Provision for income taxes - Current | |||||||||||
United States federal | 298,802 | 94,396 | 204,834 | ||||||||
Foreign | 60,962 | 59,749 | 52,125 | ||||||||
State and local | 33,578 | 15,222 | (14,975) | ||||||||
Total current | 393,342 | 169,367 | 241,984 | ||||||||
Provision for income taxes - Deferred | |||||||||||
United States federal | 48,905 | 33,924 | (31,011) | ||||||||
Foreign | (4,242) | (2,751) | (9,368) | ||||||||
State and local | 5,682 | (9,287) | (25,511) | ||||||||
Total deferred | 50,345 | 21,886 | (65,890) | ||||||||
Tax expense attributable to employee stock plans | 0 | 75,103 | 68,136 | ||||||||
Provision for income taxes | 443,687 | 266,356 | 244,230 | ||||||||
Reconciliation of provision for income taxes [Abstract] | |||||||||||
Computed "expected" tax expense | 748,174 | 502,298 | 305,824 | ||||||||
State tax expense, net of federal benefit | 25,131 | 10,636 | (8,316) | ||||||||
Tax credits | (38,000) | (48,383) | (25,967) | ||||||||
Differences between statutory rate and foreign effective tax rate | (215,490) | (133,778) | (90,063) | ||||||||
Stock-based compensation (net of tax deduction) | (42,512) | 15,101 | 9,623 | ||||||||
Resolution of income tax examinations | (31,358) | (68,003) | (17,595) | ||||||||
Domestic manufacturing deduction benefit | (32,200) | (26,990) | (16,800) | ||||||||
Tax charge for licensing acquired company technology to foreign subsidiaries | 24,771 | 5,346 | 80,015 | ||||||||
Other, net | 5,171 | 10,129 | 7,509 | ||||||||
Provision for income taxes | $ 443,687 | $ 266,356 | $ 244,230 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 01, 2017 | Dec. 02, 2016 | |
Deferred tax assets: | ||
Acquired technology | $ 4,846 | $ 7,421 |
Reserves and accruals | 48,761 | 35,440 |
Deferred revenue | 23,452 | 21,039 |
Unrealized losses on investments | 11 | 2,391 |
Stock-based compensation | 74,942 | 56,353 |
Net operating loss carryforwards of acquired companies | 44,465 | 31,305 |
Credit carryforwards | 124,205 | 63,315 |
Capitalized expenses | 13,428 | 15,571 |
Benefits relating to tax positions | 33,318 | 39,492 |
Other | 30,289 | 26,439 |
Total gross deferred tax assets | 397,717 | 298,766 |
Deferred tax assets valuation allowance | (93,568) | (24,265) |
Total deferred tax assets | 304,149 | 274,501 |
Deferred tax liabilities: | ||
Depreciation and amortization | 84,064 | 78,619 |
Undistributed earnings of foreign subsidiaries | 382,744 | 292,844 |
Acquired intangible assets | 117,282 | 120,698 |
Total deferred tax liabilities | 584,090 | 492,161 |
Net deferred tax liabilities | 279,941 | 217,660 |
Aggregate changes in total gross amount of unrecognized tax benefits [Abstract] | ||
Beginning balance | 178,413 | 258,718 |
Gross increases in unrecognized tax benefits - prior year tax positions | 3,680 | 6,047 |
Gross decreases in unrecognized tax benefits - prior year tax positions | (30,166) | (67,870) |
Gross increases in unrecognized tax benefits - current year tax positions | 24,927 | 23,068 |
Settlements with taxing authorities | (3,876) | (33,265) |
Lapse of statute of limitations | (8,819) | (8,456) |
Foreign exchange gains and losses | 8,786 | 171 |
Ending balance | $ 172,945 | $ 178,413 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 01, 2017 | Dec. 02, 2016 | |
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 5,000,000 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 1,400,000 | |
Valuation Allowance [Abstract] | ||
Change in Deferred Tax Asset Valuation Allowance | 69,300 | |
Change in Deferred Tax Asset Valuation Allowance Attributable to ASU 2016-09 | 55,300 | |
Deferred tax assets valuation allowance | 93,568 | $ 24,265 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 118,400 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 52,600 | |
Tax credit carry forward | 166,200 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forward | $ 16,200 | |
Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Jan. 1, 2018 | |
Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Jan. 1, 2036 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Dec. 01, 2017 | Dec. 02, 2016 |
Income Tax Examination [Line Items] | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 23.6 | $ 22.4 |
Minimum [Member] | ||
Income Tax Examination [Line Items] | ||
Estimated potential decreases in underlying unrecognized tax benefits, maximum | 0 | |
Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Estimated potential decreases in underlying unrecognized tax benefits, maximum | $ 40 |
Income Taxes Details Numeric (D
Income Taxes Details Numeric (Details) | 2 Months Ended | 12 Months Ended |
Jan. 19, 2018 | Dec. 01, 2017 | |
U.S federal statutory rate | 35.00% | |
Subsequent Event [Member] | ||
U.S federal statutory rate | 21.00% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Retirement Benefits [Abstract] | |||
Percentage of employer matching contribution to retirement savings plan | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||
Percentage of eligible employee contribution to retirement savings plan | 65.00% | ||
Employer's conribution to retirement savings plan | $ 34.3 | $ 33.4 | $ 25.7 |
Board of Directors and Certain Executives [Member] | |||
Deferred Compensation Plan for certain executives and Board of Director Members [Line Items] | |||
Percentage of contribution made by participants of base salary to deferred compensation plan | 75.00% | ||
Percentage of contribution made by participants of other specified compensation to deferred compensation plan | 100.00% | ||
Minimum period after end of plan year participants can elect to begin benefit payments | 3 years | ||
Payment period for annual installments election of benefit payments | over five, ten or fifteen years | ||
Deferred compensation plan assets | $ 56.7 | 42.2 | |
Deferred compensation plan liabilities | $ 67.2 | $ 49 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Valuation Assumptions Volatility | |||
From | 22.00% | 26.00% | 26.00% |
To | 27.00% | 29.00% | 30.00% |
Valuation Assumptions Risk Free Interest Rate Range | |||
From | 0.62% | 0.37% | 0.11% |
To | 1.41% | 1.06% | 0.67% |
Minimum [Member] | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 6 months | 6 months | 6 months |
Maximum [Member] | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 2 years | 2 years | 2 years |
Stock-Based Compensation (Det71
Stock-Based Compensation (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Price | $ 179.52 | $ 99.73 | $ 92.17 | |||
Restricted Stock Unit [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted Average Grant Date Fair Value, Restricted Stock Units (per share) | $ 120.33 | $ 89.87 | $ 75.47 | |||
Total Fair Value Vested Units or Shares | $ 472 | $ 499.8 | $ 495.1 | |||
Unit or Share Activity | ||||||
Beginning outstanding balance | 8,316 | 10,069 | 13,564 | |||
Awarded | 5,018 | 4,440 | 4,012 | |||
Released | (3,859) | (5,471) | (6,561) | |||
Forfeited | (766) | (722) | (946) | |||
Due To Acquisition | 595 | 0 | 0 | |||
Ending outstanding balance | 9,304 | 8,316 | 10,069 | |||
Units or Shares Outstanding | ||||||
Outstanding Weighted Average Remaining Contractual Life | 1 year 1 month 10 days | 1 year 1 month 10 days | 11 months 5 days | |||
Outstanding Intrinsic Value | [1] | $ 1,670.2 | $ 829.4 | $ 928 | ||
Vested And Expected To Vest Shares | 8,608 | 7,613 | 9,267 | |||
Vested And Expected To Vest Weighted Average Remaining Contractual Life | 1 year 18 days | 1 year 15 days | 10 months 10 days | |||
Vested And Expected To Vest Intrinsic Value | [1] | $ 1,545.3 | $ 759.3 | $ 842.9 | ||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum Target Percentage Allowed Under Program | 200.00% | |||||
Performance Shares [Member] | Program 2013 [Member] | ||||||
Unit or Share Activity | ||||||
Achieved | [2] | (700) | ||||
Performance Shares [Member] | Program 2014 [Member] | ||||||
Unit or Share Activity | ||||||
Achieved | [2] | (600) | ||||
Performance Shares [Member] | Maximum Shares Eligible to Receive [Member] | ||||||
Unit or Share Activity | ||||||
Beginning outstanding balance | 3,261 | 3,881 | 3,034 | |||
Awarded | 1,040 | 1,053 | 1,342 | |||
Achieved | (1,147) | (1,387) | 0 | |||
Forfeited | (86) | (286) | (495) | |||
Ending outstanding balance | 3,068 | 3,261 | 3,881 | |||
Performance Shares [Member] | Shares Granted [Member] | ||||||
Unit or Share Activity | ||||||
Beginning outstanding balance | 1,630 | 1,940 | 1,517 | |||
Awarded | 1,082 | [3] | 1,206 | [4] | 671 | |
Achieved | (1,135) | [2] | (1,373) | [2] | 0 | |
Forfeited | (43) | (143) | (248) | |||
Ending outstanding balance | 1,534 | 1,630 | 1,940 | |||
Performance Shares [Member] | Program 2013 [Member] | ||||||
Unit or Share Activity | ||||||
Actual Percentage Achieved | 198.00% | |||||
Performance Shares [Member] | Program 2014 [Member] | ||||||
Unit or Share Activity | ||||||
Actual Percentage Achieved | 198.00% | |||||
Performance Shares [Member] | Programs achieved [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total Fair Value Vested Units or Shares | $ 127.4 | $ 123.1 | $ 26.1 | |||
[1] | 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 December 1, 2017, December 2, 2016 and November 27, 2015 were $179.52, $99.73 and $92.17, respectively. | |||||
[2] | Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs. | |||||
[3] | Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. | |||||
[4] | Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. |
Stock-Based Compensation (Det72
Stock-Based Compensation (Details 2) - shares shares in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Restricted Stock Unit [Member] | Existing Non-Employee Directors [Member] | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Restricted Stock Units Granted to Existing Directors | 18 | 25 | 41 |
Stock-Based Compensation (Det73
Stock-Based Compensation (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||
Total stock-based compensation costs [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | $ 153,200 | $ 71,700 | $ 68,800 | |
Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 50,532 | 41,825 | 43,866 |
Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 403,940 | 307,472 | 294,168 |
Cost of Revenue - Subscription [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 180 | 1,474 | 1,449 | |
Cost of Revenue - Subscription [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 16,792 | 6,632 | 6,481 | |
Cost of Revenue - Services and Support [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 6,661 | 5,514 | 5,185 | |
Cost of Revenue - Services and Support [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 9,602 | 7,522 | 6,446 | |
Research and Development [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 20,126 | 13,932 | 14,082 | |
Research and Development [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 161,366 | 109,249 | 104,624 | |
Sales and Marketing [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 18,592 | 16,534 | 18,360 | |
Sales and Marketing [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 139,047 | 113,757 | 109,908 | |
General and Administrative [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 4,973 | 4,371 | 4,790 | |
General and Administrative [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | $ 77,133 | $ 70,312 | $ 66,709 | |
[1] | During fiscal 2017, 2016 and 2015, we recorded tax benefits of $153.2 million, $71.7 million and $68.8 million, respectively. |
Stock-Based Compensation (Det74
Stock-Based Compensation (Details Numeric) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 01, 2017USD ($)purchaseperiods$ / sharesshares | Dec. 02, 2016USD ($)$ / sharesshares | Nov. 27, 2015USD ($)$ / sharesshares | |
Stock Based Compensation (Numeric) [Abstract] | |||
Closing market values (per share) | $ / shares | $ 179.52 | $ 99.73 | $ 92.17 |
Unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock based awards (in millions) | $ | $ 708.3 | ||
Number of years over which unrecognized compensation costs will be recognized | 1 year 9 months 29 days | ||
New Non-Employee Directors [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Non-Employee Director Aggregate Grant Value Per Award | $ | $ 0.3 | ||
Vesting percentage per year for grants to non-employee directors | 100.00% | ||
Existing Non-Employee Directors [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Non-Employee Director Aggregate Grant Value Per Award | $ | $ 0.3 | ||
Numbers of days used to calculate the aggregate value of the equity award | 30 days | ||
Vesting percentage per year for grants to non-employee directors | 100.00% | ||
2003 Plan [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Common stock shares reserved for Issuance | 183.2 | ||
Shares available for grant | 93.6 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0.3 | 0.6 | |
Stock Based Compensation (Numeric) [Abstract] | |||
Period of options expiry | 7 years | ||
Restricted Stock Unit [Member] | New Non-Employee Directors [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 1 year | ||
Numbers of days used to calculate the aggregate value of the equity award | 30 days | ||
Restricted Stock Unit [Member] | Existing Non-Employee Directors [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 1 year | ||
Restricted Stock Unit [Member] | Focal Awards [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 3 years | ||
Vesting percentage per year for focal restricted stock units | 33.33% | ||
Restricted Stock Unit [Member] | Other Awards [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 4 years | ||
Vesting percentage per year for restricted stock units other than focal grants | 25.00% | ||
Employee Stock Purchase Plan [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Common stock shares reserved for Issuance | 93 | ||
Shares available for grant | 7 | ||
ESPP Purchase Price as Percentage of Market Price | 85.00% | ||
Offering Period | 24 months | ||
Number of purchase periods per offering period | purchaseperiods | 4 | ||
Purchase period | 6 months | ||
Weighted Average Subscription Date Fair Value of Shares (per share) | $ / shares | $ 29.86 | $ 24.84 | $ 20.81 |
Shares Purchased, ESPP | 1.9 | 1.9 | 2.1 |
Average purchase price of shares, ESPP (per share) | $ / shares | $ 77.63 | $ 66.13 | $ 52.37 |
Shares Purchased Intrinsic Value, ESPP | $ | $ 97.7 | $ 54.3 | $ 53.9 |
Performance Shares [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Maximum percentage of target shares able to receive | 200.00% | ||
Performance Shares [Member] | Program 2013 [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Actual Percentage Achieved | 198.00% | ||
Performance Shares [Member] | Program 2014 [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Actual Percentage Achieved | 198.00% | ||
Performance Shares [Member] | Programs not yet achieved [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 3 years | ||
Vesting percentage on third year for performance awards | 100.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | ||
Gross unrealized gains on available-for-sale securities | ||||
Beginning balance, unrealized gains on available-for-sale securities | $ 3,499 | |||
Gross unrealized gains on available for sale securities, increase decrease | 878 | |||
Gross unrealized gains on available for sale securities, reclassification adjustments | (1,673) | |||
Ending balance, unrealized gains on available-for-sale securities | 2,704 | $ 3,499 | ||
Gross unrealized losses, available-for-sale securities [Abstract] | ||||
Beginning balance, unrealized losses on available-for-sale securities | (11,565) | |||
Gross unrealized losses on available for sale securities increase or decrease | (3,381) | |||
Gross unrealized losses on available for sale securities, reclassification adjustments | 726 | |||
Ending balance, unrealized losses on available-for-sale securities | (14,220) | (11,565) | ||
Net unrealized gains on available-for-sale securities [Abstract] | ||||
Beginning Balance, total net unrealized gains on available-for-sale securities | (8,066) | |||
Net unrealized gains on available-for-sale securities, increase or decrease | (2,503) | (1,618) | $ (9,226) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | (947) | [1] | (1,895) | (2,955) |
Ending Balance, total net unrealized gains on available-for-sale securities | (11,516) | (8,066) | ||
Derivatives designated as hedging instruments [Abstract] | ||||
Beginning balance, net unrealized gains on derivative instruments designated as hedging instruments | 21,689 | |||
Net unrealized gains on derivative instruments designated as hedging instruments, increase or decrease | 6,917 | 35,199 | 29,795 | |
Net unrealized gains on derivative instruments designated as hedging instruments, reclassification adjustments | (31,973) | [2] | (16,425) | (55,535) |
Ending balance, net unrealized gains on derivative instruments designated as hedging instruments | (3,367) | 21,689 | ||
Cumulative foreign currency translation adjustments [Abstract] | ||||
Beginning balance, cumulative foreign currency translation adjustments | (187,225) | |||
Cumulative foreign currency translation adjustment, increase or decrease | 90,287 | (19,783) | $ (123,065) | |
Cumulative foreign currency translation adjustment, reclassification adjustments | 0 | |||
Ending balance, cumulative foreign currency translation adjustments | (96,938) | (187,225) | ||
Accumulated other comprehensive income totals [Abstract] | ||||
Beginning balance, total accumulated other comprehensive income, net of taxes | (173,602) | |||
Accumulated other comprehensive income, increase or decrease | 94,701 | |||
Accumulated other comprehensive income, reclassification adjustments | (32,920) | |||
Ending balance, total accumulated other comprehensive income, net of taxes | $ (111,821) | $ (173,602) | ||
[1] | (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. | |||
[2] | (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Available-for-sale securities, Tax: | |||
Unrealized Holding Gain (Loss) on Available-for-Sale Securities | $ 663 | $ (299) | $ (154) |
Reclassification Adjustments | (491) | 108 | 0 |
Subtotal, Available-for-sale Securities | 172 | (191) | (154) |
Derivatives designated as hedging instruments, Tax: | |||
Unrealized Gains on Derivative Instruments | 0 | 0 | 6,147 |
Reclassification Adjustments | (732) | (552) | (550) |
Subtotal, Derivatives Designated as Hedging Instruments | (732) | (552) | 5,597 |
Foreign Currency Translation Adjustments, Tax | 3,005 | 24 | (3,378) |
Other Comprehensive Income (Loss), Tax | $ 2,445 | $ (719) | $ 2,065 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Numeric) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 12 Months Ended | |||
Jan. 19, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | Jan. 20, 2017 | |
Stock Repurchase Programs (Numeric) [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,500,000 | ||||
Structured stock repurchase prepayments | $ 1,100,000 | $ 1,075,000 | $ 625,000 | ||
Repurchased Shares, Average Price | $ 134.20 | $ 97.16 | $ 77.38 | ||
Up-front payments remaining | $ 101,500 | ||||
Subsequent Event [Member] | |||||
Stock Repurchase Programs (Numeric) [Abstract] | |||||
Structured stock repurchase prepayments | $ 300,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,600,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Dec. 02, 2016 | Sep. 02, 2016 | Jun. 03, 2016 | Mar. 04, 2016 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 501,549 | $ 419,569 | $ 374,390 | $ 398,446 | $ 399,613 | $ 270,788 | $ 244,074 | $ 254,307 | $ 1,693,954 | $ 1,168,782 | $ 629,551 |
Shares used to compute basic net income per share | 493,632 | 498,345 | 498,764 | ||||||||
Dilutive potential common shares: | |||||||||||
Unvested restricted stock units and performance share awards | 7,161 | 5,455 | 7,389 | ||||||||
Stock options | 330 | 499 | 1,011 | ||||||||
Shares used to compute diluted net income per share | 501,123 | 504,299 | 507,164 | ||||||||
Basic net income per share | $ 1.02 | $ 0.85 | $ 0.76 | $ 0.81 | $ 0.81 | $ 0.54 | $ 0.49 | $ 0.51 | $ 3.43 | $ 2.35 | $ 1.26 |
Diluted net income per share | $ 1 | $ 0.84 | $ 0.75 | $ 0.80 | $ 0.80 | $ 0.54 | $ 0.48 | $ 0.50 | 3.38 | 2.32 | 1.24 |
Average Fair Market Value | $ 138.71 | $ 96.39 | $ 79.22 |
Commitments and Contingencies79
Commitments and Contingencies (Details) $ in Thousands | Dec. 01, 2017USD ($) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Purchase Obligations, 2018 | $ 449,823 |
Purchase Obligations, 2019 | 245,087 |
Purchase Obligations, 2020 | 410 |
Purchase Obligations, 2021 | 0 |
Purchase Obligations, 2022 | 0 |
Purchase Obligations, Thereafter | 0 |
Purchase Obligations, Total | 695,320 |
Operating Leases, Future Minimum Payments Receivables [Abstract] | |
Future Minimum Lease Payments, 2018 | 60,464 |
Future Minimum Lease Payments, 2019 | 62,307 |
Future Minimum Lease Payments, 2020 | 63,341 |
Future Minimum Lease Payments, 2021 | 53,670 |
Future Minimum Lease Payments, 2022 | 44,016 |
Future Minimum Lease Payments, Thereafter | 251,544 |
Future Minimum Lease Payments, Total | 535,342 |
Future Minimum Sublease Income, 2018 | 3,001 |
Future Minimum Sublease Income, 2019 | 2,903 |
Future Minimum Sublease Income, 2020 | 2,286 |
Future Minimum Sublease Income, 2021 | 2,036 |
Future Minimum Sublease Income, 2022 | 0 |
Future Minimum Sublease Income, Thereafter | 0 |
Future Minimum Sublease Income, Total | $ 10,226 |
Commitments and Contingencies80
Commitments and Contingencies (Details Numeric) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 02, 2017USD ($) | Dec. 01, 2017USD ($)buildings | Dec. 02, 2016USD ($) | Nov. 27, 2015USD ($) | Jan. 19, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Royalty Expense | $ 100,900 | $ 79,800 | $ 62,300 | ||
Asset acquisition, purchase price | |||||
Operating leases, rent expense, minimum rentals | $ 115,411 | 92,909 | $ 92,943 | ||
Number of corporate headquarter office buildings | buildings | 3 | ||||
Investment in lease receivable | $ 0 | $ 80,439 | |||
Subsequent Event [Member] | |||||
Asset acquisition, purchase price | |||||
Land acquisition, purchase price | $ 68,000 | ||||
Almaden Tower [Member] | |||||
Asset acquisition, purchase price | |||||
Investment in lease receivable | $ 80,400 | ||||
Option to purchase building, purchase price | $ 103,600 | ||||
Capitalized amount for building purchase | $ 104,200 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Dec. 02, 2016 |
Debt [Abstract] | ||
Senior Notes | $ 1,882,479 | $ 1,879,083 |
Fair value of interest rate swap offsetting carrying value of notes, liabilities | 1,058 | |
Fair value of interest rate swap offsetting carrying value of notes, asset | 13,117 | |
Debt and capital lease obligations | $ 1,881,421 | $ 1,892,200 |
Debt (Details Numeric)
Debt (Details Numeric) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 01, 2017 | Mar. 03, 2017 | Mar. 04, 2016 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | Jan. 21, 2015 | Jun. 13, 2014 | Mar. 02, 2012 | Feb. 28, 2010 | |
Senior Notes [Abstract] | ||||||||||
Proceeds from Issuance of Debt | $ 0 | $ 0 | $ 989,280 | |||||||
Debt and capital lease obligations | 1,881,421 | $ 1,892,200 | ||||||||
Line of Credit Facility [Abstract] | ||||||||||
Total senior unsecured revolving credit facility | $ 1,000,000 | |||||||||
Option to request additional commitments on credit facility | 500,000 | |||||||||
Maximum aggregate, credit facility | $ 1,500,000 | |||||||||
Long-Term Line of credit, amount outstanding | $ 0 | |||||||||
From [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Commitment fees rate | 0.08% | |||||||||
To [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Commitment fees rate | 0.20% | |||||||||
Notes 2015 [Member] | ||||||||||
Senior Notes [Abstract] | ||||||||||
Debt Instrument, Face Amount | $ 600,000 | |||||||||
Notes 2020 [Member] | ||||||||||
Senior Notes [Abstract] | ||||||||||
Debt Instrument, Face Amount | $ 900,000 | |||||||||
Senior notes, interest rate | 4.75% | |||||||||
Issuance discount | $ 5,500 | |||||||||
Issuance cost | $ 6,400 | |||||||||
Effective interest rate | 4.92% | |||||||||
Notes 2025 [Member] | ||||||||||
Senior Notes [Abstract] | ||||||||||
Debt Instrument, Face Amount | $ 1,000,000 | |||||||||
Senior notes, interest rate | 3.25% | |||||||||
Proceeds from Issuance of Debt | $ 989,300 | |||||||||
Issuance discount | $ 10,700 | |||||||||
Issuance cost | $ 7,900 | |||||||||
Effective interest rate | 3.67% | |||||||||
Notes 2020 and 2025 [Member] | ||||||||||
Senior Notes [Abstract] | ||||||||||
Fair value of long-term debt | $ 1,980,000 | |||||||||
Repurchase notes at price of their principal amount plus accrued and unpaid interest | 101.00% | |||||||||
Debt Instrument, Periodic Payment, Interest | $ 37,600 | $ 37,600 | ||||||||
Scenario i [Member] | Line of Credit [Member] | From [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Margin added to LIBOR to determine interest rate | 0.795% | |||||||||
Scenario i [Member] | Line of Credit [Member] | To [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Margin added to LIBOR to determine interest rate | 1.30% | |||||||||
Scenario ii [Member] | Line of Credit [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Percentage added to federal effective funds rate in determining interest rate | 0.50% | |||||||||
Percentage added to LIBOR in determining interest rate | 1.00% | |||||||||
Scenario ii [Member] | Line of Credit [Member] | From [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Margin added to LIBOR to determine interest rate | 0.00% | |||||||||
Scenario ii [Member] | Line of Credit [Member] | To [Member] | ||||||||||
Line of Credit Facility [Abstract] | ||||||||||
Margin added to LIBOR to determine interest rate | 0.30% | |||||||||
Fair Value Hedging [Member] | ||||||||||
Senior Notes [Abstract] | ||||||||||
Derivative, Notional Amount | $ 900,000 | |||||||||
Derivative, fixed interest rate | 4.75% |
Non-Operating Income (Expense83
Non-Operating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Interest and other income (expense), net: | |||
Interest income | $ 66,069 | $ 47,340 | $ 28,759 |
Foreign exchange gains (losses) | (30,705) | (35,716) | (20,130) |
Realized gains on fixed income investment | 1,673 | 2,880 | 3,309 |
Realized losses on fixed income investment | (725) | (985) | (354) |
Other | 83 | 29 | 22,325 |
Interest and other income (expense), net | 36,395 | 13,548 | 33,909 |
Interest expense | (74,402) | (70,442) | (64,184) |
Investment gains (losses), net: | |||
Realized investment gains | 3,279 | 4,964 | 2,760 |
Unrealized investment gains | 4,274 | 186 | 0 |
Realized investment losses | 0 | (6,720) | (206) |
Unrealized investment losses | 0 | 0 | (1,593) |
Investment gains (losses), net | 7,553 | (1,570) | 961 |
Non-operating income (expense), net | $ (30,454) | $ (58,464) | $ (29,314) |
Industry Segment, Geographic 84
Industry Segment, Geographic Information and Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Dec. 02, 2016 | Sep. 02, 2016 | Jun. 03, 2016 | Mar. 04, 2016 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 1,608,419 | $ 1,463,967 | $ 1,398,709 | $ 1,383,335 | $ 7,301,505 | $ 5,854,430 | $ 4,795,511 |
Cost of revenue | (1,010,491) | (819,908) | (744,317) | ||||||||
Gross profit | $ 1,735,723 | $ 1,578,152 | $ 1,532,830 | $ 1,444,309 | $ 1,391,863 | $ 1,261,266 | $ 1,196,630 | $ 1,184,763 | $ 6,291,014 | $ 5,034,522 | $ 4,051,194 |
Gross profit as a percentage of revenue | 86.00% | 86.00% | 84.00% | ||||||||
Digital Media [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 5,010,579 | $ 3,941,011 | $ 3,095,160 | ||||||||
Cost of revenue | (239,994) | (231,074) | (210,587) | ||||||||
Gross profit | $ 4,770,585 | $ 3,709,937 | $ 2,884,573 | ||||||||
Gross profit as a percentage of revenue | 95.00% | 94.00% | 93.00% | ||||||||
Digital Marketing [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 2,120,032 | $ 1,736,585 | $ 1,508,858 | ||||||||
Cost of revenue | (763,468) | (581,093) | (525,309) | ||||||||
Gross profit | $ 1,356,564 | $ 1,155,492 | $ 983,549 | ||||||||
Gross profit as a percentage of revenue | 64.00% | 67.00% | 65.00% | ||||||||
Print and Publishing [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 170,894 | $ 176,834 | $ 191,493 | ||||||||
Cost of revenue | (7,029) | (7,741) | (8,421) | ||||||||
Gross profit | $ 163,865 | $ 169,093 | $ 183,072 | ||||||||
Gross profit as a percentage of revenue | 96.00% | 96.00% | 96.00% |
Industry Segment, Geographic 85
Industry Segment, Geographic Information and Significant Customers (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Dec. 02, 2016 | Sep. 02, 2016 | Jun. 03, 2016 | Mar. 04, 2016 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 1,608,419 | $ 1,463,967 | $ 1,398,709 | $ 1,383,335 | $ 7,301,505 | $ 5,854,430 | $ 4,795,511 |
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 936,976 | 816,264 | 936,976 | 816,264 | 787,421 | ||||||
America [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 4,216,531 | 3,400,135 | 2,788,044 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 756,190 | 643,382 | 756,190 | 643,382 | 621,549 | ||||||
United States [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 3,830,845 | 3,087,764 | 2,548,024 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 753,393 | 642,823 | 753,393 | 642,823 | 621,122 | ||||||
Other Americas [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 385,686 | 312,371 | 240,020 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 2,797 | 559 | 2,797 | 559 | 427 | ||||||
EMEA [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 1,985,105 | 1,619,153 | 1,336,448 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 54,181 | 48,662 | 54,181 | 48,662 | 43,943 | ||||||
Asia [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 1,099,869 | 835,142 | 671,019 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 126,605 | 124,220 | 126,605 | 124,220 | 121,929 | ||||||
Japan [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 524,254 | 401,205 | 347,740 | ||||||||
India [Member] | |||||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 109,051 | 106,322 | 109,051 | 106,322 | 111,662 | ||||||
Other-Asia [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 575,615 | 433,937 | 323,279 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | $ 17,554 | $ 17,898 | $ 17,554 | $ 17,898 | $ 10,267 |
Selected Quarterly Financial 86
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Dec. 02, 2016 | Sep. 02, 2016 | Jun. 03, 2016 | Mar. 04, 2016 | Nov. 27, 2015 | Aug. 28, 2015 | May 29, 2015 | Feb. 27, 2015 | Dec. 01, 2017 | Dec. 02, 2016 | Nov. 27, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 1,608,419 | $ 1,463,967 | $ 1,398,709 | $ 1,383,335 | $ 7,301,505 | $ 5,854,430 | $ 4,795,511 | ||||
Gross profit | 1,735,723 | 1,578,152 | 1,532,830 | 1,444,309 | 1,391,863 | 1,261,266 | 1,196,630 | 1,184,763 | 6,291,014 | 5,034,522 | 4,051,194 | ||||
Income before income taxes | 643,012 | 541,379 | 492,618 | 460,632 | 456,700 | 356,301 | 329,830 | 292,307 | 2,137,641 | 1,435,138 | 873,781 | ||||
Net income | $ 501,549 | $ 419,569 | $ 374,390 | $ 398,446 | $ 399,613 | $ 270,788 | $ 244,074 | $ 254,307 | $ 1,693,954 | $ 1,168,782 | $ 629,551 | ||||
Basic net income per share | $ 1.02 | $ 0.85 | $ 0.76 | $ 0.81 | $ 0.81 | $ 0.54 | $ 0.49 | $ 0.51 | $ 3.43 | $ 2.35 | $ 1.26 | ||||
Diluted net income per share | $ 1 | $ 0.84 | $ 0.75 | $ 0.80 | $ 0.80 | $ 0.54 | $ 0.48 | $ 0.50 | $ 3.38 | $ 2.32 | $ 1.24 | ||||
Number of weeks in current fiscal year | P52W | P53W | P52W | ||||||||||||
Number of weeks in current fiscal quarter | P13W | P13W | P13W | P13W | P13W | P13W | P13W | P14W | P13W | P13W | P13W | P13W |