Document and Entity Information
Document and Entity Information Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Jan. 10, 2020 | May 31, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Nov. 29, 2019 | ||
Current Fiscal Year End Date | --11-29 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-15175 | ||
Entity Central Index Key | 0000796343 | ||
Entity Registrant Name | ADOBE INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0019522 | ||
Entity Address, Address Line One | 345 Park Avenue | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95110-2704 | ||
City Area Code | 408 | ||
Local Phone Number | 536-6000 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | ADBE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 102,250 | ||
Entity Common Stock, Shares Outstanding | 482,130,975 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,650,221 | $ 1,642,775 |
Short-term investments | 1,526,755 | 1,586,187 |
Trade receivables, net of allowances for doubtful accounts of $9,650 and $14,981, respectively | 1,534,809 | 1,315,578 |
Prepaid expenses and other current assets | 783,140 | 312,499 |
Total current assets | 6,494,925 | 4,857,039 |
Property and equipment, net | 1,293,015 | 1,075,072 |
Goodwill | 10,691,199 | 10,581,048 |
Other intangibles, net | 1,720,565 | 2,069,001 |
Other assets | 562,696 | 186,522 |
Total assets | 20,762,400 | 18,768,682 |
Current liabilities: | ||
Trade payables | 209,499 | 186,258 |
Accrued expenses | 1,398,548 | 1,163,185 |
Debt | 3,149,343 | 0 |
Deferred revenue | 3,377,986 | 2,915,974 |
Income taxes payable | 55,562 | 35,709 |
Total current liabilities | 8,190,938 | 4,301,126 |
Long-term liabilities: | ||
Debt | 988,924 | 4,124,800 |
Deferred revenue | 122,727 | 137,630 |
Income taxes payable | 616,102 | 644,101 |
Deferred income taxes | 140,498 | 46,702 |
Other liabilities | 173,056 | 152,209 |
Total liabilities | 10,232,245 | 9,406,568 |
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; 482,339 and 487,663 shares outstanding, respectively | 61 | 61 |
Additional paid-in-capital | 6,504,800 | 5,685,337 |
Retained earnings | 14,828,562 | 11,815,597 |
Accumulated other comprehensive income (loss) | (188,034) | (148,130) |
Treasury stock, at cost (118,495 and 113,171 shares, respectively), net of re-issuances | (10,615,234) | (7,990,751) |
Total stockholders' equity | 10,530,155 | 9,362,114 |
Total liabilities and stockholders' equity | $ 20,762,400 | $ 18,768,682 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Current Assets: | ||
Allowance for doubtful accounts receivable, current | $ 9,650 | $ 14,981 |
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 | 482,339 | 487,663 |
Treasury stock, shares | 118,495 | 113,171 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Revenue: | |||
Subscription | $ 9,994,463 | $ 7,922,152 | $ 6,133,869 |
Product | 647,788 | 622,153 | 706,767 |
Services and support | 529,046 | 485,703 | 460,869 |
Total revenue | 11,171,297 | 9,030,008 | 7,301,505 |
Cost of revenue: | |||
Subscription | 1,222,520 | 807,221 | 623,048 |
Product | 39,625 | 46,009 | 57,082 |
Services and support | 410,575 | 341,769 | 330,361 |
Total cost of revenue | 1,672,720 | 1,194,999 | 1,010,491 |
Gross profit | 9,498,577 | 7,835,009 | 6,291,014 |
Operating expenses: | |||
Research and development | 1,930,228 | 1,537,812 | 1,224,059 |
Sales and marketing | 3,244,347 | 2,620,829 | 2,197,592 |
General and administrative | 880,637 | 744,898 | 624,706 |
Amortization of intangibles | 175,244 | 91,101 | 76,562 |
Total operating expenses | 6,230,456 | 4,994,640 | 4,122,919 |
Operating income | 3,268,121 | 2,840,369 | 2,168,095 |
Non-operating income (expense): | |||
Interest and other income (expense), net | 42,255 | 39,536 | 36,395 |
Interest expense | (157,214) | (89,242) | (74,402) |
Investment gains (losses), net | 51,579 | 3,213 | 7,553 |
Total non-operating income (expense), net | (63,380) | (46,493) | (30,454) |
Income before income taxes | 3,204,741 | 2,793,876 | 2,137,641 |
Provision for income taxes | 253,283 | 203,102 | 443,687 |
Net income | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 |
Basic net income per share | $ 6.07 | $ 5.28 | $ 3.43 |
Shares used to compute basic net income per share | 486,291 | 490,564 | 493,632 |
Diluted net income per share | $ 6 | $ 5.20 | $ 3.38 |
Shares used to compute diluted net income per share | 491,572 | 497,843 | 501,123 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 | |
Available-for-sale Securities: | ||||
Unrealized gains / losses on available-for-sale securities | 29,409 | (24,464) | (2,503) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | 124 | [1] | 10,650 | (947) |
Net increase (decrease) from available-for-sale securities | 29,533 | (13,814) | (3,450) | |
Derivatives designated as hedging instruments: | ||||
Unrealized gains / losses on derivative instruments | 294 | 74,080 | 6,917 | |
Reclassification adjustment for gains / losses on derivative instruments recognized | (44,334) | [2] | (48,981) | (31,973) |
Net increase (decrease) from derivatives desinated as hedging instruments | (44,040) | 25,099 | (25,056) | |
Foreign currency translation adjustments | (25,397) | (47,594) | 90,287 | |
Other comprehensive income (loss), net of taxes | (39,904) | (36,309) | 61,781 | |
Total comprehensive income, net of taxes | $ 2,911,554 | $ 2,554,465 | $ 1,755,735 | |
[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 foreign currency hedges are classified in revenue and reclassification adjustments for gains / losses on Treasury lock hedges are classified in interest expense. |
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 Dec. 02, 2016 | $ 7,424,835 | $ 61 | $ 4,616,331 | $ 8,114,517 | $ (173,602) | $ (5,132,472) |
Beginning Balances, shares at Dec. 02, 2016 | 600,834 | |||||
Beginning Treasury stock, shares at Dec. 02, 2016 | (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 | (8,200) | (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) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,590,774 | 2,590,774 | ||||
Other comprehensive income (loss), net of taxes | (36,309) | (36,309) | ||||
Re-issuance of treasury stock under stock compensation plans | (202,203) | (1,125) | (348,729) | $ 147,651 | ||
Re-issuance of treasury stock under stock compensation plans, shares | 5,087 | |||||
Purchase of treasury stock | $ (2,050,000) | $ (2,050,000) | ||||
Purchase of treasury stock, shares | (8,700) | (8,686) | ||||
Equity awards assumed for acquisition | $ 2,784 | 2,784 | ||||
Stock-based compensation | 601,483 | 601,483 | ||||
Value of shares in deferred compensation plan | (3,966) | $ (3,966) | ||||
Impact of the U.S. Tax Act | (318) | (318) | ||||
Ending Balances at Nov. 30, 2018 | $ 9,362,114 | $ 61 | 5,685,337 | 11,815,597 | (148,130) | $ (7,990,751) |
Ending Balances, shares at Nov. 30, 2018 | 600,834 | |||||
Ending Treasury stock, shares at Nov. 30, 2018 | (113,171) | (113,171) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Impacts of adoption of the new revenue standard | $ 442,319 | 442,319 | ||||
Net income | 2,951,458 | 2,951,458 | ||||
Other comprehensive income (loss), net of taxes | (39,904) | (39,904) | ||||
Re-issuance of treasury stock under stock compensation plans | (207,052) | 48,686 | (380,812) | $ 125,074 | ||
Re-issuance of treasury stock under stock compensation plans, shares | 4,559 | |||||
Purchase of treasury stock | $ (2,750,000) | $ (2,750,000) | ||||
Purchase of treasury stock, shares | (9,900) | (9,883) | ||||
Equity awards assumed for acquisition | $ 0 | |||||
Stock-based compensation | 770,777 | 770,777 | ||||
Value of shares in deferred compensation plan | 443 | $ 443 | ||||
Ending Balances at Nov. 29, 2019 | $ 10,530,155 | $ 61 | $ 6,504,800 | $ 14,828,562 | $ (188,034) | $ (10,615,234) |
Ending Balances, shares at Nov. 29, 2019 | 600,834 | |||||
Ending Treasury stock, shares at Nov. 29, 2019 | (118,495) | (118,495) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 736,669 | 346,492 | 325,997 |
Stock-based compensation | 787,705 | 609,562 | 454,472 |
Deferred income taxes | (2,707) | 468,936 | (51,605) |
Unrealized losses (gains) on investments, net | (47,626) | 793 | (5,494) |
Other non-cash items | 13,835 | 7,193 | 4,625 |
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | |||
Trade receivables, net | (187,826) | (1,983) | (187,173) |
Prepaid expenses and other assets | (531,054) | (77,225) | 28,040 |
Trade payables | (23,129) | (54,920) | 45,186 |
Accrued expenses | 171,705 | 43,837 | 151,104 |
Income taxes payable | 4,152 | 479,184 | (34,493) |
Deferred revenue | 496,959 | 444,693 | 475,402 |
Net cash provided by operating activities | 4,421,813 | 4,029,304 | 2,912,853 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (699,893) | (566,084) | (1,931,011) |
Maturities of short-term investments | 699,540 | 765,860 | 759,737 |
Proceeds from sales of short-term investments | 86,137 | 1,709,480 | 1,393,929 |
Acquisitions, net of cash acquired | (100,704) | (6,314,382) | (459,626) |
Purchases of property and equipment | (394,479) | (266,579) | (178,122) |
Purchases of long-term investments, intangibles and other assets | (48,735) | (18,513) | (29,918) |
Proceeds from sale of long-term investments and other assets | 2,550 | 4,923 | 2,134 |
Net cash used for investing activities | (455,584) | (4,685,295) | (442,877) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (2,750,000) | (2,050,000) | (1,100,000) |
Proceeds from re-issuance of treasury stock | 232,932 | 190,990 | 158,351 |
Taxes paid related to net share settlement of equity awards | (439,984) | (393,193) | (240,126) |
Proceeds from debt issuance, net of costs | 0 | 2,248,342 | 0 |
Other financing activities, net | 11,008 | (1,707) | (1,960) |
Net cash used for financing activities | (2,946,044) | (5,568) | (1,183,735) |
Effect of foreign currency exchange rates on cash and cash equivalents | (12,739) | (1,738) | 8,516 |
Net increase (decrease) in cash and cash equivalents | 1,007,446 | (663,297) | 1,294,757 |
Cash and cash equivalents at beginning of year | 1,642,775 | 2,306,072 | 1,011,315 |
Cash and cash equivalents at end of year | 2,650,221 | 1,642,775 | 2,306,072 |
Supplemental disclosures: | |||
Cash paid for income taxes, net of refunds | 352,478 | 210,369 | 396,668 |
Cash paid for interest | 152,075 | 81,258 | 69,430 |
Non-cash investing activities: | |||
Investment in lease receivable applied to building purchase | 0 | 0 | 80,439 |
Issuance of common stock and stock awards assumed in business acquisitions | $ 0 | $ 2,784 | $ 10,348 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Nov. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Operations Founded in 1982, Adobe Inc. 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, students, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing, engaging and transacting with compelling content and experiences across personal computers, devices and media. We market our products and services directly to enterprise customers through our sales force and local field offices. We license our products 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 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, systems integrators, independent software vendors, 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, impairment of goodwill and intangible assets, litigation and income taxes. 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. Fiscal years 2019 , 2018 and 2017 were 52-week years. Reclassifications Certain immaterial prior year amounts have been reclassified to conform to current year presentation in the Notes to Consolidated Financial Statements. Recently Adopted Accounting Guidance On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, Topic 606, 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. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental costs to obtain a contract with a customer. The new revenue standard replaces most existing revenue recognition guidance in GAAP and permits the use of either the full retrospective or modified retrospective transition method. On December 1, 2018, the beginning of our fiscal year 2019, we adopted the requirements of the new revenue standard utilizing the modified retrospective method of transition. Prior period information has not been restated and continues to be reported under the accounting standard in effect for those periods. We applied the new revenue standard to contracts that were not completed as of the adoption date, consistent with the transition guidance. Further, adoption of the new revenue standard resulted in changes to our accounting policies for revenue recognition and sales commissions as detailed below. We recognized the following cumulative effects of initially applying the new revenue standard as of December 1, 2018: (in thousands) As of Topic 606 Adoption Adjustments As of Assets Trade receivables, net of allowances for doubtful accounts $ 1,315,578 $ 43,028 $ 1,358,606 Prepaid expenses and other current assets 312,499 186,220 498,719 Other assets 186,522 273,421 459,943 Liabilities and Stockholders’ Equity Accrued expenses 1,163,185 30,358 1,193,543 Deferred revenue, current 2,915,974 (52,842 ) 2,863,132 Deferred income taxes 46,702 82,834 129,536 Retained earnings $ 11,815,597 $ 442,319 $ 12,257,916 Below is a summary of the adoption impacts of the new revenue standard: • We capitalized $413.2 million of contract acquisition costs comprised of sales and partner commission costs at adoption date (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion), with a corresponding adjustment to retained earnings. We are amortizing these costs over their respective expected period of benefit. • Revenue for certain contracts that were previously deferred would have been recognized in periods prior to adoption under the new standard. Upon adoption, we recorded the following adjustments to our beginning balances to reflect the amount of revenue that will no longer be recognized in future periods for such contracts: an increase in unbilled receivables (included in trade receivables, net) of $24.8 million , an increase in contract assets (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion) of $46.4 million and a decrease in deferred revenue of $52.8 million , with corresponding adjustments to retained earnings. • We recorded an increase to our opening deferred income tax liability of $82.8 million , with a corresponding adjustment to retained earnings, to record the tax effect of the above adjustments. • Further, we had other impacts to various accounts which resulted to an immaterial net reduction to our retained earnings. Adoption of the new revenue standard impacted our Consolidated Statements of Income for the year ended November 29, 2019 as follows: (in thousands, except per share amounts) As reported Adjustments Balances without Topic 606 adoption impact Revenue Subscription $ 9,994,463 $ 1,440 $ 9,995,903 Product 647,788 (101,981 ) 545,807 Services and support 529,046 (7,431 ) 521,615 Total revenue 11,171,297 (107,972 ) 11,063,325 Operating expenses Sales and marketing 3,244,347 11,987 3,256,334 General and administrative 880,637 (7,646 ) 872,991 Provision for income taxes 253,283 (6,517 ) 246,766 Net income $ 2,951,458 $ (105,953 ) $ 2,845,505 Basic net income per share $ 6.07 $ (0.22 ) $ 5.85 Diluted net income per share $ 6.00 $ (0.21 ) $ 5.79 Adoption of the new revenue standard impacted our Consolidated Balance Sheets as of November 29, 2019 as follows: (in thousands) As reported Adjustments Balances without Topic 606 adoption impact Assets Trade receivables, net of allowances for doubtful accounts $ 1,534,809 $ (58,140 ) $ 1,476,669 Prepaid expenses and other current assets 783,140 (198,692 ) 584,448 Other assets 562,696 (340,458 ) 222,238 Liabilities and Stockholders’ Equity Accrued expenses 1,398,548 (51,918 ) 1,346,630 Deferred revenue, current 3,377,986 113,432 3,491,418 Deferred revenue, long-term 122,727 (14,723 ) 108,004 Income taxes payable, long-term 616,102 (7,112 ) 608,990 Deferred income taxes 140,498 (88,697 ) 51,801 Retained earnings $ 14,828,562 $ (548,272 ) $ 14,280,290 There was no net impact to our Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows resulting from the adoption of the new revenue standard other than the impact to reported net income as presented above. The impact to our Consolidated Statements of Stockholders’ Equity was only to retained earnings, as presented above. The most significant impact of the new revenue standard relates to our capitalization of certain incremental costs to acquire contracts and the requirement to amortize these amounts over the expected period of benefit. Under the previous standard, we expensed costs related to the acquisition of revenue-generating contracts as incurred. Additionally, there was impact from arrangements with our customers that include on-premise term-based software licenses bundled with maintenance and support. Under the previous standard, revenue attributable to these software licenses was recognized ratably over the term of the arrangement because vendor-specific objective evidence (“VSOE”) did 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 recognition for delivered software licenses is eliminated under the new revenue standard. Accordingly, under the new revenue standard we recognize as revenue a portion of the arrangement fee upon delivery of the software licenses and classify that recognized revenue as product revenue instead of subscription revenue in our Consolidated Statements of Income. Other impacts to our policies and disclosures include earlier recognition of revenue for certain contracts due to the elimination of contingent revenue limitations, the requirement to estimate variable consideration for certain arrangements, increased allocation of revenue to and from professional services and other offerings and changes to our financial statement disclosures such as new disclosures related to our remaining performance obligations. However, the timing and pattern of revenue recognition related to our professional services and cloud-enabled offerings, including Creative Cloud and Document Cloud for enterprises, individuals and teams, remain substantially unchanged. When Creative Cloud and Document Cloud are sold with cloud-enabled services, the on-premise/on-device software licenses and cloud-enabled services are so highly interrelated and interdependent that they are not each separately identifiable within the context of the contract and therefore not distinct from each other. Revenue for these offerings continues to be recognized ratably over the subscription period for which the cloud-enabled services are provided. There have been no other new accounting pronouncements made effective during fiscal 2019 that have significance, or potential significance, to our Consolidated Financial Statements. Significant Accounting Policies Revenue Recognition Our revenue is derived from the sale of cloud-enabled software subscriptions, cloud-hosted offerings, term-based, royalty, and perpetual software licenses, associated software maintenance and support plans, consulting services, training and technical support. Most of our enterprise customer arrangements involve multiple promises to our customers. Revenue is recognized when a contract exists between us and a customer and upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which may be capable of being distinct and accounted for as separate performance obligations, or in the case of offerings such as cloud-enabled Creative Cloud and Document Cloud, accounted for as a single performance obligation. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Product, Subscription and Services Offerings We enter into revenue arrangements in which a customer may purchase a combination of cloud-enabled subscriptions, cloud-hosted offerings, term-based, royalty, and perpetual software licenses, associated software maintenance and support plans, consulting services, training and technical support. Fully hosted subscription services (SaaS) allow customers to access hosted software during the contractual term without taking possession of the software. Cloud-hosted subscription services may be sold on a fee-per-subscription period basis or based on consumption or usage. We recognize revenue ratably over the contractual service term for hosted services that are priced based on a committed number of transactions where the delivery and consumption of the benefit of the services occur evenly over time, 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 based on the actual number of transactions are billed in accordance with contract terms as these fees are incurred and are included in the transaction price of an arrangement as variable consideration. Fees based on a number of transactions or impressions per month, where invoicing is aligned to the pattern of performance, customer benefit and consumption, are typically accounted for utilizing the “as-invoiced” practical expedient. Revenue for subscriptions sold as a fee per period is recognized ratably over the contractual term as the customer simultaneously receives and consumes the benefit of the underlying service. When cloud-enabled services are highly integrated and interrelated with on-premise software, such as in our cloud-enabled Creative Cloud and Document Cloud offerings, the individual components are not considered distinct and revenue is recognized ratably over the subscription period for which the cloud-enabled services are provided. Licenses for on-premise software may be purchased on a perpetual basis, as a subscription for a fixed period of time or based on usage for certain of our OEM and royalty agreements. Revenue from distinct on-premise licenses is recognized at the point in time the software is available to the customer, provided all other revenue recognition criteria are met, and classified as product revenue on our Consolidated Statements of Income. Some of our enterprise license arrangements allow customers to commit non-cancellable funds. These non-cancellable committed funds are nonrefundable and provide our customers options to either renew monthly on-premise term-based licenses or use some or all funds to purchase other Adobe products or services. Revenue associated with these monthly term-based licenses is classified as subscription revenue. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to our enterprise offerings. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. We typically sell our consulting contracts on a time-and-materials basis and recognize the related revenue as services are rendered. We typically sell our maintenance and support contracts on a flat fee or percentage of associated license fees basis and recognize the related revenue ratably over the support term as the underlying service is a stand-ready performance obligation. We exclude from the transaction price sales and other taxes collected from customers on behalf of the relevant government authority. Most of our products are delivered electronically, however in instances where shipping and handling costs are incurred, we treat these amounts as costs to fulfill the contract and they are not considered a performance obligation and the associated fees are not included in the transaction price. Judgments Our contracts with customers may include multiple goods and services. For example, some of our offerings include both on-premise and/or on-device software licenses and cloud services. Determining whether the software licenses and the cloud services are distinct from each other, and therefore performance obligations to be accounted for separately, or not distinct from each other, and therefore part of a single performance obligation, may require significant judgment. We have concluded that the on-premise/on-device software licenses and cloud services provided in our Creative Cloud and Document Cloud subscription offerings are not distinct from each other such that revenue from each offering should be recognized ratably over the subscription period for which the cloud services are provided. In reaching this conclusion, we considered the nature of our promise to Creative Cloud and Document Cloud customers, which is to provide a complete end-to-end creative design or document workflow solution that operates seamlessly across multiple devices and teams. We fulfill this promise by providing access to a solution that integrates cloud-based and on-premise/on-device features that, together through their integration, provide functionalities, utility and workflow efficiencies that could not be obtained from either the on-premise/on-device software or cloud services on their own. Cloud-based features that are integral to our Creative Cloud and Document Cloud offerings and that work together with the on-premise/on-device software include, but are not limited to: Creative Cloud Libraries, which enable customers to access their work, settings, preferences, and other assets seamlessly across desktop and mobile devices and collaborate across teams in real time; shared reviews which enable simultaneous editing and commenting of PDFs across desktop, mobile and web; automatic cloud rendering of a design which enables it to be worked on in multiple mediums; and Sensei, Adobe’s cloud-hosted artificial intelligence and machine learning framework, which enables features such as automated photo-editing, photograph content-awareness, natural language processing, optical character recognition and automated document tagging. Standalone selling price is established by maximizing the amount of observable inputs, primarily actual historical selling prices for performance obligations where available, and includes consideration of factors such as go-to-market model and geography. Individual products may have multiple values for standalone selling price depending on factors such as where they are sold and what channel they are sold through. Where standalone selling price may not be directly observable (e.g., the performance obligation is not sold separately), we maximize the use of observable inputs by using information that may include reviewing pricing practices, performance obligations with similar customers and selling models. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which we have determined, based on analysis, to be 5 years . We evaluated qualitative and quantitative factors to determine the period of amortization, including contract length, renewals, customer life and the useful lives of our products and acquired products. When the expected period of benefit of an asset which would be capitalized is less than one year, we expense the amount as incurred, utilizing the practical expedient. We regularly evaluate whether there have been changes in the underlying assumptions and data used to determine the amortization period. When revenue arrangements include components of third-party goods and services, for example in transactions which involve resale, fulfillment or providing advertising impressions to our end customer, we evaluate whether we are the principal, and report revenues on a gross basis, or an agent, and report revenues on a net basis. In this assessment, we consider if we obtain control of the specified goods or services before they are transferred to the customer by evaluating indicators such as which party is primarily responsible for fulfilling the promise to provide the goods or services, which party has discretion in establishing price and the underlying terms and conditions between the parties to the transaction. 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 variable consideration when estimating transaction price. Returns, rebates and other offsets to transaction price are estimated at contract inception on a portfolio basis and assessed for reasonableness each reporting period when additional information becomes available. General Contract Provisions We maintain revenue reserves for rebates, rights of return and other limited price adjustments. 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 for products that are being replaced by new versions. We offer rebates to our distributors, resellers and/or end-user customers. Transaction price is reduced for these amounts based on actual performance against objectives set forth by us for a particular reporting period, such as volume and timely reporting. On a quarterly basis, the amount of revenue that is reserved is calculated based on our historical trends and data specific to each reporting period. The primary method of establishing these reserves is to review historical data from prior periods as a percent of revenue to determine a historical reserve 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 reserve in excess of portfolio-level 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. 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 and consumers have a period of time to terminate certain agreements without penalty. In the event a customer cancels their contract, they are generally not entitled to a refund for prior services we have provided to them. Contracts that include termination rights without substantive penalty are accounted for as contracts only for the committed period. Periods of time after the right of termination are accounted for as optional purchases when they do not represent material rights. For certain of our usage-based license agreements, typically in our royalty and OEM businesses, reporting may be received after the end of a fiscal period. In such instances, we estimate and accrue license revenue. We base our estimates on multiple factors, including historical sales information, seasonality and other business information which may impact our estimates. We do not estimate variable consideration for our sales and usage-based license royalty agreements, consistent with the associated exception for sales and usage-based royalties for the license of intellectual property under the new revenue standard. 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 20 years for computers and other equipment, which includes our corporate jet, 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, 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 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including 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 segment’s 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 values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed. If the qualitative assessment indicates that the quantitative analysis should be performed, we then 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 2019 . 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 quantitative goodwill impairment test was not performed. We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year. 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 2019 , 2018 or 2017 . During fiscal 2019 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 15 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 ) Customer contracts and relationships 10 Purchased technology 6 Trademarks 9 Backlog 2 Acquired rights to use technology 10 Other 4 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 2019 , 2018 and 2017 were $221.1 million , $173.6 million and $141.7 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). Derivative Financial Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option and forward contracts to hedge a portion of our forecasted foreign currency denominated revenue primarily 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. Gains and losses related to changes in the fair value of interest rate swaps and foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income (expense), net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue and Treasury lock agreements are designated as cash flow hedges with gains and losses recorded net of tax as a component of accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction affects earnings, we reclassify the related gain or loss on the foreign currency and Treasury lock cash flow hedges to revenue and interest expense, respectively. 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 master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We also enter into collateral security agreements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and software |
Revenue
Revenue | 12 Months Ended |
Nov. 29, 2019 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Segment Information We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our Chief Executive Officer, 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. Our business is organized into three reportable segments: Digital Media, Digital Experience and Publishing. These segments provide our senior management with a comprehensive financial view of our key businesses. Our segments are aligned around our two strategic growth opportunities as described in the “Business Overview” within Part I, Item 1, placing our Publishing business in a third segment that contains some of our mature products and solutions. In fiscal 2019 , we categorized our products into the following reportable segments: • Digital Media —Our Digital Media segment provides tools and solutions that enable individuals, teams and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include content creators, experience designers, app developers, enthusiasts, students, social media users and creative professionals, as well as marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate on and distribute documents and creative content. • Digital Experience —Our Digital Experience segment provides products, services and solutions for creating, managing, executing, measuring, monetizing and optimizing customer experiences from advertising to commerce. Our customers include marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, marketing executives, information management and technology executives, product development executives, and sales and support executives. • Publishing —Our 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. It also includes our web conferencing and document and forms platforms. Revenue for fiscal 2019 presented below is in accordance with the new revenue standard that was adopted under the modified retrospective method. Prior period revenue has not been restated. Our segment revenue and results for fiscal 2019 , 2018 and 2017 were as follows: (dollars in thousands) Digital Media Digital Experience Publishing Total Fiscal 2019 Revenue $ 7,706,983 $ 3,206,169 $ 258,145 $ 11,171,297 Cost of revenue 289,639 1,362,886 20,195 1,672,720 Gross profit $ 7,417,344 $ 1,843,283 $ 237,950 $ 9,498,577 Gross profit as a percentage of revenue 96 % 57 % 92 % 85 % Fiscal 2018 Revenue $ 6,325,315 $ 2,443,745 $ 260,948 $ 9,030,008 Cost of revenue 249,386 922,414 23,199 1,194,999 Gross profit $ 6,075,929 $ 1,521,331 $ 237,749 $ 7,835,009 Gross profit as a percentage of revenue 96 % 62 % 91 % 87 % Fiscal 2017 Revenue $ 5,010,579 $ 2,030,324 $ 260,602 $ 7,301,505 Cost of revenue 239,994 747,005 23,492 1,010,491 Gross profit $ 4,770,585 $ 1,283,319 $ 237,110 $ 6,291,014 Gross profit as a percentage of revenue 95 % 63 % 91 % 86 % Revenue by geographic area for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Americas: United States $ 5,904,185 $ 4,632,469 $ 3,830,845 Other 601,721 484,296 385,686 Total Americas 6,505,906 5,116,765 4,216,531 EMEA 2,975,243 2,550,062 1,985,105 APAC: Japan 751,542 609,361 524,254 Other 938,606 753,820 575,615 Total APAC 1,690,148 1,363,181 1,099,869 Revenue $ 11,171,297 $ 9,030,008 $ 7,301,505 Revenue by major offerings in our Digital Media reportable segment for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Creative Cloud $ 6,482,345 $ 5,343,498 $ 4,173,964 Document Cloud 1,224,638 981,817 836,615 Total $ 7,706,983 $ 6,325,315 $ 5,010,579 Subscription revenue by segment for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Digital Media $ 7,208,238 $ 5,857,700 $ 4,480,745 Digital Experience 2,670,748 1,949,185 1,552,536 Publishing 115,477 115,267 100,588 Total $ 9,994,463 $ 7,922,152 $ 6,133,869 Contract Balances Trade Receivables A receivable is recorded when an unconditional right to invoice and receive payment exists, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. Certain performance obligations may require payment before delivery of the license or service to the customer. Included in trade receivables on the Consolidated Balance Sheets are unbilled receivable balances which have not yet been invoiced, and are typically related to license revenue or services which are delivered prior to invoicing occurring. The opening balance of trade receivables, net of allowances for doubtful accounts, as of December 1, 2018 was $1.36 billion , inclusive of unbilled receivables of $105.8 million . As of November 29, 2019 , the balance of trade receivables, net of allowances for doubtful accounts, was $1.53 billion , inclusive of unbilled receivables of $149.3 million . 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 allowance by considering factors such 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. During fiscal 2019 , 2018 and 2017 , our allowance for doubtful accounts activities were as follows: (in thousands) 2019 2018 2017 Beginning balance $ 14,981 $ 9,151 $ 6,214 Increase due to acquisition 10 5,602 2,391 Charged to operating expenses 5,324 5,962 4,411 Deductions (1) (10,665 ) (5,734 ) (3,865 ) Ending balance $ 9,650 $ 14,981 $ 9,151 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. Contract Assets A contract asset is recognized when a conditional right to consideration exists and transfer of control has occurred. Contract assets are typically related to subscription and hosted service contracts where the transaction price allocated to the satisfied performance obligations exceeds the value of billings to date. Contract assets are included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion on the Consolidated Balance Sheets. We regularly review contract asset balances for impairment, considering factors such as historical experience, credit-worthiness, age of the balance and other economic or business factors. Contract asset impairments were not significant in fiscal 2019 . The opening balance of contract assets as of December 1, 2018 was $46.4 million . As of November 29, 2019 , the balance of contract assets was $63.9 million . Deferred Revenue and Remaining Performance Obligations Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services, including non-cancellable and non-refundable committed funds and deposits. Deferred revenue is recognized as revenue when transfer of control to customers has occurred. Customers are typically invoiced for these agreements in regular installments and revenue is recognized ratably over the contractual subscription period. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, size and new business linearity within the quarter. Deferred revenue does not represent the total contract value of annual or multi-year non-cancellable subscription agreements. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, such as invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and not to receive financing from our customers. Any potential financing fees are considered insignificant in the context of our contracts. The adjusted opening balance of deferred revenue as of December 1, 2018 was $3.00 billion . As of November 29, 2019 , the balance of deferred revenue was $3.50 billion , inclusive of $265.4 million of non-cancellable and non-refundable committed funds and $56.9 million of refundable customer deposits. Arrangements with non-cancellable and non-refundable committed funds provide our customers options to either renew monthly on-premise term-based licenses or use some or all funds to purchase other Adobe products or services. Refundable customer deposits represent arrangements in which the customer has a unilateral cancellation right for which we are obligated to refund amounts paid related to products or services not yet delivered or provided at the time of cancellation on a prorated basis. Significant movements in the deferred revenue balance during the period consisted of increases due to payments received prior to transfer of control of the underlying performance obligations to the customer and deferred revenue assumed through business combinations, which were offset by decreases due to revenue recognized in the period. During the year ended November 29, 2019 , approximately $2.8 billion of revenue was recognized that was included in the adjusted opening balance of deferred revenue as of December 1, 2018. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including the timing of renewals and average contract terms. We applied practical expedients to exclude amounts related to performance obligations that are billed and recognized as they are delivered, optional purchases that do not represent material rights, sales- and usage-based royalties not yet consumed and any estimated amounts of variable consideration that are subject to constraint in accordance with the new revenue standard. Remaining performance obligations were approximately $9.82 billion as of November 29, 2019 , which includes $776.4 million of non-cancellable and non-refundable committed funds related to some of our enterprise customer agreements. Approximately 74% of the remaining performance obligations, excluding the aforementioned enterprise customer agreements, are expected to be recognized over the next 12 months with the remainder recognized thereafter. Contract Acquisition Costs We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs meet the requirements to be capitalized. The costs capitalized under the new revenue standard are primarily sales commissions paid to our sales force personnel. Capitalized costs may also include portions of fringe benefits and payroll taxes associated with compensation for incremental costs to acquire customer contracts and incentive payments to partners. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which we have determined, based on analysis, to be 5 years . Amortization of capitalized costs are included in sales and marketing expense in our Consolidated Statements of Income. During fiscal 2019 , we amortized $170.9 million of capitalized contract acquisition costs into sales and marketing expense. We did not incur any impairment losses. The opening balance of capitalized contract acquisition costs as of December 1, 2018 was $413.2 million . As of November 29, 2019 , the balance of capitalized contract acquisition costs was $473.7 million , of which $314.7 million was long-term and included in other assets in the Consolidated Balance Sheets. The remaining balance of the capitalized costs to obtain contracts was current and included in prepaid expenses and other current assets. Revenue Reserve During fiscal 2019 , 2018 and 2017 , our revenue reserve activities were as follows: (in thousands) 2019 2018 2017 Beginning balance $ 25,425 $ 22,006 $ 23,096 Impacts of adoption of the new revenue standard (14,733 ) — — Amount charged to revenue 18,276 65,241 61,031 Actual returns (22,236 ) (61,822 ) (62,121 ) Ending balance $ 6,732 $ 25,425 $ 22,006 Refund Liabilities As part of our revenue reserves, we record refund liabilities for amounts that may be subject to future refunds, which include sales returns reserves and customer rebates and credits. Refund liabilities are included in accrued expenses on the Consolidated Balance Sheets. The opening balance of refund liabilities as of December 1, 2018 was $75.3 million . As of November 29, 2019 , the balance of refund liabilities was $126.1 million . Significant Customers For fiscal 2019 , 2018 and 2017 there were no customers that represented at least 10% of net revenue. As of fiscal year end 2019 and 2018 |
Acquisitions
Acquisitions | 12 Months Ended |
Nov. 29, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Allegorithmic On January 23, 2019 , we completed the acquisition of Allegorithmic, a privately held 3D editing and authoring software company for gaming and entertainment, and integrated it into our Digital Media reportable segment. Prior to the acquisition, we held an equity interest that was accounted for as an equity-method investment. We acquired the remaining equity interest for approximately $106.2 million in cash consideration. The total purchase price, inclusive of the acquisition-date fair-value of our pre-existing equity interest, was approximately $161.1 million . In conjunction with the Allegorithmic acquisition, we separately recognized an investment gain of approximately $42.0 million , which represents the difference between the $54.8 million acquisition-date fair value of our pre-existing equity interest and our previous carrying amount. Under the acquisition method of accounting, the total final purchase price was allocated to Allegorithmic’s net tangible and intangible assets based upon their estimated fair values as of the acquisition date. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. Of the total purchase price, $125.9 million was allocated to goodwill that was non-deductible for tax purposes, $44.8 million to identifiable intangible assets and the remainder to net liabilities assumed. Pro forma financial information has not been presented for the Allegorithmic acquisition as the impact to our Consolidated Financial Statements was not material. Marketo On October 31, 2018 , we completed the acquisition of Marketo, a privately held marketing cloud platform company, for approximately $4.73 billion of cash consideration. Adding Marketo’s engagement platform to Adobe Experience Cloud furthers our long-term plan for strategic growth in the Digital Experience segment and enables us to offer a comprehensive set of solutions to enable customers across industries and companies automate and orchestrate their marketing activities. Under the terms of the Share Purchase Agreement (“Purchase Agreement”), we acquired all of the issued and outstanding shares of capital stock of Milestone Topco, Inc., a Delaware corporation (“Topco”) and indirect parent company of Marketo, and other equity interests in Marketo. In connection with the acquisition, each Marketo equity award that was issued and outstanding was cancelled and extinguished in exchange for cash consideration. Also pursuant to the Purchase Agreement, upon closing of the transaction, cash was paid for the settlement of Marketo’s long-term incentive plan, the settlement of Marketo’s indebtedness and the acquisition of all remaining equity interests in Marketo K.K., a Japanese corporation and joint venture. In connection with the acquisition, we entered into a credit agreement providing for a $2.25 billion senior unsecured term loan (“Term Loan”). The proceeds of the Term Loan were used to fund a portion of the purchase price of the acquisition and pay fees and expenses incurred in connection with the acquisition. The Term Loan funds were received on October 31, 2018 upon closing of the acquisition. See Note 17 for further details regarding our Term Loan. We integrated Marketo into our Digital Experience reportable segment and have included the financial results of Marketo in our Consolidated Financial Statements beginning on the acquisition date. The amounts of net revenue and net loss of Marketo included in our Consolidated Statements of Income from the acquisition date through November 30, 2018 were not material. The direct transaction costs associated with the acquisition were also not material. Purchase Price Allocation Under the purchase accounting method, the total final purchase price was allocated to Marketo’s net tangible and intangible assets based upon their estimated fair values as of the acquisition date. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The table below represents the final purchase price allocation to the acquired net tangible and intangible assets of Marketo based on their estimated fair values as of October 31, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to total purchase price, intangible assets, deferred revenue, tax liabilities assumed and their related impact to goodwill. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 577,500 11 Purchased technology 444,500 7 Backlog 105,500 2 Non-competition agreements 12,100 2 Trademarks 328,500 9 Total identifiable intangible assets 1,468,100 Net liabilities assumed (194,588 ) N/A Goodwill (1) 3,459,256 N/A Total purchase price $ 4,732,768 _________________________________________ (1) Non-deductible for tax-purposes. Identifiable intangible assets — Customer relationships consist of Marketo’s contractual relationships and customer loyalty related to their enterprise and commercial customers as well as technology partner relationships. The estimated fair value of the customer contracts and relationships was determined based on projected cash flows attributable to the asset. Purchased technology acquired primarily consists of Marketo’s cloud-based engagement marketing software platform. The estimated fair value of the purchased technology was determined based on the expected future cost savings resulting from ownership of the asset. Backlog relates to subscription contracts and professional services. Non-compete agreements include agreements with key Marketo employees that preclude them from competing against Marketo for a period of two years from the acquisition date. Trademarks include the Marketo trade name, which is well known in the marketing ecosystem. We amortize the fair value of these intangible assets on a straight-line basis over their respective estimated useful lives. Goodwill — Approximately $3.46 billion of goodwill has been allocated entirely to our Digital Experience reportable segment. Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. The factors that contributed to the recognition of goodwill included securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a marketplace participant, acquiring a talented workforce and cost savings opportunities. Net liabilities assumed — Marketo’s tangible assets and liabilities as of October 31, 2018 were reviewed and adjusted to their fair value as necessary. The net liabilities assumed included, among other items, $102.6 million in accrued expenses, $74.8 million in deferred revenue and $182.6 million in deferred tax liabilities, which were partially offset by $54.9 million in cash and cash equivalents and $71.6 million in trade receivables acquired. Deferred revenue — Included in net liabilities assumed is Marketo’s deferred revenue which represents advance payments from customers related to subscription contracts and professional services. We estimated our obligation related to the deferred revenue using the cost build-up approach. The cost build-up approach determines fair value by estimating the direct and indirect costs related to supporting the obligation plus an assumed operating margin. The sum of the costs and assumed operating profit approximates, in theory, the amount that Marketo would be required to pay a third party to assume the obligation. The estimated costs to fulfill the obligation were based on the near-term projected cost structure for subscription and professional services. As a result, we recorded an adjustment to reduce Marketo’s carrying value of deferred revenue to $74.8 million , which represents our estimate of the fair value of the contractual obligations assumed. Taxes — As part of our accounting for the Marketo acquisition, a portion of the overall purchase price was allocated to goodwill and acquired intangible assets. Amortization expense associated with acquired intangible assets is not deductible for tax purposes. Thus, approximately $348.8 million , included in the net liabilities assumed, was established as a deferred tax liability for the future amortization of the intangible assets, and was partially offset by other tax assets of $166.2 million , which primarily consist of net operating loss carryforwards. Any impairment charges made in the future associated with goodwill will not be tax deductible and will result in an increased effective income tax rate in the quarter the impairment is recorded. Unaudited Pro Forma Results The financial information in the table below summarizes the combined results of operations of Adobe and Marketo, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 3, 2016 or of results that may occur in the future. The following unaudited pro forma financial information for fiscal 2018 and 2017 combines the historical results for Adobe for the years ended November 30, 2018 and December 1, 2017 and the historical results of Marketo for the period January 1, 2018 through October 31, 2018 and the year ended December 31, 2017, respectively: (in thousands) 2018 2017 Net revenues $ 9,338,790 $ 7,568,713 Net income $ 2,362,238 $ 1,404,864 Magento On June 18, 2018 , we completed our acquisition of Magento Commerce (“Magento”), a privately held commerce platform company, and integrated it into our Digital Experience reportable segment. The table below represents the final purchase price allocation to the acquired net assets of Magento based on their estimated fair values as of June 18, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to net liabilities assumed and their related impact to goodwill. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 208,000 8 Purchased technology 84,200 5 In-process research and development (1) 39,100 N/A Trademarks 21,100 3 Other intangibles 43,400 3 Total identifiable intangible assets 395,800 Net liabilities assumed (68,182 ) N/A Goodwill (2) 1,316,983 N/A Total purchase price $ 1,644,601 _________________________________________ (1) Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Subsequent to the acquisition, the associated in-process research and development efforts for certain projects were completed and the rest were abandoned. The respective related amortization and write-off were each immaterial. (2) Non-deductible for tax purposes. Pro forma financial information has not been presented for the Magento acquisition as the impact to our Consolidated Financial Statements was not material. TubeMogul On December 19, 2016 , we completed our acquisition of TubeMogul, a publicly held video advertising platform company, and integrated it into our Digital Experience 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. Pro forma financial information has not been presented for the TubeMogul acquisition as the impact to our Consolidated Financial Statements was not material. Other We also completed other immaterial business acquisitions during the fiscal years presented. Pro forma information has not been presented for these 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 |
Nov. 29, 2019 | |
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 all highly liquid debt investments with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are determined using the specific identification method and 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. Cash, cash equivalents and short-term investments consisted of the following as of November 29, 2019 : (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 466,941 $ — $ — $ 466,941 Cash equivalents: Corporate debt securities 45,703 2 (1 ) 45,704 Money market mutual funds 2,049,057 — — 2,049,057 Time deposits 88,519 — — 88,519 Total cash equivalents 2,183,279 2 (1 ) 2,183,280 Total cash and cash equivalents 2,650,220 2 (1 ) 2,650,221 Short-term fixed income securities: Asset-backed securities 88,584 146 (9 ) 88,721 Corporate debt securities 1,408,332 4,251 (252 ) 1,412,331 Municipal securities 17,642 67 — 17,709 U.S. Treasury securities 7,992 2 — 7,994 Total short-term investments 1,522,550 4,466 (261 ) 1,526,755 Total cash, cash equivalents and short-term investments $ 4,172,770 $ 4,468 $ (262 ) $ 4,176,976 Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2018 : (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 368,564 $ — $ — $ 368,564 Cash equivalents: Money market mutual funds 1,234,188 — — 1,234,188 Time deposits 40,023 — — 40,023 Total cash equivalents 1,274,211 — — 1,274,211 Total cash and cash equivalents 1,642,775 — — 1,642,775 Short-term fixed income securities: Asset-backed securities 41,875 — (367 ) 41,508 Corporate debt securities 1,546,860 44 (24,696 ) 1,522,208 Foreign government securities 4,179 — (24 ) 4,155 Municipal securities 18,601 1 (286 ) 18,316 Total short-term investments 1,611,515 45 (25,373 ) 1,586,187 Total cash, cash equivalents and short-term investments $ 3,254,290 $ 45 $ (25,373 ) $ 3,228,962 See Note 5 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 November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 235,155 $ (183 ) $ 538,109 $ (7,966 ) Asset-backed securities 6,651 (5 ) 6,696 (54 ) Municipal securities 3,305 — 6,599 (81 ) Total $ 245,111 $ (188 ) $ 551,404 $ (8,101 ) There w e re 115 securities and 369 securities in an unrealized loss position for less than twelve months at November 29, 2019 and at November 30, 2018 , 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 November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 44,300 $ (70 ) $ 969,701 $ (16,730 ) Asset-backed securities 6,754 (4 ) 34,812 (313 ) Municipal securities — — 11,532 (205 ) Foreign government securities — — 4,154 (24 ) Total $ 51,054 $ (74 ) $ 1,020,199 $ (17,272 ) There were 38 securities and 577 securities in an unrealized loss position for more than twelve months at November 29, 2019 and at November 30, 2018 , respectively. The following table summarizes the cost and estimated fair value of the fixed income securities classified as short-term investments based on stated effective maturities as of November 29, 2019 : (in thousands) Amortized Cost Estimated Fair Value Due within one year $ 928,472 $ 929,616 Due between one and two years 394,436 395,917 Due between two and three years 179,468 180,867 Due after three years 20,174 20,355 Total $ 1,522,550 $ 1,526,755 We review our debt 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. The portion of the write-down related to credit loss would be recorded to interest and other income (expense), net in our Consolidated Statements of Income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. During fiscal 2019 , 2018 and 2017 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Nov. 29, 2019 | |
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 November 29, 2019 . The fair value of our financial assets and liabilities at November 29, 2019 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 debt securities $ 45,704 $ — $ 45,704 $ — Money market mutual funds 2,049,057 2,049,057 — — Time deposits 88,519 88,519 — — Short-term investments: Asset-backed securities 88,721 — 88,721 — Corporate debt securities 1,412,331 — 1,412,331 — Municipal securities 17,709 — 17,709 — U.S. Treasury securities 7,994 — 7,994 — Prepaid expenses and other current assets: Foreign currency derivatives 28,829 — 28,829 — Other assets: Deferred compensation plan assets 93,776 4,348 89,428 — Total assets $ 3,832,640 $ 2,141,924 $ 1,690,716 $ — Liabilities: Accrued expenses: Treasury lock derivatives $ 29,652 $ — $ 29,652 $ — Foreign currency derivatives 2,671 — 2,671 — Interest rate swap derivatives 208 — 208 — Total liabilities $ 32,531 $ — $ 32,531 $ — The fair value of our financial assets and liabilities at November 30, 2018 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 $ 1,234,188 $ 1,234,188 $ — $ — Time deposits 40,023 40,023 — — Short-term investments: Asset-backed securities 41,508 — 41,508 — Corporate debt securities 1,522,208 — 1,522,208 — Foreign government securities 4,155 — 4,155 — Municipal securities 18,316 — 18,316 — Prepaid expenses and other current assets: Foreign currency derivatives 44,259 — 44,259 — Other assets: Deferred compensation plan assets 68,988 3,895 65,093 — Total assets $ 2,973,645 $ 1,278,106 $ 1,695,539 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 816 $ — $ 816 $ — Other liabilities: Interest rate swap derivatives 9,744 — 9,744 — Total liabilities $ 10,560 $ — $ 10,560 $ — See Note 4 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 A+. 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, Treasury lock 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 The fair value of our senior notes was $1.96 billion as of November 29, 2019 , based on observable market prices in less active markets and categorized as Level 2. See Note 17 for further details regarding our debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Nov. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS We may use derivatives to partially offset our business exposure to foreign currency and interest rate risk on expected future cash flows, and certain existing assets and liabilities. We do not use any of our derivative instruments for trading purposes. We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We do not offset fair value amounts recognized for derivative instruments under master netting arrangements. We also enter into collateral security agreements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. Collateral posted is included in prepaid expenses and other current assets and collateral received is included in accrued expenses on our Consolidated Balance Sheets. Cash Flow Hedges 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 a portion of our forecasted foreign currency denominated revenue. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months . As of November 29, 2019 , total notional amounts of outstanding cash flow hedges were $1.20 billion , hedging exposures denominated in Euros, British Pounds and Japanese Yen. In June 2019, in anticipation of refinancing our $2.25 billion Term Loan due April 30, 2020 and $900 million notes payable due February 1, 2020, we entered into Treasury lock agreements with large financial institutions which fixed benchmark U.S. Treasury rates for an aggregate notional amount of $1 billion of our future debt issuance. These derivative instruments hedge the impact of changes in the benchmark interest rate to future interest payments and will be terminated upon closing of our anticipated refinancing. Upon refinancing and termination of the derivative instruments, their fair value will be amortized over the term of our new debt to interest expense. 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 fair 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 affects earnings, we reclassify the related gain or loss on the foreign currency and Treasury lock cash flow hedges to revenue and interest expense, respectively. 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 the same income statement line item as the hedged item. 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 the same income statement line item as the hedged item. We evaluate hedge effectiveness at the inception of the hedge prospectively, and on an ongoing basis both retrospectively and prospectively. We record any ineffective portion of the hedging instruments in interest and other income (expense), net on our Consolidated Statements of Income. The net gain or loss recognized in interest and other income (expense), net due to hedge ineffectiveness was insignificant for all fiscal years presented. Effective in the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income (loss). Prior to this, we recorded the time value of purchased contracts in interest and other income (expense), net in our Consolidated Statements of Income. The impact of the de-designation of our hedges due to the change in methodology in the third quarter of fiscal 2019 was immaterial. For fiscal 2019 , 2018 , and 2017 , there were no net gains or losses recognized in income relating to hedges of forecasted transactions that did not occur. Fair Value Hedges 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 London Interbank Offered Rate (“LIBOR”). Under the terms of the swaps, we 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 receive 4.75% fixed rate interest from the swap counterparties. See Note 17 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 interest rate. 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. As of November 29, 2019 , the fair value of the interest rate swaps is recognized in accrued expenses on our Consolidated Balance Sheets with a corresponding offset to current debt. Non-Designated Hedges Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets and liabilities denominated in non-functional currencies. The changes in fair value of these contracts is recorded to interest and other income (expense), net in our Consolidated Statements of Income. Changes in the fair value of the underlying assets and liabilities associated with the hedged risk are generally offset by the changes in the fair value of the related contracts. As of November 29, 2019 , total notional amounts of outstanding foreign currency forward contracts were $702.4 million , primarily hedging exposures denominated in Euros, British Pounds, Japanese Yen and Indian Rupees. As of November 30, 2018 , total notional amounts of outstanding contracts were $427.9 million , primarily hedging exposures denominated in Euros, British Pounds, Japanese Yen and Indian Rupees. At November 29, 2019 and November 30, 2018 , the outstanding balance sheet hedging derivatives had maturities of 180 days or less. The fair value of derivative instruments on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 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) $ 25,605 $ — $ 40,191 $ — Treasury lock (1) — 29,652 — — Interest rate swap (3) — 208 — 9,744 Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 3,224 2,671 4,068 816 Total derivatives $ 28,829 $ 32,531 $ 44,259 $ 10,560 _________________________________________ (1) Fair value asset derivatives included in prepaid expenses and other current assets and fair value liability derivatives included in accrued expenses on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next 18 months , of which $13.2 million is expected within the next 12 months. (3) Included in accrued expenses and other liabilities on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018 , respectively. The effects of foreign currency derivative instruments designated as cash flow hedges and foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Treasury Lock 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 OCI, net of tax (1) $ 16,526 $ — $ (22,684 ) $ 74,080 $ — $ 6,917 $ — Net gain (loss) reclassified from accumulated OCI into income, net of tax (2) (4) 39,111 — (1,228 ) 48,647 — 32,852 — Net gain (loss) recognized in income (3) (4) (24,269 ) — — (41,179 ) — (30,243 ) — Derivatives not designated as hedging relationships: Net gain (loss) recognized in revenue 761 — — — — — — Net gain (loss) recognized in interest and other income (expense), net $ — $ 4,229 $ — $ — $ 1,529 $ — $ 6,586 _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion of the foreign currency and Treasury lock cash flow hedges classified as revenue and interest expense, respectively. (3) Amount excluded from effectiveness testing and ineffective portion classified in interest and other income (expense), net. (4) Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income. Net gains (losses) recognized in interest and other income (expense), net relating to foreign currency derivatives not designated as hedging instruments for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ (14,420 ) $ 882 $ (6,142 ) Net unrealized gain (loss) recognized in other income 8,050 (3,843 ) (907 ) (6,370 ) (2,961 ) (7,049 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain (loss) recognized in other income 6,928 (2,042 ) 5,415 Net unrealized gain (loss) recognized in other income (2,699 ) 3,571 1,171 4,229 1,529 6,586 Net gain (loss) recognized in interest and other income (expense), net $ (2,141 ) $ (1,432 ) $ (463 ) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Nov. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following as of November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Computers and other equipment $ 1,424,368 $ 1,239,033 Buildings 482,797 485,024 Building improvements 307,396 285,564 Leasehold improvements 246,244 181,990 Land 144,871 145,065 Furniture and fixtures 143,739 121,206 Capital projects in-progress 112,232 23,026 Total 2,861,647 2,480,908 Less accumulated depreciation and amortization (1,568,632 ) (1,405,836 ) Property and equipment, net $ 1,293,015 $ 1,075,072 Depreciation and amortization expense of property and equipment for fiscal 2019 , 2018 and 2017 was $173.1 million , $157.1 million and $156.9 million , respectively. Property and equipment, net, by geographic area as of November 29, 2019 and November 30, 2018 was as follows: (in thousands) 2019 2018 Americas: United States $ 1,126,406 $ 882,145 Other 2,735 30,475 Total Americas 1,129,141 912,620 EMEA 54,394 51,033 APAC 109,480 111,419 Property and equipment, net $ 1,293,015 $ 1,075,072 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Nov. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill by reportable segment and activity for the years ended November 29, 2019 and November 30, 2018 was as follows: (in thousands) 2017 Acquisitions Other (1) 2018 Acquisitions Other (1) 2019 Digital Media $ 2,724,747 $ 15,247 $ (2,481 ) $ 2,737,513 $ 125,899 $ (914 ) $ 2,862,498 Digital Experience 2,838,390 4,775,969 (29,246 ) 7,585,113 270 (15,103 ) 7,570,280 Publishing 258,424 — (2 ) 258,422 — (1 ) 258,421 Goodwill $ 5,821,561 $ 4,791,216 $ (31,729 ) $ 10,581,048 $ 126,169 $ (16,018 ) $ 10,691,199 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. Other intangibles, net, by reportable segment as of November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 Digital Media $ 79,483 $ 68,280 Digital Experience 1,640,925 2,000,718 Publishing 157 3 Other intangibles, net $ 1,720,565 $ 2,069,001 Certain goodwill and other intangibles were misclassified between Digital Media and Digital Experience in the prior year, which have been recast in the above tables. The impact to our prior year disclosures was immaterial and there was no impact to the Consolidated Financial Statements resulting from the change in classification. Other intangibles, net, as of November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer contracts and relationships $ 1,219,029 $ (436,545 ) $ 782,484 $ 1,329,432 $ (416,176 ) $ 913,256 Purchased technology 759,111 (223,115 ) 535,996 750,286 (118,812 ) 631,474 Trademarks 384,300 (73,546 ) 310,754 384,855 (25,968 ) 358,887 Backlog 143,400 (75,570 ) 67,830 147,300 (13,299 ) 134,001 Acquired rights to use technology 59,524 (46,823 ) 12,701 58,966 (48,770 ) 10,196 Other 23,745 (12,945 ) 10,800 51,096 (29,909 ) 21,187 Other intangibles, net $ 2,589,109 $ (868,544 ) $ 1,720,565 $ 2,721,935 $ (652,934 ) $ 2,069,001 In fiscal 2019 , and 2018 , certain intangibles associated with our acquisitions in prior years became fully amortized and were removed from the Consolidated Balance Sheets. Amortization expense related to other intangibles was $402.3 million , $182.6 million and $153.6 million for fiscal 2019 , 2018 and 2017 respectively. Of these amounts, $227.0 million , $91.3 million and $76.1 million were included in cost of sales for fiscal 2019 , 2018 and 2017 respectively. Other intangibles are amortized over their estimated useful lives of 1 to 15 years. As of November 29, 2019 , we expect the estimated aggregate amortization expense for each of the five succeeding fiscal years to be as follows: (in thousands) Other Intangibles 2020 $ 364,683 2021 254,921 2022 222,810 2023 214,188 2024 201,953 Thereafter 462,010 Total expected amortization expense $ 1,720,565 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Nov. 29, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses as of November 29, 2019 and November 30, 2018 consisted of the following: (in thousands) 2019 2018 Accrued compensation and benefits $ 317,897 $ 313,874 Accrued bonuses 222,333 216,007 Accrued media costs 117,591 124,849 Accrued building rent 98,570 61,544 Taxes payable 82,988 57,525 Accrued corporate marketing 79,937 66,186 Sales and marketing allowances 74,163 44,968 Royalties payable 61,938 51,529 Fair value of derivatives 32,531 816 Accrued interest expense 28,878 29,481 Other 281,722 196,406 Accrued expenses $ 1,398,548 $ 1,163,185 Accrued media costs primarily relate to our advertising platform offerings. 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 and sales returns reserves. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes for fiscal 2019 , 2018 and 2017 consisted of the following: (in thousands) 2019 2018 2017 Domestic $ 437,603 $ 542,948 $ 1,056,156 Foreign 2,767,138 2,250,928 1,081,485 Income before income taxes $ 3,204,741 $ 2,793,876 $ 2,137,641 The provision for income taxes for fiscal 2019 , 2018 and 2017 consisted of the following: (in thousands) 2019 2018 2017 Current: United States federal $ 6,563 $ 501,272 $ 298,802 Foreign 211,174 140,308 60,962 State and local 30,893 28,612 33,578 Total current 248,630 670,192 393,342 Deferred: United States federal 22,528 (466,113 ) 48,905 Foreign (11,675 ) (9,734 ) (4,242 ) State and local (6,200 ) 8,757 5,682 Total deferred 4,653 (467,090 ) 50,345 Provision for income taxes $ 253,283 $ 203,102 $ 443,687 U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which significantly changed existing U.S. tax law and includes many provisions applicable to us, such as reducing the U.S. federal statutory tax rate, imposing a one-time transition tax on deemed repatriation of deferred foreign income and adopting a territorial tax system. The Tax Act reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal 2018, our blended U.S. federal statutory tax rate was 22.2% . This was the result of using the tax rate of 35% for the first month of fiscal 2018 and the reduced tax rate of 21% for the remaining eleven months of fiscal 2018. The Tax Act also required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income, in each case reduced by certain foreign tax credits. The Tax Act also included a provision to tax global intangible low-taxed income of foreign subsidiaries, a special tax deduction for foreign-derived intangible income and a base erosion anti-abuse tax measure that may tax certain payments between a U.S. corporation and its subsidiaries. These additional provisions of the Tax Act were effective for us beginning December 1, 2018. During fiscal 2018, we recorded tax charges for the impact of the Tax Act using the current available information and technical guidance on the interpretations of the Tax Act. The accounting analysis was finalized based on the guidance, interpretations and data available as of November 30, 2018. Certain international provisions introduced in the Tax Act are effective for us starting in fiscal 2019. As part of these provisions, an accounting policy election is available to either account for the tax effects of certain taxes in the period that is subject to such taxes or to provide deferred taxes for book and tax basis differences that upon reversal may be subject to such taxes. We elected to account for the tax effects of these provisions in the period that it is subject to such tax. Reconciliation of Provision for Income Taxes Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 21% in 2019, 22.2% in 2018 and 35% in 2017 by income before income taxes) as a result of the following: (in thousands) 2019 2018 2017 Computed “expected” tax expense $ 672,996 $ 620,240 $ 748,174 State tax expense, net of federal benefit 23,510 25,214 25,131 Tax credits (99,772 ) (110,849 ) (38,000 ) Effects of non-U.S. operations (224,214 ) (384,393 ) (215,490 ) Stock-based compensation, net of tax deduction (85,944 ) (95,372 ) (42,512 ) Resolution of income tax examinations (39,291 ) (42,432 ) (31,358 ) Domestic manufacturing deduction benefit — (13,098 ) (32,200 ) Impacts of the U.S. Tax Act 2,955 185,997 — Tax charge for licensing acquired company technology to foreign subsidiaries — — 24,771 Other 3,043 17,795 5,171 Provision for income taxes $ 253,283 $ 203,102 $ 443,687 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 November 29, 2019 and November 30, 2018 are presented below: (in thousands) 2019 2018 Deferred tax assets: Acquired technology $ 4,568 $ 9,561 Reserves and accruals 53,796 59,100 Deferred revenue 12,036 37,690 Stock-based compensation 106,911 89,240 Net operating loss carryforwards of acquired companies 137,151 209,445 Credit carryforwards 252,074 173,748 Capitalized expenses 44,912 19,074 Benefits relating to tax positions 47,458 51,965 Other 32,794 37,160 Total gross deferred tax assets 691,700 686,983 Deferred tax asset valuation allowance (244,432 ) (174,496 ) Total deferred tax assets 447,268 512,487 Deferred tax liabilities: Depreciation and amortization 36,458 40,425 Undistributed earnings of foreign subsidiaries 51,883 17,556 Prepaid expenses 86,279 — Acquired intangible assets 413,146 501,208 Total deferred tax liabilities 587,766 559,189 Net deferred tax liabilities $ 140,498 $ 46,702 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 2019 and 2018 are amounts related to various acquisitions. In assessing the realizability of deferred tax assets, management determined that it is not more likely than not that we will have sufficient taxable income in certain states and foreign jurisdictions to fully utilize available tax credits and other attributes. 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 or are exempted from taxation as a result of the new territorial tax system. To the extent that the foreign earnings previously treated as permanently reinvested are repatriated, the related U.S. tax liability may be reduced by any foreign income taxes paid on these earnings. As of November 29, 2019 , the cumulative amount of foreign earnings upon which U.S. income taxes have not been provided, and the corresponding unrecognized deferred tax liability, is not material. As of November 29, 2019 , we have net operating loss carryforwards of approximately $421.6 million for federal, $374.5 million for state and $82.6 million for foreign. We also have federal, state and foreign tax credit carryforwards of approximately $44.4 million , $243.8 million and $15.1 million , respectively. The net operating loss carryforward assets and tax credits will expire in various years from fiscal 2020 through 2038 . The majority of the state tax credit carryforwards and a portion of the federal net operating loss 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 such assets and credits is expected to be fully realized. As of November 29, 2019 , a valuation allowance of $244.4 million has been established for certain deferred tax assets related to certain federal, state and foreign assets. For fiscal 2019 , the total change in the valuation allowance was $69.9 million . Accounting for Uncertainty in Income Taxes During fiscal 2019 and 2018 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows: (in thousands) 2019 2018 Beginning balance $ 196,152 $ 172,945 Gross increases in unrecognized tax benefits – prior year tax positions 14,850 16,191 Gross decreases in unrecognized tax benefits – prior year tax positions (2,282 ) (4,000 ) Gross increases in unrecognized tax benefits – current year tax positions 18,526 60,721 Gross decreases in unrecognized tax benefits – current year tax positions (2,879 ) — Settlements with taxing authorities (230 ) — Lapse of statute of limitations (49,813 ) (45,922 ) Foreign exchange gains and losses (987 ) (3,783 ) Ending balance $ 173,337 $ 196,152 The combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $25.1 million and $24.6 million for fiscal 2019 and 2018 , respectively. These amounts were included in long-term 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 U.S. Internal Revenue Service (“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 , 2015 and 2016 , 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 sheet classification of our tax assets and liabilities. 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 $20 million |
Benefit Plans
Benefit Plans | 12 Months Ended |
Nov. 29, 2019 | |
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 Inc. 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 IRS annual contribution limits. In fiscal 2019 , we matched 50% of the first 6% of the employee’s eligible compensation. We contributed $51.7 million , $41.0 million and $34.3 million in fiscal 2019 , 2018 and 2017 , 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 Inc. 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 awards, 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 or vests. For cash benefit elections, distributions are made in cash and in the form of a lump sum, or five, ten, or fifteen-year annual installments. For stock benefit elections, distributions are settled in stock and in the form of a lump sum payment only. Beginning January 1, 2020, our updated Deferred Compensation Plan will no longer allow participants, except our Board of Directors, to make stock benefit elections. As of November 29, 2019 and November 30, 2018 , the invested amounts under the Deferred Compensation Plan total $93.8 million and $69.0 million , respectively and were recorded as other assets on our Consolidated Balance Sheets. As of November 29, 2019 and November 30, 2018 , $108.8 million and $84.0 million , respectively, were recorded as long-term liabilities to recognize undistributed deferred compensation due to employees. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Nov. 29, 2019 | |
Share-based Payment Arrangement [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 Units Prior to April 2019, we granted restricted stock units and performance awards to eligible employees under our 2003 Equity Incentive Plan, as amended (“2003 Plan”). In April 2019, our stockholders approved the 2019 Equity Incentive Plan (“2019 Plan”) which replaced the 2003 Plan. Beginning January 2019, restricted stock units granted as part of our annual review process or for promotions vest over four years. Restricted stock units granted as part of our annual review process or for promotions with grant dates prior to January 2019 continue to vest 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 which cliff-vest after three years. As of November 29, 2019 , we had reserved 46.0 million shares of common stock for issuance under our 2019 Plan and had 44.1 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 termination by the Board of Directors or the date on which all of the shares available for issuance under the plan have been issued. As of November 29, 2019 , we had reserved 93.0 million shares of our common stock for issuance under the ESPP and approximately 3.8 million shares remain available for future issuance. Performance Share Programs Our 2019 , 2018 and 2017 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, 2018, the Executive Compensation Committee approved the 2019 Performance Share Program, the terms of which are similar to prior year performance share programs as discussed above. As of November 29, 2019 , the shares awarded under our 2019 , 2018 and 2017 Performance Share Programs remain outstanding and are yet to be achieved. Issuance of Shares Upon vesting of restricted stock units and performance shares, purchases of shares under the ESPP and exercise of stock options, 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 14 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: 2019 2018 2017 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 30% - 35% 26% - 29% 22% - 27% Risk free interest rate 1.78% - 2.47% 1.54% - 2.52% 0.62% - 1.41% Summary of Restricted Stock Units Restricted stock unit activity for fiscal 2019 , 2018 and 2017 was as follows: (in thousands) 2019 2018 2017 Beginning outstanding balance 8,668 9,304 8,316 Awarded 4,598 4,012 5,018 Released (3,847 ) (3,988 ) (3,859 ) Forfeited (785 ) (660 ) (766 ) Increase due to acquisition — — 595 Ending outstanding balance 8,634 8,668 9,304 The weighted average grant date fair values of restricted stock units granted during fiscal 2019 , 2018 and 2017 were $253.91 , $208.73 and $120.33 , respectively. The total fair value of restricted stock units vested during fiscal 2019 , 2018 and 2017 was $969.6 million , $837.3 million and $472.0 million , respectively. Information regarding restricted stock units outstanding at November 29, 2019 , November 30, 2018 and December 1, 2017 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2019 Restricted stock units outstanding 8,634 1.12 $ 2,672.6 Restricted stock units expected to vest 7,987 1.05 $ 2,472.2 2018 Restricted stock units outstanding 8,668 1.06 $ 2,174.7 Restricted stock units expected to vest 8,049 1.01 $ 2,019.5 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units expected to vest 8,608 1.05 $ 1,545.3 _________________________________________ (*) 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 November 29, 2019 , November 30, 2018 and December 1, 2017 were $309.53 , $250.89 and $179.52 , respectively. Summary of Performance Shares Performance share activity for fiscal 2019 , 2018 and 2017 was as follows: (in thousands) 2019 2018 2017 Shares Granted (1) Maximum Shares Eligible to Receive Shares Granted (2) Maximum Shares Eligible to Receive Shares (3) Maximum Beginning outstanding balance 1,148 2,296 1,534 3,068 1,630 3,261 Awarded 722 614 837 628 1,082 1,040 Achieved (830 ) (830 ) (1,050 ) (1,053 ) (1,135 ) (1,147 ) Forfeited (82 ) (164 ) (173 ) (347 ) (43 ) (86 ) Ending outstanding balance 958 1,916 1,148 2,296 1,534 3,068 _________________________________________ (1) Shares awarded during fiscal 2019 include 0.4 million additional shares awarded for the final achievement of the 2016 Performance Share Program which was certified in the first quarter of fiscal 2019. The remaining awarded shares were for the 2019 Performance Share Program. Shares achieved during fiscal 2019 resulted from 200% achievement of target for the 2016 Performance Share Program. (2) Shares awarded during fiscal 2018 include 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share Program which was certified in the first quarter of fiscal 2018. The remaining awarded shares were for the 2018 Performance Share Program. Shares achieved during fiscal 2018 resulted from 200% achievement of target for the 2015 Performance Share Program. (3) Shares awarded during fiscal 2017 include 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share Program which was certified in the first quarter of fiscal 2017. The remaining awarded shares were for the 2017 Performance Share Program. Shares achieved during fiscal 2017 resulted from 198% achievement of target for the 2014 Performance Share Program. The total fair value of performance awards vested during fiscal 2019 , 2018 and 2017 was $203.8 million , $208.2 million and $127.4 million , respectively. Summary of Employee Stock Purchase Plan Shares The weighted average subscription date fair value of shares under the ESPP during fiscal 2019 , 2018 and 2017 were $72.98 , $53.12 and $29.86 , respectively. Employees purchased 1.5 million shares at an average price of $150.55 , 1.8 million shares at an average price of $104.94 , and 1.9 million shares at an average price of $77.63 for fiscal 2019 , 2018 and 2017 , respectively. The intrinsic value of shares purchased during fiscal 2019 , 2018 and 2017 was $178.8 million , $198.9 million and $97.7 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. 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 and 2019 Plans provide 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. The initial equity grant to new non-employee directors and annual equity grants to existing non-employee directors are restricted stock unit awards, each grant 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 of initial equity grants 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. Restricted stock units granted to directors for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Annual equity grants to existing directors 10 11 18 Initial equity grants to new directors 1 1 — 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 also recognize the estimated compensation cost of performance shares, net of estimated forfeitures, on a straight-line basis over the requisite performance period or service period of the entire award, whichever is longer. Our performance share 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 November 29, 2019 , there was $1.36 billion of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards and purchase rights which will be recognized over a weighted average period of 1.9 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 2019 , 2018 and 2017 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) Restricted Stock Units and Performance Share Awards 2019 $ 22,822 $ 18,535 $ 338,483 $ 206,371 $ 98,886 $ 685,097 2018 $ 17,515 $ 12,111 $ 253,078 $ 178,548 $ 77,462 $ 538,714 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 Stock Purchase Rights and Options 2019 $ 5,823 $ 7,271 $ 36,663 $ 42,405 $ 10,446 $ 102,608 2018 $ 4,102 $ 8,286 $ 23,918 $ 27,252 $ 7,290 $ 70,848 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 _________________________________________ (1) During fiscal 2019 , 2018 and 2017 , we recorded tax benefits related to stock-based compensation costs of $248.4 million , $222.4 million and $153.2 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended |
Nov. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss) and activity, net of related taxes, for fiscal 2019 were as follows: (in thousands) November 30, Increase / Decrease Reclassification Adjustments November 29, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 44 $ 4,594 $ (171 ) $ 4,467 Unrealized losses on available-for-sale securities (25,374 ) 24,815 295 (264 ) Total net unrealized gains / losses on available-for-sale securities (25,330 ) 29,409 124 (1 ) 4,203 Net unrealized gains / losses on derivative instruments designated as hedging instruments 21,732 294 (44,334 ) (2 ) (22,308 ) Cumulative foreign currency translation adjustments (144,532 ) (25,397 ) — (169,929 ) Total accumulated other comprehensive income (loss), net of taxes $ (148,130 ) $ 4,306 $ (44,210 ) $ (188,034 ) _________________________________________ (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 foreign currency hedges are classified in revenue and reclassification adjustments for gains / losses on Treasury lock hedges are classified in interest expense. The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Available-for-sale securities: Unrealized gains / losses $ — $ — $ 663 Reclassification adjustments — — (491 ) Subtotal available-for-sale securities — — 172 Derivatives designated as hedging instruments: Unrealized gains / losses 6,968 — — Reclassification adjustments (383 ) (1,946 ) (732 ) Subtotal derivatives designated as hedging instruments 6,585 (1,946 ) (732 ) Foreign currency translation adjustments — (1,742 ) 3,005 Total taxes, other comprehensive income (loss) $ 6,585 $ (3,688 ) $ 2,445 |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Nov. 29, 2019 | |
Stock Repurchase Program [Abstract] | |
STOCK REPURCHASE PROGRAM | 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 May 2018, our Board of Directors granted us an authority to repurchase up to $8 billion in common stock through the end of fiscal 2021. During fiscal 2019 , 2018 and 2017 , we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $2.75 billion , $2.05 billion , and $1.10 billion , 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 the foregone return on our cash prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us. The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount. We repurchased approximately 9.9 million shares at an average price of $270.23 per share in fiscal 2019 , 8.7 million shares at an average price of $230.43 per share in fiscal 2018 , and 8.2 million shares at an average price of $134.20 per share in fiscal 2017 . For fiscal 2019 , 2018 and 2017 , the prepayments were classified as treasury stock on our Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by November 29, 2019 , November 30, 2018 and December 1, 2017 were excluded from the computation of earnings per share. As of November 29, 2019 , $229.2 million of prepayments remained under the agreement. Subsequent to November 29, 2019 , we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $850 million . This amount will be classified as treasury stock on our Consolidated Balance Sheets. Upon completion of the $850 million stock repurchase agreement, $4.25 billion |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Nov. 29, 2019 | |
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, purchase rights, performance 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 2019 , 2018 and 2017 : (in thousands, except per share data) 2019 2018 2017 Net income $ 2,951,458 $ 2,590,774 $ 1,693,954 Shares used to compute basic net income per share 486,291 490,564 493,632 Dilutive potential common shares: Restricted stock units and performance share awards 4,875 7,142 7,161 Stock purchase rights and options 406 137 330 Shares used to compute diluted net income per share 491,572 497,843 501,123 Basic net income per share $ 6.07 $ 5.28 $ 3.43 Diluted net income per share $ 6.00 $ 5.20 $ 3.38 Anti-dilutive potential common shares (1) 175 209 141 _________________________________________ (1) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 29, 2019 | |
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 $170.5 million , $137.2 million and $115.4 million in fiscal 2019 , 2018 and 2017 , respectively. Our sublease income was immaterial for all periods presented. 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 November 29, 2019 : (in thousands) Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2020 $ 545,042 $ 98,200 $ 9,523 2021 407,528 91,866 9,000 2022 528,266 81,493 6,362 2023 555,658 68,539 2,327 2024 — 60,691 — Thereafter — 337,903 — Total $ 2,036,494 $ 738,692 $ 27,212 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 $153.7 million , $119.1 million and $100.9 million in fiscal 2019 , 2018 and 2017 , respectively. Indemnifications In the ordinary course of business, we provide indemnifications of varying scope to customers and channel partners 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 |
Nov. 29, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our debt as of November 29, 2019 and November 30, 2018 consisted of the following: (in thousands) 2019 2018 Current debt: Term loan $ 2,249,784 $ — Notes 899,767 — Fair value of interest rate swap (208 ) — Current debt 3,149,343 — Long-term debt: Term loan — 2,248,427 Notes 988,924 1,886,117 Fair value of interest rate swap — (9,744 ) Long-term debt 988,924 4,124,800 Total carrying value of debt $ 4,138,267 $ 4,124,800 Term Loan Credit Agreement In October 2018, we entered into a credit agreement providing for an up to $2.25 billion senior unsecured term loan for the purpose of partially funding the purchase price for our acquisition of Marketo and the related fees and expenses incurred in connection with the acquisition. The Term Loan funds were received on October 31, 2018 upon closing of the acquisition and will mature 18 months following the initial funding date. In addition, we incurred issuance costs of $0.7 million which are amortized to interest expense over the term using the straight-line method. The Term Loan ranks equally with our other unsecured and unsubordinated indebtedness. There are no scheduled principal amortization payments prior to maturity and the Term Loan may be prepaid and terminated at our election at any time without penalty or premium. At our election, the Term Loan will bear interest at either (i) LIBOR plus a margin, based on our debt ratings, ranging from 0.500% to 1.000% or (ii) a base rate plus a margin, based on our debt ratings, ranging from 0.040% to 0.110% . Interest is payable periodically, in arrears, at the end of each interest period we elect. During fiscal 2019 , we made interest payments on our Term Loan totaling $69.9 million . The Term Loan credit agreement contains customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions in favor of the lenders similar to those contained in the Revolving Credit Agreement, including the financial covenant. As of November 29, 2019 , we were in compliance with all covenants. During the second quarter of fiscal 2019, we reclassified the Term Loan as current debt in our Consolidated Balance Sheets. As of November 29, 2019 , the carrying value of the Term Loan was $2.25 billion which is net of debt issuance costs. We intend to refinance the Term Loan on or before the due date. Senior Notes In February 2010, we issued $900 million of 4.75% senior notes due February 1, 2020 . Our proceeds were approximately $894.5 million which is 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 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. The fair value of the interest rate swaps is included in the carrying value of our debt in the Consolidated Balance Sheets. See Note 6 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 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 . During the first quarter of fiscal 2019, we reclassified the 2020 Notes as current debt in our Consolidated Balance Sheets. As of November 29, 2019 , the carrying value of the 2020 Notes was $899.6 million which includes the fair value of the interest rate swap and is net of debt issuance costs. We intend to refinance the 2020 Notes on or before the due date. As of November 29, 2019 , our outstanding notes payable consist of the 2020 Notes and 2025 Notes (the “Notes”) with a total carrying value of $1.89 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 $1.96 billion as of November 29, 2019 . The Notes rank equally with our other unsecured and unsubordinated indebtedness. 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 November 29, 2019 , we were in compliance with all of the covenants. During fiscal 2019 , we made semi-annual interest payments on our 2020 and 2025 Notes totaling $75.3 million . In June 2019, in anticipation of refinancing our Term Loan and 2020 Notes, we entered into Treasury lock agreements with large financial institutions which fixed benchmark U.S. Treasury rates for an aggregate notional amount of $1 billion of our future debt issuance. These derivative instruments hedge the impact of changes in the benchmark interest rate to future interest payments and will be terminated upon debt issuance. These derivative instruments were designated as cash flow hedges. See Note 6 for further details regarding our Treasury lock agreements. Revolving Credit Agreement In October 2018, we entered into a credit agreement (“Revolving Credit Agreement”), providing for a five-year $1 billion senior unsecured revolving credit facility and incurred issuance costs of $0.8 million which are amortized to interest expense over the term using the straight-line method. The Revolving Credit Agreement provides for loans to Adobe and certain of its subsidiaries that may be designated from time to time as additional borrowers. Pursuant to the terms of the Revolving Credit Agreement, we may, subject to the agreement of lenders to provide additional commitments, obtain up to an additional $500 million in commitments, for a maximum aggregate commitment of $1.5 billion . At our election, loans under the Revolving Credit Agreement will bear interest at either (i) LIBOR plus a margin, based on our debt ratings, ranging from 0.585% to 1.015% or (ii) a base rate, which is defined as the highest of (a) the agent’s prime rate, (b) the federal funds effective rate plus 0.500% or (c) LIBOR plus 1.00% plus a margin, based on our debt ratings, ranging from 0.000% to 0.015% . In addition, facility fees determined according to our debt ratings are payable on the aggregate commitments, regardless of usage, quarterly in an amount ranging from 0.040% to 0.110% per annum. We are permitted to permanently reduce the aggregate commitment under the Revolving Credit Agreement at any time. Subject to certain conditions stated in the Revolving Credit Agreement, Adobe and any of its subsidiaries designated as additional borrowers may borrow, prepay and re-borrow amounts at any time during the term of the Revolving Credit Agreement. The Revolving 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. 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 November 29, 2019 , there were no |
Non-Operating Income (Expense)
Non-Operating Income (Expense) | 12 Months Ended |
Nov. 29, 2019 | |
Other Income and Expenses [Abstract] | |
NON-OPERATING INCOME (EXPENSE) | NON-OPERATING INCOME (EXPENSE) Non-operating income (expense) for fiscal 2019 , 2018 and 2017 included the following: (in thousands) 2019 2018 2017 Interest and other income (expense), net: Interest income $ 68,321 $ 92,540 $ 66,069 Foreign exchange gains (losses) (26,252 ) (42,612 ) (30,705 ) Realized gains on fixed income investments 171 655 1,673 Realized losses on fixed income investments (295 ) (11,305 ) (725 ) Other 310 258 83 Interest and other income (expense), net $ 42,255 $ 39,536 $ 36,395 Interest expense $ (157,214 ) $ (89,242 ) $ (74,402 ) Investment gains (losses), net: Realized investment gains $ 46,141 $ 6,128 $ 3,279 Unrealized investment gains 5,572 — 4,274 Realized investment losses (134 ) — — Unrealized investment losses — (2,915 ) — Investment gains (losses), net $ 51,579 $ 3,213 $ 7,553 Non-operating income (expense), net $ (63,380 ) $ (46,493 ) $ (30,454 ) |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Nov. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA (unaudited) 2019 (in thousands, except per share data) Quarter Ended March 1 May 31 August 30 November 29 Revenue $ 2,600,946 $ 2,744,280 $ 2,834,126 $ 2,991,945 Gross profit $ 2,203,660 $ 2,336,792 $ 2,418,163 $ 2,539,962 Income before income taxes $ 702,334 $ 710,772 $ 834,488 $ 957,147 Net income $ 674,241 $ 632,593 $ 792,763 $ 851,861 Basic net income per share $ 1.38 $ 1.30 $ 1.63 $ 1.76 Diluted net income per share $ 1.36 $ 1.29 $ 1.61 $ 1.74 2018 (in thousands, except per share data) Quarter Ended March 2 June 1 August 31 November 30 Revenue $ 2,078,947 $ 2,195,360 $ 2,291,076 $ 2,464,625 Gross profit $ 1,820,045 $ 1,914,016 $ 1,995,584 $ 2,105,364 Income before income taxes $ 702,502 $ 690,799 $ 701,358 $ 699,217 Net income $ 583,076 $ 663,167 $ 666,291 $ 678,240 Basic net income per share $ 1.18 $ 1.35 $ 1.36 $ 1.39 Diluted net income per share $ 1.17 $ 1.33 $ 1.34 $ 1.37 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. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | 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, Policy | 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, impairment of goodwill and intangible assets, litigation and income taxes. Actual results may differ materially from these estimates. |
Fiscal Period, Policy | Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Fiscal years 2019 , 2018 and 2017 were 52-week years. |
Reclassifications | Reclassifications Certain immaterial prior year amounts have been reclassified to conform to current year presentation in the Notes to Consolidated Financial Statements. |
New Accounting Pronouncements and Changes in Accounting Principles | Recently Adopted Accounting Guidance On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, Topic 606, 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. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the capitalization of incremental costs to obtain a contract with a customer. The new revenue standard replaces most existing revenue recognition guidance in GAAP and permits the use of either the full retrospective or modified retrospective transition method. On December 1, 2018, the beginning of our fiscal year 2019, we adopted the requirements of the new revenue standard utilizing the modified retrospective method of transition. Prior period information has not been restated and continues to be reported under the accounting standard in effect for those periods. We applied the new revenue standard to contracts that were not completed as of the adoption date, consistent with the transition guidance. Further, adoption of the new revenue standard resulted in changes to our accounting policies for revenue recognition and sales commissions as detailed below. We recognized the following cumulative effects of initially applying the new revenue standard as of December 1, 2018: (in thousands) As of Topic 606 Adoption Adjustments As of Assets Trade receivables, net of allowances for doubtful accounts $ 1,315,578 $ 43,028 $ 1,358,606 Prepaid expenses and other current assets 312,499 186,220 498,719 Other assets 186,522 273,421 459,943 Liabilities and Stockholders’ Equity Accrued expenses 1,163,185 30,358 1,193,543 Deferred revenue, current 2,915,974 (52,842 ) 2,863,132 Deferred income taxes 46,702 82,834 129,536 Retained earnings $ 11,815,597 $ 442,319 $ 12,257,916 Below is a summary of the adoption impacts of the new revenue standard: • We capitalized $413.2 million of contract acquisition costs comprised of sales and partner commission costs at adoption date (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion), with a corresponding adjustment to retained earnings. We are amortizing these costs over their respective expected period of benefit. • Revenue for certain contracts that were previously deferred would have been recognized in periods prior to adoption under the new standard. Upon adoption, we recorded the following adjustments to our beginning balances to reflect the amount of revenue that will no longer be recognized in future periods for such contracts: an increase in unbilled receivables (included in trade receivables, net) of $24.8 million , an increase in contract assets (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion) of $46.4 million and a decrease in deferred revenue of $52.8 million , with corresponding adjustments to retained earnings. • We recorded an increase to our opening deferred income tax liability of $82.8 million , with a corresponding adjustment to retained earnings, to record the tax effect of the above adjustments. • Further, we had other impacts to various accounts which resulted to an immaterial net reduction to our retained earnings. Adoption of the new revenue standard impacted our Consolidated Statements of Income for the year ended November 29, 2019 as follows: (in thousands, except per share amounts) As reported Adjustments Balances without Topic 606 adoption impact Revenue Subscription $ 9,994,463 $ 1,440 $ 9,995,903 Product 647,788 (101,981 ) 545,807 Services and support 529,046 (7,431 ) 521,615 Total revenue 11,171,297 (107,972 ) 11,063,325 Operating expenses Sales and marketing 3,244,347 11,987 3,256,334 General and administrative 880,637 (7,646 ) 872,991 Provision for income taxes 253,283 (6,517 ) 246,766 Net income $ 2,951,458 $ (105,953 ) $ 2,845,505 Basic net income per share $ 6.07 $ (0.22 ) $ 5.85 Diluted net income per share $ 6.00 $ (0.21 ) $ 5.79 Adoption of the new revenue standard impacted our Consolidated Balance Sheets as of November 29, 2019 as follows: (in thousands) As reported Adjustments Balances without Topic 606 adoption impact Assets Trade receivables, net of allowances for doubtful accounts $ 1,534,809 $ (58,140 ) $ 1,476,669 Prepaid expenses and other current assets 783,140 (198,692 ) 584,448 Other assets 562,696 (340,458 ) 222,238 Liabilities and Stockholders’ Equity Accrued expenses 1,398,548 (51,918 ) 1,346,630 Deferred revenue, current 3,377,986 113,432 3,491,418 Deferred revenue, long-term 122,727 (14,723 ) 108,004 Income taxes payable, long-term 616,102 (7,112 ) 608,990 Deferred income taxes 140,498 (88,697 ) 51,801 Retained earnings $ 14,828,562 $ (548,272 ) $ 14,280,290 There was no net impact to our Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows resulting from the adoption of the new revenue standard other than the impact to reported net income as presented above. The impact to our Consolidated Statements of Stockholders’ Equity was only to retained earnings, as presented above. The most significant impact of the new revenue standard relates to our capitalization of certain incremental costs to acquire contracts and the requirement to amortize these amounts over the expected period of benefit. Under the previous standard, we expensed costs related to the acquisition of revenue-generating contracts as incurred. Additionally, there was impact from arrangements with our customers that include on-premise term-based software licenses bundled with maintenance and support. Under the previous standard, revenue attributable to these software licenses was recognized ratably over the term of the arrangement because vendor-specific objective evidence (“VSOE”) did 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 recognition for delivered software licenses is eliminated under the new revenue standard. Accordingly, under the new revenue standard we recognize as revenue a portion of the arrangement fee upon delivery of the software licenses and classify that recognized revenue as product revenue instead of subscription revenue in our Consolidated Statements of Income. Other impacts to our policies and disclosures include earlier recognition of revenue for certain contracts due to the elimination of contingent revenue limitations, the requirement to estimate variable consideration for certain arrangements, increased allocation of revenue to and from professional services and other offerings and changes to our financial statement disclosures such as new disclosures related to our remaining performance obligations. However, the timing and pattern of revenue recognition related to our professional services and cloud-enabled offerings, including Creative Cloud and Document Cloud for enterprises, individuals and teams, remain substantially unchanged. When Creative Cloud and Document Cloud are sold with cloud-enabled services, the on-premise/on-device software licenses and cloud-enabled services are so highly interrelated and interdependent that they are not each separately identifiable within the context of the contract and therefore not distinct from each other. Revenue for these offerings continues to be recognized ratably over the subscription period for which the cloud-enabled services are provided. There have been no other new accounting pronouncements made effective during fiscal 2019 that have significance, or potential significance, to our Consolidated Financial Statements. |
Revenue from Contract with Customer | Revenue Recognition Our revenue is derived from the sale of cloud-enabled software subscriptions, cloud-hosted offerings, term-based, royalty, and perpetual software licenses, associated software maintenance and support plans, consulting services, training and technical support. Most of our enterprise customer arrangements involve multiple promises to our customers. Revenue is recognized when a contract exists between us and a customer and upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which may be capable of being distinct and accounted for as separate performance obligations, or in the case of offerings such as cloud-enabled Creative Cloud and Document Cloud, accounted for as a single performance obligation. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Product, Subscription and Services Offerings We enter into revenue arrangements in which a customer may purchase a combination of cloud-enabled subscriptions, cloud-hosted offerings, term-based, royalty, and perpetual software licenses, associated software maintenance and support plans, consulting services, training and technical support. Fully hosted subscription services (SaaS) allow customers to access hosted software during the contractual term without taking possession of the software. Cloud-hosted subscription services may be sold on a fee-per-subscription period basis or based on consumption or usage. We recognize revenue ratably over the contractual service term for hosted services that are priced based on a committed number of transactions where the delivery and consumption of the benefit of the services occur evenly over time, 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 based on the actual number of transactions are billed in accordance with contract terms as these fees are incurred and are included in the transaction price of an arrangement as variable consideration. Fees based on a number of transactions or impressions per month, where invoicing is aligned to the pattern of performance, customer benefit and consumption, are typically accounted for utilizing the “as-invoiced” practical expedient. Revenue for subscriptions sold as a fee per period is recognized ratably over the contractual term as the customer simultaneously receives and consumes the benefit of the underlying service. When cloud-enabled services are highly integrated and interrelated with on-premise software, such as in our cloud-enabled Creative Cloud and Document Cloud offerings, the individual components are not considered distinct and revenue is recognized ratably over the subscription period for which the cloud-enabled services are provided. Licenses for on-premise software may be purchased on a perpetual basis, as a subscription for a fixed period of time or based on usage for certain of our OEM and royalty agreements. Revenue from distinct on-premise licenses is recognized at the point in time the software is available to the customer, provided all other revenue recognition criteria are met, and classified as product revenue on our Consolidated Statements of Income. Some of our enterprise license arrangements allow customers to commit non-cancellable funds. These non-cancellable committed funds are nonrefundable and provide our customers options to either renew monthly on-premise term-based licenses or use some or all funds to purchase other Adobe products or services. Revenue associated with these monthly term-based licenses is classified as subscription revenue. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to our enterprise offerings. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. We typically sell our consulting contracts on a time-and-materials basis and recognize the related revenue as services are rendered. We typically sell our maintenance and support contracts on a flat fee or percentage of associated license fees basis and recognize the related revenue ratably over the support term as the underlying service is a stand-ready performance obligation. We exclude from the transaction price sales and other taxes collected from customers on behalf of the relevant government authority. Most of our products are delivered electronically, however in instances where shipping and handling costs are incurred, we treat these amounts as costs to fulfill the contract and they are not considered a performance obligation and the associated fees are not included in the transaction price. Judgments Our contracts with customers may include multiple goods and services. For example, some of our offerings include both on-premise and/or on-device software licenses and cloud services. Determining whether the software licenses and the cloud services are distinct from each other, and therefore performance obligations to be accounted for separately, or not distinct from each other, and therefore part of a single performance obligation, may require significant judgment. We have concluded that the on-premise/on-device software licenses and cloud services provided in our Creative Cloud and Document Cloud subscription offerings are not distinct from each other such that revenue from each offering should be recognized ratably over the subscription period for which the cloud services are provided. In reaching this conclusion, we considered the nature of our promise to Creative Cloud and Document Cloud customers, which is to provide a complete end-to-end creative design or document workflow solution that operates seamlessly across multiple devices and teams. We fulfill this promise by providing access to a solution that integrates cloud-based and on-premise/on-device features that, together through their integration, provide functionalities, utility and workflow efficiencies that could not be obtained from either the on-premise/on-device software or cloud services on their own. Cloud-based features that are integral to our Creative Cloud and Document Cloud offerings and that work together with the on-premise/on-device software include, but are not limited to: Creative Cloud Libraries, which enable customers to access their work, settings, preferences, and other assets seamlessly across desktop and mobile devices and collaborate across teams in real time; shared reviews which enable simultaneous editing and commenting of PDFs across desktop, mobile and web; automatic cloud rendering of a design which enables it to be worked on in multiple mediums; and Sensei, Adobe’s cloud-hosted artificial intelligence and machine learning framework, which enables features such as automated photo-editing, photograph content-awareness, natural language processing, optical character recognition and automated document tagging. Standalone selling price is established by maximizing the amount of observable inputs, primarily actual historical selling prices for performance obligations where available, and includes consideration of factors such as go-to-market model and geography. Individual products may have multiple values for standalone selling price depending on factors such as where they are sold and what channel they are sold through. Where standalone selling price may not be directly observable (e.g., the performance obligation is not sold separately), we maximize the use of observable inputs by using information that may include reviewing pricing practices, performance obligations with similar customers and selling models. Capitalized costs to obtain a contract are amortized over the expected period of benefit, which we have determined, based on analysis, to be 5 years . We evaluated qualitative and quantitative factors to determine the period of amortization, including contract length, renewals, customer life and the useful lives of our products and acquired products. When the expected period of benefit of an asset which would be capitalized is less than one year, we expense the amount as incurred, utilizing the practical expedient. We regularly evaluate whether there have been changes in the underlying assumptions and data used to determine the amortization period. When revenue arrangements include components of third-party goods and services, for example in transactions which involve resale, fulfillment or providing advertising impressions to our end customer, we evaluate whether we are the principal, and report revenues on a gross basis, or an agent, and report revenues on a net basis. In this assessment, we consider if we obtain control of the specified goods or services before they are transferred to the customer by evaluating indicators such as which party is primarily responsible for fulfilling the promise to provide the goods or services, which party has discretion in establishing price and the underlying terms and conditions between the parties to the transaction. 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 variable consideration when estimating transaction price. Returns, rebates and other offsets to transaction price are estimated at contract inception on a portfolio basis and assessed for reasonableness each reporting period when additional information becomes available. General Contract Provisions We maintain revenue reserves for rebates, rights of return and other limited price adjustments. 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 for products that are being replaced by new versions. We offer rebates to our distributors, resellers and/or end-user customers. Transaction price is reduced for these amounts based on actual performance against objectives set forth by us for a particular reporting period, such as volume and timely reporting. On a quarterly basis, the amount of revenue that is reserved is calculated based on our historical trends and data specific to each reporting period. The primary method of establishing these reserves is to review historical data from prior periods as a percent of revenue to determine a historical reserve 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 reserve in excess of portfolio-level 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. 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 and consumers have a period of time to terminate certain agreements without penalty. In the event a customer cancels their contract, they are generally not entitled to a refund for prior services we have provided to them. Contracts that include termination rights without substantive penalty are accounted for as contracts only for the committed period. Periods of time after the right of termination are accounted for as optional purchases when they do not represent material rights. For certain of our usage-based license agreements, typically in our royalty and OEM businesses, reporting may be received after the end of a fiscal period. In such instances, we estimate and accrue license revenue. We base our estimates on multiple factors, including historical sales information, seasonality and other business information which may impact our estimates. We do not estimate variable consideration for our sales and usage-based license royalty agreements, consistent with the associated exception for sales and usage-based royalties for the license of intellectual property under the new revenue standard. |
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 20 years for computers and other equipment, which includes our corporate jet, 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, Intangibles and Other Long-Lived Assets | Goodwill, 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 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including 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 segment’s 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 values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed. If the qualitative assessment indicates that the quantitative analysis should be performed, we then 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 2019 . 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 quantitative goodwill impairment test was not performed. We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year. 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 2019 , 2018 or 2017 . During fiscal 2019 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 15 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 ) Customer contracts and relationships 10 Purchased technology 6 Trademarks 9 Backlog 2 Acquired rights to use technology 10 Other 4 |
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 2019 , 2018 and 2017 were $221.1 million , $173.6 million and $141.7 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). |
Derivative Financial Instruments | Derivative Financial Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option and forward contracts to hedge a portion of our forecasted foreign currency denominated revenue primarily 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. Gains and losses related to changes in the fair value of interest rate swaps and foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income (expense), net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue and Treasury lock agreements are designated as cash flow hedges with gains and losses recorded net of tax as a component of accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction affects earnings, we reclassify the related gain or loss on the foreign currency and Treasury lock cash flow hedges to revenue and interest expense, respectively. We may use derivatives to partially offset our business exposure to foreign currency and interest rate risk on expected future cash flows, and certain existing assets and liabilities. We do not use any of our derivative instruments for trading purposes. We enter into master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We do not offset fair value amounts recognized for derivative instruments under master netting arrangements. We also enter into collateral security agreements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. Collateral posted is included in prepaid expenses and other current assets and collateral received is included in accrued expenses on our Consolidated Balance Sheets. |
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 master netting arrangements to mitigate credit risk in derivative transactions by permitting net settlement of transactions with the same counterparty. We also enter into collateral security agreements with certain of our counterparties to exchange cash collateral when the net fair value of certain derivative instruments fluctuates from contractually established thresholds. 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. Certain contracts with advertising agencies contain sequential liability provisions, under which the agency is not required to pay until payment is received from the agency’s customers. In these circumstances, we evaluate the credit-worthiness of the agency’s customers in addition to the agency itself. If we license our software or provide SaaS services to a customer where we have a reason to believe the customer’s ability and intention to pay is not probable, the arrangement is not considered to be a revenue contract. Accordingly, we will not recognize any consideration received as revenue until termination or substantive completion of the services. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements Not Yet Effective 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 leases 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 leases standard is effective for us beginning in the first quarter of fiscal 2020, and we did not early adopt. The new leases standard must be adopted using a modified retrospective transition method and allows for the application of the new guidance at the beginning of the earliest comparative period presented or at the adoption date. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements, providing an optional transition method that allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We will adopt the new leases standard using this optional transition method. We have completed our assessment of the impacts of the standard, and note that the most significant impact will be the recognition of right-of-use assets and lease liabilities on our Consolidated Balance Sheets. The standard will not have a material impact to our Consolidated Statements of Income and Cash Flows. We are in the final stages of implementing a new lease accounting system and updating our processes for the adoption of the new leases standard. 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. For example, adoption would result in reclassification of hedge costs from foreign currency hedges from interest and other income (expense), net to revenue in our Consolidated Statements of Income. 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 will not have a material impact 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. |
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 allowance by considering factors such 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. |
Cash and Cash Equivalents | Cash equivalents consist of all highly liquid debt investments with remaining maturities of three months or less at the date of purchase. We classify our investments in marketable debt securities as “available-for-sale.” We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are determined using the specific identification method and 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. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables 1) - Accounting Standards Update 2014-09 | 12 Months Ended |
Nov. 29, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact of ASC 606 Adoption on Opening Balance Sheets | We recognized the following cumulative effects of initially applying the new revenue standard as of December 1, 2018: (in thousands) As of Topic 606 Adoption Adjustments As of Assets Trade receivables, net of allowances for doubtful accounts $ 1,315,578 $ 43,028 $ 1,358,606 Prepaid expenses and other current assets 312,499 186,220 498,719 Other assets 186,522 273,421 459,943 Liabilities and Stockholders’ Equity Accrued expenses 1,163,185 30,358 1,193,543 Deferred revenue, current 2,915,974 (52,842 ) 2,863,132 Deferred income taxes 46,702 82,834 129,536 Retained earnings $ 11,815,597 $ 442,319 $ 12,257,916 |
Impact of ASC 606 Adoption on Consolidated Statements of Income | Adoption of the new revenue standard impacted our Consolidated Statements of Income for the year ended November 29, 2019 as follows: (in thousands, except per share amounts) As reported Adjustments Balances without Topic 606 adoption impact Revenue Subscription $ 9,994,463 $ 1,440 $ 9,995,903 Product 647,788 (101,981 ) 545,807 Services and support 529,046 (7,431 ) 521,615 Total revenue 11,171,297 (107,972 ) 11,063,325 Operating expenses Sales and marketing 3,244,347 11,987 3,256,334 General and administrative 880,637 (7,646 ) 872,991 Provision for income taxes 253,283 (6,517 ) 246,766 Net income $ 2,951,458 $ (105,953 ) $ 2,845,505 Basic net income per share $ 6.07 $ (0.22 ) $ 5.85 Diluted net income per share $ 6.00 $ (0.21 ) $ 5.79 |
Impact of ASC 606 Adoption on Condensed Balance Sheets | Adoption of the new revenue standard impacted our Consolidated Balance Sheets as of November 29, 2019 as follows: (in thousands) As reported Adjustments Balances without Topic 606 adoption impact Assets Trade receivables, net of allowances for doubtful accounts $ 1,534,809 $ (58,140 ) $ 1,476,669 Prepaid expenses and other current assets 783,140 (198,692 ) 584,448 Other assets 562,696 (340,458 ) 222,238 Liabilities and Stockholders’ Equity Accrued expenses 1,398,548 (51,918 ) 1,346,630 Deferred revenue, current 3,377,986 113,432 3,491,418 Deferred revenue, long-term 122,727 (14,723 ) 108,004 Income taxes payable, long-term 616,102 (7,112 ) 608,990 Deferred income taxes 140,498 (88,697 ) 51,801 Retained earnings $ 14,828,562 $ (548,272 ) $ 14,280,290 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Tables 2) | 12 Months Ended |
Nov. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Finite-Lived Intangible Assets Schedule of Weighted Average Useful Lives [Table Text Block] | During fiscal 2019 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 15 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 ) Customer contracts and relationships 10 Purchased technology 6 Trademarks 9 Backlog 2 Acquired rights to use technology 10 Other 4 |
Revenue (Tables 1)
Revenue (Tables 1) | 12 Months Ended |
Nov. 29, 2019 | |
Disaggregation of Revenue | |
Schedule of Revenue by Segment | Our segment revenue and results for fiscal 2019 , 2018 and 2017 were as follows: (dollars in thousands) Digital Media Digital Experience Publishing Total Fiscal 2019 Revenue $ 7,706,983 $ 3,206,169 $ 258,145 $ 11,171,297 Cost of revenue 289,639 1,362,886 20,195 1,672,720 Gross profit $ 7,417,344 $ 1,843,283 $ 237,950 $ 9,498,577 Gross profit as a percentage of revenue 96 % 57 % 92 % 85 % Fiscal 2018 Revenue $ 6,325,315 $ 2,443,745 $ 260,948 $ 9,030,008 Cost of revenue 249,386 922,414 23,199 1,194,999 Gross profit $ 6,075,929 $ 1,521,331 $ 237,749 $ 7,835,009 Gross profit as a percentage of revenue 96 % 62 % 91 % 87 % Fiscal 2017 Revenue $ 5,010,579 $ 2,030,324 $ 260,602 $ 7,301,505 Cost of revenue 239,994 747,005 23,492 1,010,491 Gross profit $ 4,770,585 $ 1,283,319 $ 237,110 $ 6,291,014 Gross profit as a percentage of revenue 95 % 63 % 91 % 86 % |
Schedule of Revenue by Geography | Revenue by geographic area for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Americas: United States $ 5,904,185 $ 4,632,469 $ 3,830,845 Other 601,721 484,296 385,686 Total Americas 6,505,906 5,116,765 4,216,531 EMEA 2,975,243 2,550,062 1,985,105 APAC: Japan 751,542 609,361 524,254 Other 938,606 753,820 575,615 Total APAC 1,690,148 1,363,181 1,099,869 Revenue $ 11,171,297 $ 9,030,008 $ 7,301,505 |
Disaggregation of Revenue | Revenue by major offerings in our Digital Media reportable segment for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Creative Cloud $ 6,482,345 $ 5,343,498 $ 4,173,964 Document Cloud 1,224,638 981,817 836,615 Total $ 7,706,983 $ 6,325,315 $ 5,010,579 Subscription revenue by segment for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Digital Media $ 7,208,238 $ 5,857,700 $ 4,480,745 Digital Experience 2,670,748 1,949,185 1,552,536 Publishing 115,477 115,267 100,588 Total $ 9,994,463 $ 7,922,152 $ 6,133,869 |
Revenue (Tables 2)
Revenue (Tables 2) | 12 Months Ended |
Nov. 29, 2019 | |
Allowance for Doubtful Accounts | |
Movement in Valuation Allowances and Reserves | |
Allowance for doubtful accounts rollforward | During fiscal 2019 , 2018 and 2017 , our allowance for doubtful accounts activities were as follows: (in thousands) 2019 2018 2017 Beginning balance $ 14,981 $ 9,151 $ 6,214 Increase due to acquisition 10 5,602 2,391 Charged to operating expenses 5,324 5,962 4,411 Deductions (1) (10,665 ) (5,734 ) (3,865 ) Ending balance $ 9,650 $ 14,981 $ 9,151 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Revenue Reserve | |
Movement in Valuation Allowances and Reserves | |
Revenue reserve rollforward | During fiscal 2019 , 2018 and 2017 , our revenue reserve activities were as follows: (in thousands) 2019 2018 2017 Beginning balance $ 25,425 $ 22,006 $ 23,096 Impacts of adoption of the new revenue standard (14,733 ) — — Amount charged to revenue 18,276 65,241 61,031 Actual returns (22,236 ) (61,822 ) (62,121 ) Ending balance $ 6,732 $ 25,425 $ 22,006 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Marketo | |
Business Acquisition | |
Schedule of acquired assets and liabilities | The table below represents the final purchase price allocation to the acquired net tangible and intangible assets of Marketo based on their estimated fair values as of October 31, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to total purchase price, intangible assets, deferred revenue, tax liabilities assumed and their related impact to goodwill. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 577,500 11 Purchased technology 444,500 7 Backlog 105,500 2 Non-competition agreements 12,100 2 Trademarks 328,500 9 Total identifiable intangible assets 1,468,100 Net liabilities assumed (194,588 ) N/A Goodwill (1) 3,459,256 N/A Total purchase price $ 4,732,768 _________________________________________ (1) Non-deductible for tax-purposes. |
Business Acquisition, Pro Forma Information | The financial information in the table below summarizes the combined results of operations of Adobe and Marketo, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 3, 2016 or of results that may occur in the future. The following unaudited pro forma financial information for fiscal 2018 and 2017 combines the historical results for Adobe for the years ended November 30, 2018 and December 1, 2017 and the historical results of Marketo for the period January 1, 2018 through October 31, 2018 and the year ended December 31, 2017, respectively: (in thousands) 2018 2017 Net revenues $ 9,338,790 $ 7,568,713 Net income $ 2,362,238 $ 1,404,864 |
Magento | |
Business Acquisition | |
Schedule of acquired assets and liabilities | The table below represents the final purchase price allocation to the acquired net assets of Magento based on their estimated fair values as of June 18, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to net liabilities assumed and their related impact to goodwill. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 208,000 8 Purchased technology 84,200 5 In-process research and development (1) 39,100 N/A Trademarks 21,100 3 Other intangibles 43,400 3 Total identifiable intangible assets 395,800 Net liabilities assumed (68,182 ) N/A Goodwill (2) 1,316,983 N/A Total purchase price $ 1,644,601 _________________________________________ (1) Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Subsequent to the acquisition, the associated in-process research and development efforts for certain projects were completed and the rest were abandoned. The respective related amortization and write-off were each immaterial. (2) Non-deductible for tax purposes. |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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 November 29, 2019 : (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 466,941 $ — $ — $ 466,941 Cash equivalents: Corporate debt securities 45,703 2 (1 ) 45,704 Money market mutual funds 2,049,057 — — 2,049,057 Time deposits 88,519 — — 88,519 Total cash equivalents 2,183,279 2 (1 ) 2,183,280 Total cash and cash equivalents 2,650,220 2 (1 ) 2,650,221 Short-term fixed income securities: Asset-backed securities 88,584 146 (9 ) 88,721 Corporate debt securities 1,408,332 4,251 (252 ) 1,412,331 Municipal securities 17,642 67 — 17,709 U.S. Treasury securities 7,992 2 — 7,994 Total short-term investments 1,522,550 4,466 (261 ) 1,526,755 Total cash, cash equivalents and short-term investments $ 4,172,770 $ 4,468 $ (262 ) $ 4,176,976 Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2018 : (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 368,564 $ — $ — $ 368,564 Cash equivalents: Money market mutual funds 1,234,188 — — 1,234,188 Time deposits 40,023 — — 40,023 Total cash equivalents 1,274,211 — — 1,274,211 Total cash and cash equivalents 1,642,775 — — 1,642,775 Short-term fixed income securities: Asset-backed securities 41,875 — (367 ) 41,508 Corporate debt securities 1,546,860 44 (24,696 ) 1,522,208 Foreign government securities 4,179 — (24 ) 4,155 Municipal securities 18,601 1 (286 ) 18,316 Total short-term investments 1,611,515 45 (25,373 ) 1,586,187 Total cash, cash equivalents and short-term investments $ 3,254,290 $ 45 $ (25,373 ) $ 3,228,962 |
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 November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 235,155 $ (183 ) $ 538,109 $ (7,966 ) Asset-backed securities 6,651 (5 ) 6,696 (54 ) Municipal securities 3,305 — 6,599 (81 ) Total $ 245,111 $ (188 ) $ 551,404 $ (8,101 ) |
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 November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 44,300 $ (70 ) $ 969,701 $ (16,730 ) Asset-backed securities 6,754 (4 ) 34,812 (313 ) Municipal securities — — 11,532 (205 ) Foreign government securities — — 4,154 (24 ) Total $ 51,054 $ (74 ) $ 1,020,199 $ (17,272 ) |
Cost and Estimated Fair Value of Debt Securities | The following table summarizes the cost and estimated fair value of the fixed income securities classified as short-term investments based on stated effective maturities as of November 29, 2019 : (in thousands) Amortized Cost Estimated Fair Value Due within one year $ 928,472 $ 929,616 Due between one and two years 394,436 395,917 Due between two and three years 179,468 180,867 Due after three years 20,174 20,355 Total $ 1,522,550 $ 1,526,755 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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 November 29, 2019 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 debt securities $ 45,704 $ — $ 45,704 $ — Money market mutual funds 2,049,057 2,049,057 — — Time deposits 88,519 88,519 — — Short-term investments: Asset-backed securities 88,721 — 88,721 — Corporate debt securities 1,412,331 — 1,412,331 — Municipal securities 17,709 — 17,709 — U.S. Treasury securities 7,994 — 7,994 — Prepaid expenses and other current assets: Foreign currency derivatives 28,829 — 28,829 — Other assets: Deferred compensation plan assets 93,776 4,348 89,428 — Total assets $ 3,832,640 $ 2,141,924 $ 1,690,716 $ — Liabilities: Accrued expenses: Treasury lock derivatives $ 29,652 $ — $ 29,652 $ — Foreign currency derivatives 2,671 — 2,671 — Interest rate swap derivatives 208 — 208 — Total liabilities $ 32,531 $ — $ 32,531 $ — The fair value of our financial assets and liabilities at November 30, 2018 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 $ 1,234,188 $ 1,234,188 $ — $ — Time deposits 40,023 40,023 — — Short-term investments: Asset-backed securities 41,508 — 41,508 — Corporate debt securities 1,522,208 — 1,522,208 — Foreign government securities 4,155 — 4,155 — Municipal securities 18,316 — 18,316 — Prepaid expenses and other current assets: Foreign currency derivatives 44,259 — 44,259 — Other assets: Deferred compensation plan assets 68,988 3,895 65,093 — Total assets $ 2,973,645 $ 1,278,106 $ 1,695,539 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 816 $ — $ 816 $ — Other liabilities: Interest rate swap derivatives 9,744 — 9,744 — Total liabilities $ 10,560 $ — $ 10,560 $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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 November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 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) $ 25,605 $ — $ 40,191 $ — Treasury lock (1) — 29,652 — — Interest rate swap (3) — 208 — 9,744 Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 3,224 2,671 4,068 816 Total derivatives $ 28,829 $ 32,531 $ 44,259 $ 10,560 _________________________________________ (1) Fair value asset derivatives included in prepaid expenses and other current assets and fair value liability derivatives included in accrued expenses on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next 18 months , of which $13.2 million is expected within the next 12 months. (3) Included in accrued expenses and other liabilities on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018 , respectively. |
Effect of Derivative Instruments Designated as Cash Flow Hedges and Not Designated as Hedges | The effects of foreign currency derivative instruments designated as cash flow hedges and foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Treasury Lock 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 OCI, net of tax (1) $ 16,526 $ — $ (22,684 ) $ 74,080 $ — $ 6,917 $ — Net gain (loss) reclassified from accumulated OCI into income, net of tax (2) (4) 39,111 — (1,228 ) 48,647 — 32,852 — Net gain (loss) recognized in income (3) (4) (24,269 ) — — (41,179 ) — (30,243 ) — Derivatives not designated as hedging relationships: Net gain (loss) recognized in revenue 761 — — — — — — Net gain (loss) recognized in interest and other income (expense), net $ — $ 4,229 $ — $ — $ 1,529 $ — $ 6,586 _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion of the foreign currency and Treasury lock cash flow hedges classified as revenue and interest expense, respectively. (3) Amount excluded from effectiveness testing and ineffective portion classified in interest and other income (expense), net. (4) Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income. |
Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Non-Designated Derivatives | Net gains (losses) recognized in interest and other income (expense), net relating to foreign currency derivatives not designated as hedging instruments for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ (14,420 ) $ 882 $ (6,142 ) Net unrealized gain (loss) recognized in other income 8,050 (3,843 ) (907 ) (6,370 ) (2,961 ) (7,049 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain (loss) recognized in other income 6,928 (2,042 ) 5,415 Net unrealized gain (loss) recognized in other income (2,699 ) 3,571 1,171 4,229 1,529 6,586 Net gain (loss) recognized in interest and other income (expense), net $ (2,141 ) $ (1,432 ) $ (463 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of the following as of November 29, 2019 and November 30, 2018 : (in thousands) 2019 2018 Computers and other equipment $ 1,424,368 $ 1,239,033 Buildings 482,797 485,024 Building improvements 307,396 285,564 Leasehold improvements 246,244 181,990 Land 144,871 145,065 Furniture and fixtures 143,739 121,206 Capital projects in-progress 112,232 23,026 Total 2,861,647 2,480,908 Less accumulated depreciation and amortization (1,568,632 ) (1,405,836 ) Property and equipment, net $ 1,293,015 $ 1,075,072 |
Property and Equipment by Geographic Area | Property and equipment, net, by geographic area as of November 29, 2019 and November 30, 2018 was as follows: (in thousands) 2019 2018 Americas: United States $ 1,126,406 $ 882,145 Other 2,735 30,475 Total Americas 1,129,141 912,620 EMEA 54,394 51,033 APAC 109,480 111,419 Property and equipment, net $ 1,293,015 $ 1,075,072 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by reportable segment | Goodwill by reportable segment and activity for the years ended November 29, 2019 and November 30, 2018 was as follows: (in thousands) 2017 Acquisitions Other (1) 2018 Acquisitions Other (1) 2019 Digital Media $ 2,724,747 $ 15,247 $ (2,481 ) $ 2,737,513 $ 125,899 $ (914 ) $ 2,862,498 Digital Experience 2,838,390 4,775,969 (29,246 ) 7,585,113 270 (15,103 ) 7,570,280 Publishing 258,424 — (2 ) 258,422 — (1 ) 258,421 Goodwill $ 5,821,561 $ 4,791,216 $ (31,729 ) $ 10,581,048 $ 126,169 $ (16,018 ) $ 10,691,199 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. |
Other intangibles by reportable segment | Other intangibles, net, by reportable segment as of November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 Digital Media $ 79,483 $ 68,280 Digital Experience 1,640,925 2,000,718 Publishing 157 3 Other intangibles, net $ 1,720,565 $ 2,069,001 |
Other intangibles subject to amortization | Other intangibles, net, as of November 29, 2019 and November 30, 2018 were as follows: (in thousands) 2019 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer contracts and relationships $ 1,219,029 $ (436,545 ) $ 782,484 $ 1,329,432 $ (416,176 ) $ 913,256 Purchased technology 759,111 (223,115 ) 535,996 750,286 (118,812 ) 631,474 Trademarks 384,300 (73,546 ) 310,754 384,855 (25,968 ) 358,887 Backlog 143,400 (75,570 ) 67,830 147,300 (13,299 ) 134,001 Acquired rights to use technology 59,524 (46,823 ) 12,701 58,966 (48,770 ) 10,196 Other 23,745 (12,945 ) 10,800 51,096 (29,909 ) 21,187 Other intangibles, net $ 2,589,109 $ (868,544 ) $ 1,720,565 $ 2,721,935 $ (652,934 ) $ 2,069,001 |
Amortization expense in future periods | As of November 29, 2019 , we expect the estimated aggregate amortization expense for each of the five succeeding fiscal years to be as follows: (in thousands) Other Intangibles 2020 $ 364,683 2021 254,921 2022 222,810 2023 214,188 2024 201,953 Thereafter 462,010 Total expected amortization expense $ 1,720,565 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses as of November 29, 2019 and November 30, 2018 consisted of the following: (in thousands) 2019 2018 Accrued compensation and benefits $ 317,897 $ 313,874 Accrued bonuses 222,333 216,007 Accrued media costs 117,591 124,849 Accrued building rent 98,570 61,544 Taxes payable 82,988 57,525 Accrued corporate marketing 79,937 66,186 Sales and marketing allowances 74,163 44,968 Royalties payable 61,938 51,529 Fair value of derivatives 32,531 816 Accrued interest expense 28,878 29,481 Other 281,722 196,406 Accrued expenses $ 1,398,548 $ 1,163,185 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes, domestic and foreign | Income before income taxes for fiscal 2019 , 2018 and 2017 consisted of the following: (in thousands) 2019 2018 2017 Domestic $ 437,603 $ 542,948 $ 1,056,156 Foreign 2,767,138 2,250,928 1,081,485 Income before income taxes $ 3,204,741 $ 2,793,876 $ 2,137,641 |
Provision for income taxes, current and deferred | The provision for income taxes for fiscal 2019 , 2018 and 2017 consisted of the following: (in thousands) 2019 2018 2017 Current: United States federal $ 6,563 $ 501,272 $ 298,802 Foreign 211,174 140,308 60,962 State and local 30,893 28,612 33,578 Total current 248,630 670,192 393,342 Deferred: United States federal 22,528 (466,113 ) 48,905 Foreign (11,675 ) (9,734 ) (4,242 ) State and local (6,200 ) 8,757 5,682 Total deferred 4,653 (467,090 ) 50,345 Provision for income taxes $ 253,283 $ 203,102 $ 443,687 |
Reconciliation of provision for income taxes | Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 21% in 2019, 22.2% in 2018 and 35% in 2017 by income before income taxes) as a result of the following: (in thousands) 2019 2018 2017 Computed “expected” tax expense $ 672,996 $ 620,240 $ 748,174 State tax expense, net of federal benefit 23,510 25,214 25,131 Tax credits (99,772 ) (110,849 ) (38,000 ) Effects of non-U.S. operations (224,214 ) (384,393 ) (215,490 ) Stock-based compensation, net of tax deduction (85,944 ) (95,372 ) (42,512 ) Resolution of income tax examinations (39,291 ) (42,432 ) (31,358 ) Domestic manufacturing deduction benefit — (13,098 ) (32,200 ) Impacts of the U.S. Tax Act 2,955 185,997 — Tax charge for licensing acquired company technology to foreign subsidiaries — — 24,771 Other 3,043 17,795 5,171 Provision for income taxes $ 253,283 $ 203,102 $ 443,687 |
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 November 29, 2019 and November 30, 2018 are presented below: (in thousands) 2019 2018 Deferred tax assets: Acquired technology $ 4,568 $ 9,561 Reserves and accruals 53,796 59,100 Deferred revenue 12,036 37,690 Stock-based compensation 106,911 89,240 Net operating loss carryforwards of acquired companies 137,151 209,445 Credit carryforwards 252,074 173,748 Capitalized expenses 44,912 19,074 Benefits relating to tax positions 47,458 51,965 Other 32,794 37,160 Total gross deferred tax assets 691,700 686,983 Deferred tax asset valuation allowance (244,432 ) (174,496 ) Total deferred tax assets 447,268 512,487 Deferred tax liabilities: Depreciation and amortization 36,458 40,425 Undistributed earnings of foreign subsidiaries 51,883 17,556 Prepaid expenses 86,279 — Acquired intangible assets 413,146 501,208 Total deferred tax liabilities 587,766 559,189 Net deferred tax liabilities $ 140,498 $ 46,702 |
Gross amount of unrecognized tax benefits | During fiscal 2019 and 2018 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows: (in thousands) 2019 2018 Beginning balance $ 196,152 $ 172,945 Gross increases in unrecognized tax benefits – prior year tax positions 14,850 16,191 Gross decreases in unrecognized tax benefits – prior year tax positions (2,282 ) (4,000 ) Gross increases in unrecognized tax benefits – current year tax positions 18,526 60,721 Gross decreases in unrecognized tax benefits – current year tax positions (2,879 ) — Settlements with taxing authorities (230 ) — Lapse of statute of limitations (49,813 ) (45,922 ) Foreign exchange gains and losses (987 ) (3,783 ) Ending balance $ 173,337 $ 196,152 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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: 2019 2018 2017 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 30% - 35% 26% - 29% 22% - 27% Risk free interest rate 1.78% - 2.47% 1.54% - 2.52% 0.62% - 1.41% |
Restricted Stock Unit Activity | Restricted stock unit activity for fiscal 2019 , 2018 and 2017 was as follows: (in thousands) 2019 2018 2017 Beginning outstanding balance 8,668 9,304 8,316 Awarded 4,598 4,012 5,018 Released (3,847 ) (3,988 ) (3,859 ) Forfeited (785 ) (660 ) (766 ) Increase due to acquisition — — 595 Ending outstanding balance 8,634 8,668 9,304 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at November 29, 2019 , November 30, 2018 and December 1, 2017 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2019 Restricted stock units outstanding 8,634 1.12 $ 2,672.6 Restricted stock units expected to vest 7,987 1.05 $ 2,472.2 2018 Restricted stock units outstanding 8,668 1.06 $ 2,174.7 Restricted stock units expected to vest 8,049 1.01 $ 2,019.5 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units expected to vest 8,608 1.05 $ 1,545.3 _________________________________________ (*) 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 November 29, 2019 , November 30, 2018 and December 1, 2017 were $309.53 , $250.89 and $179.52 , respectively. |
Performance Share Activity | Performance share activity for fiscal 2019 , 2018 and 2017 was as follows: (in thousands) 2019 2018 2017 Shares Granted (1) Maximum Shares Eligible to Receive Shares Granted (2) Maximum Shares Eligible to Receive Shares (3) Maximum Beginning outstanding balance 1,148 2,296 1,534 3,068 1,630 3,261 Awarded 722 614 837 628 1,082 1,040 Achieved (830 ) (830 ) (1,050 ) (1,053 ) (1,135 ) (1,147 ) Forfeited (82 ) (164 ) (173 ) (347 ) (43 ) (86 ) Ending outstanding balance 958 1,916 1,148 2,296 1,534 3,068 _________________________________________ (1) Shares awarded during fiscal 2019 include 0.4 million additional shares awarded for the final achievement of the 2016 Performance Share Program which was certified in the first quarter of fiscal 2019. The remaining awarded shares were for the 2019 Performance Share Program. Shares achieved during fiscal 2019 resulted from 200% achievement of target for the 2016 Performance Share Program. (2) Shares awarded during fiscal 2018 include 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share Program which was certified in the first quarter of fiscal 2018. The remaining awarded shares were for the 2018 Performance Share Program. Shares achieved during fiscal 2018 resulted from 200% achievement of target for the 2015 Performance Share Program. (3) Shares awarded during fiscal 2017 include 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share Program which was certified in the first quarter of fiscal 2017. The remaining awarded shares were for the 2017 Performance Share Program. Shares achieved during fiscal 2017 resulted from 198% achievement of target for the 2014 Performance Share Program. |
Restricted Stock Units Granted to Directors | Restricted stock units granted to directors for fiscal 2019 , 2018 and 2017 were as follows: (in thousands) 2019 2018 2017 Annual equity grants to existing directors 10 11 18 Initial equity grants to new directors 1 1 — |
Total Stock-Based Compensation Costs | Total stock-based compensation costs that have been included in our Consolidated Statements of Income for fiscal 2019 , 2018 and 2017 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) Restricted Stock Units and Performance Share Awards 2019 $ 22,822 $ 18,535 $ 338,483 $ 206,371 $ 98,886 $ 685,097 2018 $ 17,515 $ 12,111 $ 253,078 $ 178,548 $ 77,462 $ 538,714 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 Stock Purchase Rights and Options 2019 $ 5,823 $ 7,271 $ 36,663 $ 42,405 $ 10,446 $ 102,608 2018 $ 4,102 $ 8,286 $ 23,918 $ 27,252 $ 7,290 $ 70,848 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 _________________________________________ (1) During fiscal 2019 , 2018 and 2017 , we recorded tax benefits related to stock-based compensation costs of $248.4 million , $222.4 million and $153.2 million , respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income (loss) and activity, net of related taxes, for fiscal 2019 were as follows: (in thousands) November 30, Increase / Decrease Reclassification Adjustments November 29, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 44 $ 4,594 $ (171 ) $ 4,467 Unrealized losses on available-for-sale securities (25,374 ) 24,815 295 (264 ) Total net unrealized gains / losses on available-for-sale securities (25,330 ) 29,409 124 (1 ) 4,203 Net unrealized gains / losses on derivative instruments designated as hedging instruments 21,732 294 (44,334 ) (2 ) (22,308 ) Cumulative foreign currency translation adjustments (144,532 ) (25,397 ) — (169,929 ) Total accumulated other comprehensive income (loss), net of taxes $ (148,130 ) $ 4,306 $ (44,210 ) $ (188,034 ) _________________________________________ (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 foreign currency hedges are classified in revenue and reclassification adjustments for gains / losses on Treasury lock hedges are classified in interest expense. |
Other comprehensive income, tax [Table Text Block] | The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Available-for-sale securities: Unrealized gains / losses $ — $ — $ 663 Reclassification adjustments — — (491 ) Subtotal available-for-sale securities — — 172 Derivatives designated as hedging instruments: Unrealized gains / losses 6,968 — — Reclassification adjustments (383 ) (1,946 ) (732 ) Subtotal derivatives designated as hedging instruments 6,585 (1,946 ) (732 ) Foreign currency translation adjustments — (1,742 ) 3,005 Total taxes, other comprehensive income (loss) $ 6,585 $ (3,688 ) $ 2,445 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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 2019 , 2018 and 2017 : (in thousands, except per share data) 2019 2018 2017 Net income $ 2,951,458 $ 2,590,774 $ 1,693,954 Shares used to compute basic net income per share 486,291 490,564 493,632 Dilutive potential common shares: Restricted stock units and performance share awards 4,875 7,142 7,161 Stock purchase rights and options 406 137 330 Shares used to compute diluted net income per share 491,572 497,843 501,123 Basic net income per share $ 6.07 $ 5.28 $ 3.43 Diluted net income per share $ 6.00 $ 5.20 $ 3.38 Anti-dilutive potential common shares (1) 175 209 141 _________________________________________ (1) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
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 November 29, 2019 : (in thousands) Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2020 $ 545,042 $ 98,200 $ 9,523 2021 407,528 91,866 9,000 2022 528,266 81,493 6,362 2023 555,658 68,539 2,327 2024 — 60,691 — Thereafter — 337,903 — Total $ 2,036,494 $ 738,692 $ 27,212 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Our debt as of November 29, 2019 and November 30, 2018 consisted of the following: (in thousands) 2019 2018 Current debt: Term loan $ 2,249,784 $ — Notes 899,767 — Fair value of interest rate swap (208 ) — Current debt 3,149,343 — Long-term debt: Term loan — 2,248,427 Notes 988,924 1,886,117 Fair value of interest rate swap — (9,744 ) Long-term debt 988,924 4,124,800 Total carrying value of debt $ 4,138,267 $ 4,124,800 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Other Income and Expenses [Abstract] | |
Non-Operating Income (Expense) | Non-operating income (expense) for fiscal 2019 , 2018 and 2017 included the following: (in thousands) 2019 2018 2017 Interest and other income (expense), net: Interest income $ 68,321 $ 92,540 $ 66,069 Foreign exchange gains (losses) (26,252 ) (42,612 ) (30,705 ) Realized gains on fixed income investments 171 655 1,673 Realized losses on fixed income investments (295 ) (11,305 ) (725 ) Other 310 258 83 Interest and other income (expense), net $ 42,255 $ 39,536 $ 36,395 Interest expense $ (157,214 ) $ (89,242 ) $ (74,402 ) Investment gains (losses), net: Realized investment gains $ 46,141 $ 6,128 $ 3,279 Unrealized investment gains 5,572 — 4,274 Realized investment losses (134 ) — — Unrealized investment losses — (2,915 ) — Investment gains (losses), net $ 51,579 $ 3,213 $ 7,553 Non-operating income (expense), net $ (63,380 ) $ (46,493 ) $ (30,454 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Nov. 29, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | 2019 (in thousands, except per share data) Quarter Ended March 1 May 31 August 30 November 29 Revenue $ 2,600,946 $ 2,744,280 $ 2,834,126 $ 2,991,945 Gross profit $ 2,203,660 $ 2,336,792 $ 2,418,163 $ 2,539,962 Income before income taxes $ 702,334 $ 710,772 $ 834,488 $ 957,147 Net income $ 674,241 $ 632,593 $ 792,763 $ 851,861 Basic net income per share $ 1.38 $ 1.30 $ 1.63 $ 1.76 Diluted net income per share $ 1.36 $ 1.29 $ 1.61 $ 1.74 2018 (in thousands, except per share data) Quarter Ended March 2 June 1 August 31 November 30 Revenue $ 2,078,947 $ 2,195,360 $ 2,291,076 $ 2,464,625 Gross profit $ 1,820,045 $ 1,914,016 $ 1,995,584 $ 2,105,364 Income before income taxes $ 702,502 $ 690,799 $ 701,358 $ 699,217 Net income $ 583,076 $ 663,167 $ 666,291 $ 678,240 Basic net income per share $ 1.18 $ 1.35 $ 1.36 $ 1.39 Diluted net income per share $ 1.17 $ 1.33 $ 1.34 $ 1.37 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | Nov. 29, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | $ 1,534,809 | $ 1,358,606 | $ 1,315,578 |
Prepaid expenses and other current assets | 783,140 | 498,719 | 312,499 |
Other assets | 562,696 | 459,943 | 186,522 |
Accrued expenses | 1,398,548 | 1,193,543 | 1,163,185 |
Deferred revenue, current | 3,377,986 | 2,863,132 | 2,915,974 |
Deferred income taxes | 140,498 | 129,536 | 46,702 |
Retained earnings | 14,828,562 | 12,257,916 | 11,815,597 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | 1,476,669 | 1,315,578 | |
Prepaid expenses and other current assets | 584,448 | 312,499 | |
Other assets | 222,238 | 186,522 | |
Accrued expenses | 1,346,630 | 1,163,185 | |
Deferred revenue, current | 3,491,418 | 2,915,974 | |
Deferred income taxes | 51,801 | 46,702 | |
Retained earnings | 14,280,290 | $ 11,815,597 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | (58,140) | 43,028 | |
Prepaid expenses and other current assets | (198,692) | 186,220 | |
Other assets | (340,458) | 273,421 | |
Accrued expenses | (51,918) | 30,358 | |
Deferred revenue, current | 113,432 | (52,842) | |
Deferred income taxes | (88,697) | 82,834 | |
Retained earnings | $ (548,272) | $ 442,319 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Subscription | $ 9,994,463 | $ 7,922,152 | $ 6,133,869 | ||||||||
Product | 647,788 | 622,153 | 706,767 | ||||||||
Services and support | 529,046 | 485,703 | 460,869 | ||||||||
Total revenue | $ 2,991,945 | $ 2,834,126 | $ 2,744,280 | $ 2,600,946 | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | 11,171,297 | 9,030,008 | 7,301,505 |
Sales and marketing | 3,244,347 | 2,620,829 | 2,197,592 | ||||||||
General and administrative | 880,637 | 744,898 | 624,706 | ||||||||
Provision for income taxes | 253,283 | 203,102 | 443,687 | ||||||||
Net income | $ 851,861 | $ 792,763 | $ 632,593 | $ 674,241 | $ 678,240 | $ 666,291 | $ 663,167 | $ 583,076 | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 |
Basic net income per share | $ 1.76 | $ 1.63 | $ 1.30 | $ 1.38 | $ 1.39 | $ 1.36 | $ 1.35 | $ 1.18 | $ 6.07 | $ 5.28 | $ 3.43 |
Diluted net income per share | $ 1.74 | $ 1.61 | $ 1.29 | $ 1.36 | $ 1.37 | $ 1.34 | $ 1.33 | $ 1.17 | $ 6 | $ 5.20 | $ 3.38 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Subscription | $ 9,995,903 | ||||||||||
Product | 545,807 | ||||||||||
Services and support | 521,615 | ||||||||||
Total revenue | 11,063,325 | ||||||||||
Sales and marketing | 3,256,334 | ||||||||||
General and administrative | 872,991 | ||||||||||
Provision for income taxes | 246,766 | ||||||||||
Net income | $ 2,845,505 | ||||||||||
Basic net income per share | $ 5.85 | ||||||||||
Diluted net income per share | $ 5.79 | ||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Subscription | $ 1,440 | ||||||||||
Product | (101,981) | ||||||||||
Services and support | (7,431) | ||||||||||
Total revenue | (107,972) | ||||||||||
Sales and marketing | 11,987 | ||||||||||
General and administrative | (7,646) | ||||||||||
Provision for income taxes | (6,517) | ||||||||||
Net income | $ (105,953) | ||||||||||
Basic net income per share | $ (0.22) | ||||||||||
Diluted net income per share | $ (0.21) |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Nov. 29, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | $ 1,534,809 | $ 1,358,606 | $ 1,315,578 |
Prepaid expenses and other current assets | 783,140 | 498,719 | 312,499 |
Other assets | 562,696 | 459,943 | 186,522 |
Accrued expenses | 1,398,548 | 1,193,543 | 1,163,185 |
Deferred revenue, current | 3,377,986 | 2,863,132 | 2,915,974 |
Deferred revenue, long-term | 122,727 | 137,630 | |
Income taxes payable, long-term | 616,102 | 644,101 | |
Deferred income taxes | 140,498 | 129,536 | 46,702 |
Retained earnings | 14,828,562 | 12,257,916 | 11,815,597 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | 1,476,669 | 1,315,578 | |
Prepaid expenses and other current assets | 584,448 | 312,499 | |
Other assets | 222,238 | 186,522 | |
Accrued expenses | 1,346,630 | 1,163,185 | |
Deferred revenue, current | 3,491,418 | 2,915,974 | |
Deferred revenue, long-term | 108,004 | ||
Income taxes payable, long-term | 608,990 | ||
Deferred income taxes | 51,801 | 46,702 | |
Retained earnings | 14,280,290 | $ 11,815,597 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Trade receivables, net of allowances for doubtful accounts | (58,140) | 43,028 | |
Prepaid expenses and other current assets | (198,692) | 186,220 | |
Other assets | (340,458) | 273,421 | |
Accrued expenses | (51,918) | 30,358 | |
Deferred revenue, current | 113,432 | (52,842) | |
Deferred revenue, long-term | (14,723) | ||
Income taxes payable, long-term | (7,112) | ||
Deferred income taxes | (88,697) | 82,834 | |
Retained earnings | $ (548,272) | $ 442,319 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies (Details 4) | 12 Months Ended |
Nov. 29, 2019 | |
Computers and other equipment | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computers and other equipment | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Furniture and fixtures | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Furniture and fixtures | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Building improvements | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building improvements | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Buildings | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold improvements | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold improvements | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies (Details 5) | 12 Months Ended |
Nov. 29, 2019 | |
Customer contracts and relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Purchased Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Backlog | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
Acquired rights to use technology | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Other intangibles | |
Finite-Lived Intangible Assets [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives - range (in years) | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives - range (in years) | 15 years |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies Details Numeric (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 01, 2018 | |
Capitalized contract acquisition costs, Amortization period | 5 years | |||
Capitalized contract acquisition costs | $ 473,700 | $ 413,200 | ||
Unbilled receivables | 149,300 | 105,800 | ||
Contract assets | 63,900 | 46,400 | ||
Deferred revenue | 3,377,986 | $ 2,915,974 | 2,863,132 | |
Advertising Expense | 221,100 | $ 173,600 | $ 141,700 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Capitalized contract acquisition costs | 413,200 | |||
Unbilled receivables | 24,800 | |||
Contract assets | 46,400 | |||
Deferred revenue | $ 113,432 | (52,842) | ||
Deferred income taxes | $ 82,800 |
Revenue (Details 1)
Revenue (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 2,991,945 | $ 2,834,126 | $ 2,744,280 | $ 2,600,946 | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 11,171,297 | $ 9,030,008 | $ 7,301,505 |
Cost of revenue | 1,672,720 | 1,194,999 | 1,010,491 | ||||||||
Gross profit | $ 2,539,962 | $ 2,418,163 | $ 2,336,792 | $ 2,203,660 | $ 2,105,364 | $ 1,995,584 | $ 1,914,016 | $ 1,820,045 | $ 9,498,577 | $ 7,835,009 | $ 6,291,014 |
Gross profit as a percentage of revenue | 85.00% | 87.00% | 86.00% | ||||||||
Digital Media | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 7,706,983 | $ 6,325,315 | $ 5,010,579 | ||||||||
Cost of revenue | 289,639 | 249,386 | 239,994 | ||||||||
Gross profit | $ 7,417,344 | $ 6,075,929 | $ 4,770,585 | ||||||||
Gross profit as a percentage of revenue | 96.00% | 96.00% | 95.00% | ||||||||
Digital Experience | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 3,206,169 | $ 2,443,745 | $ 2,030,324 | ||||||||
Cost of revenue | 1,362,886 | 922,414 | 747,005 | ||||||||
Gross profit | $ 1,843,283 | $ 1,521,331 | $ 1,283,319 | ||||||||
Gross profit as a percentage of revenue | 57.00% | 62.00% | 63.00% | ||||||||
Publishing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 258,145 | $ 260,948 | $ 260,602 | ||||||||
Cost of revenue | 20,195 | 23,199 | 23,492 | ||||||||
Gross profit | $ 237,950 | $ 237,749 | $ 237,110 | ||||||||
Gross profit as a percentage of revenue | 92.00% | 91.00% | 91.00% |
Revenue (Details 2)
Revenue (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 2,991,945 | $ 2,834,126 | $ 2,744,280 | $ 2,600,946 | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 11,171,297 | $ 9,030,008 | $ 7,301,505 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 5,904,185 | 4,632,469 | 3,830,845 | ||||||||
Other Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 601,721 | 484,296 | 385,686 | ||||||||
Total Americas | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 6,505,906 | 5,116,765 | 4,216,531 | ||||||||
EMEA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 2,975,243 | 2,550,062 | 1,985,105 | ||||||||
Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 751,542 | 609,361 | 524,254 | ||||||||
Other APAC | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 938,606 | 753,820 | 575,615 | ||||||||
Total APAC | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,690,148 | $ 1,363,181 | $ 1,099,869 |
Revenue (Details 3)
Revenue (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 2,991,945 | $ 2,834,126 | $ 2,744,280 | $ 2,600,946 | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 11,171,297 | $ 9,030,008 | $ 7,301,505 |
Digital Media | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Creative Cloud | 6,482,345 | 5,343,498 | 4,173,964 | ||||||||
Document Cloud | 1,224,638 | 981,817 | 836,615 | ||||||||
Revenue | $ 7,706,983 | $ 6,325,315 | $ 5,010,579 |
Revenue (Details 4)
Revenue (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Disaggregation of Revenue | |||
Subscription | $ 9,994,463 | $ 7,922,152 | $ 6,133,869 |
Digital Media | |||
Disaggregation of Revenue | |||
Subscription | 7,208,238 | 5,857,700 | 4,480,745 |
Digital Experience | |||
Disaggregation of Revenue | |||
Subscription | 2,670,748 | 1,949,185 | 1,552,536 |
Publishing | |||
Disaggregation of Revenue | |||
Subscription | $ 115,477 | $ 115,267 | $ 100,588 |
Revenue (Details 5)
Revenue (Details 5) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Movement in Valuation Allowances and Reserves | ||||
Beginning balance | $ 14,981 | $ 9,151 | $ 6,214 | |
Increase due to acquisition | 10 | 5,602 | 2,391 | |
Charged to operating expenses | 5,324 | 5,962 | 4,411 | |
Deductions | [1] | (10,665) | (5,734) | (3,865) |
Ending balance | $ 9,650 | $ 14,981 | $ 9,151 | |
[1] | Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Revenue (Details 6)
Revenue (Details 6) - Revenue Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Movement in Valuation Allowances and Reserves | |||
Beginning balance | $ 25,425 | $ 22,006 | $ 23,096 |
Impacts of adoption of the new revenue standard | (14,733) | 0 | 0 |
Amount charged to revenue | 18,276 | 65,241 | 61,031 |
Actual returns | (22,236) | (61,822) | (62,121) |
Ending balance | $ 6,732 | $ 25,425 | $ 22,006 |
Revenue (Details Numeric)
Revenue (Details Numeric) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Dec. 01, 2018 | Nov. 30, 2018 | |
Trade receivables, net of allowances for doubtful accounts | $ 1,534,809 | $ 1,358,606 | $ 1,315,578 |
Unbilled receivables | 149,300 | 105,800 | |
Contract assets | 63,900 | 46,400 | |
Deferred revenue | 3,500,000 | 3,000,000 | |
Deferred revenue recognized that was included in the beginning balance | 2,800,000 | ||
Remaining performance obligations | $ 9,820,000 | ||
Percent of Remaining performance obligations expected to be recognized in next 12 months | 74.00% | ||
Capitalized contract acquisition costs, Amortization period | 5 years | ||
Capitalized contract acquisition costs, Amortization | $ 170,900 | ||
Capitalized contract acquisition costs | 473,700 | 413,200 | |
Capitalized contract acquisition costs, Non-current | 314,700 | ||
Refund liability | 126,100 | $ 75,300 | |
Non-cancellable Committed Funds | |||
Deferred revenue | 265,400 | ||
Remaining performance obligations | 776,400 | ||
Refundable Customer Deposits | |||
Deferred revenue | $ 56,900 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ in Thousands | Oct. 31, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | |
Schedule of acquired assets and liabilities | ||||
Goodwill, acquired during period | $ 126,169 | $ 4,791,216 | ||
Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Customer contracts and relationships | $ 577,500 | |||
Purchased technology | 444,500 | |||
Backlog | 105,500 | |||
Non-competition agreements | 12,100 | |||
Trademarks | 328,500 | |||
Total identifiable intangible assets acquired | 1,468,100 | |||
Net assets acquired or liabilities assumed | (194,588) | |||
Goodwill, acquired during period | [1] | 3,459,256 | ||
Total estimated purchase price | $ 4,732,768 | |||
Customer contracts and relationships | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||
Customer contracts and relationships | Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | |||
Purchased Technology | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | |||
Purchased Technology | Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 7 years | |||
Backlog | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | |||
Backlog | Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | |||
Non-competition agreements | Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 2 years | |||
Trademarks | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | |||
Trademarks | Marketo | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | |||
[1] | Non-deductible for tax-purposes. |
Acquisitions (Details 2)
Acquisitions (Details 2) - Marketo - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2018 | Dec. 01, 2017 | |
Schedule of pro forma revenue and earnings | ||
Business acquisition, pro forma revenue | $ 9,338,790 | $ 7,568,713 |
Business acquisition, pro forma net income | $ 2,362,238 | $ 1,404,864 |
Acquisitions (Details 3)
Acquisitions (Details 3) - USD ($) $ in Thousands | Jun. 18, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | |
Schedule of acquired assets and liabilities | ||||
Goodwill, acquired during period | $ 126,169 | $ 4,791,216 | ||
Magento | ||||
Schedule of acquired assets and liabilities | ||||
Finite-Lived Customer Relationships, Gross | $ 208,000 | |||
Finite-Lived Purchased Technology, Gross | 84,200 | |||
Finite -lived in-process research and development | [1] | 39,100 | ||
Finite-Lived Trademarks, Gross | 21,100 | |||
Other Finite-Lived Intangible Assets, Gross | 43,400 | |||
Total identifiable intangible assets acquired | 395,800 | |||
Net assets acquired or liabilities assumed | (68,182) | |||
Goodwill, acquired during period | [2] | 1,316,983 | ||
Business Combination Purchase Price | $ 1,644,601 | |||
Customer contracts and relationships | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||
Customer contracts and relationships | Magento | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 8 years | |||
Purchased Technology | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | |||
Purchased Technology | Magento | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |||
Trademarks | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | |||
Trademarks | Magento | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||
Other intangibles | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | |||
Other intangibles | Magento | ||||
Schedule of acquired assets and liabilities | ||||
Acquired finite-lived intangible assets, weighted average useful life | 3 years | |||
[1] | Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Subsequent to the acquisition, the associated in-process research and development efforts for certain projects were completed and the rest were abandoned. The respective related amortization and write-off were each immaterial. | |||
[2] | Non-deductible for tax purposes |
Acquisitions (Details Numeric)
Acquisitions (Details Numeric) - USD ($) $ in Thousands | Jan. 23, 2019 | Oct. 31, 2018 | Dec. 19, 2016 | Nov. 29, 2019 | Nov. 30, 2018 | Oct. 17, 2018 | |
Business Acquisition | |||||||
Goodwill, acquired during period | $ 126,169 | $ 4,791,216 | |||||
Allegorithmic | |||||||
Business Acquisition | |||||||
Business Combination, Purchase Price for Remaining Interest | $ 106,200 | ||||||
Business Combination Purchase Price | 161,100 | ||||||
Goodwill, acquired during period | 125,900 | ||||||
Total identifiable intangible assets acquired | 44,800 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 42,000 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 54,800 | ||||||
Marketo | |||||||
Business Acquisition | |||||||
Business Combination Purchase Price | $ 4,732,768 | ||||||
Goodwill, acquired during period | [1] | 3,459,256 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 102,600 | ||||||
Trade receivables acquired | 71,600 | ||||||
Deferred revenue assumed | 74,800 | ||||||
Deferred tax liabilities assumed, net | 182,600 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 54,900 | ||||||
Deferred tax liabilities assumed for future amortization of intangible assets | 348,800 | ||||||
Deferred tax assets acquired | 166,200 | ||||||
Total identifiable intangible assets acquired | 1,468,100 | ||||||
Net assets acquired or liabilities assumed | $ (194,588) | ||||||
TubeMogul | |||||||
Business Acquisition | |||||||
Business Combination Purchase Price | $ 560,800 | ||||||
Goodwill, acquired during period | 348,400 | ||||||
Total identifiable intangible assets acquired | 113,100 | ||||||
Net assets acquired or liabilities assumed | $ 99,300 | ||||||
Term Loan | Marketo | |||||||
Business Acquisition | |||||||
Debt Instrument, Face Amount | $ 2,250,000 | ||||||
[1] | Non-deductible for tax-purposes. |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 4,172,770 | $ 3,254,290 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,468 | 45 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (262) | (25,373) |
Cash, Cash Equivalents, and Short-term Investments, Fair Value Disclosure | 4,176,976 | 3,228,962 |
Cash and cash equivalents [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,650,220 | 1,642,775 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,650,221 | 1,642,775 |
Cash [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 466,941 | 368,564 |
Debt Securities, Available-for-sale, 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 | 466,941 | 368,564 |
Cash equivalents [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,183,279 | 1,274,211 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,183,280 | 1,274,211 |
Cash equivalents [Member] | Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,703 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Cash and Cash Equivalents, Fair Value Disclosure | 45,704 | |
Cash equivalents [Member] | Money market mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,049,057 | 1,234,188 |
Debt Securities, Available-for-sale, 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 | 2,049,057 | 1,234,188 |
Cash equivalents [Member] | Time deposits [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 88,519 | 40,023 |
Debt Securities, Available-for-sale, 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 | 88,519 | 40,023 |
Short-term investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,522,550 | 1,611,515 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,466 | 45 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (261) | (25,373) |
Available For Sale Securities Fair Value Disclosure | 1,526,755 | 1,586,187 |
Short-term fixed income securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 88,584 | 41,875 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 146 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (9) | (367) |
Available For Sale Securities Fair Value Disclosure | 88,721 | 41,508 |
Short-term fixed income securities [Member] | Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,408,332 | 1,546,860 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,251 | 44 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (252) | (24,696) |
Available For Sale Securities Fair Value Disclosure | 1,412,331 | 1,522,208 |
Short-term fixed income securities [Member] | Foreign government securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,179 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (24) | |
Available For Sale Securities Fair Value Disclosure | 4,155 | |
Short-term fixed income securities [Member] | Municipal securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,642 | 18,601 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 67 | 1 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (286) |
Available For Sale Securities Fair Value Disclosure | 17,709 | $ 18,316 |
Short-term fixed income securities [Member] | U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,992 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Available For Sale Securities Fair Value Disclosure | $ 7,994 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments (Details 1) $ in Thousands | Nov. 29, 2019USD ($)securities | Nov. 30, 2018USD ($)securities |
Schedule of Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 4,172,770 | $ 3,254,290 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 245,111 | 551,404 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (188) | (8,101) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 51,054 | 1,020,199 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (74) | $ (17,272) |
Fair Value and Gross Unrealized Losses | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities | 115 | 369 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 38 | 577 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 235,155 | $ 538,109 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (183) | (7,966) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 44,300 | 969,701 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (70) | (16,730) |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 6,651 | 6,696 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | (54) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 6,754 | 34,812 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4) | (313) |
Municipal securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 3,305 | 6,599 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (81) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 11,532 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | (205) |
Foreign government securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 4,154 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ (24) |
Cash, Cash Equivalents and Sh_5
Cash, Cash Equivalents and Short-Term Investments (Details 2) $ in Thousands | Nov. 29, 2019USD ($) |
Amortized cost and Estimated Fair Value of Short-term fixed Income Securities [Abstract] | |
Due within one year, Amortized Cost | $ 928,472 |
Due between one and two years, Amortized Cost | 394,436 |
Due between two and three years, Amortized Cost | 179,468 |
Due after three years, Amortized Cost | 20,174 |
Total, Amortized Cost | 1,522,550 |
Due within one year, Estimated Fair value | 929,616 |
Due between one and two years, Estimated Fair value | 395,917 |
Due between two and three years, Estimated Fair value | 180,867 |
Due after three years, Estimated Fair value | 20,355 |
Total, Estimated Fair Value | $ 1,526,755 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 28,829 | $ 44,259 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 93,776 | 68,988 |
Assets, Fair Value Disclosure | 3,832,640 | 2,973,645 |
Treasury Lock Derivative, at Fair Value, Net | 29,652 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 2,671 | 816 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 208 | 9,744 |
Liabilities, Fair Value Disclosure | 32,531 | 10,560 |
Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 88,721 | 41,508 |
Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 45,704 | |
Available-for-sale Securities, Fair Value Disclosure | 1,412,331 | 1,522,208 |
Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 4,155 | |
Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 17,709 | 18,316 |
Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,049,057 | 1,234,188 |
Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 88,519 | 40,023 |
U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 7,994 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 4,348 | 3,895 |
Assets, Fair Value Disclosure | 2,141,924 | 1,278,106 |
Treasury Lock Derivative, at Fair Value, Net | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 1 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 2,049,057 | 1,234,188 |
Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 88,519 | 40,023 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 28,829 | 44,259 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 89,428 | 65,093 |
Assets, Fair Value Disclosure | 1,690,716 | 1,695,539 |
Treasury Lock Derivative, at Fair Value, Net | 29,652 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 2,671 | 816 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 208 | 9,744 |
Liabilities, Fair Value Disclosure | 32,531 | 10,560 |
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 88,721 | 41,508 |
Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 45,704 | |
Available-for-sale Securities, Fair Value Disclosure | 1,412,331 | 1,522,208 |
Fair Value, Inputs, Level 2 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 4,155 | |
Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 17,709 | 18,316 |
Fair Value, Inputs, Level 2 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 7,994 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Treasury Lock Derivative, at Fair Value, Net | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | $ 0 |
Fair Value, Inputs, Level 3 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details Numeric) $ in Millions | Nov. 29, 2019USD ($) |
Notes 2020 and 2025 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior Notes, Fair Value | $ 1,960 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | ||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | $ 28,829 | $ 44,259 | |
Fair Value Liability Derivatives | 32,531 | 10,560 | |
Designated as Hedging Instrument | Foreign Exchange Option Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [1],[2] | 25,605 | 40,191 |
Fair Value Liability Derivatives | [1],[2] | $ 0 | 0 |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 18 months | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 13,200 | ||
Designated as Hedging Instrument | Treasury Lock | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [1] | 0 | 0 |
Fair Value Liability Derivatives | [1] | 29,652 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [3] | 0 | 0 |
Fair Value Liability Derivatives | [3] | 208 | 9,744 |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [1] | 3,224 | 4,068 |
Fair Value Liability Derivatives | [1] | $ 2,671 | $ 816 |
[1] | Fair value asset derivatives included in prepaid expenses and other current assets and fair value liability derivatives included in accrued expenses on our Consolidated Balance Sheets. | ||
[2] | Hedging effectiveness expected to be recognized to income within the next 18 months , of which $13.2 million is expected within the next 12 months. | ||
[3] | Included in accrued expenses and other liabilities on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018 , respectively. |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Designated as Hedging Instrument | Cash Flow Hedging [Member] | Foreign Exchange Option Contracts | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | $ 16,526 | $ 74,080 | $ 6,917 |
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2],[3] | 39,111 | 48,647 | 32,852 |
Net gain (loss) recognized in income | [3],[4] | (24,269) | (41,179) | (30,243) |
Designated as Hedging Instrument | Cash Flow Hedging [Member] | Foreign Exchange Forward Contracts | ||||
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],[3] | 0 | 0 | 0 |
Net gain (loss) recognized in income | [3],[4] | 0 | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging [Member] | Treasury Lock | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | (22,684) | ||
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2],[3] | (1,228) | ||
Net gain (loss) recognized in income | [3],[4] | 0 | ||
Not Designated as Hedging Instrument | Foreign Exchange Option Contracts | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in revenue | 761 | 0 | 0 | |
Net gain (loss) recognized in income | 0 | 0 | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward Contracts | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in revenue | 0 | 0 | 0 | |
Net gain (loss) recognized in income | 4,229 | $ 1,529 | $ 6,586 | |
Not Designated as Hedging Instrument | Treasury Lock | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in revenue | 0 | |||
Net gain (loss) recognized in income | $ 0 | |||
[1] | Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). | |||
[2] | Effective portion of the foreign currency and Treasury lock cash flow hedges classified as revenue and interest expense, respectively. | |||
[3] | Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income. | |||
[4] | Amount excluded from effectiveness testing and ineffective portion classified in interest and other income (expense), net. |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (26,252) | $ (42,612) | $ (30,705) |
Not Designated as Hedging Instrument | |||
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), Realized | (14,420) | 882 | (6,142) |
Foreign Currency Transaction Gain (Loss), Unrealized | 8,050 | (3,843) | (907) |
Foreign Currency Transaction Gain (Loss), before Tax | (6,370) | (2,961) | (7,049) |
Derivative, Gain (Loss) on Derivative, Net | (2,141) | (1,432) | (463) |
Not Designated as Hedging Instrument | Foreign Exchange Contract [Member] | |||
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Realized Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 6,928 | (2,042) | 5,415 |
Unrealized Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (2,699) | 3,571 | 1,171 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 4,229 | $ 1,529 | $ 6,586 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | |||||
Nov. 29, 2019 | Nov. 30, 2018 | Jun. 07, 2019 | Oct. 17, 2018 | Jun. 13, 2014 | Feb. 28, 2010 | |
Term Loan | Marketo | ||||||
Derivative [Line Items] | ||||||
Debt Instrument, Face Amount | $ 2,250 | |||||
Notes 2020 | ||||||
Derivative [Line Items] | ||||||
Debt Instrument, Face Amount | $ 900 | |||||
2020 Notes, Interest Rate, Stated Percentage | 4.75% | |||||
Foreign Exchange Option Contracts | ||||||
Derivative [Line Items] | ||||||
Derivative, Remaining Maturity | 12 months | 12 months | ||||
Derivative, Notional Amount | $ 1,200 | |||||
Treasury Lock | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 1,000 | |||||
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, Notional Amount | $ 900 | |||||
Derivative, Fixed Interest Rate | 4.75% | |||||
Foreign Exchange Forward Contracts | ||||||
Derivative [Line Items] | ||||||
Derivative, Remaining Maturity | 180 days | 180 days | ||||
Derivative, Notional Amount | $ 702.4 | $ 427.9 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,861,647 | $ 2,480,908 |
Less accumulated depreciation and amortization | (1,568,632) | (1,405,836) |
Property and equipment, net | 1,293,015 | 1,075,072 |
Computers and other equipment | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 1,424,368 | 1,239,033 |
Buildings | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 482,797 | 485,024 |
Building improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 307,396 | 285,564 |
Leasehold improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 246,244 | 181,990 |
Land | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 144,871 | 145,065 |
Furniture and fixtures | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 143,739 | 121,206 |
Capital projects in-progress | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 112,232 | $ 23,026 |
Property and Equipment (Detai_2
Property and Equipment (Details 1) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Property and Equipment [Line Items] | ||
Property and equipment, net | $ 1,293,015 | $ 1,075,072 |
United States | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 1,126,406 | 882,145 |
Other Americas | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 2,735 | 30,475 |
Total Americas | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 1,129,141 | 912,620 |
EMEA | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | 54,394 | 51,033 |
APAC | ||
Property and Equipment [Line Items] | ||
Property and equipment, net | $ 109,480 | $ 111,419 |
Property and Equipment (Detai_3
Property and Equipment (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Property and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 173.1 | $ 157.1 | $ 156.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | ||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | $ 10,581,048 | $ 5,821,561 | |
Acquisitions | 126,169 | 4,791,216 | |
Other | [1] | (16,018) | (31,729) |
Goodwill, Ending Balance | 10,691,199 | 10,581,048 | |
Digital Media | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 2,737,513 | 2,724,747 | |
Acquisitions | 125,899 | 15,247 | |
Other | [1] | (914) | (2,481) |
Goodwill, Ending Balance | 2,862,498 | 2,737,513 | |
Digital Experience | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 7,585,113 | 2,838,390 | |
Acquisitions | 270 | 4,775,969 | |
Other | [1] | (15,103) | (29,246) |
Goodwill, Ending Balance | 7,570,280 | 7,585,113 | |
Publishing | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 258,422 | 258,424 | |
Acquisitions | 0 | 0 | |
Other | [1] | (1) | (2) |
Goodwill, Ending Balance | $ 258,421 | $ 258,422 | |
[1] | Amounts primarily consist of foreign currency translation adjustments. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Details 1) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Other intangibles, net | $ 1,720,565 | $ 2,069,001 |
Digital Media | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Other intangibles, net | 79,483 | 68,280 |
Digital Experience | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Other intangibles, net | 1,640,925 | 2,000,718 |
Publishing | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Other intangibles, net | $ 157 | $ 3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Details 2) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,589,109 | $ 2,721,935 |
Accumulated Amortization | (868,544) | (652,934) |
Other intangibles, net | 1,720,565 | 2,069,001 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,219,029 | 1,329,432 |
Accumulated Amortization | (436,545) | (416,176) |
Other intangibles, net | 782,484 | 913,256 |
Purchased Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 759,111 | 750,286 |
Accumulated Amortization | (223,115) | (118,812) |
Other intangibles, net | 535,996 | 631,474 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 384,300 | 384,855 |
Accumulated Amortization | (73,546) | (25,968) |
Other intangibles, net | 310,754 | 358,887 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 143,400 | 147,300 |
Accumulated Amortization | (75,570) | (13,299) |
Other intangibles, net | 67,830 | 134,001 |
Acquired rights to use technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 59,524 | 58,966 |
Accumulated Amortization | (46,823) | (48,770) |
Other intangibles, net | 12,701 | 10,196 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 23,745 | 51,096 |
Accumulated Amortization | (12,945) | (29,909) |
Other intangibles, net | $ 10,800 | $ 21,187 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles (Details 3) $ in Thousands | Nov. 29, 2019USD ($) |
Amortization Expense in Future Periods [Abstract] | |
2019 | $ 364,683 |
2020 | 254,921 |
2021 | 222,810 |
2022 | 214,188 |
2023 | 201,953 |
Thereafter | 462,010 |
Total expected amortization expense | $ 1,720,565 |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to other intangibles | $ 402.3 | $ 182.6 | $ 153.6 |
Amortization expense included in cost of sales | $ 227 | $ 91.3 | $ 76.1 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 15 years |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Nov. 29, 2019 | Dec. 01, 2018 | Nov. 30, 2018 |
Accrued Expense [Abstract] | |||
Accrued compensation and benefits | $ 317,897 | $ 313,874 | |
Accrued bonuses | 222,333 | 216,007 | |
Accrued media costs | 117,591 | 124,849 | |
Accrued building rent | 98,570 | 61,544 | |
Taxes payable | 82,988 | 57,525 | |
Accrued corporate marketing | 79,937 | 66,186 | |
Sales and marketing allowances | 74,163 | 44,968 | |
Royalties payable | 61,938 | 51,529 | |
Fair value of derivatives | 32,531 | 816 | |
Accrued interest expense | 28,878 | 29,481 | |
Other | 281,722 | 196,406 | |
Accrued expenses | $ 1,398,548 | $ 1,193,543 | $ 1,163,185 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 30, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||||||||||
US Federal statutory rate | 21.00% | 21.00% | ||||||||||
Income before income taxes | $ 957,147 | $ 834,488 | $ 710,772 | $ 702,334 | $ 699,217 | $ 701,358 | $ 690,799 | $ 702,502 | $ 3,204,741 | $ 2,793,876 | $ 2,137,641 | |
Income before income taxes [Abstract] | ||||||||||||
Domestic | 437,603 | 542,948 | 1,056,156 | |||||||||
Foreign | 2,767,138 | 2,250,928 | 1,081,485 | |||||||||
Provision for income taxes - Current | ||||||||||||
United States federal | 6,563 | 501,272 | 298,802 | |||||||||
Foreign | 211,174 | 140,308 | 60,962 | |||||||||
State and local | 30,893 | 28,612 | 33,578 | |||||||||
Total current | 248,630 | 670,192 | 393,342 | |||||||||
Provision for income taxes - Deferred | ||||||||||||
United States federal | 22,528 | (466,113) | 48,905 | |||||||||
Foreign | (11,675) | (9,734) | (4,242) | |||||||||
State and local | (6,200) | 8,757 | 5,682 | |||||||||
Total deferred | 4,653 | (467,090) | 50,345 | |||||||||
Provision for income taxes | 253,283 | 203,102 | 443,687 | |||||||||
Reconciliation of provision for income taxes [Abstract] | ||||||||||||
Computed "expected" tax expense | 672,996 | 620,240 | 748,174 | |||||||||
State tax expense, net of federal benefit | 23,510 | 25,214 | 25,131 | |||||||||
Tax credits | (99,772) | (110,849) | (38,000) | |||||||||
Effects of non-U.S. operations | (224,214) | (384,393) | (215,490) | |||||||||
Stock-based compensation, net of tax deduction | (85,944) | (95,372) | (42,512) | |||||||||
Resolution of income tax examinations | (39,291) | (42,432) | (31,358) | |||||||||
Domestic manufacturing deduction benefit | 0 | (13,098) | (32,200) | |||||||||
Impacts of the U.S. Tax Act | 2,955 | 185,997 | 0 | |||||||||
Tax charge for licensing acquired company technology to foreign subsidiaries | 0 | 0 | 24,771 | |||||||||
Other | 3,043 | 17,795 | 5,171 | |||||||||
Provision for income taxes | $ 253,283 | $ 203,102 | $ 443,687 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 29, 2019 | Nov. 30, 2018 | |
Deferred tax assets: | ||
Acquired technology | $ 4,568 | $ 9,561 |
Reserves and accruals | 53,796 | 59,100 |
Deferred revenue | 12,036 | 37,690 |
Stock-based compensation | 106,911 | 89,240 |
Net operating loss carryforwards of acquired companies | 137,151 | 209,445 |
Credit carryforwards | 252,074 | 173,748 |
Capitalized expenses | 44,912 | 19,074 |
Benefits relating to tax positions | 47,458 | 51,965 |
Other | 32,794 | 37,160 |
Total gross deferred tax assets | 691,700 | 686,983 |
Deferred tax assets valuation allowance | (244,432) | (174,496) |
Total deferred tax assets | 447,268 | 512,487 |
Deferred tax liabilities: | ||
Depreciation and amortization | 36,458 | 40,425 |
Undistributed earnings of foreign subsidiaries | 51,883 | 17,556 |
Prepaid expenses | 86,279 | 0 |
Acquired intangible assets | 413,146 | 501,208 |
Total deferred tax liabilities | 587,766 | 559,189 |
Net deferred tax liabilities | 140,498 | 46,702 |
Aggregate changes in total gross amount of unrecognized tax benefits [Abstract] | ||
Beginning balance | 196,152 | 172,945 |
Gross increases in unrecognized tax benefits - prior year tax positions | 14,850 | 16,191 |
Gross decreases in unrecognized tax benefits - prior year tax positions | (2,282) | (4,000) |
Gross increases in unrecognized tax benefits - current year tax positions | 18,526 | 60,721 |
Gross decreases in unrecognized tax benefits - current year tax positions | (2,879) | 0 |
Settlements with taxing authorities | (230) | 0 |
Lapse of statute of limitations | (49,813) | (45,922) |
Foreign exchange gains and losses | 987 | 3,783 |
Ending balance | $ 173,337 | $ 196,152 |
Income Taxes (Details Numeric 1
Income Taxes (Details Numeric 1) | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
US Federal statutory tax rate effective before the Tax Cuts and Jobs Act | 35.00% | |||
US Federal statutory rate | 21.00% | 21.00% | ||
US Federal statutory tax rate during adoption of the Tax Cuts and Jobs Act | 22.20% | |||
Provisional transition tax expense on deferred foreign earnings due to Tax Cuts and Jobs Act 2017 | 15.50% | 15.50% | ||
Tax Cuts and Jobs Act of 2017 one-time transition tax other income | 8.00% | 8.00% |
Income Taxes (Details Numeric 2
Income Taxes (Details Numeric 2) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 29, 2019 | Nov. 30, 2018 | |
Valuation Allowance [Abstract] | ||
Deferred tax assets valuation allowance | $ 244,432 | $ 174,496 |
Change in deferred tax asset valuation allowance | 69,900 | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 421,600 | |
Tax credit carry forward | 44,400 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 374,500 | |
Tax credit carry forward | 243,800 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 82,600 | |
Tax credit carry forward | $ 15,100 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward, Expiration date | Jan. 1, 2020 | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward, Expiration date | Jan. 1, 2038 |
Income Taxes (Details Numeric 3
Income Taxes (Details Numeric 3) - USD ($) $ in Millions | Nov. 29, 2019 | Nov. 30, 2018 |
Income Tax Examination [Line Items] | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 25.1 | $ 24.6 |
Minimum | ||
Income Tax Examination [Line Items] | ||
Estimated potential effect in underlying unrecognized tax benefits, maximum | 0 | |
Maximum | ||
Income Tax Examination [Line Items] | ||
Estimated potential effect in underlying unrecognized tax benefits, maximum | $ 20 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Retirement Benefits [Abstract] | |||
Percentage of eligible employee contribution to retirement savings plan | 65.00% | ||
Percentage of employer matching contribution to retirement savings plan | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||
Employer's conribution to retirement savings plan | $ 51.7 | $ 41 | $ 34.3 |
Board of Directors and Certain Executives [Member] | |||
Deferred Compensation Plan for certain executives and Board of Director Members | |||
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 | $ 93.8 | 69 | |
Deferred compensation plan liabilities | $ 108.8 | $ 84 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Subscription Date Fair Value Of Shares | $ 72.98 | $ 53.12 | $ 29.86 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1.5 | 1.8 | 1.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 150.55 | $ 104.94 | $ 77.63 |
Total Intrinsic Value Of Shares Purchased | $ 178.8 | $ 198.9 | $ 97.7 |
ESPP Purchase Price as Percentage of Market Price | 85.00% | ||
Common Stock, Capital Shares Reserved for Future Issuance | 93 | ||
Shares available for grant | 3.8 | ||
Valuation Assumptions Volatility | |||
From | 30.00% | 26.00% | 22.00% |
To | 35.00% | 29.00% | 27.00% |
Valuation Assumptions Risk Free Interest Rate Range | |||
From | 1.78% | 1.54% | 0.62% |
To | 2.47% | 2.52% | 1.41% |
Minimum | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 6 months | 6 months | 6 months |
Maximum | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 2 years | 2 years | 2 years |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Closing market values (per share) | $ 309.53 | $ 250.89 | $ 179.52 | |
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) | $ 253.91 | $ 208.73 | $ 120.33 | |
Total Fair Value Vested Units or Shares | $ 969.6 | $ 837.3 | $ 472 | |
Unit or Share Activity | ||||
Beginning outstanding balance | 8,668 | 9,304 | 8,316 | |
Awarded | 4,598 | 4,012 | 5,018 | |
Released | (3,847) | (3,988) | (3,859) | |
Forfeited | (785) | (660) | (766) | |
Increase due to acquisition | 0 | 0 | 595 | |
Ending outstanding balance | 8,634 | 8,668 | 9,304 | |
Units or Shares Outstanding | ||||
Outstanding Weighted Average Remaining Contractual Life | 1 year 1 month 13 days | 1 year 21 days | 1 year 1 month 9 days | |
Outstanding Intrinsic Value | [1] | $ 2,672.6 | $ 2,174.7 | $ 1,670.2 |
Restricted Stock Units Expected To Vest Shares | 7,987 | 8,049 | 8,608 | |
Vested And Expected To Vest Weighted Average Remaining Contractual Life | 1 year 18 days | 1 year 3 days | 1 year 18 days | |
Restricted Stock Units Expected To Vest Intrinsic Value | [1] | $ 2,472.2 | $ 2,019.5 | $ 1,545.3 |
[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 November 29, 2019 , November 30, 2018 and December 1, 2017 were $309.53 , $250.89 and $179.52 , respectively. |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) - Performance Shares [Member] - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Target Percentage Allowed Under Program | 200.00% | ||||||
Shares Granted [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning outstanding balance | 1,148 | 1,534 | 1,630 | ||||
Awarded | 722 | [1] | 837 | [2] | 1,082 | [3] | |
Achieved | 830 | [1] | 1,050 | [2] | 1,135 | [3] | |
Forfeited | (82) | (173) | (43) | ||||
Ending outstanding balance | 958 | 1,148 | 1,534 | ||||
Maximum Shares Eligible to Receive [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning outstanding balance | 2,296 | 3,068 | 3,261 | ||||
Awarded | 614 | 628 | 1,040 | ||||
Achieved | 830 | 1,053 | 1,147 | ||||
Forfeited | (164) | (347) | (86) | ||||
Ending outstanding balance | 1,916 | 2,296 | 3,068 | ||||
Program 2016 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [1] | 400 | |||||
Program 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [2] | 500 | |||||
Program 2014 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [3] | 600 | |||||
Programs achieved [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total Fair Value Vested Units or Shares | $ 203.8 | $ 208.2 | $ 127.4 | ||||
Program 2016 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | [1] | 200.00% | |||||
Program 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | [2] | 200.00% | |||||
Program 2014 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | [3] | 198.00% | |||||
[1] | Shares awarded during fiscal 2019 include 0.4 million additional shares awarded for the final achievement of the 2016 Performance Share Program which was certified in the first quarter of fiscal 2019. The remaining awarded shares were for the 2019 Performance Share Program. Shares achieved during fiscal 2019 resulted from 200% achievement of target for the 2016 Performance Share Program. | ||||||
[2] | Shares awarded during fiscal 2018 include 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share Program which was certified in the first quarter of fiscal 2018. The remaining awarded shares were for the 2018 Performance Share Program. Shares achieved during fiscal 2018 resulted from 200% achievement of target for the 2015 Performance Share Program. | ||||||
[3] | Shares awarded during fiscal 2017 include 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share Program which was certified in the first quarter of fiscal 2017. The remaining awarded shares were for the 2017 Performance Share Program. Shares achieved during fiscal 2017 resulted from 198% achievement of target for the 2014 Performance Share Program. |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details 3) - Restricted Stock Unit [Member] - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Director [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Non-Employee Director Aggregate Grant Value Per Award | $ 0.3 | ||
Numbers of Days Used to Calculate Average Stock Price | 30 days | ||
Annual Vesting Percentage For Director Grants | 100.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Existing Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Annual equity grants to existing directors | 10 | 11 | 18 |
New Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Initial equity grants to new directors | 1 | 1 | 0 |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Total stock-based compensation costs [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | $ 248,400 | $ 222,400 | $ 153,200 | |
Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 685,097 | 538,714 | 403,940 |
Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 102,608 | 70,848 | 50,532 |
Cost of Revenue - Subscription [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 22,822 | 17,515 | 16,792 | |
Cost of Revenue - Subscription [Member] | Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 5,823 | 4,102 | 180 | |
Cost of Revenue - Services and Support [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 18,535 | 12,111 | 9,602 | |
Cost of Revenue - Services and Support [Member] | Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 7,271 | 8,286 | 6,661 | |
Research and Development [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 338,483 | 253,078 | 161,366 | |
Research and Development [Member] | Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 36,663 | 23,918 | 20,126 | |
Sales and Marketing [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 206,371 | 178,548 | 139,047 | |
Sales and Marketing [Member] | Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 42,405 | 27,252 | 18,592 | |
General and Administrative [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 98,886 | 77,462 | 77,133 | |
General and Administrative [Member] | Stock Purchase Rights and Options [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | $ 10,446 | $ 7,290 | $ 4,973 | |
[1] | During fiscal 2019 , 2018 and 2017 , we recorded tax benefits related to stock-based compensation costs of $248.4 million , $222.4 million and $153.2 million , respectively. |
Stock-Based Compensation (Det_6
Stock-Based Compensation (Details Numeric) shares in Millions, $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Nov. 29, 2019USD ($)shares | Nov. 29, 2019USD ($)purchaseperiodsshares | |
Stock Based Compensation (Numeric) [Abstract] | |||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock based awards (in millions) | $ | $ 1,360 | $ 1,360 | |
Number of years over which unrecognized compensation costs will be recognized | 1 year 10 months 24 days | ||
2019 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 46 | 46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 44.1 | 44.1 | |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 93 | 93 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3.8 | 3.8 | |
Stock Based Compensation (Numeric) [Abstract] | |||
Offering Period | 24 months | ||
Number of purchase periods per offering period | purchaseperiods | 4 | ||
Purchase period | 6 months | ||
Restricted Stock Unit [Member] | Focal Awards [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 3 years | 4 years | |
Vesting percentage per year for focal restricted stock units | 33.33% | 25.00% | 25.00% |
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% | 25.00% | |
Performance Shares [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Maximum percentage of target shares able to receive | 200.00% | ||
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% | ||
Director [Member] | Restricted Stock Unit [Member] | |||
Stock Based Compensation (Numeric) [Abstract] | |||
Award vesting period | 1 year | ||
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% | 100.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Gross unrealized gains on available-for-sale securities [Abstract] | ||||
Beginning balance, unrealized gains on available-for-sale securities | $ 44 | |||
Gross unrealized gains on available for sale securities, increase decrease | 4,594 | |||
Gross unrealized gains on available for sale securities, reclassification adjustments | (171) | |||
Ending balance, unrealized gains on available-for-sale securities | 4,467 | $ 44 | ||
Gross unrealized losses on available-for-sale securities [Abstract] | ||||
Beginning balance, unrealized losses on available-for-sale securities | (25,374) | |||
Gross unrealized losses on available for sale securities increase or decrease | 24,815 | |||
Gross unrealized losses on available for sale securities, reclassification adjustments | 295 | |||
Ending balance, unrealized losses on available-for-sale securities | (264) | (25,374) | ||
Net unrealized gains / losses on available for sale securities | ||||
Beginning Balance, total net unrealized gains (losses) on available-for-sale securities | (25,330) | |||
Net unrealized gains / losses on available-for-sale securities, increase or decrease | 29,409 | (24,464) | $ (2,503) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | 124 | [1] | 10,650 | (947) |
Ending Balance, total net unrealized gains (losses) on available-for-sale securities | 4,203 | (25,330) | ||
Net unrealized gains / losses on derivative instruments designated as hedging instruments | ||||
Beginning balance, net unrealized gains on derivative instruments designated as hedging instruments | 21,732 | |||
Net unrealized gains on derivative instruments designated as hedging instruments, increase or decrease | 294 | 74,080 | 6,917 | |
Net unrealized gains on derivative instruments designated as hedging instruments, reclassification adjustments | (44,334) | [2] | (48,981) | (31,973) |
Ending balance, net unrealized gains on derivative instruments designated as hedging instruments | (22,308) | 21,732 | ||
Cumulative foreign currency translation adjustments [Abstract] | ||||
Beginning balance, cumulative foreign currency translation adjustments | (144,532) | |||
Cumulative foreign currency translation adjustment, increase or decrease | (25,397) | (47,594) | $ 90,287 | |
Cumulative foreign currency translation adjustment, reclassification adjustments | 0 | |||
Ending balance, cumulative foreign currency translation adjustments | (169,929) | (144,532) | ||
Total accumulated other comprehensive income (loss), net of taxes | ||||
Beginning balance, total accumulated other comprehensive income, net of taxes | (148,130) | |||
Accumulated other comprehensive income, increase or decrease | 4,306 | |||
Accumulated other comprehensive income, reclassification adjustments | (44,210) | |||
Ending balance, total accumulated other comprehensive income, net of taxes | $ (188,034) | $ (148,130) | ||
[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 foreign currency hedges are classified in revenue and reclassification adjustments for gains / losses on Treasury lock hedges are classified in interest expense. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Unrealized gains / losses on available-for-sale securities, tax | $ 0 | $ 0 | $ 663 |
Reclassification adjustments, available for sale securities, tax | 0 | 0 | (491) |
Subtotal, available-for-sale securities, tax | 0 | 0 | 172 |
Unrealized gains / losses on derivatives designated as hedging instruments, tax | 6,968 | 0 | 0 |
Reclassification adjustments, derivatives designated as hedging instruments, tax | (383) | (1,946) | (732) |
Subtotal, derivatives designated as hedging instruments, tax | 6,585 | (1,946) | (732) |
Foreign currency translation adjustments, tax | 0 | (1,742) | 3,005 |
Other Comprehensive Income (Loss), Tax | $ 6,585 | $ (3,688) | $ 2,445 |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details Numeric) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 2 Months Ended | 12 Months Ended | |||
Jan. 21, 2020 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | May 21, 2018 | |
Stock Repurchase Programs (Numeric) | |||||
Structured stock repurchase prepayments | $ 2,750,000 | $ 2,050,000 | $ 1,100,000 | ||
Purchase of treasury stock, shares | 9.9 | 8.7 | 8.2 | ||
Repurchased Shares, Average Price | $ 270.23 | $ 230.43 | $ 134.20 | ||
Up-front payments remaining | $ 229,200 | ||||
Stock Repurchase Authority 2018 [Member] | |||||
Stock Repurchase Programs (Numeric) | |||||
Stock Repurchase Program, Authorized Amount | $ 8,000,000 | ||||
Stock Repurchase Authority 2018 [Member] | Subsequent Event [Member] | |||||
Stock Repurchase Programs (Numeric) | |||||
Structured stock repurchase prepayments | $ 850,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 4,250,000 |
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 | ||||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | ||
Earnings Per Share [Abstract] | ||||||||||||
Net income | $ 851,861 | $ 792,763 | $ 632,593 | $ 674,241 | $ 678,240 | $ 666,291 | $ 663,167 | $ 583,076 | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 | |
Shares used to compute basic net income per share | 486,291 | 490,564 | 493,632 | |||||||||
Dilutive potential common shares: | ||||||||||||
Restricted stock units and performance share awards | 4,875 | 7,142 | 7,161 | |||||||||
Stock purchase rights and options | 406 | 137 | 330 | |||||||||
Shares used to compute diluted net income per share | 491,572 | 497,843 | 501,123 | |||||||||
Basic net income per share | $ 1.76 | $ 1.63 | $ 1.30 | $ 1.38 | $ 1.39 | $ 1.36 | $ 1.35 | $ 1.18 | $ 6.07 | $ 5.28 | $ 3.43 | |
Diluted net income per share | $ 1.74 | $ 1.61 | $ 1.29 | $ 1.36 | $ 1.37 | $ 1.34 | $ 1.33 | $ 1.17 | $ 6 | $ 5.20 | $ 3.38 | |
Anti-dilutive potential common shares | [1] | 175 | 209 | 141 | ||||||||
[1] | Potential common stock equivalents not included in the calculation of diluted net income per share as the effect would have been anti-dilutive. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Nov. 29, 2019USD ($) |
Purchase Obligation, Fiscal Year Maturity | |
Purchase Obligations, 2020 | $ 545,042 |
Purchase Obligations, 2021 | 407,528 |
Purchase Obligations, 2022 | 528,266 |
Purchase Obligations, 2023 | 555,658 |
Purchase Obligations, 2024 | 0 |
Purchase Obligations, Thereafter | 0 |
Purchase Obligations, Total | 2,036,494 |
Operating Leases, Future Minimum Payments Receivables | |
Future Minimum Lease Payments, 2020 | 98,200 |
Future Minimum Lease Payments, 2021 | 91,866 |
Future Minimum Lease Payments, 2022 | 81,493 |
Future Minimum Lease Payments, 2023 | 68,539 |
Future Minimum Lease Payments, 2024 | 60,691 |
Future Minimum Lease Payments, Thereafter | 337,903 |
Future Minimum Lease Payments, Total | 738,692 |
Future Minimum Sublease Income, 2020 | 9,523 |
Future Minimum Sublease Income, 2021 | 9,000 |
Future Minimum Sublease Income, 2022 | 6,362 |
Future Minimum Sublease Income, 2023 | 2,327 |
Future Minimum Sublease Income, 2024 | 0 |
Future Minimum Sublease Income, Thereafter | 0 |
Future Minimum Sublease Income, Total | $ 27,212 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty Expense | $ 153.7 | $ 119.1 | $ 100.9 |
Operating leases, rent expense, minimum rentals | $ 170.5 | $ 137.2 | $ 115.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Nov. 29, 2019 | Nov. 30, 2018 |
Debt Instrument [Line Items] | ||
Current debt | $ 3,149,343 | $ 0 |
Long-term debt | 988,924 | 4,124,800 |
Total carrying value of debt | 4,138,267 | 4,124,800 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Current debt | 2,249,784 | 0 |
Long-term debt | 0 | 2,248,427 |
Notes 2020 and 2025 | ||
Debt Instrument [Line Items] | ||
Current debt | 899,767 | 0 |
Long-term debt | 988,924 | 1,886,117 |
Notes 2020 | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Fair value of interest rate swap offsetting carrying value of notes, current | (208) | 0 |
Fair value of interest rate swap offsetting carrying value of notes, long-term | $ 0 | $ (9,744) |
Debt (Details Numeric 1)
Debt (Details Numeric 1) - Term Loan - USD ($) $ in Millions | 12 Months Ended | |
Nov. 29, 2019 | Oct. 17, 2018 | |
Debt Instrument [Line Items] | ||
Term Loan, Amount Outstanding | $ 2,250 | |
Unamortized Debt Issuance Expense | $ 0.7 | |
Debt Instrument, Periodic Payment, Interest | $ 69.9 | |
Scenarioi [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 0.50% | |
Scenarioi [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 1.00% | |
Scenarioii [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to Base Rate to Determine Interest Rate | 0.04% | |
Scenarioii [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to Base Rate to Determine Interest Rate | 0.11% | |
Marketo | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 2,250 | |
Long-term Debt, Term | 18 months |
Debt (Details Numeric 2)
Debt (Details Numeric 2) - USD ($) $ in Millions | Feb. 28, 2010 | Feb. 27, 2015 | Nov. 29, 2019 | Jun. 07, 2019 | Jan. 21, 2015 | Jun. 13, 2014 |
Notes 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 900 | |||||
2020 Notes, Interest Rate, Stated Percentage | 4.75% | |||||
Proceeds from Issuance of Debt | $ 894.5 | |||||
Debt Instrument, Unamortized Discount | 5.5 | |||||
Unamortized Debt Issuance Expense | $ 6.4 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.92% | |||||
Senior Notes, Carrying Value | $ 899.6 | |||||
Notes 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 1,000 | |||||
2020 Notes, Interest Rate, Stated Percentage | 3.25% | |||||
Proceeds from Issuance of Debt | $ 989.3 | |||||
Debt Instrument, Unamortized Discount | $ 10.7 | |||||
Unamortized Debt Issuance Expense | $ 7.9 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.67% | |||||
Notes 2020 and 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes, Carrying Value | 1,890 | |||||
Senior Notes, Fair Value | 1,960 | |||||
Repurchase notes at price of their principal amount plus accrued and unpaid interest | 101.00% | |||||
Debt Instrument, Periodic Payment, Interest | $ 75.3 | |||||
Treasury Lock | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 1,000 | |||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 900 | |||||
Derivative, Fixed Interest Rate | 4.75% |
Debt (Details Numeric 3)
Debt (Details Numeric 3) - Revolving Credit Facility [Member] - USD ($) | Oct. 17, 2018 | Nov. 29, 2019 |
Debt Instrument [Line Items] | ||
Revolving Credit Agreement, Borrowing Capacity | $ 1,000,000,000 | |
Unamortized Debt Issuance Expense | 800,000 | |
Option To Request Additional Commitments On Credit Facility | 500,000,000 | |
Revolving Credit Agreement, Maximum Borrowing Capacity | $ 1,500,000,000 | |
Revolving Credit Agreement, Outstanding Borrowings | $ 0 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment Fee Percentage | 0.04% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment Fee Percentage | 0.11% | |
Scenarioi [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 0.585% | |
Scenarioi [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 1.015% | |
Scenarioii [Member] | ||
Debt Instrument [Line Items] | ||
Percentage Added to Federal Funds Effective Rate to Determine Interest Rate | 0.50% | |
Percentage Added to LIBOR to Determine Interest Rate | 1.00% | |
Scenarioii [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 0.00% | |
Scenarioii [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 0.015% |
Non-Operating Income (Expense_2
Non-Operating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Interest and other income (expense), net: | |||
Interest income | $ 68,321 | $ 92,540 | $ 66,069 |
Foreign exchange gains (losses) | (26,252) | (42,612) | (30,705) |
Realized gains on fixed income investments | 171 | 655 | 1,673 |
Realized losses on fixed income investments | (295) | (11,305) | (725) |
Other | 310 | 258 | 83 |
Interest and other income (expense), net | 42,255 | 39,536 | 36,395 |
Interest expense | (157,214) | (89,242) | (74,402) |
Investment gains (losses), net: | |||
Realized investment gains | 46,141 | 6,128 | 3,279 |
Unrealized investment gains | 5,572 | 0 | 4,274 |
Realized investment losses | (134) | 0 | 0 |
Unrealized investment losses | 0 | (2,915) | 0 |
Investment gains (losses), net | 51,579 | 3,213 | 7,553 |
Non-operating income (expense), net | $ (63,380) | $ (46,493) | $ (30,454) |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | Mar. 01, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Nov. 29, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 2,991,945 | $ 2,834,126 | $ 2,744,280 | $ 2,600,946 | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 11,171,297 | $ 9,030,008 | $ 7,301,505 |
Gross profit | 2,539,962 | 2,418,163 | 2,336,792 | 2,203,660 | 2,105,364 | 1,995,584 | 1,914,016 | 1,820,045 | 9,498,577 | 7,835,009 | 6,291,014 |
Income before income taxes | 957,147 | 834,488 | 710,772 | 702,334 | 699,217 | 701,358 | 690,799 | 702,502 | 3,204,741 | 2,793,876 | 2,137,641 |
Net income | $ 851,861 | $ 792,763 | $ 632,593 | $ 674,241 | $ 678,240 | $ 666,291 | $ 663,167 | $ 583,076 | $ 2,951,458 | $ 2,590,774 | $ 1,693,954 |
Basic net income per share | $ 1.76 | $ 1.63 | $ 1.30 | $ 1.38 | $ 1.39 | $ 1.36 | $ 1.35 | $ 1.18 | $ 6.07 | $ 5.28 | $ 3.43 |
Diluted net income per share | $ 1.74 | $ 1.61 | $ 1.29 | $ 1.36 | $ 1.37 | $ 1.34 | $ 1.33 | $ 1.17 | $ 6 | $ 5.20 | $ 3.38 |
Number of weeks in current fiscal year | P52W | P52W | P52W | ||||||||
Number of weeks in current fiscal quarter | P13W | P13W | P13W | P13W | P13W | P13W | P13W | P13W |