Document and Entity Information
Document and Entity Information (USD $) | |||
3 Months Ended
Mar. 05, 2010 | Apr. 02, 2010
| May. 29, 2009
| |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ADOBE SYSTEMS INC | ||
Entity Central Index Key | 0000796343 | ||
Document Type | 10-Q | ||
Document Period End Date | 2010-03-05 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --12-03 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $12,843,687,113 | ||
Entity Common Stock, Shares Outstanding | 526,422,951 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | ||
In Thousands | Mar. 05, 2010
| Nov. 27, 2009
|
Current assets: | ||
Cash and cash equivalents | $1,589,442 | $999,487 |
Short-term investments | 1,082,942 | 904,986 |
Trade receivables, net of allowances for doubtful accounts of $14,602 and $15,225, respectively | 350,577 | 410,879 |
Deferred income taxes | 67,265 | 77,417 |
Prepaid expenses and other current assets | 86,993 | 80,855 |
Total current assets | 3,177,219 | 2,473,624 |
Property and equipment, net | 386,205 | 388,132 |
Goodwill | 3,494,073 | 3,494,589 |
Purchased and other intangibles, net | 487,605 | 527,388 |
Investment in lease receivable | 207,239 | 207,239 |
Other assets | 192,728 | 191,265 |
Total assets | 7,945,069 | 7,282,237 |
Current liabilities: | ||
Trade payables | 44,188 | 58,904 |
Accrued expenses | 364,437 | 419,646 |
Accrued restructuring | 19,773 | 37,793 |
Income taxes payable | 151,841 | 46,634 |
Deferred revenue | 320,535 | 281,576 |
Total current liabilities | 900,774 | 844,553 |
Long-term liabilities: | ||
Debt | 1,493,546 | 1,000,000 |
Deferred revenue | 39,208 | 36,717 |
Accrued restructuring | 6,104 | 6,921 |
Income taxes payable | 224,273 | 223,528 |
Deferred income taxes | 79,670 | 252,486 |
Other liabilities | 30,074 | 27,464 |
Total liabilities | 2,773,649 | 2,391,669 |
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; 525,782 and 522,657 shares outstanding, respectively | 61 | 61 |
Additional paid-in-capital | 2,339,965 | 2,390,061 |
Retained earnings | 5,427,068 | 5,299,914 |
Accumulated other comprehensive income | 29,109 | 24,446 |
Treasury stock, at cost (75,052 and 78,177 shares, respectively), net of reissuances | (2,624,783) | (2,823,914) |
Total stockholders' equity | 5,171,420 | 4,890,568 |
Total liabilities and stockholders' equity | $7,945,069 | $7,282,237 |
1_Condensed Consolidated Balanc
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | ||
In Thousands, unless otherwise specified | Mar. 05, 2010
| Nov. 27, 2009
|
Current assets: | ||
Allowances for doubtful accounts | $14,602 | $15,225 |
Stockholders' equity: | ||
Preferred stock, par value | 0.0001 | 0.0001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | 0.0001 | 0.0001 |
Common stock, shares authorized | 900,000 | 900,000 |
Common stock, shares issued | 600,834 | 600,834 |
Common stock, shares outstanding | 525,782 | 522,657 |
Treasury stock, shares | 75,052 | 78,177 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) (USD $) | ||
In Thousands, unless otherwise specified | 3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 |
Revenue: | ||
Products | $703,938 | $729,861 |
Subscription | 95,507 | 12,338 |
Services and support | 59,255 | 44,191 |
Total revenue | 858,700 | 786,390 |
Cost of revenue: | ||
Products | 23,510 | 51,435 |
Subscription | 45,735 | 7,483 |
Services and support | 20,123 | 18,435 |
Total cost of revenue | 89,368 | 77,353 |
Gross profit | 769,332 | 709,037 |
Operating expenses: | ||
Research and development | 174,340 | 149,917 |
Sales and marketing | 297,294 | 249,491 |
General and administrative | 91,046 | 74,051 |
Restructuring charges | 11,622 | 12,270 |
Amortization of purchased intangibles | 18,197 | 15,392 |
Total operating expenses | 592,499 | 501,121 |
Operating income | 176,833 | 207,916 |
Non-operating income (expense): | ||
Interest and other income, net | 611 | 13,284 |
Interest expense | (7,695) | (792) |
Investment gains (losses), net | (3,534) | (17,246) |
Total non-operating income (expense), net | (10,618) | (4,754) |
Income before income taxes | 166,215 | 203,162 |
Provision for income taxes | 39,061 | 46,727 |
Net income | $127,154 | $156,435 |
Basic net income per share | 0.24 | 0.3 |
Shares used in computing basic net income per share | 524,173 | 524,268 |
Diluted net income per share | 0.24 | 0.3 |
Shares used in computing diluted net income per share | 532,645 | 527,830 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
In Thousands | 3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 |
Cash flows from operating activities: | ||
Net income | $127,154 | $156,435 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 68,581 | 68,740 |
Stock-based compensation | 64,480 | 45,618 |
Deferred income taxes | (157,932) | 26,518 |
Unrealized losses on investments | 2,331 | 15,784 |
Retirements of property and equipment | 130 | 3,157 |
Tax benefit from employee stock option plans | 35,609 | 2,711 |
Provision for losses on trade receivables | 816 | 2,701 |
Other non-cash items | 5,025 | 1,567 |
Excess tax benefits from stock-based compensation | (7,058) | (84) |
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | ||
Trade receivables, net | 59,601 | 164,484 |
Prepaid expenses and other current assets | 4,180 | 7,859 |
Trade payables | (14,716) | (14,424) |
Accrued expenses | (59,008) | (53,098) |
Accrued restructuring | (18,716) | (16,656) |
Income taxes payable | 106,740 | 4,465 |
Deferred revenue | 42,586 | (50,034) |
Net cash provided by operating activities | 259,803 | 365,743 |
Cash flows from investing activities: | ||
Purchases of short-term investments | (400,054) | (435,171) |
Maturities of short-term investments | 140,611 | 137,900 |
Proceeds from sales of short-term investments | 78,958 | 189,432 |
Purchases of property and equipment | (25,547) | (15,916) |
Purchases of long-term investments and other assets | (5,747) | (9,201) |
Proceeds from sale of long-term investments | 719 | 1,394 |
Other | 2,341 | |
Net cash used for investing activities | (208,719) | (131,562) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (20) | (13) |
Proceeds from issuance of treasury stock | 49,824 | 28,604 |
Excess tax benefits from stock-based compensation | 7,058 | 84 |
Proceeds from debt | 1,493,439 | |
Repayment of debt | (1,000,000) | |
Debt issuance costs | (10,142) | |
Net cash provided by financing activities | 540,159 | 28,675 |
Effect of foreign currency exchange rates on cash and cash equivalents | (1,288) | (381) |
Net increase in cash and cash equivalents | 589,955 | 262,475 |
Cash and cash equivalents at beginning of period | 999,487 | 886,450 |
Cash and cash equivalents at end of period | 1,589,442 | 1,148,925 |
Supplemental disclosures: | ||
Cash paid for income taxes, net of refunds | 54,664 | 4,631 |
Cash paid for interest | $2,617 | $892 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
3 Months Ended
Mar. 05, 2010 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We have prepared the accompanying unaudited Condensed Consolidated Financial Statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In managements opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended November27, 2009 on file with the SEC. Our first quarter fiscal 2010 financial results benefitted from an extra week in the quarter due to our 52/53week financial calendar whereby fiscal 2010 is a 53-week year compared with fiscal 2009 which was a 52-week year. With the exception of the adoption of an accounting pronouncement related to revenue recognition, discussed below, there have been no material changes to our significant accounting policies, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended November27, 2009. Recent Accounting Pronouncements There have also been no new recent accounting pronouncements or changes in accounting pronouncements during the three months ended March5, 2010, with the exception of those discussed below, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended November27, 2009, that are of significance, or potential significance, to us. Revenue Recognition In October2009, the FASB amended the accounting standards for certain multiple deliverable revenue arrangements to: provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; require an entity to allocate revenue in an arrangement using the best estimated selling price (BESP) of deliverables if a vendor does not have vendor-specific objective evidence (VSOE) of selling price or third-party evidence (TPE) of selling price; and eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method. We elected to early adopt this accounting guidance at the beginning of our first quarter of fiscal 2010 on a prospective basis for applicable transactions originating or materially modified after November27, 2009. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a |
Acquisitions
Acquisitions | |
3 Months Ended
Mar. 05, 2010 | |
Acquisitions [Abstract] | |
ACQUISITIONS | NOTE 2. ACQUISITIONS On October23, 2009, we completed the acquisition of Omniture, Inc. (Omniture), an industry leader in Web analytics and online business optimization based in Orem, Utah, for approximately $1.8billion. Under the terms of the agreement, we completed our tender offer to acquire all of the outstanding shares of Omniture common stock at a price of $21.50 per share, net to the seller in cash, without interest. Acquiring Omniture accelerates our strategy of delivering more effective solutions for assembling, delivering, targeting and optimizing Web content and applications. The transaction was accounted for using the purchase method of accounting. We have included the financial results of Omniture in our Condensed Consolidated Financial Statements beginning on the acquisition date. Following the closing, we integrated Omniture as a new reportable segment for financial reporting purposes. The total purchase price for Omniture was approximately $1.8billion which consisted of $1.7 billion in cash paid for outstanding common stock, $85.0million for the estimated fair value of earned stock options and restricted stock units assumed and converted and $14.4million for direct transaction costs. The preliminary allocation of the purchase price was based upon a preliminary valuation and our estimates and assumptions. In the first quarter of fiscal 2010, adjustments were made to the preliminary purchase price allocation to reflect the finalization of the valuation of intangible assets and deferred revenue. Additional adjustments were also made to restructuring liabilities, taxes and residual goodwill. Of the total purchase price, a preliminary estimate of $1.3billion has been allocated to goodwill, $436.1million to identifiable intangible assets, $35.0million to net tangible assets and $11.7million to restructuring liabilities. We also expensed $4.6million for in-process research and development charges. The primary areas of the purchase price allocation that are not yet finalized relate to certain restructuring liabilities, income and non-income based taxes and residual goodwill. The following table presents the results of Adobe and Omniture for the three months ended February27, 2009, on a pro forma basis, as though the companies had been combined as of the beginning fiscal 2009. 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 at the beginning of fiscal 2009 or of results that may occur in the future. Three Months Ended February 27, 2009 Net revenues $ 843,706 Net income $ 120,929 Basic net income per share $ 0.23 Shares used in computing basic net income per share 524,268 Diluted net income per share $ 0.23 Shares used in computing diluted net income per share 529,305 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | |
3 Months Ended
Mar. 05, 2010 | |
Cash, Cash Equivalents and Short-Term Investments [Abstract] | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | NOTE 3. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify all of our cash equivalents and short-term investments as available-for-sale. These investments are free of trading restrictions. 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 Condensed Consolidated Balance Sheets. Gains and losses are recognized when realized in our Condensed 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 earnings. Gains and losses are determined using the specific identification method. Cash, cash equivalents and short-term investments consisted of the following as of March5, 2010 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 81,729 $ $ $ 81,729 Cash equivalents: Money market mutual funds 1,444,137 1,444,137 Bank time deposits 47,701 47,701 United States treasury notes 6,999 6,999 United States local government municipal bonds 1,500 1,500 Government guaranteed bonds(1) 4,999 4,999 Corporate bonds 2,379 (2 ) 2,377 Total cash equivalents 1,507,715 (2 ) 1,507,713 Total cash and cash equivalents 1,589,444 (2 ) 1,589,442 Short-term investments: United States treasury notes 392,963 2,243 (12 ) 395,194 United States government agency bonds 87,626 257 (13 ) 87,870 United States local government municipal bonds 88,451 4 88,455 Government guaranteed bonds(1) 214,081 2,641 (10 ) 216,712 Corporate bonds 240,423 3,783 (47 ) 244,159 Obligations of foreign governments 30,869 307 31,176 Multi-lateral government agencies bonds 11,333 189 11,522 Subtotal 1,065,746 9,424 (82 ) 1,075,088 Other marketable equity securities 2,508 5,346 7,854 Total short-term investments 1,068,254 14,770 (82 ) 1,082,942 Total cash, cash equivalents and short-term investments $ 2,657,698 $ 14,770 $ (84 ) $ 2,672,384 Cash, cash equivalents and short-term investments consisted of the following as of November 27, 2009 (in thousands): |
Fair Value Measurements
Fair Value Measurements | |
3 Months Ended
Mar. 05, 2010 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4. FAIR VALUE MEASUREMENTS We measure certain financial assets and liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs at March5, 2010 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 1,491,837 $ 1,491,837 $ $ Fixed income available-for-sale securities(2) 1,090,964 1,090,964 Available-for-sale equity securities(3) 7,854 7,854 Total current assets 2,590,655 1,499,691 1,090,964 Non-current assets: Investments of limited partnership(4) 33,855 33,855 Foreign currency derivatives(5) 18,645 18,645 Deferred compensation plan assets(4): Money market funds 716 716 Equity and fixed income mutual funds 8,456 8,456 Subtotal for deferred compensation plan assets 9,172 716 8,456 Total non-current assets 61,672 716 27,101 33,855 Total assets $ 2,652,327 $ 1,500,407 $ 1,118,065 $ 33,855 Liabilities: Foreign currency derivatives(6) $ 462 $ $ 462 $ Total liabilities $ 462 $ $ 462 $ We measure certain financial assets and liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs at November27, 2009 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 924,378 $ 924,378 $ $ Fixed income available-for-sale securities(2) 899,960 899,960 Available-for-sale equity securities(3) 5,026 5,026 Total current assets 1,829,364 929,404 899,960 Non-current assets: Investments of limited partnership(4) 37,121 37,121 Foreign currency derivatives(5) 4,307 4,307 Deferred compensation plan assets(4): Money market funds |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | |
3 Months Ended
Mar. 05, 2010 | |
Derivative and Hedges Activities [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 5. DERIVATIVES AND HEDGING ACTIVITIES In countries outside the U.S., we transact business in U.S. dollars and in various other currencies. Therefore, we are subject to exposure from movements in foreign currency rates. We may use foreign exchange option contracts or forward contracts to hedge certain operational (cash flow) exposures resulting from changes in foreign currency exchange rates. These foreign exchange contracts, carried at fair value, may have maturities between one and twelve months. The maximum original duration of any contract is twelve months. We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. We recognize derivative instruments and hedging activities as either assets or liabilities on the balance sheet and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income on our Condensed Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income to interest and other income, net on our Condensed Consolidated Statements of Income at that time. We also hedge our net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates. These derivative instruments hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded to interest and other income, net on our Condensed Consolidated Statement of Income. These derivative instruments do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. We mitigate concentration of risk related to foreign currency hedges as well as interest rate hedges through a policy that establishes counterparty limits. The bank counterparties in these contracts expose us to credit-related losses in the event of their nonperformance. However, to mitigate that risk, we only contract with counterparties who meet our minimum requirements under our counterparty risk assessment process. In addition, our hedging policy establishes maximum limits for each counterparty. W |
Goodwill and Purchased and Othe
Goodwill and Purchased and Other Intangibles | |
3 Months Ended
Mar. 05, 2010 | |
Goodwill and Purchased and Other Intangibles [Abstract] | |
GOODWILL AND PURCHASED AND OTHER INTANGIBLES | NOTE 6. GOODWILL AND PURCHASED AND OTHER INTANGIBLES Goodwill as of March5, 2010 and November27, 2009 was $3.494billion and $3.495billion, respectively. The change includes adjustments to our Omniture purchase price allocation in addition to foreign currency translation adjustments. Purchased and other intangible assets subject to amortization as of March5, 2010 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 220,272 $ (31,094 ) $ 189,178 Localization $ 10,948 $ (2,175 ) $ 8,773 Trademarks 172,020 (112,820 ) 59,200 Customer contracts and relationships 364,369 (168,392 ) 195,977 Other intangibles 47,162 (12,685 ) 34,477 Total other intangible assets $ 594,499 $ (296,072 ) $ 298,427 Purchased and other intangible assets $ 814,771 $ (327,166 ) $ 487,605 Purchased and other intangible assets subject to amortization as of November27, 2009 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 586,952 $ (387,731 ) $ 199,221 Localization $ 20,284 $ (15,222 ) $ 5,062 Trademarks 172,030 (104,953 ) 67,077 Customer contracts and relationships 363,922 (159,450 ) 204,472 Other intangibles 54,535 (2,979 ) 51,556 Total other intangible assets $ 610,771 $ (282,604 ) $ 328,167 Purchased and other intangible assets $ 1,197,723 $ (670,335 ) $ 527,388 During the three months ended March5, 2010, purchased and other intangible assets from prior acquisitions, primarily Macromedia, became fully amortized and were removed from the balance sheet. Amortization expense related to purchased and other intangible assets was $36.9million and $39.0 million for the three months ended March5, 2010 and February27, 2009, respectively. Of these amounts, $18.7million and $23.6million was included in cost of sales for the three months ended March5, 2010 and February27, 2009, respectively. As of March5, 2010, we expect amortization expense in future periods to be as follows (in thousands): Other Purchased Intangible Fiscal Year Technology Assets Remainder of 2010 $ 26,968 $ 74,161 2011 32,573 54,693 2012 30,967 22,407 2013 27,008 21,681 2014 25,293 21,281 Thereafter 46,369 104,204 Total expected amortization expense $ 189,178 $ 298,427 |
Other Assets
Other Assets | |
3 Months Ended
Mar. 05, 2010 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 7. OTHER ASSETS Other assets as of March5, 2010 and November27, 2009 consisted of the following (in thousands): 2010 2009 Acquired rights to use technology $ 81,299 $ 84,313 Investments 60,760 63,526 Security and other deposits 11,067 11,692 Prepaid royalties 11,536 12,059 Debt issuance costs 10,598 Deferred compensation plan assets 9,172 9,045 Restricted cash 2,308 4,650 Prepaid land lease 3,200 3,209 Prepaid rent 1,229 1,377 Other 1,559 1,394 Other assets $ 192,728 $ 191,265 Included in investments are our indirect investments through our limited partnership interest in Adobe Ventures of approximately $33.9million and $37.1million as of March5, 2010 and November 27, 2009, respectively. We consolidate Adobe Ventures in accordance with the provisions for consolidating variable interest entities as we have determined we have the power to direct the activities that most significantly impact the entitys economic performance and we have the obligation to absorb losses or the right to receive benefits through our limited partnership interest in Adobe Ventures. The partnership is controlled by Granite Ventures, an independent venture capital firm and sole general partner of Adobe Ventures. We are the primary beneficiary of Adobe Ventures and bear virtually all of the risks and rewards related to our ownership. Our investment in Adobe Ventures does not have a significant impact on our consolidated financial position, results of operations or cash flows. The primary purpose of our limited partnership interest in Adobe Ventures is to invest in securities of private companies which either operate in, or are expected to operate in, industries where technology and business model trends are expected to have an impact on our core business. Our maximum capital commitment to Adobe Ventures is $104.6million, of which, approximately $95.0 million has been invested. Adobe Ventures carries its investments in equity securities at estimated fair value and investment gains and losses are included in our Condensed Consolidated Statements of Income. Substantially all of the investments held by Adobe Ventures at March5, 2010 and November27, 2009 are not publicly traded and, therefore, there is no established market for these securities. In order to determine the fair value of these investments, we use the most recent round of financing involving new non-strategic investors or estimates of fair value made by Granite Ventures. We evaluate the fair value of these investments held by Adobe Ventures on a regular basis. This evaluation includes, but is not limited to, reviewing each companys cash position, financing needs, earnings and revenue outlook, operational performance, management and ownership changes and competition. In the case of privately-held companies, this evaluation is based on information that we request from these companies. This information is not subject to the same disclosure regulations as U.S. publicly traded companies and as such, t |
Accrued Expenses
Accrued Expenses | |
3 Months Ended
Mar. 05, 2010 | |
Accrued Expenses [Abstract] | |
ACCRUED EXPENSES | NOTE 8. ACCRUED EXPENSES Accrued expenses as of March5, 2010 and November27, 2009 consisted of the following (in thousands): 2010 2009 Accrued compensation and benefits $ 133,044 $ 164,352 Taxes payable 9,474 11,879 Sales and marketing allowances 28,419 32,774 Other 193,500 210,641 Accrued expenses $ 364,437 $ 419,646 Other primarily includes general corporate accruals for corporate marketing programs, local and regional expenses, and technical support. Other is also comprised of deferred rent related to office locations with rent escalations, accrued royalties, foreign currency derivatives and accrued interest on our outstanding debt. |
Income Taxes
Income Taxes | |
3 Months Ended
Mar. 05, 2010 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 9. INCOME TAXES The gross liability for unrecognized tax benefits at March5, 2010 was $217.5million, exclusive of interest and penalties. If the total unrecognized tax benefits at March5, 2010 were recognized in the future, $200.2million of unrecognized tax benefits would decrease the effective tax rate, which is net of an estimated $17.3million federal benefit related to deducting certain payments on future tax returns. As of March5, 2010, the combined amount of accrued interest and penalties related to tax positions taken on our tax returns was approximately $16.2million. This amount is included in non-current income taxes payable. The timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. These events could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities. We believe that within the next 12months, 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, we can only determine a range of estimated potential decreases in underlying unrecognized tax benefits equal to $0 to approximately $13 million. These amounts would decrease income tax expense as a result of our adoption of new accounting standards related to business combinations in fiscal 2010. In December2009, we repatriated $700million of undistributed foreign earnings for which a deferred tax liability had been previously accrued. As such, a long-term deferred tax liability of approximately $200million was reclassified from deferred income taxes to income taxes payable. |
Stock Based Compensation
Stock Based Compensation | |
3 Months Ended
Mar. 05, 2010 | |
Stock-Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 10. STOCK-BASED COMPENSATION The assumptions used to value option grants during the three months ended March5, 2010 and February27, 2009 were as follows: 2010 2009 Expected life (in years) 3.8 4.1 3.7 3.8 Volatility 31 36 % 50 57 % Risk free interest rate 1.76 1.97 % 1.16 1.40 % The expected term of employee stock purchase plan (ESPP) shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three months ended March5, 2010 and February27, 2009 were as follows: 2010 2009 Expected life (in years) 0.5 2.0 0.5 2.0 Volatility 32 % 49 57 % Risk free interest rate 0.18 1.09 % 0.27 0.88 % Summary of Stock Options Option activity for the three months ended March5, 2010 and the fiscal year ended November 27, 2009 was as follows (in thousands): 2010 2009 Beginning outstanding balance 41,251 40,704 Granted 3,027 5,758 Exercised (2,300 ) (7,560 ) Cancelled (622 ) (3,160 ) Increase due to acquisition 5,509 Ending outstanding balance 41,356 41,251 Information regarding stock options outstanding at March5, 2010 and February27, 2009 is summarized below: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Life Value(*) (thousands) Price (years) (millions) 2010 Options outstanding 41,356 $ 30.27 4.29 $ 254.7 Options vested and expected to vest 39,258 $ 30.32 4.19 $ 241.2 Options exercisable 26,270 $ 30.55 3.39 $ 158.9 2009 Options outstanding 42,773 $ 28.96 4.12 $ 18.8 Options vested and expected to vest 40,561 $ 28.90 4.00 $ 18.8 Options exercisable 27,635 $ 27.40 3.19 $ 18.8 (*) The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of March5, 2010 and February27, 2009 were $35.16 and $16.70, respectively. Summary of Employee Stock Purchase Plan Shares Employees purchased 1.3million shares at an average price of $20.20 and 1.2million shares at an average price of $18.10 for the three months ended March5, 2010 and February27, 2009, respectively. The intrinsic value of shares purchased during the three months ended March5, 2010 and February27, 2009 was $21.4million and $3.7million, respectively. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Summary of Restricted Stock U |
Restructuring Charges
Restructuring Charges | |
3 Months Ended
Mar. 05, 2010 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING CHARGES | NOTE 11. RESTRUCTURING CHARGES Fiscal 2009 Restructuring Plan On November10, 2009, in order to appropriately align our costs in connection with our fiscal 2010 operating plan, we initiated a restructuring plan consisting of reductions of up to approximately 630 full-time positions worldwide and the consolidation of facilities. In connection with this restructuring plan, in the fourth quarter of fiscal 2009, we recorded restructuring charges of approximately $25.5million related to ongoing termination benefits for the elimination of approximately 340 of these full-time positions worldwide. As of November27, 2009, approximately $2.5million was paid. The restructuring activities related to this program affected only those employees that were associated with Adobe prior to the acquisition of Omniture on October23, 2009. In the first quarter of fiscal 2010, we continued to implement restructuring activities under this program. We vacated approximately 8,000 square feet of sales facilities in Australia, Canada, Denmark and the U.S. We accrued $0.4million for the fair value of our future contractual obligations under these operating leases and we expect to pay these facility related liabilities through fiscal 2011. We also recorded charges of $11.9million for termination benefits for the elimination of approximately 159 of the remaining full-time positions expected to be terminated worldwide. The remaining accrual associated with these ongoing termination benefits is expected to be paid during fiscal 2010. The following table sets forth a summary of restructuring activities during the three months ended March5, 2010 related to our fiscal 2009 Restructuring Plan (in thousands): November 27, Costs Cash Other March 5, 2009 Incurred Payments Adjustments 2010 Termination benefits $ 22,984 $ 11,925 $ (24,035 ) $ (1,118 ) $ 9,756 Cost of closing redundant facilities 377 (29 ) 2 350 Total $ 22,984 $ 12,302 $ (24,064 ) $ (1,116 ) $ 10,106 Accrued restructuring charges of approximately $10.1million at March5, 2010, was recorded in accrued restructuring, current on our Condensed Consolidated Balance Sheets. Total costs incurred to date and expected to be incurred for closing redundant facilities are $0.4million and $15.1 million, respectively. We expect to pay the accrued termination benefits and facilities-related liabilities through fiscal 2010 and fiscal 2011, respectively. Included in the other adjustments column are $0.7million related to changes to previous estimates and $0.4million related to foreign currency translation adjustments. Omniture Restructuring Plan We completed our acquisition of Omniture on October23, 2009. In the fourth quarter of fiscal 2009, we initiated a plan to restructure the pre-merger operations of Omniture to eliminate certain duplicative activities, focus our resources on future growth opportunities and reduce our cost structure. In connection with this restructuring plan, we accrued a tota |
Stockholders Equity
Stockholders Equity | |
3 Months Ended
Mar. 05, 2010 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 12. STOCKHOLDERS EQUITY To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from stock issuances, we repurchase shares in the open market and also enter into structured repurchases with third-parties. We did not enter into any new structured repurchase agreements during the three months ended March5, 2010 and February27, 2009. We have previously entered into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the Volume Weighted Average Price (VWAP) of our common stock over a specified period of time. We only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us. The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount. During the three months ended March5, 2010, we repurchased approximately 1.7million shares at an average price of $36.21 through structured repurchase agreements entered into during fiscal 2009. During the three months ended February27, 2009, we repurchased approximately 5.0 million shares at an average price of $22.79 through structured repurchase agreements entered into during fiscal 2008. As of March5, 2010 and November27, 2009, the prepayments were classified as treasury stock on our Condensed Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by the financial statement date are excluded from the denominator in the computation of earnings per share. As of March5, 2010, there were no up-front payments remaining under the agreements. As of February27, 2009, approximately $19.7million of up-front payments remained under the agreements. Subsequent to March5, 2010, as part of our stock repurchase program, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $250.0million. This amount will be classified as treasury stock on our Condensed Consolidated Balance Sheets. See Note 19 for further discussion of our stock repurchase program. |
Comprehensive Income
Comprehensive Income (Loss) | |
3 Months Ended
Mar. 05, 2010 | |
Comprehensive Income (Loss) [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | NOTE 13. COMPREHENSIVE INCOME (LOSS) The following table sets forth the activity for each component of comprehensive income, net of related taxes, for the three months ended March5, 2010 and February27, 2009 (in thousands): 2010 2009 Net income $ 127,154 $ 156,435 Other comprehensive income (loss): Available-for-sale securities: Unrealized losses on available-for-sale securities, net of taxes (758 ) (1,969 ) Reclassification adjustment for gains on available-for-sale securities recognized during the period (344 ) (1,310 ) Subtotal available-for-sale securities (1,102 ) (3,279 ) Derivative instruments: Unrealized gains (losses)on derivative instruments 10,364 (5,450 ) Reclassification adjustment for gains on derivative instruments recognized during the period (20,476 ) Subtotal derivative instruments 10,364 (25,926 ) Foreign currency translation adjustments (4,599 ) (2,922 ) Other comprehensive income (loss) 4,663 (32,127 ) Total comprehensive income, net of taxes $ 131,817 $ 124,308 The following table sets forth the components of accumulated other comprehensive income, net of related taxes, as of March5, 2010 and November27, 2009 (in thousands): 2010 2009 Net unrealized gains on available-for-sale securities: Unrealized gains on available-for-sale securities $ 12,798 $ 13,818 Unrealized losses on available-for-sale securities (84 ) (2 ) Total net unrealized gains on available-for-sale securities 12,714 13,816 Net unrealized gains (losses)on derivative instruments 10,358 (5 ) Cumulative foreign currency translation adjustments 6,037 10,635 Total accumulated other comprehensive income, net of taxes $ 29,109 $ 24,446 |
Net Income Per Share
Net Income Per Share | |
3 Months Ended
Mar. 05, 2010 | |
Net Income Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 14. NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share for the three months ended March5, 2010 and February27, 2009 (in thousands, except per share data): 2010 2009 Net income $ 127,154 $ 156,435 Shares used to compute basic net income per share 524,173 524,268 Dilutive potential common shares: Unvested restricted stock and performance share awards 3,078 854 Stock options 5,394 2,708 Shares used to compute diluted net income per share 532,645 527,830 Basic net income per share $ 0.24 $ 0.30 Diluted net income per share $ 0.24 $ 0.30 For the three months ended March5, 2010, options to purchase approximately 17.5million shares of common stock with exercise prices greater than the average fair market value of our stock of $35.13 were not included in the calculation because the effect would have been anti-dilutive. Comparatively, for the three months ended February27, 2009, options to purchase approximately 32.2 million shares of common stock with exercise prices greater than the average fair market value of our stock of $20.98 were not included in the calculation because the effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 05, 2010 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15. COMMITMENTS AND CONTINGENCIES Lease Commitments We occupy three office buildings in San Jose, California where our corporate headquarters are located. We reference these office buildings as the Almaden Tower and the East and West Towers. In August2004, we extended the lease agreement for our East and West Towers for an additional five years with an option to extend for an additional five years solely at our election. In June 2009, we submitted notice to the lessor that we intended to exercise our option to renew this agreement for an additional five years effective August2009. As stated in the original lease agreement, in conjunction with the lease renewal, we were required to obtain a standby letter of credit for approximately $16.5million which enabled us to secure a lower interest rate and reduce the number of covenants. As defined in the lease agreement, the standby letter of credit primarily represents the lease investment balance equity which is callable in the event of default. In March 2007, the Almaden Tower lease was extended for five years, with a renewal option for an additional five years solely at our election. As part of the lease extensions, we purchased the lease receivable from the lessor of the East and West Towers for $126.8million and a portion of the lease receivable from the lessor of the Almaden Tower for $80.4million, both of which are recorded as investments in lease receivables on our Condensed Consolidated Balance Sheets. This purchase may be credited against the residual value guarantee if we purchase the properties or will be repaid from the sale proceeds if the properties are sold to third-parties. Under the agreement for the East and West Towers and the agreement for the Almaden Tower, we have the option to purchase the buildings at anytime during the lease term for approximately $143.2million and $103.6million, respectively. The residual value guarantees under the East and West Towers and the Almaden Tower obligations are $126.8million and $89.4million, respectively. These two leases are both subject to standard covenants including certain financial ratios that are reported to the lessors quarterly. As of March5, 2010, we were in compliance with all covenants. In the case of a default, the lessor may demand we purchase the buildings for an amount equal to the lease balance, or require that we remarket or relinquish the buildings. Both leases qualify for operating lease accounting treatment and, as such, the buildings and the related obligations are not included on our Condensed Consolidated Balance Sheets. We utilized this type of financing in order to access bank-provided funding at the most favorable rates and to provide the lowest total cost of occupancy for the headquarter buildings. At the end of the lease term, we can extend the lease for an additional five year term, purchase the buildings for the lease balance, remarket or relinquish the buildings. If we choose to remarket or are required to do so upon relinquishing the buildings, we are bound to arrange the sale of the buildings to an unrelated party and will be required to pay the lessor any shortfall between the net remark |
Debt
Debt | |
3 Months Ended
Mar. 05, 2010 | |
Debt [Abstract] | |
DEBT | NOTE 16. DEBT Notes In February2010, we issued $600.0million of 3.25% senior notes due February1, 2015 (the 2015 Notes) and $900.0million of 4.75% senior notes due February1, 2020 (the 2020 Notes and, together with the 2015 Notes, the Notes). Our proceeds were approximately $1.494billion which is net of an issuance discount of $6.561million. The Notes rank equally with our other unsecured and unsubordinated indebtedness. In addition, we incurred issuance costs of approximately $10.7 million. Both the discount and issuance costs are being amortized to interest expense over the respective terms of the Notes using the effective interest method. Interest is payable semi-annually, in arrears, on February 1 and August1, commencing on August1, 2010. The proceeds from this offering are available for general corporate purposes, including repayment of any balance outstanding on our credit facility. As of March5, 2010, the amount outstanding under the Notes was $1.494billion, which is included in long-term liabilities on our Condensed Consolidated Balance Sheets. Based on quoted market prices, the fair value of the Notes was approximately $1.502billion as of March5, 2010. 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 March5, 2010, we were in compliance with all the covenants. Credit Agreement In August2007, we entered into an Amendment to our Credit Agreement dated February2007 (the Amendment), which increased the total senior unsecured revolving facility from $500.0million to $1.0billion. The Amendment also permits us to request one-year extensions effective on each anniversary of the closing date of the original agreement, subject to the majority consent of the lenders. We also retain an option to request an additional $500.0million in commitments, for a maximum aggregate facility of $1.5billion. In February2008, we entered into a Second Amendment to the Credit Agreement dated February 26, 2008, which extended the maturity date of the facility by one year to February16, 2013. The facility would terminate at this date if no additional extensions have been requested and granted. All other terms and conditions remain the same. The facility contains a financial covenant requiring us not to exceed a certain maximum leverage ratio. At our option, borrowings under the facility accrue interest based on either the London interbank offered rate (LIBOR) for one, two, three or six months, or longer periods with bank consent, plus a margin according to a pricing grid tied to this financial covenant, or a base rate. The margin is set at rates between 0.20% and 0.475%. Commitment fees are payable on the facility at rates between 0.05% and 0.15% per year based on the same pricing grid. The facility is available |
Non-Operating Income
Non-Operating Income (Expense) | |
3 Months Ended
Mar. 05, 2010 | |
Non-Operating Income (Expense) [Abstract] | |
NON-OPERATING INCOME (EXPENSE) | NOTE 17. NON-OPERATING INCOME (EXPENSE) Non-operating income (expense)for the three months ended March5, 2010 and February27, 2009 included the following (in thousands): 2010 2009 Interest and other income, net: Interest income $ 5,105 $ 11,118 Foreign exchange (losses)gains (5,084 ) 634 Realized gains on fixed income investment 342 1,312 Realized losses on fixed income investment (1 ) Other, net 248 221 Interest and other income, net $ 611 $ 13,284 Interest expense $ (7,695 ) $ (792 ) Investment gains (losses), net: Realized investment gains $ 183 $ 103 Unrealized investment gains(*) 222 124 Realized investment losses (405 ) (1,295 ) Unrealized investment losses (3,534 ) (16,178 ) Investment gains (losses), net $ (3,534 ) $ (17,246 ) Non-operating income (expense), net $ (10,618 ) $ (4,754 ) (*) During the three months ended March5, 2010 and February27, 2009, we recorded $0.2 million and $0.9million, respectively, in unrealized holding gains and losses associated with our deferred compensation plan assets (classified as trading securities). |
Segments
Segments | |
3 Months Ended
Mar. 05, 2010 | |
Segments [Abstract] | |
SEGMENTS | NOTE 18. SEGMENTS We have the following reportable segments: Creative Solutions, Knowledge Worker, Enterprise, Omniture, Platform, and Print and Publishing. Our Creative Solutions segment focuses on delivering a complete professional line of integrated tools for a full range of creative and developer tasks to an extended set of customers. The Knowledge Worker segment focuses on the needs of knowledge worker customers, providing essential applications and services to help them share information and collaborate. This segment contains revenue generated by our Acrobat family of products. Our Enterprise segment provides server-based Customer Interaction Solutions for the enterprise and collaboration and conferencing solutions. This segment contains revenue generated by our LiveCycle and Adobe Connect lines of products. Our Omniture segment provides web analytics and online business optimization products and services to manage and enhance online, offline and multi-channel business initiatives. The Platform segment includes client and developer technologies, such as Adobe Flash Player, Adobe Flash Lite, Adobe AIR, Adobe Flex and Adobe Flash Builder, ColdFusion, and also encompasses products and technologies created and managed in other Adobe segments. Finally, the Print and Publishing segment addresses market opportunities ranging from the diverse publishing needs of technical and business publishing, to our legacy type and OEM printing businesses. Effective in the first quarter of fiscal 2010, to better align our marketing efforts and go-to-market strategies, we moved management responsibility for the Connect Solutions product line from our Knowledge Worker segment to our Enterprise segment. Prior year information in the table below has been reclassified to reflect this change. We report segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our chief operating decision maker reviews revenue and gross margin information for each of our reportable segments. Operating expenses are not reviewed on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. Creative Knowledge Print and (in thousands) Solutions Worker Enterprise Omniture(*) Platform Publishing Total Three months ended March5, 2010 Revenue $ 432,023 $ 165,862 $ 79,900 $ 87,672 $ 46,636 $ 46,607 $ 858,700 Cost of revenue 22,835 4,641 15,243 42,085 2,227 2,337 89,368 Gross profit $ 409,188 $ 161,221 $ 64,657 $ 45,587 $ 44,409 $ 44,270 $ 769,332 Gross profit as a percentage of revenue 95 % 97 % 81 % 52 % 95 % 95 % 90 % |
Subsequent Events
Subsequent Events | |
3 Months Ended
Mar. 05, 2010 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19. SUBSEQUENT EVENTS Subsequent to March5, 2010, as part of our stock repurchase program, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $250.0million. This amount will be classified as treasury stock on our Condensed Consolidated Balance Sheets. See Note 12 for further discussion of our stock repurchase program. |
3_Summary of Significant Accoun
Summary of Significant Accounting Policies (Policies) | |
3 Months Ended
Mar. 05, 2010 | |
Summary of Significant Accounting Policies (Policies) [Abstract] | |
Basis of Accounting | We have prepared the accompanying unaudited Condensed Consolidated Financial Statements pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In managements opinion, we have made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended November27, 2009 on file with the SEC. Our first quarter fiscal 2010 financial results benefitted from an extra week in the quarter due to our 52/53week financial calendar whereby fiscal 2010 is a 53-week year compared with fiscal 2009 which was a 52-week year. |
Significant Accounting Policies | With the exception of the adoption of an accounting pronouncement related to revenue recognition, discussed below, there have been no material changes to our significant accounting policies, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended November27, 2009. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have also been no new recent accounting pronouncements or changes in accounting pronouncements during the three months ended March5, 2010, with the exception of those discussed below, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended November27, 2009, that are of significance, or potential significance, to us. Revenue Recognition In October2009, the FASB amended the accounting standards for certain multiple deliverable revenue arrangements to: provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; require an entity to allocate revenue in an arrangement using the best estimated selling price (BESP) of deliverables if a vendor does not have vendor-specific objective evidence (VSOE) of selling price or third-party evidence (TPE) of selling price; and eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method. We elected to early adopt this accounting guidance at the beginning of our first quarter of fiscal 2010 on a prospective basis for applicable transactions originating or materially modified after November27, 2009. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of software, upgrades, hosting services, maintenance and support, and consulting. For multiple element arrangements that contain non-software related elements, for example our software as a service (SaaS) offerings, we allocate revenue to each non-software element based upon the relative selling price of each and if software and software-related elements are also included in the arrangement, to those elements as a group based on our BESP for the group. When applying the relative selling price method, we determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use our BESP for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria is met for each element. The manner in which we account for multiple element arrangements that contain only software and software-related elements remains unchanged. Consistent with our methodology under previous accounting guidance, we determine VSOE of fair value for each element based on historical stand-alone sales to third-parties or from the stated renewal rate for the elements contained in the initial software license arrangement. In certain instances, we were not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to us infrequently selling each element separately, not pricing products or services within a narrow range, or only having a limited sales history. When VSOE cannot be established, we attempt to establish the selling price of each element based on TPE. TPE is determined based on |
4_Acquisitions
Acquisitions (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Acquisitions (Tables) [Abstract] | |
Pro forma financial information | The following table presents the results of Adobe and Omniture for the three months ended February27, 2009, on a pro forma basis, as though the companies had been combined as of the beginning fiscal 2009. 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 at the beginning of fiscal 2009 or of results that may occur in the future. Three Months Ended February 27, 2009 Net revenues $ 843,706 Net income $ 120,929 Basic net income per share $ 0.23 Shares used in computing basic net income per share 524,268 Diluted net income per share $ 0.23 Shares used in computing diluted net income per share 529,305 |
5_Cash, Cash Equivalents and Sh
Cash, Cash Equivalents and Short-Term Investments (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Cash Cash Equivalents And Short Term Investments (Tables) [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments consisted of the following as of March5, 2010 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 81,729 $ $ $ 81,729 Cash equivalents: Money market mutual funds 1,444,137 1,444,137 Bank time deposits 47,701 47,701 United States treasury notes 6,999 6,999 United States local government municipal bonds 1,500 1,500 Government guaranteed bonds(1) 4,999 4,999 Corporate bonds 2,379 (2 ) 2,377 Total cash equivalents 1,507,715 (2 ) 1,507,713 Total cash and cash equivalents 1,589,444 (2 ) 1,589,442 Short-term investments: United States treasury notes 392,963 2,243 (12 ) 395,194 United States government agency bonds 87,626 257 (13 ) 87,870 United States local government municipal bonds 88,451 4 88,455 Government guaranteed bonds(1) 214,081 2,641 (10 ) 216,712 Corporate bonds 240,423 3,783 (47 ) 244,159 Obligations of foreign governments 30,869 307 31,176 Multi-lateral government agencies bonds 11,333 189 11,522 Subtotal 1,065,746 9,424 (82 ) 1,075,088 Other marketable equity securities 2,508 5,346 7,854 Total short-term investments 1,068,254 14,770 (82 ) 1,082,942 Total cash, cash equivalents and short-term investments $ 2,657,698 $ 14,770 $ (84 ) $ 2,672,384 Cash, cash equivalents and short-term investments consisted of the following as of November 27, 2009 (in thousands): Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Current assets: Cash $ 75,110 $ $ $ 75,110 Cash equivalents: Money market mutual funds 884,240 884,240 Bank time deposits 40,137 40,137 Total cash equivalents 924,377 924,377 Total cash and cash equivalents 999,487 999,487 Short-term investments: United States treasury notes 373,180 3,199 (1 ) 376,378 United States government agency bonds 59,447 273 59,720 Government guaranteed bonds(2) 221,730 3,409 (1 ) 225,138 Corporate bonds 185,735 4,702 190,437 Obligations of foreign governmen |
Fair Value and Gross Unrealized Losses 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 a continuous unrealized loss position for less than twelve months, as of March5, 2010 and November27, 2009 (in thousands): 2010 2009 Gross Gross Fair Unrealized Fair Unrealized Value Losses Value Losses United States treasury notes and agency bonds $ 72,841 $ (25 ) $ 11,179 $ (1 ) Government guaranteed bonds 5,033 (1 ) 5,041 (1 ) Foreign government guaranteed bonds 4,774 (9 ) Corporate bonds 44,490 (49 ) Total $ 127,138 $ (84 ) $ 16,220 $ (2 ) |
Cost and Estimated Fair Value of Debt Securities | The following table summarizes the cost and estimated fair value of debt securities classified as short-term investments based on stated maturities as of March5, 2010 (in thousands): Amortized Estimated Cost Fair Value Due within one year $ 599,178 $ 600,819 Due within two years 266,888 270,525 Due within three years 148,113 150,220 Due after three years 51,567 53,524 Total $ 1,065,746 $ 1,075,088 |
6_Fair Value Measurements
Fair Value Measurements (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Fair Value Measurements (Tables) [Abstract] | |
Financial Assets and Liabilities at Fair Value on Recurring Basis | We measure certain financial assets and liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs at March5, 2010 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 1,491,837 $ 1,491,837 $ $ Fixed income available-for-sale securities(2) 1,090,964 1,090,964 Available-for-sale equity securities(3) 7,854 7,854 Total current assets 2,590,655 1,499,691 1,090,964 Non-current assets: Investments of limited partnership(4) 33,855 33,855 Foreign currency derivatives(5) 18,645 18,645 Deferred compensation plan assets(4): Money market funds 716 716 Equity and fixed income mutual funds 8,456 8,456 Subtotal for deferred compensation plan assets 9,172 716 8,456 Total non-current assets 61,672 716 27,101 33,855 Total assets $ 2,652,327 $ 1,500,407 $ 1,118,065 $ 33,855 Liabilities: Foreign currency derivatives(6) $ 462 $ $ 462 $ Total liabilities $ 462 $ $ 462 $ We measure certain financial assets and liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs at November27, 2009 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Current assets: Money market funds and overnight deposits(1) $ 924,378 $ 924,378 $ $ Fixed income available-for-sale securities(2) 899,960 899,960 Available-for-sale equity securities(3) 5,026 5,026 Total current assets 1,829,364 929,404 899,960 Non-current assets: Investments of limited partnership(4) 37,121 37,121 Foreign currency derivatives(5) 4,307 4,307 Deferred compensation plan assets(4): Money market funds 717 717 Equity |
Reconciliation Balances for Investments of Limited Partnership | A reconciliation of the beginning and ending balances for investments of limited partnership using significant unobservable inputs (Level 3) as of March5, 2010 and November27, 2009 was as follows (in thousands): Balance as of November28, 2008 $ 38,753 Purchases and sales of investments, net 1,921 Unrealized net investment losses included in earnings (3,553 ) Balance as of November27, 2009 37,121 Purchases and sales of investments, net 268 Unrealized net investment losses included in earnings (3,534 ) Balance as of March5, 2010 $ 33,855 |
7_Derivatives and Hedging Activ
Derivatives and Hedging Activities (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Derivatives and Hedging Activities (Tables) [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on our Condensed Consolidated Balance Sheets as of March5, 2010 and November27, 2009 were as follows (in thousands): 2010 2009 Fair Value Fair Value Fair Value Fair Value Asset Liability Asset Liability Derivatives(1) Derivatives(2) Derivatives(1) Derivatives(2) Derivatives designated as hedging instruments: Foreign exchange option contracts(3) $ 15,711 $ $ 4,175 $ Derivatives not designated as hedging instruments: Foreign exchange forward contracts 2,934 462 132 1,589 Total derivatives $ 18,645 $ 462 $ 4,307 $ 1,589 (1) Included in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. (2) Included in accrued expenses on our Condensed Consolidated Balance Sheets. (3) Hedging effectiveness expected to be recognized to income within the next twelve months. |
Effect of Derivative Instruments as Designated Cash Flow Hedges and Not Designated as Hedges | The effect of derivative instruments designated as cash flow hedges and of derivative instruments not designated as hedges in our Condensed Consolidated Statements of Income for three months ended March5, 2010 and February27, 2009 was as follows (in thousands): 2010 2009 Foreign Foreign Foreign Foreign Exchange Exchange Exchange Exchange Option Forward Option Forward Contracts Contracts Contracts Contracts Derivatives in cash flow hedging relationships: Net gain (loss) recognized in OCI, net of tax(1) $ 10,364 $ $ (5,450 ) $ Net gain (loss) reclassified from accumulated OCI into income, net of tax(2) $ $ $ 20,476 $ Net gain (loss) recognized in income(3) $ (3,921 ) $ $ (1,632 ) $ Derivatives not designated as hedging relationships: Net gain (loss) recognized in income(4) $ $ 11,040 $ $ (3,245) (1) Net change in the fair value of the effective portion classified in other comprehensive income (OCI). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income, net. (4) Classified in interest and other income, net. |
8_Goodwill and Purchased and Ot
Goodwill and Purchased and Other Intangibles (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Goodwill and Purchased and Other Intangibles (Tables) [Abstract] | |
Purchased and Other Intangible Assets | Purchased and other intangible assets subject to amortization as of March5, 2010 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 220,272 $ (31,094 ) $ 189,178 Localization $ 10,948 $ (2,175 ) $ 8,773 Trademarks 172,020 (112,820 ) 59,200 Customer contracts and relationships 364,369 (168,392 ) 195,977 Other intangibles 47,162 (12,685 ) 34,477 Total other intangible assets $ 594,499 $ (296,072 ) $ 298,427 Purchased and other intangible assets $ 814,771 $ (327,166 ) $ 487,605 Purchased and other intangible assets subject to amortization as of November27, 2009 were as follows (in thousands): Accumulated Cost Amortization Net Purchased technology $ 586,952 $ (387,731 ) $ 199,221 Localization $ 20,284 $ (15,222 ) $ 5,062 Trademarks 172,030 (104,953 ) 67,077 Customer contracts and relationships 363,922 (159,450 ) 204,472 Other intangibles 54,535 (2,979 ) 51,556 Total other intangible assets $ 610,771 $ (282,604 ) $ 328,167 Purchased and other intangible assets $ 1,197,723 $ (670,335 ) $ 527,388 |
Amortization Expense in Future Periods | As of March5, 2010, we expect amortization expense in future periods to be as follows (in thousands): Other Purchased Intangible Fiscal Year Technology Assets Remainder of 2010 $ 26,968 $ 74,161 2011 32,573 54,693 2012 30,967 22,407 2013 27,008 21,681 2014 25,293 21,281 Thereafter 46,369 104,204 Total expected amortization expense $ 189,178 $ 298,427 |
9_Other Assets
Other Assets (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Other Assets (Table) [Abstract] | |
Other Assets | Other assets as of March5, 2010 and November27, 2009 consisted of the following (in thousands): 2010 2009 Acquired rights to use technology $ 81,299 $ 84,313 Investments 60,760 63,526 Security and other deposits 11,067 11,692 Prepaid royalties 11,536 12,059 Debt issuance costs 10,598 Deferred compensation plan assets 9,172 9,045 Restricted cash 2,308 4,650 Prepaid land lease 3,200 3,209 Prepaid rent 1,229 1,377 Other 1,559 1,394 Other assets $ 192,728 $ 191,265 |
10_Accrued Expenses
Accrued Expenses (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Accrued Expenses (Table) [Abstract] | |
Accrued Expenses | Accrued expenses as of March5, 2010 and November27, 2009 consisted of the following (in thousands): 2010 2009 Accrued compensation and benefits $ 133,044 $ 164,352 Taxes payable 9,474 11,879 Sales and marketing allowances 28,419 32,774 Other 193,500 210,641 Accrued expenses $ 364,437 $ 419,646 |
11_Stock Based Compensation
Stock Based Compensation (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Stock Based Compensation (Tables) [Abstract] | |
Assumptions Used to Value Option Grants | The assumptions used to value option grants during the three months ended March5, 2010 and February27, 2009 were as follows: 2010 2009 Expected life (in years) 3.8 4.1 3.7 3.8 Volatility 31 36 % 50 57 % Risk free interest rate 1.76 1.97 % 1.16 1.40 % |
Assumptions Used to Value Employee Stock Purchase Rights | The expected term of employee stock purchase plan (ESPP) shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights during the three months ended March5, 2010 and February27, 2009 were as follows: 2010 2009 Expected life (in years) 0.5 2.0 0.5 2.0 Volatility 32 % 49 57 % Risk free interest rate 0.18 1.09 % 0.27 0.88 % |
Stock Option Activity | Option activity for the three months ended March5, 2010 and the fiscal year ended November 27, 2009 was as follows (in thousands): 2010 2009 Beginning outstanding balance 41,251 40,704 Granted 3,027 5,758 Exercised (2,300 ) (7,560 ) Cancelled (622 ) (3,160 ) Increase due to acquisition 5,509 Ending outstanding balance 41,356 41,251 |
Stock Options Outstanding | Information regarding stock options outstanding at March5, 2010 and February27, 2009 is summarized below: Weighted Average Weighted Remaining Aggregate Number of Average Contractual Intrinsic Shares Exercise Life Value(*) (thousands) Price (years) (millions) 2010 Options outstanding 41,356 $ 30.27 4.29 $ 254.7 Options vested and expected to vest 39,258 $ 30.32 4.19 $ 241.2 Options exercisable 26,270 $ 30.55 3.39 $ 158.9 2009 Options outstanding 42,773 $ 28.96 4.12 $ 18.8 Options vested and expected to vest 40,561 $ 28.90 4.00 $ 18.8 Options exercisable 27,635 $ 27.40 3.19 $ 18.8 (*) The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of March5, 2010 and February27, 2009 were $35.16 and $16.70, respectively. |
Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended March5, 2010 and the fiscal year ended November27, 2009 was as follows (in thousands): 2010 2009 Beginning outstanding balance 10,433 4,261 Awarded 5,548 6,176 Released (1,523 ) (1,162 ) Forfeited (316 ) (401 ) Increase due to acquisition 1,559 Ending outstanding balance 14,142 10,433 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at March5, 2010 and February27, 2009 is summarized below: Weighted Average Remaining Aggregate Number of Contractual Intrinsic Shares Life Value(*) (thousands) (years) (millions) 2010 Restricted stock units outstanding 14,142 2.08 $ 497.2 Restricted stock units vested and expected to vest 10,527 1.90 $ 369.8 2009 Restricted stock units outstanding 6,269 2.13 $ 104.7 Restricted stock units vested and expected to vest 4,638 1.94 $ 77.4 (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of March5, 2010 and February27, 2009 were $35.16 and $16.70, respectively. |
Performance Share Activity 2010 Program | The following table sets forth the summary of performance share activity under our 2010 Program for the three months ended March5, 2010 (in thousands): Maximum Shares Shares Eligible Granted to Receive Beginning outstanding balance Awarded 263 394 Forfeited Ending outstanding balance 263 394 |
Performance Share Activity Prior Years Programs | The performance metrics under the 2009 Performance Share Program were not achieved and therefore no shares were awarded. The following table sets forth the summary of performance share activity under our 2007 and 2008 programs, based upon share awards actually achieved, for the three months ended March5, 2010 and the fiscal year ended November27, 2009 (in thousands): 2010 2009 Beginning outstanding balance 950 383 Achieved 1,022 Released (327 ) (382) Forfeited (16 ) (73) Ending outstanding balance 607 950 |
Performance Shares Outstanding | Information regarding performance shares outstanding at March5, 2010 and February27, 2009 is summarized below: Weighted Average Remaining Aggregate Number of Contractual Intrinsic Shares Life Value(*) (thousands) (years) (millions) 2010 Performance shares outstanding 607 1.28 $ 21.3 Performance shares vested and expected to vest 505 1.23 $ 17.6 2009 Performance shares units outstanding 1,045 1.76 $ 17.5 Performance shares vested and expected to vest 811 1.67 $ 13.5 (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of March5, 2010 and February27, 2009 were $35.16 and $16.70, respectively. |
Total Stock-Based Compensation Costs | Total stock-based compensation costs that have been included in our Condensed Consolidated Statements of Income for the three months ended March5, 2010 and February27, 2009 were as follows (in thousands): 2010 2009 Option Restricted Option Restricted Grants Stock and Grants Stock and and Stock Performance and Stock Performance Purchase Share Purchase Share Income Statement Classifications Rights(1) Awards(1) (2) Rights(1) Awards(1) (2) Cost of revenueservices and support $ 417 $ 531 $ (91 ) $ 194 Research and development 12,054 15,361 14,132 8,444 Sales and marketing 12,086 12,435 8,867 5,237 General and administrative 5,610 5,986 6,188 2,866 Total $ 30,167 $ 34,313 $ 29,096 $ 16,741 (1) For the three months ended March5, 2010, there were no amounts associated with cash recoveries of fringe benefit tax from employees in India. For the three months ended February 27, 2009, we recorded $0.2million associated with cash recoveries of fringe benefit tax from employees in India. (2) For the three months ended March5, 2010, we recorded $0.5million associated with the performance shares awarded under the 2010 Program. For the three months ended February27, 2009 we recorded $0.4million associated with the performance shares awarded under the 2009 Program. These shares are liability-classified for financial statement purposes until the metrics under the program have been achieved. |
12_Restructuring Charges
Restructuring Charges (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Restructuring (Tables) [Abstract] | |
2009 Restructuring Plan Activities | The following table sets forth a summary of restructuring activities during the three months ended March5, 2010 related to our fiscal 2009 Restructuring Plan (in thousands): November 27, Costs Cash Other March 5, 2009 Incurred Payments Adjustments 2010 Termination benefits $ 22,984 $ 11,925 $ (24,035 ) $ (1,118 ) $ 9,756 Cost of closing redundant facilities 377 (29 ) 2 350 Total $ 22,984 $ 12,302 $ (24,064 ) $ (1,116 ) $ 10,106 |
Omniture Restructuring Activities | The following table sets forth a summary of restructuring activities during the three months ended March5, 2010 related to our Omniture Restructuring Plan (in thousands): November 27, Costs Cash Other March 5, 2009 Recorded Payments Adjustments 2009 Termination benefits $ 6,712 $ $ (4,111 ) $ (129 ) $ 2,472 Cost of closing redundant facilities 5,324 (141 ) 301 5,484 Contract termination 242 (127 ) 275 390 Total $ 12,278 $ $ (4,379 ) $ 447 $ 8,346 |
2008 Restructuring Plan Activities | The following table sets forth a summary of restructuring activities during the three months ended March5, 2010 related to our fiscal 2008 Restructuring Plan (in thousands): November 27, Costs Cash Other March 5, 2009 Incurred Payments Adjustments 2010 Termination benefits $ 1,057 $ $ (196 ) $ (56 ) $ 805 Cost of closing redundant facilities 3,382 (526 ) (83 ) 2,773 Total $ 4,439 $ $ (722 ) $ (139 ) $ 3,578 |
Macromedia Restructuring Activities | The following table sets forth a summary of restructuring activities during the three months ended March5, 2010 related to our Macromedia Restructuring Plan (in thousands): November 27, Cash Other March 5, 2009 Payments Adjustments 2010 Cost of closing redundant facilities $ 5,006 $ (1,155 ) $ (11 ) $ 3,840 Other 8 (1 ) 7 Total $ 5,014 $ (1,156 ) $ (11 ) $ 3,847 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Comprehensive Income (Tables) [Abstract] | |
Comprehensive Income, Net of Taxes | The following table sets forth the activity for each component of comprehensive income, net of related taxes, for the three months ended March5, 2010 and February27, 2009 (in thousands): 2010 2009 Net income $ 127,154 $ 156,435 Other comprehensive income (loss): Available-for-sale securities: Unrealized losses on available-for-sale securities, net of taxes (758 ) (1,969 ) Reclassification adjustment for gains on available-for-sale securities recognized during the period (344 ) (1,310 ) Subtotal available-for-sale securities (1,102 ) (3,279 ) Derivative instruments: Unrealized gains (losses)on derivative instruments 10,364 (5,450 ) Reclassification adjustment for gains on derivative instruments recognized during the period (20,476 ) Subtotal derivative instruments 10,364 (25,926 ) Foreign currency translation adjustments (4,599 ) (2,922 ) Other comprehensive income (loss) 4,663 (32,127 ) Total comprehensive income, net of taxes $ 131,817 $ 124,308 |
Accumulated Other Comprehensive Income, Net of Taxes | The following table sets forth the components of accumulated other comprehensive income, net of related taxes, as of March5, 2010 and November27, 2009 (in thousands): 2010 2009 Net unrealized gains on available-for-sale securities: Unrealized gains on available-for-sale securities $ 12,798 $ 13,818 Unrealized losses on available-for-sale securities (84 ) (2 ) Total net unrealized gains on available-for-sale securities 12,714 13,816 Net unrealized gains (losses)on derivative instruments 10,358 (5 ) Cumulative foreign currency translation adjustments 6,037 10,635 Total accumulated other comprehensive income, net of taxes $ 29,109 $ 24,446 |
13_Net Income Per Share
Net Income Per Share (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Net Income Per Share (Tables) [Abstract] | |
Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for the three months ended March5, 2010 and February27, 2009 (in thousands, except per share data): 2010 2009 Net income $ 127,154 $ 156,435 Shares used to compute basic net income per share 524,173 524,268 Dilutive potential common shares: Unvested restricted stock and performance share awards 3,078 854 Stock options 5,394 2,708 Shares used to compute diluted net income per share 532,645 527,830 Basic net income per share $ 0.24 $ 0.30 Diluted net income per share $ 0.24 $ 0.30 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Non-Operating Income (Expense) (Tables) [Abstract] | |
Non-Operating Income (Expense) | Non-operating income (expense)for the three months ended March5, 2010 and February27, 2009 included the following (in thousands): 2010 2009 Interest and other income, net: Interest income $ 5,105 $ 11,118 Foreign exchange (losses)gains (5,084 ) 634 Realized gains on fixed income investment 342 1,312 Realized losses on fixed income investment (1 ) Other, net 248 221 Interest and other income, net $ 611 $ 13,284 Interest expense $ (7,695 ) $ (792 ) Investment gains (losses), net: Realized investment gains $ 183 $ 103 Unrealized investment gains(*) 222 124 Realized investment losses (405 ) (1,295 ) Unrealized investment losses (3,534 ) (16,178 ) Investment gains (losses), net $ (3,534 ) $ (17,246 ) Non-operating income (expense), net $ (10,618 ) $ (4,754 ) (*) During the three months ended March5, 2010 and February27, 2009, we recorded $0.2 million and $0.9million, respectively, in unrealized holding gains and losses associated with our deferred compensation plan assets (classified as trading securities). |
14_Segments
Segments (Tables) | |
3 Months Ended
Mar. 05, 2010 | |
Segment (Tables) [Abstract] | |
Segment Reporting | Creative Knowledge Print and (in thousands) Solutions Worker Enterprise Omniture(*) Platform Publishing Total Three months ended March5, 2010 Revenue $ 432,023 $ 165,862 $ 79,900 $ 87,672 $ 46,636 $ 46,607 $ 858,700 Cost of revenue 22,835 4,641 15,243 42,085 2,227 2,337 89,368 Gross profit $ 409,188 $ 161,221 $ 64,657 $ 45,587 $ 44,409 $ 44,270 $ 769,332 Gross profit as a percentage of revenue 95 % 97 % 81 % 52 % 95 % 95 % 90 % Three months ended February27, 2009 Revenue $ 460,728 $ 149,945 $ 77,040 $ $ 52,299 $ 46,378 $ 786,390 Cost of revenue 42,750 7,765 15,497 6,056 5,285 77,353 Gross profit $ 417,978 $ 142,180 $ 61,543 $ $ 46,243 $ 41,093 $ 709,037 Gross profit as a percentage of revenue 91 % 95 % 80 % 88 % 89 % 90 % (*) The three months ended March5, 2010 includes the integration of Omniture as a new reportable segment. The three months ended February27, 2009 does not include the impact of our acquisition of Omniture. Of the $87.7million in revenue from our Omniture segment, approximately $77million represents subscription revenue and the remaining amount represents professional services and support. |
Acquisitions (Details)
Acquisitions (Details) (USD $) | ||
3 Months Ended
Feb. 27, 2009 | Oct. 23, 2009
| |
Pro forma financial information [Abstract] | ||
Net revenues | $843,706,000 | |
Net income | 120,929,000 | |
Basic net income per share | 0.23 | |
Shares used in computing basic net income per share | 524,268,000 | |
Diluted net income per share | 0.23 | |
Shares used in computing diluted net income per share | 529,305,000 | |
Acquisitions (Numeric) [Abstract] | ||
Acquisition of Omniture, Inc | 1,800,000,000 | |
Identifiable intangible assets | 436,100,000 | |
Net tangible assets | 35,000,000 | |
Restructuring liabilities | 11,700,000 | |
Estimated fair value of earned stock options and restricted stock units assumed and converted | 85,000,000 | |
Estimated direct transaction costs | 14,400,000 | |
In-process research and development | 4,600,000 | |
Goodwill | 1,300,000,000 | |
Cash paid for outstanding common stock | $1,700,000,000 | |
Tender offer for acquisition of outstanding shares | 21.5 |
15_Cash, Cash Equivalents and S
Cash, Cash Equivalents and Short-Term Investments (Details) (USD $) | |||||||||||||||||||
In Thousands | Mar. 05, 2010
| ||||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Cash and cash equivalents | $1,589,442 | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||
Short-term investments | 1,082,942 | ||||||||||||||||||
Cost and Estimated Fair Value of Debt Securities [Abstract] | |||||||||||||||||||
Due within one year, Cost | 599,178 | ||||||||||||||||||
Due within two years, Cost | 266,888 | ||||||||||||||||||
Due within three years, Cost | 148,113 | ||||||||||||||||||
Due after three years, Cost | 51,567 | ||||||||||||||||||
Total, Cost | 1,065,746 | ||||||||||||||||||
Due within one year, Estimated Fair value | 600,819 | ||||||||||||||||||
Due within two years, Estimated Fair value | 270,525 | ||||||||||||||||||
Due within three years, Estimated Fair value | 150,220 | ||||||||||||||||||
Due after three years, Estimated Fair value | 53,524 | ||||||||||||||||||
Total, Estimated Fair value | 1,075,088 | ||||||||||||||||||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | |||||||||||||||||||
Fair Value | 127,138 | ||||||||||||||||||
Gross Unrealized Losses | (84) | ||||||||||||||||||
Cash, Cash Equivalents And Short Term Investments (Numeric) [Abstract] | |||||||||||||||||||
U.S. government guaranteed corporate bonds percentage | 0.86 | ||||||||||||||||||
Foreign government guaranteed corporate bonds percentage | 0.14 | ||||||||||||||||||
Securities in a continuous unrealized loss position for more than twelve months | 0 | ||||||||||||||||||
Securities in unrealized loss position | 34 | ||||||||||||||||||
Amortized Cost [Member] | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash | 81,729 | ||||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | 1,444,137 | ||||||||||||||||||
Bank time deposits | 47,701 | ||||||||||||||||||
United States treasury notes | 6,999 | ||||||||||||||||||
United States local government muncipal bonds | 1,500 | ||||||||||||||||||
Government guaranteed bonds | 4,999 | [1] | |||||||||||||||||
Corporate bonds | 2,379 | ||||||||||||||||||
Total cash equivalents | 1,507,715 | ||||||||||||||||||
Cash and cash equivalents | 1,589,444 | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||
United States treasury notes | 392,963 | ||||||||||||||||||
United States government agency bonds | 87,626 | ||||||||||||||||||
United States local government municipal bonds | 88,451 | ||||||||||||||||||
Government guaranteed bonds | 214,081 | [1] | |||||||||||||||||
Corporate bonds | 240,423 | ||||||||||||||||||
Obligations of foreign governments | 30,869 | ||||||||||||||||||
Multi-lateral government agencies bonds | 11,333 | ||||||||||||||||||
Subtotal | 1,065,746 | ||||||||||||||||||
Other marketable equity securities | 2,508 | ||||||||||||||||||
Short-term investments | 1,068,254 | ||||||||||||||||||
Total cash, cash equivalents and short-term investments | 2,657,698 | ||||||||||||||||||
Unrealized Gains [Member] | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash | 0 | ||||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | 0 | ||||||||||||||||||
Bank time deposits | 0 | ||||||||||||||||||
United States treasury notes | 0 | ||||||||||||||||||
United States local government muncipal bonds | 0 | ||||||||||||||||||
Government guaranteed bonds | 0 | [1] | |||||||||||||||||
Corporate bonds | 0 | ||||||||||||||||||
Total cash equivalents | 0 | ||||||||||||||||||
Cash and cash equivalents | 0 | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||
United States treasury notes | 2,243 | ||||||||||||||||||
United States government agency bonds | 257 | ||||||||||||||||||
United States local government municipal bonds | 4 | ||||||||||||||||||
Government guaranteed bonds | 2,641 | [1] | |||||||||||||||||
Corporate bonds | 3,783 | ||||||||||||||||||
Obligations of foreign governments | 307 | ||||||||||||||||||
Multi-lateral government agencies bonds | 189 | ||||||||||||||||||
Subtotal | 9,424 | ||||||||||||||||||
Other marketable equity securities | 5,346 | ||||||||||||||||||
Short-term investments | 14,770 | ||||||||||||||||||
Total cash, cash equivalents and short-term investments | 14,770 | ||||||||||||||||||
Unrealized Losses [Member] | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash | 0 | ||||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | 0 | ||||||||||||||||||
Bank time deposits | 0 | ||||||||||||||||||
United States treasury notes | 0 | ||||||||||||||||||
United States local government muncipal bonds | 0 | ||||||||||||||||||
Government guaranteed bonds | 0 | [1] | |||||||||||||||||
Corporate bonds | (2) | ||||||||||||||||||
Total cash equivalents | (2) | ||||||||||||||||||
Cash and cash equivalents | (2) | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||
United States treasury notes | (12) | ||||||||||||||||||
United States government agency bonds | (13) | ||||||||||||||||||
Government guaranteed bonds | (10) | [1] | |||||||||||||||||
Corporate bonds | (47) | ||||||||||||||||||
Obligations of foreign governments | 0 | ||||||||||||||||||
Multi-lateral government agencies bonds | 0 | ||||||||||||||||||
Subtotal | (82) | ||||||||||||||||||
Other marketable equity securities | 0 | ||||||||||||||||||
Short-term investments | (82) | ||||||||||||||||||
Total cash, cash equivalents and short-term investments | (84) | ||||||||||||||||||
Estimated Fair Value [Member] | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash | 81,729 | ||||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | 1,444,137 | ||||||||||||||||||
Bank time deposits | 47,701 | ||||||||||||||||||
United States treasury notes | 6,999 | ||||||||||||||||||
United States local government muncipal bonds | 1,500 | ||||||||||||||||||
Government guaranteed bonds | 4,999 | [1] | |||||||||||||||||
Corporate bonds | 2,377 | ||||||||||||||||||
Total cash equivalents | 1,507,713 | ||||||||||||||||||
Cash and cash equivalents | 1,589,442 | ||||||||||||||||||
Short-term investments: | |||||||||||||||||||
United States treasury notes | 395,194 | ||||||||||||||||||
United States government agency bonds | 87,870 | ||||||||||||||||||
United States local government municipal bonds | 88,455 | ||||||||||||||||||
Government guaranteed bonds | 216,712 | [1] | |||||||||||||||||
Corporate bonds | 244,159 | ||||||||||||||||||
Obligations of foreign governments | 31,176 | ||||||||||||||||||
Multi-lateral government agencies bonds | 11,522 | ||||||||||||||||||
Subtotal | 1,075,088 | ||||||||||||||||||
Other marketable equity securities | 7,854 | ||||||||||||||||||
Short-term investments | 1,082,942 | ||||||||||||||||||
Total cash, cash equivalents and short-term investments | 2,672,384 | ||||||||||||||||||
United States Treasury Notes and Agency Bonds [Member] | |||||||||||||||||||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | |||||||||||||||||||
Fair Value | 72,841 | ||||||||||||||||||
Gross Unrealized Losses | (25) | ||||||||||||||||||
Government Guaranteed Bonds [Member] | |||||||||||||||||||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | |||||||||||||||||||
Fair Value | 5,033 | ||||||||||||||||||
Gross Unrealized Losses | (1) | ||||||||||||||||||
Foreign government guaranteed bonds [Member] | |||||||||||||||||||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | |||||||||||||||||||
Fair Value | 4,774 | ||||||||||||||||||
Gross Unrealized Losses | (9) | ||||||||||||||||||
Corporate Bonds [Member] | |||||||||||||||||||
Fair Value and Gross Unrealized Losses Related to Available-For-Sale Securities [Abstract] | |||||||||||||||||||
Fair Value | 44,490 | ||||||||||||||||||
Gross Unrealized Losses | ($49) | ||||||||||||||||||
[1]Includes approximately 86% in U.S. government guaranteed corporate bonds and 14% in foreign government guaranteed corporate bonds. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) (USD $) | |||||||||||||||||||
In Thousands | Mar. 05, 2010
| Nov. 27, 2009
| Mar. 05, 2010
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nov. 27, 2009
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mar. 05, 2010
Significant Other Observable Inputs (Level 2) | Nov. 27, 2009
Significant Other Observable Inputs (Level 2) | 3 Months Ended
Mar. 05, 2010 Significant Unobservable Inputs (Level 3) | 12 Months Ended
Nov. 27, 2009 Significant Unobservable Inputs (Level 3) | Nov. 28, 2008
Significant Unobservable Inputs (Level 3) | ||||||||||
Current assets: | |||||||||||||||||||
Money market funds and overnight deposits | $1,491,837 | [1] | $924,378 | [1] | $1,491,837 | [1] | $924,378 | [1] | $0 | [1] | $0 | [1] | $0 | [1] | $0 | [1] | |||
Fixed income available-for-sale securities | 1,090,964 | [2] | 899,960 | [2] | 0 | [2] | 0 | [2] | 1,090,964 | [2] | 899,960 | [2] | 0 | [2] | 0 | [2] | |||
Available-for-sale equity securities | 7,854 | [3] | 5,026 | [3] | 7,854 | [3] | 5,026 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | |||
Total current assets | 2,590,655 | 1,829,364 | 1,499,691 | 929,404 | 1,090,964 | 899,960 | 0 | 0 | |||||||||||
Non-current assets: | |||||||||||||||||||
Investments of limited partnership | 33,855 | [4] | 37,121 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 33,855 | [4] | 37,121 | [4] | |||
Foreign currency derivatives | 18,645 | [5] | 4,307 | [5] | 0 | [5] | 0 | [5] | 18,645 | [5] | 4,307 | [5] | 0 | [5] | 0 | [5] | |||
Deferred compensation plan assets: | |||||||||||||||||||
Money market funds | 716 | [4] | 717 | [4] | 716 | [4] | 717 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] | |||
Equity and fixed income mutual funds | 8,456 | [4] | 8,328 | [4] | 0 | [4] | 0 | [4] | 8,456 | [4] | 8,328 | [4] | 0 | [4] | 0 | [4] | |||
Subtotal for deferred compensation plan assets | 9,172 | [4] | 9,045 | [4] | 716 | [4] | 717 | [4] | 8,456 | [4] | 8,328 | [4] | 0 | [4] | 0 | [4] | |||
Total non-current assets | 61,672 | [4] | 50,473 | [4] | 716 | [4] | 717 | [4] | 27,101 | [4] | 12,635 | [4] | 33,855 | [4] | 37,121 | [4] | |||
Total assets | 2,652,327 | 1,879,837 | 1,500,407 | 930,121 | 1,118,065 | 912,595 | 33,855 | 37,121 | |||||||||||
Liabilities: | |||||||||||||||||||
Foreign currency derivatives | 462 | [6] | 1,589 | [6] | 0 | [6] | 0 | [6] | 462 | [6] | 1,589 | [6] | 0 | [6] | 0 | [6] | |||
Total liabilities | 462 | 1,589 | 0 | 0 | 462 | 1,589 | 0 | 0 | |||||||||||
Reconciliation Balances for Investments of Limited Partnership [Abstract] | |||||||||||||||||||
Beginning balance | 37,121 | 38,753 | |||||||||||||||||
Purchases and sales of investments, net | 268 | 1,921 | |||||||||||||||||
Unrealized net investment losses included in earnings | (3,534) | (3,553) | |||||||||||||||||
Ending balance | $33,855 | $37,121 | $38,753 | ||||||||||||||||
Fair Value Measurements (Numeric) [Abstract] | |||||||||||||||||||
U.S. Treasury Securities, Agency or U.S. Government Guaranteed Securities or U.S. Municipal Bonds | 0.71 | ||||||||||||||||||
U.S. Treasury Securities, Agency or U.S. Government Guaranteed Securities | 0.7 | ||||||||||||||||||
Corporate Bonds | 0.23 | 0.21 | |||||||||||||||||
Obligations of Foreign Governments and their Agencies | 0.05 | 0.06 | |||||||||||||||||
Obligations of Multi-lateral Government Agencies | 0.01 | 0.03 | |||||||||||||||||
[1]Included in cash and cash equivalents on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[2]Included in either cash and cash equivalents or short-term investments on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[3]Included in short-term investments on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[4]Included in other assets on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[5]Included in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[6]Included in accrued expenses on our Condensed Consolidated Balance Sheets. |
16_Derivatives and Hedging Acti
Derivatives and Hedging Activities (Details) (USD $) | |||||||||||||||||||
In Thousands | Mar. 05, 2010
| Nov. 27, 2009
| 3 Months Ended
Mar. 05, 2010 Foreign Exchange Forward Contracts [Member] | 3 Months Ended
Feb. 27, 2009 Foreign Exchange Forward Contracts [Member] | Nov. 27, 2009
Foreign Exchange Forward Contracts [Member] | 3 Months Ended
Mar. 05, 2010 Foreign Exchange Option Contracts [Member] | 3 Months Ended
Feb. 27, 2009 Foreign Exchange Option Contracts [Member] | Nov. 27, 2009
Foreign Exchange Option Contracts [Member] | |||||||||||
Fair Value of Derivative Instruments [Abstract] | |||||||||||||||||||
Fair Value Asset Derivatives, Designated | $15,711 | [1],[2] | $4,175 | [1],[2] | |||||||||||||||
Fair Value Asset Derivatives, Not Designated | 2,934 | [2] | 132 | [2] | |||||||||||||||
Fair Value Liability Derivatives, Designated | 0 | [1],[3] | 0 | [1],[3] | |||||||||||||||
Fair Value Liability Derivatives, Not Designated | 462 | [3] | 1,589 | [3] | |||||||||||||||
Total Derivatives, Asset | 18,645 | [2] | 4,307 | [2] | |||||||||||||||
Total Derivatives, Liability | 462 | [3] | 1,589 | [3] | |||||||||||||||
Derivatives in cash flow hedging relationships [Abstract] | |||||||||||||||||||
Net gain (loss) recognized in OCI, net of tax | 10,364 | [4] | (5,450) | [4] | |||||||||||||||
Net gain (loss) reclassified from accumulated OCI into income, net of tax | 20,476 | [5] | |||||||||||||||||
Net gain (loss) recognized in income | (3,921) | [6] | (1,632) | [6] | |||||||||||||||
Derivatives not designated as hedging relationships [Abstract] | |||||||||||||||||||
Net gain (loss) recognized in income | 11,040 | [7] | (3,245) | [7] | |||||||||||||||
Financial Instruments (Numeric) [Abstract] | |||||||||||||||||||
Aggregate fair value of derivative instruments, Assets | 18,645 | [2] | 4,307 | [2] | |||||||||||||||
Aggregate fair value of derivative instruments, Liabilities | $462 | [3] | $1,589 | [3] | |||||||||||||||
[1]Hedging effectiveness expected to be recognized to income within the next twelve months. | |||||||||||||||||||
[2]Included in prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[3]Included in accrued expenses on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
[4]Net change in the fair value of the effective portion classified in other comprehensive income ("OCI"). | |||||||||||||||||||
[5]Effective portion classified as revenue. | |||||||||||||||||||
[6]Ineffective portion and amount excluded from effectiveness testing classified in interest and other income, net. | |||||||||||||||||||
[7]Classified in interest and other income, net. |
17_Goodwill and Purchased and O
Goodwill and Purchased and Other Intangibles (Details) (USD $) | |||
3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | Nov. 27, 2009
| |
Purchased and Other Intangible Assets [Abstract] | |||
Cost | $814,771,000 | $1,197,723,000 | |
Accumulated Amortization | (327,166,000) | (670,335,000) | |
Net | 487,605,000 | 527,388,000 | |
Goodwill and Purchased and Other Intangibles (Numeric) [Abstract] | |||
Goodwill | 3,494,073,000 | 3,494,589,000 | |
Amortization expense related to purchased and other intangible assets | 36,900,000 | 39,000,000 | |
Amortization expense included in cost of sales | 18,700,000 | 23,600,000 | |
Purchased Technology [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 220,272,000 | 586,952,000 | |
Accumulated Amortization | (31,094,000) | (387,731,000) | |
Net | 189,178,000 | 199,221,000 | |
Amortization Expense in Future Periods [Abstract] | |||
Remainder of 2010 | 26,968,000 | ||
2011 | 32,573,000 | ||
2012 | 30,967,000 | ||
2013 | 27,008,000 | ||
2014 | 25,293,000 | ||
Thereafter | 46,369,000 | ||
Total expected amortization expense | 189,178,000 | ||
Localization [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 10,948,000 | 20,284,000 | |
Accumulated Amortization | (2,175,000) | (15,222,000) | |
Net | 8,773,000 | 5,062,000 | |
Trademarks [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 172,020,000 | 172,030,000 | |
Accumulated Amortization | (112,820,000) | (104,953,000) | |
Net | 59,200,000 | 67,077,000 | |
Customer Contracts and Relationships [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 364,369,000 | 363,922,000 | |
Accumulated Amortization | (168,392,000) | (159,450,000) | |
Net | 195,977,000 | 204,472,000 | |
Other Intangibles [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 47,162,000 | 54,535,000 | |
Accumulated Amortization | (12,685,000) | (2,979,000) | |
Net | 34,477,000 | 51,556,000 | |
Amortization Expense in Future Periods [Abstract] | |||
Remainder of 2010 | 74,161,000 | ||
2011 | 54,693,000 | ||
2012 | 22,407,000 | ||
2013 | 21,681,000 | ||
2014 | 21,281,000 | ||
Thereafter | 104,204,000 | ||
Total expected amortization expense | 298,427,000 | ||
Total Other Intangible Assets [Member] | |||
Purchased and Other Intangible Assets [Abstract] | |||
Cost | 594,499,000 | 610,771,000 | |
Accumulated Amortization | (296,072,000) | (282,604,000) | |
Net | $298,427,000 | $328,167,000 |
Other Assets (Details)
Other Assets (Details) (USD $) | |||||||||||||||||||
Mar. 05, 2010
| Nov. 27, 2009
| ||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||
Acquired rights to use technology | $81,299,000 | $84,313,000 | |||||||||||||||||
Investments | 60,760,000 | 63,526,000 | |||||||||||||||||
Security and other deposits | 11,067,000 | 11,692,000 | |||||||||||||||||
Prepaid royalties | 11,536,000 | 12,059,000 | |||||||||||||||||
Debt issuance costs | 10,598,000 | 0 | |||||||||||||||||
Deferred compensation plan assets | 9,172,000 | [1] | 9,045,000 | [1] | |||||||||||||||
Restricted cash | 2,308,000 | 4,650,000 | |||||||||||||||||
Prepaid land lease | 3,200,000 | 3,209,000 | |||||||||||||||||
Prepaid rent | 1,229,000 | 1,377,000 | |||||||||||||||||
Other | 1,559,000 | 1,394,000 | |||||||||||||||||
Other assets | 192,728,000 | 191,265,000 | |||||||||||||||||
Other Assets (Numeric) [Abstract] | |||||||||||||||||||
Indirect investments of limited partnership interest in Adobe Ventures | 33,900,000 | 37,100,000 | |||||||||||||||||
Total maximum capital commitment to Adobe Ventures | 104,600,000 | ||||||||||||||||||
Amount invested towards capital commitment to Adobe Ventures | 95,000,000 | ||||||||||||||||||
Direct investments in privately-held companies | $26,900,000 | $26,400,000 | |||||||||||||||||
[1]Included in other assets on our Condensed Consolidated Balance Sheets. |
Accrued Expenses (Details)
Accrued Expenses (Details) (USD $) | ||
In Thousands | Mar. 05, 2010
| Nov. 27, 2009
|
Accrued Expense [Abstract] | ||
Accrued compensation and benefits | $133,044 | $164,352 |
Taxes payable | 9,474 | 11,879 |
Sales and marketing allowances | 28,419 | 32,774 |
Other | 193,500 | 210,641 |
Accrued expenses | $364,437 | $419,646 |
Income Taxes (Details)
Income Taxes (Details) (USD $) | ||
In Millions | 3 Months Ended
Mar. 05, 2010 | Dec. 31, 2009
|
Income Taxes (Numeric) [Abstract] | ||
Gross liability for unrecognized tax benefits exclusive of interest and penalties | 217.5 | |
Total unrecognized tax benefits recognized in future | 200.2 | |
Estimated federal benefit related to future tax returns | 17.3 | |
Combined amount of accrued interest and penalties related to tax positions | 16.2 | |
Undistributed foreign earnings for deferred tax liability | 700 | |
Reclassification from deferred income taxes to income taxes payable | 200 | |
From [Member] | ||
Income Taxes (Numeric) [Abstract] | ||
Potential decreases in underlying unrecognized tax benefits | 0 | |
To [Member] | ||
Income Taxes (Numeric) [Abstract] | ||
Potential decreases in underlying unrecognized tax benefits | $13 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) (USD $) | |||||||||||||||||||||||||||||||||||||
3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | 3 Months Ended
Mar. 05, 2010 Program 2010 [Member] Shares Granted Member | Nov. 27, 2009
Program 2010 [Member] Shares Granted Member | 3 Months Ended
Mar. 05, 2010 Program 2010 [Member] Maximum Shares Eligible to Receive [Member] | Nov. 27, 2009
Program 2010 [Member] Maximum Shares Eligible to Receive [Member] | 3 Months Ended
Feb. 27, 2009 Program 2009 [Member] | 3 Months Ended
Mar. 05, 2010 Prior Year [Member] | 12 Months Ended
Nov. 27, 2009 Prior Year [Member] | Feb. 27, 2009
Prior Year [Member] | Nov. 28, 2008
Prior Year [Member] | 3 Months Ended
Mar. 05, 2010 Stock Options [Member] | 12 Months Ended
Nov. 27, 2009 Stock Options [Member] | Feb. 27, 2009
Stock Options [Member] | Nov. 28, 2008
Stock Options [Member] | 3 Months Ended
Mar. 05, 2010 Restricted Stock Unit [Member] | 12 Months Ended
Nov. 27, 2009 Restricted Stock Unit [Member] | Feb. 27, 2009
Restricted Stock Unit [Member] | Nov. 28, 2008
Restricted Stock Unit [Member] | 3 Months Ended
Mar. 05, 2010 Employee Stock Purchase Plan [Member] | 3 Months Ended
Feb. 27, 2009 Employee Stock Purchase Plan [Member] | 3 Months Ended
Mar. 05, 2010 Option Grants [Member] | 3 Months Ended
Feb. 27, 2009 Option Grants [Member] | 3 Months Ended
Mar. 05, 2010 Option Grants and Stock Purchase Rights [Member] | 3 Months Ended
Feb. 27, 2009 Option Grants and Stock Purchase Rights [Member] | 3 Months Ended
Mar. 05, 2010 Restricted Stock and Performance Share Awards [Member] | 3 Months Ended
Feb. 27, 2009 Restricted Stock and Performance Share Awards [Member] | |||||||||||
Valuation Assumptions Expected Life Range Abstract | |||||||||||||||||||||||||||||||||||||
From | 0.5 | 0.5 | 3.8 | 3.7 | |||||||||||||||||||||||||||||||||
To | 2 | 2 | 4.1 | 3.8 | |||||||||||||||||||||||||||||||||
Valuation Assumptions Volatility Range Abstract | |||||||||||||||||||||||||||||||||||||
From | 0.32 | 0.49 | 0.31 | 0.5 | |||||||||||||||||||||||||||||||||
To | 0.32 | 0.57 | 0.36 | 0.57 | |||||||||||||||||||||||||||||||||
Valuation Assumptions Risk Free Interest Rate Range Abstract | |||||||||||||||||||||||||||||||||||||
From | 0.0018 | 0.0027 | 0.0176 | 0.0116 | |||||||||||||||||||||||||||||||||
To | 0.0109 | 0.0088 | 0.0197 | 0.014 | |||||||||||||||||||||||||||||||||
Stock Option Activity [Abstract] | |||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 41,251,000 | 40,704,000 | |||||||||||||||||||||||||||||||||||
Granted | 3,027,000 | 5,758,000 | |||||||||||||||||||||||||||||||||||
Exercised | (2,300,000) | (7,560,000) | |||||||||||||||||||||||||||||||||||
Cancelled | (622,000) | (3,160,000) | |||||||||||||||||||||||||||||||||||
Increase due to acquisition | 5,509,000 | 1,559,000 | |||||||||||||||||||||||||||||||||||
Ending outstanding balance | 41,356,000 | 41,251,000 | 42,773,000 | 40,704,000 | |||||||||||||||||||||||||||||||||
Stock Options Outstanding [Abstract] | |||||||||||||||||||||||||||||||||||||
Options outstanding - Shares | 41,356,000 | 41,251,000 | 42,773,000 | 40,704,000 | |||||||||||||||||||||||||||||||||
Options vested and expected to vest - Shares | 39,258,000 | 40,561,000 | |||||||||||||||||||||||||||||||||||
Options exercisable - Shares | 26,270,000 | 27,635,000 | |||||||||||||||||||||||||||||||||||
Options outstanding - Exercise Price | 30.27 | 28.96 | |||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Exercise Price | 30.32 | 28.9 | |||||||||||||||||||||||||||||||||||
Options exercisable - Exercise Price | 30.55 | 27.4 | |||||||||||||||||||||||||||||||||||
Options outstanding - Life | 4.29 | 4.12 | |||||||||||||||||||||||||||||||||||
Options vested and expected to vest - Life | 4.19 | 4 | |||||||||||||||||||||||||||||||||||
Options exercisable - Life | 3.39 | 3.19 | |||||||||||||||||||||||||||||||||||
Options outstanding - Intrinsic Value | $254,700,000 | [1] | $18,800,000 | [1] | |||||||||||||||||||||||||||||||||
Options vested and expected to vest - Intrinsic Value | 241,200,000 | [1] | 18,800,000 | [1] | |||||||||||||||||||||||||||||||||
Options exercisable - Intrinsic Value | 158,900,000 | [1] | 18,800,000 | [1] | |||||||||||||||||||||||||||||||||
Restricted Stock Unit Activity [Abstract] | |||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 950,000 | 383,000 | 10,433,000 | 4,261,000 | |||||||||||||||||||||||||||||||
Awarded | 263,000 | 394,000 | 5,548,000 | 6,176,000 | |||||||||||||||||||||||||||||||||
Released | (327,000) | (382,000) | (1,523,000) | (1,162,000) | |||||||||||||||||||||||||||||||||
Forfeited | 0 | 0 | (16,000) | (73,000) | (316,000) | (401,000) | |||||||||||||||||||||||||||||||
Increase due to acquisition | 5,509,000 | 1,559,000 | |||||||||||||||||||||||||||||||||||
Ending outstanding balance | 263,000 | 0 | 394,000 | 0 | 607,000 | 950,000 | 1,045,000 | 383,000 | 14,142,000 | 10,433,000 | 6,269,000 | 4,261,000 | |||||||||||||||||||||||||
Restricted Stock Units and Performance Shares Outstanding [Abstract] | |||||||||||||||||||||||||||||||||||||
Number of shares outstanding | 263,000 | 0 | 394,000 | 0 | 607,000 | 950,000 | 1,045,000 | 383,000 | 14,142,000 | 10,433,000 | 6,269,000 | 4,261,000 | |||||||||||||||||||||||||
Number of shares vested and expected to vest | 505,000 | 811,000 | 10,527,000 | 4,638,000 | |||||||||||||||||||||||||||||||||
Outstanding weighted average remaining contractual life | 1.28 | 1.76 | 2.08 | 2.13 | |||||||||||||||||||||||||||||||||
Vested and expected to vest weighted average remaining contractual life | 1.23 | 1.67 | 1.9 | 1.94 | |||||||||||||||||||||||||||||||||
Outstanding intrinsic value | 21,300,000 | [2] | 17,500,000 | [2] | 497,200,000 | [2] | 104,700,000 | [2] | |||||||||||||||||||||||||||||
Vested and expected to vest Outstanding intrinsic value | 17,600,000 | [2] | 13,500,000 | [2] | 369,800,000 | [2] | 77,400,000 | [2] | |||||||||||||||||||||||||||||
Performance share activity 2010 Program [Abstract] | |||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 950,000 | 383,000 | 10,433,000 | 4,261,000 | |||||||||||||||||||||||||||||||
Awarded | 263,000 | 394,000 | 5,548,000 | 6,176,000 | |||||||||||||||||||||||||||||||||
Forfeited | 0 | 0 | (16,000) | (73,000) | (316,000) | (401,000) | |||||||||||||||||||||||||||||||
Ending outstanding balance | 263,000 | 0 | 394,000 | 0 | 607,000 | 950,000 | 1,045,000 | 383,000 | 14,142,000 | 10,433,000 | 6,269,000 | 4,261,000 | |||||||||||||||||||||||||
Performance Share Activity Prior Years Programs [Abstract] | |||||||||||||||||||||||||||||||||||||
Beginning outstanding balance | 0 | 0 | 950,000 | 383,000 | 10,433,000 | 4,261,000 | |||||||||||||||||||||||||||||||
Achieved | 1,022,000 | ||||||||||||||||||||||||||||||||||||
Released | (327,000) | (382,000) | (1,523,000) | (1,162,000) | |||||||||||||||||||||||||||||||||
Forfeited | 0 | 0 | (16,000) | (73,000) | (316,000) | (401,000) | |||||||||||||||||||||||||||||||
Ending outstanding balance | 263,000 | 0 | 394,000 | 0 | 607,000 | 950,000 | 1,045,000 | 383,000 | 14,142,000 | 10,433,000 | 6,269,000 | 4,261,000 | |||||||||||||||||||||||||
Total Stock-based Compensation Costs [Abstract] | |||||||||||||||||||||||||||||||||||||
Cost of revenue-services and support | 417,000 | [3] | (91,000) | [3] | 531,000 | [3],[4] | 194,000 | [3],[4] | |||||||||||||||||||||||||||||
Research and development | 12,054,000 | [3] | 14,132,000 | [3] | 15,361,000 | [3],[4] | 8,444,000 | [3],[4] | |||||||||||||||||||||||||||||
Sales and marketing | 12,086,000 | [3] | 8,867,000 | [3] | 12,435,000 | [3],[4] | 5,237,000 | [3],[4] | |||||||||||||||||||||||||||||
General and administrative | 5,610,000 | [3] | 6,188,000 | [3] | 5,986,000 | [3],[4] | 2,866,000 | [3],[4] | |||||||||||||||||||||||||||||
Total | 30,167,000 | [3] | 29,096,000 | [3] | 34,313,000 | [3],[4] | 16,741,000 | [3],[4] | |||||||||||||||||||||||||||||
Stock Based Compensation (Numeric) [Abstract] | |||||||||||||||||||||||||||||||||||||
Number of years over which unrecognized compensation costs will be recognized | 2.9 | ||||||||||||||||||||||||||||||||||||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock based awards | 438,500,000 | ||||||||||||||||||||||||||||||||||||
Cash Recoveries of Fringe Benefit Tax, India | 0 | 200,000 | |||||||||||||||||||||||||||||||||||
Stock-based compensation costs associated with performance shares awarded but not achieved | 500,000 | 400,000 | |||||||||||||||||||||||||||||||||||
Shares Purchased, ESPP | 1,300,000 | 1,200,000 | |||||||||||||||||||||||||||||||||||
Average purchase price of shares, ESPP | 20.2 | 18.1 | |||||||||||||||||||||||||||||||||||
Closing market values | 35.16 | 16.7 | 35.16 | 16.7 | 35.16 | 16.7 | |||||||||||||||||||||||||||||||
Shares Purchased Intrinsic Value, ESPP | $21,400,000 | $3,700,000 | |||||||||||||||||||||||||||||||||||
Maximum percentage of target shares able to receive | 1.5 | ||||||||||||||||||||||||||||||||||||
[1]The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of March 5, 2010 and February 27, 2009 were $35.16 and $16.70, respectively. | |||||||||||||||||||||||||||||||||||||
[2]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 March 5, 2010 and February 27, 2009 were $35.16 and $16.70, respectively. | |||||||||||||||||||||||||||||||||||||
[3]For the three months ended March 5, 2010 there were no amounts associated with cash recoveries of fringe benefit tax from employees in India. For the three months ended February 27, 2009, we recorded $0.2 million associated with cash recoveries of fringe benefit tax from employees in India. | |||||||||||||||||||||||||||||||||||||
[4]For the three months ended March 5, 2010, we recorded $0.5 million associated with the performance shares awarded under the 2009 Program. For the three months ended February 27, 2009 we recorded $0.4 million associated with the performance shares awarded under the 2009 Program. These shares are liability-classified for financial statement purposes until the metrics under the program have been achieved. |
Restructuring Charges (Details)
Restructuring Charges (Details) (USD $) | |||||||||||||||||||||||||||||||||
12 Months Ended
Nov. 27, 2009 Facilities [Member] Omniture [Member] | Oct. 23, 2009
Facilities [Member] Omniture [Member] | Nov. 30, 2007
Contract Termination [Member] | 3 Months Ended
Mar. 05, 2010 Contract Termination [Member] Omniture [Member] | Nov. 27, 2009
Contract Termination [Member] Omniture [Member] | 3 Months Ended
Mar. 05, 2010 Cost of Closing Redundant Facilities [Member] Restructuring Plan 2009 [Member] | Nov. 27, 2009
Cost of Closing Redundant Facilities [Member] Restructuring Plan 2009 [Member] | 3 Months Ended
Mar. 05, 2010 Cost of Closing Redundant Facilities [Member] Omniture [Member] | Nov. 27, 2009
Cost of Closing Redundant Facilities [Member] Omniture [Member] | 3 Months Ended
Mar. 05, 2010 Cost of Closing Redundant Facilities [Member] Restructuring Plan 2008 [Member] | 12 Months Ended
Nov. 27, 2009 Cost of Closing Redundant Facilities [Member] Restructuring Plan 2008 [Member] | 3 Months Ended
Mar. 05, 2010 Cost of Closing Redundant Facilities [Member] Macromedia [Member] | Nov. 27, 2009
Cost of Closing Redundant Facilities [Member] Macromedia [Member] | Nov. 30, 2007
Termination Benefits [Member] | 12 Months Ended
Nov. 27, 2009 Termination Benefits [Member] Cost of Closing Redundant Facility [Member] Omniture [Member] | 3 Months Ended
Mar. 05, 2010 Termination Benefits [Member] Restructuring Plan 2009 [Member] | 12 Months Ended
Nov. 27, 2009 Termination Benefits [Member] Restructuring Plan 2009 [Member] | 3 Months Ended
Mar. 05, 2010 Termination Benefits [Member] Omniture [Member] | Nov. 27, 2009
Termination Benefits [Member] Omniture [Member] | 3 Months Ended
Mar. 05, 2010 Termination Benefits [Member] Restructuring Plan 2008 [Member] | 12 Months Ended
Nov. 27, 2009 Termination Benefits [Member] Restructuring Plan 2008 [Member] | 12 Months Ended
Nov. 28, 2008 Termination Benefits [Member] Restructuring Plan 2008 [Member] | 3 Months Ended
Mar. 05, 2010 Other Restructuring Charges [Member] Macromedia [Member] | Nov. 27, 2009
Other Restructuring Charges [Member] Macromedia [Member] | 3 Months Ended
Mar. 05, 2010 Restructuring Plan 2009 [Member] | 12 Months Ended
Nov. 27, 2009 Restructuring Plan 2009 [Member] | 3 Months Ended
Mar. 05, 2010 Omniture [Member] | 12 Months Ended
Nov. 27, 2009 Omniture [Member] | 3 Months Ended
Mar. 05, 2010 Restructuring Plan 2008 [Member] | 12 Months Ended
Nov. 27, 2009 Restructuring Plan 2008 [Member] | 12 Months Ended
Nov. 28, 2008 Restructuring Plan 2008 [Member] | 3 Months Ended
Mar. 05, 2010 Macromedia [Member] | Nov. 27, 2009
Macromedia [Member] | |
Restructuring Activities [Abstract] | |||||||||||||||||||||||||||||||||
Beginning Accrued Restructuring Charges - Adobe | $0 | $3,382,000 | $22,984,000 | $1,057,000 | $22,984,000 | $4,439,000 | |||||||||||||||||||||||||||
Beginning Accrued Restructuring Charges - Acquired Companies | 242,000 | 5,324,000 | 5,006,000 | 6,712,000 | 8,000 | 12,278,000 | 5,014,000 | ||||||||||||||||||||||||||
Costs Incurred | 377,000 | 11,925,000 | 25,500,000 | 6,700,000 | 29,200,000 | 12,302,000 | 0 | ||||||||||||||||||||||||||
Costs Recorded | 10,600,000 | 0 | |||||||||||||||||||||||||||||||
Cash Payments | (100,000) | (127,000) | (29,000) | (141,000) | (526,000) | (1,155,000) | (24,035,000) | (2,500,000) | (4,111,000) | (196,000) | (400,000) | (1,000) | (24,064,000) | (4,379,000) | (722,000) | (1,156,000) | |||||||||||||||||
Other adjustments | 275,000 | 2,000 | 301,000 | (83,000) | (11,000) | (1,118,000) | (129,000) | (56,000) | (1,116,000) | 447,000 | (139,000) | (11,000) | |||||||||||||||||||||
Ending Accrued Restructuring Charges - Adobe | 350,000 | 0 | 2,773,000 | 3,382,000 | 9,756,000 | 22,984,000 | 805,000 | 1,057,000 | 10,106,000 | 22,984,000 | 3,578,000 | 4,439,000 | |||||||||||||||||||||
Ending Accrued Restructuring Charges - Acquired Companies | 3,200,000 | 390,000 | 242,000 | 5,484,000 | 5,324,000 | 3,840,000 | 5,006,000 | 27,000,000 | 2,472,000 | 6,712,000 | 7,000 | 8,000 | 8,346,000 | 12,278,000 | 3,847,000 | 5,014,000 | |||||||||||||||||
Restructuring Charges (Numeric) [Abstract] | |||||||||||||||||||||||||||||||||
Expected reductions in full time positions | 630 | 560 | |||||||||||||||||||||||||||||||
Restructuring charges related to ongoing termination benefits | 377,000 | 11,925,000 | 25,500,000 | 6,700,000 | 29,200,000 | 12,302,000 | 0 | ||||||||||||||||||||||||||
Position eliminated | 159 | 340 | 100 | 100 | 460 | ||||||||||||||||||||||||||||
Restructuring charges paid | (100,000) | (127,000) | (29,000) | (141,000) | (526,000) | (1,155,000) | (24,035,000) | (2,500,000) | (4,111,000) | (196,000) | (400,000) | (1,000) | (24,064,000) | (4,379,000) | (722,000) | (1,156,000) | |||||||||||||||||
Vacated sales facilities (in square feet) | 8,000 | ||||||||||||||||||||||||||||||||
Fair value of our future contractual obligations, accrued | 400,000 | 8,500,000 | |||||||||||||||||||||||||||||||
Accrued restructuring charges | 350,000 | 0 | 2,773,000 | 3,382,000 | 9,756,000 | 22,984,000 | 805,000 | 1,057,000 | 10,106,000 | 22,984,000 | 3,578,000 | 4,439,000 | |||||||||||||||||||||
Total restructuring costs incurred to date for closing redundant facilities | 400,000 | 8,700,000 | |||||||||||||||||||||||||||||||
Total restructuring costs expected to be incurred for closing redundant facilities | 15,100,000 | 9,100,000 | |||||||||||||||||||||||||||||||
Adjustments related to changes to previous estimates | 700,000 | ||||||||||||||||||||||||||||||||
Other adjustments | 275,000 | 2,000 | 301,000 | (83,000) | (11,000) | (1,118,000) | (129,000) | (56,000) | (1,116,000) | 447,000 | (139,000) | (11,000) | |||||||||||||||||||||
Foreign currency translation adjustments | 400,000 | 100,000 | |||||||||||||||||||||||||||||||
Restructuring adjustments to goodwill | 800,000 | ||||||||||||||||||||||||||||||||
Costs Recorded | 10,600,000 | 0 | |||||||||||||||||||||||||||||||
Restructuring costs related to facilities liabilities assumed | 1,500,000 | ||||||||||||||||||||||||||||||||
Restructuring reserve, current | 1,200,000 | ||||||||||||||||||||||||||||||||
Restructuring reserve, non-current | 2,400,000 | ||||||||||||||||||||||||||||||||
Research & development and sales facilities, area vacated | 89,000 | ||||||||||||||||||||||||||||||||
Credit-adjusted risk-free interest rate | 0.06 | ||||||||||||||||||||||||||||||||
Estimated sublease income, Net of fair value | 4,400,000 | ||||||||||||||||||||||||||||||||
Accrued Restructuring Charges - Acquired Companies | 3,200,000 | 390,000 | 242,000 | 5,484,000 | 5,324,000 | 3,840,000 | 5,006,000 | 27,000,000 | 2,472,000 | 6,712,000 | 7,000 | 8,000 | 8,346,000 | 12,278,000 | 3,847,000 | 5,014,000 | |||||||||||||||||
Restructuring reserve, current - Acquired Company | 6,000,000 | 2,300,000 | |||||||||||||||||||||||||||||||
Restructuring reserve, noncurrent - Acquired Companies | $2,300,000 | $1,500,000 |
Stockholders Equity (Details)
Stockholders Equity (Details) (USD $) | ||
In Millions, unless otherwise specified | 3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 |
Stockholders' Equity (Numeric) [Abstract] | ||
Structured Repurchase Prepayments | $250 | |
Repurchased Shares | 2 | 5 |
Repurchased Shares, Price | 36.21 | 22.79 |
Up-front payments remaining in treasury stock | $0 | 19.7 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) (USD $) | |||
In Thousands | 3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | Nov. 27, 2009
|
Comprehensive Income [Abstract] | |||
Net income | $127,154 | $156,435 | |
Available-for-sale Securities: | |||
Unrealized losses on available-for-sale securities, net of taxes | (758) | (1,969) | |
Reclassification adjustment for gains on available-for-sale securities recognized during the period | (344) | (1,310) | |
Subtotal available for sale securities | (1,102) | (3,279) | |
Derivative instruments: | |||
Unrealized gains (losses) on derivative instruments | 10,364 | (5,450) | |
Reclassification adjustment for gains on derivative instruments recognized during the period | (20,476) | ||
Subtotal derivative instruments | 10,364 | (25,926) | |
Foreign currency translation adjustments | (4,599) | (2,922) | |
Other comprehensive income (loss) | 4,663 | (32,127) | |
Total comprehensive income, net of taxes | 131,817 | 124,308 | |
Accumulated Other Comprehensive Income, Net of Tax [Abstract] | |||
Unrealized gains on available-for-sale securities | 12,798 | 13,818 | |
Unrealized losses on available-for-sale securities | (84) | (2) | |
Total net unrealized gains on available-for-sale securities | 12,714 | 13,816 | |
Net unrealized gains (losses) on derivative instruments | 10,358 | (5) | |
Cumulative foreign currency translation adjustments | 6,037 | 10,635 | |
Total accumulated other comprehensive income, net of taxes | $29,109 | $24,446 |
Net Income Per Share (Details)
Net Income Per Share (Details) (USD $) | ||
3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | |
Net Income Per Share [Abstract] | ||
Net income | $127,154,000 | $156,435,000 |
Shares used to compute basic net income per share | 524,173,000 | 524,268,000 |
Dilutive potential common shares: | ||
Unvested restricted stock and performance share awards | 3,078,000 | 854,000 |
Stock options | 5,394,000 | 2,708,000 |
Shares used in computing diluted net income per share | 532,645,000 | 527,830,000 |
Basic net income per share | 0.24 | 0.3 |
Diluted net income per share | 0.24 | 0.3 |
Net Income Per Share (Numeric) [Abstract] | ||
Common stock with exercise prices greater than average fair market value | 17,500,000 | 32,200,000 |
Average fair market value | 35.13 | 20.98 |
Commitments and Contingencies (
Commitments and Contingencies (Details) (USD $) | ||
In Millions | 3 Months Ended
Mar. 05, 2010 | Nov. 27, 2009
|
Commitments and Contingencies (Numeric) [Abstract] | ||
Number of office buildings | 3 | |
Unamortized Portion, Residual Value Guarantee Under Other Long-term Liabilities and Prepaid Rent | 1.2 | 1.3 |
Lease Renewal Period | 5 | |
East and West Towers [Member] | ||
Commitments and Contingencies (Numeric) [Abstract] | ||
Standby letter of credit | 16.5 | |
Lease Receivable Purchased | 126.8 | |
Option to Purchase Buildings | 143.2 | |
Residual Value Guarantees | 126.8 | |
Residual Value Gurarantee Under Other Long Term Liabilities | 5.2 | |
Almaden Tower [Member] | ||
Commitments and Contingencies (Numeric) [Abstract] | ||
Lease Receivable Purchased | 80.4 | |
Option to Purchase Buildings | 103.6 | |
Residual Value Guarantees | 89.4 | |
Residual Value Gurarantee Under Other Long Term Liabilities | $3 |
Debt (Details)
Debt (Details) (USD $) | ||||||||
3 Months Ended
Mar. 05, 2010 | Nov. 27, 2009
| Aug. 13, 2007
| Aug. 13, 2007
From [Member] | Aug. 13, 2007
To [Member] | Feb. 28, 2010
2015 Notes [Member] | Feb. 28, 2010
2020 Notes [Member] | Feb. 28, 2010
2015 and 2020 Notes [Member] | |
Debt (Numeric) [Abstract] | ||||||||
Senior notes , issued | $600,000,000 | $900,000,000 | ||||||
Senior notes , interest rate | 0.0325 | 0.0475 | ||||||
Proceeds from isssuance of senior notes | 1,493,439,000 | |||||||
Net of an issuance discount | 6,561,000 | |||||||
Issuance cost | 10,598,000 | 0 | 10,700,000 | |||||
Amount outstanding under the Notes | 1,494,000,000 | |||||||
Fair value of the Notes | 1,502,000,000 | |||||||
Repurchase notes at price of their principal amount, plus accrued and unpaid interest | 1.01 | |||||||
Total senior unsecured revolving credit facility | 500,000,000 | 1,000,000,000 | ||||||
Option to request an additional credit in commitments | 500,000,000 | |||||||
Maximum aggregate, credit facility | 1,500,000,000 | |||||||
Interest rates: From | 0.002 | |||||||
Interest rates: To | 0.00475 | |||||||
Commitment fees rate: From | 0.0005 | |||||||
Commitment fees rate: To | 0.0015 | |||||||
Amount outstanding, credit facility | $0 | $1,000,000,000 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Details) (USD $) | |||||||||||||||||||
3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | ||||||||||||||||||
Interest and other income, net: | |||||||||||||||||||
Interest income | $5,105,000 | $11,118,000 | |||||||||||||||||
Foreign exchange (losses) gains | (5,084,000) | 634,000 | |||||||||||||||||
Realized gains on fixed income investment | 342,000 | 1,312,000 | |||||||||||||||||
Realized losses on fixed income investment | (1,000) | ||||||||||||||||||
Other, net | 248,000 | 221,000 | |||||||||||||||||
Interest and other income, net | 611,000 | 13,284,000 | |||||||||||||||||
Interest expense | (7,695,000) | (792,000) | |||||||||||||||||
Investment gains (losses), net: | |||||||||||||||||||
Realized investment gains | 183,000 | 103,000 | |||||||||||||||||
Unrealized investment gains | 222,000 | [1] | 124,000 | [1] | |||||||||||||||
Realized investment losses | (405,000) | (1,295,000) | |||||||||||||||||
Unrealized investment losses | (3,534,000) | (16,178,000) | |||||||||||||||||
Investment gains (losses), net | (3,534,000) | (17,246,000) | |||||||||||||||||
Total non-operating income (expense), net | (10,618,000) | (4,754,000) | |||||||||||||||||
Non-Operating Income (Expense) (Numeric) [Abstract] | |||||||||||||||||||
Unrealized holding gains and losses associated with deferred compensation plan assets | $200,000 | $900,000 | |||||||||||||||||
[1]During the three months ended March 5, 2010 and February 27, 2009, we recorded $0.2 million and $0.9 million, respectively, in unrealized holding gains and losses associated with our deferred compensation plan assets (classified as trading securities). |
Segments (Details)
Segments (Details) (USD $) | |||||||||||||||||||
In Thousands | 3 Months Ended
Mar. 05, 2010 | 3 Months Ended
Feb. 27, 2009 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | $858,700 | $786,390 | |||||||||||||||||
Cost of revenue | 89,368 | 77,353 | |||||||||||||||||
Gross profit | 769,332 | 709,037 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.9 | 0.9 | |||||||||||||||||
Segment Reporting (Numeric) [Abstract] | |||||||||||||||||||
Subscription revenue | 95,507 | 12,338 | |||||||||||||||||
Creative Solutions [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 432,023 | 460,728 | |||||||||||||||||
Cost of revenue | 22,835 | 42,750 | |||||||||||||||||
Gross profit | 409,188 | 417,978 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.95 | 0.91 | |||||||||||||||||
Knowledge Worker [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 165,862 | 149,945 | |||||||||||||||||
Cost of revenue | 4,641 | 7,765 | |||||||||||||||||
Gross profit | 161,221 | 142,180 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.97 | 0.95 | |||||||||||||||||
Omniture [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 87,672 | [1] | |||||||||||||||||
Cost of revenue | 42,085 | [1] | |||||||||||||||||
Gross profit | 45,587 | [1] | |||||||||||||||||
Gross profit as a percentage of revenue | 0.52 | [1] | |||||||||||||||||
Segment Reporting (Numeric) [Abstract] | |||||||||||||||||||
Subscription revenue | 77,000 | ||||||||||||||||||
Enterprise [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 79,900 | 77,040 | |||||||||||||||||
Cost of revenue | 15,243 | 15,947 | |||||||||||||||||
Gross profit | 64,657 | 61,543 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.81 | 0.8 | |||||||||||||||||
Platform [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 46,636 | 52,299 | |||||||||||||||||
Cost of revenue | 2,227 | 6,056 | |||||||||||||||||
Gross profit | 44,409 | 46,243 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.95 | 0.88 | |||||||||||||||||
Print And Publishing [Member] | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue | 46,607 | 46,378 | |||||||||||||||||
Cost of revenue | 2,337 | 5,285 | |||||||||||||||||
Gross profit | $44,270 | $41,093 | |||||||||||||||||
Gross profit as a percentage of revenue | 0.95 | 0.89 | |||||||||||||||||
[1]The three months ended March 5, 2010 includes the integration of Omniture as a new reportable segment. The three months ended February 27, 2009 does not include the impact of our acquisition of Omniture. Of the $87.7 million in revenue from our Omniture segment, approximately $77 million represents subscription revenue and the remaining amount represents professional services and support. |
Subsequent Events (Details)
Subsequent Events (Details) (USD $) | |
In Millions | 3 Months Ended
Mar. 05, 2010 |
Subsequent Events (Numeric) [Abstract] | |
Structured stock repurchase prepayment | $250 |