Document and Entity Information
Document and Entity Information Document and Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2018 | Jan. 18, 2019 | Jun. 01, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ADOBE INC. | ||
Entity Central Index Key | 796,343 | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 96,776,869,889 | ||
Entity Common Stock, Shares Outstanding | 487,725,915 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,642,775 | $ 2,306,072 |
Short-term investments | 1,586,187 | 3,513,702 |
Trade receivables, net of allowances for doubtful accounts of $14,981 and $9,151, respectively | 1,315,578 | 1,217,968 |
Prepaid expenses and other current assets | 312,499 | 210,071 |
Total current assets | 4,857,039 | 7,247,813 |
Property and equipment, net | 1,075,072 | 936,976 |
Goodwill | 10,581,048 | 5,821,561 |
Purchased and other intangibles, net | 2,069,001 | 385,658 |
Other assets | 186,522 | 143,548 |
Total assets | 18,768,682 | 14,535,556 |
Current liabilities: | ||
Trade payables | 186,258 | 113,538 |
Accrued expenses | 1,163,185 | 993,773 |
Income taxes payable | 35,709 | 14,196 |
Deferred revenue | 2,915,974 | 2,405,950 |
Total current liabilities | 4,301,126 | 3,527,457 |
Long-term liabilities: | ||
Debt | 4,124,800 | 1,881,421 |
Deferred revenue | 137,630 | 88,592 |
Income taxes payable | 644,101 | 173,088 |
Deferred income taxes payable | 46,702 | 279,941 |
Other liabilities | 152,209 | 125,188 |
Total liabilities | 9,406,568 | 6,075,687 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 2,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.0001 par value; 900,000 shares authorized; 600,834 shares issued; 487,663 and 491,262 shares outstanding, respectively | 61 | 61 |
Additional paid-in-capital | 5,685,337 | 5,082,195 |
Retained earnings | 11,815,597 | 9,573,870 |
Accumulated other comprehensive income (loss) | (148,130) | (111,821) |
Treasury stock, at cost (113,171 and 109,572 shares, respectively), net of reissuances | (7,990,751) | (6,084,436) |
Total stockholders' equity | 9,362,114 | 8,459,869 |
Total liabilities and stockholders' equity | $ 18,768,682 | $ 14,535,556 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Current Assets: | ||
Allowance for doubtful accounts receivable, current | $ 14,981 | $ 9,151 |
Stockholders' Equity: | ||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 900,000 | 900,000 |
Common stock, shares issued | 600,834 | 600,834 |
Common stock, shares outstanding | 487,663 | 491,262 |
Treasury Stock, Shares | 113,171 | 109,572 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Revenue: | |||
Subscription | $ 7,922,152 | $ 6,133,869 | $ 4,584,833 |
Product | 622,153 | 706,767 | 800,498 |
Services and support | 485,703 | 460,869 | 469,099 |
Total revenue | 9,030,008 | 7,301,505 | 5,854,430 |
Cost of revenue: | |||
Subscription | 807,221 | 623,048 | 461,860 |
Product | 46,009 | 57,082 | 68,917 |
Services and support | 341,769 | 330,361 | 289,131 |
Total cost of revenue | 1,194,999 | 1,010,491 | 819,908 |
Gross profit | 7,835,009 | 6,291,014 | 5,034,522 |
Operating expenses: | |||
Research and development | 1,537,812 | 1,224,059 | 975,987 |
Sales and marketing | 2,620,829 | 2,197,592 | 1,910,197 |
General and administrative | 744,898 | 624,706 | 576,202 |
Amortization of purchased intangibles | 91,101 | 76,562 | 78,534 |
Total operating expenses | 4,994,640 | 4,122,919 | 3,540,920 |
Operating income | 2,840,369 | 2,168,095 | 1,493,602 |
Non-operating income (expense): | |||
Interest and other income (expense), net | 39,536 | 36,395 | 13,548 |
Interest expense | (89,242) | (74,402) | (70,442) |
Investment gains (losses), net | 3,213 | 7,553 | (1,570) |
Total non-operating income (expense), net | (46,493) | (30,454) | (58,464) |
Income before income taxes | 2,793,876 | 2,137,641 | 1,435,138 |
Provision for income taxes | 203,102 | 443,687 | 266,356 |
Net income | $ 2,590,774 | $ 1,693,954 | $ 1,168,782 |
Basic net income per share | $ 5.28 | $ 3.43 | $ 2.35 |
Shares used to compute basic net income per share | 490,564 | 493,632 | 498,345 |
Diluted net income per share | $ 5.20 | $ 3.38 | $ 2.32 |
Shares used to compute diluted net income per share | 497,843 | 501,123 | 504,299 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,590,774 | $ 1,693,954 | $ 1,168,782 | |
Available-for-sale Securities: | ||||
Unrealized gains / losses on available-for-sale securities | (24,464) | (2,503) | (1,618) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | 10,650 | [1] | (947) | (1,895) |
Net increase (decrease) from available-for-sale securities | (13,814) | (3,450) | (3,513) | |
Derivatives designated as hedging instruments: | ||||
Unrealized gains / losses on derivative instruments | 74,080 | 6,917 | 35,199 | |
Reclassification adjustment for gains / losses on derivative instruments recognized | (48,981) | [2] | (31,973) | (16,425) |
Net increase (decrease) from derivatives desinated as hedging instruments | 25,099 | (25,056) | 18,774 | |
Foreign currency translation adjustments | (47,594) | 90,287 | (19,783) | |
Other comprehensive income (loss), net of taxes | (36,309) | 61,781 | (4,522) | |
Total comprehensive income, net of taxes | $ 2,554,465 | $ 1,755,735 | $ 1,164,260 | |
[1] | Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. | |||
[2] | Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock [Member] |
Beginning Balances at Nov. 27, 2015 | $ 7,001,580 | $ 61 | $ 4,184,883 | $ 7,253,431 | $ (169,080) | $ (4,267,715) |
Beginning Balances, shares at Nov. 27, 2015 | 600,834 | |||||
Beginning Treasury stock, shares at Nov. 27, 2015 | (103,025) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,168,782 | 1,168,782 | ||||
Other comprehensive income (loss), net of taxes | (4,522) | (4,522) | ||||
Re-issuance of treasury stock under stock compensation plans | (90,703) | 7,365 | (307,696) | $ 209,628 | ||
Re-issuance of treasury stock under stock compensation plans, shares | 6,872 | |||||
Tax benefit from employee stock plans | 75,102 | 75,102 | ||||
Purchase of treasury stock | $ (1,075,000) | $ (1,075,000) | ||||
Purchase of treasury stock, shares | (10,400) | (10,427) | ||||
Equity awards assumed for acquisition | $ 0 | |||||
Stock-based compensation | 348,981 | 348,981 | ||||
Value of shares in deferred compensation plan | 615 | $ 615 | ||||
Ending Balances at Dec. 02, 2016 | 7,424,835 | $ 61 | 4,616,331 | 8,114,517 | (173,602) | $ (5,132,472) |
Ending Balances, shares at Dec. 02, 2016 | 600,834 | |||||
Ending Treasury stock, shares at Dec. 02, 2016 | (106,580) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,693,954 | 1,693,954 | ||||
Other comprehensive income (loss), net of taxes | 61,781 | 61,781 | ||||
Re-issuance of treasury stock under stock compensation plans | (81,775) | 1,768 | (234,601) | $ 151,058 | ||
Re-issuance of treasury stock under stock compensation plans, shares | 5,194 | |||||
Purchase of treasury stock | $ (1,100,000) | $ (1,100,000) | ||||
Purchase of treasury stock, shares | (8,200) | (8,186) | ||||
Equity awards assumed for acquisition | $ 10,348 | 10,348 | ||||
Stock-based compensation | 453,748 | 453,748 | ||||
Value of shares in deferred compensation plan | (3,022) | $ (3,022) | ||||
Ending Balances at Dec. 01, 2017 | $ 8,459,869 | $ 61 | 5,082,195 | 9,573,870 | (111,821) | $ (6,084,436) |
Ending Balances, shares at Dec. 01, 2017 | 600,834 | |||||
Ending Treasury stock, shares at Dec. 01, 2017 | (109,572) | (109,572) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 2,590,774 | 2,590,774 | ||||
Other comprehensive income (loss), net of taxes | (36,309) | (36,309) | ||||
Re-issuance of treasury stock under stock compensation plans | (202,203) | (1,125) | (348,729) | $ 147,651 | ||
Re-issuance of treasury stock under stock compensation plans, shares | 5,087 | |||||
Purchase of treasury stock | $ (2,050,000) | $ (2,050,000) | ||||
Purchase of treasury stock, shares | (8,700) | (8,686) | ||||
Equity awards assumed for acquisition | $ 2,784 | 2,784 | ||||
Stock-based compensation | 601,483 | 601,483 | ||||
Value of shares in deferred compensation plan | (3,966) | $ (3,966) | ||||
Impact of the U.S. Tax Act | (318) | (318) | ||||
Ending Balances at Nov. 30, 2018 | $ 9,362,114 | $ 61 | $ 5,685,337 | $ 11,815,597 | $ (148,130) | $ (7,990,751) |
Ending Balances, shares at Nov. 30, 2018 | 600,834 | |||||
Ending Treasury stock, shares at Nov. 30, 2018 | (113,171) | (113,171) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 2,590,774 | $ 1,693,954 | $ 1,168,782 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 346,492 | 325,997 | 331,535 |
Stock-based compensation | 609,562 | 454,472 | 349,297 |
Deferred income taxes | 468,936 | (51,605) | (24,222) |
Unrealized losses (gains) on investments, net | 793 | (5,494) | 3,145 |
Excess tax benefits from stock-based compensation | 0 | 0 | (75,105) |
Other non-cash items | 7,193 | 4,625 | 2,022 |
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities: | |||
Trade receivables, net | (1,983) | (187,173) | (160,416) |
Prepaid expenses and other current assets | (77,225) | 28,040 | (71,021) |
Trade payables | (54,920) | 45,186 | 6,281 |
Accrued expenses | 43,837 | 151,104 | 65,593 |
Income taxes payable | 479,184 | (34,493) | 43,115 |
Deferred revenue | 444,693 | 475,402 | 524,840 |
Net cash provided by operating activities | 4,029,304 | 2,912,853 | 2,199,728 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (566,084) | (1,931,011) | (2,285,222) |
Maturities of short-term investments | 765,860 | 759,737 | 769,228 |
Proceeds from sales of short-term investments | 1,709,480 | 1,393,929 | 860,849 |
Acquisitions, net of cash acquired | (6,314,382) | (459,626) | (48,427) |
Purchases of property and equipment | (266,579) | (178,122) | (203,805) |
Purchases of long-term investments, intangibles and other assets | (18,513) | (29,918) | (58,433) |
Proceeds from sale of long-term investments and other assets | 4,923 | 2,134 | 5,777 |
Net cash used for investing activities | (4,685,295) | (442,877) | (960,033) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (2,050,000) | (1,100,000) | (1,075,000) |
Proceeds from issuance of treasury stock | 190,990 | 158,351 | 145,697 |
Taxes paid related to net share settlement of equity awards | (393,193) | (240,126) | (236,400) |
Excess tax benefits from stock-based compensation | 0 | 0 | 75,105 |
Proceeds from debt issuance, net of costs | 2,248,342 | 0 | 0 |
Repayment of capital lease obligations | 1,707 | 1,960 | 108 |
Net cash used for financing activities | (5,568) | (1,183,735) | (1,090,706) |
Effect of foreign currency exchange rates on cash and cash equivalents | (1,738) | 8,516 | (14,234) |
Net increase (decrease) in cash and cash equivalents | (663,297) | 1,294,757 | 134,755 |
Cash and cash equivalents at beginning of year | 2,306,072 | 1,011,315 | 876,560 |
Cash and cash equivalents at end of year | 1,642,775 | 2,306,072 | 1,011,315 |
Supplemental disclosures: | |||
Cash paid for income taxes, net of refunds | 210,369 | 396,668 | 249,884 |
Cash paid for interest | 81,258 | 69,430 | 66,193 |
Non-cash investing activities: | |||
Investment in lease receivable applied to building purchase | 0 | 80,439 | 0 |
Issuance of common stock and stock awards assumed in business acquisitions | $ 2,784 | $ 10,348 | $ 0 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Operations Founded in 1982, Adobe Inc. is one of the largest and most diversified software companies in the world. We offer a line of products and services used by creative professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences across personal computers, devices and media. We market and license our products and services directly to enterprise customers through our sales force and to end users through app stores and our own website at www.adobe.com. We offer many of our products via a Software-as-a-Service (“SaaS”) model or a managed services model (both of which are referred to as a hosted or cloud-based) as well as through term subscription and pay-per-use models. We also distribute certain products and services through a network of distributors, value-added resellers (“VARs”), systems integrators (“SIs”), independent software vendors (“ISVs”), retailers, software developers and original equipment manufacturers (“OEMs”). In addition, we license our technology to hardware manufacturers, software developers and service providers for use in their products and solutions. Our products run on personal and server-based computers, as well as on smartphones, tablets and other devices, depending on the product. We have operations in the Americas, Europe, Middle East and Africa (“EMEA”) and Asia-Pacific (“APAC”). Basis of Presentation The accompanying Consolidated Financial Statements include those of Adobe and its subsidiaries, after elimination of all intercompany accounts and transactions. We have prepared the accompanying Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Use of Estimates In preparing Consolidated Financial Statements and related disclosures in conformity with GAAP and pursuant to the rules and regulations of the SEC, we must make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to, sales allowances and programs, bad debts, stock-based compensation, determining the fair value of acquired assets and assumed liabilities, excess inventory and purchase commitments, facilities lease losses, impairment of goodwill and intangible assets, litigation, income taxes and investments. Actual results may differ materially from these estimates. Fiscal Year Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Our financial results for fiscal 2016 benefited from an extra week in the first quarter of fiscal 2016 due to our 52/53-week financial calendar whereby fiscal 2016 was a 53-week fiscal year compared with fiscal 2018 and 2017 which were 52-week fiscal years. Reclassifications Certain immaterial prior year amounts have been reclassified to conform to current year presentation in the Consolidated Statements of Cash Flows. Significant Accounting Policies Revenue Recognition Our revenue is derived from subscription offerings, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of our enterprise customer arrangements are complex, involving multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer. We recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, we have delivered the product or performed the service, the fee is fixed or determinable and collection is probable. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of software, upgrades, maintenance and support, hosted services, and consulting. For our software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our software maintenance and support services, custom software development services, consulting services and training, when such services are sold optionally with software licenses. For multiple-element arrangements containing our non-software services, we must: (1) determine whether and when each element has been delivered; (2) determine the fair value of each element using the selling price hierarchy of VSOE of selling price, third-party evidence (“TPE”) of selling price or best-estimated selling price (“BESP”), as applicable; and (3) allocate the total price among the various elements based on the relative selling price method. For multiple-element arrangements that contain both software and non-software elements, we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy. We determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use BESP. Once revenue is allocated to software or software-related elements as a group, we recognize revenue in conformance with software revenue accounting guidance. Revenue is recognized when revenue recognition criteria are met for each element. We are generally unable to establish VSOE or TPE for non-software elements and as such, we use BESP. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. We determine BESP for a product or service by considering multiple factors including, but not limited to major product groupings, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. We must estimate certain royalty revenue amounts due to the timing of securing information from our customers. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Accordingly, our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events, thus materially impacting our financial position and results of operations. Subscription and Services and Support Revenue We recognize revenue for hosted services that are priced based on a committed number of transactions, ratably beginning on the date the services associated with the committed transactions are first made available to the customer and continuing through the end of the contractual service term. Over-usage fees, and fees billed based on the actual number of transactions from which we capture data, are billed in accordance with contract terms as these fees are incurred. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue, depending on whether all revenue recognition criteria have been met. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to the licensing of our enterprise, mobile and device products and solutions. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. Our consulting revenue is recognized using a time and materials basis and is measured monthly based on input measures, such as hours incurred to date, with consideration given to output measures, such as contract milestones when applicable. Our maintenance and support offerings, which entitle customers to receive product upgrades and enhancements on a when and if available basis or technical support, depending on the offering, are recognized ratably over the performance period of the arrangement. Our software subscription offerings, which may include product upgrades and enhancements on a when and if available basis, hosted services, and online storage, are generally offered to our customers over a specified period of time and we recognize revenue associated with these arrangements ratably over the subscription period. Product Revenue We recognize our product revenue upon shipment, provided all other revenue recognition criteria have been met. Our desktop application product revenue from distributors is subject to agreements allowing limited rights of return, rebates and price protection. Our direct sales and OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized for estimated future returns, price protection and rebates at the time the related revenue is recorded. The estimates for returns are adjusted periodically based upon historical rates of returns, inventory levels in the distribution channel and other related factors. We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating our software, provided collection of such revenue is deemed probable. For certain OEM customers, we must estimate royalty revenue due to the timing of securing customer information. This estimate is based on a combination of our generated forecasts and actual historical reporting by our OEM customers. To substantiate our ability to estimate revenue, we review license royalty revenue reports ultimately received from our significant OEM customers in comparison to the amounts estimated in the prior period. Our product-related deferred revenue includes maintenance upgrade revenue and customer advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application products is included in our product revenue line item as the maintenance primarily entitles customers to receive product upgrades. In cases where we provide a specified free upgrade to an existing product, we defer the fair value for the specified upgrade right until the future obligation is fulfilled or when the right to the specified free upgrade expires. Rights of Return, Rebates and Price Protection As discussed above, we offer limited rights of return, rebates and price protection of our products under various policies and programs with our distributors, resellers and/or end-user customers. We estimate and record reserves for these programs as an offset to revenue and accounts receivable. Below is a summary of each of the general provisions in our contracts: • Distributors are allowed limited rights of return of products purchased during the previous quarter. In addition, distributors are allowed to return products that have reached the end of their lives, as defined by us, and products that are being replaced by new versions. • We offer rebates to our distributors, resellers and/or end user customers. The amount of revenue that is reduced for distributor and reseller rebates is based on actual performance against objectives set forth by us for a particular reporting period (volume, timely reporting, etc.). If mail-in or other promotional rebates are offered, the amount of revenue reduced is based on the dollar amount of the rebate, taking into consideration an estimated redemption rate calculated using historical trends. • From time to time, we may offer price protection to our distributors that allow for the right to a credit if we permanently reduce the price of a software product. The amount of revenue that is reduced for price protection is calculated as the difference between the old and new price of a software product on inventory held by the distributor immediately prior to the effective date of the decrease. Although our subscription contracts are generally non-cancellable, a limited number of customers have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. In the event a customer cancels its contract, they are not entitled to a refund for prior services we have provided to them. On a quarterly basis, the amount of revenue that is reserved for future returns is calculated based on our historical trends and data specific to each reporting period. We review the actual returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate. We then apply the historical rate to the current period revenue as a basis for estimating future returns. When necessary, we also provide a specific returns reserve for product in the distribution channel in excess of estimated requirements. This estimate can be affected by the amount of a particular product in the channel, the rate of sell-through, product plans and other factors. Revenue Reserve Revenue reserve rollforward (in thousands): 2018 2017 2016 Beginning balance $ 22,006 $ 23,096 $ 19,446 Amount charged to revenue 65,241 61,031 55,739 Actual returns (61,822 ) (62,121 ) (52,089 ) Ending balance $ 25,425 $ 22,006 $ 23,096 Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition for our products and solutions described above. We recognize deferred revenue as revenue only when the revenue recognition criteria are met. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts which reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on both specific and general reserves. We regularly review our trade receivables allowances by considering such factors as historical experience, credit-worthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to pay and we specifically reserve for those deemed uncollectible. (in thousands) 2018 2017 2016 Beginning balance $ 9,151 $ 6,214 $ 7,293 Increase due to acquisition 5,602 2,391 77 Charged to operating expenses 5,962 4,411 1,337 Deductions (1) (5,734 ) (3,865 ) (2,493 ) Ending balance $ 14,981 $ 9,151 $ 6,214 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. Property and Equipment We record property and equipment at cost less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over their estimated useful lives ranging from 1 to 5 years for computers and equipment as well as server hardware under capital leases, 1 to 6 years for furniture and fixtures, 5 to 20 years for building improvements and up to 40 years for buildings. Leasehold improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or estimated useful lives ranging from 1 to 15 years. Goodwill, Purchased Intangibles and Other Long-Lived Assets Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our second quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segment’s net assets and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed. If the qualitative assessment indicates that the quantitative analysis should be performed, we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We completed our annual goodwill impairment test in the second quarter of fiscal 2018 . We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment and the quantitative goodwill impairment test was not performed. We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year. We amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists. We continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets, including our intangible assets may not be recoverable. When such events or changes in circumstances occur, we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets. We did not recognize any intangible asset impairment charges in fiscal 2018 , 2017 or 2016 . During fiscal 2018 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years. Amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent. The weighted average useful lives of our intangible assets were as follows: Weighted Average Useful Life (years ) Purchased technology 6 Customer contracts and relationships 9 Trademarks 9 Acquired rights to use technology 10 Backlog 2 Other intangibles 4 Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. Taxes Collected from Customers We net taxes collected from customers against those remitted to government authorities in our financial statements. Accordingly, taxes collected from customers are not reported as revenue. Treasury Stock We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Consolidated Balance Sheets. Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses for fiscal 2018 , 2017 and 2016 were $173.6 million , $141.7 million and $135.8 million , respectively. Foreign Currency Translation We translate assets and liabilities of foreign subsidiaries, whose functional currency is their local currency, at exchange rates in effect at the balance sheet date. We translate revenue and expenses at the monthly average exchange rates. We include accumulated net translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income (loss). Foreign Currency and Other Hedging Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option and forward contracts to hedge a portion of our forecasted foreign currency denominated revenue primarily in Euros, British Pounds and Japanese Yen. We hedge our net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Contracts that do not qualify for hedge accounting are adjusted to fair value through earnings. See Note 5 for information regarding our hedging activities. Gains and losses from foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income, net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue are designated as cash flow hedges with gains and losses recorded net of tax, as a component of other comprehensive income in stockholders’ equity and reclassified into revenue at the time the forecasted transactions occur. Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk are short-term fixed-income investments, structured repurchase transactions, foreign currency and interest rate hedge contracts and trade receivables. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and investments are held and primarily managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer and we believe no significant concentration of credit risk exists with respect to these investments. We enter into foreign currency hedge contracts with bank counterparties that could expose us to credit related losses in the event of their nonperformance. This is largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit related losses with the same counterparty by permitting net settlement transactions. The aggregate fair value of foreign currency contracts in net asset positions as of November 30, 2018 and December 1, 2017 was $44.3 million and $14.2 million respectively. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. These exposures could be reduced by certain immaterial liabilities included in master netting arrangements with those same counterparties. Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and software products to the retail market, customers to whom we license software directly and our SaaS offerings. A credit review is completed for our new distributors, dealers and OEMs. We also perform ongoing credit evaluations of our customers’ financial condition and require letters of credit or other guarantees, whenever deemed necessary. The credit limit given to the customer is based on our risk assessment of their ability to pay, country risk and other factors and is not contingent on the resale of the product or on the collection of payments from their customers. If we license our software or provide SaaS services to a customer where we have a reason to believe the customer’s ability to pay is not probable, due to country risk or credit risk, we will not recognize the revenue. We will revert to recognizing the revenue on a cash basis, assuming all other criteria for revenue recognition has been met. Recently Adopted Accounting Guidance On January 26, 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment, which eliminated step two from the goodwill impairment test. In assessing impairment of goodwill, if it is concluded that it is more likely than not that the carrying amount of a reportable segment exceeds its fair value during the qualitative assessment, a one-step goodwill impairment test will be performed. If it is concluded during the quantitative test that the carrying amount of a reportable segment exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reportable segment. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. In the first quarter of 2018, we early adopted ASU 2017-04. The standard did not have an impact to our qualitative assessment for goodwill impairment that we performed in the second quarter of fiscal 2018. There have been no other new accounting pronouncements made effective during fiscal 2018 that have significance, or potential significance, to our Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the full retrospective or modified retrospective transition method. The updated standard is effective for us in the first quarter of fiscal 2019. We will adopt this updated standard in the first quarter of fiscal 2019 on a modified retrospective basis. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. While we are continuing to assess all potential impacts of the new standard, we believe there should not be a material change to the amount of consolidated revenues on an annual basis. We expect revenue related to our cloud offerings, including Creative Cloud and Document Cloud for business enterprises, individuals and teams, to remain substantially unchanged. When sold with cloud-enabled services, Creative Cloud and Document Cloud require a significant level of integration and interdependency with software and the individual components are not considered distinct. Revenue for these offerings will continue to be recognized over the period in which the cloud services are provided. We believe the most significant revenue-related impact relates to our accounting for arrangements that include on-premise term-based software licenses bundled with maintenance and support. Under current GAAP, the revenue attributable to these software licenses is recognized ratably over the term of the arrangement because VSOE does not exist for the undelivered maintenance and support element as it is not sold separately. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fee upon delivery of the software licenses and potentially classify such revenue as “product” instead of “subscription” revenue on the income statement. We offer on-premise term-based software licenses bundled with maintenance and support as a deployment model for certain offerings within our Digital Experience, Digital Media, and Publishing business units. We do not expect these arrangements to have a material impact to revenue reported in annual reporting periods subsequent to adoption, however they may result in a material balance sheet impact on the date of adoption due to the application of the modified retrospective transition method. The modified retrospective method requires upon adoption that we recognize the impact of applying the new standard to contracts that are not completed at the date of initial adoption, but under this adoption method, we do not restate prior financial statements. We will record a cumulative effect of initially applying the provisions of the new standard as an adjustment to increase the opening retained earnings balance and reduce the opening deferred revenue balance. Further, some of our enterprise agreements allow our customers to commit to prepaid bank of funds which can be utilized to purchase Adobe products or services, which includes customer option to purchase or renew on-premise term-based licenses on a monthly basis. Revenue associated with these term-license performance obligations would be recognized monthly. Other expected impacts to our policies and disclosures include: earlier recognition of revenue for certain contracts due to the elimination of contingent revenue limitations, an unbilled receivable balance on our balance sheets, the requirement to estimate variable consideration for certain arrangements, increased allocation of revenue to and from professional services and other offerings, and changes to our financial statement disclosures such as remaining performance obligations. Under current GAAP, we expense costs related to the acquisition of revenue-generating contracts as incurred. Under the new standard, we will be required to capitalize certain costs incremental to contract acquisition and amortize them over the expected period of benefit. We expect there will be a material balance sheet impact at the period of adoption to capitalize costs of obtaining the contract as an ass |
Acquisitions
Acquisitions | 12 Months Ended |
Nov. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Marketo On October 31, 2018 , we completed the acquisition of Marketo, a privately held marketing cloud platform company, for approximately $4.74 billion of cash consideration. Adding Marketo’s engagement platform to Adobe Experience Cloud furthers our long-term plan for strategic growth in the Digital Experience segment and enables us to offer a comprehensive set of solutions to enable customers across industries and companies automate and orchestrate their marketing activities. Under the terms of the Share Purchase Agreement (the “Purchase Agreement”), we acquired all of the issued and outstanding shares of capital stock of Milestone Topco, Inc., a Delaware corporation (“Topco”) and indirect parent company of Marketo, and other equity interests in Marketo. In connection with the acquisition, each Marketo equity award that was issued and outstanding was cancelled and extinguished in exchange for cash consideration. Also pursuant to the Purchase Agreement, upon closing of the transaction, cash was paid for the settlement of Marketo’s long-term incentive plan, the settlement of Marketo’s indebtedness and the acquisition of all remaining equity interests in Marketo K.K., a Japanese corporation and joint venture. In connection with the acquisition of Marketo, we entered into a credit agreement providing for a $2.25 billion senior unsecured term loan (the “Term Loan”). The proceeds of the Term Loan were used to (i) fund a portion of the purchase price of the acquisition and (ii) to pay fees and expenses incurred in connection with the acquisition. The Term Loan funds were received on October 31, 2018 upon closing of the acquisition and will mature 18 months following the initial funding date. See Note 15 for further details regarding our debt. Following the closing, we began integrating Marketo into our Digital Experience reportable segment. We have included the financial results of Marketo in our Consolidated Financial Statements beginning on the acquisition date. The amounts of net revenue and net loss of Marketo included in the Company’s Consolidated Statements of Income from the acquisition date through November 30, 2018 were not material. The direct transaction costs associated with the acquisition were also not material. Purchase Price Allocation Under the purchase accounting method, the total preliminary purchase price was allocated to Marketo’s net tangible and intangible assets based upon their estimated fair values as of the acquisition date. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The table below represents the preliminary purchase price allocation to the acquired net tangible and intangible assets of Marketo based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to intangible assets acquired, deferred revenue and tax liabilities assumed including the calculation of deferred tax assets and liabilities. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 576,900 11 Purchased technology 444,500 7 Backlog 105,800 2 Non-competition agreements 12,100 2 Trademarks 328,500 9 Total identifiable intangible assets 1,467,800 Net liabilities assumed (191,288 ) N/A Goodwill (1) 3,459,751 N/A Total estimated purchase price $ 4,736,263 _________________________________________ (1) Non-deductible for tax-purposes. Identifiable intangible assets —Customer relationships consist of Marketo’s contractual relationships and customer loyalty related to their enterprise and commercial customers as well as technology partner relationships. The estimated fair value of the customer contracts and relationships was determined based on projected cash flows attributable to the asset. Purchased technology acquired primarily consists of Marketo’s cloud-based engagement marketing software platform. The estimated fair value of the purchased technology was determined based on the expected future cost savings resulting from ownership of the asset. Backlog relates to subscription contracts and professional services. Non-compete agreements include agreements with key Marketo employees that preclude them from competing against Marketo for a period of two years from the acquisition date. Trademarks include the Marketo trade name, which is well known in the marketing ecosystem. We amortize the fair value of these intangible assets on a straight-line basis over their respective estimated useful lives. Goodwill —Approximately $3.46 billion has been allocated to goodwill, and has been allocated in full to the Digital Experience reportable segment. Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. The factors that contributed to the recognition of goodwill included securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a marketplace participant, acquiring a talented workforce and cost savings opportunities. Net liabilities assumed —Marketo’s tangible assets and liabilities as of October 31, 2018 were reviewed and adjusted to their fair value as necessary. The net liabilities assumed included, among other items, $100.1 million in accrued expenses, $74.8 million in deferred revenue and $182.6 million in deferred tax liabilities, which were partially offset by $54.9 million in cash and cash equivalents and $72.4 million in trade receivables acquired. Deferred revenue —Included in net liabilities assumed is Marketo’s deferred revenue which represents advance payments from customers related to subscription contracts and professional services. We estimated our obligation related to the deferred revenue using the cost build-up approach. The cost build-up approach determines fair value by estimating the direct and indirect costs related to supporting the obligation plus an assumed operating margin. The sum of the costs and assumed operating profit approximates, in theory, the amount that Marketo would be required to pay a third party to assume the obligation. The estimated costs to fulfill the obligation were based on the near-term projected cost structure for subscription and professional services. As a result, we recorded an adjustment to reduce Marketo’s carrying value of deferred revenue to $74.8 million , which represents our estimate of the fair value of the contractual obligations assumed based on a preliminary valuation. Taxes —As part of our accounting for the Marketo acquisition, a portion of the overall purchase price was allocated to goodwill and acquired intangible assets. Amortization expense associated with acquired intangible assets is not deductible for tax purposes. Thus, approximately $348.8 million , included in the net liabilities assumed, was established as a deferred tax liability for the future amortization of the intangible assets, and was partially offset by other tax assets of $166.2 million , which primarily consist of net operating loss carryforwards. Any impairment charges made in the future associated with goodwill will not be tax deductible and will result in an increased effective income tax rate in the quarter the impairment is recorded. Unaudited Pro Forma Results The financial information in the table below summarizes the combined results of operations of Adobe and Marketo, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 3, 2016 or of results that may occur in the future. The following unaudited pro forma financial information for fiscal 2018 and 2017 combines the historical results for Adobe for the years ended November 30, 2018 and December 1, 2017 and the historical results of Marketo for the period January 1, 2018 through October 31, 2018 and the year ended December 31, 2017, respectively (in thousands): 2018 2017 Net revenues $ 9,338,790 $ 7,568,713 Net income $ 2,362,238 $ 1,404,864 Magento On June 18, 2018 , we completed our acquisition of Magento, a privately held commerce platform company. During the third quarter of fiscal 2018, we began integrating Magento into our Digital Experience reportable segment. The table below represents the preliminary purchase price allocation to the acquired net tangible and intangible assets of Magento based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to tax liabilities assumed including the calculation of deferred tax assets and liabilities. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 208,000 8 Purchased technology 84,200 5 In-process research and development (1) 39,100 N/A Trademarks 21,100 3 Other intangibles 43,400 3 Total identifiable intangible assets 395,800 Net liabilities assumed (67,417 ) N/A Goodwill (2) 1,316,217 N/A Total estimated purchase price $ 1,644,601 _________________________________________ (1) Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. (2) Non-deductible for tax-purposes. Pro forma information has not been presented for the Magento acquisition as the impact to our Consolidated Financial Statements was not material. TubeMogul On December 19, 2016 , we completed our acquisition of TubeMogul, a publicly held video advertising platform company. As of the end of fiscal 2018, we have integrated TubeMogul into our Digital Experience reportable segment. Under the acquisition method of accounting, the total final purchase price was allocated to TubeMogul’s net tangible and intangible assets based upon their estimated fair values as of December 19, 2016 . During fiscal 2017, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to tangible assets, liabilities assumed, and their related impact to goodwill. The total final purchase price for TubeMogul was $560.8 million of which $348.4 million was allocated to goodwill that was non-deductible for tax purposes, $113.1 million to identifiable intangible assets and $99.3 million to net assets acquired. Pro forma information has not been presented for the TubeMogul acquisition as the impact to our Consolidated Financial Statements was not material. Other We also completed other immaterial business acquisitions during the fiscal years presented. Pro forma information has not been presented for these acquisitions as the impact to our Consolidated Financial Statements was not material. Allegorithmic Subsequent to November 30, 2018 , we acquired the remaining interest in Allegorithmic SAS (“Allegorithmic”), a privately-held 3D editing and authoring software company for gaming and entertainment, for approximately $105.0 million in cash consideration. The initial purchase accounting for this transaction has not yet been completed given the short period of time between the acquisition date and the issuance of these financial statements. Allegorithmic will be integrated into our Digital Media reportable segment for financial reporting purposes in the first quarter of fiscal 2019. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 12 Months Ended |
Nov. 30, 2018 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify all of our cash equivalents and short-term investments as “available-for-sale.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are recognized when realized in our Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2018 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 368,564 $ — $ — $ 368,564 Cash equivalents: Money market mutual funds 1,234,188 — — 1,234,188 Time deposits 40,023 — — 40,023 Total cash equivalents 1,274,211 — — 1,274,211 Total cash and cash equivalents 1,642,775 — — 1,642,775 Short-term fixed income securities: Asset-backed securities 41,875 — (367 ) 41,508 Corporate debt securities 1,546,860 44 (24,696 ) 1,522,208 Foreign government securities 4,179 — (24 ) 4,155 Municipal securities 18,601 1 (286 ) 18,316 Total short-term investments 1,611,515 45 (25,373 ) 1,586,187 Total cash, cash equivalents and short-term investments $ 3,254,290 $ 45 $ (25,373 ) $ 3,228,962 Cash, cash equivalents and short-term investments consisted of the following as of December 1, 2017 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 280,488 $ — $ — $ 280,488 Cash equivalents: Money market mutual funds 2,006,741 — — 2,006,741 Time deposits 18,843 — — 18,843 Total cash equivalents 2,025,584 — — 2,025,584 Total cash and cash equivalents 2,306,072 — — 2,306,072 Short-term fixed income securities: Asset-backed securities 98,403 1 (403 ) 98,001 Corporate debt securities 2,461,691 2,694 (10,125 ) 2,454,260 Foreign government securities 2,396 — (8 ) 2,388 Municipal securities 21,189 8 (132 ) 21,065 U.S. Treasury securities 941,538 2 (3,552 ) 937,988 Total short-term investments 3,525,217 2,705 (14,220 ) 3,513,702 Total cash, cash equivalents and short-term investments $ 5,831,289 $ 2,705 $ (14,220 ) $ 5,819,774 See Note 4 for further information regarding the fair value of our financial instruments. The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 538,109 $ (7,966 ) $ 1,338,232 $ (5,459 ) Asset-backed securities 6,696 (54 ) 64,618 (193 ) Municipal securities 6,599 (81 ) 11,805 (115 ) Foreign government securities — — 2,388 (8 ) U.S. Treasury securities — — 593,296 (2,087 ) Total $ 551,404 $ (8,101 ) $ 2,010,339 $ (7,862 ) There w e re 369 securities and 894 securities in an unrealized loss position for less than twelve months at November 30, 2018 and at December 1, 2017 , respectively. The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 969,701 $ (16,730 ) $ 500,689 $ (4,666 ) Asset-backed securities 34,812 (313 ) 32,383 (210 ) Municipal securities 11,532 (205 ) 598 (17 ) Foreign government securities 4,154 (24 ) — — U.S. Treasury securities — — 338,950 (1,465 ) Total $ 1,020,199 $ (17,272 ) $ 872,620 $ (6,358 ) There were 577 securities and 360 securities in an unrealized loss position for more than twelve months at November 30, 2018 and at December 1, 2017 , respectively. The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of November 30, 2018 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 615,867 $ 612,104 Due between one and two years 574,554 564,199 Due between two and three years 289,033 282,144 Due after three years 132,061 127,740 Total $ 1,611,515 $ 1,586,187 We review our debt and marketable equity securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. We consider factors such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer and our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of the investment’s amortized cost basis. If we believe that an other-than-temporary decline exists in one of these securities, we write down these investments to fair value. For debt securities, the portion of the write-down related to credit loss would be recorded to interest and other income, net in our Consolidated Statements of Income. Any portion not related to credit loss would be recorded to accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. For equity securities, the write-down would be recorded to investment gains (losses), net in our Consolidated Statements of Income. During fiscal 2018 and 2017 , we did not consider any of our investments to be other-than-temporarily impaired. During fiscal 2016 , we recorded immaterial other-than-temporary impairment losses associated with certain of our fixed income securities and wrote down the securities to fair value. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis We measure certain financial assets and liabilities at fair value on a recurring basis. There have been no transfers between fair value measurement levels during the year ended November 30, 2018 . The fair value of our financial assets and liabilities at November 30, 2018 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 1,234,188 $ 1,234,188 $ — $ — Time deposits 40,023 40,023 — — Short-term investments: Asset-backed securities 41,508 — 41,508 — Corporate debt securities 1,522,208 — 1,522,208 — Foreign government securities 4,155 — 4,155 — Municipal securities 18,316 — 18,316 — Prepaid expenses and other current assets: Foreign currency derivatives 44,259 — 44,259 — Other assets: Deferred compensation plan assets 68,988 3,895 65,093 — Total assets $ 2,973,645 $ 1,278,106 $ 1,695,539 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 816 $ — $ 816 $ — Other liabilities: Interest rate swap derivatives 9,744 — 9,744 — Total liabilities $ 10,560 $ — $ 10,560 $ — The fair value of our financial assets and liabilities at December 1, 2017 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 2,006,741 $ 2,006,741 $ — $ — Time deposits 18,843 18,843 — — Short-term investments: Asset-backed securities 98,001 — 98,001 — Corporate debt securities 2,454,260 — 2,454,260 — Foreign government securities 2,388 — 2,388 — Municipal securities 21,065 — 21,065 — U.S. Treasury securities 937,988 — 937,988 — Prepaid expenses and other current assets: Foreign currency derivatives 14,198 — 14,198 — Other assets: Deferred compensation plan assets 56,690 2,573 54,117 — Total assets $ 5,610,174 $ 2,028,157 $ 3,582,017 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 1,598 $ — $ 1,598 $ — Other liabilities: Interest rate swap derivatives 1,058 — 1,058 — Total liabilities $ 2,656 $ — $ 2,656 $ — See Note 3 for further information regarding the fair value of our financial instruments. Our fixed income available-for-sale debt securities consist of high quality, investment grade securities from diverse issuers with a weighted average credit rating of A+. We value these securities based on pricing from independent pricing vendors who use matrix pricing valuation techniques including market approach methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Inputs include quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value, including benchmark yields, issuer spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. We therefore classify all of our fixed income available-for-sale securities as Level 2. We perform routine procedures such as comparing prices obtained from multiple independent sources to ensure that appropriate fair values are recorded. The fair values of our money market mutual funds and time deposits are based on the closing price of these assets as of the reporting date. We classify our money market mutual funds and time deposits as Level 1. Our Level 2 over-the-counter foreign currency and interest rate swap derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange and interest rate data at the measurement date. Our deferred compensation plan assets consist of money market mutual funds and other mutual funds. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We also have direct investments in privately held companies accounted for under the cost and equity method, which are periodically assessed for other-than-temporary impairment. If we determine that an other-than-temporary impairment has occurred, we write down the investment to its fair value. We estimate fair value of our cost and equity method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. During fiscal 2018 and 2017 , we determined there were no other-than-temporary impairments on our cost and equity method investments. During fiscal 2016 , we determined there were immaterial other-than-temporary impairments on certain of our cost method investments and wrote down the investments to fair value. The fair value of our senior notes was $1.89 billion as of November 30, 2018 , based on observable market prices in less active markets and categorized as Level 2. See Note 15 for further details regarding our debt. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES Hedge Accounting and Hedging Programs We recognize derivative instruments and hedging activities as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. We evaluate hedge effectiveness at the inception of the hedge prospectively as well as retrospectively, and record any ineffective portion of the hedging instruments in interest and other income (expense), net on our Consolidated Statements of Income. The net gain (loss) recognized in interest and other income (expense), net for cash flow hedges due to hedge ineffectiveness was insignificant for all fiscal years presented. The time value of purchased contracts is recorded in interest and other income (expense), net in our Consolidated Statements of Income. The bank counterparties to these contracts expose us to credit-related losses in the event of their nonperformance which are largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit-related losses with the same counterparty by permitting net settlement of transactions. Balance Sheet Hedging — Hedges of Foreign Currency Assets and Liabilities We also hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded to interest and other income (expense), net in our Consolidated Statements of Income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of November 30, 2018 , total notional amounts of outstanding contracts were $427.9 million which included the notional equivalent of $158.8 million in Euros, $51.5 million in British Pounds, $77.2 million in Japanese Yen, $50.7 million in Indian Rupees, and $89.7 million in other foreign currencies. As of December 1, 2017 , total notional amounts of outstanding contracts were $333.9 million which included the notional equivalent of $105.0 million in Euros, $34.6 million in British Pounds, $45.4 million in Japanese Yen, $78.0 million in Indian Rupees, and $70.9 million in other foreign currencies. At November 30, 2018 and December 1, 2017 , the outstanding balance sheet hedging derivatives had maturities of 180 days or less. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months . We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to interest and other income (expense), net in our Consolidated Statements of Income at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in interest and other income (expense), net in our Consolidated Statements of Income. For fiscal 2018 , 2017 , and 2016 , there were no net gains or losses recognized in other income relating to hedges of forecasted transactions that did not occur. Fair Value Hedging—Hedges of Interest Rate Risks During the third quarter of fiscal 2014, we entered into interest rate swaps designated as a fair value hedge related to our $900 million of 4.75% fixed interest rate senior notes due February 1, 2020 (the “2020 Notes”). In effect, the interest rate swaps convert the fixed interest rate on our 2020 Notes to a floating interest rate based on the London Interbank Offered Rate (“LIBOR”). Under the terms of the swaps, we will pay monthly interest at the one-month LIBOR rate plus a fixed number of basis points on the $900 million notional amount through February 1, 2020. In exchange, we will receive 4.75% fixed rate interest from the swap counterparties. See Note 15 for further details regarding our debt. The interest rate swaps are accounted for as fair value hedges and substantially offset the changes in fair value of the hedged portion of the underlying debt that are attributable to the changes in market risk. Therefore, the gains and losses related to changes in the fair value of the interest rate swaps are included in interest and other income (expense), net in our Consolidated Statements of Income. The fair value of the interest rate swaps is reflected in other liabilities or other assets in our Consolidated Balance Sheets. The fair value of derivative instruments on our Consolidated Balance Sheets as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange option contracts (1)(2) $ 40,191 $ — $ 12,918 $ — Interest rate swap (3) — 9,744 — 1,058 Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 4,068 816 1,280 1,598 Total derivatives $ 44,259 $ 10,560 $ 14,198 $ 2,656 _________________________________________ (1) Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next twelve months. (3) Included in other liabilities on our Consolidated Balance Sheets. The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Derivatives in cash flow hedging relationships: Net gain (loss) recognized in other comprehensive income, net of tax (1) $ 74,080 $ — $ 6,917 $ — $ 36,511 $ — Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax (2) $ 48,647 $ — $ 32,852 $ — $ 18,823 $ — Net gain (loss) recognized in income (3) $ (41,179 ) $ — $ (30,243 ) $ — $ (29,169 ) $ — Derivatives not designated as hedging relationships: Net gain (loss) recognized in income (4) $ — $ 1,529 $ — $ 6,586 $ — $ (1,308 ) _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. (4) Classified in interest and other income (expense), net. Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ 882 $ (6,142 ) $ 832 Net unrealized gain (loss) recognized in other income (3,843 ) (907 ) (6,070 ) (2,961 ) (7,049 ) (5,238 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain (loss) recognized in other income (2,042 ) 5,415 174 Net unrealized gain (loss) recognized in other income 3,571 1,171 (1,482 ) 1,529 6,586 (1,308 ) Net gain (loss) recognized in interest and other income (expense), net $ (1,432 ) $ (463 ) $ (6,546 ) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Nov. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Computers and equipment $ 1,239,033 $ 1,128,264 Furniture and fixtures 121,206 115,273 Capital projects in-progress 23,026 5,575 Leasehold improvements 181,990 120,165 Land 145,065 77,723 Buildings 485,024 490,665 Building improvements 285,564 265,829 Total 2,480,908 2,203,494 Less accumulated depreciation and amortization (1,405,836 ) (1,266,518 ) Property and equipment, net $ 1,075,072 $ 936,976 Depreciation and amortization expense of property and equipment for fiscal 2018 , 2017 and 2016 was $157.1 million , $156.9 million and $157.6 million , respectively. In March 2017, we exercised our option to purchase the Almaden Tower for a total purchase price of $103.6 million . We capitalized the Almaden Tower as property and equipment on our Consolidated Balance Sheets at $104.2 million , the lesser of cost or fair value, which represented the total purchase price plus other direct costs associated with the purchase. |
Goodwill and Purchased and Othe
Goodwill and Purchased and Other Intangibles | 12 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND PURCHASED AND OTHER INTANGIBLES | GOODWILL AND PURCHASED AND OTHER INTANGIBLES Goodwill by reportable segment and activity for the years ended November 30, 2018 and December 1, 2017 was as follows (in thousands): 2016 Acquisitions Other (1) 2017 Acquisitions Other (1) 2018 Digital Media $ 2,796,590 $ — $ 4,501 $ 2,801,091 $ — $ (2,481 ) $ 2,798,610 Digital Experience 2,351,462 348,352 62,232 2,762,046 4,791,216 (29,246 ) 7,524,016 Publishing 258,422 — 2 258,424 — (2 ) 258,422 Goodwill $ 5,406,474 $ 348,352 $ 66,735 $ 5,821,561 $ 4,791,216 $ (31,729 ) $ 10,581,048 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. Purchased and other intangible assets by reportable segment as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Digital Media $ 408,602 $ 128,243 Digital Experience 1,660,396 257,408 Publishing 3 7 Purchased and other intangible assets, net $ 2,069,001 $ 385,658 Purchased and other intangible assets as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Purchased technology $ 750,286 $ (118,812 ) $ 631,474 $ 223,252 $ (110,433 ) $ 112,819 Customer contracts and relationships $ 1,329,432 $ (416,176 ) $ 913,256 $ 577,484 $ (356,613 ) $ 220,871 Trademarks 384,855 (25,968 ) 358,887 76,255 (56,094 ) 20,161 Acquired rights to use technology 58,966 (48,770 ) 10,196 71,130 (54,223 ) 16,907 Backlog 147,300 (13,299 ) 134,001 4,813 (3,037 ) 1,776 Other intangibles 51,096 (29,909 ) 21,187 34,483 (21,359 ) 13,124 Total other intangible assets $ 1,971,649 $ (534,122 ) $ 1,437,527 $ 764,165 $ (491,326 ) $ 272,839 Purchased and other intangible $ 2,721,935 $ (652,934 ) $ 2,069,001 $ 987,417 $ (601,759 ) $ 385,658 In fiscal 2018 and 2017 , certain purchased intangibles associated with our acquisitions in prior years became fully amortized and were removed from the Consolidated Balance Sheets. Amortization expense related to purchased and other intangible assets was $182.6 million , $153.6 million , and $152.4 million for fiscal 2018 , 2017 and 2016 respectively. Of these amounts, $91.3 million , $76.1 million , and $71.1 million were included in cost of sales for fiscal 2018 , 2017 and 2016 respectively. Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 14 years. As of November 30, 2018 , we expect amortization expense in future periods to be as follows (in thousands): Fiscal Year Purchased Technology (*) Other Intangible Assets 2019 $ 114,445 $ 270,588 2020 112,153 233,064 2021 89,783 146,541 2022 82,119 132,188 2023 72,166 132,046 Thereafter 121,708 523,100 Total expected amortization expense $ 592,374 $ 1,437,527 _________________________________________ (*) Excludes $39.1 million of capitalized in-process research and development which are considered indefinite lived until the completion or abandonment of the associated research and development efforts |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Nov. 30, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses as of November 30, 2018 and December 1, 2017 consisted of the following (in thousands): 2018 2017 Accrued compensation and benefits $ 313,874 $ 256,862 Accrued bonuses 216,007 160,880 Accrued media costs 124,849 134,525 Sales and marketing allowances 44,968 47,389 Accrued corporate marketing 66,186 72,087 Taxes payable 57,525 49,550 Royalties payable 51,529 46,411 Accrued interest expense 29,481 25,594 Other 258,766 200,475 Accrued expenses $ 1,163,185 $ 993,773 Accrued media costs primarily relate to our advertising platform offerings. We accrue for media costs related to impressions purchased from third-party ad inventory sources. Other primarily includes general corporate accruals for local and regional expenses. Other is also comprised of deferred rent related to office locations with rent escalations and foreign currency liability derivatives. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes for fiscal 2018 , 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Domestic $ 542,948 $ 1,056,156 $ 805,749 Foreign 2,250,928 1,081,485 629,389 Income before income taxes $ 2,793,876 $ 2,137,641 $ 1,435,138 The provision for income taxes for fiscal 2018 , 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Current: United States federal $ 501,272 $ 298,802 $ 94,396 Foreign 140,308 60,962 59,749 State and local 28,612 33,578 15,222 Total current 670,192 393,342 169,367 Deferred: United States federal (466,113 ) 48,905 33,924 Foreign (9,734 ) (4,242 ) (2,751 ) State and local 8,757 5,682 (9,287 ) Total deferred (467,090 ) 50,345 21,886 Tax expense attributable to employee stock plans — — 75,103 Provision for income taxes $ 203,102 $ 443,687 $ 266,356 U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law, which significantly changes existing U.S. tax law and includes many provisions applicable to us, such as reducing the U.S. federal statutory tax rate, imposing a one-time transition tax on deemed repatriation of deferred foreign income, and adopting a territorial tax system. The Tax Act reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. For fiscal 2018, our blended U.S. federal statutory tax rate is 22.2% . This is the result of using the tax rate of 35% for the first month of fiscal 2018 and the reduced tax rate of 21% for the remaining eleven months of fiscal 2018. The Tax Act also required us to incur a one-time transition tax on deferred foreign income not previously subject to U.S. income tax at a rate of 15.5% for foreign cash and certain other net current assets, and 8% on the remaining income, in each case reduced by certain foreign tax credits. The Tax Act also includes a provision to tax global intangible low-taxed income of foreign subsidiaries, a special tax deduction for foreign-derived intangible income, and a base erosion anti-abuse tax measure that may tax certain payments between a U.S. corporation and its subsidiaries. These additional provisions of the Tax Act will be effective for us beginning December 1, 2018. During fiscal 2018, we recorded tax charges for the impact of the Tax Act effects using the current available information and technical guidance on the interpretations of the Tax Act. As permitted by SEC Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we recorded provisional estimates and have subsequently finalized our accounting analysis based on the guidance, interpretations, and data available as of November 30, 2018. Adjustments made in the fourth quarter of fiscal 2018 upon finalization of our accounting analysis were not material to our Consolidated Financial Statements. As a result of the reduction in the federal corporate tax rate, we remeasured our deferred taxes and recorded a tax charge of $10 million based on the tax rate that is expected to apply when such deferred taxes are settled or realized in future periods. To calculate the remeasurement of deferred taxes, we estimated when the existing deferred taxes will be settled or realized. As part of the adoption of a new territorial tax system we recorded a transition tax expense of $176 million on deferred foreign earnings, long-term income taxes payable of $504 million , other tax liabilities of $19 million , and a reduction in our deferred tax liabilities of $347 million . We intend to elect to pay the federal transition tax over a period of eight years as permitted by the Tax Act. As a result, we reclassified $40 million from long-term income taxes payable to short-term income taxes payable for the first installment payment due in fiscal 2019. Certain international provisions introduced in the Tax Act will be effective for us in fiscal 2019. As part of these provisions, an accounting policy election is available to either account for the tax effects of certain taxes in the period that is subject to such taxes or to provide deferred taxes for book and tax basis differences that upon reversal may be subject to such taxes. We elect to account for the tax effects of these provisions in the period that it is subject to such tax. Accordingly, we have not recorded any tax with respect to these provisions during fiscal 2018. Reconciliation of Provision for Income Taxes Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 22.2% in 2018 and 35% in both 2017 and 2016 by income before income taxes) as a result of the following (in thousands): 2018 2017 2016 Computed “expected” tax expense $ 620,240 $ 748,174 $ 502,298 State tax expense, net of federal benefit 25,214 25,131 10,636 Tax credits (110,849 ) (38,000 ) (48,383 ) Differences between statutory rate and foreign effective tax rate (384,393 ) (215,490 ) (133,778 ) Stock-based compensation, net of tax deduction (95,372 ) (42,512 ) 15,101 Resolution of income tax examinations (42,432 ) (31,358 ) (68,003 ) Domestic manufacturing deduction benefit (13,098 ) (32,200 ) (26,990 ) Impacts of the U.S. Tax Act 185,997 — — Tax charge for licensing acquired company technology to foreign subsidiaries — 24,771 5,346 Other 17,795 5,171 10,129 Provision for income taxes $ 203,102 $ 443,687 $ 266,356 Deferred Tax Assets and Liabilities The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of November 30, 2018 and December 1, 2017 are presented below (in thousands): 2018 2017 Deferred tax assets: Acquired technology $ 9,561 $ 4,846 Reserves and accruals 59,100 48,761 Deferred revenue 37,690 23,452 Stock-based compensation 89,240 74,942 Net operating loss carryforwards of acquired companies 209,445 44,465 Credit carryforwards 173,748 124,205 Capitalized expenses 19,074 13,428 Benefits relating to tax positions 51,965 33,318 Other 37,160 30,300 Total gross deferred tax assets 686,983 397,717 Deferred tax asset valuation allowance (174,496 ) (93,568 ) Total deferred tax assets 512,487 304,149 Deferred tax liabilities: Depreciation and amortization 40,425 84,064 Undistributed earnings of foreign subsidiaries 17,556 382,744 Acquired intangible assets 501,208 117,282 Total deferred tax liabilities 559,189 584,090 Net deferred tax liabilities: $ 46,702 $ 279,941 Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Included in the deferred tax assets and liabilities for fiscal 2018 and 2017 are amounts related to various acquisitions. In assessing the realizability of deferred tax assets, management determined that it is not more likely than not that we will have sufficient taxable income in certain states and foreign jurisdictions to fully utilize available tax credits and other attributes. The deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized. We provide U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered permanently reinvested outside the United States or are exempted from taxation as a result of the new territorial tax system. To the extent that the foreign earnings previously treated as permanently reinvested are repatriated, the related U.S. tax liability may be reduced by any foreign income taxes paid on these earnings. As of November 30, 2018 , the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $275 million . The unrecognized deferred tax liability for these earnings is approximately $57.8 million . As of November 30, 2018 , we have net operating loss carryforwards of approximately $881.1 million for federal and $349.7 million for state. We also have federal, state and foreign tax credit carryforwards of approximately $8.8 million , $189.9 million and $14.9 million , respectively. The net operating loss carryforward assets and tax credits will expire in various years from fiscal 2019 through 2036 . The state tax credit carryforwards and a portion of the federal net operating loss carryforwards can be carried forward indefinitely. The net operating loss carryforward assets and certain credits are reduced by the valuation allowance and are subject to an annual limitation under Internal Revenue Code Section 382, the carrying amount of which are expected to be fully realized. As of November 30, 2018 , a valuation allowance of $174.5 million has been established for certain deferred tax assets related to certain state and foreign assets. For fiscal 2018 , the total change in the valuation allowance was $80.9 million . Accounting for Uncertainty in Income Taxes During fiscal 2018 and 2017 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 2018 2017 Beginning balance $ 172,945 $ 178,413 Gross increases in unrecognized tax benefits – prior year tax positions 16,191 3,680 Gross decreases in unrecognized tax benefits – prior year tax positions (4,000 ) (30,166 ) Gross increases in unrecognized tax benefits – current year tax positions 60,721 24,927 Settlements with taxing authorities — (3,876 ) Lapse of statute of limitations (45,922 ) (8,819 ) Foreign exchange gains and losses (3,783 ) 8,786 Ending balance $ 196,152 $ 172,945 The combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $24.6 million and $23.6 million for fiscal 2018 and 2017, respectively. These amounts were included in long-term income taxes payable in their respective years. We file income tax returns in the United States on a federal basis and in many U.S. state and foreign jurisdictions. We are subject to the continual examination of our income tax returns by the IRS and other domestic and foreign tax authorities. Our major tax jurisdictions are Ireland, California and the United States. For Ireland, California and the United States, the earliest fiscal years open for examination are 2008 , 2014 and 2015 , respectively. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from these examinations. We believe such estimates to be reasonable; however, there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position. The timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process. These events could cause large fluctuations in the balance of short-term and long-term assets, liabilities and income taxes payable. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire, or both. Given the uncertainties described above, we can only determine a range of estimated potential effect in underlying unrecognized tax benefits ranging from $0 to approximately $45 million . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Nov. 30, 2018 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Retirement Savings Plan In 1987, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which is a retirement savings plan covering substantially all of our U.S. employees, now referred to as the Adobe 401(k) Retirement Savings Plan. Under the plan, eligible employees may contribute up to 65% of their pretax or after-tax salary, subject to the Internal Revenue Service annual contribution limits. In fiscal 2018 , we matched 50% of the first 6% of the employee’s eligible compensation. We contributed $41.0 million , $34.3 million and $33.4 million in fiscal 2018 , 2017 and 2016 , respectively. We are under no obligation to continue matching future employee contributions and, at our discretion, may change our practices at any time. Deferred Compensation Plan On September 21, 2006, the Board of Directors approved the Adobe Inc. Deferred Compensation Plan, effective December 2, 2006 (the “Deferred Compensation Plan”). The Deferred Compensation Plan is an unfunded, non-qualified, deferred compensation arrangement under which certain executives and members of the Board of Directors are able to defer a portion of their annual compensation. Participants may elect to contribute up to 75% of their base salary and 100% of other specified compensation, including commissions, bonuses, performance-based and time-based restricted stock units, and directors’ fees. Participants are able to elect the payment of benefits to begin on a specified date at least three years after the end of the plan year in which election is made or vests. For cash benefit elections, distributions are made in cash and in the form of a lump sum, or five, ten, or fifteen-year annual installments. For stock benefit elections, distributions are settled in stock and in the form of a lump sum payment only. As of November 30, 2018 and December 1, 2017 , the invested amounts under the Deferred Compensation Plan total $69.0 million and $56.7 million , respectively and were recorded as other assets on our Consolidated Balance Sheets. As of November 30, 2018 and December 1, 2017 , $84.0 million and $67.2 million , respectively, was recorded as long-term liabilities to recognize undistributed deferred compensation due to employees. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Our stock-based compensation programs are long-term retention programs that are intended to attract, retain and provide incentives for employees, officers and directors, and to align stockholder and employee interests. We have the following stock-based compensation plans and programs: Restricted Stock Units We grant restricted stock units to eligible employees under our 2003 Equity Incentive Plan, as amended ( “ 2003 Plan ” ). Restricted stock units granted as part of our annual review process or for promotions vest annually over three years. Restricted stock units granted to new hires generally vest over four years. Certain grants have other vesting periods approved by our Board of Directors or an authorized committee. We grant performance awards to officers and key employees under our 2003 Plan which cliff-vest after three years. As of November 30, 2018 , we had reserved 124.5 million shares of common stock for issuance under our 2003 Plan and had 54.1 million shares available for grant. Employee Stock Purchase Plan Our 1997 Employee Stock Purchase Plan (“ESPP”) allows eligible employee participants to purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of a twenty-four-month offering period with four six-month purchase periods in each offering period. Employees purchase shares in each purchase period at 85% of the market value of our common stock at either the beginning of the offering period or the end of the purchase period, whichever price is lower. The ESPP will continue until the earlier of (i) termination by the Board or (ii) the date on which all of the shares available for issuance under the plan have been issued. As of November 30, 2018 , we had reserved 93.0 million shares of our common stock for issuance under the ESPP and approximately 5.3 million shares remain available for future issuance. Stock Options The 2003 Plan allows us to grant options to all employees, including executive officers, outside consultants and non-employee directors. This plan will continue until the earlier of (i) termination by the Board or (ii) the date on which all of the shares available for issuance under the plan have been issued and restrictions on issued shares have lapsed. Option vesting periods used in the past were generally four years and expire seven years from the effective date of grant. We eliminated the use of stock option grants for all employees and non-employee directors but may choose to issue stock options in the future. Performance Share Programs Our 2018 , 2017 and 2016 Performance Share Programs aim to help focus key employees on building stockholder value, provide significant award potential for achieving outstanding Company performance and enhance the ability of the Company to attract and retain highly talented and competent individuals. The Executive Compensation Committee of our Board of Directors approves the terms of each of our Performance Share Programs, including the award calculation methodology, under the terms of our 2003 Plan. Shares may be earned based on the achievement of an objective relative total stockholder return measured over a three-year performance period. Performance share awards will be awarded and fully vest upon the later of the Executive Compensation Committee's certification of the level of achievement or the three-year anniversary of each grant. Program participants generally have the ability to receive up to 200% of the target number of shares originally granted. On January 24, 2018, the Executive Compensation Committee approved the 2018 Performance Share Program, the terms of which are similar to prior year performance share programs as discussed above. As of November 30, 2018 , the shares awarded under our 2018 , 2017 and 2016 Performance Share Programs are yet to be achieved. Issuance of Shares Upon exercise of stock options, vesting of restricted stock units and performance shares, and purchases of shares under the ESPP, we will issue treasury stock. If treasury stock is not available, common stock will be issued. In order to minimize the impact of on-going dilution from exercises of stock options and vesting of restricted stock units and performance shares, we instituted a stock repurchase program. See Note 12 for information regarding our stock repurchase programs. Valuation of Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award. Our performance share awards are valued using a Monte Carlo Simulation model. The fair value of the awards are fixed at grant date and amortized over the longer of the remaining performance or service period. We use the Black-Scholes option pricing model to determine the fair value of ESPP shares. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include our expected stock price volatility over the expected term of the awards, actual and projected employee stock option exercise behaviors, a risk-free interest rate and any expected dividends. The expected term of ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights were as follows: 2018 2017 2016 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 26% - 29% 22% - 27% 26 - 29% Risk free interest rate 1.54% - 2.52% 0.62% - 1.41% 0.37 - 1.06% Summary of Restricted Stock Units Restricted stock unit activity for fiscal 2018 , 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Beginning outstanding balance 9,304 8,316 10,069 Awarded 4,012 5,018 4,440 Released (3,988 ) (3,859 ) (5,471 ) Forfeited (660 ) (766 ) (722 ) Increase due to acquisition — 595 — Ending outstanding balance 8,668 9,304 8,316 The weighted average grant date fair values of restricted stock units granted during fiscal 2018 , 2017 and 2016 were $208.73 , $120.33 and $89.87 , respectively. The total fair value of restricted stock units vested during fiscal 2018 , 2017 and 2016 was $837.3 million , $472.0 million and $499.8 million , respectively. Information regarding restricted stock units outstanding at November 30, 2018 , December 1, 2017 and December 2, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2018 Restricted stock units outstanding 8,668 1.06 $ 2,174.7 Restricted stock units vested and expected to vest 8,049 1.01 $ 2,019.5 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units vested and expected to vest 8,608 1.05 $ 1,545.3 2016 Restricted stock units outstanding 8,316 1.11 $ 829.4 Restricted stock units vested and expected to vest 7,613 1.04 $ 759.3 _________________________________________ (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of November 30, 2018 , December 1, 2017 and December 2, 2016 were $250.89 , $179.52 and $99.73 , respectively. Summary of Performance Shares In the first quarter of fiscal 2018 , the Executive Compensation Committee certified the actual performance achievement of participants in the 2015 Performance Share Program. Actual performance resulted in participants achieving 200% of target or approximately 0.5 million additional shares. The shares granted and achieved under the 2015 Performance Share Program fully vested on the three-year anniversary of the grant on January 24, 2018, if not forfeited. In the first quarter of fiscal 2017 , the Executive Compensation Committee certified the actual performance achievement of participants in the 2014 Performance Share Program. Actual performance resulted in participants achieving 198% of target or approximately 0.6 million additional shares. The shares granted and achieved under the 2014 Performance Share Program fully vested on the three-year anniversary of the grant on January 24, 2017, if not forfeited. In the first quarter of fiscal 2016 , the Executive Compensation Committee certified the actual performance achievement of participants in the 2013 Performance Share Program. Actual performance resulted in participants achieving 198% of target or approximately 0.7 million additional shares. The shares granted and achieved under the 2013 Performance Share Program fully vested on the three-year anniversary of the grant on January 24, 2016, if not forfeited. Performance share activity for fiscal 2018 , 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Shares Granted Maximum Shares Eligible to Receive Shares Granted Maximum Shares Eligible to Receive Shares Maximum Beginning outstanding balance 1,534 3,068 1,630 3,261 1,940 3,881 Awarded 837 (1) 628 1,082 (2) 1,040 1,206 (3) 1,053 Achieved (1,050 ) (4) (1,053 ) (1,135 ) (5) (1,147 ) (1,373 ) (5) (1,387 ) Forfeited (173 ) (347 ) (43 ) (86 ) (143 ) (286 ) Ending outstanding balance 1,148 2,296 1,534 3,068 1,630 3,261 _________________________________________ (1) Included in the 0.8 million shares awarded during fiscal 2018 were 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share program. The remaining awarded shares were for the 2018 Performance Share Program. (2) Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. (3) Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. (4) Shares achieved under our 2015, Performance Share program which resulted from 200% achievement of target. (5) Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs. The total fair value of performance awards vested during fiscal 2018 , 2017 and 2016 was $208.2 million , $127.4 million and $123.1 million , respectively. Summary of Employee Stock Purchase Plan Shares The weighted average subscription date fair value of shares under the ESPP during fiscal 2018 , 2017 and 2016 were $53.12 , $29.86 and $24.84 , respectively. Employees purchased 1.8 million shares at an average price of $104.94 , 1.9 million shares at an average price of $77.63 , and 1.9 million shares at an average price of $66.13 , respectively, for fiscal 2018 , 2017 and 2016 . The intrinsic value of shares purchased during fiscal 2018 , 2017 and 2016 was $198.9 million , $97.7 million and $54.3 million , respectively. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares. Summary of Stock Options As of November 30, 2018 and December 1, 2017 , we had 0.3 million stock options outstanding. Grants to Executive Officers All equity awards granted to executive officers are made after a review by and with the approval of the Executive Compensation Committee of the Board of Directors. Grants to Non-Employee Directors Although the 2003 Plan provides for the granting of non-qualified stock options and restricted stock units to non-employee directors, restricted stock units are the primary form of our grants to non-employee directors. The initial equity grant to a new non-employee director is a restricted stock unit award having an aggregate value of $0.3 million based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting. The actual target grant value will be prorated based on the number of days remaining before the next annual meeting or the date of the first anniversary of our last annual meeting if the next annual meeting is not yet scheduled. Annual equity grants to non-employee directors in the form of restricted stock units shall have an aggregate value of $0.3 million as based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting. Restricted stock units granted to directors for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Restricted stock units granted to existing directors 11 18 25 Restricted stock units granted to new directors 1 — — Compensation Costs We recognize the estimated compensation cost of restricted stock units, net of estimated forfeitures, on a straight-line basis over the requisite service period of the entire award, which is generally the vesting period. The estimated compensation cost is based on the fair value of our common stock on the date of grant. We recognize the estimated compensation cost of performance shares, net of estimated forfeitures, on a straight-line basis over the requisite service period of the entire award. Our performance share awards are earned upon achievement of an objective total stockholder return measure at the end of the three-year performance period, as described above. We estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate forfeitures and record stock-based compensation expense only for those awards that are expected to vest. As of November 30, 2018 , there was $978.2 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards which will be recognized over a weighted average period of 1.7 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. Total stock-based compensation costs that have been included in our Consolidated Statements of Income for fiscal 2018 , 2017 and 2016 were as follows (in thousands): Income Statement Classifications Cost of Revenue– Subscription Cost of Revenue– Services and Support Research and Development Sales and Marketing General and Administrative Total (1) Stock Purchase Rights and Option Grants 2018 $ 4,102 $ 8,286 $ 23,918 $ 27,252 $ 7,290 $ 70,848 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 2016 $ 1,474 $ 5,514 $ 13,932 $ 16,534 $ 4,371 $ 41,825 Restricted Stock Units and Performance Share Awards 2018 $ 17,515 $ 12,111 $ 253,078 $ 178,548 $ 77,462 $ 538,714 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 2016 $ 6,632 $ 7,522 $ 109,249 $ 113,757 $ 70,312 $ 307,472 _________________________________________ (1) During fiscal 2018 , 2017 and 2016 , we recorded tax benefits of $222.4 million , $153.2 million and $71.7 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) and activity, net of related taxes, for fiscal 2018 were as follows (in thousands): December 1, Increase / Decrease Reclassification Adjustments November 30, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 2,704 $ (2,005 ) $ (655 ) $ 44 Unrealized losses on available-for-sale securities (14,220 ) (22,459 ) 11,305 (25,374 ) Total net unrealized gains / losses on available-for-sale securities (11,516 ) (24,464 ) 10,650 (1 ) (25,330 ) Net unrealized gains / losses on derivative instruments designated as hedging instruments (3,367 ) 74,080 (48,981 ) (2 ) 21,732 Cumulative foreign currency translation adjustments (96,938 ) (47,594 ) — (144,532 ) Total accumulated other comprehensive income (loss), net of taxes $ (111,821 ) $ 2,022 $ (38,331 ) $ (148,130 ) _________________________________________ (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2018 , 2017 and 2016 (in thousands): 2018 2017 2016 Available-for-sale securities: Unrealized gains / losses $ — $ 663 $ (299 ) Reclassification adjustments — (491 ) 108 Subtotal available-for-sale securities — 172 (191 ) Derivatives designated as hedging instruments: Reclassification adjustments (1,946 ) (732 ) (552 ) Subtotal derivatives designated as hedging instruments (1,946 ) (732 ) (552 ) Foreign currency translation adjustments (1,742 ) 3,005 24 Total taxes, other comprehensive income (loss) $ (3,688 ) $ 2,445 $ (719 ) Stock Repurchase Program To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from stock issuances, we may repurchase shares in the open market or enter into structured repurchase agreements with third parties. In January 2017, our Board of Directors approved a stock repurchase program granting us authority to repurchase up to $2.5 billion in common stock through the end of fiscal 2019. In May 2018, our Board of Directors granted us another authority to repurchase up to $8.0 billion in common stock through the end of fiscal 2021. The new stock repurchase program approved by our Board of Directors is similar to our previous stock repurchase programs. During fiscal 2018 , 2017 and 2016 , we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $2.05 billion , $1.10 billion , and $1.08 billion , respectively. We enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the Volume Weighted Average Price (“VWAP”) of our common stock over a specified period of time. We only enter into such transactions when the discount that we receive is higher than our estimate of the expected foregone return on our cash prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us. The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount. During fiscal 2018 , we repurchased approximately 8.7 million shares at an average price per share of $230.43 through structured repurchase agreements entered into during fiscal 2018 and fiscal 2017 . During fiscal 2017 , we repurchased approximately 8.2 million shares at an average price per share of $134.20 through structured repurchase agreements entered into during fiscal 2017 and fiscal 2016 . During fiscal 2016 , we repurchased approximately 10.4 million shares at an average price per share of $97.16 through structured repurchase agreements entered into during fiscal 2016 and fiscal 2015 . For fiscal 2018 , 2017 and 2016 , the prepayments were classified as treasury stock on our Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by November 30, 2018 , December 1, 2017 and December 2, 2016 were excluded from the computation of earnings per share. As of November 30, 2018 , $150.0 million of prepayments from our May 2018 authority remained under the agreement. Subsequent to November 30, 2018 , as part of the 2018 stock repurchase authority, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $500 million . This amount will be classified as treasury stock on our Consolidated Balance Sheets. Upon completion of the $500 million stock repurchase agreement, $7.35 billion remains under our May 2018 authority. As of November 30, 2018, there is no remaining balance under our January 2017 authority. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock units and performance awards. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested restricted stock units, performance share awards, and stock options using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share for fiscal 2018 , 2017 and 2016 (in thousands, except per share data): 2018 2017 2016 Net income $ 2,590,774 $ 1,693,954 $ 1,168,782 Shares used to compute basic net income per share 490,564 493,632 498,345 Dilutive potential common shares: Unvested restricted stock units and performance share awards 7,142 7,161 5,455 Stock options 137 330 499 Shares used to compute diluted net income per share 497,843 501,123 504,299 Basic net income per share $ 5.28 $ 3.43 $ 2.35 Diluted net income per share $ 5.20 $ 3.38 $ 2.32 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments We lease certain of our facilities and some of our equipment under non-cancellable operating lease arrangements that expire at various dates through 2031 . We also have one land lease that expires in 2091 . Rent expense includes base contractual rent and variable costs such as building expenses, utilities, taxes, insurance and equipment rental. Rent expense for these leases was approximately $137.2 million in fiscal 2018 , $115.4 million in fiscal 2017 , and $92.9 million in fiscal 2016 . Our sublease income was immaterial for all periods presented. We occupy three office buildings in San Jose, California where our corporate headquarters are located. We reference these office buildings as the Almaden, East and West Towers. In March 2017, we exercised our option to purchase the Almaden Tower for a total purchase price of $103.6 million . Upon purchase, our investment in the lease receivable of $80.4 million was credited against the total purchase price. We capitalized the Almaden Tower as property and equipment on our Consolidated Balance Sheets at $104.2 million , the lesser of cost or fair value, which represented the total purchase price plus other direct costs associated with the purchase. As of November 30, 2018 , we own the buildings and the underlying land that make up our corporate headquarters in San Jose, California, including the Almaden Tower. Unconditional Purchase Obligations Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. The following table summarizes our non-cancellable unconditional purchase obligations and operating leases for each of the next five years and thereafter as of November 30, 2018 (in thousands): Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2019 $ 346,334 $ 88,554 $ 9,173 2020 172,883 93,509 8,981 2021 162,421 80,408 8,837 2022 20,866 71,425 6,451 2023 27,352 56,490 2,325 Thereafter 3,977 311,937 — Total $ 733,833 $ 702,323 $ 35,767 Royalties We have royalty commitments associated with the licensing of certain offerings and products. Royalty expense is generally based on a dollar amount per unit or a percentage of the underlying revenue. Royalty expense, which was recorded under our cost of revenue on our Consolidated Statements of Income, was approximately $119.1 million , $100.9 million and $79.8 million in fiscal 2018 , 2017 and 2016 , respectively. Indemnifications In the ordinary course of business, we provide indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of our products and from time to time, we are subject to claims by our customers under these indemnification provisions. Historically, costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations. To the extent permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid. We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. Legal Proceedings In connection with disputes relating to the validity or alleged infringement of third-party intellectual property rights, including patent rights, we have been, are currently and may in the future be subject to claims, negotiations or complex, protracted litigation. Intellectual property disputes and litigation may be very costly and can be disruptive to our business operations by diverting the attention and energies of management and key technical personnel. Although we have successfully defended or resolved past litigation and disputes, we may not prevail in any ongoing or future litigation and disputes. Third-party intellectual property disputes could subject us to significant liabilities, require us to enter into royalty and licensing arrangements on unfavorable terms, prevent us from licensing certain of our products or offering certain of our services, subject us to injunctions restricting our sale of products or services, cause severe disruptions to our operations or the markets in which we compete, or require us to satisfy indemnification commitments with our customers including contractual provisions under various license arrangements and service agreements. In addition to intellectual property disputes, we are subject to legal proceedings, claims and investigations in the ordinary course of business, including claims relating to commercial, employment and other matters. Some of these disputes and legal proceedings may include speculative claims for substantial or indeterminate amounts of damages. We consider all claims on a quarterly basis in accordance with GAAP and based on known facts assess whether potential losses are considered reasonably possible, probable and estimable. Based upon this assessment, we then evaluate disclosure requirements and whether to accrue for such claims in our financial statements. This determination is then reviewed and discussed with our Audit Committee and our independent registered public accounting firm. We make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Unless otherwise specifically disclosed in this note, we have determined that no provision for liability nor disclosure is required related to any claim against us because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. All legal costs associated with litigation are expensed as incurred. Litigation is inherently unpredictable. However, we believe that we have valid defenses with respect to the legal matters pending against us. It is possible, nevertheless, that our consolidated financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution of one or more of such proceedings, claims or investigations. In connection with our anti-piracy efforts, conducted both internally and through organizations such as the Business Software Alliance, from time to time we undertake litigation against alleged copyright infringers. Such lawsuits may lead to counter-claims alleging improper use of litigation or violation of other laws. We believe we have valid defenses with respect to such counter-claims; however, it is possible that our consolidated financial position, cash flows or results of operations could be negatively affected in any particular period by the resolution of one or more of these counter-claims. |
Debt
Debt | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our long-term debt as of November 30, 2018 and December 1, 2017 consisted of the following (in thousands): 2018 2017 Term loan $ 2,248,427 $ — Notes 1,886,117 1,882,479 Fair value of interest rate swap (9,744 ) (1,058 ) Adjusted carrying value of long-term debt $ 4,124,800 $ 1,881,421 Term Loan Credit Agreement In October 2018, we entered into a credit agreement providing for an up to $2.25 billion senior unsecured term loan for the purpose of partially funding the purchase price for our acquisition of Marketo and the related fees and expenses incurred in connection with the acquisition. The Term Loan funds were received on October 31, 2018 upon closing of the acquisition and will mature 18 months following the initial funding date. In addition, we incurred issuance costs of $0.7 million which are amortized to interest expense over the term using the straight-line method. The Term Loan ranks equally with our other unsecured and unsubordinated indebtedness. There are no scheduled principal amortization payments prior to maturity and the term loan may be prepaid and terminated at our election at any time without penalty or premium. At our election, the Term Loan will bear interest at either (i) LIBOR plus a margin, based on our debt ratings, ranging from 0.500% to 1.000% or (ii) a base rate plus a margin, based on our debt ratings, ranging from 0.040% to 0.110% . Interest is payable periodically, in arrears, at the end of each interest period we elect. The Term Loan credit agreement contains customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions in favor of the lenders similar to those contained in the Revolving Credit Agreement, including the financial covenant. As of November 30, 2018 , we were in compliance with all covenants. As of November 30, 2018 , there were $2.25 billion outstanding borrowings under the Term Loan, which is included in long-term liabilities on our Consolidated Balance Sheets. In November 2018, we made interest payments of approximately $5.7 million . Senior Notes In February 2010, we issued $900 million of 4.75% senior notes due February 1, 2020 . Our proceeds were $900 million and were net of an issuance discount of $5.5 million . In addition, we incurred issuance costs of $6.4 million . Both the discount and issuance costs are being amortized to interest expense over the term of the 2020 Notes using the effective interest method. The 2020 Notes rank equally with our other unsecured and unsubordinated indebtedness. The effective interest rate including the discount and issuance costs was 4.92% . Interest is payable semi-annually, in arrears, on February 1 and August 1, and commenced on August 1, 2010 . In June 2014, we entered into interest rate swaps with a total notional amount of $900 million designated as a fair value hedge related to our 2020 Notes. The interest rate swaps effectively convert the fixed interest rate on our 2020 Notes to a floating interest rate based on LIBOR. Under the terms of the swap, we will pay monthly interest at the one-month LIBOR interest rate plus a fixed number of basis points on the $900 million notional amount. In exchange, we will receive 4.75% fixed rate interest from the swap counterparties. See Note 5 for further details regarding our interest rate swap derivatives. In January 2015, we issued $1 billion of 3.25% senior notes due February 1, 2025 (the “2025 Notes”). Our proceeds were approximately $989.3 million which is net of an issuance discount of $10.7 million . In addition, we incurred issuance costs of $7.9 million . Both the discount and issuance costs are being amortized to interest expense over the term of the 2025 Notes using the effective interest method. The 2025 Notes rank equally with our other unsecured and unsubordinated indebtedness. The effective interest rate including the discount, issuance costs and interest rate agreement is 3.67% . Interest is payable semi-annually, in arrears on February 1 and August 1, and commenced on August 1, 2015 . As of November 30, 2018 , our outstanding notes payable consist of the 2020 Notes and 2025 Notes (the “Notes”) with a total carrying value of $1.88 billion , which includes the fair value of the interest rate swaps and is net of debt issuance costs. Based on quoted prices in inactive markets, the fair value of the Notes was $1.89 billion as of November 30, 2018 , which excludes the effect of the fair value of the interest rate swaps described above. We may redeem the Notes at any time, subject to a make-whole premium. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The Notes also include covenants that limit our ability to grant liens on assets and to enter into sale and leaseback transactions, subject to significant allowances. As of November 30, 2018 , we were in compliance with all of the covenants. In February and August 2018 , we made semi-annual interest payments on our 2020 and 2025 Notes each totaling $37.6 million . Credit Agreement On October 17, 2018, we entered into a credit agreement (the “Revolving Credit Agreement”), providing for a five-year $1 billion senior unsecured revolving credit facility, which replaces our previous five-year $1 billion senior unsecured revolving credit agreement dated as of March 2, 2012 (as amended, the “Prior Revolving Credit Agreement”). In addition, we incurred issuance costs of $0.8 million which is amortized to interest expense over the term using the straight-line method. The Revolving Credit Agreement provides for loans to Adobe and certain of its subsidiaries that may be designated from time to time as additional borrowers. Pursuant to the terms of the Revolving Credit Agreement, we may, subject to the agreement of lenders to provide additional commitments, obtain up to an additional $500 million in commitments, for a maximum aggregate commitment of $1.5 billion . At our election, loans under the Revolving Credit Agreement will bear interest at either (i) LIBOR plus a margin, based on our debt ratings, ranging from 0.585% to 1.015% or (ii) a base rate, which is defined as the highest of (a) the agent’s prime rate, (b) the federal funds effective rate plus 0.500% or (c) LIBOR plus 1.00% plus a margin, based on our debt ratings, ranging from 0.000% to 0.015% . In addition, facility fees determined according to our debt ratings are payable on the aggregate commitments, regardless of usage, quarterly in an amount ranging from 0.040% to 0.110% per annum. We are permitted to permanently reduce the aggregate commitment under the Revolving Credit Agreement at any time. Subject to certain conditions stated in the Revolving Credit Agreement, Adobe and any of its subsidiaries designated as additional borrowers may borrow, prepay and re-borrow amounts at any time during the term of the Revolving Credit Agreement. In connection with and at the time that we entered into the Revolving Credit Agreement, the Prior Revolving Credit Agreement originally scheduled to expire on July 27, 2020 was terminated. There were no outstanding borrowings or letters of credit issued under the Prior Revolving Credit Agreement at the time of termination. There were no penalties paid as a result of the termination of the Prior Revolving Credit Agreement. The Revolving Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the lenders. The negative covenants include restrictions regarding the incurrence of liens and indebtedness, certain merger and acquisition transactions, dispositions and other matters, all subject to certain exceptions. The financial covenant, based on a quarterly financial test, requires us not to exceed a maximum leverage ratio. The facility will terminate and all amounts owing thereunder will be due and payable on the maturity date unless (a) the commitments are terminated earlier upon the occurrence of certain events, including an event of default, or (b) the maturity date is further extended upon our request, subject to the agreement of the lenders. As of November 30, 2018 , there were no outstanding borrowings under the Revolving Credit Agreement and we were in compliance with all covenants. |
Non-Operating Income (Expense)
Non-Operating Income (Expense) | 12 Months Ended |
Nov. 30, 2018 | |
Other Income and Expenses [Abstract] | |
NON-OPERATING INCOME (EXPENSE) | NON-OPERATING INCOME (EXPENSE) Non-operating income (expense) for fiscal 2018 , 2017 and 2016 included the following (in thousands): 2018 2017 2016 Interest and other income (expense), net: Interest income $ 92,540 $ 66,069 $ 47,340 Foreign exchange gains (losses) (42,612 ) (30,705 ) (35,716 ) Realized gains on fixed income investment 655 1,673 2,880 Realized losses on fixed income investment (11,305 ) (725 ) (985 ) Other 258 83 29 Interest and other income (expense), net $ 39,536 $ 36,395 $ 13,548 Interest expense $ (89,242 ) $ (74,402 ) $ (70,442 ) Investment gains (losses), net: Realized investment gains $ 6,128 $ 3,279 $ 4,964 Unrealized investment gains — 4,274 186 Realized investment losses — — (6,720 ) Unrealized investment losses (2,915 ) — — Investment gains (losses), net $ 3,213 $ 7,553 $ (1,570 ) Non-operating income (expense), net $ (46,493 ) $ (30,454 ) $ (58,464 ) |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS | INDUSTRY SEGMENT, GEOGRAPHIC INFORMATION AND SIGNIFICANT CUSTOMERS We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. Our business is organized into three reportable segments: Digital Media, Digital Experience (formerly Digital Marketing), and Publishing (formerly Print and Publishing). These segments provide our senior management with a comprehensive financial view of our key businesses. Our segments are aligned around our two strategic growth opportunities described above, placing our Publishing business in a third segment that contains some of our mature products and solutions. For fiscal 2018 , we have the following reportable segments: • Digital Media— Our Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional content creators, web application developers and digital media professionals, as well as their management in marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate and distribute documents. • Digital Experience— Our Digital Experience segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers, chief information officers and chief revenue officers. This segment also includes our marketing cloud platform offerings and commerce platform offerings from the Magento and Marketo acquisitions in the third and fourth quarter of fiscal 2018, respectively. • Publishing— Our Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and OEM printing businesses. It also includes our web conferencing and document and forms platforms effective fiscal 2018. In fiscal 2018, we moved our legacy enterprise offerings—Adobe Connect web conferencing platform and Adobe LiveCycle, an enterprise document and forms platform—from our Digital Experience segment into Publishing, in order to more closely align our Digital Experience business with the strategic growth opportunity. Prior year information in the tables below have been reclassified to reflect this change. Our segment results for fiscal 2018 , 2017 and 2016 were as follows (dollars in thousands): Digital Media Digital Experience Publishing Total Fiscal 2018 Revenue $ 6,325,315 $ 2,443,745 $ 260,948 $ 9,030,008 Cost of revenue 249,386 922,414 23,199 1,194,999 Gross profit $ 6,075,929 $ 1,521,331 $ 237,749 $ 7,835,009 Gross profit as a percentage of revenue 96 % 62 % 91 % 87 % Fiscal 2017 Revenue $ 5,010,579 $ 2,030,324 $ 260,602 $ 7,301,505 Cost of revenue 239,994 747,005 23,492 1,010,491 Gross profit $ 4,770,585 $ 1,283,319 $ 237,110 $ 6,291,014 Gross profit as a percentage of revenue 95 % 63 % 91 % 86 % Fiscal 2016 Revenue $ 3,941,011 $ 1,631,426 $ 281,993 $ 5,854,430 Cost of revenue 231,074 559,938 28,896 819,908 Gross profit $ 3,709,937 $ 1,071,488 $ 253,097 $ 5,034,522 Gross profit as a percentage of revenue 94 % 66 % 90 % 86 % The tables below list our revenue and property and equipment, net, by geographic area for fiscal 2018 , 2017 and 2016 (in thousands). With the exception of property and equipment, we do not identify or allocate our assets (including long-lived assets) by geographic area. Revenue 2018 2017 2016 Americas: United States $ 4,632,469 $ 3,830,845 $ 3,087,764 Other 484,296 385,686 312,371 Total Americas 5,116,765 4,216,531 3,400,135 EMEA 2,550,062 1,985,105 1,619,153 APAC: Japan 609,361 524,254 401,205 Other 753,820 575,615 433,937 Total APAC 1,363,181 1,099,869 835,142 Revenue $ 9,030,008 $ 7,301,505 $ 5,854,430 Property and Equipment 2018 2017 2016 Americas: United States $ 882,145 $ 753,393 $ 642,823 Other 30,475 2,797 559 Total Americas 912,620 756,190 643,382 EMEA 51,033 54,181 48,662 APAC: India 93,259 109,051 106,322 Other 18,160 17,554 17,898 Total APAC 111,419 126,605 124,220 Property and equipment, net $ 1,075,072 $ 936,976 $ 816,264 Significant Customers For fiscal 2018 , 2017 and 2016 there were no customers that represented at least 10% of net revenue. As of fiscal year end 2018 and 2017 , no single customer was responsible for over 10% of our trade receivables. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA | SELECTED QUARTERLY FINANCIAL DATA (unaudited) 2018 (in thousands, except per share data) Quarter Ended March 2 June 1 August 31 November 30 Revenue $ 2,078,947 $ 2,195,360 $ 2,291,076 $ 2,464,625 Gross profit $ 1,820,045 $ 1,914,016 $ 1,995,584 $ 2,105,364 Income before income taxes $ 702,502 $ 690,799 $ 701,358 $ 699,217 Net income $ 583,076 $ 663,167 $ 666,291 $ 678,240 Basic net income per share $ 1.18 $ 1.35 $ 1.36 $ 1.39 Diluted net income per share $ 1.17 $ 1.33 $ 1.34 $ 1.37 2017 (in thousands, except per share data) Quarter Ended March 3 June 2 September 1 December 1 Revenue $ 1,681,646 $ 1,772,190 $ 1,841,074 $ 2,006,595 Gross profit $ 1,444,309 $ 1,532,830 $ 1,578,152 $ 1,735,723 Income before income taxes $ 460,632 $ 492,618 $ 541,379 $ 643,012 Net income $ 398,446 $ 374,390 $ 419,569 $ 501,549 Basic net income per share $ 0.81 $ 0.76 $ 0.85 $ 1.02 Diluted net income per share $ 0.80 $ 0.75 $ 0.84 $ 1.00 Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Each of the fiscal quarters presented were comprised of 13 weeks. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition Our revenue is derived from subscription offerings, non-software related hosted services, term-based and perpetual licensing of software products, associated software maintenance and support plans, consulting services, training, and technical support. Most of our enterprise customer arrangements are complex, involving multiple solutions and various license rights, bundled with post-contract customer support and other meaningful rights that together provide a complete end-to-end solution to the customer. We recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, we have delivered the product or performed the service, the fee is fixed or determinable and collection is probable. Determining whether and when some of these criteria have been satisfied often involves assumptions and judgments that can have a significant impact on the timing and amount of revenue we report. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of software, upgrades, maintenance and support, hosted services, and consulting. For our software and software-related multiple element arrangements, we must: (1) determine whether and when each element has been delivered; (2) determine whether undelivered products or services are essential to the functionality of the delivered products and services; (3) determine the fair value of each undelivered element using vendor-specific objective evidence (“VSOE”); and (4) allocate the total price among the various elements. VSOE of fair value is used to allocate a portion of the price to the undelivered elements and the residual method is used to allocate the remaining portion to the delivered elements. Absent VSOE, revenue is deferred until the earlier of the point at which VSOE of fair value exists for any undelivered element or until all elements of the arrangement have been delivered. However, if the only undelivered element is maintenance and support, the entire arrangement fee is recognized ratably over the performance period. Changes in assumptions or judgments or changes to the elements in a software arrangement could cause a material increase or decrease in the amount of revenue that we report in a particular period. We determine VSOE for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial arrangement. In determining VSOE, we require that a substantial majority of the selling prices for a product or service fall within a reasonably narrow pricing range. We have established VSOE for our software maintenance and support services, custom software development services, consulting services and training, when such services are sold optionally with software licenses. For multiple-element arrangements containing our non-software services, we must: (1) determine whether and when each element has been delivered; (2) determine the fair value of each element using the selling price hierarchy of VSOE of selling price, third-party evidence (“TPE”) of selling price or best-estimated selling price (“BESP”), as applicable; and (3) allocate the total price among the various elements based on the relative selling price method. For multiple-element arrangements that contain both software and non-software elements, we allocate revenue to software or software-related elements as a group and any non-software elements separately based on the selling price hierarchy. We determine the selling price for each deliverable using VSOE of selling price, if it exists, or TPE of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use BESP. Once revenue is allocated to software or software-related elements as a group, we recognize revenue in conformance with software revenue accounting guidance. Revenue is recognized when revenue recognition criteria are met for each element. We are generally unable to establish VSOE or TPE for non-software elements and as such, we use BESP. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. We determine BESP for a product or service by considering multiple factors including, but not limited to major product groupings, geographies, market conditions, competitive landscape, internal costs, gross margin objectives and pricing practices. Pricing practices taken into consideration include historic contractually stated prices, volume discounts where applicable and our price lists. We must estimate certain royalty revenue amounts due to the timing of securing information from our customers. While we believe we can make reliable estimates regarding these matters, these estimates are inherently subjective. Accordingly, our assumptions and judgments regarding future products and services as well as our estimates of royalty revenue could differ from actual events, thus materially impacting our financial position and results of operations. Subscription and Services and Support Revenue We recognize revenue for hosted services that are priced based on a committed number of transactions, ratably beginning on the date the services associated with the committed transactions are first made available to the customer and continuing through the end of the contractual service term. Over-usage fees, and fees billed based on the actual number of transactions from which we capture data, are billed in accordance with contract terms as these fees are incurred. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenue, depending on whether all revenue recognition criteria have been met. Our services and support revenue is composed of consulting, training, and maintenance and support, primarily related to the licensing of our enterprise, mobile and device products and solutions. Our support revenue also includes technical support and developer support to partners and developer organizations related to our desktop products. Our consulting revenue is recognized using a time and materials basis and is measured monthly based on input measures, such as hours incurred to date, with consideration given to output measures, such as contract milestones when applicable. Our maintenance and support offerings, which entitle customers to receive product upgrades and enhancements on a when and if available basis or technical support, depending on the offering, are recognized ratably over the performance period of the arrangement. Our software subscription offerings, which may include product upgrades and enhancements on a when and if available basis, hosted services, and online storage, are generally offered to our customers over a specified period of time and we recognize revenue associated with these arrangements ratably over the subscription period. Product Revenue We recognize our product revenue upon shipment, provided all other revenue recognition criteria have been met. Our desktop application product revenue from distributors is subject to agreements allowing limited rights of return, rebates and price protection. Our direct sales and OEM sales are also subject to limited rights of return. Accordingly, we reduce revenue recognized for estimated future returns, price protection and rebates at the time the related revenue is recorded. The estimates for returns are adjusted periodically based upon historical rates of returns, inventory levels in the distribution channel and other related factors. We recognize OEM licensing revenue, primarily royalties, when OEMs ship products incorporating our software, provided collection of such revenue is deemed probable. For certain OEM customers, we must estimate royalty revenue due to the timing of securing customer information. This estimate is based on a combination of our generated forecasts and actual historical reporting by our OEM customers. To substantiate our ability to estimate revenue, we review license royalty revenue reports ultimately received from our significant OEM customers in comparison to the amounts estimated in the prior period. Our product-related deferred revenue includes maintenance upgrade revenue and customer advances under OEM license agreements. Our maintenance upgrade revenue for our desktop application products is included in our product revenue line item as the maintenance primarily entitles customers to receive product upgrades. In cases where we provide a specified free upgrade to an existing product, we defer the fair value for the specified upgrade right until the future obligation is fulfilled or when the right to the specified free upgrade expires. Rights of Return, Rebates and Price Protection As discussed above, we offer limited rights of return, rebates and price protection of our products under various policies and programs with our distributors, resellers and/or end-user customers. We estimate and record reserves for these programs as an offset to revenue and accounts receivable. Below is a summary of each of the general provisions in our contracts: • Distributors are allowed limited rights of return of products purchased during the previous quarter. In addition, distributors are allowed to return products that have reached the end of their lives, as defined by us, and products that are being replaced by new versions. • We offer rebates to our distributors, resellers and/or end user customers. The amount of revenue that is reduced for distributor and reseller rebates is based on actual performance against objectives set forth by us for a particular reporting period (volume, timely reporting, etc.). If mail-in or other promotional rebates are offered, the amount of revenue reduced is based on the dollar amount of the rebate, taking into consideration an estimated redemption rate calculated using historical trends. • From time to time, we may offer price protection to our distributors that allow for the right to a credit if we permanently reduce the price of a software product. The amount of revenue that is reduced for price protection is calculated as the difference between the old and new price of a software product on inventory held by the distributor immediately prior to the effective date of the decrease. Although our subscription contracts are generally non-cancellable, a limited number of customers have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. In the event a customer cancels its contract, they are not entitled to a refund for prior services we have provided to them. On a quarterly basis, the amount of revenue that is reserved for future returns is calculated based on our historical trends and data specific to each reporting period. We review the actual returns evidenced in prior quarters as a percent of revenue to determine a historical returns rate. We then apply the historical rate to the current period revenue as a basis for estimating future returns. When necessary, we also provide a specific returns reserve for product in the distribution channel in excess of estimated requirements. This estimate can be affected by the amount of a particular product in the channel, the rate of sell-through, product plans and other factors. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of billings and payments received in advance of revenue recognition for our products and solutions described above. We recognize deferred revenue as revenue only when the revenue recognition criteria are met. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts which reflects our best estimate of potentially uncollectible trade receivables. The allowance is based on both specific and general reserves. We regularly review our trade receivables allowances by considering such factors as historical experience, credit-worthiness, the age of the trade receivable balances and current economic conditions that may affect a customer’s ability to pay and we specifically reserve for those deemed uncollectible. |
Property and Equipment | Property and Equipment We record property and equipment at cost less accumulated depreciation and amortization. Property and equipment are depreciated using the straight-line method over their estimated useful lives ranging from 1 to 5 years for computers and equipment as well as server hardware under capital leases, 1 to 6 years for furniture and fixtures, 5 to 20 years for building improvements and up to 40 years for buildings. Leasehold improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or estimated useful lives ranging from 1 to 15 years. |
Goodwill, Purchased Intangibles and Other Long-Lived Assets | Goodwill, Purchased Intangibles and Other Long-Lived Assets Goodwill is assigned to one or more reporting segments on the date of acquisition. We review our goodwill for impairment annually during our second quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount. In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segment’s net assets and changes in our stock price. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed. If the qualitative assessment indicates that the quantitative analysis should be performed, we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill. To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We completed our annual goodwill impairment test in the second quarter of fiscal 2018 . We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts. Accordingly, there was no indication of impairment and the quantitative goodwill impairment test was not performed. We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year. We amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists. We continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets, including our intangible assets may not be recoverable. When such events or changes in circumstances occur, we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets. We did not recognize any intangible asset impairment charges in fiscal 2018 , 2017 or 2016 . During fiscal 2018 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years. Amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent. The weighted average useful lives of our intangible assets were as follows: Weighted Average Useful Life (years ) Purchased technology 6 Customer contracts and relationships 9 Trademarks 9 Acquired rights to use technology 10 Backlog 2 Other intangibles 4 |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. |
Taxes Collected from Customers | Taxes Collected from Customers We net taxes collected from customers against those remitted to government authorities in our financial statements. Accordingly, taxes collected from customers are not reported as revenue. |
Treasury Stock | Treasury Stock We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Consolidated Balance Sheets. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses for fiscal 2018 , 2017 and 2016 were $173.6 million , $141.7 million and $135.8 million , respectively. |
Foreign Currency Translation | Foreign Currency Translation We translate assets and liabilities of foreign subsidiaries, whose functional currency is their local currency, at exchange rates in effect at the balance sheet date. We translate revenue and expenses at the monthly average exchange rates. We include accumulated net translation adjustments in stockholders’ equity as a component of accumulated other comprehensive income (loss). |
Derivatives and Hedging Instruments | Foreign Currency and Other Hedging Instruments In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option and forward contracts to hedge a portion of our forecasted foreign currency denominated revenue primarily in Euros, British Pounds and Japanese Yen. We hedge our net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates. We recognize all derivative instruments as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Contracts that do not qualify for hedge accounting are adjusted to fair value through earnings. See Note 5 for information regarding our hedging activities. Gains and losses from foreign exchange forward contracts which hedge certain balance sheet positions are recorded each period as a component of interest and other income, net in our Consolidated Statements of Income. Foreign exchange option contracts hedging forecasted foreign currency revenue are designated as cash flow hedges with gains and losses recorded net of tax, as a component of other comprehensive income in stockholders’ equity and reclassified into revenue at the time the forecasted transactions occur. Hedge Accounting and Hedging Programs We recognize derivative instruments and hedging activities as either assets or liabilities in our Consolidated Balance Sheets and measure them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. We evaluate hedge effectiveness at the inception of the hedge prospectively as well as retrospectively, and record any ineffective portion of the hedging instruments in interest and other income (expense), net on our Consolidated Statements of Income. The net gain (loss) recognized in interest and other income (expense), net for cash flow hedges due to hedge ineffectiveness was insignificant for all fiscal years presented. The time value of purchased contracts is recorded in interest and other income (expense), net in our Consolidated Statements of Income. The bank counterparties to these contracts expose us to credit-related losses in the event of their nonperformance which are largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit-related losses with the same counterparty by permitting net settlement of transactions. Balance Sheet Hedging — Hedges of Foreign Currency Assets and Liabilities We also hedge our net recognized foreign currency denominated assets and liabilities with foreign exchange forward contracts to reduce the risk that the value of these assets and liabilities will be adversely affected by changes in exchange rates. These contracts hedge assets and liabilities that are denominated in foreign currencies and are carried at fair value with changes in the fair value recorded to interest and other income (expense), net in our Consolidated Statements of Income. These contracts do not subject us to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the assets and liabilities being hedged. As of November 30, 2018 , total notional amounts of outstanding contracts were $427.9 million which included the notional equivalent of $158.8 million in Euros, $51.5 million in British Pounds, $77.2 million in Japanese Yen, $50.7 million in Indian Rupees, and $89.7 million in other foreign currencies. As of December 1, 2017 , total notional amounts of outstanding contracts were $333.9 million which included the notional equivalent of $105.0 million in Euros, $34.6 million in British Pounds, $45.4 million in Japanese Yen, $78.0 million in Indian Rupees, and $70.9 million in other foreign currencies. At November 30, 2018 and December 1, 2017 , the outstanding balance sheet hedging derivatives had maturities of 180 days or less. Cash Flow Hedging—Hedges of Forecasted Foreign Currency Revenue In countries outside the United States, we transact business in U.S. Dollars and in various other currencies. We may use foreign exchange option contracts or forward contracts to hedge certain cash flow exposures resulting from changes in these foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities of up to twelve months . We enter into these foreign exchange contracts to hedge a portion of our forecasted foreign currency denominated revenue in the normal course of business and accordingly, they are not speculative in nature. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income (loss) in our Consolidated Balance Sheets, until the forecasted transaction occurs. When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to interest and other income (expense), net in our Consolidated Statements of Income at that time. If we do not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in interest and other income (expense), net in our Consolidated Statements of Income. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk are short-term fixed-income investments, structured repurchase transactions, foreign currency and interest rate hedge contracts and trade receivables. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and investments are held and primarily managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer and we believe no significant concentration of credit risk exists with respect to these investments. We enter into foreign currency hedge contracts with bank counterparties that could expose us to credit related losses in the event of their nonperformance. This is largely mitigated with collateral security agreements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. In addition, we enter into master netting arrangements which have the ability to further limit credit related losses with the same counterparty by permitting net settlement transactions. The aggregate fair value of foreign currency contracts in net asset positions as of November 30, 2018 and December 1, 2017 was $44.3 million and $14.2 million respectively. These amounts represent the maximum exposure to loss at the reporting date as a result of all of the counterparties failing to perform as contracted. These exposures could be reduced by certain immaterial liabilities included in master netting arrangements with those same counterparties. Credit risk in receivables is limited to OEMs, dealers and distributors of hardware and software products to the retail market, customers to whom we license software directly and our SaaS offerings. A credit review is completed for our new distributors, dealers and OEMs. We also perform ongoing credit evaluations of our customers’ financial condition and require letters of credit or other guarantees, whenever deemed necessary. The credit limit given to the customer is based on our risk assessment of their ability to pay, country risk and other factors and is not contingent on the resale of the product or on the collection of payments from their customers. If we license our software or provide SaaS services to a customer where we have a reason to believe the customer’s ability to pay is not probable, due to country risk or credit risk, we will not recognize the revenue. We will revert to recognizing the revenue on a cash basis, assuming all other criteria for revenue recognition has been met. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Guidance On January 26, 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2017-04, Simplifying the Test for Goodwill Impairment, which eliminated step two from the goodwill impairment test. In assessing impairment of goodwill, if it is concluded that it is more likely than not that the carrying amount of a reportable segment exceeds its fair value during the qualitative assessment, a one-step goodwill impairment test will be performed. If it is concluded during the quantitative test that the carrying amount of a reportable segment exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reportable segment. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. In the first quarter of 2018, we early adopted ASU 2017-04. The standard did not have an impact to our qualitative assessment for goodwill impairment that we performed in the second quarter of fiscal 2018. There have been no other new accounting pronouncements made effective during fiscal 2018 that have significance, or potential significance, to our Consolidated Financial Statements. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the full retrospective or modified retrospective transition method. The updated standard is effective for us in the first quarter of fiscal 2019. We will adopt this updated standard in the first quarter of fiscal 2019 on a modified retrospective basis. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. While we are continuing to assess all potential impacts of the new standard, we believe there should not be a material change to the amount of consolidated revenues on an annual basis. We expect revenue related to our cloud offerings, including Creative Cloud and Document Cloud for business enterprises, individuals and teams, to remain substantially unchanged. When sold with cloud-enabled services, Creative Cloud and Document Cloud require a significant level of integration and interdependency with software and the individual components are not considered distinct. Revenue for these offerings will continue to be recognized over the period in which the cloud services are provided. We believe the most significant revenue-related impact relates to our accounting for arrangements that include on-premise term-based software licenses bundled with maintenance and support. Under current GAAP, the revenue attributable to these software licenses is recognized ratably over the term of the arrangement because VSOE does not exist for the undelivered maintenance and support element as it is not sold separately. The requirement to have VSOE for undelivered elements to enable the separation of revenue for the delivered software licenses is eliminated under the new standard. Accordingly, under the new standard we will be required to recognize as revenue a portion of the arrangement fee upon delivery of the software licenses and potentially classify such revenue as “product” instead of “subscription” revenue on the income statement. We offer on-premise term-based software licenses bundled with maintenance and support as a deployment model for certain offerings within our Digital Experience, Digital Media, and Publishing business units. We do not expect these arrangements to have a material impact to revenue reported in annual reporting periods subsequent to adoption, however they may result in a material balance sheet impact on the date of adoption due to the application of the modified retrospective transition method. The modified retrospective method requires upon adoption that we recognize the impact of applying the new standard to contracts that are not completed at the date of initial adoption, but under this adoption method, we do not restate prior financial statements. We will record a cumulative effect of initially applying the provisions of the new standard as an adjustment to increase the opening retained earnings balance and reduce the opening deferred revenue balance. Further, some of our enterprise agreements allow our customers to commit to prepaid bank of funds which can be utilized to purchase Adobe products or services, which includes customer option to purchase or renew on-premise term-based licenses on a monthly basis. Revenue associated with these term-license performance obligations would be recognized monthly. Other expected impacts to our policies and disclosures include: earlier recognition of revenue for certain contracts due to the elimination of contingent revenue limitations, an unbilled receivable balance on our balance sheets, the requirement to estimate variable consideration for certain arrangements, increased allocation of revenue to and from professional services and other offerings, and changes to our financial statement disclosures such as remaining performance obligations. Under current GAAP, we expense costs related to the acquisition of revenue-generating contracts as incurred. Under the new standard, we will be required to capitalize certain costs incremental to contract acquisition and amortize them over the expected period of benefit. We expect there will be a material balance sheet impact at the period of adoption to capitalize costs of obtaining the contract as an asset, with a corresponding adjustment to opening retained earnings at the date of initial adoption. Additionally, we may have to record related deferred income taxes. We continue to evaluate the magnitude of the impact and the impact recent acquisitions will have under current standards and the new standard. Due to the complexity of certain of our contracts, the actual accounting treatment required under the new standard for these arrangements may be dependent on contract-specific terms and therefore may vary in some instances. On February 24, 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases with a lease term of twelve months or less. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The effective date of the new leases standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The updated standard is effective for us beginning in the first quarter of fiscal 2020 and we do not plan to early adopt. The new leases standard must be adopted using a modified retrospective transition and allows for the application of the new guidance at the beginning of the earliest comparative period presented or at the adoption date. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements, providing an optional transition method that allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We intend to adopt the new leases standard using this optional transition method. While we are continuing to assess the potential impacts of the standard, we currently expect the most significant impact will be the recognition of right-of-use assets and lease liabilities on our consolidated balance sheet. We are implementing a new lease accounting system and updating our processes in preparation for the adoption of the new leases standard. On August 28, 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging, requiring expanded hedge accounting for both non-financial and financial risk components and refining the measurement of hedge results to better reflect an entity's hedging strategies. For example, adoption would result in reclassification of hedge costs from foreign currency hedges from interest and other income (expense), net to revenue in our Consolidated Statements of Income. The updated standard also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition with a cumulative effect adjustment recorded to opening retained earnings as of the initial adoption date. The updated standard is effective for us beginning in the first quarter of fiscal 2020. We are currently evaluating the effect that the updated standard will have on our Consolidated Financial Statements and related disclosures. While we are continuing to assess all potential impacts of the new standard, we believe there should not be a material impact on our Consolidated Financial Statements. With the exception of the new standards discussed above, there have been no other new accounting pronouncements that have significance, or potential significance, to our Consolidated Financial Statements. |
Cash and Cash Equivalents | Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase. We classify all of our cash equivalents and short-term investments as “available-for-sale.” In general, these investments are free of trading restrictions. We carry these investments at fair value, based on quoted market prices or other readily available market information. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in our Consolidated Balance Sheets. Gains and losses are recognized when realized in our Consolidated Statements of Income. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in income. Gains and losses are determined using the specific identification method. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue reserve rollforward | Revenue Reserve Revenue reserve rollforward (in thousands): 2018 2017 2016 Beginning balance $ 22,006 $ 23,096 $ 19,446 Amount charged to revenue 65,241 61,031 55,739 Actual returns (61,822 ) (62,121 ) (52,089 ) Ending balance $ 25,425 $ 22,006 $ 23,096 |
Allowance for doubtful accounts | (in thousands) 2018 2017 2016 Beginning balance $ 9,151 $ 6,214 $ 7,293 Increase due to acquisition 5,602 2,391 77 Charged to operating expenses 5,962 4,411 1,337 Deductions (1) (5,734 ) (3,865 ) (2,493 ) Ending balance $ 14,981 $ 9,151 $ 6,214 ________________________________________ (1) Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Finited-lived intangible assets schedule of weighted average useful lives | Weighted Average Useful Life (years ) Purchased technology 6 Customer contracts and relationships 9 Trademarks 9 Acquired rights to use technology 10 Backlog 2 Other intangibles 4 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Marketo [Member] | |
Business Acquisition [Line Items] | |
Schedule of acquired assets and liabilities [Table Text Block] | The table below represents the preliminary purchase price allocation to the acquired net tangible and intangible assets of Marketo based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to intangible assets acquired, deferred revenue and tax liabilities assumed including the calculation of deferred tax assets and liabilities. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 576,900 11 Purchased technology 444,500 7 Backlog 105,800 2 Non-competition agreements 12,100 2 Trademarks 328,500 9 Total identifiable intangible assets 1,467,800 Net liabilities assumed (191,288 ) N/A Goodwill (1) 3,459,751 N/A Total estimated purchase price $ 4,736,263 _________________________________________ (1) Non-deductible for tax-purposes. |
Business Acquisition, Pro Forma Information [Table Text Block] | The financial information in the table below summarizes the combined results of operations of Adobe and Marketo, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 3, 2016 or of results that may occur in the future. The following unaudited pro forma financial information for fiscal 2018 and 2017 combines the historical results for Adobe for the years ended November 30, 2018 and December 1, 2017 and the historical results of Marketo for the period January 1, 2018 through October 31, 2018 and the year ended December 31, 2017, respectively (in thousands): 2018 2017 Net revenues $ 9,338,790 $ 7,568,713 Net income $ 2,362,238 $ 1,404,864 |
Magento [Member] | |
Business Acquisition [Line Items] | |
Schedule of acquired assets and liabilities [Table Text Block] | The table below represents the preliminary purchase price allocation to the acquired net tangible and intangible assets of Magento based on their estimated fair values as of the acquisition date and the associated estimated useful lives at that date. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of valuation analyses pertaining to tax liabilities assumed including the calculation of deferred tax assets and liabilities. (in thousands) Amount Weighted Average Useful Life (years) Customer contracts and relationships $ 208,000 8 Purchased technology 84,200 5 In-process research and development (1) 39,100 N/A Trademarks 21,100 3 Other intangibles 43,400 3 Total identifiable intangible assets 395,800 Net liabilities assumed (67,417 ) N/A Goodwill (2) 1,316,217 N/A Total estimated purchase price $ 1,644,601 _________________________________________ (1) Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. (2) Non-deductible for tax-purposes. |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments consisted of the following as of December 1, 2017 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 280,488 $ — $ — $ 280,488 Cash equivalents: Money market mutual funds 2,006,741 — — 2,006,741 Time deposits 18,843 — — 18,843 Total cash equivalents 2,025,584 — — 2,025,584 Total cash and cash equivalents 2,306,072 — — 2,306,072 Short-term fixed income securities: Asset-backed securities 98,403 1 (403 ) 98,001 Corporate debt securities 2,461,691 2,694 (10,125 ) 2,454,260 Foreign government securities 2,396 — (8 ) 2,388 Municipal securities 21,189 8 (132 ) 21,065 U.S. Treasury securities 941,538 2 (3,552 ) 937,988 Total short-term investments 3,525,217 2,705 (14,220 ) 3,513,702 Total cash, cash equivalents and short-term investments $ 5,831,289 $ 2,705 $ (14,220 ) $ 5,819,774 Cash, cash equivalents and short-term investments consisted of the following as of November 30, 2018 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Current assets: Cash $ 368,564 $ — $ — $ 368,564 Cash equivalents: Money market mutual funds 1,234,188 — — 1,234,188 Time deposits 40,023 — — 40,023 Total cash equivalents 1,274,211 — — 1,274,211 Total cash and cash equivalents 1,642,775 — — 1,642,775 Short-term fixed income securities: Asset-backed securities 41,875 — (367 ) 41,508 Corporate debt securities 1,546,860 44 (24,696 ) 1,522,208 Foreign government securities 4,179 — (24 ) 4,155 Municipal securities 18,601 1 (286 ) 18,316 Total short-term investments 1,611,515 45 (25,373 ) 1,586,187 Total cash, cash equivalents and short-term investments $ 3,254,290 $ 45 $ (25,373 ) $ 3,228,962 |
Continuous Unrealized Loss Position Less Than Twelve Months Related to Available-for-Sale Securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that have been in an unrealized loss position for less than twelve months, as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 538,109 $ (7,966 ) $ 1,338,232 $ (5,459 ) Asset-backed securities 6,696 (54 ) 64,618 (193 ) Municipal securities 6,599 (81 ) 11,805 (115 ) Foreign government securities — — 2,388 (8 ) U.S. Treasury securities — — 593,296 (2,087 ) Total $ 551,404 $ (8,101 ) $ 2,010,339 $ (7,862 ) |
Continuous Unrealized Loss Position Twelve Months or Longer Related to Available-for-Sale-Securities | The following table summarizes the fair value and gross unrealized losses related to available-for-sale securities, aggregated by investment category, that were in a continuous unrealized loss position for more than twelve months, as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate debt securities $ 969,701 $ (16,730 ) $ 500,689 $ (4,666 ) Asset-backed securities 34,812 (313 ) 32,383 (210 ) Municipal securities 11,532 (205 ) 598 (17 ) Foreign government securities 4,154 (24 ) — — U.S. Treasury securities — — 338,950 (1,465 ) Total $ 1,020,199 $ (17,272 ) $ 872,620 $ (6,358 ) |
Cost and Estimated Fair Value of Debt Securities | The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of November 30, 2018 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 615,867 $ 612,104 Due between one and two years 574,554 564,199 Due between two and three years 289,033 282,144 Due after three years 132,061 127,740 Total $ 1,611,515 $ 1,586,187 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities at fair value on a recurring basis | The fair value of our financial assets and liabilities at November 30, 2018 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 1,234,188 $ 1,234,188 $ — $ — Time deposits 40,023 40,023 — — Short-term investments: Asset-backed securities 41,508 — 41,508 — Corporate debt securities 1,522,208 — 1,522,208 — Foreign government securities 4,155 — 4,155 — Municipal securities 18,316 — 18,316 — Prepaid expenses and other current assets: Foreign currency derivatives 44,259 — 44,259 — Other assets: Deferred compensation plan assets 68,988 3,895 65,093 — Total assets $ 2,973,645 $ 1,278,106 $ 1,695,539 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 816 $ — $ 816 $ — Other liabilities: Interest rate swap derivatives 9,744 — 9,744 — Total liabilities $ 10,560 $ — $ 10,560 $ — The fair value of our financial assets and liabilities at December 1, 2017 was determined using the following inputs (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market mutual funds $ 2,006,741 $ 2,006,741 $ — $ — Time deposits 18,843 18,843 — — Short-term investments: Asset-backed securities 98,001 — 98,001 — Corporate debt securities 2,454,260 — 2,454,260 — Foreign government securities 2,388 — 2,388 — Municipal securities 21,065 — 21,065 — U.S. Treasury securities 937,988 — 937,988 — Prepaid expenses and other current assets: Foreign currency derivatives 14,198 — 14,198 — Other assets: Deferred compensation plan assets 56,690 2,573 54,117 — Total assets $ 5,610,174 $ 2,028,157 $ 3,582,017 $ — Liabilities: Accrued expenses: Foreign currency derivatives $ 1,598 $ — $ 1,598 $ — Other liabilities: Interest rate swap derivatives 1,058 — 1,058 — Total liabilities $ 2,656 $ — $ 2,656 $ — |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair value of derivative instruments on our Consolidated Balance Sheets as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Fair Value Asset Derivatives Fair Value Liability Derivatives Fair Value Asset Derivatives Fair Value Liability Derivatives Derivatives designated as hedging instruments: Foreign exchange option contracts (1)(2) $ 40,191 $ — $ 12,918 $ — Interest rate swap (3) — 9,744 — 1,058 Derivatives not designated as hedging instruments: Foreign exchange forward contracts (1) 4,068 816 1,280 1,598 Total derivatives $ 44,259 $ 10,560 $ 14,198 $ 2,656 _________________________________________ (1) Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. (2) Hedging effectiveness expected to be recognized to income within the next twelve months. (3) Included in other liabilities on our Consolidated Balance Sheets. |
Effect of Derivative Instruments as Designated Cash Flow Hedges and Not Designated as Hedges | The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Foreign Exchange Option Contracts Foreign Exchange Forward Contracts Derivatives in cash flow hedging relationships: Net gain (loss) recognized in other comprehensive income, net of tax (1) $ 74,080 $ — $ 6,917 $ — $ 36,511 $ — Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax (2) $ 48,647 $ — $ 32,852 $ — $ 18,823 $ — Net gain (loss) recognized in income (3) $ (41,179 ) $ — $ (30,243 ) $ — $ (29,169 ) $ — Derivatives not designated as hedging relationships: Net gain (loss) recognized in income (4) $ — $ 1,529 $ — $ 6,586 $ — $ (1,308 ) _________________________________________ (1) Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). (2) Effective portion classified as revenue. (3) Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. (4) Classified in interest and other income (expense), net. |
Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Balance Sheet Hedging | Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Gain (loss) on foreign currency assets and liabilities: Net realized gain (loss) recognized in other income $ 882 $ (6,142 ) $ 832 Net unrealized gain (loss) recognized in other income (3,843 ) (907 ) (6,070 ) (2,961 ) (7,049 ) (5,238 ) Gain (loss) on hedges of foreign currency assets and liabilities: Net realized gain (loss) recognized in other income (2,042 ) 5,415 174 Net unrealized gain (loss) recognized in other income 3,571 1,171 (1,482 ) 1,529 6,586 (1,308 ) Net gain (loss) recognized in interest and other income (expense), net $ (1,432 ) $ (463 ) $ (6,546 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of the following as of November 30, 2018 and December 1, 2017 (in thousands): 2018 2017 Computers and equipment $ 1,239,033 $ 1,128,264 Furniture and fixtures 121,206 115,273 Capital projects in-progress 23,026 5,575 Leasehold improvements 181,990 120,165 Land 145,065 77,723 Buildings 485,024 490,665 Building improvements 285,564 265,829 Total 2,480,908 2,203,494 Less accumulated depreciation and amortization (1,405,836 ) (1,266,518 ) Property and equipment, net $ 1,075,072 $ 936,976 |
Goodwill and Purchased and Ot_2
Goodwill and Purchased and Other Intangibles (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by reportable segment | Goodwill by reportable segment and activity for the years ended November 30, 2018 and December 1, 2017 was as follows (in thousands): 2016 Acquisitions Other (1) 2017 Acquisitions Other (1) 2018 Digital Media $ 2,796,590 $ — $ 4,501 $ 2,801,091 $ — $ (2,481 ) $ 2,798,610 Digital Experience 2,351,462 348,352 62,232 2,762,046 4,791,216 (29,246 ) 7,524,016 Publishing 258,422 — 2 258,424 — (2 ) 258,422 Goodwill $ 5,406,474 $ 348,352 $ 66,735 $ 5,821,561 $ 4,791,216 $ (31,729 ) $ 10,581,048 _________________________________________ (1) Amounts primarily consist of foreign currency translation adjustments. |
Purchased and other intangible assets by reportable segment | Purchased and other intangible assets by reportable segment as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Digital Media $ 408,602 $ 128,243 Digital Experience 1,660,396 257,408 Publishing 3 7 Purchased and other intangible assets, net $ 2,069,001 $ 385,658 |
Purchased and other intangible assets subject to amortization | Purchased and other intangible assets as of November 30, 2018 and December 1, 2017 were as follows (in thousands): 2018 2017 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Purchased technology $ 750,286 $ (118,812 ) $ 631,474 $ 223,252 $ (110,433 ) $ 112,819 Customer contracts and relationships $ 1,329,432 $ (416,176 ) $ 913,256 $ 577,484 $ (356,613 ) $ 220,871 Trademarks 384,855 (25,968 ) 358,887 76,255 (56,094 ) 20,161 Acquired rights to use technology 58,966 (48,770 ) 10,196 71,130 (54,223 ) 16,907 Backlog 147,300 (13,299 ) 134,001 4,813 (3,037 ) 1,776 Other intangibles 51,096 (29,909 ) 21,187 34,483 (21,359 ) 13,124 Total other intangible assets $ 1,971,649 $ (534,122 ) $ 1,437,527 $ 764,165 $ (491,326 ) $ 272,839 Purchased and other intangible $ 2,721,935 $ (652,934 ) $ 2,069,001 $ 987,417 $ (601,759 ) $ 385,658 |
Amortization expense in future periods | As of November 30, 2018 , we expect amortization expense in future periods to be as follows (in thousands): Fiscal Year Purchased Technology (*) Other Intangible Assets 2019 $ 114,445 $ 270,588 2020 112,153 233,064 2021 89,783 146,541 2022 82,119 132,188 2023 72,166 132,046 Thereafter 121,708 523,100 Total expected amortization expense $ 592,374 $ 1,437,527 _________________________________________ (*) Excludes $39.1 million of capitalized in-process research and development which are considered indefinite lived until the completion or abandonment of the associated research and development efforts |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses as of November 30, 2018 and December 1, 2017 consisted of the following (in thousands): 2018 2017 Accrued compensation and benefits $ 313,874 $ 256,862 Accrued bonuses 216,007 160,880 Accrued media costs 124,849 134,525 Sales and marketing allowances 44,968 47,389 Accrued corporate marketing 66,186 72,087 Taxes payable 57,525 49,550 Royalties payable 51,529 46,411 Accrued interest expense 29,481 25,594 Other 258,766 200,475 Accrued expenses $ 1,163,185 $ 993,773 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes, domestic and foreign | Income before income taxes for fiscal 2018 , 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Domestic $ 542,948 $ 1,056,156 $ 805,749 Foreign 2,250,928 1,081,485 629,389 Income before income taxes $ 2,793,876 $ 2,137,641 $ 1,435,138 |
Provision for income taxes, current and deferred | The provision for income taxes for fiscal 2018 , 2017 and 2016 consisted of the following (in thousands): 2018 2017 2016 Current: United States federal $ 501,272 $ 298,802 $ 94,396 Foreign 140,308 60,962 59,749 State and local 28,612 33,578 15,222 Total current 670,192 393,342 169,367 Deferred: United States federal (466,113 ) 48,905 33,924 Foreign (9,734 ) (4,242 ) (2,751 ) State and local 8,757 5,682 (9,287 ) Total deferred (467,090 ) 50,345 21,886 Tax expense attributable to employee stock plans — — 75,103 Provision for income taxes $ 203,102 $ 443,687 $ 266,356 |
Reconciliation of provision for income taxes | Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 22.2% in 2018 and 35% in both 2017 and 2016 by income before income taxes) as a result of the following (in thousands): 2018 2017 2016 Computed “expected” tax expense $ 620,240 $ 748,174 $ 502,298 State tax expense, net of federal benefit 25,214 25,131 10,636 Tax credits (110,849 ) (38,000 ) (48,383 ) Differences between statutory rate and foreign effective tax rate (384,393 ) (215,490 ) (133,778 ) Stock-based compensation, net of tax deduction (95,372 ) (42,512 ) 15,101 Resolution of income tax examinations (42,432 ) (31,358 ) (68,003 ) Domestic manufacturing deduction benefit (13,098 ) (32,200 ) (26,990 ) Impacts of the U.S. Tax Act 185,997 — — Tax charge for licensing acquired company technology to foreign subsidiaries — 24,771 5,346 Other 17,795 5,171 10,129 Provision for income taxes $ 203,102 $ 443,687 $ 266,356 |
Deferred tax assets and liabilities | The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of November 30, 2018 and December 1, 2017 are presented below (in thousands): 2018 2017 Deferred tax assets: Acquired technology $ 9,561 $ 4,846 Reserves and accruals 59,100 48,761 Deferred revenue 37,690 23,452 Stock-based compensation 89,240 74,942 Net operating loss carryforwards of acquired companies 209,445 44,465 Credit carryforwards 173,748 124,205 Capitalized expenses 19,074 13,428 Benefits relating to tax positions 51,965 33,318 Other 37,160 30,300 Total gross deferred tax assets 686,983 397,717 Deferred tax asset valuation allowance (174,496 ) (93,568 ) Total deferred tax assets 512,487 304,149 Deferred tax liabilities: Depreciation and amortization 40,425 84,064 Undistributed earnings of foreign subsidiaries 17,556 382,744 Acquired intangible assets 501,208 117,282 Total deferred tax liabilities 559,189 584,090 Net deferred tax liabilities: $ 46,702 $ 279,941 |
Gross amount of unrecognized tax benefits | During fiscal 2018 and 2017 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands): 2018 2017 Beginning balance $ 172,945 $ 178,413 Gross increases in unrecognized tax benefits – prior year tax positions 16,191 3,680 Gross decreases in unrecognized tax benefits – prior year tax positions (4,000 ) (30,166 ) Gross increases in unrecognized tax benefits – current year tax positions 60,721 24,927 Settlements with taxing authorities — (3,876 ) Lapse of statute of limitations (45,922 ) (8,819 ) Foreign exchange gains and losses (3,783 ) 8,786 Ending balance $ 196,152 $ 172,945 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used to Value Employee Stock Purchase Rights | The expected term of ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights were as follows: 2018 2017 2016 Expected life (in years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Volatility 26% - 29% 22% - 27% 26 - 29% Risk free interest rate 1.54% - 2.52% 0.62% - 1.41% 0.37 - 1.06% |
Restricted Stock Unit Activity | Restricted stock unit activity for fiscal 2018 , 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Beginning outstanding balance 9,304 8,316 10,069 Awarded 4,012 5,018 4,440 Released (3,988 ) (3,859 ) (5,471 ) Forfeited (660 ) (766 ) (722 ) Increase due to acquisition — 595 — Ending outstanding balance 8,668 9,304 8,316 |
Restricted Stock Units Outstanding | Information regarding restricted stock units outstanding at November 30, 2018 , December 1, 2017 and December 2, 2016 is summarized below: Number of Shares (thousands) Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (*) (millions) 2018 Restricted stock units outstanding 8,668 1.06 $ 2,174.7 Restricted stock units vested and expected to vest 8,049 1.01 $ 2,019.5 2017 Restricted stock units outstanding 9,304 1.11 $ 1,670.2 Restricted stock units vested and expected to vest 8,608 1.05 $ 1,545.3 2016 Restricted stock units outstanding 8,316 1.11 $ 829.4 Restricted stock units vested and expected to vest 7,613 1.04 $ 759.3 _________________________________________ (*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of November 30, 2018 , December 1, 2017 and December 2, 2016 were $250.89 , $179.52 and $99.73 , respectively. |
Performance Share Activity | Performance share activity for fiscal 2018 , 2017 and 2016 was as follows (in thousands): 2018 2017 2016 Shares Granted Maximum Shares Eligible to Receive Shares Granted Maximum Shares Eligible to Receive Shares Maximum Beginning outstanding balance 1,534 3,068 1,630 3,261 1,940 3,881 Awarded 837 (1) 628 1,082 (2) 1,040 1,206 (3) 1,053 Achieved (1,050 ) (4) (1,053 ) (1,135 ) (5) (1,147 ) (1,373 ) (5) (1,387 ) Forfeited (173 ) (347 ) (43 ) (86 ) (143 ) (286 ) Ending outstanding balance 1,148 2,296 1,534 3,068 1,630 3,261 _________________________________________ (1) Included in the 0.8 million shares awarded during fiscal 2018 were 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share program. The remaining awarded shares were for the 2018 Performance Share Program. (2) Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. (3) Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. (4) Shares achieved under our 2015, Performance Share program which resulted from 200% achievement of target. (5) Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs. |
Restricted Stock Units Granted to Directors | Restricted stock units granted to directors for fiscal 2018 , 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Restricted stock units granted to existing directors 11 18 25 Restricted stock units granted to new directors 1 — — |
Total Stock-Based Compensation Costs | Total stock-based compensation costs that have been included in our Consolidated Statements of Income for fiscal 2018 , 2017 and 2016 were as follows (in thousands): Income Statement Classifications Cost of Revenue– Subscription Cost of Revenue– Services and Support Research and Development Sales and Marketing General and Administrative Total (1) Stock Purchase Rights and Option Grants 2018 $ 4,102 $ 8,286 $ 23,918 $ 27,252 $ 7,290 $ 70,848 2017 $ 180 $ 6,661 $ 20,126 $ 18,592 $ 4,973 $ 50,532 2016 $ 1,474 $ 5,514 $ 13,932 $ 16,534 $ 4,371 $ 41,825 Restricted Stock Units and Performance Share Awards 2018 $ 17,515 $ 12,111 $ 253,078 $ 178,548 $ 77,462 $ 538,714 2017 $ 16,792 $ 9,602 $ 161,366 $ 139,047 $ 77,133 $ 403,940 2016 $ 6,632 $ 7,522 $ 109,249 $ 113,757 $ 70,312 $ 307,472 _________________________________________ (1) During fiscal 2018 , 2017 and 2016 , we recorded tax benefits of $222.4 million , $153.2 million and $71.7 million , respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | : December 1, Increase / Decrease Reclassification Adjustments November 30, Net unrealized gains / losses on available-for-sale securities: Unrealized gains on available-for-sale securities $ 2,704 $ (2,005 ) $ (655 ) $ 44 Unrealized losses on available-for-sale securities (14,220 ) (22,459 ) 11,305 (25,374 ) Total net unrealized gains / losses on available-for-sale securities (11,516 ) (24,464 ) 10,650 (1 ) (25,330 ) Net unrealized gains / losses on derivative instruments designated as hedging instruments (3,367 ) 74,080 (48,981 ) (2 ) 21,732 Cumulative foreign currency translation adjustments (96,938 ) (47,594 ) — (144,532 ) Total accumulated other comprehensive income (loss), net of taxes $ (111,821 ) $ 2,022 $ (38,331 ) $ (148,130 ) _________________________________________ (1) Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. (2) Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Other Comprehensive Income, Tax [Table Text Block] | The following table sets forth the taxes related to each component of other comprehensive income for fiscal 2018 , 2017 and 2016 (in thousands): 2018 2017 2016 Available-for-sale securities: Unrealized gains / losses $ — $ 663 $ (299 ) Reclassification adjustments — (491 ) 108 Subtotal available-for-sale securities — 172 (191 ) Derivatives designated as hedging instruments: Reclassification adjustments (1,946 ) (732 ) (552 ) Subtotal derivatives designated as hedging instruments (1,946 ) (732 ) (552 ) Foreign currency translation adjustments (1,742 ) 3,005 24 Total taxes, other comprehensive income (loss) $ (3,688 ) $ 2,445 $ (719 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share for fiscal 2018 , 2017 and 2016 (in thousands, except per share data): 2018 2017 2016 Net income $ 2,590,774 $ 1,693,954 $ 1,168,782 Shares used to compute basic net income per share 490,564 493,632 498,345 Dilutive potential common shares: Unvested restricted stock units and performance share awards 7,142 7,161 5,455 Stock options 137 330 499 Shares used to compute diluted net income per share 497,843 501,123 504,299 Basic net income per share $ 5.28 $ 3.43 $ 2.35 Diluted net income per share $ 5.20 $ 3.38 $ 2.32 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of non-cancellable unconditional purchase obligations, operating leases and capital leases | The following table summarizes our non-cancellable unconditional purchase obligations and operating leases for each of the next five years and thereafter as of November 30, 2018 (in thousands): Operating Leases Fiscal Year Purchase Obligations Future Minimum Lease Payments Future Minimum Sublease Income 2019 $ 346,334 $ 88,554 $ 9,173 2020 172,883 93,509 8,981 2021 162,421 80,408 8,837 2022 20,866 71,425 6,451 2023 27,352 56,490 2,325 Thereafter 3,977 311,937 — Total $ 733,833 $ 702,323 $ 35,767 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Our long-term debt as of November 30, 2018 and December 1, 2017 consisted of the following (in thousands): 2018 2017 Term loan $ 2,248,427 $ — Notes 1,886,117 1,882,479 Fair value of interest rate swap (9,744 ) (1,058 ) Adjusted carrying value of long-term debt $ 4,124,800 $ 1,881,421 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Non-Operating Income (Expense) | Non-operating income (expense) for fiscal 2018 , 2017 and 2016 included the following (in thousands): 2018 2017 2016 Interest and other income (expense), net: Interest income $ 92,540 $ 66,069 $ 47,340 Foreign exchange gains (losses) (42,612 ) (30,705 ) (35,716 ) Realized gains on fixed income investment 655 1,673 2,880 Realized losses on fixed income investment (11,305 ) (725 ) (985 ) Other 258 83 29 Interest and other income (expense), net $ 39,536 $ 36,395 $ 13,548 Interest expense $ (89,242 ) $ (74,402 ) $ (70,442 ) Investment gains (losses), net: Realized investment gains $ 6,128 $ 3,279 $ 4,964 Unrealized investment gains — 4,274 186 Realized investment losses — — (6,720 ) Unrealized investment losses (2,915 ) — — Investment gains (losses), net $ 3,213 $ 7,553 $ (1,570 ) Non-operating income (expense), net $ (46,493 ) $ (30,454 ) $ (58,464 ) |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Our segment results for fiscal 2018 , 2017 and 2016 were as follows (dollars in thousands): Digital Media Digital Experience Publishing Total Fiscal 2018 Revenue $ 6,325,315 $ 2,443,745 $ 260,948 $ 9,030,008 Cost of revenue 249,386 922,414 23,199 1,194,999 Gross profit $ 6,075,929 $ 1,521,331 $ 237,749 $ 7,835,009 Gross profit as a percentage of revenue 96 % 62 % 91 % 87 % Fiscal 2017 Revenue $ 5,010,579 $ 2,030,324 $ 260,602 $ 7,301,505 Cost of revenue 239,994 747,005 23,492 1,010,491 Gross profit $ 4,770,585 $ 1,283,319 $ 237,110 $ 6,291,014 Gross profit as a percentage of revenue 95 % 63 % 91 % 86 % Fiscal 2016 Revenue $ 3,941,011 $ 1,631,426 $ 281,993 $ 5,854,430 Cost of revenue 231,074 559,938 28,896 819,908 Gross profit $ 3,709,937 $ 1,071,488 $ 253,097 $ 5,034,522 Gross profit as a percentage of revenue 94 % 66 % 90 % 86 % |
Revenue and Property and Equipment by Geographic Area | The tables below list our revenue and property and equipment, net, by geographic area for fiscal 2018 , 2017 and 2016 (in thousands). With the exception of property and equipment, we do not identify or allocate our assets (including long-lived assets) by geographic area. Revenue 2018 2017 2016 Americas: United States $ 4,632,469 $ 3,830,845 $ 3,087,764 Other 484,296 385,686 312,371 Total Americas 5,116,765 4,216,531 3,400,135 EMEA 2,550,062 1,985,105 1,619,153 APAC: Japan 609,361 524,254 401,205 Other 753,820 575,615 433,937 Total APAC 1,363,181 1,099,869 835,142 Revenue $ 9,030,008 $ 7,301,505 $ 5,854,430 Property and Equipment 2018 2017 2016 Americas: United States $ 882,145 $ 753,393 $ 642,823 Other 30,475 2,797 559 Total Americas 912,620 756,190 643,382 EMEA 51,033 54,181 48,662 APAC: India 93,259 109,051 106,322 Other 18,160 17,554 17,898 Total APAC 111,419 126,605 124,220 Property and equipment, net $ 1,075,072 $ 936,976 $ 816,264 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 2018 (in thousands, except per share data) Quarter Ended March 2 June 1 August 31 November 30 Revenue $ 2,078,947 $ 2,195,360 $ 2,291,076 $ 2,464,625 Gross profit $ 1,820,045 $ 1,914,016 $ 1,995,584 $ 2,105,364 Income before income taxes $ 702,502 $ 690,799 $ 701,358 $ 699,217 Net income $ 583,076 $ 663,167 $ 666,291 $ 678,240 Basic net income per share $ 1.18 $ 1.35 $ 1.36 $ 1.39 Diluted net income per share $ 1.17 $ 1.33 $ 1.34 $ 1.37 2017 (in thousands, except per share data) Quarter Ended March 3 June 2 September 1 December 1 Revenue $ 1,681,646 $ 1,772,190 $ 1,841,074 $ 2,006,595 Gross profit $ 1,444,309 $ 1,532,830 $ 1,578,152 $ 1,735,723 Income before income taxes $ 460,632 $ 492,618 $ 541,379 $ 643,012 Net income $ 398,446 $ 374,390 $ 419,569 $ 501,549 Basic net income per share $ 0.81 $ 0.76 $ 0.85 $ 1.02 Diluted net income per share $ 0.80 $ 0.75 $ 0.84 $ 1.00 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Other Details [Abstract] | ||||
Aggregate fair value of derivative instruments, Liabilities | $ 10,560 | $ 2,656 | ||
Aggregate fair value of derivative instruments, Assets | 44,259 | 14,198 | ||
Advertising expenses | $ 173,600 | $ 141,700 | $ 135,800 | |
Number of weeks in current fiscal year | P52W | P52W | P53W | |
Foreign Exchange [Member] | ||||
Other Details [Abstract] | ||||
Aggregate fair value of derivative instruments, Assets | [1] | $ 44,300 | $ 14,200 | |
Revenue Reserve [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | 22,006 | 23,096 | $ 19,446 | |
Amount charged to revenue | 65,241 | 61,031 | 55,739 | |
Actual returns | (61,822) | (62,121) | (52,089) | |
Ending balance | 25,425 | 22,006 | 23,096 | |
Allowance for Doubtful Accounts [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | 9,151 | 6,214 | 7,293 | |
Increase due to acquisition | 5,602 | 2,391 | 77 | |
Charged to operating expenses | 5,962 | 4,411 | 1,337 | |
Actual returns | [2] | (5,734) | (3,865) | (2,493) |
Ending balance | $ 14,981 | $ 9,151 | $ 6,214 | |
[1] | Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. | |||
[2] | Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries. |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Details 1) | 12 Months Ended |
Nov. 30, 2018 | |
Computers and equipment [Member] | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computers and equipment [Member] | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Furniture and Fixtures [Member] | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 6 years |
Buildings [Member] | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold Improvements [Member] | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Building Improvements [Member] | Minimum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building Improvements [Member] | Maximum | |
Property and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies (Details 2) | 12 Months Ended |
Nov. 30, 2018 | |
Purchased Technology [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years |
Customer Contracts and Relationships [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Trademarks [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Acquired rights to use technology [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Backlog [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years |
Other intangibles [Member] | |
Purchased and other intangible assets | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Minimum | |
Purchased and other intangible assets | |
Intangible assets estimated useful lives - range (in years) | 1 year |
Maximum | |
Purchased and other intangible assets | |
Intangible assets estimated useful lives - range (in years) | 14 years |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Oct. 31, 2018 | ||
Schedule of acquired assets and liabilities [Line Items] | ||||
Goodwill, Acquired During Period | $ 4,791,216 | $ 348,352 | ||
Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Finite-Lived Customer Relationships, Gross | $ 576,900 | |||
Finite-Lived Purchased Technology, Gross | 444,500 | |||
Finite-Lived Backlog, Gross | 105,800 | |||
Finite-Lived Noncompete Agreements, Gross | 12,100 | |||
Finite-Lived Trademarks, Gross | 328,500 | |||
Total identifiable intangible assets acquired | 1,467,800 | |||
Net assets acquired or liabilities assumed | (191,288) | |||
Goodwill, Acquired During Period | [1] | $ 3,459,751 | ||
Business Combination Purchase Price | $ 4,736,263 | |||
Customer Contracts and Relationships [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Customer Contracts and Relationships [Member] | Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | |||
Purchased Technology [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |||
Purchased Technology [Member] | Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||
Backlog [Member] | Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |||
Noncompete Agreements [Member] | Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |||
Trademarks [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Trademarks [Member] | Marketo [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
[1] | Non-deductible for tax-purposes. |
Acquisitions (Details 2)
Acquisitions (Details 2) - Marketo [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2018 | Dec. 01, 2017 | |
Schedule of pro forma revenue and earnings [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 9,338,790 | $ 7,568,713 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 2,362,238 | $ 1,404,864 |
Acquisitions (Details 3)
Acquisitions (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Jun. 18, 2018 | ||
Schedule of acquired assets and liabilities [Line Items] | ||||
Goodwill, Acquired During Period | $ 4,791,216 | $ 348,352 | ||
Magento [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Finite-Lived Customer Relationships, Gross | $ 208,000 | |||
Finite-Lived Purchased Technology, Gross | 84,200 | |||
Finite -lived in-process research and development | [1] | 39,100 | ||
Finite-Lived Trademarks, Gross | 21,100 | |||
Other Finite-Lived Intangible Assets, Gross | 43,400 | |||
Total identifiable intangible assets acquired | 395,800 | |||
Net assets acquired or liabilities assumed | (67,417) | |||
Goodwill, Acquired During Period | [2] | $ 1,316,217 | ||
Business Combination Purchase Price | $ 1,644,601 | |||
Customer Contracts and Relationships [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Customer Contracts and Relationships [Member] | Magento [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | |||
Purchased Technology [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |||
Purchased Technology [Member] | Magento [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
Trademarks [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |||
Trademarks [Member] | Magento [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
Other intangibles [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | |||
Other intangibles [Member] | Magento [Member] | ||||
Schedule of acquired assets and liabilities [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | |||
[1] | Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. | |||
[2] | Non-deductible for tax-purposes. |
Acquisitions (Details Numeric)
Acquisitions (Details Numeric) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Nov. 30, 2018 | Dec. 01, 2017 | Jan. 25, 2019 | Oct. 31, 2018 | Oct. 17, 2018 | Dec. 19, 2016 | ||
Business Acquisition [Line Items] | |||||||
Goodwill, Acquired During Period | $ 4,791,216 | $ 348,352 | |||||
Marketo [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination Purchase Price | $ 4,736,263 | ||||||
Goodwill, Acquired During Period | [1] | 3,459,751 | |||||
Cash and cash equivalents assumed | 54,900 | ||||||
Trade receivables acquired | 72,400 | ||||||
Accrued expenses assumed | 100,100 | ||||||
Deferred revenue assumed | 74,800 | ||||||
Deferred tax liabilities assumed, net | 182,600 | ||||||
Deferred tax liabilities assumed for future amortization of intangible assets | 348,800 | ||||||
Deferred tax assets acquired | 166,200 | ||||||
Total identifiable intangible assets acquired | 1,467,800 | ||||||
Net assets acquired or liabilities assumed | $ (191,288) | ||||||
TubeMogul [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination Purchase Price | $ 560,800 | ||||||
Goodwill, Acquired During Period | $ 348,400 | ||||||
Total identifiable intangible assets acquired | 113,100 | ||||||
Net assets acquired or liabilities assumed | $ 99,300 | ||||||
Subsequent Event [Member] | Allegorithmic [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination Purchase Price | $ 105,000 | ||||||
Term Loan [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Term Loan | 2,250,000 | ||||||
Term Loan [Member] | Marketo [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Term Loan | $ 2,250,000 | ||||||
Long-term Debt, Term | 18 months | ||||||
[1] | Non-deductible for tax-purposes. |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,254,290 | $ 5,831,289 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 45 | 2,705 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (25,373) | (14,220) |
Cash, Cash Equivalents, and Short-term Investments, Fair Value Disclosure | 3,228,962 | 5,819,774 |
Cash and cash equivalents [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,642,775 | 2,306,072 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,642,775 | 2,306,072 |
Cash [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 368,564 | 280,488 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 368,564 | 280,488 |
Cash equivalents [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,274,211 | 2,025,584 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,274,211 | 2,025,584 |
Cash equivalents [Member] | Money market mutual funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,234,188 | 2,006,741 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 1,234,188 | 2,006,741 |
Cash equivalents [Member] | Time deposits [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40,023 | 18,843 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 40,023 | 18,843 |
Short-term investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,611,515 | 3,525,217 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 45 | 2,705 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (25,373) | (14,220) |
Available For Sale Securities Fair Value Disclosure | 1,586,187 | 3,513,702 |
Short-term fixed income securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41,875 | 98,403 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 1 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (367) | (403) |
Available For Sale Securities Fair Value Disclosure | 41,508 | 98,001 |
Short-term fixed income securities [Member] | Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,546,860 | 2,461,691 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 44 | 2,694 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (24,696) | (10,125) |
Available For Sale Securities Fair Value Disclosure | 1,522,208 | 2,454,260 |
Short-term fixed income securities [Member] | Foreign government securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,179 | 2,396 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (24) | (8) |
Available For Sale Securities Fair Value Disclosure | 4,155 | 2,388 |
Short-term fixed income securities [Member] | Municipal securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,601 | 21,189 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1 | 8 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (286) | (132) |
Available For Sale Securities Fair Value Disclosure | $ 18,316 | 21,065 |
Short-term fixed income securities [Member] | US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 941,538 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3,552) | |
Available For Sale Securities Fair Value Disclosure | $ 937,988 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments (Details 1) $ in Thousands | Nov. 30, 2018USD ($)securities | Dec. 01, 2017USD ($)securities |
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 551,404 | $ 2,010,339 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (8,101) | (7,862) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,020,199 | 872,620 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (17,272) | $ (6,358) |
Fair Value and Gross Unrealized Losses | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | securities | 369 | 894 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | securities | 577 | 360 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 538,109 | $ 1,338,232 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (7,966) | (5,459) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 969,701 | 500,689 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (16,730) | (4,666) |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 6,696 | 64,618 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (54) | (193) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 34,812 | 32,383 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (313) | (210) |
Municipal securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 6,599 | 11,805 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (81) | (115) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 11,532 | 598 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (205) | (17) |
Foreign government securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 2,388 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (8) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 4,154 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (24) | 0 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 0 | 593,296 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (2,087) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 0 | 338,950 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ (1,465) |
Cash, Cash Equivalents and Sh_5
Cash, Cash Equivalents and Short-Term Investments (Details 2) $ in Thousands | Nov. 30, 2018USD ($) |
Amortized cost and Estimated Fair Value of Short-term fixed Income Securities [Abstract] | |
Due within one year, Amortized Cost | $ 615,867 |
Due between one and two years, Amortized Cost | 574,554 |
Due between two and three years, Amortized Cost | 289,033 |
Due after three years, Amortized Cost | 132,061 |
Total, Amortized Cost | 1,611,515 |
Due within one year, Estimated Fair value | 612,104 |
Due between one and two years, Estimated Fair value | 564,199 |
Due between two and three years, Estimated Fair value | 282,144 |
Due after three years, Estimated Fair value | 127,740 |
Total, Estimated Fair Value | $ 1,586,187 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 44,259 | $ 14,198 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 68,988 | 56,690 |
Assets, Fair Value Disclosure | 2,973,645 | 5,610,174 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 816 | 1,598 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 9,744 | 1,058 |
Liabilities, Fair Value Disclosure | 10,560 | 2,656 |
Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 41,508 | 98,001 |
Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 1,522,208 | 2,454,260 |
Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 4,155 | 2,388 |
Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 18,316 | 21,065 |
Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,234,188 | 2,006,741 |
Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 40,023 | 18,843 |
US Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 937,988 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 3,895 | 2,573 |
Assets, Fair Value Disclosure | 1,278,106 | 2,028,157 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1,234,188 | 2,006,741 |
Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 40,023 | 18,843 |
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 44,259 | 14,198 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 65,093 | 54,117 |
Assets, Fair Value Disclosure | 1,695,539 | 3,582,017 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 816 | 1,598 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 9,744 | 1,058 |
Liabilities, Fair Value Disclosure | 10,560 | 2,656 |
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 41,508 | 98,001 |
Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 1,522,208 | 2,454,260 |
Fair Value, Inputs, Level 2 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 4,155 | 2,388 |
Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 18,316 | 21,065 |
Fair Value, Inputs, Level 2 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 937,988 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Plan Assets, Fair Value Disclosure | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Liabilities, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign government securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money market mutual funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Available-for-sale Securities, Fair Value Disclosure | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details Numeric) $ in Millions | Nov. 30, 2018USD ($) |
Notes 2020 and 2025 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Instrument, Fair Value Disclosure | $ 1,890 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | ||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | $ 44,259 | $ 14,198 | |
Fair Value Liability Derivatives | 10,560 | 2,656 | |
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 427,900 | $ 333,900 | |
Derivative, Remaining Maturity | 180 days | 180 days | |
Designated as Hedging Instrument [Member] | Foreign Exchange Option Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [1],[2] | $ 40,191 | $ 12,918 |
Fair Value Liability Derivatives | [1],[2] | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [3] | 0 | 0 |
Fair Value Liability Derivatives | [4] | 9,744 | 1,058 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value Asset Derivatives | [2] | 4,068 | 1,280 |
Fair Value Liability Derivatives | [2] | $ 816 | $ 1,598 |
[1] | Hedging effectiveness expected to be recognized to income within the next twelve months. | ||
[2] | Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets. | ||
[3] | Included in other liabilities on our Consolidated Balance Sheets | ||
[4] | Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Option Contracts [Member] | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | $ 74,080 | $ 6,917 | $ 36,511 |
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2] | 48,647 | 32,852 | 18,823 |
Net gain (loss) recognized in income | [3] | (41,179) | (30,243) | (29,169) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives in cash flow hedging relationships [Abstract] | ||||
Net gain (loss) recognized in OCI, net of tax | [1] | 0 | 0 | 0 |
Net gain (loss) reclassified from accumulated OCI into income, net of tax | [2] | 0 | 0 | 0 |
Net gain (loss) recognized in income | [3] | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Option Contracts [Member] | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in income | [4] | 0 | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivatives not designated as hedging relationships [Abstract] | ||||
Net gain (loss) recognized in income | [4] | $ 1,529 | $ 6,586 | $ (1,308) |
[1] | Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”). | |||
[2] | Effective portion classified as revenue. | |||
[3] | Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net. | |||
[4] | Classified in interest and other income (expense), net. |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (42,612) | $ (30,705) | $ (35,716) |
Not Designated as Hedging Instrument [Member] | |||
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Foreign Currency Transaction Gain (Loss), Realized | 882 | (6,142) | 832 |
Foreign Currency Transaction Gain (Loss), Unrealized | (3,843) | (907) | (6,070) |
Foreign Currency Transaction Gain (Loss), before Tax | (2,961) | (7,049) | (5,238) |
Derivative, Gain (Loss) on Derivative, Net | (1,432) | (463) | (6,546) |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Net gain (losses) from foreign exchange option contracts recognized from income | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (2,042) | 5,415 | 174 |
Unrealized Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | 3,571 | 1,171 | (1,482) |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 1,529 | $ 6,586 | $ (1,308) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Jun. 13, 2014 | Feb. 28, 2010 | |
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Remaining Maturity | 180 days | 180 days | ||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 427.9 | $ 333.9 | ||
Euro Member Countries, Euro | Foreign Exchange Contract [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 158.8 | 105 | ||
United Kingdom, Pounds | Foreign Exchange Contract [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 51.5 | 34.6 | ||
Japan, Yen | Foreign Exchange Contract [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 77.2 | 45.4 | ||
India, Rupees | Foreign Exchange Contract [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | 50.7 | 78 | ||
Other Foreign Currencies [Member] | Foreign Exchange Contract [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 89.7 | $ 70.9 | ||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Remaining Maturity | 12 months | |||
Fair Value Hedging [Member] | ||||
Derivatives and Hedging Activities (Numeric) [Abstract] | ||||
Derivative, Notional Amount | $ 900 | |||
Derivative, Fixed Interest Rate | 4.75% | |||
Notes 2020 [Member] | ||||
Derivative [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||
Debt Instrument, Face Amount | $ 900 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 |
Property and Equipment [Line Items] | |||
Total | $ 2,480,908 | $ 2,203,494 | |
Less accumulated depreciation and amortization | (1,405,836) | (1,266,518) | |
Property and equipment, net | 1,075,072 | 936,976 | $ 816,264 |
Computers And Equipment [Member] | |||
Property and Equipment [Line Items] | |||
Total | 1,239,033 | 1,128,264 | |
Furniture and Fixtures [Member] | |||
Property and Equipment [Line Items] | |||
Total | 121,206 | 115,273 | |
Capital Projects In-Progress [Member] | |||
Property and Equipment [Line Items] | |||
Total | 23,026 | 5,575 | |
Leasehold Improvements [Member] | |||
Property and Equipment [Line Items] | |||
Total | 181,990 | 120,165 | |
Land [Member] | |||
Property and Equipment [Line Items] | |||
Total | 145,065 | 77,723 | |
Buildings [Member] | |||
Property and Equipment [Line Items] | |||
Total | 485,024 | 490,665 | |
Building Improvements [Member] | |||
Property and Equipment [Line Items] | |||
Total | $ 285,564 | $ 265,829 |
Property and Equipment (Detai_2
Property and Equipment (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | Mar. 31, 2017 | |
Property and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 157.1 | $ 156.9 | $ 157.6 | |
Almaden Tower [Member] | ||||
Property and Equipment [Line Items] | ||||
Option to purchase building, purchase price | $ 103.6 | |||
Capitalized amount for building purchase | $ 104.2 |
Goodwill and Purchased and Ot_3
Goodwill and Purchased and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | ||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | $ 5,821,561 | $ 5,406,474 | |
Acquisitions | 4,791,216 | 348,352 | |
Other | [1] | (31,729) | 66,735 |
Goodwill, Ending Balance | 10,581,048 | 5,821,561 | |
Digital Media [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 2,801,091 | 2,796,590 | |
Acquisitions | 0 | 0 | |
Other | [1] | (2,481) | 4,501 |
Goodwill, Ending Balance | 2,798,610 | 2,801,091 | |
Digital Experience [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 2,762,046 | 2,351,462 | |
Acquisitions | 4,791,216 | 348,352 | |
Other | [1] | (29,246) | 62,232 |
Goodwill, Ending Balance | 7,524,016 | 2,762,046 | |
Publishing [Member] | |||
Goodwill by reportable segment [Abstract] | |||
Goodwill, Beginning Balance | 258,424 | 258,422 | |
Acquisitions | 0 | 0 | |
Other | [1] | (2) | 2 |
Goodwill, Ending Balance | $ 258,422 | $ 258,424 | |
[1] | Amounts primarily consist of foreign currency translation adjustments. |
Goodwill and Purchased and Ot_4
Goodwill and Purchased and Other Intangibles (Details 1) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Finite-Lived Intangible Assets, Net | $ 2,069,001 | $ 385,658 |
Digital Media [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Finite-Lived Intangible Assets, Net | 408,602 | 128,243 |
Digital Experience [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Finite-Lived Intangible Assets, Net | 1,660,396 | 257,408 |
Publishing [Member] | ||
Purchased and other intangible assets, net by reportable segment [Abstract] | ||
Finite-Lived Intangible Assets, Net | $ 3 | $ 7 |
Goodwill and Purchased and Ot_5
Goodwill and Purchased and Other Intangibles (Details 2) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,721,935 | $ 987,417 |
Accumulated Amortization | (652,934) | (601,759) |
Finite-Lived Intangible Assets, Net | 2,069,001 | 385,658 |
Purchased Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 750,286 | 223,252 |
Accumulated Amortization | (118,812) | (110,433) |
Finite-Lived Intangible Assets, Net | 631,474 | 112,819 |
Customer Contracts and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,329,432 | 577,484 |
Accumulated Amortization | (416,176) | (356,613) |
Finite-Lived Intangible Assets, Net | 913,256 | 220,871 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 384,855 | 76,255 |
Accumulated Amortization | (25,968) | (56,094) |
Finite-Lived Intangible Assets, Net | 358,887 | 20,161 |
Acquired rights to use technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 58,966 | 71,130 |
Accumulated Amortization | (48,770) | (54,223) |
Finite-Lived Intangible Assets, Net | 10,196 | 16,907 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 147,300 | 4,813 |
Accumulated Amortization | (13,299) | (3,037) |
Finite-Lived Intangible Assets, Net | 134,001 | 1,776 |
Other intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 51,096 | 34,483 |
Accumulated Amortization | (29,909) | (21,359) |
Finite-Lived Intangible Assets, Net | 21,187 | 13,124 |
Total other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,971,649 | 764,165 |
Accumulated Amortization | (534,122) | (491,326) |
Finite-Lived Intangible Assets, Net | $ 1,437,527 | $ 272,839 |
Goodwill and Purchased and Ot_6
Goodwill and Purchased and Other Intangibles (Details 3) $ in Thousands | Nov. 30, 2018USD ($) |
Purchased Technology [Member] | |
Amortization Expense in Future Periods [Abstract] | |
2,019 | $ 114,445 |
2,020 | 112,153 |
2,021 | 89,783 |
2,022 | 82,119 |
2,023 | 72,166 |
Thereafter | 121,708 |
Total expected amortization expense | 592,374 |
Total other intangible assets | |
Amortization Expense in Future Periods [Abstract] | |
2,019 | 270,588 |
2,020 | 233,064 |
2,021 | 146,541 |
2,022 | 132,188 |
2,023 | 132,046 |
Thereafter | 523,100 |
Total expected amortization expense | 1,437,527 |
In-process research and development | |
Purchased and other intangible assets | |
Capitalized in-process research and development | $ 39,100 |
Goodwill and Purchased and Ot_7
Goodwill and Purchased and Other Intangibles (Details Numeric) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to purchased and other intangible assets | $ 182.6 | $ 153.6 | $ 152.4 |
Amortization expense included in cost of sales | $ 91.3 | $ 76.1 | $ 71.1 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets estimated useful lives - range (in years) | 14 years |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Accrued Expense [Abstract] | ||
Accrued compensation and benefits | $ 313,874 | $ 256,862 |
Accrued bonuses | 216,007 | 160,880 |
Accrued media costs | 124,849 | 134,525 |
Sales and marketing allowances | 44,968 | 47,389 |
Accrued corporate marketing | 66,186 | 72,087 |
Taxes payable | 57,525 | 49,550 |
Royalties payable | 51,529 | 46,411 |
Accrued interest expense | 29,481 | 25,594 |
Other accrued expenses | 258,766 | 200,475 |
Accrued expenses | $ 1,163,185 | $ 993,773 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S federal statutory rate | 22.20% | ||||||||||
Income before income taxes | $ 699,217 | $ 701,358 | $ 690,799 | $ 702,502 | $ 643,012 | $ 541,379 | $ 492,618 | $ 460,632 | $ 2,793,876 | $ 2,137,641 | $ 1,435,138 |
Income before income taxes [Abstract] | |||||||||||
Domestic | 542,948 | 1,056,156 | 805,749 | ||||||||
Foreign | 2,250,928 | 1,081,485 | 629,389 | ||||||||
Provision for income taxes - Current | |||||||||||
United States federal | 501,272 | 298,802 | 94,396 | ||||||||
Foreign | 140,308 | 60,962 | 59,749 | ||||||||
State and local | 28,612 | 33,578 | 15,222 | ||||||||
Total current | 670,192 | 393,342 | 169,367 | ||||||||
Provision for income taxes - Deferred | |||||||||||
United States federal | (466,113) | 48,905 | 33,924 | ||||||||
Foreign | (9,734) | (4,242) | (2,751) | ||||||||
State and local | 8,757 | 5,682 | (9,287) | ||||||||
Total deferred | (467,090) | 50,345 | 21,886 | ||||||||
Tax expense attributable to employee stock plans | 0 | 0 | 75,103 | ||||||||
Provision for income taxes | 203,102 | 443,687 | 266,356 | ||||||||
Reconciliation of provision for income taxes [Abstract] | |||||||||||
Computed "expected" tax expense | 620,240 | 748,174 | 502,298 | ||||||||
State tax expense, net of federal benefit | 25,214 | 25,131 | 10,636 | ||||||||
Tax credits | (110,849) | (38,000) | (48,383) | ||||||||
Differences between statutory rate and foreign effective tax rate | (384,393) | (215,490) | (133,778) | ||||||||
Stock-based compensation (net of tax deduction) | (95,372) | (42,512) | 15,101 | ||||||||
Resolution of income tax examinations | (42,432) | (31,358) | (68,003) | ||||||||
Domestic manufacturing deduction benefit | (13,098) | (32,200) | (26,990) | ||||||||
Impacts of the U.S. Tax Act | 185,997 | 0 | 0 | ||||||||
Tax charge for licensing acquired company technology to foreign subsidiaries | 0 | 24,771 | 5,346 | ||||||||
Other, net | 17,795 | 5,171 | 10,129 | ||||||||
Provision for income taxes | $ 203,102 | $ 443,687 | $ 266,356 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2018 | Dec. 01, 2017 | |
Deferred tax assets: | ||
Acquired technology | $ 9,561 | $ 4,846 |
Reserves and accruals | 59,100 | 48,761 |
Deferred revenue | 37,690 | 23,452 |
Stock-based compensation | 89,240 | 74,942 |
Net operating loss carryforwards of acquired companies | 209,445 | 44,465 |
Credit carryforwards | 173,748 | 124,205 |
Capitalized expenses | 19,074 | 13,428 |
Benefits relating to tax positions | 51,965 | 33,318 |
Other | 37,160 | 30,300 |
Total gross deferred tax assets | 686,983 | 397,717 |
Deferred tax assets valuation allowance | (174,496) | (93,568) |
Total deferred tax assets | 512,487 | 304,149 |
Deferred tax liabilities: | ||
Depreciation and amortization | 40,425 | 84,064 |
Undistributed earnings of foreign subsidiaries | 17,556 | 382,744 |
Acquired intangible assets | 501,208 | 117,282 |
Total deferred tax liabilities | 559,189 | 584,090 |
Net deferred tax liabilities | 46,702 | 279,941 |
Aggregate changes in total gross amount of unrecognized tax benefits [Abstract] | ||
Beginning balance | 172,945 | 178,413 |
Gross increases in unrecognized tax benefits - prior year tax positions | 16,191 | 3,680 |
Gross decreases in unrecognized tax benefits - prior year tax positions | (4,000) | (30,166) |
Gross increases in unrecognized tax benefits - current year tax positions | 60,721 | 24,927 |
Settlements with taxing authorities | 0 | (3,876) |
Lapse of statute of limitations | (45,922) | (8,819) |
Foreign exchange gains and losses | 3,783 | (8,786) |
Ending balance | $ 196,152 | $ 172,945 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2018 | Dec. 01, 2017 | |
Deferred Tax Liability Not Recognized, Undistributed Earnings of Foreign Subsidiaries [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 275,000 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 57,800 | |
Valuation Allowance [Abstract] | ||
Change in Deferred Tax Asset Valuation Allowance | 80,900 | |
Deferred tax assets valuation allowance | 174,496 | $ 93,568 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 881,100 | |
Tax credit carry forward | 8,800 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | 349,700 | |
Tax credit carry forward | 189,900 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carry forward | $ 14,900 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Jan. 1, 2019 | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Other Tax Carryforward, Expiration Dates | Jan. 1, 2036 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 01, 2017 |
Income Tax Examination [Line Items] | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 24.6 | $ 23.6 |
Minimum | ||
Income Tax Examination [Line Items] | ||
Estimated potential effect in underlying unrecognized tax benefits, maximum | 0 | |
Maximum | ||
Income Tax Examination [Line Items] | ||
Estimated potential effect in underlying unrecognized tax benefits, maximum | $ 45 |
Income Taxes Details Numeric (D
Income Taxes Details Numeric (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Nov. 30, 2018 | Nov. 30, 2018 | |
US Federal statutory tax rate effective before the Tax Cuts and Jobs Act | 35.00% | ||
US Federal statutory tax rate effective after the Tax Cuts and Jobs Act | 21.00% | ||
U.S federal statutory rate | 22.20% | ||
Provisional transition tax expense on deferred foreign earnings due to Tax Cuts and Jobs Act 2017 | 15.50% | 15.50% | |
Tax Cuts and Jobs Act of 2017 one-time transition tax other income | 8.00% | 8.00% | |
Tax charge due to Tax Cuts and Jobs Act | $ 10 | ||
Transition tax expense on deferred foreign earnings due to Tax Cuts and Jobs Act | 176 | ||
Transition tax expense of long term income taxes payable due to the Tax Cuts and Jobs Act | 504 | ||
Transition tax expense on other tax liabilities due to Tax Cuts and Jobs Act | 19 | ||
Reduction in deferred tax liabilities due to Tax Cuts and Jobs Act | 347 | ||
Reclassification of long term income taxes payable to short term income taxes payable due to Tax Cuts and Jobs Act | $ 40 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Retirement Benefits [Abstract] | |||
Percentage of employer matching contribution to retirement savings plan | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||
Percentage of eligible employee contribution to retirement savings plan | 65.00% | ||
Employer's conribution to retirement savings plan | $ 41 | $ 34.3 | $ 33.4 |
Board of Directors and Certain Executives [Member] | |||
Deferred Compensation Plan for certain executives and Board of Director Members [Line Items] | |||
Percentage of contribution made by participants of base salary to deferred compensation plan | 75.00% | ||
Percentage of contribution made by participants of other specified compensation to deferred compensation plan | 100.00% | ||
Minimum period after end of plan year participants can elect to begin benefit payments | 3 years | ||
Payment period for annual installments election of benefit payments | over five, ten or fifteen years | ||
Deferred compensation plan assets | $ 69 | 56.7 | |
Deferred compensation plan liabilities | $ 84 | $ 67.2 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Subscription Date Fair Value Of Shares | $ 53.12 | $ 29.86 | $ 24.84 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1.8 | 1.9 | 1.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 104.94 | $ 77.63 | $ 66.13 |
Total Intrinsic Value Of Shares Purchased | $ 198.9 | $ 97.7 | $ 54.3 |
ESPP Purchase Price as Percentage of Market Price | 85.00% | ||
Common Stock, Capital Shares Reserved for Future Issuance | 93 | ||
Shares available for grant | 5.3 | ||
Valuation Assumptions Volatility | |||
From | 26.00% | 22.00% | 26.00% |
To | 29.00% | 27.00% | 29.00% |
Valuation Assumptions Risk Free Interest Rate Range | |||
From | 1.54% | 0.62% | 0.37% |
To | 2.52% | 1.41% | 1.06% |
Minimum | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 6 months | 6 months | 6 months |
Maximum | |||
Valuation Assumptions Expected Life (in Years) | |||
Expected Life (in Years) | 2 years | 2 years | 2 years |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Closing market values (per share) | $ 250.89 | $ 179.52 | $ 99.73 | |
Restricted Stock Unit [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted Average Grant Date Fair Value, Restricted Stock Units (per share) | $ 208.73 | $ 120.33 | $ 89.87 | |
Total Fair Value Vested Units or Shares | $ 837.3 | $ 472 | $ 499.8 | |
Unit or Share Activity | ||||
Beginning outstanding balance | 9,304 | 8,316 | 10,069 | |
Awarded | 4,012 | 5,018 | 4,440 | |
Released | (3,988) | (3,859) | (5,471) | |
Forfeited | (660) | (766) | (722) | |
Due To Acquisition | 0 | 595 | 0 | |
Ending outstanding balance | 8,668 | 9,304 | 8,316 | |
Units or Shares Outstanding | ||||
Outstanding Weighted Average Remaining Contractual Life | 1 year 22 days | 1 year 1 month 10 days | 1 year 1 month 10 days | |
Outstanding Intrinsic Value | [1] | $ 2,174.7 | $ 1,670.2 | $ 829.4 |
Vested And Expected To Vest Shares | 8,049 | 8,608 | 7,613 | |
Vested And Expected To Vest Weighted Average Remaining Contractual Life | 1 year 4 days | 1 year 18 days | 1 year 15 days | |
Vested And Expected To Vest Intrinsic Value | [1] | $ 2,019.5 | $ 1,545.3 | $ 759.3 |
2003 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 124,500 | |||
Shares available for grant | 54,100 | |||
[1] | The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of November 30, 2018, December 1, 2017 and December 2, 2016 were $250.89, $179.52 and $99.73, respectively. |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details 2) - Performance Shares [Member] - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Target Percentage Allowed Under Program | 200.00% | ||||||
Shares Granted [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning outstanding balance | 1,534 | 1,630 | 1,940 | ||||
Awarded | 837 | [1] | 1,082 | [2] | 1,206 | [3] | |
Achieved | 1,050 | [4] | 1,135 | [5] | 1,373 | [5] | |
Forfeited | (173) | (43) | (143) | ||||
Ending outstanding balance | 1,148 | 1,534 | 1,630 | ||||
Maximum Shares Eligible to Receive [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning outstanding balance | 3,068 | 3,261 | 3,881 | ||||
Awarded | 628 | 1,040 | 1,053 | ||||
Achieved | 1,053 | 1,147 | 1,387 | ||||
Forfeited | (347) | (86) | (286) | ||||
Ending outstanding balance | 2,296 | 3,068 | 3,261 | ||||
Program 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [3] | 500 | |||||
Program 2014 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [3] | 600 | |||||
Program 2013 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Achieved | [3] | 700 | |||||
Programs achieved [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total Fair Value Vested Units or Shares | $ 208.2 | $ 127.4 | $ 123.1 | ||||
Program 2015 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | 200.00% | ||||||
Program 2014 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | 198.00% | ||||||
Program 2013 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual Percentage Achieved | 198.00% | ||||||
[1] | Included in the 0.8 million shares awarded during fiscal 2018 were 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share program. The remaining awarded shares were for the 2018 Performance Share Program. | ||||||
[2] | Included in the 1.1 million shares awarded during fiscal 2017 were 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share program. The remaining awarded shares were for the 2017 Performance Share Program. | ||||||
[3] | Included in the 1.2 million shares awarded during fiscal 2016 were 0.7 million additional shares awarded for the final achievement of the 2013 Performance Share program. The remaining awarded shares were for the 2016 Performance Share Program. | ||||||
[4] | Shares achieved under our 2015, Performance Share program which resulted from 200% achievement of target. | ||||||
[5] | Shares achieved under our 2014 and 2013 Performance Share programs which resulted from 198% achievement of target for both programs |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Details 3) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Existing Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Non-Employee Director Aggregate Grant Value Per Award | $ 0.3 | ||
Annual Vesting Percentage For Director Grants | 100.00% | ||
New Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Non-Employee Director Aggregate Grant Value Per Award | $ 0.3 | ||
Annual Vesting Percentage For Director Grants | 100.00% | ||
Restricted Stock Unit [Member] | Existing Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Restricted Stock Units Granted to Existing Directors | 11 | 18 | 25 |
Numbers of Days Used to Calculate Average Stock Price | 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Restricted Stock Units Granted To New Directors | 1 | 0 | 0 |
Restricted Stock Unit [Member] | New Non-Employee Directors [Member] | |||
Share-based Goods and Non-employee Services Transaction [Line Items] | |||
Numbers of Days Used to Calculate Average Stock Price | 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Total stock-based compensation costs [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | $ 222,400 | $ 153,200 | $ 71,700 | |
Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 70,848 | 50,532 | 41,825 |
Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | [1] | 538,714 | 403,940 | 307,472 |
Cost of Revenue - Subscription [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 4,102 | 180 | 1,474 | |
Cost of Revenue - Subscription [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 17,515 | 16,792 | 6,632 | |
Cost of Revenue - Services and Support [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 8,286 | 6,661 | 5,514 | |
Cost of Revenue - Services and Support [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 12,111 | 9,602 | 7,522 | |
Research and Development [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 23,918 | 20,126 | 13,932 | |
Research and Development [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 253,078 | 161,366 | 109,249 | |
Sales and Marketing [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 27,252 | 18,592 | 16,534 | |
Sales and Marketing [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 178,548 | 139,047 | 113,757 | |
General and Administrative [Member] | Option Grants and Stock Purchase Rights [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | 7,290 | 4,973 | 4,371 | |
General and Administrative [Member] | Restricted Stock and Performance Share Awards [Member] | ||||
Total stock-based compensation costs [Abstract] | ||||
Stock-based compensation costs | $ 77,462 | $ 77,133 | $ 70,312 | |
[1] | During fiscal 2018, 2017 and 2016, we recorded tax benefits of $222.4 million, $153.2 million and $71.7 million, respectively. |
Stock-Based Compensation (Det_6
Stock-Based Compensation (Details Numeric) shares in Thousands, $ in Millions | 12 Months Ended | |
Nov. 30, 2018USD ($)purchaseperiodsshares | Dec. 01, 2017shares | |
Stock Based Compensation (Numeric) [Abstract] | ||
Unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock based awards (in millions) | $ | $ 978.2 | |
Number of years over which unrecognized compensation costs will be recognized | 1 year 8 months 27 days | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares | 314 | 333 |
Stock Based Compensation (Numeric) [Abstract] | ||
Period of options expiry | 7 years | |
Employee Stock Purchase Plan [Member] | ||
Stock Based Compensation (Numeric) [Abstract] | ||
Offering Period | 24 months | |
Number of purchase periods per offering period | purchaseperiods | 4 | |
Purchase period | 6 months | |
Restricted Stock Unit [Member] | Focal Awards [Member] | ||
Stock Based Compensation (Numeric) [Abstract] | ||
Award vesting period | 3 years | |
Vesting percentage per year for focal restricted stock units | 33.33% | |
Restricted Stock Unit [Member] | Other Awards [Member] | ||
Stock Based Compensation (Numeric) [Abstract] | ||
Award vesting period | 4 years | |
Vesting percentage per year for restricted stock units other than focal grants | 25.00% | |
Performance Shares [Member] | ||
Stock Based Compensation (Numeric) [Abstract] | ||
Maximum percentage of target shares able to receive | 200.00% | |
Performance Shares [Member] | Programs not yet achieved [Member] | ||
Stock Based Compensation (Numeric) [Abstract] | ||
Award vesting period | 3 years | |
Vesting percentage on third year for performance awards | 100.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | ||
Gross unrealized gains on available-for-sale securities | ||||
Beginning balance, unrealized gains on available-for-sale securities | $ 2,704 | |||
Gross unrealized gains on available for sale securities, increase decrease | (2,005) | |||
Gross unrealized gains on available for sale securities, reclassification adjustments | (655) | |||
Ending balance, unrealized gains on available-for-sale securities | 44 | $ 2,704 | ||
Gross unrealized losses on available-for-sale securities | ||||
Beginning balance, unrealized losses on available-for-sale securities | (14,220) | |||
Gross unrealized losses on available for sale securities increase or decrease | (22,459) | |||
Gross unrealized losses on available for sale securities, reclassification adjustments | 11,305 | |||
Ending balance, unrealized losses on available-for-sale securities | (25,374) | (14,220) | ||
Net unrealized gains (losses) on available-for-sale securities [Abstract] | ||||
Beginning Balance, total net unrealized gains (losses) on available-for-sale securities | (11,516) | |||
Net unrealized gains / losses on available-for-sale securities, increase or decrease | (24,464) | (2,503) | $ (1,618) | |
Reclassification adjustment for gains / losses on available-for-sale securities recognized | 10,650 | [1] | (947) | (1,895) |
Ending Balance, total net unrealized gains (losses) on available-for-sale securities | (25,330) | (11,516) | ||
Derivatives designated as hedging instruments [Abstract] | ||||
Beginning balance, net unrealized gains on derivative instruments designated as hedging instruments | (3,367) | |||
Net unrealized gains on derivative instruments designated as hedging instruments, increase or decrease | 74,080 | 6,917 | 35,199 | |
Net unrealized gains on derivative instruments designated as hedging instruments, reclassification adjustments | (48,981) | [2] | (31,973) | (16,425) |
Ending balance, net unrealized gains on derivative instruments designated as hedging instruments | 21,732 | (3,367) | ||
Cumulative foreign currency translation adjustments [Abstract] | ||||
Beginning balance, cumulative foreign currency translation adjustments | (96,938) | |||
Cumulative foreign currency translation adjustment, increase or decrease | (47,594) | 90,287 | $ (19,783) | |
Cumulative foreign currency translation adjustment, reclassification adjustments | 0 | |||
Ending balance, cumulative foreign currency translation adjustments | (144,532) | (96,938) | ||
Accumulated other comprehensive income totals [Abstract] | ||||
Beginning balance, total accumulated other comprehensive income, net of taxes | (111,821) | |||
Accumulated other comprehensive income, increase or decrease | 2,022 | |||
Accumulated other comprehensive income, reclassification adjustments | (38,331) | |||
Ending balance, total accumulated other comprehensive income, net of taxes | $ (148,130) | $ (111,821) | ||
[1] | Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net. | |||
[2] | Reclassification adjustments for gains / losses on other derivative instruments are classified in revenue. |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Available-for-sale securities, Tax: | |||
Unrealized Holding Gain (Loss) on Available-for-Sale Securities | $ 0 | $ 663 | $ (299) |
Reclassification Adjustments | 0 | (491) | 108 |
Subtotal, Available-for-sale Securities | 0 | 172 | (191) |
Derivatives designated as hedging instruments, Tax: | |||
Reclassification Adjustments | (1,946) | (732) | (552) |
Subtotal, Derivatives Designated as Hedging Instruments | (1,946) | (732) | (552) |
Foreign Currency Translation Adjustments, Tax | (1,742) | 3,005 | 24 |
Other Comprehensive Income (Loss), Tax | $ (3,688) | $ 2,445 | $ (719) |
Stockholders' Equity (Details N
Stockholders' Equity (Details Numeric) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 2 Months Ended | 12 Months Ended | ||||
Jan. 25, 2019 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | May 21, 2018 | Jan. 20, 2017 | |
Stock Repurchase Programs (Numeric) [Abstract] | ||||||
Structured stock repurchase prepayments | $ 2,050,000 | $ 1,100,000 | $ 1,075,000 | |||
Purchase of treasury stock, shares | 8.7 | 8.2 | 10.4 | |||
Repurchased Shares, Average Price | $ 230.43 | $ 134.20 | $ 97.16 | |||
Up-front payments remaining | $ 150,000 | |||||
Stock Repurchase Authority 2017 [Member] [Domain] | ||||||
Stock Repurchase Programs (Numeric) [Abstract] | ||||||
Stock Repurchase Program, Authorized Amount | $ 2,500,000 | |||||
Stock Repurchase Authority 2018 [Member] | ||||||
Stock Repurchase Programs (Numeric) [Abstract] | ||||||
Stock Repurchase Program, Authorized Amount | $ 8,000,000 | |||||
Stock Repurchase Authority 2018 [Member] | Subsequent Event [Member] | ||||||
Stock Repurchase Programs (Numeric) [Abstract] | ||||||
Structured stock repurchase prepayments | $ 500,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 7,350,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 678,240 | $ 666,291 | $ 663,167 | $ 583,076 | $ 501,549 | $ 419,569 | $ 374,390 | $ 398,446 | $ 2,590,774 | $ 1,693,954 | $ 1,168,782 |
Shares used to compute basic net income per share | 490,564 | 493,632 | 498,345 | ||||||||
Dilutive potential common shares: | |||||||||||
Unvested restricted stock units and performance share awards | 7,142 | 7,161 | 5,455 | ||||||||
Stock options | 137 | 330 | 499 | ||||||||
Shares used to compute diluted net income per share | 497,843 | 501,123 | 504,299 | ||||||||
Basic net income per share | $ 1.39 | $ 1.36 | $ 1.35 | $ 1.18 | $ 1.02 | $ 0.85 | $ 0.76 | $ 0.81 | $ 5.28 | $ 3.43 | $ 2.35 |
Diluted net income per share | $ 1.37 | $ 1.34 | $ 1.33 | $ 1.17 | $ 1 | $ 0.84 | $ 0.75 | $ 0.80 | $ 5.20 | $ 3.38 | $ 2.32 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Nov. 30, 2018USD ($) |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Purchase Obligations, 2019 | $ 346,334 |
Purchase Obligations, 2020 | 172,883 |
Purchase Obligations, 2021 | 162,421 |
Purchase Obligations, 2022 | 20,866 |
Purchase Obligations, 2023 | 27,352 |
Purchase Obligations, Thereafter | 3,977 |
Purchase Obligations, Total | 733,833 |
Operating Leases, Future Minimum Payments Receivables [Abstract] | |
Future Minimum Lease Payments, 2019 | 88,554 |
Future Minimum Lease Payments, 2020 | 93,509 |
Future Minimum Lease Payments, 2021 | 80,408 |
Future Minimum Lease Payments, 2022 | 71,425 |
Future Minimum Lease Payments, 2023 | 56,490 |
Future Minimum Lease Payments, Thereafter | 311,937 |
Future Minimum Lease Payments, Total | 702,323 |
Future Minimum Sublease Income, 2019 | 9,173 |
Future Minimum Sublease Income, 2020 | 8,981 |
Future Minimum Sublease Income, 2021 | 8,837 |
Future Minimum Sublease Income, 2022 | 6,451 |
Future Minimum Sublease Income, 2023 | 2,325 |
Future Minimum Sublease Income, Thereafter | 0 |
Future Minimum Sublease Income, Total | $ 35,767 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Numeric) $ in Millions | 12 Months Ended | |||
Nov. 30, 2018USD ($)buildings | Dec. 01, 2017USD ($) | Dec. 02, 2016USD ($) | Mar. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Royalty Expense | $ 119.1 | $ 100.9 | $ 79.8 | |
Operating leases, rent expense, minimum rentals | $ 137.2 | $ 115.4 | $ 92.9 | |
Number of corporate headquarter office buildings | buildings | 3 | |||
Almaden Tower [Member] | ||||
Asset acquisition, purchase price | ||||
Investment in lease receivable | $ 80.4 | |||
Option to purchase building, purchase price | 103.6 | |||
Capitalized amount for building purchase | $ 104.2 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Dec. 01, 2017 |
Debt Disclosure [Abstract] | ||
Term Loan | $ 2,248,427 | $ 0 |
Senior Notes | 1,886,117 | 1,882,479 |
Fair value of interest rate swap offsetting carrying value of notes, liabilities | (9,744) | (1,058) |
Debt | $ 4,124,800 | $ 1,881,421 |
Debt (Details Numeric 1)
Debt (Details Numeric 1) - Term Loan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Nov. 30, 2018 | Oct. 17, 2018 | |
Debt Instrument [Line Items] | ||
Term Loan, Amount Outstanding | $ 2,250 | |
Unamortized Debt Issuance Expense | $ 0.7 | |
Debt Instrument, Periodic Payment, Interest | $ 5.7 | |
Scenarioi [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 0.50% | |
Scenarioi [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to LIBOR to Determine Interest Rate | 1.00% | |
Scenarioii [Member] | Minimum | ||
Debt Instrument [Line Items] | ||
Margin Added to Base Rate to Determine Interest Rate | 0.04% | |
Scenarioii [Member] | Maximum | ||
Debt Instrument [Line Items] | ||
Margin Added to Base Rate to Determine Interest Rate | 0.11% |
Debt (Details Numeric 2)
Debt (Details Numeric 2) - USD ($) $ in Millions | 3 Months Ended | ||||||
Aug. 31, 2018 | Mar. 02, 2018 | Feb. 27, 2015 | Nov. 30, 2018 | Jan. 21, 2015 | Jun. 13, 2014 | Feb. 28, 2010 | |
Notes 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 900 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||
Debt Instrument, Unamortized Discount | $ 5.5 | ||||||
Unamortized Debt Issuance Expense | $ 6.4 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.92% | ||||||
Notes 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||
Proceeds from Issuance of Debt | $ 989.3 | ||||||
Debt Instrument, Unamortized Discount | $ 10.7 | ||||||
Unamortized Debt Issuance Expense | $ 7.9 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.67% | ||||||
Notes 2020 and 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes, Carrying Value | $ 1,880 | ||||||
Debt Instrument, Fair Value Disclosure | $ 1,890 | ||||||
Repurchase notes at price of their principal amount plus accrued and unpaid interest | 101.00% | ||||||
Debt Instrument, Periodic Payment, Interest | $ 37.6 | $ 37.6 | |||||
Fair Value Hedging [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 900 | ||||||
Derivative, Fixed Interest Rate | 4.75% |
Debt (Details Numeric 3)
Debt (Details Numeric 3) - Revolving Credit Facility [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Oct. 17, 2018 | Mar. 02, 2012 | |
Debt Instrument [Line Items] | |||
Revolving Credit Agreement, Borrowing Capacity | $ 1,000 | $ 1,000 | |
Unamortized Debt Issuance Expense | 0.8 | ||
Option To Request Additional Commitments On Credit Facility | 500 | ||
Revolving Credit Agreement, Maximum Borrowing Capacity | $ 1,500 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Commitment Fee Percentage | 0.04% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Commitment Fee Percentage | 0.11% | ||
Scenarioi [Member] | Minimum | |||
Debt Instrument [Line Items] | |||
Margin Added to LIBOR to Determine Interest Rate | 0.585% | ||
Scenarioi [Member] | Maximum | |||
Debt Instrument [Line Items] | |||
Margin Added to LIBOR to Determine Interest Rate | 1.015% | ||
Scenarioii [Member] | |||
Debt Instrument [Line Items] | |||
Percentage Added to Effective Funds Rate in Determining Interest Rate | 0.50% | ||
Percentage Added to LIBOR in Determining Interest Rate | 1.00% | ||
Scenarioii [Member] | Minimum | |||
Debt Instrument [Line Items] | |||
Margin Added to LIBOR to Determine Interest Rate | 0.00% | ||
Scenarioii [Member] | Maximum | |||
Debt Instrument [Line Items] | |||
Margin Added to LIBOR to Determine Interest Rate | 0.015% |
Non-Operating Income (Expense_2
Non-Operating Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Interest and other income (expense), net: | |||
Interest income | $ 92,540 | $ 66,069 | $ 47,340 |
Foreign exchange gains (losses) | (42,612) | (30,705) | (35,716) |
Realized gains on fixed income investment | 655 | 1,673 | 2,880 |
Realized losses on fixed income investment | (11,305) | (725) | (985) |
Other | 258 | 83 | 29 |
Interest and other income (expense), net | 39,536 | 36,395 | 13,548 |
Interest expense | (89,242) | (74,402) | (70,442) |
Investment gains (losses), net: | |||
Realized investment gains | 6,128 | 3,279 | 4,964 |
Unrealized investment gains | 0 | 4,274 | 186 |
Realized investment losses | 0 | 0 | (6,720) |
Unrealized investment losses | (2,915) | 0 | 0 |
Investment gains (losses), net | 3,213 | 7,553 | (1,570) |
Total non-operating income (expense), net | $ (46,493) | $ (30,454) | $ (58,464) |
Industry Segment, Geographic _3
Industry Segment, Geographic Information and Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 9,030,008 | $ 7,301,505 | $ 5,854,430 |
Cost of revenue | (1,194,999) | (1,010,491) | (819,908) | ||||||||
Gross profit | $ 2,105,364 | $ 1,995,584 | $ 1,914,016 | $ 1,820,045 | $ 1,735,723 | $ 1,578,152 | $ 1,532,830 | $ 1,444,309 | $ 7,835,009 | $ 6,291,014 | $ 5,034,522 |
Gross profit as a percentage of revenue | 87.00% | 86.00% | 86.00% | ||||||||
Digital Media [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 6,325,315 | $ 5,010,579 | $ 3,941,011 | ||||||||
Cost of revenue | (249,386) | (239,994) | (231,074) | ||||||||
Gross profit | $ 6,075,929 | $ 4,770,585 | $ 3,709,937 | ||||||||
Gross profit as a percentage of revenue | 96.00% | 95.00% | 94.00% | ||||||||
Digital Experience [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 2,443,745 | $ 2,030,324 | $ 1,631,426 | ||||||||
Cost of revenue | (922,414) | (747,005) | (559,938) | ||||||||
Gross profit | $ 1,521,331 | $ 1,283,319 | $ 1,071,488 | ||||||||
Gross profit as a percentage of revenue | 62.00% | 63.00% | 66.00% | ||||||||
Publishing [Member] | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Total Revenue | $ 260,948 | $ 260,602 | $ 281,993 | ||||||||
Cost of revenue | (23,199) | (23,492) | (28,896) | ||||||||
Gross profit | $ 237,749 | $ 237,110 | $ 253,097 | ||||||||
Gross profit as a percentage of revenue | 91.00% | 91.00% | 90.00% |
Industry Segment, Geographic _4
Industry Segment, Geographic Information and Significant Customers (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 9,030,008 | $ 7,301,505 | $ 5,854,430 |
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 1,075,072 | 936,976 | 1,075,072 | 936,976 | 816,264 | ||||||
America [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 5,116,765 | 4,216,531 | 3,400,135 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 912,620 | 756,190 | 912,620 | 756,190 | 643,382 | ||||||
United States [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 4,632,469 | 3,830,845 | 3,087,764 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 882,145 | 753,393 | 882,145 | 753,393 | 642,823 | ||||||
Other Americas [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 484,296 | 385,686 | 312,371 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 30,475 | 2,797 | 30,475 | 2,797 | 559 | ||||||
EMEA [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 2,550,062 | 1,985,105 | 1,619,153 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 51,033 | 54,181 | 51,033 | 54,181 | 48,662 | ||||||
Asia [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 1,363,181 | 1,099,869 | 835,142 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 111,419 | 126,605 | 111,419 | 126,605 | 124,220 | ||||||
Japan [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 609,361 | 524,254 | 401,205 | ||||||||
India [Member] | |||||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | 93,259 | 109,051 | 93,259 | 109,051 | 106,322 | ||||||
Other-Asia [Member] | |||||||||||
Revenue by Geographic Area [Abstract] | |||||||||||
Total Revenue | 753,820 | 575,615 | 433,937 | ||||||||
Property and Equipment by Geographic Area [Abstract] | |||||||||||
Property and equipment, net | $ 18,160 | $ 17,554 | $ 18,160 | $ 17,554 | $ 17,898 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Jun. 01, 2018 | Mar. 02, 2018 | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 02, 2017 | Mar. 03, 2017 | Nov. 30, 2018 | Dec. 01, 2017 | Dec. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 2,464,625 | $ 2,291,076 | $ 2,195,360 | $ 2,078,947 | $ 2,006,595 | $ 1,841,074 | $ 1,772,190 | $ 1,681,646 | $ 9,030,008 | $ 7,301,505 | $ 5,854,430 |
Gross profit | 2,105,364 | 1,995,584 | 1,914,016 | 1,820,045 | 1,735,723 | 1,578,152 | 1,532,830 | 1,444,309 | 7,835,009 | 6,291,014 | 5,034,522 |
Income before income taxes | 699,217 | 701,358 | 690,799 | 702,502 | 643,012 | 541,379 | 492,618 | 460,632 | 2,793,876 | 2,137,641 | 1,435,138 |
Net income | $ 678,240 | $ 666,291 | $ 663,167 | $ 583,076 | $ 501,549 | $ 419,569 | $ 374,390 | $ 398,446 | $ 2,590,774 | $ 1,693,954 | $ 1,168,782 |
Basic net income per share | $ 1.39 | $ 1.36 | $ 1.35 | $ 1.18 | $ 1.02 | $ 0.85 | $ 0.76 | $ 0.81 | $ 5.28 | $ 3.43 | $ 2.35 |
Diluted net income per share | $ 1.37 | $ 1.34 | $ 1.33 | $ 1.17 | $ 1 | $ 0.84 | $ 0.75 | $ 0.80 | $ 5.20 | $ 3.38 | $ 2.32 |
Number of weeks in current fiscal year | P52W | P52W | P53W | ||||||||
Number of weeks in current fiscal quarter | P13W | P13W | P13W | P13W | P13W | P13W | P13W | P13W |