|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
77-0019522
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Title of Each Class
|
Trading Symbol
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.0001 par value per share
|
ADBE
|
NASDAQ
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
Emerging growth company
|
☐
|
|
|
|
Page No.
|
PART I
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|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
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PART II
|
|
|
Item 5.
|
||
Item 6
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
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PART III
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
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||
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PART IV
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|
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Item 15.
|
||
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|
|
•
|
Data and insights. Our solutions deliver real-time customer profiles and intelligence across the customer journey. Adobe Analytics provides an experience system of intelligence for real-time cross-channel data, insights and activations across every channel. Adobe Audience Manager, our data management platform, helps digital publishers build unique audience profiles to identify the most valuable segments and use them across any digital channel. Adobe Experience Platform ingests, processes and stitches data across sources, channels and customer interactions in real time to create unified customer profiles. Adobe’s Real-time Customer Data Platform service, built on Adobe Experience Platform, enables brands to bring together known and unknown customer data, to activate customer profiles across channels and leverage intelligent decision-making throughout the customer journey. Our Customer Journey Analytics service brings a powerful set of analytics tools to omnichannel data in Adobe Experience Platform, providing brands viewing data across channels an easy, interactive way to dig deeper and uncover new insights, while making analytics more accessible across their organization.
|
•
|
Content and commerce. We offer solutions to help customers manage, deliver, test, target and optimize content delivery and enable shopping experiences that scale from mid-market to enterprise businesses. Our leading digital experience management solution, Adobe Experience Manager, helps customers organize, create, manage and deliver creative assets and other content across digital marketing channels, including web, mobile, email, communities and video, enabling customers to improve their market and brand perception and provide a personalized experience to their consumers. Adobe Target is a personalization engine that lets our customers test, target and optimize content using machine learning across multiple apps and the web. Magento Commerce, which integrates with Adobe Experience Manager, enables our customers to create content and promotions for storefronts on every platform and provides a highly customizable and scalable end-to-end platform to manage, personalize and optimize the commerce experience across every touchpoint by bringing together digital commerce, order management and predictive intelligence to enable engaging shopping experiences.
|
•
|
Customer journey management. Our solutions help businesses manage, personalize and orchestrate campaigns and customer journeys across B2E use cases. Adobe Campaign enables marketers to manage the B2C customer journey and use rich customer data to create, coordinate and deliver dynamic, personalized experiences that are synchronized across multiple channels and determined by each consumer’s behaviors and preferences. Marketo Engage is a complete customer experience management solution optimized for B2B, cross-channel campaigns requiring lead management, account-based marketing and revenue attribution technology by bringing together planning, engagement and measurement capabilities into an integrated marketing platform. Our Journey Orchestration service, built on Adobe
|
•
|
Advertising. Adobe Advertising Cloud delivers an end-to-end platform for managing advertising across traditional TV and digital formats, and simplifies the delivery of video, display and search advertising across channels and screens. Adobe Sensei enables machine learning and predictive intelligence and helps automate digital media buying to traditional TV advertising as well as ad creation. Adobe Advertising Cloud integrates with Adobe Creative Cloud products and combines capabilities from the Adobe Advertising Cloud Demand-Side Platform, Adobe Advertising Cloud Search, Adobe Advertising Cloud TV and Adobe Advertising Cloud Creative offerings.
|
•
|
technical support on the products they have purchased from Adobe;
|
•
|
“how to” help in using our products; and
|
•
|
product upgrades and enhancements during the term of the maintenance and support or subscription period, which is typically one to three years.
|
Name
|
|
Age
|
|
Positions
|
Shantanu Narayen
|
|
56
|
|
Chairman, President and Chief Executive Officer
Mr. Narayen currently serves as our Chairman of the Board, President and Chief Executive Officer. He joined Adobe in January 1998 as Vice President and General Manager of our engineering technology group. In January 1999, he was promoted to Senior Vice President, Worldwide Products, and in March 2001 he was promoted to Executive Vice President, Worldwide Product Marketing and Development. In January 2005, Mr. Narayen was promoted to President and Chief Operating Officer, and effective December 2007, he was appointed our Chief Executive Officer and joined our Board of Directors. In January 2017, he was named our Chairman of the Board. Mr. Narayen serves as lead independent director on the board of directors of Pfizer, a multinational pharmaceutical corporation. Mr. Narayen holds a B.S. in Electronics Engineering from Osmania University in India, a M.S. in Computer Science from Bowling Green State University and an M.B.A. from the Haas School of Business, University of California, Berkeley.
|
Name
|
|
Age
|
|
Positions
|
John Murphy
|
|
51
|
|
Executive Vice President and Chief Financial Officer
Mr. Murphy currently serves as our Executive Vice President and Chief Financial Officer. He joined Adobe in March 2017 and served as our Senior Vice President, Chief Accounting Officer and Corporate Controller until April 2018. Prior to joining Adobe, Mr. Murphy served as Senior Vice President, Chief Accounting Officer and Corporate Controller of Qualcomm Incorporated from September 2014 to March 2017. He previously served as Senior Vice President, Controller and Chief Accounting Officer of DIRECTV Inc. from November 2007 until August 2014, and Vice President and General Auditor of DIRECTV from October 2004 to November 2007. Prior to joining DIRECTV he worked at several global companies, including Experian, Nestle, and Atlantic Richfield (ARCO), in a variety of finance and accounting roles. He served as Director of DirecTV Holdings LLC from November 2007 until August 2014. Mr. Murphy serves on the Corporate Advisory Board of the Marshall School of Business at the University of Southern California. He holds an MBA from the Marshall School of Business at the University of Southern California, a B.S. in Accounting from Fordham University.
|
Scott Belsky
|
|
39
|
|
Chief Product Officer and Executive Vice President, Creative Cloud
Mr. Belsky joined Adobe in December 2017 as Chief Product Officer and Executive Vice President, Creative Cloud. Prior to joining Adobe in December 2017, Belsky was a venture investor at Benchmark in San Francisco from February 2016 to December 2017. Prior to Benchmark, Belsky led Adobe's mobile strategy for Creative Cloud from December 2012 to January 2016, having joined the company through the acquisition of Behance. Belsky co-founded Behance in 2006 and served as its CEO for over 6 years. He is an early advisor and investor to Pinterest, Uber and Warby Parker among other early-stage companies, and co-founded and serves on the board of Prefer, a referrals platform that empowers the careers of independent professionals. Mr. Belsky also serves on the advisory board of Cornell University's Entrepreneurship Program and as President of the Smithsonian Cooper-Hewitt National Design Museum board of trustees.
|
Anil Chakravarthy
|
|
52
|
|
Executive Vice President and General Manager, Digital Experience
Mr. Chakravarthy joined Adobe in January 2020 as Executive Vice President and General Manager, Digital Experience. Prior to joining Adobe, he served as Informatica’s Chief Executive Officer from August 2015 to January 2020 and Executive Vice President and Chief Product Officer from September 2013 to August 2015. Prior to joining Informatica, for over nine years, Mr. Chakravarthy held multiple leadership roles at Symantec Corporation, most recently serving as its Executive Vice President, Information Security from February 2013 to September 2013. Prior to Symantec, he was a Director of Product Management for enterprise security services at VeriSign. Mr. Chakravarthy began his career as an engagement manager at McKinsey & Company. Mr. Chakravarthy holds a Bachelor of Technology in Computer Science and Engineering from the Institute of Technology, Varanasi, India and Master of Science and Ph.D. degrees from the Massachusetts Institute of Technology.
|
Gloria Chen
|
|
55
|
|
Executive Vice President, Strategy and Growth
Ms. Chen joined Adobe in 1997 and currently serves as Executive Vice President, Strategy and Growth. In her more than 20 years at Adobe, she has held senior leadership positions in worldwide sales operations, customer service and support, and strategic planning. In October 2009, Ms. Chen was appointed Vice President and Chief of Staff to the Chief Executive Officer. In March 2018, she was promoted to Senior Vice President, Strategy and Growth and in November 2019, she was elevated to Executive Vice President, Strategy and Growth. Prior to joining Adobe, Ms. Chen was an engagement manager at McKinsey & Company. Ms. Chen holds a BS in electrical engineering from the University of Washington, an MS in electrical and computer engineering from Carnegie Mellon University and an MBA from Harvard Business School.
|
Bryan Lamkin
|
|
59
|
|
Executive Vice President and General Manager, Digital Media
Mr. Lamkin currently serves as Executive Vice President and General Manager, Digital Media. He rejoined Adobe in February 2013 as Senior Vice President, Technology and Corporate Development. From June 2011 to May 2012, Mr. Lamkin served as President and Chief Executive Officer of Clover, a mobile payments platform. Prior to Clover, Mr. Lamkin co-founded and served as the Chief Executive Officer of Bagcheck, a sharing and discovery platform, from June 2010 to May 2011. From April 2009 to June 2010, Mr. Lamkin served as Senior Vice President of Consumer Products and Applications at Yahoo!, a global technology company providing online search, content and communication tools. From May 2008 to April 2009, Mr. Lamkin served as Executive in Residence at Sutter Hill Ventures. Mr. Lamkin previously was with Adobe from 1992 to 2006 and held various senior management positions including Senior Vice President, Creative Solutions Business Unit. |
Name
|
|
Age
|
|
Positions
|
Ann Lewnes
|
|
58
|
|
Executive Vice President and Chief Marketing Officer
Ms. Lewnes joined Adobe in November 2006 and currently serves as Executive Vice President and Chief Marketing Officer. Prior to joining Adobe, Ms. Lewnes spent 20 years at Intel Corporation, where she was Vice President of Sales and Marketing. Ms. Lewnes is a board member of Mattel and the Adobe Foundation.
|
Donna Morris
|
|
52
|
|
Chief Human Resources Officer and Executive Vice President, Employee Experience
Ms. Morris currently serves as Chief Human Resources Officer and Executive Vice President of Adobe's Global Customer and Employee Experience organization. Ms. Morris joined Adobe as Senior Director of Global Talent Management in April 2002 through the acquisition of Accelio Corporation, a Canadian software company, where she served as Vice President of Human Resources and Learning. In December 2005, Ms. Morris was promoted to Vice President Global Human Resources Operations and subsequently to Senior Vice President Human Resources in March 2007. Ms. Morris is a director of Marvell Technology Group Limited and the Adobe Foundation.
|
Abhay Parasnis
|
|
45
|
|
Executive Vice President and Chief Technology Officer
Mr. Parasnis joined Adobe in July 2015 as Senior Vice President of Adobe's Cloud Technology & Services organization and Chief Technology Officer. Prior to joining Adobe, he served as President and Chief Operating Officer at Kony, Inc. from March 2013 to March 2015. From January 2012 to November 2013, Mr. Parasnis was a Senior Vice President and later Strategic Advisor for the Oracle Public Cloud at Oracle. Prior to joining Oracle, he was General Manager of Microsoft Azure AppFabric at Microsoft from April 2009 to December 2011.
|
Dana Rao
|
|
50
|
|
Executive Vice President, General Counsel and Corporate Secretary
Mr. Rao currently serves as our Executive Vice President, General Counsel and Corporate Secretary. He joined Adobe in April 2012 and served as our Vice President, Intellectual Property and Litigation where he spearheaded strategic initiatives including the company’s litigation efforts, and its patent, trademark and copyright portfolio strategies until June 2018. Prior to joining Adobe, Mr. Rao was with Microsoft Corporation for 11 years, serving in a variety of roles including Associate General Counsel of Intellectual Property and Licensing, where he oversaw all patent matters for Microsoft’s entertainment and devices division as well as the company-wide patent acquisition team. From 1997 until March 2001, he served as a patent attorney at Fenwick & West. He holds a B.S. in Electrical Engineering from Villanova University and a J.D. from George Washington University.
|
Matthew Thompson
|
|
61
|
|
Executive Vice President, Worldwide Field Operations
Mr. Thompson currently serves as Executive Vice President, Worldwide Field Operations. Mr. Thompson joined Adobe in January 2007 as Senior Vice President, Worldwide Field Operations. In January 2013, he was promoted to Executive Vice President, Worldwide Field Operations. Prior to joining Adobe, Mr. Thompson served as Senior Vice President of Worldwide Sales at Borland Software Corporation, a software delivery optimization solutions provider, from October 2003 to December 2006. Prior to joining Borland, Mr. Thompson was Vice President of Worldwide Sales and Field Operations for Marimba, Inc., a provider of products and services for software change and configuration management, from February 2001 to January 2003. From July 2000 to January 2001, Mr. Thompson was Vice President of Worldwide Sales for Calico Commerce, Inc., a provider of eBusiness applications. Prior to joining Calico, Mr. Thompson spent six years at Cadence Design Systems, Inc., a provider of electronic design technologies. While at Cadence, from January 1998 to June 2000, Mr. Thompson served as Senior Vice President, Worldwide Sales and Field Operations and from April 1994 to January 1998 as Vice President, Worldwide Professional Services. Mr. Thompson is a board member of NCR Corporation.
|
Mark Garfield
|
|
49
|
|
Vice President, Chief Accounting Officer and Corporate Controller
Mr. Garfield currently serves as our Vice President, Chief Accounting Officer and Corporate Controller. Prior to joining Adobe in December 2018, Mr. Garfield served as the Vice President of Finance of Cloudflare, Inc. commencing in November 2017. He served as Senior Vice President and Chief Accounting Officer at Symantec Corporation from March 2014 to October 2017. Prior to joining Symantec, he was at Brightstar Corporation where he served primarily as Senior Vice President and Chief Accounting Officer from January 2013 to February 2014. Mr. Garfield served as Director of Finance at Advanced Micro Devices from August 2010 to December 2012. Prior to Advanced Micro Devices, Mr. Garfield also served in senior level finance roles at LoudCloud and Ernst and Young. Mr. Garfield holds a B.A. in Business Economics from University of California at Santa Barbara.
|
•
|
the need for our sales representatives to educate customers about the use and benefit of large-scale deployments of our products and services, including technical capabilities, security features, potential cost savings and return on investment;
|
•
|
the desire of organizations to undertake significant evaluation processes to determine their technology requirements prior to making information technology expenditures;
|
•
|
the need for our representatives to spend a significant amount of time assisting potential customers in their testing and evaluation of our products and services;
|
•
|
intensifying competition within the industry;
|
•
|
the negotiation of large, complex, enterprise-wide contracts;
|
•
|
the need for our customers to obtain requisition approvals from various decision makers within their organizations due to the complexity of our solutions touching multiple departments within customers’ organizations; and
|
•
|
customer budget constraints, economic conditions and unplanned administrative delays.
|
•
|
foreign currency fluctuations and controls;
|
•
|
international and regional economic, political and labor conditions, including any instability or security concerns abroad and the United Kingdom’s vote to exit the European Union (Brexit);
|
•
|
tax laws (including U.S. taxes on foreign subsidiaries);
|
•
|
increased financial accounting and reporting burdens and complexities;
|
•
|
changes in, or impositions of, legislative or regulatory requirements;
|
•
|
changes in laws governing the free flow of data across international borders;
|
•
|
failure of laws to protect our intellectual property rights adequately;
|
•
|
inadequate local infrastructure and difficulties in managing and staffing international operations;
|
•
|
delays resulting from difficulty in obtaining export licenses for certain technology, tariffs, quotas and other trade barriers;
|
•
|
the imposition of governmental economic sanctions on countries in which we do business or where we plan to expand our business;
|
•
|
costs and delays associated with developing products in multiple languages;
|
•
|
operating in locations with a higher incidence of corruption and fraudulent business practices; and
|
•
|
other factors beyond our control, such as terrorism, war, natural disasters and pandemics.
|
•
|
inability to achieve the financial and strategic goals for the acquired and combined businesses;
|
•
|
difficulty in, and the cost of, effectively integrating the operations, technologies, products or services, and personnel of the acquired business;
|
•
|
entry into markets in which we have minimal prior experience and where competitors in such markets have stronger market positions;
|
•
|
disruption of our ongoing business and distraction of our management and other employees from other opportunities and challenges;
|
•
|
inability to retain personnel of the acquired business;
|
•
|
inability to retain key customers, distributors, vendors and other business partners of the acquired business;
|
•
|
inability to take advantage of anticipated tax benefits;
|
•
|
incurring acquisition-related costs or amortization costs for acquired intangible assets that could impact our operating results;
|
•
|
elevated delinquency or bad debt write-offs related to receivables of the acquired business we assume;
|
•
|
increased accounts receivables collection times and working capital requirements associated with acquired business models;
|
•
|
additional costs of bringing acquired companies into compliance with laws and regulations applicable to a multinational corporation;
|
•
|
difficulty in maintaining controls, procedures and policies during the transition and integration;
|
•
|
impairment of our relationships with employees, customers, partners, distributors or third-party providers of our technologies, products or services;
|
•
|
failure of our due diligence processes to identify significant problems, liabilities or other challenges of an acquired company or technology;
|
•
|
exposure to litigation or other claims in connection with, or inheritance of claims or litigation risk as a result of, an acquisition, such as claims from terminated employees, customers, former stockholders or other third parties;
|
•
|
incurring significant exit charges if products or services acquired in business combinations are unsuccessful;
|
•
|
inability to conclude that our internal controls over financial reporting are effective;
|
•
|
inability to obtain, or obtain in a timely manner, approvals from governmental authorities, which could delay or prevent such acquisitions;
|
•
|
the failure of strategic investments to perform as expected or to meet financial projections;
|
•
|
delay in customer and distributor purchasing decisions due to uncertainty about the direction of our product and service offerings; and
|
•
|
incompatibility of business cultures.
|
•
|
shortfalls in, or changes in expectations about, our revenue, margins, earnings, Annualized Recurring Revenue (“ARR”), sales of our Digital Experience offerings, or other key performance metrics;
|
•
|
changes in estimates or recommendations by securities analysts;
|
•
|
whether our results meet analysts’ expectations;
|
•
|
compression or expansion of multiples used by investors and analysts to value high technology SaaS companies;
|
•
|
the announcement of new products or services, product enhancements, service introductions, strategic alliances or significant agreements by us or our competitors;
|
•
|
the loss of large customers or our inability to increase sales to existing customers, retain customers or attract new customers;
|
•
|
recruitment or departure of key personnel;
|
•
|
variations in our or our competitors’ results of operations, changes in the competitive landscape generally and developments in our industry;
|
•
|
general socio-economic, political or market conditions; and
|
•
|
unusual events such as significant acquisitions by us or our competitors, divestitures, litigation, regulatory actions and other factors, including factors unrelated to our operating performance.
|
•
|
increasing our vulnerability to adverse changes in general economic and industry conditions;
|
•
|
requiring the dedication of a portion of our expected cash flow from operations to service our indebtedness, thereby reducing the amount of expected cash flow available for other purposes, including capital expenditures and acquisitions; and
|
•
|
limiting our flexibility in planning for, or reacting to, changes in our business and our industry.
|
Location
|
Owned / Leased
|
Approximate
Square Footage |
|
Use
|
|
Americas:
|
|
|
|
|
|
San Jose, California
|
Owned & leased
|
1,081,000
|
|
(1)
|
Research, product development, sales, marketing and administration
|
San Francisco, California
|
Owned & leased
|
657,000
|
|
(2)
|
Research, product development, sales, marketing and administration
|
APAC:
|
|
|
|
|
|
Bangalore, India
|
Owned & leased
|
422,000
|
|
(3)
|
Research, product development, sales and administration
|
Noida, India
|
Owned & leased
|
554,000
|
|
(4)
|
Research, product development, sales and administration
|
EMEA:
|
|
|
|
|
|
Greater London Area, United Kingdom
|
Leased
|
92,000
|
|
|
Product development, sales, marketing and administration
|
(1)
|
We own approximately 989,000 square feet of our San Jose properties where our headquarters is located.
|
(2)
|
We own approximately 346,000 square feet of our San Francisco properties
|
(3)
|
We own approximately 250,000 square feet of our Bangalore properties.
|
(4)
|
We own our Noida properties except for a land lease for one of our buildings. The term for the land lease is until 2091.
|
Period
|
|
Total Number of Shares
Repurchased
|
|
Average
Price Paid
Per
Share
|
|
Total
Number of
Shares
Purchased
as Part of
Publicly
Announced
Plans
|
|
Approximate
Dollar Value
that May
Yet be
Purchased
Under the
Plan(1)
|
|
||||||
|
(in thousands, except average price per share)
|
|
|||||||||||||
Beginning repurchase authority
|
|
|
|
|
|
|
$
|
6,100,054
|
|
|
|||||
August 31 — September 27, 2019
|
|
|
|
|
|
|
|
|
|||||||
Shares repurchased
|
885
|
|
|
$
|
282.43
|
|
|
885
|
|
|
$
|
(250,054
|
)
|
|
|
September 28 — October 25, 2019
|
|
|
|
|
|
|
|
|
|||||||
Shares repurchased
|
927
|
|
|
$
|
274.12
|
|
|
927
|
|
|
$
|
(254,032
|
)
|
(2)
|
|
October 26 — November 29, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares repurchased
|
954
|
|
|
$
|
279.52
|
|
|
954
|
|
|
$
|
(266,779
|
)
|
(2)
|
|
Total
|
2,766
|
|
|
|
|
|
2,766
|
|
|
$
|
5,329,189
|
|
|
(1)
|
In May 2018, the Board of Directors granted authority to repurchase up to $8 billion in common stock through the end of fiscal 2021.
|
(2)
|
In September 2019, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $750 million. As of November 29, 2019, approximately $229.2 million of the prepayment remained under this agreement.
|
(in thousands, except per share amounts and employee data)
|
Fiscal Years
|
||||||||||||||||||
|
2019(1)
|
|
2018
|
|
2017
|
|
2016(3)
|
|
2015
|
||||||||||
Operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
$
|
11,171,297
|
|
|
$
|
9,030,008
|
|
|
$
|
7,301,505
|
|
|
$
|
5,854,430
|
|
|
$
|
4,795,511
|
|
Gross profit
|
$
|
9,498,577
|
|
|
$
|
7,835,009
|
|
|
$
|
6,291,014
|
|
|
$
|
5,034,522
|
|
|
$
|
4,051,194
|
|
Income before income taxes
|
$
|
3,204,741
|
|
|
$
|
2,793,876
|
|
|
$
|
2,137,641
|
|
|
$
|
1,435,138
|
|
|
$
|
873,781
|
|
Net income
|
$
|
2,951,458
|
|
|
$
|
2,590,774
|
|
|
$
|
1,693,954
|
|
|
$
|
1,168,782
|
|
|
$
|
629,551
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic
|
$
|
6.07
|
|
|
$
|
5.28
|
|
|
$
|
3.43
|
|
|
$
|
2.35
|
|
|
$
|
1.26
|
|
Diluted
|
$
|
6.00
|
|
|
$
|
5.20
|
|
|
$
|
3.38
|
|
|
$
|
2.32
|
|
|
$
|
1.24
|
|
Shares used to compute basic net income per share
|
486,291
|
|
|
490,564
|
|
|
493,632
|
|
|
498,345
|
|
|
498,764
|
|
|||||
Shares used to compute diluted net income per share
|
491,572
|
|
|
497,843
|
|
|
501,123
|
|
|
504,299
|
|
|
507,164
|
|
|||||
Financial position:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash, cash equivalents and short-term investments
|
$
|
4,176,976
|
|
|
$
|
3,228,962
|
|
|
$
|
5,819,774
|
|
|
$
|
4,761,300
|
|
|
$
|
3,988,084
|
|
Working capital(2)
|
$
|
(1,696,013
|
)
|
|
$
|
555,913
|
|
|
$
|
3,720,356
|
|
|
$
|
3,028,139
|
|
|
$
|
2,608,336
|
|
Total assets
|
$
|
20,762,400
|
|
|
$
|
18,768,682
|
|
|
$
|
14,535,556
|
|
|
$
|
12,697,246
|
|
|
$
|
11,714,500
|
|
Debt, current
|
$
|
3,149,343
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt, non-current
|
$
|
988,924
|
|
|
$
|
4,124,800
|
|
|
$
|
1,881,421
|
|
|
$
|
1,892,200
|
|
|
$
|
1,895,259
|
|
Stockholders’ equity
|
$
|
10,530,155
|
|
|
$
|
9,362,114
|
|
|
$
|
8,459,869
|
|
|
$
|
7,424,835
|
|
|
$
|
7,001,580
|
|
Additional data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Worldwide employees
|
22,634
|
|
|
21,357
|
|
|
17,973
|
|
|
15,706
|
|
|
13,893
|
|
(1)
|
On December 1, 2018, the beginning of our fiscal year 2019, we adopted the requirements of the Financial Accounting Standards Board’s Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, Topic 606, utilizing the modified retrospective method of transition. Prior period information has not been restated and continues to be reported under the accounting standard in effect for those periods.
|
(2)
|
As of November 29, 2019, working capital was in a deficit primarily due to the reclassification of our $2.25 billion term loan due April 30, 2020 and $900 million 4.75% senior notes due February 1, 2020 to current liabilities. We intend to refinance our Term Loan and 2020 Notes on or before the due dates.
|
(3)
|
Our fiscal year is a 52- or 53-week year that ends on the Friday closest to November 30. Fiscal 2016 was a 53-week fiscal year compared with the other periods presented which were 52-week fiscal years.
|
•
|
future expected cash flows from software license sales, subscriptions, support agreements, consulting contracts and acquired developed technologies and patents;
|
•
|
historical and expected customer attrition rates and anticipated growth in revenue from acquired customers;
|
•
|
the acquired company’s trade name and trademarks as well as assumptions about the period of time the acquired trade name and trademarks will continue to be used in the combined company’s product portfolio;
|
•
|
the expected use of the acquired assets; and
|
•
|
discount rates.
|
Creative ARR
|
Annual Value of Creative Cloud Subscriptions and Services
+
Annual Creative ETLA Contract Value
|
|
Document Cloud ARR
|
Annual Value of Document Cloud Subscriptions and Services
+
Annual Document Cloud ETLA Contract Value
|
|
Digital Media ARR
|
Creative ARR
+
Document Cloud ARR
|
•
|
Adobe Advertising Cloud—delivers an end-to-end platform for managing advertising across traditional TV and digital formats, and simplifies the delivery of video, display and search advertising across channels and screens.
|
•
|
Adobe Analytics Cloud—enables businesses to move from insights to actions in real time by uniquely integrating audiences as the core system of intelligence for the enterprise; makes data available across all Adobe clouds through the capture, aggregation, rationalization and understanding of vast amounts of disparate data and then translating that data into singular customer profiles; includes Adobe Analytics and Adobe Audience Manager.
|
•
|
Adobe Marketing Cloud—provides an integrated set of solutions to help marketers differentiate their brands and engage their customers, helping businesses manage, personalize, and orchestrate campaigns and customer journeys; includes Adobe Experience Manager (“AEM”), Adobe Campaign, Adobe Target, Marketo Engage and Adobe Primetime.
|
•
|
Adobe Commerce Cloud—provides digital commerce, order management and predictive intelligence based on a unified commerce platform enabling shopping experiences across a wide array of industries; includes Magento Commerce.
|
•
|
Total Digital Media ARR of approximately $8.40 billion as of November 29, 2019 increased by $1.69 billion, or 25%, from $6.71 billion as of November 30, 2018. The change in our Digital Media ARR was primarily due to stronger new user adoption of our Creative Cloud and Adobe Document Cloud offerings.
|
•
|
Creative revenue of $6.48 billion increased by $1.14 billion, or 21%, during fiscal 2019, from $5.34 billion in fiscal 2018. The increase was primarily due to the increase in subscription revenue associated with our Creative Cloud offerings.
|
•
|
Digital Experience revenue of $3.21 billion increased by $762.4 million, or 31%, during fiscal 2019, from $2.44 billion in fiscal 2018. The increase was primarily due to the increase in subscription revenue driven by the addition of Marketo and Magento, which we acquired in the later part of fiscal 2018.
|
•
|
Our total deferred revenue of $3.50 billion as of November 29, 2019 increased by $447.1 million, or 15%, from $3.05 billion as of November 30, 2018. The increase was primarily due to increases in new contracts and the timing of renewals for offerings with cloud-enabled services and hosted services.
|
•
|
Cost of revenue of $1.67 billion increased by $477.7 million, or 40%, during fiscal 2019, from $1.19 billion in fiscal 2018. The increase was primarily due to increases in amortization of intangibles from our acquisition of Magento and Marketo in the later part of fiscal 2018. To a lesser extent, increases in hosting services and data center costs also contributed to the overall increase in cost of revenue.
|
•
|
Operating expenses of $6.23 billion increased by $1.24 billion, or 25%, during fiscal 2019, from $4.99 billion in fiscal 2018. The increase was primarily due to increases in base compensation and related benefits costs and stock-based compensation expense associated with headcount growth, including additions from the acquisitions of Magento and Marketo in the later part of fiscal 2018. To a lesser extent, increases in marketing spend also contributed to the overall increase in operating expenses.
|
•
|
Net income of $2.95 billion increased by $360.7 million, or 14%, during fiscal 2019 from $2.59 billion in fiscal 2018 primarily due to increases in revenue and offset in part by the increases in operating expenses and cost of revenue.
|
•
|
Net cash flow from operations of $4.42 billion during fiscal 2019 increased by $392.5 million, or 10%, from $4.03 billion during fiscal 2018 primarily due to higher net income adjusted for the net effect of non-cash items. This increase was offset in part by comparatively lower increases in income taxes payable and higher increases in prepaid expenses and other assets.
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Subscription
|
|
$
|
9,994.5
|
|
|
$
|
7,922.2
|
|
|
$
|
6,133.9
|
|
|
26
|
%
|
Percentage of total revenue
|
|
89
|
%
|
|
88
|
%
|
|
84
|
%
|
|
|
||||
Product
|
|
647.8
|
|
|
622.1
|
|
|
706.7
|
|
|
4
|
%
|
|||
Percentage of total revenue
|
|
6
|
%
|
|
7
|
%
|
|
10
|
%
|
|
|
||||
Services and support
|
|
529.0
|
|
|
485.7
|
|
|
460.9
|
|
|
9
|
%
|
|||
Percentage of total revenue
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
|
||||
Total revenue
|
|
$
|
11,171.3
|
|
|
$
|
9,030.0
|
|
|
$
|
7,301.5
|
|
|
24
|
%
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Digital Media
|
|
$
|
7,208.3
|
|
|
$
|
5,857.7
|
|
|
$
|
4,480.8
|
|
|
23
|
%
|
Digital Experience
|
|
2,670.7
|
|
|
1,949.3
|
|
|
1,552.5
|
|
|
37
|
%
|
|||
Publishing
|
|
115.5
|
|
|
115.2
|
|
|
100.6
|
|
|
*
|
|
|||
Total subscription revenue
|
|
$
|
9,994.5
|
|
|
$
|
7,922.2
|
|
|
$
|
6,133.9
|
|
|
26
|
%
|
•
|
Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, teams and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include content creators, experience designers, app developers, enthusiasts, students, social media users and creative professionals, as well as marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate on and distribute documents and creative content.
|
•
|
Digital Experience—Our Digital Experience segment provides products, services and solutions for creating, managing, executing, measuring, monetizing and optimizing customer experiences from advertising to commerce. Our customers include marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, marketing executives, information management and technology executives, product development executives, and sales and support executives.
|
•
|
Publishing—Our Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and OEM printing businesses. It also includes our web conferencing and document and forms platforms.
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Digital Media
|
|
$
|
7,707.0
|
|
|
$
|
6,325.3
|
|
|
$
|
5,010.6
|
|
|
22
|
%
|
Percentage of total revenue
|
|
69
|
%
|
|
70
|
%
|
|
69
|
%
|
|
|
||||
Digital Experience
|
|
3,206.2
|
|
|
2,443.7
|
|
|
2,030.3
|
|
|
31
|
%
|
|||
Percentage of total revenue
|
|
29
|
%
|
|
27
|
%
|
|
28
|
%
|
|
|
||||
Publishing
|
|
258.1
|
|
|
261.0
|
|
|
260.6
|
|
|
(1
|
)%
|
|||
Percentage of total revenue
|
|
2
|
%
|
|
3
|
%
|
|
3
|
%
|
|
|
||||
Total revenue
|
|
$
|
11,171.3
|
|
|
$
|
9,030.0
|
|
|
$
|
7,301.5
|
|
|
24
|
%
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Americas
|
|
$
|
6,505.9
|
|
|
$
|
5,116.8
|
|
|
$
|
4,216.5
|
|
|
27
|
%
|
Percentage of total revenue
|
|
58
|
%
|
|
57
|
%
|
|
58
|
%
|
|
|
||||
EMEA
|
|
2,975.2
|
|
|
2,550.0
|
|
|
1,985.1
|
|
|
17
|
%
|
|||
Percentage of total revenue
|
|
27
|
%
|
|
28
|
%
|
|
27
|
%
|
|
|
||||
APAC
|
|
1,690.2
|
|
|
1,363.2
|
|
|
1,099.9
|
|
|
24
|
%
|
|||
Percentage of total revenue
|
|
15
|
%
|
|
15
|
%
|
|
15
|
%
|
|
|
||||
Total revenue
|
|
$
|
11,171.3
|
|
|
$
|
9,030.0
|
|
|
$
|
7,301.5
|
|
|
24
|
%
|
(in millions)
|
2019
|
|
2018
|
||||
Revenue impact:
|
Increase/(Decrease)
|
||||||
Euro
|
$
|
(73.2
|
)
|
|
$
|
96.3
|
|
Australian Dollar
|
(27.2
|
)
|
|
(0.7
|
)
|
||
British Pound
|
(27.0
|
)
|
|
21.6
|
|
||
Japanese Yen
|
2.3
|
|
|
2.8
|
|
||
Other currencies
|
(12.9
|
)
|
|
2.6
|
|
||
Total revenue impact
|
(138.0
|
)
|
|
122.6
|
|
||
Hedging impact:
|
|
|
|
||||
Euro
|
30.3
|
|
|
29.1
|
|
||
British Pound
|
8.2
|
|
|
11.3
|
|
||
Japanese Yen
|
1.4
|
|
|
8.2
|
|
||
Total hedging impact
|
39.9
|
|
|
48.6
|
|
||
Total impact
|
$
|
(98.1
|
)
|
|
$
|
171.2
|
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Subscription
|
|
$
|
1,222.5
|
|
|
$
|
807.2
|
|
|
$
|
623.0
|
|
|
51
|
%
|
Percentage of total revenue
|
|
11
|
%
|
|
9
|
%
|
|
9
|
%
|
|
|
||||
Product
|
|
39.6
|
|
|
46.0
|
|
|
57.1
|
|
|
(14
|
)%
|
|||
Percentage of total revenue
|
|
*
|
|
|
1
|
%
|
|
1
|
%
|
|
|
||||
Services and support
|
|
410.6
|
|
|
341.8
|
|
|
330.4
|
|
|
20
|
%
|
|||
Percentage of total revenue
|
|
4
|
%
|
|
4
|
%
|
|
5
|
%
|
|
|
||||
Total cost of revenue
|
|
$
|
1,672.7
|
|
|
$
|
1,195.0
|
|
|
$
|
1,010.5
|
|
|
40
|
%
|
(*)
|
Percentage is less than 1%
|
|
Components of
% Change 2019-2018 |
|
Amortization of intangibles
|
17
|
%
|
Hosting services and data center costs
|
12
|
|
Media rebill costs
|
7
|
|
Royalty costs
|
4
|
|
Incentive compensation, cash and stock-based
|
4
|
|
Base compensation and related benefits associated with headcount
|
3
|
|
Various individually insignificant items
|
4
|
|
Total change
|
51
|
%
|
|
Components of
% Change 2019-2018 |
|
Incentive compensation, cash and stock-based
|
10
|
%
|
Base compensation and related benefits associated with headcount
|
7
|
|
Various individually insignificant items
|
3
|
|
Total change
|
20
|
%
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Research and development
|
|
$
|
1,930.2
|
|
|
$
|
1,537.8
|
|
|
$
|
1,224.1
|
|
|
26
|
%
|
Percentage of total revenue
|
|
17
|
%
|
|
17
|
%
|
|
17
|
%
|
|
|
||||
Sales and marketing
|
|
3,244.4
|
|
|
2,620.8
|
|
|
2,197.6
|
|
|
24
|
%
|
|||
Percentage of total revenue
|
|
29
|
%
|
|
29
|
%
|
|
30
|
%
|
|
|
||||
General and administrative
|
|
880.6
|
|
|
744.9
|
|
|
624.7
|
|
|
18
|
%
|
|||
Percentage of total revenue
|
|
8
|
%
|
|
8
|
%
|
|
9
|
%
|
|
|
||||
Amortization of intangibles
|
|
175.3
|
|
|
91.1
|
|
|
76.5
|
|
|
92
|
%
|
|||
Percentage of total revenue
|
|
2
|
%
|
|
1
|
%
|
|
1
|
%
|
|
|
||||
Total operating expenses
|
|
$
|
6,230.5
|
|
|
$
|
4,994.6
|
|
|
$
|
4,122.9
|
|
|
25
|
%
|
|
Components of
% Change 2019-2018 |
|
Incentive compensation, cash and stock-based
|
11
|
%
|
Base compensation and related benefits associated with headcount
|
8
|
|
Professional and consulting fees
|
4
|
|
Various individually insignificant items
|
3
|
|
Total change
|
26
|
%
|
|
Components of
% Change 2019-2018 |
|
Marketing spending related to campaigns, events and overall marketing efforts
|
8
|
%
|
Base compensation and related benefits associated with headcount
|
7
|
|
Incentive compensation, cash and stock-based
|
3
|
|
Professional and consulting fees
|
2
|
|
Amortization of contract acquisition costs, including sales commissions
|
2
|
|
Various individually insignificant items
|
2
|
|
Total change
|
24
|
%
|
|
Components of
% Change 2019-2018 |
|
Professional and consulting fees
|
4
|
%
|
Facilities and telecom
|
4
|
|
Incentive compensation, cash and stock-based
|
4
|
|
Base compensation and related benefits associated with headcount
|
3
|
|
Software licenses
|
2
|
|
Various individually insignificant items
|
1
|
|
Total change
|
18
|
%
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|||||||
Interest and other income (expense), net
|
|
$
|
42.2
|
|
|
$
|
39.5
|
|
|
$
|
36.4
|
|
|
**
|
|
Percentage of total revenue
|
|
*
|
|
|
*
|
|
|
*
|
|
|
|
||||
Interest expense
|
|
(157.2
|
)
|
|
(89.2
|
)
|
|
(74.4
|
)
|
|
76
|
%
|
|||
Percentage of total revenue
|
|
(1
|
)%
|
|
(1
|
)%
|
|
(1
|
)%
|
|
|
||||
Investment gains (losses), net
|
|
51.6
|
|
|
3.2
|
|
|
7.5
|
|
|
**
|
|
|||
Percentage of total revenue
|
|
*
|
|
|
*
|
|
|
*
|
|
|
|
||||
Total non-operating income (expense), net
|
|
$
|
(63.4
|
)
|
|
$
|
(46.5
|
)
|
|
$
|
(30.5
|
)
|
|
36
|
%
|
(dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
|
% Change
2019-2018 |
|
% Change
2018-2017 |
||||||||
Provision
|
|
$
|
253.3
|
|
|
$
|
203.1
|
|
|
$
|
443.7
|
|
|
25
|
%
|
|
(54
|
)%
|
Percentage of total revenue
|
|
2
|
%
|
|
2
|
%
|
|
6
|
%
|
|
|
|
|
|||||
Effective tax rate
|
|
8
|
%
|
|
7
|
%
|
|
21
|
%
|
|
|
|
|
|
As of
|
||||||
(in millions)
|
November 29, 2019
|
|
November 30, 2018
|
||||
Cash and cash equivalents
|
$
|
2,650.2
|
|
|
$
|
1,642.8
|
|
Short-term investments
|
$
|
1,526.8
|
|
|
$
|
1,586.2
|
|
Working capital
|
$
|
(1,696.0
|
)
|
|
$
|
555.9
|
|
Stockholders’ equity
|
$
|
10,530.2
|
|
|
$
|
9,362.1
|
|
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net cash provided by operating activities
|
$
|
4,421.8
|
|
|
$
|
4,029.3
|
|
|
$
|
2,912.9
|
|
Net cash used for investing activities
|
(455.6
|
)
|
|
(4,685.3
|
)
|
|
(442.9
|
)
|
|||
Net cash used for financing activities
|
(2,946.1
|
)
|
|
(5.6
|
)
|
|
(1,183.7
|
)
|
|||
Effect of foreign currency exchange rates on cash and cash equivalents
|
(12.7
|
)
|
|
(1.7
|
)
|
|
8.5
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
1,007.4
|
|
|
$
|
(663.3
|
)
|
|
$
|
1,294.8
|
|
(shares in thousands and total cost in millions)
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Board approval dates
|
|
Shares
|
|
Average per share
|
|
Shares
|
|
Average per share
|
|
Shares
|
|
Average per share
|
|||||||||
January 2015
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
4,263
|
|
|
$
|
118.00
|
|
January 2017
|
|
—
|
|
|
$
|
—
|
|
|
8,686
|
|
|
$
|
230.43
|
|
|
3,923
|
|
|
$
|
151.80
|
|
May 2018
|
|
9,883
|
|
|
$
|
270.23
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Total shares
|
|
9,883
|
|
|
$
|
270.23
|
|
|
8,686
|
|
|
$
|
230.43
|
|
|
8,186
|
|
|
$
|
134.20
|
|
Total cost
|
|
$2,671
|
|
$2,002
|
|
$1,099
|
(in millions)
|
|
Payment Due by Period
|
||||||||||||||||||
|
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Term Loan and Notes, including interest
|
|
$
|
4,373.3
|
|
|
$
|
3,227.0
|
|
|
$
|
65.0
|
|
|
$
|
65.0
|
|
|
$
|
1,016.3
|
|
Operating lease obligations, net
|
|
711.5
|
|
|
88.7
|
|
|
158.0
|
|
|
126.9
|
|
|
337.9
|
|
|||||
Purchase obligations
|
|
2,036.5
|
|
|
545.0
|
|
|
935.8
|
|
|
555.7
|
|
|
—
|
|
|||||
Total
|
|
$
|
7,121.3
|
|
|
$
|
3,860.7
|
|
|
$
|
1,158.8
|
|
|
$
|
747.6
|
|
|
$
|
1,354.2
|
|
(in millions, except Japanese Yen)
|
2019
|
|
2018
|
|
2017
|
||||||
Euro
|
€
|
1,603.2
|
|
|
€
|
1,309.9
|
|
|
€
|
1,044.7
|
|
Japanese Yen (in billions)
|
¥
|
73.2
|
|
|
¥
|
60.8
|
|
|
¥
|
51.0
|
|
British Pounds
|
£
|
503.3
|
|
|
£
|
423.1
|
|
|
£
|
338.4
|
|
|
Page No.
|
|
November 29,
2019 |
|
November 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,650,221
|
|
|
$
|
1,642,775
|
|
Short-term investments
|
1,526,755
|
|
|
1,586,187
|
|
||
Trade receivables, net of allowances for doubtful accounts of $9,650 and of $14,981, respectively
|
1,534,809
|
|
|
1,315,578
|
|
||
Prepaid expenses and other current assets
|
783,140
|
|
|
312,499
|
|
||
Total current assets
|
6,494,925
|
|
|
4,857,039
|
|
||
Property and equipment, net
|
1,293,015
|
|
|
1,075,072
|
|
||
Goodwill
|
10,691,199
|
|
|
10,581,048
|
|
||
Other intangibles, net
|
1,720,565
|
|
|
2,069,001
|
|
||
Other assets
|
562,696
|
|
|
186,522
|
|
||
Total assets
|
$
|
20,762,400
|
|
|
$
|
18,768,682
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
||
Trade payables
|
$
|
209,499
|
|
|
$
|
186,258
|
|
Accrued expenses
|
1,398,548
|
|
|
1,163,185
|
|
||
Debt
|
3,149,343
|
|
|
—
|
|
||
Deferred revenue
|
3,377,986
|
|
|
2,915,974
|
|
||
Income taxes payable
|
55,562
|
|
|
35,709
|
|
||
Total current liabilities
|
8,190,938
|
|
|
4,301,126
|
|
||
Long-term liabilities:
|
|
|
|
||||
Debt
|
988,924
|
|
|
4,124,800
|
|
||
Deferred revenue
|
122,727
|
|
|
137,630
|
|
||
Income taxes payable
|
616,102
|
|
|
644,101
|
|
||
Deferred income taxes
|
140,498
|
|
|
46,702
|
|
||
Other liabilities
|
173,056
|
|
|
152,209
|
|
||
Total liabilities
|
10,232,245
|
|
|
9,406,568
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
|
||
Preferred stock, $0.0001 par value; 2,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.0001 par value; 900,000 shares authorized; 600,834 shares issued;
482,339 and 487,663 shares outstanding, respectively |
61
|
|
|
61
|
|
||
Additional paid-in-capital
|
6,504,800
|
|
|
5,685,337
|
|
||
Retained earnings
|
14,828,562
|
|
|
11,815,597
|
|
||
Accumulated other comprehensive income (loss)
|
(188,034
|
)
|
|
(148,130
|
)
|
||
Treasury stock, at cost (118,495 and 113,171 shares, respectively), net of re-issuances
|
(10,615,234
|
)
|
|
(7,990,751
|
)
|
||
Total stockholders’ equity
|
10,530,155
|
|
|
9,362,114
|
|
||
Total liabilities and stockholders’ equity
|
$
|
20,762,400
|
|
|
$
|
18,768,682
|
|
|
Years Ended
|
||||||||||
|
November 29,
2019 |
|
November 30,
2018 |
|
December 1,
2017 |
||||||
Revenue:
|
|
|
|
|
|
||||||
Subscription
|
$
|
9,994,463
|
|
|
$
|
7,922,152
|
|
|
$
|
6,133,869
|
|
Product
|
647,788
|
|
|
622,153
|
|
|
706,767
|
|
|||
Services and support
|
529,046
|
|
|
485,703
|
|
|
460,869
|
|
|||
Total revenue
|
11,171,297
|
|
|
9,030,008
|
|
|
7,301,505
|
|
|||
Cost of revenue:
|
|
|
|
|
|
||||||
Subscription
|
1,222,520
|
|
|
807,221
|
|
|
623,048
|
|
|||
Product
|
39,625
|
|
|
46,009
|
|
|
57,082
|
|
|||
Services and support
|
410,575
|
|
|
341,769
|
|
|
330,361
|
|
|||
Total cost of revenue
|
1,672,720
|
|
|
1,194,999
|
|
|
1,010,491
|
|
|||
Gross profit
|
9,498,577
|
|
|
7,835,009
|
|
|
6,291,014
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
1,930,228
|
|
|
1,537,812
|
|
|
1,224,059
|
|
|||
Sales and marketing
|
3,244,347
|
|
|
2,620,829
|
|
|
2,197,592
|
|
|||
General and administrative
|
880,637
|
|
|
744,898
|
|
|
624,706
|
|
|||
Amortization of intangibles
|
175,244
|
|
|
91,101
|
|
|
76,562
|
|
|||
Total operating expenses
|
6,230,456
|
|
|
4,994,640
|
|
|
4,122,919
|
|
|||
Operating income
|
3,268,121
|
|
|
2,840,369
|
|
|
2,168,095
|
|
|||
Non-operating income (expense):
|
|
|
|
|
|
||||||
Interest and other income (expense), net
|
42,255
|
|
|
39,536
|
|
|
36,395
|
|
|||
Interest expense
|
(157,214
|
)
|
|
(89,242
|
)
|
|
(74,402
|
)
|
|||
Investment gains (losses), net
|
51,579
|
|
|
3,213
|
|
|
7,553
|
|
|||
Total non-operating income (expense), net
|
(63,380
|
)
|
|
(46,493
|
)
|
|
(30,454
|
)
|
|||
Income before income taxes
|
3,204,741
|
|
|
2,793,876
|
|
|
2,137,641
|
|
|||
Provision for income taxes
|
253,283
|
|
|
203,102
|
|
|
443,687
|
|
|||
Net income
|
$
|
2,951,458
|
|
|
$
|
2,590,774
|
|
|
$
|
1,693,954
|
|
Basic net income per share
|
$
|
6.07
|
|
|
$
|
5.28
|
|
|
$
|
3.43
|
|
Shares used to compute basic net income per share
|
486,291
|
|
|
490,564
|
|
|
493,632
|
|
|||
Diluted net income per share
|
$
|
6.00
|
|
|
$
|
5.20
|
|
|
$
|
3.38
|
|
Shares used to compute diluted net income per share
|
491,572
|
|
|
497,843
|
|
|
501,123
|
|
|
Years Ended
|
||||||||||
|
November 29,
2019 |
|
November 30,
2018 |
|
December 1,
2017 |
||||||
|
Increase/(Decrease)
|
||||||||||
Net income
|
$
|
2,951,458
|
|
|
$
|
2,590,774
|
|
|
$
|
1,693,954
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
||||||
Unrealized gains / losses on available-for-sale securities
|
29,409
|
|
|
(24,464
|
)
|
|
(2,503
|
)
|
|||
Reclassification adjustment for recognized gains / losses on available-for-sale securities
|
124
|
|
|
10,650
|
|
|
(947
|
)
|
|||
Net increase (decrease) from available-for-sale securities
|
29,533
|
|
|
(13,814
|
)
|
|
(3,450
|
)
|
|||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||||
Unrealized gains / losses on derivative instruments
|
294
|
|
|
74,080
|
|
|
6,917
|
|
|||
Reclassification adjustment for realized gains / losses on derivative instruments
|
(44,334
|
)
|
|
(48,981
|
)
|
|
(31,973
|
)
|
|||
Net increase (decrease) from derivatives designated as hedging instruments
|
(44,040
|
)
|
|
25,099
|
|
|
(25,056
|
)
|
|||
Foreign currency translation adjustments
|
(25,397
|
)
|
|
(47,594
|
)
|
|
90,287
|
|
|||
Other comprehensive income (loss), net of taxes
|
(39,904
|
)
|
|
(36,309
|
)
|
|
61,781
|
|
|||
Total comprehensive income, net of taxes
|
$
|
2,911,554
|
|
|
$
|
2,554,465
|
|
|
$
|
1,755,735
|
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury Stock
|
|
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
Shares
|
|
Amount
|
|
Total
|
|||||||||||||||||
Balances at December 2, 2016
|
|
600,834
|
|
|
$
|
61
|
|
|
$
|
4,616,331
|
|
|
$
|
8,114,517
|
|
|
$
|
(173,602
|
)
|
|
(106,580
|
)
|
|
$
|
(5,132,472
|
)
|
|
$
|
7,424,835
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,693,954
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,693,954
|
|
||||||
Other comprehensive income (losses), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,781
|
|
|
—
|
|
|
—
|
|
|
61,781
|
|
||||||
Re-issuance of treasury stock under stock compensation plans
|
|
—
|
|
|
—
|
|
|
1,768
|
|
|
(234,601
|
)
|
|
—
|
|
|
5,194
|
|
|
151,058
|
|
|
(81,775
|
)
|
||||||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,186
|
)
|
|
(1,100,000
|
)
|
|
(1,100,000
|
)
|
||||||
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
|
)
|
||||||
Balances at December 1, 2017
|
|
600,834
|
|
|
$
|
61
|
|
|
$
|
5,082,195
|
|
|
$
|
9,573,870
|
|
|
$
|
(111,821
|
)
|
|
(109,572
|
)
|
|
$
|
(6,084,436
|
)
|
|
$
|
8,459,869
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,590,774
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,590,774
|
|
||||||
Other comprehensive income (losses), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36,309
|
)
|
|
—
|
|
|
—
|
|
|
(36,309
|
)
|
||||||
Re-issuance of treasury stock under stock compensation plans
|
|
—
|
|
|
—
|
|
|
(1,125
|
)
|
|
(348,729
|
)
|
|
—
|
|
|
5,087
|
|
|
147,651
|
|
|
(202,203
|
)
|
||||||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,686
|
)
|
|
(2,050,000
|
)
|
|
(2,050,000
|
)
|
||||||
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
|
)
|
||||||
Impacts of the U.S. Tax Act
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(318
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(318
|
)
|
||||||
Balances at November 30, 2018
|
|
600,834
|
|
|
$
|
61
|
|
|
$
|
5,685,337
|
|
|
$
|
11,815,597
|
|
|
$
|
(148,130
|
)
|
|
(113,171
|
)
|
|
$
|
(7,990,751
|
)
|
|
$
|
9,362,114
|
|
Impacts of adoption of the new revenue standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
442,319
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
442,319
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,951,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,951,458
|
|
||||||
Other comprehensive income (losses), net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39,904
|
)
|
|
—
|
|
|
—
|
|
|
(39,904
|
)
|
||||||
Re-issuance of treasury stock under stock compensation plans
|
|
—
|
|
|
—
|
|
|
48,686
|
|
|
(380,812
|
)
|
|
—
|
|
|
4,559
|
|
|
125,074
|
|
|
(207,052
|
)
|
||||||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,883
|
)
|
|
(2,750,000
|
)
|
|
(2,750,000
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
770,777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
770,777
|
|
||||||
Value of shares in deferred
compensation plan
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
443
|
|
|
443
|
|
||||||
Balances at November 29, 2019
|
|
600,834
|
|
|
$
|
61
|
|
|
$
|
6,504,800
|
|
|
$
|
14,828,562
|
|
|
$
|
(188,034
|
)
|
|
(118,495
|
)
|
|
$
|
(10,615,234
|
)
|
|
$
|
10,530,155
|
|
|
Years Ended
|
||||||||||
|
November 29,
2019 |
|
November 30,
2018 |
|
December 1,
2017 |
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
2,951,458
|
|
|
$
|
2,590,774
|
|
|
$
|
1,693,954
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation, amortization and accretion
|
736,669
|
|
|
346,492
|
|
|
325,997
|
|
|||
Stock-based compensation
|
787,705
|
|
|
609,562
|
|
|
454,472
|
|
|||
Deferred income taxes
|
2,707
|
|
|
(468,936
|
)
|
|
51,605
|
|
|||
Unrealized losses (gains) on investments, net
|
(47,626
|
)
|
|
793
|
|
|
(5,494
|
)
|
|||
Other non-cash items
|
13,835
|
|
|
7,193
|
|
|
4,625
|
|
|||
Changes in operating assets and liabilities, net of acquired assets and
assumed liabilities: |
|
|
|
|
|
||||||
Trade receivables, net
|
(187,826
|
)
|
|
(1,983
|
)
|
|
(187,173
|
)
|
|||
Prepaid expenses and other assets
|
(531,054
|
)
|
|
(77,225
|
)
|
|
28,040
|
|
|||
Trade payables
|
23,129
|
|
|
54,920
|
|
|
(45,186
|
)
|
|||
Accrued expenses
|
171,705
|
|
|
43,837
|
|
|
151,104
|
|
|||
Income taxes payable
|
4,152
|
|
|
479,184
|
|
|
(34,493
|
)
|
|||
Deferred revenue
|
496,959
|
|
|
444,693
|
|
|
475,402
|
|
|||
Net cash provided by operating activities
|
4,421,813
|
|
|
4,029,304
|
|
|
2,912,853
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Purchases of short-term investments
|
(699,893
|
)
|
|
(566,084
|
)
|
|
(1,931,011
|
)
|
|||
Maturities of short-term investments
|
699,540
|
|
|
765,860
|
|
|
759,737
|
|
|||
Proceeds from sales of short-term investments
|
86,137
|
|
|
1,709,480
|
|
|
1,393,929
|
|
|||
Acquisitions, net of cash acquired
|
(100,704
|
)
|
|
(6,314,382
|
)
|
|
(459,626
|
)
|
|||
Purchases of property and equipment
|
(394,479
|
)
|
|
(266,579
|
)
|
|
(178,122
|
)
|
|||
Purchases of long-term investments, intangibles and other assets
|
(48,735
|
)
|
|
(18,513
|
)
|
|
(29,918
|
)
|
|||
Proceeds from sale of long-term investments and other assets
|
2,550
|
|
|
4,923
|
|
|
2,134
|
|
|||
Net cash used for investing activities
|
(455,584
|
)
|
|
(4,685,295
|
)
|
|
(442,877
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Purchases of treasury stock
|
(2,750,000
|
)
|
|
(2,050,000
|
)
|
|
(1,100,000
|
)
|
|||
Proceeds from re-issuance of treasury stock
|
232,932
|
|
|
190,990
|
|
|
158,351
|
|
|||
Taxes paid related to net share settlement of equity awards
|
(439,984
|
)
|
|
(393,193
|
)
|
|
(240,126
|
)
|
|||
Proceeds from debt issuance, net of costs
|
—
|
|
|
2,248,342
|
|
|
—
|
|
|||
Other financing activities, net
|
11,008
|
|
|
(1,707
|
)
|
|
(1,960
|
)
|
|||
Net cash used for financing activities
|
(2,946,044
|
)
|
|
(5,568
|
)
|
|
(1,183,735
|
)
|
|||
Effect of foreign currency exchange rates on cash and cash equivalents
|
(12,739
|
)
|
|
(1,738
|
)
|
|
8,516
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
1,007,446
|
|
|
(663,297
|
)
|
|
1,294,757
|
|
|||
Cash and cash equivalents at beginning of year
|
1,642,775
|
|
|
2,306,072
|
|
|
1,011,315
|
|
|||
Cash and cash equivalents at end of year
|
$
|
2,650,221
|
|
|
$
|
1,642,775
|
|
|
$
|
2,306,072
|
|
Supplemental disclosures:
|
|
|
|
|
|
|
|||||
Cash paid for income taxes, net of refunds
|
$
|
352,478
|
|
|
$
|
210,369
|
|
|
$
|
396,668
|
|
Cash paid for interest
|
$
|
152,075
|
|
|
$
|
81,258
|
|
|
$
|
69,430
|
|
Non-cash investing activities:
|
|
|
|
|
|
||||||
Investment in lease receivable applied to building purchase
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80,439
|
|
Issuance of common stock and stock awards assumed in business acquisitions
|
$
|
—
|
|
|
$
|
2,784
|
|
|
$
|
10,348
|
|
(in thousands)
|
As of
November 30, 2018 |
|
Topic 606 Adoption Adjustments
|
|
As of
December 1, 2018 |
||||||
Assets
|
|
|
|
|
|
||||||
Trade receivables, net of allowances for doubtful accounts
|
$
|
1,315,578
|
|
|
$
|
43,028
|
|
|
$
|
1,358,606
|
|
Prepaid expenses and other current assets
|
312,499
|
|
|
186,220
|
|
|
498,719
|
|
|||
Other assets
|
186,522
|
|
|
273,421
|
|
|
459,943
|
|
|||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||||||
Accrued expenses
|
1,163,185
|
|
|
30,358
|
|
|
1,193,543
|
|
|||
Deferred revenue, current
|
2,915,974
|
|
|
(52,842
|
)
|
|
2,863,132
|
|
|||
Deferred income taxes
|
46,702
|
|
|
82,834
|
|
|
129,536
|
|
|||
Retained earnings
|
$
|
11,815,597
|
|
|
$
|
442,319
|
|
|
$
|
12,257,916
|
|
•
|
We capitalized $413.2 million of contract acquisition costs comprised of sales and partner commission costs at adoption date (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion), with a corresponding adjustment to retained earnings. We are amortizing these costs over their respective expected period of benefit.
|
•
|
Revenue for certain contracts that were previously deferred would have been recognized in periods prior to adoption under the new standard. Upon adoption, we recorded the following adjustments to our beginning balances to reflect the amount of revenue that will no longer be recognized in future periods for such contracts: an increase in unbilled receivables (included in trade receivables, net) of $24.8 million, an increase in contract assets (included in prepaid expenses and other current assets for the current portion and other assets for the long-term portion) of $46.4 million and a decrease in deferred revenue of $52.8 million, with corresponding adjustments to retained earnings.
|
•
|
We recorded an increase to our opening deferred income tax liability of $82.8 million, with a corresponding adjustment to retained earnings, to record the tax effect of the above adjustments.
|
•
|
Further, we had other impacts to various accounts which resulted to an immaterial net reduction to our retained earnings.
|
(in thousands, except per share amounts)
|
As reported
|
|
Adjustments
|
|
Balances without Topic 606 adoption impact
|
||||||
Revenue
|
|
|
|
|
|
||||||
Subscription
|
$
|
9,994,463
|
|
|
$
|
1,440
|
|
|
$
|
9,995,903
|
|
Product
|
647,788
|
|
|
(101,981
|
)
|
|
545,807
|
|
|||
Services and support
|
529,046
|
|
|
(7,431
|
)
|
|
521,615
|
|
|||
Total revenue
|
11,171,297
|
|
|
(107,972
|
)
|
|
11,063,325
|
|
|||
Operating expenses
|
|
|
|
|
|
||||||
Sales and marketing
|
3,244,347
|
|
|
11,987
|
|
|
3,256,334
|
|
|||
General and administrative
|
880,637
|
|
|
(7,646
|
)
|
|
872,991
|
|
|||
Provision for income taxes
|
253,283
|
|
|
(6,517
|
)
|
|
246,766
|
|
|||
Net income
|
$
|
2,951,458
|
|
|
$
|
(105,953
|
)
|
|
$
|
2,845,505
|
|
Basic net income per share
|
$
|
6.07
|
|
|
$
|
(0.22
|
)
|
|
$
|
5.85
|
|
Diluted net income per share
|
$
|
6.00
|
|
|
$
|
(0.21
|
)
|
|
$
|
5.79
|
|
(in thousands)
|
As reported
|
|
Adjustments
|
|
Balances without Topic 606 adoption impact
|
||||||
Assets
|
|
|
|
|
|
||||||
Trade receivables, net of allowances for doubtful accounts
|
$
|
1,534,809
|
|
|
$
|
(58,140
|
)
|
|
$
|
1,476,669
|
|
Prepaid expenses and other current assets
|
783,140
|
|
|
(198,692
|
)
|
|
584,448
|
|
|||
Other assets
|
562,696
|
|
|
(340,458
|
)
|
|
222,238
|
|
|||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||||||
Accrued expenses
|
1,398,548
|
|
|
(51,918
|
)
|
|
1,346,630
|
|
|||
Deferred revenue, current
|
3,377,986
|
|
|
113,432
|
|
|
3,491,418
|
|
|||
Deferred revenue, long-term
|
122,727
|
|
|
(14,723
|
)
|
|
108,004
|
|
|||
Income taxes payable, long-term
|
616,102
|
|
|
(7,112
|
)
|
|
608,990
|
|
|||
Deferred income taxes
|
140,498
|
|
|
(88,697
|
)
|
|
51,801
|
|
|||
Retained earnings
|
$
|
14,828,562
|
|
|
$
|
(548,272
|
)
|
|
$
|
14,280,290
|
|
|
Weighted Average
Useful Life (years)
|
Customer contracts and relationships
|
10
|
Purchased technology
|
6
|
Trademarks
|
9
|
Backlog
|
2
|
Acquired rights to use technology
|
10
|
Other
|
4
|
•
|
Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, teams and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include content creators, experience designers, app developers, enthusiasts, students, social media users and creative professionals, as well as marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate on and distribute documents and creative content.
|
•
|
Digital Experience—Our Digital Experience segment provides products, services and solutions for creating, managing, executing, measuring, monetizing and optimizing customer experiences from advertising to commerce. Our customers include marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers, marketing executives, information management and technology executives, product development executives, and sales and support executives.
|
•
|
Publishing—Our Publishing segment addresses market opportunities ranging from the diverse authoring and publishing needs of technical and business publishing to our legacy type and OEM printing businesses. It also includes our web conferencing and document and forms platforms.
|
(dollars in thousands)
|
Digital
Media
|
|
Digital
Experience
|
|
Publishing
|
|
Total
|
||||||||
Fiscal 2019
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
7,706,983
|
|
|
$
|
3,206,169
|
|
|
$
|
258,145
|
|
|
$
|
11,171,297
|
|
Cost of revenue
|
289,639
|
|
|
1,362,886
|
|
|
20,195
|
|
|
1,672,720
|
|
||||
Gross profit
|
$
|
7,417,344
|
|
|
$
|
1,843,283
|
|
|
$
|
237,950
|
|
|
$
|
9,498,577
|
|
Gross profit as a percentage of revenue
|
96
|
%
|
|
57
|
%
|
|
92
|
%
|
|
85
|
%
|
||||
Fiscal 2018
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
6,325,315
|
|
|
$
|
2,443,745
|
|
|
$
|
260,948
|
|
|
$
|
9,030,008
|
|
Cost of revenue
|
249,386
|
|
|
922,414
|
|
|
23,199
|
|
|
1,194,999
|
|
||||
Gross profit
|
$
|
6,075,929
|
|
|
$
|
1,521,331
|
|
|
$
|
237,749
|
|
|
$
|
7,835,009
|
|
Gross profit as a percentage of revenue
|
96
|
%
|
|
62
|
%
|
|
91
|
%
|
|
87
|
%
|
||||
Fiscal 2017
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
5,010,579
|
|
|
$
|
2,030,324
|
|
|
$
|
260,602
|
|
|
$
|
7,301,505
|
|
Cost of revenue
|
239,994
|
|
|
747,005
|
|
|
23,492
|
|
|
1,010,491
|
|
||||
Gross profit
|
$
|
4,770,585
|
|
|
$
|
1,283,319
|
|
|
$
|
237,110
|
|
|
$
|
6,291,014
|
|
Gross profit as a percentage of revenue
|
95
|
%
|
|
63
|
%
|
|
91
|
%
|
|
86
|
%
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Americas:
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
5,904,185
|
|
|
$
|
4,632,469
|
|
|
$
|
3,830,845
|
|
Other
|
|
601,721
|
|
|
484,296
|
|
|
385,686
|
|
|||
Total Americas
|
|
6,505,906
|
|
|
5,116,765
|
|
|
4,216,531
|
|
|||
EMEA
|
|
2,975,243
|
|
|
2,550,062
|
|
|
1,985,105
|
|
|||
APAC:
|
|
|
|
|
|
|
||||||
Japan
|
|
751,542
|
|
|
609,361
|
|
|
524,254
|
|
|||
Other
|
|
938,606
|
|
|
753,820
|
|
|
575,615
|
|
|||
Total APAC
|
|
1,690,148
|
|
|
1,363,181
|
|
|
1,099,869
|
|
|||
Revenue
|
|
$
|
11,171,297
|
|
|
$
|
9,030,008
|
|
|
$
|
7,301,505
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Creative Cloud
|
|
$
|
6,482,345
|
|
|
$
|
5,343,498
|
|
|
$
|
4,173,964
|
|
Document Cloud
|
|
1,224,638
|
|
|
981,817
|
|
|
836,615
|
|
|||
Total
|
|
$
|
7,706,983
|
|
|
$
|
6,325,315
|
|
|
$
|
5,010,579
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Digital Media
|
|
$
|
7,208,238
|
|
|
$
|
5,857,700
|
|
|
$
|
4,480,745
|
|
Digital Experience
|
|
2,670,748
|
|
|
1,949,185
|
|
|
1,552,536
|
|
|||
Publishing
|
|
115,477
|
|
|
115,267
|
|
|
100,588
|
|
|||
Total
|
|
$
|
9,994,463
|
|
|
$
|
7,922,152
|
|
|
$
|
6,133,869
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
|
$
|
14,981
|
|
|
$
|
9,151
|
|
|
$
|
6,214
|
|
Increase due to acquisition
|
|
10
|
|
|
5,602
|
|
|
2,391
|
|
|||
Charged to operating expenses
|
|
5,324
|
|
|
5,962
|
|
|
4,411
|
|
|||
Deductions(1)
|
|
(10,665
|
)
|
|
(5,734
|
)
|
|
(3,865
|
)
|
|||
Ending balance
|
|
$
|
9,650
|
|
|
$
|
14,981
|
|
|
$
|
9,151
|
|
(1)
|
Deductions related to the allowance for doubtful accounts represent amounts written off against the allowance, less recoveries.
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
|
$
|
25,425
|
|
|
$
|
22,006
|
|
|
$
|
23,096
|
|
Impacts of adoption of the new revenue standard
|
|
(14,733
|
)
|
|
—
|
|
|
—
|
|
|||
Amount charged to revenue
|
|
18,276
|
|
|
65,241
|
|
|
61,031
|
|
|||
Actual returns
|
|
(22,236
|
)
|
|
(61,822
|
)
|
|
(62,121
|
)
|
|||
Ending balance
|
|
$
|
6,732
|
|
|
$
|
25,425
|
|
|
$
|
22,006
|
|
(in thousands)
|
Amount
|
|
Weighted Average Useful Life (years)
|
||
Customer contracts and relationships
|
$
|
577,500
|
|
|
11
|
Purchased technology
|
444,500
|
|
|
7
|
|
Backlog
|
105,500
|
|
|
2
|
|
Non-competition agreements
|
12,100
|
|
|
2
|
|
Trademarks
|
328,500
|
|
|
9
|
|
Total identifiable intangible assets
|
1,468,100
|
|
|
|
|
Net liabilities assumed
|
(194,588
|
)
|
|
N/A
|
|
Goodwill (1)
|
3,459,256
|
|
|
N/A
|
|
Total purchase price
|
$
|
4,732,768
|
|
|
|
(1)
|
Non-deductible for tax-purposes.
|
(in thousands)
|
2018
|
|
2017
|
||||
Net revenues
|
$
|
9,338,790
|
|
|
$
|
7,568,713
|
|
Net income
|
$
|
2,362,238
|
|
|
$
|
1,404,864
|
|
(in thousands)
|
Amount
|
|
Weighted Average Useful Life (years)
|
||
Customer contracts and relationships
|
$
|
208,000
|
|
|
8
|
Purchased technology
|
84,200
|
|
|
5
|
|
In-process research and development (1)
|
39,100
|
|
|
N/A
|
|
Trademarks
|
21,100
|
|
|
3
|
|
Other intangibles
|
43,400
|
|
|
3
|
|
Total identifiable intangible assets
|
395,800
|
|
|
|
|
Net liabilities assumed
|
(68,182
|
)
|
|
N/A
|
|
Goodwill (2)
|
1,316,983
|
|
|
N/A
|
|
Total purchase price
|
$
|
1,644,601
|
|
|
|
(1)
|
Capitalized as purchased technology and are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Subsequent to the acquisition, the associated in-process research and development efforts for certain projects were completed and the rest were abandoned. The respective related amortization and write-off were each immaterial.
|
(2)
|
Non-deductible for tax purposes.
|
(in thousands)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
466,941
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
466,941
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
45,703
|
|
|
2
|
|
|
(1
|
)
|
|
45,704
|
|
||||
Money market mutual funds
|
2,049,057
|
|
|
—
|
|
|
—
|
|
|
2,049,057
|
|
||||
Time deposits
|
88,519
|
|
|
—
|
|
|
—
|
|
|
88,519
|
|
||||
Total cash equivalents
|
2,183,279
|
|
|
2
|
|
|
(1
|
)
|
|
2,183,280
|
|
||||
Total cash and cash equivalents
|
2,650,220
|
|
|
2
|
|
|
(1
|
)
|
|
2,650,221
|
|
||||
Short-term fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
88,584
|
|
|
146
|
|
|
(9
|
)
|
|
88,721
|
|
||||
Corporate debt securities
|
1,408,332
|
|
|
4,251
|
|
|
(252
|
)
|
|
1,412,331
|
|
||||
Municipal securities
|
17,642
|
|
|
67
|
|
|
—
|
|
|
17,709
|
|
||||
U.S. Treasury securities
|
7,992
|
|
|
2
|
|
|
—
|
|
|
7,994
|
|
||||
Total short-term investments
|
1,522,550
|
|
|
4,466
|
|
|
(261
|
)
|
|
1,526,755
|
|
||||
Total cash, cash equivalents and short-term investments
|
$
|
4,172,770
|
|
|
$
|
4,468
|
|
|
$
|
(262
|
)
|
|
$
|
4,176,976
|
|
(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
|
|
(in thousands)
|
2019
|
|
2018
|
||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||
Corporate debt securities
|
$
|
235,155
|
|
|
$
|
(183
|
)
|
|
$
|
538,109
|
|
|
$
|
(7,966
|
)
|
Asset-backed securities
|
6,651
|
|
|
(5
|
)
|
|
6,696
|
|
|
(54
|
)
|
||||
Municipal securities
|
3,305
|
|
|
—
|
|
|
6,599
|
|
|
(81
|
)
|
||||
Total
|
$
|
245,111
|
|
|
$
|
(188
|
)
|
|
$
|
551,404
|
|
|
$
|
(8,101
|
)
|
(in thousands)
|
2019
|
|
2018
|
||||||||||||
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||
Corporate debt securities
|
$
|
44,300
|
|
|
$
|
(70
|
)
|
|
$
|
969,701
|
|
|
$
|
(16,730
|
)
|
Asset-backed securities
|
6,754
|
|
|
(4
|
)
|
|
34,812
|
|
|
(313
|
)
|
||||
Municipal securities
|
—
|
|
|
—
|
|
|
11,532
|
|
|
(205
|
)
|
||||
Foreign government securities
|
—
|
|
|
—
|
|
|
4,154
|
|
|
(24
|
)
|
||||
Total
|
$
|
51,054
|
|
|
$
|
(74
|
)
|
|
$
|
1,020,199
|
|
|
$
|
(17,272
|
)
|
(in thousands)
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due within one year
|
$
|
928,472
|
|
|
$
|
929,616
|
|
Due between one and two years
|
394,436
|
|
|
395,917
|
|
||
Due between two and three years
|
179,468
|
|
|
180,867
|
|
||
Due after three years
|
20,174
|
|
|
20,355
|
|
||
Total
|
$
|
1,522,550
|
|
|
$
|
1,526,755
|
|
(in thousands)
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
||||||||
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
$
|
45,704
|
|
|
$
|
—
|
|
|
$
|
45,704
|
|
|
$
|
—
|
|
Money market mutual funds
|
2,049,057
|
|
|
2,049,057
|
|
|
—
|
|
|
—
|
|
||||
Time deposits
|
88,519
|
|
|
88,519
|
|
|
—
|
|
|
—
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
88,721
|
|
|
—
|
|
|
88,721
|
|
|
—
|
|
||||
Corporate debt securities
|
1,412,331
|
|
|
—
|
|
|
1,412,331
|
|
|
—
|
|
||||
Municipal securities
|
17,709
|
|
|
—
|
|
|
17,709
|
|
|
—
|
|
||||
U.S. Treasury securities
|
7,994
|
|
|
—
|
|
|
7,994
|
|
|
—
|
|
||||
Prepaid expenses and other current assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency derivatives
|
28,829
|
|
|
—
|
|
|
28,829
|
|
|
—
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred compensation plan assets
|
93,776
|
|
|
4,348
|
|
|
89,428
|
|
|
—
|
|
||||
Total assets
|
$
|
3,832,640
|
|
|
$
|
2,141,924
|
|
|
$
|
1,690,716
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Treasury lock derivatives
|
$
|
29,652
|
|
|
$
|
—
|
|
|
$
|
29,652
|
|
|
$
|
—
|
|
Foreign currency derivatives
|
2,671
|
|
|
—
|
|
|
2,671
|
|
|
—
|
|
||||
Interest rate swap derivatives
|
208
|
|
|
—
|
|
|
208
|
|
|
—
|
|
||||
Total liabilities
|
$
|
32,531
|
|
|
$
|
—
|
|
|
$
|
32,531
|
|
|
$
|
—
|
|
(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
|
|
|
$
|
—
|
|
(in thousands)
|
2019
|
|
2018
|
||||||||||||
|
Fair Value
Asset
Derivatives
|
|
Fair Value
Liability
Derivatives
|
|
Fair Value
Asset
Derivatives
|
|
Fair Value
Liability
Derivatives
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange option contracts (1) (2)
|
$
|
25,605
|
|
|
$
|
—
|
|
|
$
|
40,191
|
|
|
$
|
—
|
|
Treasury lock (1)
|
—
|
|
|
29,652
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swap (3)
|
—
|
|
|
208
|
|
|
—
|
|
|
9,744
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts (1)
|
3,224
|
|
|
2,671
|
|
|
4,068
|
|
|
816
|
|
||||
Total derivatives
|
$
|
28,829
|
|
|
$
|
32,531
|
|
|
$
|
44,259
|
|
|
$
|
10,560
|
|
(1)
|
Fair value asset derivatives included in prepaid expenses and other current assets and fair value liability derivatives included in accrued expenses on our Consolidated Balance Sheets.
|
(2)
|
Hedging effectiveness expected to be recognized to income within the next 18 months, of which $13.2 million is expected within the next 12 months.
|
(3)
|
Included in accrued expenses and other liabilities on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018, respectively.
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||
|
Foreign
Exchange
Option
Contracts
|
|
Foreign
Exchange
Forward
Contracts
|
|
Treasury Lock
|
|
Foreign
Exchange
Option
Contracts
|
|
Foreign
Exchange
Forward
Contracts
|
|
Foreign
Exchange
Option
Contracts
|
|
Foreign
Exchange
Forward
Contracts
|
||||||||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net gain (loss) recognized in OCI, net of tax (1)
|
$
|
16,526
|
|
|
$
|
—
|
|
|
$
|
(22,684
|
)
|
|
$
|
74,080
|
|
|
$
|
—
|
|
|
$
|
6,917
|
|
|
$
|
—
|
|
Net gain (loss) reclassified from accumulated OCI into income, net of tax (2) (4)
|
39,111
|
|
|
—
|
|
|
(1,228
|
)
|
|
48,647
|
|
|
—
|
|
|
32,852
|
|
|
—
|
|
|||||||
Net gain (loss) recognized in income (3) (4)
|
(24,269
|
)
|
|
—
|
|
|
—
|
|
|
(41,179
|
)
|
|
—
|
|
|
(30,243
|
)
|
|
—
|
|
|||||||
Derivatives not designated as hedging relationships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net gain (loss) recognized in revenue
|
761
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net gain (loss) recognized in interest and other income (expense), net
|
$
|
—
|
|
|
$
|
4,229
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,529
|
|
|
$
|
—
|
|
|
$
|
6,586
|
|
(1)
|
Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).
|
(2)
|
Effective portion of the foreign currency and Treasury lock cash flow hedges classified as revenue and interest expense, respectively.
|
(3)
|
Amount excluded from effectiveness testing and ineffective portion classified in interest and other income (expense), net.
|
(4)
|
Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income.
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Gain (loss) on foreign currency assets and liabilities:
|
|
|
|
|
|
|
||||||
Net realized gain (loss) recognized in other income
|
|
$
|
(14,420
|
)
|
|
$
|
882
|
|
|
$
|
(6,142
|
)
|
Net unrealized gain (loss) recognized in other income
|
|
8,050
|
|
|
(3,843
|
)
|
|
(907
|
)
|
|||
|
|
(6,370
|
)
|
|
(2,961
|
)
|
|
(7,049
|
)
|
|||
Gain (loss) on hedges of foreign currency assets and liabilities:
|
|
|
|
|
|
|
||||||
Net realized gain (loss) recognized in other income
|
|
6,928
|
|
|
(2,042
|
)
|
|
5,415
|
|
|||
Net unrealized gain (loss) recognized in other income
|
|
(2,699
|
)
|
|
3,571
|
|
|
1,171
|
|
|||
|
|
4,229
|
|
|
1,529
|
|
|
6,586
|
|
|||
Net gain (loss) recognized in interest and other income (expense), net
|
|
$
|
(2,141
|
)
|
|
$
|
(1,432
|
)
|
|
$
|
(463
|
)
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Computers and other equipment
|
|
$
|
1,424,368
|
|
|
$
|
1,239,033
|
|
Buildings
|
|
482,797
|
|
|
485,024
|
|
||
Building improvements
|
|
307,396
|
|
|
285,564
|
|
||
Leasehold improvements
|
|
246,244
|
|
|
181,990
|
|
||
Land
|
|
144,871
|
|
|
145,065
|
|
||
Furniture and fixtures
|
|
143,739
|
|
|
121,206
|
|
||
Capital projects in-progress
|
|
112,232
|
|
|
23,026
|
|
||
Total
|
|
2,861,647
|
|
|
2,480,908
|
|
||
Less accumulated depreciation and amortization
|
|
(1,568,632
|
)
|
|
(1,405,836
|
)
|
||
Property and equipment, net
|
|
$
|
1,293,015
|
|
|
$
|
1,075,072
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Americas:
|
|
|
|
|
||||
United States
|
|
$
|
1,126,406
|
|
|
$
|
882,145
|
|
Other
|
|
2,735
|
|
|
30,475
|
|
||
Total Americas
|
|
1,129,141
|
|
|
912,620
|
|
||
EMEA
|
|
54,394
|
|
|
51,033
|
|
||
APAC
|
|
109,480
|
|
|
111,419
|
|
||
Property and equipment, net
|
|
$
|
1,293,015
|
|
|
$
|
1,075,072
|
|
(in thousands)
|
|
2017
|
|
Acquisitions
|
|
Other(1)
|
|
2018
|
|
Acquisitions
|
|
Other(1)
|
|
2019
|
||||||||||||||
Digital Media
|
|
$
|
2,724,747
|
|
|
$
|
15,247
|
|
|
$
|
(2,481
|
)
|
|
$
|
2,737,513
|
|
|
$
|
125,899
|
|
|
$
|
(914
|
)
|
|
$
|
2,862,498
|
|
Digital Experience
|
|
2,838,390
|
|
|
4,775,969
|
|
|
(29,246
|
)
|
|
7,585,113
|
|
|
270
|
|
|
(15,103
|
)
|
|
7,570,280
|
|
|||||||
Publishing
|
|
258,424
|
|
|
—
|
|
|
(2
|
)
|
|
258,422
|
|
|
—
|
|
|
(1
|
)
|
|
258,421
|
|
|||||||
Goodwill
|
|
$
|
5,821,561
|
|
|
$
|
4,791,216
|
|
|
$
|
(31,729
|
)
|
|
$
|
10,581,048
|
|
|
$
|
126,169
|
|
|
$
|
(16,018
|
)
|
|
$
|
10,691,199
|
|
(1)
|
Amounts primarily consist of foreign currency translation adjustments.
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Digital Media
|
|
$
|
79,483
|
|
|
$
|
68,280
|
|
Digital Experience
|
|
1,640,925
|
|
|
2,000,718
|
|
||
Publishing
|
|
157
|
|
|
3
|
|
||
Other intangibles, net
|
|
$
|
1,720,565
|
|
|
$
|
2,069,001
|
|
(in thousands)
|
2019
|
|
2018
|
||||||||||||||||||||
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
|
Cost
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Customer contracts and relationships
|
$
|
1,219,029
|
|
|
$
|
(436,545
|
)
|
|
$
|
782,484
|
|
|
$
|
1,329,432
|
|
|
$
|
(416,176
|
)
|
|
$
|
913,256
|
|
Purchased technology
|
759,111
|
|
|
(223,115
|
)
|
|
535,996
|
|
|
750,286
|
|
|
(118,812
|
)
|
|
631,474
|
|
||||||
Trademarks
|
384,300
|
|
|
(73,546
|
)
|
|
310,754
|
|
|
384,855
|
|
|
(25,968
|
)
|
|
358,887
|
|
||||||
Backlog
|
143,400
|
|
|
(75,570
|
)
|
|
67,830
|
|
|
147,300
|
|
|
(13,299
|
)
|
|
134,001
|
|
||||||
Acquired rights to use technology
|
59,524
|
|
|
(46,823
|
)
|
|
12,701
|
|
|
58,966
|
|
|
(48,770
|
)
|
|
10,196
|
|
||||||
Other
|
23,745
|
|
|
(12,945
|
)
|
|
10,800
|
|
|
51,096
|
|
|
(29,909
|
)
|
|
21,187
|
|
||||||
Other intangibles, net
|
$
|
2,589,109
|
|
|
$
|
(868,544
|
)
|
|
$
|
1,720,565
|
|
|
$
|
2,721,935
|
|
|
$
|
(652,934
|
)
|
|
$
|
2,069,001
|
|
(in thousands)
|
|
Other Intangibles
|
||
2020
|
|
$
|
364,683
|
|
2021
|
|
254,921
|
|
|
2022
|
|
222,810
|
|
|
2023
|
|
214,188
|
|
|
2024
|
|
201,953
|
|
|
Thereafter
|
|
462,010
|
|
|
Total expected amortization expense
|
|
$
|
1,720,565
|
|
(in thousands)
|
2019
|
|
2018
|
||||
Accrued compensation and benefits
|
$
|
317,897
|
|
|
$
|
313,874
|
|
Accrued bonuses
|
222,333
|
|
|
216,007
|
|
||
Accrued media costs
|
117,591
|
|
|
124,849
|
|
||
Accrued building rent
|
98,570
|
|
|
61,544
|
|
||
Taxes payable
|
82,988
|
|
|
57,525
|
|
||
Accrued corporate marketing
|
79,937
|
|
|
66,186
|
|
||
Sales and marketing allowances
|
74,163
|
|
|
44,968
|
|
||
Royalties payable
|
61,938
|
|
|
51,529
|
|
||
Fair value of derivatives
|
32,531
|
|
|
816
|
|
||
Accrued interest expense
|
28,878
|
|
|
29,481
|
|
||
Other
|
281,722
|
|
|
196,406
|
|
||
Accrued expenses
|
$
|
1,398,548
|
|
|
$
|
1,163,185
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
|
$
|
437,603
|
|
|
$
|
542,948
|
|
|
$
|
1,056,156
|
|
Foreign
|
|
2,767,138
|
|
|
2,250,928
|
|
|
1,081,485
|
|
|||
Income before income taxes
|
|
$
|
3,204,741
|
|
|
$
|
2,793,876
|
|
|
$
|
2,137,641
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
||||||
United States federal
|
|
$
|
6,563
|
|
|
$
|
501,272
|
|
|
$
|
298,802
|
|
Foreign
|
|
211,174
|
|
|
140,308
|
|
|
60,962
|
|
|||
State and local
|
|
30,893
|
|
|
28,612
|
|
|
33,578
|
|
|||
Total current
|
|
248,630
|
|
|
670,192
|
|
|
393,342
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|
|||
United States federal
|
|
22,528
|
|
|
(466,113
|
)
|
|
48,905
|
|
|||
Foreign
|
|
(11,675
|
)
|
|
(9,734
|
)
|
|
(4,242
|
)
|
|||
State and local
|
|
(6,200
|
)
|
|
8,757
|
|
|
5,682
|
|
|||
Total deferred
|
|
4,653
|
|
|
(467,090
|
)
|
|
50,345
|
|
|||
Provision for income taxes
|
|
$
|
253,283
|
|
|
$
|
203,102
|
|
|
$
|
443,687
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Computed “expected” tax expense
|
|
$
|
672,996
|
|
|
$
|
620,240
|
|
|
$
|
748,174
|
|
State tax expense, net of federal benefit
|
|
23,510
|
|
|
25,214
|
|
|
25,131
|
|
|||
Tax credits
|
|
(99,772
|
)
|
|
(110,849
|
)
|
|
(38,000
|
)
|
|||
Effects of non-U.S. operations
|
|
(224,214
|
)
|
|
(384,393
|
)
|
|
(215,490
|
)
|
|||
Stock-based compensation, net of tax deduction
|
|
(85,944
|
)
|
|
(95,372
|
)
|
|
(42,512
|
)
|
|||
Resolution of income tax examinations
|
|
(39,291
|
)
|
|
(42,432
|
)
|
|
(31,358
|
)
|
|||
Domestic manufacturing deduction benefit
|
|
—
|
|
|
(13,098
|
)
|
|
(32,200
|
)
|
|||
Impacts of the U.S. Tax Act
|
|
2,955
|
|
|
185,997
|
|
|
—
|
|
|||
Tax charge for licensing acquired company technology to foreign subsidiaries
|
|
—
|
|
|
—
|
|
|
24,771
|
|
|||
Other
|
|
3,043
|
|
|
17,795
|
|
|
5,171
|
|
|||
Provision for income taxes
|
|
$
|
253,283
|
|
|
$
|
203,102
|
|
|
$
|
443,687
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Acquired technology
|
|
$
|
4,568
|
|
|
$
|
9,561
|
|
Reserves and accruals
|
|
53,796
|
|
|
59,100
|
|
||
Deferred revenue
|
|
12,036
|
|
|
37,690
|
|
||
Stock-based compensation
|
|
106,911
|
|
|
89,240
|
|
||
Net operating loss carryforwards of acquired companies
|
|
137,151
|
|
|
209,445
|
|
||
Credit carryforwards
|
|
252,074
|
|
|
173,748
|
|
||
Capitalized expenses
|
|
44,912
|
|
|
19,074
|
|
||
Benefits relating to tax positions
|
|
47,458
|
|
|
51,965
|
|
||
Other
|
|
32,794
|
|
|
37,160
|
|
||
Total gross deferred tax assets
|
|
691,700
|
|
|
686,983
|
|
||
Deferred tax asset valuation allowance
|
|
(244,432
|
)
|
|
(174,496
|
)
|
||
Total deferred tax assets
|
|
447,268
|
|
|
512,487
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
36,458
|
|
|
40,425
|
|
||
Undistributed earnings of foreign subsidiaries
|
|
51,883
|
|
|
17,556
|
|
||
Prepaid expenses
|
|
86,279
|
|
|
—
|
|
||
Acquired intangible assets
|
|
413,146
|
|
|
501,208
|
|
||
Total deferred tax liabilities
|
|
587,766
|
|
|
559,189
|
|
||
Net deferred tax liabilities
|
|
$
|
140,498
|
|
|
$
|
46,702
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Beginning balance
|
|
$
|
196,152
|
|
|
$
|
172,945
|
|
Gross increases in unrecognized tax benefits – prior year tax positions
|
|
14,850
|
|
|
16,191
|
|
||
Gross decreases in unrecognized tax benefits – prior year tax positions
|
|
(2,282
|
)
|
|
(4,000
|
)
|
||
Gross increases in unrecognized tax benefits – current year tax positions
|
|
18,526
|
|
|
60,721
|
|
||
Gross decreases in unrecognized tax benefits – current year tax positions
|
|
(2,879
|
)
|
|
—
|
|
||
Settlements with taxing authorities
|
|
(230
|
)
|
|
—
|
|
||
Lapse of statute of limitations
|
|
(49,813
|
)
|
|
(45,922
|
)
|
||
Foreign exchange gains and losses
|
|
(987
|
)
|
|
(3,783
|
)
|
||
Ending balance
|
|
$
|
173,337
|
|
|
$
|
196,152
|
|
|
2019
|
|
2018
|
|
2017
|
Expected life (in years)
|
0.5 - 2.0
|
|
0.5 - 2.0
|
|
0.5 - 2.0
|
Volatility
|
30% - 35%
|
|
26% - 29%
|
|
22% - 27%
|
Risk free interest rate
|
1.78% - 2.47%
|
|
1.54% - 2.52%
|
|
0.62% - 1.41%
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|||
Beginning outstanding balance
|
8,668
|
|
|
9,304
|
|
|
8,316
|
|
Awarded
|
4,598
|
|
|
4,012
|
|
|
5,018
|
|
Released
|
(3,847
|
)
|
|
(3,988
|
)
|
|
(3,859
|
)
|
Forfeited
|
(785
|
)
|
|
(660
|
)
|
|
(766
|
)
|
Increase due to acquisition
|
—
|
|
|
—
|
|
|
595
|
|
Ending outstanding balance
|
8,634
|
|
|
8,668
|
|
|
9,304
|
|
|
Number of
Shares
(thousands)
|
|
Weighted
Average
Remaining
Contractual
Life
(years)
|
|
Aggregate
Intrinsic
Value(*)
(millions)
|
|||
2019
|
|
|
|
|
|
|||
Restricted stock units outstanding
|
8,634
|
|
|
1.12
|
|
$
|
2,672.6
|
|
Restricted stock units expected to vest
|
7,987
|
|
|
1.05
|
|
$
|
2,472.2
|
|
2018
|
|
|
|
|
|
|
|
|
Restricted stock units outstanding
|
8,668
|
|
|
1.06
|
|
$
|
2,174.7
|
|
Restricted stock units expected to vest
|
8,049
|
|
|
1.01
|
|
$
|
2,019.5
|
|
2017
|
|
|
|
|
|
|||
Restricted stock units outstanding
|
9,304
|
|
|
1.11
|
|
$
|
1,670.2
|
|
Restricted stock units expected to vest
|
8,608
|
|
|
1.05
|
|
$
|
1,545.3
|
|
(*)
|
The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of November 29, 2019, November 30, 2018 and December 1, 2017 were $309.53, $250.89 and $179.52, respectively.
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
|
Shares
Granted (1)
|
|
Maximum
Shares Eligible
to Receive
|
|
Shares
Granted (2)
|
|
Maximum
Shares Eligible
to Receive
|
|
Shares
Granted (3) |
|
Maximum
Shares Eligible to Receive |
||||||
Beginning outstanding balance
|
1,148
|
|
|
2,296
|
|
|
1,534
|
|
|
3,068
|
|
|
1,630
|
|
|
3,261
|
|
Awarded
|
722
|
|
|
614
|
|
|
837
|
|
|
628
|
|
|
1,082
|
|
|
1,040
|
|
Achieved
|
(830
|
)
|
|
(830
|
)
|
|
(1,050
|
)
|
|
(1,053
|
)
|
|
(1,135
|
)
|
|
(1,147
|
)
|
Forfeited
|
(82
|
)
|
|
(164
|
)
|
|
(173
|
)
|
|
(347
|
)
|
|
(43
|
)
|
|
(86
|
)
|
Ending outstanding balance
|
958
|
|
|
1,916
|
|
|
1,148
|
|
|
2,296
|
|
|
1,534
|
|
|
3,068
|
|
(1)
|
Shares awarded during fiscal 2019 include 0.4 million additional shares awarded for the final achievement of the 2016 Performance Share Program which was certified in the first quarter of fiscal 2019. The remaining awarded shares were for the 2019 Performance Share Program. Shares achieved during fiscal 2019 resulted from 200% achievement of target for the 2016 Performance Share Program.
|
(2)
|
Shares awarded during fiscal 2018 include 0.5 million additional shares awarded for the final achievement of the 2015 Performance Share Program which was certified in the first quarter of fiscal 2018. The remaining awarded shares were for the 2018 Performance Share Program. Shares achieved during fiscal 2018 resulted from 200% achievement of target for the 2015 Performance Share Program.
|
(3)
|
Shares awarded during fiscal 2017 include 0.6 million additional shares awarded for the final achievement of the 2014 Performance Share Program which was certified in the first quarter of fiscal 2017. The remaining awarded shares were for the 2017 Performance Share Program. Shares achieved during fiscal 2017 resulted from 198% achievement of target for the 2014 Performance Share Program.
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|||
Annual equity grants to existing directors
|
10
|
|
|
11
|
|
|
18
|
|
Initial equity grants to new directors
|
1
|
|
|
1
|
|
|
—
|
|
(in thousands)
|
Income Statement Classifications
|
||||||||||||||||||||||
|
Cost of
Revenue–
Subscription
|
|
Cost of
Revenue–
Services and Support
|
|
Research and Development
|
|
Sales and
Marketing
|
|
General and Administrative
|
|
Total (1)
|
||||||||||||
Restricted Stock Units and Performance
Share Awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2019
|
$
|
22,822
|
|
|
$
|
18,535
|
|
|
$
|
338,483
|
|
|
$
|
206,371
|
|
|
$
|
98,886
|
|
|
$
|
685,097
|
|
2018
|
$
|
17,515
|
|
|
$
|
12,111
|
|
|
$
|
253,078
|
|
|
$
|
178,548
|
|
|
$
|
77,462
|
|
|
$
|
538,714
|
|
2017
|
$
|
16,792
|
|
|
$
|
9,602
|
|
|
$
|
161,366
|
|
|
$
|
139,047
|
|
|
$
|
77,133
|
|
|
$
|
403,940
|
|
Stock Purchase Rights and Options
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
$
|
5,823
|
|
|
$
|
7,271
|
|
|
$
|
36,663
|
|
|
$
|
42,405
|
|
|
$
|
10,446
|
|
|
$
|
102,608
|
|
2018
|
$
|
4,102
|
|
|
$
|
8,286
|
|
|
$
|
23,918
|
|
|
$
|
27,252
|
|
|
$
|
7,290
|
|
|
$
|
70,848
|
|
2017
|
$
|
180
|
|
|
$
|
6,661
|
|
|
$
|
20,126
|
|
|
$
|
18,592
|
|
|
$
|
4,973
|
|
|
$
|
50,532
|
|
(1)
|
During fiscal 2019, 2018 and 2017, we recorded tax benefits related to stock-based compensation costs of $248.4 million, $222.4 million and $153.2 million, respectively.
|
(in thousands)
|
November 30,
2018 |
|
Increase / Decrease
|
|
Reclassification Adjustments
|
|
November 29,
2019 |
|||||||||
Net unrealized gains / losses on available-for-sale securities:
|
|
|
|
|
|
|
|
|||||||||
Unrealized gains on available-for-sale securities
|
$
|
44
|
|
|
$
|
4,594
|
|
|
$
|
(171
|
)
|
|
$
|
4,467
|
|
|
Unrealized losses on available-for-sale securities
|
(25,374
|
)
|
|
24,815
|
|
|
295
|
|
|
(264
|
)
|
|||||
Total net unrealized gains / losses on available-for-sale securities
|
(25,330
|
)
|
|
29,409
|
|
|
124
|
|
(1
|
)
|
4,203
|
|
||||
Net unrealized gains / losses on derivative instruments designated as hedging instruments
|
21,732
|
|
|
294
|
|
|
(44,334
|
)
|
(2
|
)
|
(22,308
|
)
|
||||
Cumulative foreign currency translation adjustments
|
(144,532
|
)
|
|
(25,397
|
)
|
|
—
|
|
|
(169,929
|
)
|
|||||
Total accumulated other comprehensive income (loss), net of taxes
|
$
|
(148,130
|
)
|
|
$
|
4,306
|
|
|
$
|
(44,210
|
)
|
|
$
|
(188,034
|
)
|
(1)
|
Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net.
|
(2)
|
Reclassification adjustments for gains / losses on foreign currency hedges are classified in revenue and reclassification adjustments for gains / losses on Treasury lock hedges are classified in interest expense.
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Available-for-sale securities:
|
|
|
|
|
|
|
||||||
Unrealized gains / losses
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
663
|
|
Reclassification adjustments
|
|
—
|
|
|
—
|
|
|
(491
|
)
|
|||
Subtotal available-for-sale securities
|
|
—
|
|
|
—
|
|
|
172
|
|
|||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
||||||
Unrealized gains / losses
|
|
6,968
|
|
|
—
|
|
|
—
|
|
|||
Reclassification adjustments
|
|
(383
|
)
|
|
(1,946
|
)
|
|
(732
|
)
|
|||
Subtotal derivatives designated as hedging instruments
|
|
6,585
|
|
|
(1,946
|
)
|
|
(732
|
)
|
|||
Foreign currency translation adjustments
|
|
—
|
|
|
(1,742
|
)
|
|
3,005
|
|
|||
Total taxes, other comprehensive income (loss)
|
|
$
|
6,585
|
|
|
$
|
(3,688
|
)
|
|
$
|
2,445
|
|
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
2,951,458
|
|
|
$
|
2,590,774
|
|
|
$
|
1,693,954
|
|
Shares used to compute basic net income per share
|
|
486,291
|
|
|
490,564
|
|
|
493,632
|
|
|||
Dilutive potential common shares:
|
|
|
|
|
|
|
||||||
Restricted stock units and performance share awards
|
|
4,875
|
|
|
7,142
|
|
|
7,161
|
|
|||
Stock purchase rights and options
|
|
406
|
|
|
137
|
|
|
330
|
|
|||
Shares used to compute diluted net income per share
|
|
491,572
|
|
|
497,843
|
|
|
501,123
|
|
|||
Basic net income per share
|
|
$
|
6.07
|
|
|
$
|
5.28
|
|
|
$
|
3.43
|
|
Diluted net income per share
|
|
$
|
6.00
|
|
|
$
|
5.20
|
|
|
$
|
3.38
|
|
|
|
|
|
|
|
|
||||||
Anti-dilutive potential common shares (1)
|
|
175
|
|
|
209
|
|
|
141
|
|
(1)
|
Potential common stock equivalents not included in the calculation of diluted net income per share as the effect would have been anti-dilutive.
|
(in thousands)
|
|
|
|
Operating Leases
|
||||||||
Fiscal Year
|
|
Purchase
Obligations
|
|
Future
Minimum
Lease
Payments
|
|
Future
Minimum
Sublease
Income
|
||||||
2020
|
|
$
|
545,042
|
|
|
$
|
98,200
|
|
|
$
|
9,523
|
|
2021
|
|
407,528
|
|
|
91,866
|
|
|
9,000
|
|
|||
2022
|
|
528,266
|
|
|
81,493
|
|
|
6,362
|
|
|||
2023
|
|
555,658
|
|
|
68,539
|
|
|
2,327
|
|
|||
2024
|
|
—
|
|
|
60,691
|
|
|
—
|
|
|||
Thereafter
|
|
—
|
|
|
337,903
|
|
|
—
|
|
|||
Total
|
|
$
|
2,036,494
|
|
|
$
|
738,692
|
|
|
$
|
27,212
|
|
(in thousands)
|
2019
|
|
2018
|
||||
Current debt:
|
|
|
|
||||
Term loan
|
$
|
2,249,784
|
|
|
$
|
—
|
|
Notes
|
899,767
|
|
|
—
|
|
||
Fair value of interest rate swap
|
(208
|
)
|
|
—
|
|
||
Current debt
|
3,149,343
|
|
|
—
|
|
||
Long-term debt:
|
|
|
|
||||
Term loan
|
—
|
|
|
2,248,427
|
|
||
Notes
|
988,924
|
|
|
1,886,117
|
|
||
Fair value of interest rate swap
|
—
|
|
|
(9,744
|
)
|
||
Long-term debt
|
988,924
|
|
|
4,124,800
|
|
||
Total carrying value of debt
|
$
|
4,138,267
|
|
|
$
|
4,124,800
|
|
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and other income (expense), net:
|
|
|
|
|
|
||||||
Interest income
|
$
|
68,321
|
|
|
$
|
92,540
|
|
|
$
|
66,069
|
|
Foreign exchange gains (losses)
|
(26,252
|
)
|
|
(42,612
|
)
|
|
(30,705
|
)
|
|||
Realized gains on fixed income investments
|
171
|
|
|
655
|
|
|
1,673
|
|
|||
Realized losses on fixed income investments
|
(295
|
)
|
|
(11,305
|
)
|
|
(725
|
)
|
|||
Other
|
310
|
|
|
258
|
|
|
83
|
|
|||
Interest and other income (expense), net
|
$
|
42,255
|
|
|
$
|
39,536
|
|
|
$
|
36,395
|
|
Interest expense
|
$
|
(157,214
|
)
|
|
$
|
(89,242
|
)
|
|
$
|
(74,402
|
)
|
Investment gains (losses), net:
|
|
|
|
|
|
|
|||||
Realized investment gains
|
$
|
46,141
|
|
|
$
|
6,128
|
|
|
$
|
3,279
|
|
Unrealized investment gains
|
5,572
|
|
|
—
|
|
|
4,274
|
|
|||
Realized investment losses
|
(134
|
)
|
|
—
|
|
|
—
|
|
|||
Unrealized investment losses
|
—
|
|
|
(2,915
|
)
|
|
—
|
|
|||
Investment gains (losses), net
|
$
|
51,579
|
|
|
$
|
3,213
|
|
|
$
|
7,553
|
|
Non-operating income (expense), net
|
$
|
(63,380
|
)
|
|
$
|
(46,493
|
)
|
|
$
|
(30,454
|
)
|
|
2019
|
||||||||||||||
(in thousands, except per share data)
|
Quarter Ended
|
||||||||||||||
|
March 1
|
|
May 31
|
|
August 30
|
|
November 29
|
||||||||
Revenue
|
$
|
2,600,946
|
|
|
$
|
2,744,280
|
|
|
$
|
2,834,126
|
|
|
$
|
2,991,945
|
|
Gross profit
|
$
|
2,203,660
|
|
|
$
|
2,336,792
|
|
|
$
|
2,418,163
|
|
|
$
|
2,539,962
|
|
Income before income taxes
|
$
|
702,334
|
|
|
$
|
710,772
|
|
|
$
|
834,488
|
|
|
$
|
957,147
|
|
Net income
|
$
|
674,241
|
|
|
$
|
632,593
|
|
|
$
|
792,763
|
|
|
$
|
851,861
|
|
Basic net income per share
|
$
|
1.38
|
|
|
$
|
1.30
|
|
|
$
|
1.63
|
|
|
$
|
1.76
|
|
Diluted net income per share
|
$
|
1.36
|
|
|
$
|
1.29
|
|
|
$
|
1.61
|
|
|
$
|
1.74
|
|
|
2018
|
||||||||||||||
(in thousands, except per share data)
|
Quarter Ended
|
||||||||||||||
|
March 2
|
|
June 1
|
|
August 31
|
|
November 30
|
||||||||
Revenue
|
$
|
2,078,947
|
|
|
$
|
2,195,360
|
|
|
$
|
2,291,076
|
|
|
$
|
2,464,625
|
|
Gross profit
|
$
|
1,820,045
|
|
|
$
|
1,914,016
|
|
|
$
|
1,995,584
|
|
|
$
|
2,105,364
|
|
Income before income taxes
|
$
|
702,502
|
|
|
$
|
690,799
|
|
|
$
|
701,358
|
|
|
$
|
699,217
|
|
Net income
|
$
|
583,076
|
|
|
$
|
663,167
|
|
|
$
|
666,291
|
|
|
$
|
678,240
|
|
Basic net income per share
|
$
|
1.18
|
|
|
$
|
1.35
|
|
|
$
|
1.36
|
|
|
$
|
1.39
|
|
Diluted net income per share
|
$
|
1.17
|
|
|
$
|
1.33
|
|
|
$
|
1.34
|
|
|
$
|
1.37
|
|
1.
|
Financial Statements. See Index to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K.
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit Number
|
|
SEC File No.
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
2.1
|
|
|
|
8-K
|
|
9/21/18
|
|
2.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
3.1
|
|
|
|
8-K
|
|
4/26/11
|
|
3.3
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
3.2
|
|
|
|
8-K
|
|
10/9/18
|
|
3.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
3.3
|
|
|
|
8-K
|
|
10/9/18
|
|
3.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
4.1
|
|
|
|
10-K
|
|
1/25/19
|
|
4.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
4.2
|
|
|
|
S-3
|
|
2/26/16
|
|
4.1
|
|
|
333-209764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
4.3
|
|
|
|
8-K
|
|
1/26/10
|
|
4.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit Number
|
|
SEC File No.
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
4.4
|
|
|
|
8-K
|
|
1/26/15
|
|
4.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
4.5
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.1
|
|
|
|
10-Q
|
|
6/29/16
|
|
10.3
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2A
|
|
|
|
8-K
|
|
4/13/18
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2B
|
|
|
|
8-K
|
|
12/20/10
|
|
99.4
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2C
|
|
|
|
8-K
|
|
1/26/18
|
|
10.6
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2D
|
|
|
|
8-K
|
|
1/28/19
|
|
10.5
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2E
|
|
|
|
10-Q
|
|
10/7/04
|
|
10.11
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2F
|
|
|
|
8-K
|
|
1/27/17
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2G
|
|
|
|
8-K
|
|
1/27/17
|
|
10.3
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2H
|
|
|
|
8-K
|
|
1/26/18
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2I
|
|
|
|
8-K
|
|
1/26/18
|
|
10.3
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2J
|
|
|
|
8-K
|
|
1/28/19
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.2K
|
|
|
|
8-K
|
|
1/28/19
|
|
10.3
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.3A
|
|
|
|
8-K
|
|
4/12/19
|
|
10.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.3B
|
|
|
|
10-Q
|
|
6/26/19
|
|
10.35B
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit Number
|
|
SEC File No.
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.3C
|
|
|
|
10-Q
|
|
6/26/19
|
|
10.35C
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.3D
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.4
|
|
|
|
8-K
|
|
12/11/14
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.5
|
|
|
|
10-Q
|
|
6/26/09
|
|
10.12
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.6A
|
|
|
|
10-K
|
|
1/20/15
|
|
10.19
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.6B
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.7
|
|
|
|
8-K
|
|
10/19/18
|
|
10.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.8
|
|
|
|
8-K
|
|
10/19/18
|
|
10.2
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.9
|
|
|
|
8-K
|
|
12/14/17
|
|
10.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.10
|
|
|
|
8-K
|
|
1/28/19
|
|
10.4
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
10.11
|
|
|
|
8-K
|
|
1/24/19
|
|
10.1
|
|
|
000-15175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
21
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
23.1
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
24.1
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
31.1
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit Number
|
|
SEC File No.
|
|
Filed
Herewith
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
31.2
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
32.1
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
32.2
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.INS
|
|
|
Inline XBRL Instance
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.SCH
|
|
|
Inline XBRL Taxonomy Extension Schema
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.CAL
|
|
|
Inline XBRL Taxonomy Extension Calculation
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.LAB
|
|
|
Inline XBRL Taxonomy Extension Labels
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.PRE
|
|
|
Inline XBRL Taxonomy Extension Presentation
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
101.DEF
|
|
|
Inline XBRL Taxonomy Extension Definition
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
104
|
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Compensatory plan or arrangement.
|
|
|
|
†
|
|
The certifications attached as Exhibits 32.1 and 32.2 that accompany this Annual Report on Form 10-K, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Adobe Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-K, irrespective of any general incorporation language contained in such filing.
|
|
|
|
|
ADOBE INC.
|
|
|
|
|
|
By:
|
/s/ JOHN MURPHY
|
|
|
John Murphy
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
/s/ SHANTANU NARAYEN
|
|
|
|
January 21, 2020
|
Shantanu Narayen
|
|
Chairman of the Board of Directors,
President and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ JOHN MURPHY
|
|
|
|
January 21, 2020
|
John Murphy
|
|
Executive Vice President, Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ MARK GARFIELD
|
|
|
|
January 21, 2020
|
Mark Garfield
|
|
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ JAMES DALEY
|
|
|
|
January 21, 2020
|
James Daley
|
|
Director
|
|
|
|
|
|
|
|
/s/ AMY BANSE
|
|
|
|
January 21, 2020
|
Amy Banse
|
|
Director
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ FRANK CALDERONI
|
|
|
|
January 21, 2020
|
Frank Calderoni
|
|
Director
|
|
|
|
|
|
|
|
/s/ LAURA DESMOND
|
|
|
|
January 21, 2020
|
Laura Desmond
|
|
Director
|
|
|
|
|
|
|
|
/s/ CHARLES GESCHKE
|
|
|
|
January 21, 2020
|
Charles Geschke
|
|
Director
|
|
|
|
|
|
|
|
/s/ KATHLEEN OBERG
|
|
|
|
January 21, 2020
|
Kathleen Oberg
|
|
Director
|
|
|
|
|
|
|
|
/s/ DHEERAJ PANDEY
|
|
|
|
January 21, 2020
|
Dheeraj Pandey
|
|
Director
|
|
|
|
|
|
|
|
/s/ DAVID RICKS
|
|
|
|
January 21, 2020
|
David Ricks
|
|
Director
|
|
|
|
|
|
|
|
/s/ DAN ROSENSWEIG
|
|
|
|
January 21, 2020
|
Dan Rosensweig
|
|
Director
|
|
|
|
|
|
|
|
/s/ JOHN WARNOCK
|
|
|
|
January 21, 2020
|
John Warnock
|
|
Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
the business combination or the transaction which resulted in the stockholder becoming an interested stockholder is approved by the board of directors prior to the date the interested stockholder obtained such status;
|
|
|
•
|
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (a) by persons who are directors and also officers and (b) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
|
|
•
|
on or subsequent to such date the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 662/3% of the outstanding voting stock which is not owned by the interested stockholder.
|
Participant:
|
Anil Chakravarthy
|
Date of Grant:
|
January 9, 2020
|
Vesting Commencement Date:
|
January 9, 2020
|
Number of Restricted Stock Units:
|
33,056
|
By:
|
|
|
|
Shantanu Narayen
|
|
|
Chief Executive Officer
|
|
|
|
|
|
Address:
|
345 Park Avenue
|
|
|
San Jose, CA 95110-2704 USA
|
|
|
|
|
|
Signature:
|
|
|
Date:
|
|
2.
|
NUMBER OF RESTRICTED STOCK UNITS AND UNDERLYING SHARES OF STOCK.
|
i.
|
withholding of that number of whole vested shares of Stock otherwise deliverable to you pursuant to this Award Agreement having a Fair Market Value not in excess of the amount of the withholding obligation for Tax-Related Items determined by the Company after considering required withholding rates and to the extent permitted under the Plan, the Company may determine such amount by considering other applicable withholding rates up to the maximum rate applicable in your jurisdiction. For tax purposes, you are deemed to have been issued the full number of shares of Stock subject to the vested Award, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items;
|
ii.
|
withholding from proceeds of the sale of shares of Stock acquired upon vesting/settlement of the Award either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization);
|
iii.
|
tender by you of a payment in cash or check to the Participating Company Group (as applicable) of any amount of the Tax-Related Items;
|
iv.
|
withholding by any Participating Company of any amount of the Tax-Related Items from your wages of any other compensation owed to you by any Participating Company; and/or
|
v.
|
in the event this Award is settled in whole or in part in cash, withholding from the cash to be distributed to you in settlement of this Award.
|
i.
|
the Award and the shares of Stock subject to the Award, and the income from and value of the same, are not part of normal or expected compensation or salary for any purpose;
|
ii.
|
unless otherwise agreed with the Company, the Award and the shares of Stock subject to the Award, and any income from and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of a Participating Company other than the Company; provided, however, that your continued Service shall be required for vesting of the Restricted Stock Units as may be set forth in the Grant Notice and this Award Agreement; and
|
iii.
|
the Participating Company Group shall not be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Award or of any amounts due to you pursuant to the settlement of the Award or the subsequent sale of any shares of Stock acquired upon settlement.
|
2.
|
The following new subsection (c) is added at the end of Section 3.1:
|
3.
|
The following new subsection (c) is added at the end of Section 3.2:
|
Dated:
|
12/10/2019
|
|
By
|
|
|
|
|
|
Rosemary Arriada-Keiper
|
|
|
|
|
VP, Total Rewards
|
Subsidiary Legal Name
|
|
Jurisdiction of Incorporation/Formation
|
The Americas:
|
|
|
Adobe Assets, LLC
|
|
Delaware
|
Adobe Canada Services Corporation
|
|
Canada
|
Adobe Colombia SAS
|
|
Colombia
|
Adobe Labs, Inc.
|
|
Delaware
|
Adobe Systems Brasil Limitada
|
|
Brazil
|
Adobe Systems Canada Inc.
|
|
Canada
|
Adobe Systems Federal LLC
|
|
Delaware
|
Adobe Systems Software Chile Limitada
|
|
Chile
|
Adobe Visual Sciences LLC
|
|
Delaware
|
Allegorithmic, Incorporated
|
|
Delaware
|
Behance, Inc.
|
|
Delaware
|
Bizible, Inc.
|
|
Washington
|
Fotolia Dutch Holding LLC
|
|
Delaware
|
Fotolia LLC
|
|
Delaware
|
Les Logiciels Allegorithmic Inc.
|
|
Canada
|
MagentoTech Inc.
|
|
Delaware
|
MagentoTech LLC
|
|
Delaware
|
Marketo Canada Corporation
|
|
Canada
|
Marketo, Inc.
|
|
Delaware
|
Milestone Holdco, LLC
|
|
Delaware
|
Milestone Intermediate Holdings, Inc.
|
|
Delaware
|
Milestone Topco, Inc.
|
|
Delaware
|
Omniture LLC
|
|
Delaware
|
ToutApp, Inc.
|
|
Delaware
|
TubeMogul, Inc.
|
|
Delaware
|
TubeMogul Latin America Holdings LLC
|
|
Delaware
|
Visual Sciences Technologies, LLC
|
|
Delaware
|
X.commerce, Inc.
|
|
Delaware
|
Europe:
|
|
|
Adobe Research (Schweiz) AG
|
|
Switzerland
|
Adobe Software Trading Company Limited
|
|
Ireland
|
Adobe Systems (Schweiz) GmbH
|
|
Switzerland
|
Adobe Systems Belgium BVBA
|
|
Belgium
|
Adobe Systems Benelux B.V.
|
|
The Netherlands
|
Adobe Systems Danmark ApS
|
|
Denmark
|
Adobe Systems Engineering GmbH
|
|
Federal Republic of Germany
|
Adobe Systems Europe Limited.
|
|
United Kingdom
|
Adobe Systems France SAS
|
|
France
|
Adobe Systems GmbH
|
|
Federal Republic of Germany
|
Adobe Systems Holding Company Limited
|
|
Ireland
|
Subsidiary Legal Name
|
|
Jurisdiction of Incorporation/Formation
|
Adobe Systems Iberica SL
|
|
Spain
|
Adobe Systems Italia SRL
|
|
Italy
|
Adobe Systems Nordic AB
|
|
Sweden
|
Adobe Systems Norge AS
|
|
Norway
|
Adobe Systems Romania SRL
|
|
Romania
|
Adobe Systems s.r.o.
|
|
Czech Republic
|
Adobe Systems Software Ireland Limited
|
|
Ireland
|
Adobe Technologies International, S.L.
|
|
Spain
|
Allegorithmic SAS
|
|
France
|
Fotolia Netherlands Cooperatief U.A.
|
|
The Netherlands
|
ICS “Adobe Systems” S.R.L.
|
|
Republic of Moldova
|
LLC "TubeMogul Ukraine"
|
|
Ukraine
|
LLC "X.Commerce Development Center"
|
|
Ukraine
|
MagenireCo Limited
|
|
Ireland
|
Magento Commerce International Limited
|
|
Ireland
|
Magento Ireland Limited
|
|
Ireland
|
Marketo EMEA, Limited
|
|
Ireland
|
Marketo International, Unlimited
|
|
Ireland
|
Marketo Solutions Limited
|
|
United Kingdom
|
Africa:
|
|
|
Adobe Systems South Africa Proprietary Limited
|
|
South Africa
|
Asia:
|
|
|
Adobe Software (Shanghai) Company Limited
|
|
China
|
Adobe Systems Co., Ltd.
|
|
Japan
|
Adobe Systems Hong Kong Limited
|
|
Hong Kong
|
Adobe Systems India Private Limited.
|
|
India
|
Adobe Systems Korea Ltd. .
|
|
Korea
|
Adobe Systems New Zealand Limited.
|
|
New Zealand
|
Adobe Systems Pte. Ltd.
|
|
Singapore
|
Adobe Systems Pty Ltd.
|
|
Australia
|
Adobe Systems Software (Beijing) Co., Ltd.
|
|
China
|
Business Catalyst Systems Pty Ltd.
|
|
Australia
|
Marketo Australia Pty Ltd
|
|
Australia
|
TubeMogul Information Technology (Chengdu) Co., Ltd.
|
|
China
|
Middle East:
|
|
|
Adobe Systems Israel Ltd.
|
|
Israel
|
Marketo Solutions Ltd.
|
|
Israel
|
Shopial Ltd.
|
|
Israel
|
(*)
|
As of November 29, 2019
|
1.
|
I have reviewed this report on Form 10-K of Adobe Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: January 21, 2020
|
/s/ SHANTANU NARAYEN
|
|
Shantanu Narayen
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-K of Adobe Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: January 21, 2020
|
/s/ JOHN MURPHY
|
|
John Murphy
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
(1)
|
The Report, to which this certification is attached as Exhibit 32.1, fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Dated: January 21, 2020
|
/s/ SHANTANU NARAYEN
|
|
Shantanu Narayen
|
|
President and Chief Executive Officer
|
(1)
|
The Report, to which this certification is attached as Exhibit 32.2, fully complies with the requirements of section 13(a) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
Dated: January 21, 2020
|
/s/ JOHN MURPHY
|
|
John Murphy
|
|
Executive Vice President and
|
|
Chief Financial Officer
|