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Stockholders' Equity
 6 Months Ended
Jun. 03, 2016
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
STOCKHOLDERS’ EQUITY
Retained Earnings
The changes in retained earnings for the six months ended June 3, 2016 were as follows (in thousands): 
Balance as of November 27, 2015
$
7,253,431

Net income
498,381

Re-issuance of treasury stock
(307,697
)
Balance as of June 3, 2016
$
7,444,115


We account for treasury stock under the cost method. When treasury stock is re-issued at a price higher than its cost, the difference is recorded as a component of additional paid-in-capital in our Condensed Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference is recorded as a component of additional paid-in-capital to the extent that there are treasury stock gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Condensed Consolidated Balance Sheets.
The components of accumulated other comprehensive income (loss) and activity, net of related taxes, as of June 3, 2016 were as follows (in thousands):
 
November 27,
2015
 
Increase / Decrease
 
Reclassification Adjustments
 
June 3,
2016
Net unrealized gains on available-for-sale securities:
 
 
 
 
 
 
 
Unrealized gains on available-for-sale securities
$
2,542

 
$
13,022

 
$
(1,545
)
 
$
14,019

Unrealized losses on available-for-sale securities
(7,095
)
 
5,601

 
431

 
(1,063
)
Total net unrealized gains on available-for-sale securities
(4,553
)
 
18,623

 
(1,114
)
(1) 
12,956

Net unrealized gains / losses on derivative instruments designated as hedging instruments
2,915

 
(4,144
)
 
(6,308
)
(2) 
(7,537
)
Cumulative foreign currency translation adjustments
(167,442
)
 
28,976

 
—

 
(138,466
)
Total accumulated other comprehensive income (loss), net of taxes
$
(169,080
)
 
$
43,455

 
$
(7,422
)
 
$
(133,047
)
_________________________________________ 
(1) 
Reclassification adjustments for gains / losses on available-for-sale securities are classified in interest and other income (expense), net.
(2) 
Reclassification adjustments for loss on the interest rate lock agreement and gains / losses on other derivative instruments are classified in interest and other income (expense), net and revenue, respectively.

The following table sets forth the taxes related to each component of other comprehensive income for the three and six months ended June 3, 2016 and May 29, 2015 (in thousands):
 
Three Months
 
Six Months
 
2016
 
2015
 
2016
 
2015
Available-for-sale securities:
 
 
 
 
 
 
 
Unrealized gains / losses
$
(51
)
 
$
(49
)
 
$
(22
)
 
$
(156
)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Unrealized gains / losses on derivative instruments(1)
—

 
—

 
—

 
6,147

Reclassification adjustments(1)
(164
)
 
(157
)
 
(315
)
 
(210
)
Subtotal derivatives designated as hedging instruments
(164
)
 
(157
)
 
(315
)
 
5,937

Foreign currency translation adjustments
711

 
(336
)
 
1,345

 
(2,431
)
Total taxes, other comprehensive income
$
496

 
$
(542
)
 
$
1,008

 
$
3,350

_________________________________________ 
(1)  
Taxes related to derivative instruments other than the interest rate lock agreement were zero based on the tax jurisdiction where these derivative instruments were executed.
Stock Repurchase Program 
To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from stock issuances, we may repurchase shares in the open market or enter into structured repurchase agreements with third parties. In the first quarter of fiscal 2015, the Board of Directors approved a new stock repurchase program granting the Company authority to repurchase up to $2 billion in common stock through the end of fiscal 2017.
During the six months ended June 3, 2016 and May 29, 2015, we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $375 million and $400 million, respectively. The prepayment of $375 million during the six months ended June 3, 2016 was under the current $2 billion authority. Of the prepayment of $400 million during the six months ended May 29, 2015, $200 million was under the current $2 billion authority and $200 million was under the previous $2 billion authority. We enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the Volume Weighted Average Price (“VWAP”) of our common stock over a specified period of time. We only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us.
The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount. During the six months ended June 3, 2016, we repurchased approximately 3.7 million shares at an average price of $90.61 through structured repurchase agreements entered into during fiscal 2015 and the six months ended June 3, 2016. During the six months ended May 29, 2015, we repurchased approximately 5.0 million shares at an average price of $74.44 through structured repurchase agreements entered into during fiscal 2014 and the six months ended May 29, 2015.
For the six months ended June 3, 2016, the prepayments were classified as treasury stock on our Condensed Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by June 3, 2016 were excluded from the computation of earnings per share. As of June 3, 2016, $75.0 million of prepayment remained under this agreement.
Subsequent to June 3, 2016, as part of our $2 billion stock repurchase program, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $400 million. This amount will be classified as treasury stock on our Condensed Consolidated Balance Sheets. Upon completion of the $400 million stock repurchase agreement, $800 million remains under our current authority.