Segments

3 Months Ended

Mar. 03, 2017

Segment Reporting [Abstract]

SEGMENTS

SEGMENTS

We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

Our CEO, the chief operating decision maker, reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments.

We have the following reportable segments:

• Digital Media—Our Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to create, publish, promote and monetize their digital content anywhere. Our customers include traditional content creators, web application developers and digital media professionals, as well as their management in marketing departments and agencies, companies and publishers. Our customers also include knowledge workers who create, collaborate and distribute documents.

• Digital Marketing—Our Digital Marketing segment provides solutions and services for how digital advertising and marketing are created, managed, executed, measured and optimized. Our customers include digital marketers, advertisers, publishers, merchandisers, web analysts, chief marketing officers, chief information officers and chief revenue officers.

• Print and Publishing—Our Print and 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.

Our segment results for the three months ended March 3, 2017 and March 4, 2016 were as follows (dollars in thousands):

	Digital Media			Digital Marketing			Print and Publishing			Total
Three months ended March 3, 2017
Revenue	$	1,138,079		$	501,143		$	42,424		$	1,681,646
Cost of revenue	55,052			180,576			1,709			237,337
Gross profit	$	1,083,027		$	320,567		$	40,715		$	1,444,309
Gross profit as a percentage of revenue	95		%	64		%	96		%	86		%
Three months ended March 4, 2016
Revenue	$	931,718		$	406,246		$	45,371		$	1,383,335
Cost of revenue	54,547			141,917			2,108			198,572
Gross profit	$	877,171		$	264,329		$	43,263		$	1,184,763
Gross profit as a percentage of revenue	94		%	65		%	95		%	86		%