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Acquisitions (Tables)

12 Months Ended

Nov. 29, 2019

Schedule of acquired assets and liabilities

The table below represents the final purchase price allocation to the acquired net tangible and intangible assets of Marketo based on their estimated fair values as of October 31, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to total purchase price, intangible assets, deferred revenue, tax liabilities assumed and their related impact to goodwill.



(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

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⁽¹⁾

Non-deductible for tax-purposes.

Business Acquisition, Pro Forma Information

The financial information in the table below summarizes the combined results of operations of Adobe and Marketo, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on December 3, 2016 or of results that may occur in the future.

The following unaudited pro forma financial information for fiscal 2018 and 2017 combines the historical results for Adobe for the years ended November 30, 2018 and December 1, 2017 and the historical results of Marketo for the period January 1, 2018 through October 31, 2018 and the year ended December 31, 2017, respectively:



(in thousands)	2018		2017
Net revenues	$	9,338,790	$	7,568,713
Net income	$	2,362,238	$	1,404,864

Magento

Business Acquisition

Schedule of acquired assets and liabilities

The table below represents the final purchase price allocation to the acquired net assets of Magento based on their estimated fair values as of June 18, 2018 and the associated estimated useful lives at that date. During fiscal 2019, we recorded immaterial purchase accounting adjustments based on changes to management’s estimates and assumptions in regards to net liabilities assumed and their related impact to goodwill.



(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

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⁽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.