XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Stockholders' Equity | 9 Months Ended
--- | ---
Sep. 01, 2017
Stockholders' Equity Note [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Retained Earnings The changes in retained earnings for the nine months ended September 1, 2017 were as follows (in thousands):
Balance as of December 2, 2016 | $ | 8,114,517 |
Net income | 1,192,405 |
Reissuance of treasury stock | (234,601 | )
Balance as of September 1, 2017 | $ | 9,072,321 |
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 September 1, 2017 were as follows (in thousands):
| December 2, 2016 |  | Increase / Decrease |  | Reclassification Adjustments |  | September 1, 2017
Net unrealized gains / losses on available-for-sale securities: |  |  |  |  |  |  |
Unrealized gains on available-for-sale securities | $ | 3,499 |  |  | $ | 6,872 |  |  | $ | (1,224 | ) |  | $ | 9,147 |
Unrealized losses on available-for-sale securities | (11,565 | ) |  | 6,362 |  |  | 330 |  |  | (4,873 | )
Total net unrealized gains / losses on available-for-sale securities | (8,066 | ) |  | 13,234 |  |  | (894 | ) | (1) | 4,274 |
Net unrealized gains / losses on derivative instruments designated as hedging instruments | 21,689 |  |  | 3,613 |  |  | (31,219 | ) | (2) | (5,917 | )
Cumulative foreign currency translation adjustments | (187,225 | ) |  | 90,238 |  |  | — |  |  | (96,987 | )
Total accumulated other comprehensive income (loss), net of taxes | $ | (173,602 | ) |  | $ | 107,085 |  |  | $ | (32,113 | ) |  | $ | (98,630 | )
_________________________________________
(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 nine months ended September 1, 2017 and September 2, 2016 (in thousands):
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Available-for-sale securities: |  |  |  |  |  |  |
Unrealized gains / losses | $ | 235 |  |  | $ | (13 | ) |  | $ | 523 |  |  | $ | (35 | )
Reclassification adjustments | (214 | ) |  | — |  |  | (323 | ) |  | — |
Subtotal available-for-sale securities | 21 |  |  | (13 | ) |  | 200 |  |  | (35 | )
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Unrealized gains / losses on derivative instruments(1) | — |  |  | — |  |  | — |  |  | — |
Reclassification adjustments(1) | (149 | ) |  | (151 | ) |  | (582 | ) |  | (466 | )
Subtotal derivatives designated as hedging instruments | (149 | ) |  | (151 | ) |  | (582 | ) |  | (466 | )
Foreign currency translation adjustments | 1,434 |  |  | (463 | ) |  | 3,081 |  |  | 882 |
Total taxes, other comprehensive income | $ | 1,306 |  |  | $ | (627 | ) |  | $ | 2,699 |  |  | $ | 381 |
_________________________________________
(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. Our Board of Directors has approved our stock repurchase program wherein we were granted authority to repurchase common stock up to a specified amount and period. In the first quarter of fiscal 2017, the Board of Directors approved a new stock repurchase authority to repurchase up to $2.5 billion in common stock through the end of fiscal 2019. During the nine months ended September 1, 2017 and September 2, 2016, we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $800 million and $775 million, respectively. Of the $800 million prepayment during the nine months ended September 1, 2017, $300 million was under the new $2.5 billion stock repurchase authority and the remaining $500 million was under the previous $2 billion stock repurchase 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 nine months ended September 1, 2017, we repurchased approximately 6.3 million shares at an average price of $126.58 through structured repurchase agreements entered into during fiscal 2016 and the nine months ended September 1, 2017. During the nine months ended September 2, 2016 we repurchased approximately 7.3 million shares at an average price of $93.87 through structured repurchase agreements entered into during fiscal 2015 and the nine months ended September 2, 2016. For the nine months ended September 1, 2017, 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 September 1, 2017 were excluded from the computation of earnings per share. As of September 1, 2017, $98.8 million of prepayment remained under this agreement. Subsequent to September 1, 2017, as part of the $2.5 billion stock repurchase authority approved in January 2017, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $300 million. This amount will be classified as treasury stock on our condensed consolidated balance sheets. Upon completion of the $300 million stock repurchase agreement, $1.9 billion remains under our current authority.

X
- References No definition available. + Details
Name: | us-gaap_StockholdersEquityNoteAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration