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Stockholders' Equity | 3 Months Ended
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Mar. 02, 2018
Stockholders' Equity Note [Abstract] |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Retained Earnings The changes in retained earnings for the three months ended March 2, 2018 were as follows (in thousands):
Balance as of December 1, 2017 | $ | 9,573,870 |
Net income | 583,076 |
Reissuance of treasury stock | (326,229 | )
Adjustments to equity as a result of the Tax Act | (318 | )
Balance as of March 2, 2018 | $ | 9,830,399 |
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. See Note 8 for more detailed information regarding impacts of the Tax Act. The components of accumulated other comprehensive income (loss) and activity, net of related taxes, as of March 2, 2018 were as follows (in thousands):
| December 1, 2017 |  | Increase / Decrease |  | Reclassification Adjustments |  | March 2, 2018
Net unrealized gains / losses on available-for-sale securities: |  |  |  |  |  |  |
Unrealized gains on available-for-sale securities | $ | 2,704 |  |  | $ | (1,717 | ) |  | $ | (184 | ) |  | $ | 803 |
Unrealized losses on available-for-sale securities | (14,220 | ) |  | (21,433 | ) |  | 305 |  |  | (35,348 | )
Total net unrealized gains / losses on available-for-sale securities | (11,516 | ) |  | (23,150 | ) |  | 121 |  | (1) | (34,545 | )
Net unrealized gains / losses on derivative instruments designated as hedging instruments | (3,367 | ) |  | (1,336 | ) |  | (2,139 | ) | (2) | (6,842 | )
Cumulative foreign currency translation adjustments | (96,938 | ) |  | 28,386 |  |  | — |  |  | (68,552 | )
Total accumulated other comprehensive income (loss), net of taxes | $ | (111,821 | ) |  | $ | 3,900 |  |  | $ | (2,018 | ) |  | $ | (109,939 | )
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(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 derivative instruments are classified in revenue.
The following table sets forth the taxes related to each component of other comprehensive income for the three months ended March 2, 2018 and March 3, 2017 (in thousands):
| Three Months
| 2018 |  | 2017
Available-for-sale securities: |  |  |
Unrealized gains / losses | $ | — |  |  | $ | 248 |
Reclassification adjustments | — |  |  | (109 | )
Subtotal available-for-sale securities | — |  |  | 139 |
Derivatives designated as hedging instruments: |  |  |
Unrealized gains / losses on derivative instruments(1) | — |  |  | — |
Reclassification adjustments(1) | (1,526 | ) |  | (284 | )
Subtotal derivatives designated as hedging instruments | (1,526 | ) |  | (284 | )
Foreign currency translation adjustments | (1,742 | ) |  | 386 |
Total taxes, other comprehensive income | $ | (3,268 | ) |  | $ | 241 |
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(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 January 2017, our Board of Directors approved a new stock repurchase program granting us authority to repurchase up to $2.5 billion in common stock through the end of fiscal 2019. The new stock repurchase program approved by our Board of Directors is similar to our previous stock repurchase programs. During the three months ended March 2, 2018 and March 3, 2017, we entered into several structured stock repurchase agreements with large financial institutions, whereupon we provided them with prepayments totaling $300 million and $200 million, respectively. 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 three months ended March 2, 2018, we repurchased approximately 1.6 million shares at an average price of $185.13 through structured repurchase agreements entered into during fiscal 2017 and the three months ended March 2, 2018. During the three months ended March 3, 2017 we repurchased approximately 2.2 million shares at an average price of $107.54 through structured repurchase agreements entered into during fiscal 2016 and the three months ended March 3, 2017. For the three months ended March 2, 2018, 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 March 2, 2018 were excluded from the computation of earnings per share. As of March 2, 2018, $100.3 million of prepayment remained under this agreement. Subsequent to March 2, 2018, 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 $700 million. This amount will be classified as treasury stock on our condensed consolidated balance sheets. Upon completion of the $700 million stock repurchase agreement, $900 million remains under our current authority.

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- 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
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