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Segments | 9 Months Ended
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Aug. 31, 2018
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. Effective in fiscal 2018, our business organized into three reportable segments: Digital Media, Digital Experience (formerly Digital Marketing), and Publishing (formerly Print and Publishing). These segments provide our senior management with a comprehensive financial view of our key businesses. Our segments are aligned around our two strategic growth opportunities described above, placing our Publishing business in a third segment that contains some of our mature products and solutions. Additionally, in the first quarter of fiscal 2018, we moved our legacy enterprise offerings—Adobe Connect web conferencing platform and Adobe LiveCycle, an enterprise document and forms platform—from our Digital Experience segment into Publishing, in order to more closely align our Digital Experience business with the strategic growth opportunity. Prior year information in the tables below have been reclassified to reflect this change. 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 Experience—Our Digital Experience 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. This segment also includes our commerce platform offerings from the Magento acquisition in the third quarter of fiscal 2018.
• | Publishing—Our 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. It also includes our web conferencing and document and forms platforms effective the first quarter of fiscal 2018.
Our segment results for the three months ended August 31, 2018 and September 1, 2017 were as follows (dollars in thousands):
| Digital Media |  | Digital Experience |  | Publishing |  | Total
Three months ended August 31, 2018 |  |  |  |  |  |  |
Revenue | $ | 1,608,875 |  |  | $ | 613,983 |  |  | $ | 68,218 |  |  | $ | 2,291,076 |
Cost of revenue | 61,417 |  |  | 227,731 |  |  | 6,344 |  |  | 295,492 |
Gross profit | $ | 1,547,458 |  |  | $ | 386,252 |  |  | $ | 61,874 |  |  | $ | 1,995,584 |
Gross profit as a percentage of revenue | 96 | % |  | 63 | % |  | 91 | % |  | 87 | %
Three months ended September 1, 2017 |  |  |  |  |  |  |
Revenue | $ | 1,270,215 |  |  | $ | 507,764 |  |  | $ | 63,095 |  |  | $ | 1,841,074 |
Cost of revenue | 69,533 |  |  | 187,647 |  |  | 5,742 |  |  | 262,922 |
Gross profit | $ | 1,200,682 |  |  | $ | 320,117 |  |  | $ | 57,353 |  |  | $ | 1,578,152 |
Gross profit as a percentage of revenue | 95 | % |  | 63 | % |  | 91 | % |  | 86 | %
Our segment results for the nine months ended August 31, 2018 and September 1, 2017 were as follows (dollars in thousands):
| Digital Media |  | Digital Experience |  | Publishing |  | Total
Nine months ended August 31, 2018 |  |  |  |  |  |  |
Revenue | $ | 4,615,860 |  |  | $ | 1,754,042 |  |  | $ | 195,481 |  |  | $ | 6,565,383 |
Cost of revenue | 171,646 |  |  | 647,219 |  |  | 16,873 |  |  | 835,738 |
Gross profit | $ | 4,444,214 |  |  | $ | 1,106,823 |  |  | $ | 178,608 |  |  | $ | 5,729,645 |
Gross profit as a percentage of revenue | 96 | % |  | 63 | % |  | 91 | % |  | 87 | %
Nine months ended September 1, 2017 |  |  |  |  |  |  |
Revenue | $ | 3,620,282 |  |  | $ | 1,480,451 |  |  | $ | 194,177 |  |  | $ | 5,294,910 |
Cost of revenue | 182,935 |  |  | 539,574 |  |  | 17,110 |  |  | 739,619 |
Gross profit | $ | 3,437,347 |  |  | $ | 940,877 |  |  | $ | 177,067 |  |  | $ | 4,555,291 |
Gross profit as a percentage of revenue | 95 | % |  | 64 | % |  | 91 | % |  | 86 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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