Acquisitions (Tables)

12 Months Ended

Nov. 27, 2020

Marketo

Business Acquisition

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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 millions)	Amount		Weighted Average Useful Life (years)
Customer contracts and relationships	$	578	11
Purchased technology	444		7
Backlog	105		2
Non-competition agreements	12		2
Trademarks	329		9
Total identifiable intangible assets	1,468
Net liabilities assumed	(194)		N/A
Goodwill (1)	3,459		N/A
Total purchase price	$	4,733

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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 the earliest period presented or of results that may occur in the future.

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

(in millions)	2018
Net revenues	$	9,339
Net income	$	2,362

Magento

Business Acquisition

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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 millions)	Amount		Weighted Average Useful Life (years)
Customer contracts and relationships	$	208	8
Purchased technology	84		5
In-process research and development (1)	39		N/A
Trademarks	21		3
Other intangibles	44		3
Total identifiable intangible assets	396
Net liabilities assumed	(68)		N/A
Goodwill (2)	1,317		N/A
Total purchase price	$	1,645

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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)    Substantially non-deductible for tax purposes.