Income Statement

Difficulty: Beginner

The income statement presents information on the financial results of a company's business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Adobe Systems Inc., Consolidated Income Statement

USD $ in thousands

 
12 months ended Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014 Nov 29, 2013 Nov 30, 2012
Subscription 6,133,869  4,584,833  3,223,904  2,076,584  1,137,856  673,206 
Product 706,767  800,498  1,125,146  1,627,803  2,470,098  3,342,843 
Services and support 460,869  469,099  446,461  442,678  447,286  387,628 
Revenue 7,301,505  5,854,430  4,795,511  4,147,065  4,055,240  4,403,677 
Subscription (623,048) (461,860) (409,194) (335,432) (278,077) (219,102)
Product (57,082) (68,917) (90,035) (97,099) (138,154) (121,663)
Services and support (330,361) (289,131) (245,088) (189,549) (170,326) (143,017)
Cost of revenue (1,010,491) (819,908) (744,317) (622,080) (586,557) (483,782)
Gross profit 6,291,014  5,034,522  4,051,194  3,524,985  3,468,683  3,919,895 
Research and development (1,224,059) (975,987) (862,730) (844,353) (826,631) (742,823)
Sales and marketing (2,197,592) (1,910,197) (1,683,242) (1,652,308) (1,620,454) (1,516,159)
General and administrative (624,706) (576,202) (533,478) (563,215) (546,621) (432,065)
Amortization of purchased intangibles (76,562) (78,534) (68,649) (52,424) (52,254) (48,657)
Operating expenses (4,122,919) (3,540,920) (3,148,099) (3,112,300) (3,045,960) (2,739,704)
Operating income 2,168,095  1,493,602  903,095  412,685  422,723  1,180,191 
Interest income 66,069  47,340  28,759  21,355  21,887  24,549 
Foreign exchange gains (losses) (30,705) (35,716) (20,130) (18,840) (21,001) (31,431)
Realized gains on fixed income investment 1,673  2,880  3,309  4,024  4,090  3,152 
Realized losses on fixed income investment (725) (985) (354) (97) (1,077) (278)
Other 83  29  22,325  825  1,042  594 
Interest and other income (expense), net 36,395  13,548  33,909  7,267  4,941  (3,414)
Interest expense (74,402) (70,442) (64,184) (59,732) (67,508) (67,487)
Realized investment gains 3,279  4,964  2,760  1,298  1,783  8,918 
Unrealized investment gains 4,274  186  912  1,251  940 
Realized investment losses (6,720) (206) (1,054) (7,049) (104)
Unrealized investment losses (1,593) (250)
Investment gains (losses), net 7,553  (1,570) 961  1,156  (4,015) 9,504 
Non-operating income (expense), net (30,454) (58,464) (29,314) (51,309) (66,582) (61,397)
Income before income taxes 2,137,641  1,435,138  873,781  361,376  356,141  1,118,794 
Provision for income taxes (443,687) (266,356) (244,230) (92,981) (66,156) (286,019)
Net income 1,693,954  1,168,782  629,551  268,395  289,985  832,775 
Source: Adobe Systems Inc., Annual Reports
Item Description The company
Revenue Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Adobe Systems Inc.'s revenue increased from 2015 to 2016 and from 2016 to 2017.
Operating income The net result for the period of deducting operating expenses from operating revenues. Adobe Systems Inc.'s operating income increased from 2015 to 2016 and from 2016 to 2017.
Income before income taxes Sum of operating profit and nonoperating income (expense) before income (loss) from equity method investments, income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. Adobe Systems Inc.'s income before income taxes increased from 2015 to 2016 and from 2016 to 2017.
Net income The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Adobe Systems Inc.'s net income increased from 2015 to 2016 and from 2016 to 2017.

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