Adobe 2004 Annual Report Download - page 47

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47
Distribution and Dilutive Effect of Options
The table below provides information about stock options granted for fiscal years 2004, 2003 and 2002 to our
Chief Executive Officer and our four other most highly compensated executive officers as of December 3, 2004.
This group is referred to as the Named Executive Officers. Please refer to the section below, headed “Named
Executive Officer Option Grants,” for the Named Executive Officers.
Options granted to employees, directors and Named Executive Officers for fiscal 2002 through 2004 are
summarized as follows (†):
2004 2003 2002
Net grants during the period as % of outstanding shares ......................... 4% (3)% 3%
Net grants to Named Executive Officers during the period as % of
total options granted........................................................................... 9% 0 % 21%
Net grants to Named Executive Officers during the period as % of
outstanding shares.............................................................................. *% 0 % 1%
Cumulative options held by Named Executive Officers as % of total
options outstanding ............................................................................ 16% 16 % 15%
† “Net grants” equals the sum of the number of shares subject to options granted to all employees, directors and Named
Executive Officers during the specified period reduced by the number of shares subject to options which were canceled or
otherwise terminated during such period. Net grants during fiscal 2004 reflect the new options granted in exchange for
options cancelled under our stock option exchange program in fiscal 2003. Net grants during fiscal 2003 reflect the
cancellation of options under our stock option exchange program. Net grants as a percentage of outstanding shares are based
on 242.2 million shares, 238.3 million shares and 232.0 million shares of our common stock outstanding as of December 3,
2004, November 28, 2003 and November 29, 2002 respectively.
* Less than 1%.
For additional information about our employee stock option plan activity, and pro forma earnings presentation
as if we had accounted for our grant of employee stock options using the fair value method of accounting under
Statement of Financial Accounting Standards No. 123 (“SFAS No. 123”), “Accounting for Stock-Based
Compensation,” refer to Notes 1 and 11 of our Notes to Consolidated Financial Statements.
Options granted to the Named Executive Officers as a percentage of the total options granted to all employees
and directors vary from year to year. For additional information about the compensation of our executive officers
and stock option grants to our Named Executive Officers, refer to our 2005 Proxy Statement we will deliver to our
stockholders in connection with our Annual Meeting of Stockholders to be held on April 28, 2005.