Adobe 2004 Annual Report Download - page 83

83
Stock option activity for fiscal 2004, 2003 and 2002 is presented below (in actual amounts):
December 3, 2004 November 28, 2003 November 29, 2002
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Outstanding at beginning of year ...
.
42,469,653 $ 32.80 57,847,050 $ 35.64 54,284,317 $ 36.66
Options granted ..............................
.
10,379,755 42.13 1,994,130 33.12 11,973,680 28.77
Options exercised ...........................
.
(13,293,864) 27.10 (7,978,054) 23.81 (3,688,534) 15.99
Options canceled ............................
.
(1,289,228) 40.91 (9,393,473) 58.00 (4,722,413) 45.20
Outstanding at end of year..............
.
38,266,316 37.04 42,469,653 32.80 57,847,050 35.64
Exercisable at end of year ..............
.
22,436,707 37.01 27,240,540 34.60 26,402,239 35.65
Weighted average fair value of
options granted during the year ..
.
$ 11.25 $ 11.69 $ 13.49
Information regarding the stock options outstanding at December 3, 2004 is summarized below:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual Life
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average Exercise
Price
$ 6.84 – 10.26............... 2,304,607 1.54 years $ 8.45 2,303,857 $ 8.45
$10.88 – 18.42............... 403,008 4.01 years 15.98 257,769 14.74
$19.38 – 27.69............... 11,650,998 4.75 years 26.80 7,246,428 27.04
$27.94 – 35.30............... 1,504,855 5.29 years 32.43 850,813 32.42
$35.69............................ 3,912,675 2.92 years 35.69 3,911,700 35.69
$35.83 – 39.10............... 4,267,886 5.28 years 38.86 456,049 38.32
$39.35 – 42.73............... 1,785,793 6.06 years 40.80 802,266 40.80
$43.55............................ 4,596,326 6.46 years 43.55 — —
$43.94 – 55.66............... 4,290,819 4.18 years 52.39 3,227,320 54.75
$56.34 – 81.50............... 3,549,349 4.13 years 63.98 3,380,505 64.22
38,266,316 4.59 years $ 37.04 22,436,707 $ 37.01
Performance and Restricted Stock
The 1994 Performance and Restricted Stock Plan (“the Restricted Stock Plan”) provides for the
granting of restricted stock and/or performance awards to officers and key employees. As of December 3,
2004, we had reserved 8.0 million shares of our common stock for issuance under the Plan.
Restricted shares issued under the Restricted Stock Plan generally vest annually over two to three years
but are considered outstanding at the time of grant, as the stockholders are entitled to dividends and voting
rights. As of December 3, 2004, 10,722 shares were outstanding and not yet vested. Additionally, we
charged $0.3 million, $2.8 million and $6.8 million to expense associated with restricted stock in fiscal
2004, 2003 and 2002, respectively. As of December 3, 2004, approximately 2.8 million shares were
available for grant under this Plan.
Restricted stock issued for fiscal 2004, 2003 and 2002 are as follows:
Performance awards issued under the Restricted Stock Plan entitle the recipient to receive, at our
discretion, shares or cash upon completion of the performance period subject to attaining identified
performance goals. Performance awards are generally measured over a three-year period and cliff vest at
2004 2003 2002
Restricted stock granted...............................
.
6,893 3,277 9,321
Average fair value of shares.........................
.
$ 42.87 $ 32.37 $ 27.88