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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
(Continued)
NOTE 10. EMPLOYEE STOCK PLANS (CONTINUED)
Information regarding the stock options outstanding at November 27, 1998, is summarized below.
Options Outstanding Options Exercisable
Weighted
Average Weighted Weighted
Remaining Average Average
Shares Contractual Exercise Shares Exercise
Range of Exercise Prices Outstanding Life Price Exercisable Price
$ 3.45 ............................. 1,092 1.03 years $ 3.45 — $ 3.45
$ 6.56 – $ 9.50 ....................... 249,598 1.34 years 8.96 249,598 8.96
$10.13 – $15.13 ....................... 269,252 3.74 years 14.18 269,247 14.18
$15.75 – $23.63 ....................... 395,597 2.99 years 20.62 394,292 20.62
$23.75 – $33.75 ....................... 2,519,330 6.33 years 30.72 2,054,649 30.33
$33.81 ............................. 6,770,762 7.39 years 33.81 1,325,524 33.81
$34.25 – $50.75 ....................... 234,349 8.08 years 43.21 74,168 46.02
$51.75 – $67.00 ....................... 840 6.85 years 56.14 840 56.14
$ 3.45 – $67.00 ....................... 10,440,820 6.75 years $31.68 4,368,318 $28.57
Performance and Restricted Stock Plan
The Performance and Restricted Stock Plan (the ‘‘Plan’’) provides for the granting of restricted stock
and/or performance awards to officers and key employees. As of November 27, 1998, the Company had
reserved 2,000,000 shares of its common stock for issuance under this plan. Restricted shares issued under
this plan generally vest annually over three years but are considered outstanding at the time of grant, as the
stockholders are entitled to dividends and voting rights. As of November 27, 1998, 59,824 shares were
outstanding and not yet vested.
In fiscal 1998, 1997 and 1996, the Company granted 18,850; 129,550; and 26,750 shares of restricted
stock, respectively, and the weighted-average fair value of the shares was $41.47, $39.04, and $37.71,
respectively.
Performance awards issued under this plan entitle the recipient to receive, at the discretion of the
Company, 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
the end of the three-year period. The projected value of these awards is accrued by the Company and
charged to expense over the three-year performance period. As of November 27, 1998, November 28, 1997,
and November 29, 1996, performance awards for 201,870; 170,874; and 94,745 shares were outstanding,
respectively, and $(2.2) million, $1.5 million, and $(0.2) million was charged (credited) to expense in fiscal
1998, 1997, and 1996, respectively. In fiscal 1998, 1997, and 1996, performance awards were granted for
121,820; 156,500; and 48,965 shares, respectively, and the weighted-average fair value of the shares was
$34.48, $39.04, and $64.03, respectively.
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