Adobe 2000 Annual Report Download - page 68

41
40
Information regarding the stock options outstanding at December 1, 2000 is sum-
marized below:
OPTIONS OUTSTANDING OPTIONS EXERCISABLE
WEIGHTED
AVERAGE WEIGHTED WEIGHTED
REMAINING AVERAGE AVERAGE
RANGE OF SHARES CONTRACTUAL EXERCISE SHARES EXERCISE
EXERCISE PRICES OUTSTANDING LIFE PRICE EXERCISABLE PRICE
$ 1.64 2,000 1.67 years $ 1.64 2,000 $ 1.64
$ 2.56 — $ 3.66 214,218 1.84 years 3.62 214,218 3.62
$ 4.06 — $ 5.97 204,096 1.14 years 5.20 203,956 5.20
$ 6.22 — $ 8.44 1,753,601 4.57 years 7.66 1,605,135 7.67
$ 8.45 9,137,387 5.48 years 8.45 5,384,919 8.45
$ 9.66 — $ 14.09 1,689,237 6.23 years 11.64 523,785 11.58
$ 14.86 — $ 21.34 1,076,528 6.62 years 17.91 258,257 17.65
$ 24.59 — $ 35.69 11,749,924 6.91 years 35.03 1,886,236 34.91
$ 41.78 — $ 61.72 7,938,784 6.99 years 55.16 1,392,538 54.65
$ 63.94 — $ 83.19 11,251,625 7.93 years 65.91 7,649 64.14
45,017,400 6.72 years $ 38.26 11,478,693 $ 18.53
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 December 1, 2000, we had reserved 8.0 million shares of our
common stock for issuance under the Plan.
Restricted shares issued under the Plan generally vest annually between 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 1, 2000, 929,763 shares were outstanding and
not yet vested. In fi scal 2000, 1999, and 1998, we granted 453,885; 1,047,920; and 75,400
shares of restricted stock, respectively, and the weighted average fair value of the shares
was $58.66, $22.71, and $10.37, respectively. Additionally, we charged $16.5 million,
$5.3 million, and $2.3 million to expense associated with restricted stock in fiscal 2000,
1999, and 1998, respectively.
Performance awards issued under the 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 the end of the three-year period. We accrue the projected value of these
awards and charge this amount to expense over the three-year performance period. We
did not grant performance awards in fiscal 2000 or fiscal 1999. In fiscal 1998, we granted
243,640 performance awards, and the weighted average fair value of the shares was $17.24.
As of December 1, 2000, there were no performance awards outstanding. As of December
3, 1999 and November 27, 1998, performance awards for 640,720 shares and 807,480
shares were outstanding, respectively, and $0.4 million and $2.2 million were credited to
expense in fiscal 1999 and 1998, respectively.
Employee Stock Purchase Plan Our Employee Stock Purchase Plan allows eligible
employee participants to purchase shares of our common stock at a discount through
payroll deductions. For offerings commencing before September 2000, the plan consists
of twelve-month offerings with two six-month purchase periods in each offering period;
in September 2000, the plan was amended to increase the offering periods for offerings
commencing after that date to twenty-four-month offering periods with four six-month
purchase periods in each offering period. As of January 1, 2001, all employees participat-
ing in the plan have twenty-four-month offering periods. Employees purchase shares at
85% of the market value at either the beginning of the offering period or the end of the
purchase period, whichever price is lower. As of December 1, 2000, we had reserved 38.0
million shares of our common stock for issuance under this plan, and approximately 17.0
million shares remain available for future issuance.
The weighted average fair value of the purchase rights granted in fiscal 2000, 1999, and
1998 were $21.34, $5.19, and $3.97, respectively.