Adobe 2005 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2005 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

82
Stock option activity for fiscal 2005, 2004 and 2003 is presented below (in actual amounts):
December 2, 2005 December 3, 2004 November 28, 2003
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Shares
Weighted-
Average
Exercise
Price
Outstanding at beginning of year ...
.
76,532,632 $ 18.52 84,939,306 $ 16.40 115,694,100 $ 17.82
Options granted ..............................
.
11,418,499 31.88 20,759,510 21.07 3,988,260 16.56
Options exercised ...........................
.
(20,494,162) 15.32 (26,587,728) 13.55 (15,956,108) 11.91
Options canceled ............................
.
(2,205,685) 21.52 (2,578,456) 20.46 (18,786,946) 29.00
Outstanding at end of year..............
.
65,251,284 21.76 76,532,632 18.52 84,939,306 16.40
Exercisable at end of year ..............
.
42,098,806 44,873,414 18.51 54,481,080 17.30
Weighted average fair value of
options granted during the year ..
.
$ 9.08
$ 5.63
$ 5.85
Information regarding the stock options outstanding at December 2, 2005 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
$ 3.42 – 13.24............... 8,888,158 3.04 years $ 10.65 8,761,321 $ 10.62
$13.37 – 13.84............... 7,529,423 3.58 years 13.67 7,471,181 13.68
$13.97 – 17.84............... 7,615,413 2.64 years 17.39 7,064,075 17.47
$17.94 – 20.14............... 7,560,403 4.32 years 19.54 3,682,253 19.54
$20.29 – 21.36............... 1,262,743 6.24 years 20.78 706,429 20.65
$21.78 – 21.78............... 7,795,296 5.46 years 21.78 2,521,526 21.77
$21.97 – 28.17............... 7,358,914 3.27 years 26.39 5,827,701 27.16
$28.45 – 32.20............... 8,254,548 4.16 years 31.35 5,781,120 31.99
$32.42 – 40.75............... 8,986,386 6.39 years 32.63 283,200 35.68
65,251,284 4.18
y
ears $ 21.76 42,098,806 $ 19.32
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 2,
2005, we had reserved 16.0 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 2, 2005, 0.4 million shares were outstanding and not yet vested. Additionally, we
charged $0.4 million, $0.3 million and $2.8 million to expense associated with restricted stock in fiscal
2005, 2004 and 2003, respectively. As of December 2, 2005, approximately 5.5 million shares were
available for grant under this Plan.
Restricted stock issued for fiscal 2005, 2004 and 2003 are as follows:
2005 2004 2003
Restricted stock granted...............................
.
25,832 13,786 6,554
Average fair value of shares.........................
.
$ 30.86 $ 21.44 $ 16.19
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. We did not grant performance awards in fiscal 2005, 2004 and 2003. As of December
2, 2005 and December 3, 2004, there were no performance awards outstanding.