Adobe 2006 Annual Report Download - page 96

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96
Information regarding the stock options outstanding at December 1, 2006 is summarized below:
Range of Exercise
Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average
Exercise
Price
$ 0.81 – 13.24.......
.
6,402 3.83 years $ 11.57 6,153 $ 11.57
$13.38 – 14.33 .......
.
6,229 2.96 years 13.74 5,992 13.73
$14.38 – 19.55 .......
.
9,491 2.60 years 18.38 8,981 18.36
$19.64 – 21.78 .......
.
8,261 4.63 years 21.42 5,863 21.33
$21.97 – 28.01 .......
.
6,224 4.33 years 26.16 4,292 26.50
$28.03 – 30.60 .......
.
2,126 6.28 years 29.03 699 29.00
$30.79 – 30.79 .......
.
6,752 6.56 years 30.79 625 30.79
$30.80 – 32.30 .......
.
4,890 3.62 years 31.90 3,591 31.96
$32.42 – 32.42 .......
.
6,287 5.48 years 32.42 2,246 32.42
$32.67 – 68.43 .......
.
5,069 6.19 years 37.51 502 34.67
61,731 4.44 years $ 24.19 38,944 $ 20.58
The aggregate intrinsic value of options outstanding and options exercisable as of December 1,
2006 was $936.8 million and $731.0 million, respectively. The intrinsic value is calculated as the
difference between the market value as of December 1, 2006 and the exercise price of the shares. The
market value as of December 1, 2006 was $39.35 as reported by the NASDAQ Global Select Market.
All stock option grants to current executive officers are made after a review by and with the approval
of the Executive Compensation Committee of the Board of Directors. All members of the Executive
Compensation Committee are independent directors, as defined in the rules applicable to issuers traded on
the Nasdaq Global Select Market.
The Directors Plan provides for the granting of nonqualified stock options to non-employee directors.
Option grants are limited to 25,000 shares per person in each fiscal year, except for a new non-employee
director to whom 50,000 shares are granted upon election as a director. Options granted prior to March 28,
2006 have a ten-year term and are exercisable and vest over three years: 25% on the day preceding each of
Adobe’s next two annual meetings of stockholders and 50% on the day preceding Adobe’s third annual
meeting of stockholders after the grant of the option. However, options granted on or after March 28, 2006
have a seven-year term and vest over four years: 25% on the day preceding each of Adobe’s next four
annual meetings. The exercise price of the options that are issued is equal to the fair market value of our
common stock on the date of grant.
Options granted to directors for fiscal 2006, 2005 and 2004 are as follows:
As of December 1, 2006, approximately 2.0 million shares were reserved for issuance upon exercise of
outstanding options under the Directors Plan. The Directors Plan will continue until the earlier of (i)
termination by the Board or (ii) the date on which all of the shares available for issuance under the plan
have been issued and restrictions on issued shares have lapsed.
2006 2005 2004
Options granted to existing directors............
.
200 400 350
Exercise price...............................................
.
$ 35.95 $ 29.74 $ 20.83
Options granted to new directors..................
.
50 50 100
Exercise price ..............................................
.
$ 35.25 $ 26.83 $ 21.05