Adobe 2007 Annual Report Download - page 91

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91
The assumptions used to value employee stock purchase rights were as follows:
Fiscal Years
2007 2006 2005
Expected term (in years) ................. 0.5—2.0 1.25 1.25
Volatility ......................................... 30.41—32.75% 30.30—35.02% 32—37 %
Risk-free interest rate...................... 4.79—5.11% 4.32—5.26% 3.03—3.58 %
The expected term of employee stock purchase plan shares is the average of the remaining purchase periods under each
offering period.
Summary of Stock Options and Employee Stock Purchase Shares
The following table sets forth the summary of option activity under our stock option program for fiscal years 2007, 2006
and 2005:
Outstanding Options
Options
Available for
Grant
Number of
Shares
Weighted
Average
Exercise
Price
December 3, 2004........................... 16,706 76,534 $ 18.52
Granted ....................................... (11,418) 11,418 31.88
Exercised .................................... — (20,495) 15.32
Cancelled .................................... 2,206 (2,206) 21.52
Increased authorization ............... 16,800 — —
December 2, 2005........................... 24,294 65,251 $ 21.76
Granted ....................................... (12,221) 12,017 28.71
Exercised .................................... — (25,873) 17.73
Cancelled .................................... 4,807 (4,807) 25.33
Forfeited...................................... (1,600) — 15.32
Due to acquisition....................... 1,324 15,143 —
December 1, 2006........................... 16,604 61,731 $ 24.19
Granted ...................................... (10,034) 10,084 40.36
Exercised .................................... — (21,368) 21.18
Cancelled .................................... 2,633 (2,705) 33.18
Forfeited...................................... (5) — 33.18
Increased authorization ............... 25,172 — —
November 30, 2007 ........................ 34,370 47,742 28.47
The weighted average fair values of options granted during fiscal 2007, 2006 and 2005 were $12.37, $10.79 and $9.08,
respectively.
The total intrinsic value of options exercised during fiscal 2007, 2006 and 2005 was $463.6 million, $440.0 million and
$330.9 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of
exercise and the exercise price of the shares.