Adobe 2011 Annual Report Download - page 106

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106
We recognize the estimated compensation cost of restricted stock awards and restricted stock units, net of estimated
forfeitures, over the vesting term. The estimated compensation cost is based on the fair value of our common stock on the date of
grant.
We recognize the estimated compensation cost of performance shares, net of estimated forfeitures. The awards are earned
upon attainment of identified performance goals, some of which contain discretionary metrics. As such, these awards are re-valued
based on our traded stock price at the end of each reporting period. If the discretion is removed, the award will be classified as a
fixed equity award. The fair value of the awards will be based on the measurement date, which is the date the award becomes
fixed. The awards will be subsequently amortized over the longer of the remaining performance or service period.
Summary of Stock Options
Option activity under our stock option program for fiscal years ended 2011, 2010 and 2009 was as follows (shares in
thousands):
November 28, 2008
Granted
Exercised
Cancelled
Increase due to acquisition
November 27, 2009
Granted
Exercised
Cancelled
Increase due to acquisition
December 3, 2010
Granted
Exercised
Cancelled
Increase due to acquisition
December 2, 2011
Outstanding Options
Number of
Shares
40,704
5,758
(7,560)
(3,160)
5,509
41,251
3,198
(5,196)
(2,908)
730
37,075
4,507
(4,987)
(2,268)
475
34,802
Weighted
Average
Exercise
Price
$ 29.67
$ 22.90
$ 17.15
$ 33.57
$ 20.15
$ 29.45
$ 34.03
$ 20.48
$ 33.94
$ 8.24
$ 30.33
$ 33.60
$ 21.02
$ 33.85
$ 2.25
$ 31.47
The weighted average fair values of options granted during fiscal 2011, 2010 and 2009 were $8.82, $9.17 and $8.39,
respectively.
The total intrinsic value of options exercised during fiscal 2011, 2010 and 2009 was $59.4 million, $72.7 million and $91.8
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.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)