Adobe 2011 Annual Report Download - page 109

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109
The following table sets forth the summary of performance share activity under our 2007, 2008 and 2010 programs, based
upon share awards actually achieved, for the fiscal years ended December 2, 2011 and December 3, 2010 (in thousands):
Beginning outstanding balance
Achieved
Released
Forfeited
Ending outstanding balance
2011
557
337
(436)
(53)
405
2010
950
—
(350)
(43)
557
The total fair value of performance awards vested during fiscal 2011, 2010 and 2009 was $14.8 million, $12.0 million and
$7.7 million, respectively.
Information regarding performance shares outstanding at December 2, 2011, December 3, 2010 and November 27, 2009
is summarized below:
2011
Performance shares outstanding
Performance shares vested and expected to vest
2010
Performance shares units outstanding
Performance shares vested and expected to vest
2009
Performance shares units outstanding
Performance shares vested and expected to vest
Number of
Shares
(thousands)
405
390
557
514
950
818
Weighted
Average
Remaining
Contractual
Life
(years)
0.41
0.39
0.58
0.53
1.05
0.97
Aggregate
Intrinsic
Value(*)
(millions)
$ 11.0
$ 10.4
$ 16.2
$ 14.8
$ 33.6
$ 28.8
_________________________________________
(*) The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global
Select Market, the market values as of December 2, 2011, December 3, 2010 and November 27, 2009 were $27.11, $29.14
and $35.38, respectively.
Grants to Non-Employee Directors
The Directors Plan (and starting in fiscal 2008, the 2003 Plan) provides for the granting of nonqualified stock options to
non-employee directors. Options granted before November 29, 2008 vest over four years: 25% on the day preceding each of our
next four annual meetings and have a ten-year term. Starting in fiscal 2009, the initial equity grant to a new non-employee director
is a restricted stock unit award having an aggregate value of $0.5 million based on the average stock price over the 30 calendar
days ending on the day before the date of grant. The initial equity award vests over 2 years, 50% on the day preceding each of our
next 2 annual meetings. For the annual equity grant, a non-employee director can elect to receive 100% options, 100% restricted
stock units or 50% of each and shall have an aggregate value of $0.2 million as based on the average stock price over the 30
calendar days ending on the day before the date of grant. The target grant value converted to stock options is based on a 1:3
conversion of restricted stock units to stock options. Annual equity awards granted on or after November 29, 2008 vest 100% on
the day preceding the next annual meeting. Options granted on or after November 29, 2008 have a seven-year term. 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.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)