Adobe 2011 Annual Report Download - page 110

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110
Options granted to directors for fiscal 2011, 2010 and 2009 were as follows (shares in thousands):
Options granted to existing directors
Exercise price
2011
85
$ 33.23
2010
18
$ 33.82
2009
175
$ 23.28
Restricted stock units granted to directors for fiscal 2011 and 2010 were as follows (in thousands):
Restricted stock units granted to existing directors
Restricted stock units granted to new directors
2011
28
—
2010
48
—
2009
27
20
Compensation Costs
With the exception of performance shares, stock-based compensation expense is recognized on a straight-line basis over
the requisite service period of the entire award, which is generally the vesting period. For performance shares, expense is recognized
on a straight-line basis over the requisite service period for each vesting tranche of the award.
As of December 2, 2011, there was $442.5 million of unrecognized compensation cost, adjusted for estimated forfeitures,
related to non-vested stock-based awards which will be recognized over a weighted average period of 2.4 years. Total unrecognized
compensation cost will be adjusted for future changes in estimated forfeitures.
Total stock-based compensation costs that have been included in our Consolidated Statements of Income for the fiscal years
ended December 2, 2011, December 3, 2010 and November 27, 2009 were as follows (in thousands):
Option Grants and Stock
Purchase Rights(2)
2011
2010
2009
Restricted Stock and Performance
Share Awards(2)
2011
2010
2009
Income Statement Classifications
Cost of
Revenue–
Subscription
$ 936
$ 1,265
$ —
$ 1,521
$ 1,422
$ —
Cost of
Revenue–
Services and
Support
$ 4,716
$ 1,251
$ 1,906
$ 8,607
$ 1,065
$ 639
Research and
Development
$ 28,132
$ 37,221
$ 45,535
$ 79,427
$ 51,387
$ 27,931
Sales and
Marketing
$ 31,754
$ 40,983
$ 38,790
$ 68,485
$ 52,253
$ 19,818
General and
Administrative
$ 20,605
$ 21,111
$ 24,595
$ 41,920
$ 23,128
$ 9,274
Total(1)
$ 86,143
$ 101,831
$ 110,826
$ 199,960
$ 129,255
$ 57,662
_________________________________________
(1) During fiscal 2011, 2010 and 2009, we recorded tax benefits of $62.8 million, $50.3 million and $33.0 million, respectively.
(2) During fiscal 2009, we recorded $0.9 million associated with cash recoveries of fringe benefit tax from employees in India.
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)