Adobe 2012 Annual Report Download - page 110

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110
The following table sets forth the summary of performance share activity under our 2007, 2008, 2010 and 2011 programs,
based upon share awards actually achieved, for the fiscal years ended November 30, 2012, December 2, 2011 and December 3,
2010 (in thousands):
2012 2011 2010
Beginning outstanding balance.................................................................................. 405 557 950
Achieved .................................................................................................................... 492 337 —
Released..................................................................................................................... (464)(436)(350)
Forfeited..................................................................................................................... (45)(53)(43)
Ending outstanding balance....................................................................................... 388 405 557
The performance metrics under the 2009 Performance Share program were not achieved and therefore no shares were
awarded.
The total fair value of performance awards vested during fiscal 2012, 2011 and 2010 was $14.4 million, $14.8 million and
$12.0 million, respectively.
Information regarding performance shares outstanding at November 30, 2012, December 2, 2011 and December 3, 2010 is
summarized below:
Number of
Shares
(thousands)
Weighted
Average
Remaining
Contractual
Life
(years)
Aggregate
Intrinsic
Value(*)
(millions)
2012
Performance shares outstanding................................................................ 388 0.54 $ 13.4
Performance shares vested and expected to vest....................................... 369 0.51 $ 12.7
2011
Performance shares units outstanding....................................................... 405 0.41 $ 11.0
Performance shares vested and expected to vest....................................... 390 0.39 $ 10.4
2010
Performance shares units outstanding....................................................... 557 0.58 $ 16.2
Performance shares vested and expected to vest....................................... 514 0.53 $ 14.8
_________________________________________
(*) 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 November 30, 2012, December 2, 2011 and December 3, 2010 were $34.61, $27.11
and $29.14, 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
Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)