Adobe 2014 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2014 Adobe annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 121

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121

ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
95
Information regarding stock options outstanding at November 28, 2014, November 29, 2013 and November 30, 2012 is
summarized below:
Number of
Shares
(thousands)
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life
(years)
Aggregate
Intrinsic
Value(*)
(millions)
2014
Options outstanding..................................................... 3,173 $ 28.92 3.19 $ 142.0
Options vested and expected to vest............................ 3,153 $ 29.00 3.17 $ 140.9
Options exercisable ..................................................... 2,786 $ 30.24 2.85 $ 121.0
2013
Options outstanding..................................................... 7,359 $ 29.93 3.22 $ 197.6
Options vested and expected to vest............................ 7,242 $ 30.05 3.18 $ 193.6
Options exercisable ..................................................... 5,752 $ 31.28 2.65 $ 146.7
2012
Options outstanding..................................................... 24,517 $ 32.09 2.74 $ 103.3
Options vested and expected to vest............................ 24,158 $ 32.15 2.70 $ 100.9
Options exercisable ..................................................... 20,668 $ 33.06 2.27 $ 73.6
_________________________________________
(*) The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise
price of the shares. As reported by the NASDAQ Global Select Market, the market values as of November 28, 2014,
November 29, 2013 and November 30, 2012 were $73.68, $56.78 and $34.61, respectively.
All equity awards granted to current executive officers are made after a review by and with the approval of the Executive
Compensation Committee of the Board of Directors.
Grants to Non-Employee Directors
The 2003 Plan (and prior to fiscal 2008, the Directors Plan) provides for the granting of non-qualified stock options and
restricted stock units to non-employee directors. 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 annually over 2 years. Non-employee directors receiving initial equity
grants will not be eligible to receive annual equity grants until the second annual meeting after joining the Board of Directors.
Annual equity grants to non-employee directors shall have an aggregate value of $0.3 million as based on the average stock
price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual
meeting. Starting in fiscal 2014, we eliminated the use of non-qualified stock options for our non-employee directors and restricted
stock units became the primary form of their annual equity grants. Prior to fiscal 2014, a non-employee director could elect to
receive the annual equity grant as either 100% options, 100% restricted stock units or 50% of each. The target grant value converted
to stock options was based on a 1:3 conversion of restricted stock units to stock options.
Restricted stock units granted to directors for fiscal 2014, 2013 and 2012 were as follows (in thousands):
2014 2013 2012
Restricted stock units granted to existing directors.................................................... 48 36 42
Restricted stock units granted to new directors.......................................................... — 14 41