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ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
96
Non-employee director options granted in fiscal 2013 and 2012 as part of the annual equity awards process vested 100%
on the day preceding the fiscal 2014 and fiscal 2013 annual meeting, respectively, and had a seven-year term. The exercise price
of the options issued were equal to the fair market value of our common stock on the date of grant. Options granted to directors
for fiscal 2013 and 2012 were as follows (shares in thousands):
2013 2012
Options granted to existing directors............................................................................................... 25 43
Exercise price .................................................................................................................................. $ 45.03 $ 33.18
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 November 28, 2014, there was $414.5 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 1.6 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 fiscal 2014,
2013 and 2012 were as follows (in thousands):
Income Statement Classifications
Cost of
Revenue–
Subscription
Cost of
Revenue–
Services and
Support Research and
Development Sales and
Marketing General and
Administrative Total(1)
Option Grants and Stock
Purchase Rights
2014................................................... $ 1,855 $ 4,000 $ 15,125 $ 17,706 $ 6,476 $ 45,162
2013................................................... $ 2,059 $ 3,413 $ 18,188 $ 21,283 $ 8,410 $ 53,353
2012................................................... $ 2,840 $ 4,130 $ 24,823 $ 31,379 $ 15,455 $ 78,627
Restricted Stock and Performance
Share Awards
2014................................................... $ 5,878 $ 6,619 $ 107,029 $ 102,909 $ 66,104 $ 288,539
2013................................................... $ 5,052 $ 6,961 $ 102,464 $ 101,423 $ 59,734 $ 275,634
2012................................................... $ 3,100 $ 9,461 $ 83,349 $ 76,359 $ 47,606 $ 219,875
_________________________________________
(1) During fiscal 2014, 2013 and 2012, we recorded tax benefits of $72.4 million, $70.7 million and $61.5 million, respectively.