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Table of Contents
ADOBE SYSTEMS INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
93
As part of the annual equity awards process in 2013, there were approximately 25 thousand options granted to non-employee
directors with a $45.03 exercise price, equal to the fair market value of our common stock on the date of grant. These options
vested 100% on the day preceding the fiscal 2014 annual meeting and had a seven-year term.
Compensation Costs
We recognize the estimated compensation cost of restricted stock units, net of estimated forfeitures, on a straight-line basis
over the requisite service period of the entire award, which is generally the vesting period. The estimated compensation cost is
based on the fair value of our common stock on the date of grant.
We recognize the estimated compensation cost of performance shares, net of estimated forfeitures. The fiscal 2015, 2014
and 2013 awards are earned upon achievement of an objective total stockholder return measure at the end of the three-year
performance period, as described above, and are valued using a Monte Carlo Simulation model. The fair value of the awards was
fixed at grant date and amortized over the longer of the remaining performance or service period. For the fiscal 2012 performance
shares, expense is being recognized on a straight-line basis over the requisite service period for each vesting tranche of the award.
As of November 27, 2015, there was $394.1 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 1.5 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 2015,
2014 and 2013 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
2015 $ 1,449 $ 5,185 $ 14,082 $ 18,360 $ 4,790 $ 43,866
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
Restricted Stock and Performance
Share Awards
2015 $ 6,481 $ 6,446 $ 104,624 $ 109,908 $ 66,709 $ 294,168
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
_________________________________________
(1) During fiscal 2015, 2014 and 2013, we recorded tax benefits of $68.8 million, $72.4 million and $70.7 million, respectively.