Blackberry 2002 Annual Report Download - page 36

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(f) Earnings (loss) per share –The following table sets forth the computation of basic and diluted earnings per
share under U.S. GAAP.
FOR THE YEAR ENDED
MARCH 2, 2002 FEBRUARY 28, 2001 FEBRUARY 29, 2000
Numerator for basic and diluted earnings (loss) per
share available to common stockholders $ (28,321) $ (7,568) $ 10,170
Denominator for diluted earnings (loss) per share –
adjusted weighted average shares and
assumed conversions 78,467 73,555 72,996
Earnings (loss) per share under U.S. GAAP
Basic $ (0.36) $ (0.10) $ 0.15
Diluted $ (0.36) $ (0.10) $ 0.14
(g) Accounting for stock compensation – Under U.S. GAAP, for any stock option with an exercise price that is less
than the market price on the date of grant, the difference between the exercise price and the market price on the
date of grant is recorded as compensation expense (“intrinsic value based method”). The Company grants stock
options at the fair market value of the shares on the day preceding the date of the grant of the options. Consequently,
no compensation expense is recognized. This method is consistent with U.S. GAAP, APB Opinion 25, Accounting
for Stock Issued to Employees.
SFAS No. 123, Accounting for Stock-Based Compensation, requires proforma disclosures of net income and earnings
per share, as if the fair value based method as opposed to the intrinsic value based method of accounting for
employee stock options had been applied. The disclosures in the following table show the Company’s net income
and earnings per share on a proforma basis, using the fair value method as determined by using the Black-Scholes
option pricing model, include:
FOR THE YEAR ENDED
MARCH 2, 2002 FEBRUARY 28, 2001 FEBRUARY 29, 2000
Net income (loss) under U.S. GAAP $ (28,321) $ (7,568) $ 10,170
Estimated stock-based compensation costs 21,410 11,782 3,261
Proforma net income (loss) under U.S. GAAP $ (49,731) $ (19,350) $ 6,909
Proforma net income (loss) per common share
Basic $ (0.63) $ (0.26) $ 0.10
Diluted $ (0.63) $ (0.26) $ 0.09
Weighted average number of shares (000’s)
Basic 78,467 73,555 66,613
Diluted 78,467 73,555 72,996
The weighted average fair value of options granted during the following periods were calculated as follows using
the Black-Scholes option pricing model with the following assumptions:
FOR THE YEAR ENDED
MARCH 2, 2002 FEBRUARY 28, 2001 FEBRUARY 29, 2000
Weighted average Black-Scholes value of options $ 12.00 $ 34.82 $ 10.77
Assumptions:
Risk free interest rates 4% 4% 4% - 5%
Expected life in years 3.5 3.5 3.5
Expected dividend yield 0% 0% 0%
Volatility 75% 100% 60% - 90%
RESEARCH IN MOTION LIMITED UNITED STATES DOLLARS, IN THOUSANDS EXCEPT PER SHARE DATA, AND EXCEPT AS OTHERWISE INDICATED.
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