Blackberry 2003 Annual Report Download - page 51

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Research฀In฀Motion฀Limited฀฀|฀฀Incorporated฀Under฀the฀Laws฀of฀Ontario฀(United฀States฀dollars,฀in฀thousands฀except฀per฀share฀data฀or฀as฀otherwise฀indicated)
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For฀the฀years฀ended฀March฀1,฀2003,฀March฀2,฀2002฀and฀February฀28,฀2001
Effective฀March฀1,฀2001,฀the฀Company฀adopted฀the฀requirements฀of฀U.S.฀GAAP,฀SFAS฀133,฀Accounting฀
for฀Derivative฀Instruments,฀as฀amended฀by฀SFAS฀137฀and฀138,฀for฀U.S.฀GAAP฀purposes.฀SFAS฀133฀requires฀
all฀derivative฀instruments฀to฀be฀recognized฀at฀fair฀value฀on฀the฀consolidated฀balance฀sheet,฀and฀
outlines฀the฀criteria฀to฀be฀met฀in฀order฀to฀designate฀a฀derivative฀instrument฀as฀a฀hedge฀and฀the฀
methods฀for฀evaluating฀hedge฀effectiveness.฀For฀instruments฀designated฀as฀fair฀value฀hedges,฀changes฀
in฀fair฀value฀are฀recognized฀in฀current฀earnings,฀and฀will฀generally฀be฀offset฀by฀changes฀in฀the฀fair฀value฀
of฀the฀associated฀hedged฀transaction.฀For฀instruments฀designated฀as฀cash฀ow฀hedges,฀the฀effective฀
portion฀of฀changes฀in฀fair฀value฀are฀recorded฀in฀other฀comprehensive฀income,฀and฀subsequently฀
reclassied฀to฀earnings฀in฀the฀period฀in฀which฀the฀cash฀ows฀from฀the฀associated฀hedged฀transaction฀
affect฀earnings.
As฀at฀February฀28,฀2001,฀the฀Company฀had฀several฀derivative฀instruments฀outstanding,฀maturing฀
between฀July฀27,฀2001฀and฀February฀22,฀2002,฀for฀which฀there฀was฀no฀material฀change฀in฀fair฀value.฀
There฀was฀no฀material฀fair฀value฀amount฀upon฀adoption฀of฀SFAS฀133.
The฀adjustment฀to฀Other฀Comprehensive฀Income฀(Loss)฀is฀as฀follows:
For฀the฀year฀ended฀ ฀ ฀ ฀ March฀1,฀2003฀ March฀2,฀2002
Net฀change฀in฀derivative฀fair฀value฀during฀the฀period฀ ฀฀ ฀ $฀ 3,155฀฀ $฀ (2,803)
Amounts฀reclassied฀to฀earnings฀during฀the฀period฀ ฀฀ ฀ ฀ 284฀฀ ฀฀ 1,325฀
Adjustment฀to฀Other฀Comprehensive฀Income฀(Loss)฀ ฀ ฀ $฀ 3,439฀฀ $฀ (1,478)
฀฀
As฀all฀outstanding฀instruments฀mature฀during฀the฀next฀scal฀year,฀the฀full฀amount฀of฀the฀adjustment฀
(gain฀of฀$3,439฀(2002฀–฀loss฀of฀$1,478))฀will฀reverse฀into฀Comprehensive฀Income฀(Loss)฀in฀2004.
(c)฀Statements฀of฀comprehensive฀income฀(loss)฀–฀U.S.฀GAAP,฀SFAS฀130,฀Reporting฀Comprehensive฀Income,฀
establishes฀standards฀for฀the฀reporting฀and฀display฀of฀comprehensive฀income฀and฀its฀components฀in฀
general-purpose฀nancial฀statements.฀Comprehensive฀income฀is฀dened฀as฀the฀change฀in฀net฀assets฀
of฀a฀business฀enterprise฀during฀a฀period฀from฀transactions฀and฀other฀events฀and฀circumstances฀from฀
non-owner฀sources,฀and฀includes฀all฀changes฀in฀equity฀during฀a฀period฀except฀those฀resulting฀from฀
investments฀by฀owners฀and฀distributions฀to฀owners.฀The฀reportable฀item฀of฀comprehensive฀income฀
is฀the฀cash฀ow฀hedge฀as฀described฀in฀note฀21฀(b).
฀
(d)฀Loss฀per฀share฀–฀The฀following฀table฀sets฀forth฀the฀computation฀of฀basic฀and฀diluted฀loss฀per฀share฀
under฀U.S.฀GAAP.
For฀the฀year฀ended฀฀ ฀ March฀1,฀2003฀฀ ฀March฀2,฀2002฀ February฀28,฀2001฀
Numerator฀for฀basic฀and฀diluted฀loss฀per฀share฀
฀ available฀to฀common฀stockholders฀ $฀(148,858)฀฀ $฀ (28,321)฀฀ $฀ (7,568)฀
Denominator฀for฀diluted฀loss฀per฀share฀–฀
฀ weighted-average฀shares฀and฀assumed฀conversions฀฀ ฀ ฀77,636฀฀ ฀ ฀78,467฀฀ ฀ ฀73,555฀
Loss฀per฀share฀under฀U.S.฀GAAP฀ ฀ ฀
฀ Basic฀฀ ฀ $฀ (1.92)฀฀ $฀ (0.36)฀฀ $฀ (0.10)฀
฀฀ Diluted฀฀ ฀ $฀ (1.92)฀฀ $฀ (0.36)฀฀ $฀ (0.10)฀
฀
(e)฀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.