Blackberry 2007 Annual Report Download - page 91

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89
The following details the changes in issued and
outstanding common shares for the three years ended
March 3, 2007:
Number
Outstanding
(000’s)
Common
Shares
Balance as at February 28, 2004 184,830
Exercise of stock options 4,655
Balance as at February 26, 2005 189,485
Exercise of stock options 2,837
Common shares repurchased pursuant to Common
Share Repurchase Program (6,320)
Balance as at March 4, 2006 186,002
Exercise of stock options 3,042
Conversion of restricted share units 7
Common shares repurchased pursuant to Common
Share Repurchase Program (3,180)
Balance as at March 3, 2007 185,871
On October 11, 2005, the Company’s Board of Directors
approved the repurchase by the Company, from time to time,
on the NASDAQ National Market, of up to an aggregate of
9.5 million common shares during the subsequent 12 month
period. This represents approximately 5% of the Company’s
outstanding shares.
Pursuant to the Common Share Repurchase Program,
the Company repurchased 6.3 million common shares at a
cost of $391,212 during the third quarter of fiscal 2006 and
repurchased 3.2 million common shares at a cost of $203,933
during the second quarter of fiscal 2007 which brought the
total number of common shares repurchased to the approved
maximum of 9.5 million common shares. The amounts paid in
excess of the per share paid-in capital of the common shares
of $328,231 in the third quarter of fiscal 2006 and $172,171 in
the second quarter of fiscal 2007 were charged to retained
earnings. All common shares repurchased by the Company
pursuant to the Common Share Repurchase Program have
been cancelled.
During fiscal 2005, the Company determined that it was
more likely than not it can realize its deferred income tax
assets and therefore recognized a deferred income tax asset
of $8,727 with respect to fiscal 2004 share issue financing
costs.
(b) Share-based payment
Stock Option Plan
The Company has an incentive stock option plan for directors,
officers and employees of the Company or its subsidiaries.
Prior to fiscal 2007, the Company accounted for
stock-based compensation using APB 25 and related
interpretations. Under APB 25, compensation expense is
measured as of the date on which the number of shares and
exercise price become fixed. Generally, this occurs on the
grant date and the award is accounted for as a fixed award. If
the number of shares and grant price are not fixed as of the
grant date, the stock option is accounted for as a variable
award until such time as the number of shares and/or exercise
prices become fixed, or the stock option is exercised, is
cancelled, or expires.
Effective March 5, 2006, the Company adopted SFAS
123(R) to record stock compensation expense, using the MPT
method. Under the MPT method, there is no restatement
of prior periods. The adoption of SFAS 123(R) has resulted in
a charge to earnings of $18.8 million in fiscal 2007 (see also
note 2).