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90
RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements continued
For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
Options Outstanding
Number
(in 000’s)
Weighted
Average
Exercise
Price
Average
Remaining
Contractual
Life in Years
Aggregate
Instrinsic
Value
Balance as at February 28, 2004 16,018 $ 10.82
Granted during the year 315 58.45
Exercised during the year (4,655) 10.19
Forfeited/cancelled/expired during the year (527) 10.49
Balance as at February 26, 2005 11,151 $ 12.44
Granted during the year 911 72.11
Exercised during the year (2,837) 6.81
Forfeited/cancelled/expired during the year (264) 11.11
Balance as at March 4, 2006 8,961 $ 20.33
Granted during the year 584 111.46
Exercised during the year (3,042) 12.89
Forfeited/cancelled/expired during the year (116) 29.90
Balance as at March 3, 2007 6,387 $ 32.54 3.22 $ 660,629
Vested and expected to vest at March 3, 2007 6,133 $ 31.89 3.17 $ 638,340
Exercisable at March 3, 2007 3,344 $ 18.22 2.21 $ 393,733
The aggregate intrinsic value in the table above represents
the total pre-tax intrinsic value (the aggregate difference
between the closing stock price of the Company’s common
stock on March 3, 2007 and the exercise price for in-the-
money options) that would have been received by the option
holders if all in-the-money options had been exercised on
In accordance with SFAS 123(R), beginning in fiscal 2007,
the Company has presented excess tax benefits from the
exercise of stock-based compensation awards as a financing
activity in the consolidated statement of cash flows.
Options granted under the plan generally vest over a
period of five years and are generally exercisable over a
period of seven years to a maximum of ten years from the
grant date. The Company issues new shares to satisfy stock
option exercises. There are 3.3 million stock options vested
and not exercised as at March 3, 2007. There are 5.2 million
stock options available for future grants under the stock
option plan.
A summary of option activity since February 28, 2004
is shown below. As a result of the Company’s review of its
historical option granting practice (as more fully discussed
in Note 4), certain outstanding stock options will be repriced
to reflect a higher exercise price as certain employees have
agreed to have their options repriced. As the repricing
of options has not occurred prior to filing these financial
statements, the repricing will be recorded as a subsequent
event, the effects of which will be set out in a subsequent
quarterly financial statement when the options are actually
repriced. The per option information contained in the
disclosure below relates to the historical prices for all stock
options. As the repricing of the options will make the options
less valuable, there will be no accounting expense related to
the repricing event.