Blackberry 2007 Annual Report Download - page 94

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92
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
The weighted average fair value of stock options granted
during the quarter was calculated using the BSM option-
pricing model with the following assumptions:
For the year ended
March 3,
2007 March 4,
2006 February 26,
2005
(Restated - note 4) (Restated - note 4)
Number of options granted (000’s) 584 911 315
Weighted-average Black-Scholes value of each option $ 49.90 $ 37.17 $ 34.52
Assumptions:
Risk free interest rate 4.8% 4.1% 3.3%
Expected life in years 4.4 4.0 4.0
Expected dividend yield 0% 0% 0%
Volatility 44% - 55% 60% 69%
The Company has not paid a dividend in the previous nine
fiscal years and has no current expectation of paying cash
dividends on its common stock. The risk-free interest rates
utilized during the life of the stock option are based on a U.S.
Treasury security for an equivalent period. The Company
estimates the volatility of its common stock at the date of
grant based on a combination of the implied volatility of
publicly traded options on its common stock, and historical
volatility, as the Company believes that this is a better
indicator of expected volatility going forward. The expected
life of stock options granted under the plan is based on
historical exercise patterns, which the Company believes are
representative of future exercise patterns.
Restricted Share Unit Plan (the “RSU Plan”)
RSUs are redeemed for either common shares issued from
treasury, common shares purchased on the open market
or the cash equivalent on the vesting dates established by
the Company. Compensation expense will be recognized
upon issuance of RSUs over the vesting period. Total
compensation expense recorded in the year with respect to
RSUs was $282.
The Company did not issue any RSUs in the year ended
March 3, 2007 and there were no RSUs outstanding as at
March 3, 2007 (March 4, 2006 – 7,800).
13. COMMITMENTS AND CONTINGENCIES
(a) Lease commitments
The Company is committed to future minimum annual lease
payments under operating leases as follows:
Real Estate Equipment
and other Total
For the years ending
2008 $ 10,721 $ 480 $ 11,201
2009 11,726 226 11,952
2010 9,584 - 9,584
2011 8,847 - 8,847
2012 8,211 - 8,211
Thereafter 38,577 - 38,577
$ 87,666 $ 706 $ 88,372