Blackberry 2008 Annual Report Download - page 71

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69
stock option data for the current, year to date and prior
comparative periods have been adjusted to reflect this stock
dividend.
The following details the changes in issued and
outstanding common shares for the three years ended
March 1, 2008:
Number
Outstanding
(000's)
Common
Shares
Balance as at February 26, 2005 568,455
Exercise of stock options 8,511
Common shares repurchased pursuant to Common
Share Repurchase Program (18,960)
Balance as at March 4, 2006 558,006
Exercise of stock options 9,126
Conversion of restricted share units 21
Common shares repurchased pursuant to Common
Share Repurchase Program (9,540)
Balance as at March 3, 2007 557,613
Exercise of stock options 5,039
Balance as at March 1, 2008 562,652
(b) Stock-based compensation
Stock Option Plan
The Company has an incentive stock option plan for directors,
officers and employees of the Company or its subsidiaries.
No stock options were granted to independent directors in
fiscal 2008.
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
subject to the option and exercise price becomes fixed.
Generally, this occurs on the grant date and the award is
accounted for as a fixed award. If the number of shares
subject to the option 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 subject to the
option and/or exercise prices becomes fixed, or the stock
option is exercised, is cancelled, or expires.
Effective in fiscal 2007, 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 $33.7 million in fiscal 2008 (fiscal 2007 -
$18.8 million).
On October 11, 2005, the Company’s Board of Directors
approved the repurchase by the Company, from time to
time, on the NASDAQ Stock Market, of up to an aggregate
of 28.5 million common shares during the subsequent 12
month period. This represented approximately 5% of the
Company’s outstanding shares. Pursuant to the Common
Share Repurchase Program, which is no longer in effect,
the Company repurchased 19.0 million common shares at a
cost of $391,212 during the third quarter of fiscal 2006 and
repurchased 9.5 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 28.5 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. The common shares noted
above have been adjusted to reflect the 3-for-1 stock split.