Blackberry 2008 Annual Report Download - page 72

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RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements continued
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
the options less valuable, there will be no stock compensation
expense related to these repricing events.
As previously disclosed, the Company’s Co-Chief
Executive Officers voluntarily offered to assist the Company
in defraying costs incurred in connection with the Review
and the Restatement by contributing CAD $10.0 million (CAD
$5.0 million by each Co-CEO) of those costs. As part of a
settlement agreement reached with a pension fund as more
fully described in note 12(b), an additional CAD $5.0 million
(CAD $2.5 million by each Co-CEO) was received in the third
quarter of fiscal 2008. The Company received these voluntary
payments in the second and third quarters of fiscal 2008 and
were recorded net of income taxes as an increase to paid-in
capital.
In June 2007, the Board amended the Stock Option Plan
to provide that options held by directors of the Company will
not terminate upon a director ceasing to be a director of the
Company if such person is appointed as a Director Emeritus
of the Board. This resulted in a modification for accounting
purposes of unvested options previously granted to two
directors who where appointed Directors Emeritus during
the second quarter of fiscal 2008, which in turn required the
Company to record additional compensation expense in
fiscal 2008 in the amount of $3.5 million.
A summary of option activity since February 26, 2005 is
shown below.
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
six years to a maximum of ten years from the grant date. The
Company issues new shares to satisfy stock option exercises.
There are 9.2 million stock options vested and not exercised as
at March 1, 2008. There are 13.0 million stock options available
for future grants under the stock option plan.
As a result of measures implemented by the Company’s
Board of Directors following the Company’s Review (as more
fully discussed in note 12(c), certain outstanding stock options
held by directors and officers of the Company were required to
be repriced to reflect a higher exercise price. In addition, some
employees have voluntarily agreed to reprice certain options
to reflect a higher exercise price. These options held by these
employees have been repriced as of March 1, 2008 and this has
been reflected in the tables below. Repriced options in fiscal
2008 include 87 stock option grants to 62 individuals in respect
of options to acquire 9,426,000 common shares. In addition,
total restitution amounts including interest received in fiscal
2008 for incorrectly priced options that were exercised prior
to fiscal 2008 was $8.7 million. As the repricing of the options
has increased the exercise price upward, therefore making
Options Outstanding
Number
(in 000's)
Weighted
Average
Exercise
Price
Average
Remaining
Contractual
Life in Years
Aggregate
Instrinsic
Value
Balance as at February 26, 2005 33,453 $ 4.15
Granted during the year 2,733 24.04
Exercised during the year (8,511) 2.27
Forfeited/cancelled/expired during the year (792) 3.70
Balance as at March 4, 2006 26,883 $ 6.78
Granted during the year 1,752 37.15
Exercised during the year (9,126) 4.30
Forfeited/cancelled/expired during the year (348) 9.97
Balance as at March 3, 2007 19,161 10.85
Granted during the year 2,518 101.60
Exercised during the year (5,039) 10.82
Forfeited/cancelled/expired during the year (174) 31.76
Balance as at March 1, 2008 16,466 $ 28.66 3.17 $ 1,261,765
Vested and expected to vest at March 1, 2008 15,982 $ 27.96 3.13 $ 1,234,955
Exercisable at March 1, 2008 9,209 $ 10.40 2.05 $ 860,129