Blackberry 2008 Annual Report Download - page 73

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71
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 1, 2008 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
As of March 1, 2008, there was $133.6 million of unrecognized
stock-based compensation expense related to unvested
stock options which will be expensed over the vesting period,
which, on a weighted-average basis, results in a period of
approximately 2.5 years. The total fair value of stock options
vested during the year ended March 1, 2008 was $23.9 million.
Options Outstanding
Number
(in 000’s)
Average
Grant
Date Fair
Value
Balance as at March 3, 2007 9,129 $ 8.03
Granted during the period 2,518 47.11
Vested during the period (4,226) 5.65
Forfeited during the period (164) 11.76
Balance as at March 1, 2008 7,257 $ 22.89
March 1, 2008. The intrinsic value of stock options exercised
during fiscal 2008, calculated using the average market price
during the period, was approximately $70 per share.
A summary of unvested stock options since March 3, 2007
is shown below:
Cash received from stock option exercises for the year
ended March 1, 2008 was $62.9 million (March 3, 2007 - $44.5
million).
The following table illustrates the effect on reported net
income and earnings per share if the Company had applied
the fair value recognition provisions of SFAS 123 to stock-
based employee compensation in fiscal 2006:
For the year ended
March 4,
2006
Net income - as reported $ 374,656
Add: Stock-based employee compensation expense included in restated
net income, net of tax 5,942
Deduct: Total stock-based employee compensation expense determined under
fair value method for all awards, net of tax (25,000)
Net income - pro forma $ 355,598
Weighted-average number of shares outstanding (000’s) - basic 566,742
Effect of dilutive securities: Employee stock options 19,788
Weighted-average number of shares and assumed conversions - diluted 586,530
Pro forma earnings per common share:
Basic $ 0.63
Diluted $ 0.61