Blackberry 2009 Annual Report Download - page 73

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71
A summary of unvested stock options since March 1, 2008
is shown below:
Options Outstanding
Number
(in 000's)
Weighted
Average
Grant Date
Fair Value
Balance as at March 1, 2008 7,257 $ 22.89
Vested during the period (3,042) 13.20
Forfeited during the period (170) 34.45
Balance as at February 28, 2009 4,045 $ 29.69
As of February 28, 2009, there was $95.5 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 2.1 years. The total fair value of
stock options vested during the year ended February 28, 2009
was $40.1 million.
Cash received from stock option exercises for the year
ended February 28, 2009 was $27.0 million (March 1, 2008 -
$62.9 million). Tax benefits realized by the Company related to
the stock option exercises were $12.6 million (March 1, 2008 -
$8.2 million; March 3, 2007 - $6.0 million).
There were no stock options granted in fiscal 2009. The
weighted-average fair value of stock options granted during
the previous two years was calculated using the BSM option-
pricing model with the following assumptions:
For the year ended
March 1,
2008 March 3,
2007
Number of options granted (000's) 2,518 1,752
Weighted-average BSM value of each option $ 47.11 $ 16.63
Assumptions:
Risk-free interest rate 4.3% 4.8%
Expected life in years 4.6 4.4
Expected dividend yield 0% 0%
Volatility 41% - 57% 44% - 55%
The Company has not paid a dividend in the previous eleven
fiscal years and has no current expectation of paying cash
dividends on its common shares. The risk-free interest rates
utilized during the life of the stock options are based on a
U.S. Treasury security for an equivalent period. The Company
estimates the volatility of its common shares at the date of
grant based on a combination of the implied volatility of
publicly traded options on its common shares, 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
RSUs are redeemed for either common shares issued the by
Company, common shares purchased on the open market
or the cash equivalent on the vesting dates established by
the Company. Compensation expense is recognized upon
issuance of RSUs over the vesting period. The Company
recorded $196 of compensation expense with respect to RSUs
in the year ended February 28, 2009 (March 1, 2008 - $33).
The Company did not issue any RSUs in the year ended
February 28, 2009 and there were 3,334 RSUs outstanding as
at February 28, 2009 (March 1, 2008 – 5,000).