Blackberry 2009 Annual Report Download - page 82

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80
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
full because Dennis Kavelman and Angelo Loberto already
voluntarily paid those amounts to the Company at the same
time and on the same basis as Jim Balsillie and Mike Lazaridis.
In addition, Dennis Kavelman and Angelo Loberto each agreed
to be prohibited, for a period of five years from acting as an
officer or director of a company that is registered or required
to file reports with the SEC, and to be barred from appearing
or practicing as an accountant before the SEC with a right to
reapply after five years.
Messrs. Balsillie, Lazaridis, Kavelman and Loberto also
agreed to the payment of monetary penalties totaling, in
aggregate, $1.4 million to the SEC as an administrative penalty.
13. PRODUCT WARRANTY
The Company estimates its warranty costs at the time of
revenue recognition based on historical warranty claims
experience and records the expense in Cost of sales. The
warranty accrual balance is reviewed quarterly to establish
that it materially reflects the remaining obligation based on
the anticipated future expenditures over the balance of the
obligation period. Adjustments are made when the actual
warranty claim experience differs from estimates.
The change in the Company’s accrued warranty
obligations March 4, 2006 to February 28, 2009 as well as the
accrued warranty obligations as at February 28, 2009 are set
forth in the following table:
Accrued warranty obligations at March 4, 2006 $ 22,387
Actual warranty experience during fiscal 2007 (38,554)
Fiscal 2007 warranty provision 49,736
Adjustments for changes in estimate 3,100
Accrued warranty obligations at March 3, 2007 36,669
Actual warranty experience during fiscal 2008 (68,166)
Fiscal 2008 warranty provision 116,045
Accrued warranty obligations at March 1, 2008 84,548
Actual warranty experience during fiscal 2009 (146,434)
Fiscal 2009 warranty provision 258,757
Adjustments for changes in estimate (12,536)
Accrued warranty obligations at February 28, 2009 $ 184,335
14. EARNINGS PER SHARE
The following table sets forth the computation of basic and
diluted earnings per share.
For the year ended
February 28,
2009 March 1,
2008 March 3,
2007
Net income for basic and diluted earnings per
share available to common shareholders $ 1,892,616 $ 1,293,867 $ 631,572
Weighted-average number of shares outstanding (000's) - basic 565,059 559,778 556,059
Effect of dilutive securities (000's): Stock-based compensation 9,097 13,052 15,750
Weighted-average number of shares and assumed conversions (000's) - diluted 574,156 572,830 571,809
Earnings per share - reported
Basic $ 3.35 $ 2.31 $ $1.14
Diluted $ 3.30 $ 2.26 $ $1.10