Blackberry 2010 Annual Report Download - page 88

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During the year ended February 27, 2010, there were 559 stock options granted. The weighted-average fair value of stock
options granted during fiscal 2010 and fiscal 2008 were calculated using the BSM option-pricing model with the following
assumptions:
February 27,
2010
March 1,
2008
For the year ended
Number of options granted (000’s)................................................................................................. 559 2,518
Weighted-average grant date fair value of stock options granted during the year .......................... $ 33.02 $ 47.11
Assumptions:
Risk-free interest rate .................................................................................................................. 1.8% 4.3%
Expected life in years .................................................................................................................. 4.2 4.6
Expected dividend yield .............................................................................................................. 0% 0%
Volatility ..................................................................................................................................... 65% 41%-57%
There were no stock options granted during fiscal 2009.
The Company has not paid a dividend in the previous twelve 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
During fiscal 2010, the trustee purchased 1,458,950 common shares for total consideration of approximately $94.5 million to
comply with its obligations to deliver shares upon vesting. These purchased shares are classified as treasury stock for
accounting purposes and included in the shareholders’ equity section of the Company’s consolidated balance sheet.
The Company recorded compensation expense with respect to RSUs of $21.0 million in the year ended February 27, 2010
(February 28, 2009 — $196; March 1, 2008 — $33).
A summary of RSU activity since February 28, 2009 is shown below:
Number
(in 000’s)
Weighted
Average
Grant Date
Fair Value
Average
Remaining
Contractual
Life in Years
Aggregate
Instrinsic
Value
Balance as at February 28, 2009 .................................................... 3 $ 117.36
Granted during the period.............................................................. 1,470 66.03
Released during the period ............................................................ (2) 117.36
Cancelled during the period ........................................................... (22) 66.06
Balance as at February 27, 2010 ..................................................... 1,449 $ 66.09 2.16 $ 102,713
Vested and expected to vest at February 27, 2010........................... 1,328 $ 66.10 2.15 $ 94,156
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate closing share
price of the Company’s common shares on February 27, 2010) that would have been received by RSU holders if all RSUs
had been redeemed on February 27, 2010.
As of February 27, 2010, there was $66.9 million of unrecognized compensation expense related to RSUs which will be
expensed over the vesting period, which, on a weighted-average basis, results in a period of approximately 1.7 years.
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
NOTE 11
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