Blackberry 2012 Annual Report Download - page 153

Research In Motion Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes
of the Company’s shares on NASDAQ. Any purchases made by way of private agreement may be at a discount to the prevailing
market price at the time of purchase, and would be subject to regulatory approval.
The Company had 524 million voting common shares outstanding, options to purchase 4 million voting common shares,
8 million RSUs and 0.1 million DSUs outstanding as at April 4, 2012.
Stock Option Plan
The Company recorded a charge to income and a credit to paid-in-capital of approximately $27 million in fiscal 2012 (fiscal
2011 - $31 million; fiscal 2010 - $37 million) in relation to stock-based compensation expense.
The Company has presented excess tax benefits (deficiencies) from the exercise of stock-based compensation awards as a
financing activity in the consolidated statement of cash flows.
Stock 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 15 million stock options available for future grants under the stock option plan as at March 3, 2012.
As part of a settlement agreement reached with the Ontario Securities Commission (“OSC”), on February 5, 2009, Messrs.
Balsillie, Lazaridis and Kavelman agreed to contribute, in aggregate, a total of approximately CAD $83 million to RIM,
consisting of (i) a total of CAD $38 million to RIM in respect of the outstanding benefit arising from incorrectly priced stock
options granted to all RIM employees from 1996 to 2006, and (ii) a total of CAD $45 million to RIM (CAD $15 million of
which had previously been paid) to defray costs incurred by RIM in the investigation and remediation of stock options, granting
practices and related governance practices at RIM. These contributions are being made through Messrs. Balsillie, Lazaridis and
Kavelman undertaking not to exercise certain vested RIM options to acquire an aggregate of 1,160,129 common shares of RIM.
These options had a fair value equal to the aggregate contribution amounts determined using a Black-Scholes-Merton
calculation based on the last trading day prior to the day the OSC issued a notice of hearing in respect of the matters giving rise
to the settlement. In the first quarter of fiscal 2010, options to acquire an aggregate of 758,837 common shares of RIM, and in
the fourth quarter of fiscal 2011, options to acquire an aggregate of 391,292 common shares of RIM, expired in satisfaction of
the undertakings not to exercise options. During the first quarter of fiscal 2012, the remaining 10,000 options expired in
satisfaction of the undertakings not to exercise options effectively completing the contributions required as part of the settlement
agreement reached with the OSC.
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(b) Stock-based compensation