Blackberry 2015 Annual Report Download - page 104

BlackBerry Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
29
(b) Stock-based compensation
Stock Options
The Company recorded a charge to income and a credit to paid-in-capital of approximately $2 million in fiscal 2015
(fiscal 2014 - $5 million; fiscal 2013 - $8 million) in relation to stock-based compensation expense.
The Company has presented excess tax deficiencies from the exercise of stock-based compensation awards as a financing
activity in the consolidated statements of cash flows.
Stock options previously granted under the Prior Plans generally vest over a period of three years to a maximum of five
years, and are generally exercisable over a period of five years to a maximum of seven years from the grant date. The
Company issues new shares to satisfy stock option exercises. There are 5 million shares in the equity pool available for
future grants under the Equity Plan as at February 28, 2015.
A summary of option activity since March 3, 2012 is shown below:
Options Outstanding
Number (000’s)
Weighted-
Average
Exercise
Price
Average
Remaining
Contractual
Life in Years
Aggregate
Intrinsic
Value
(millions)
Balance as at March 3, 2012 3,618 $ 73.86
Granted during the year 5,288 7.86
Forfeited/cancelled/expired during the year (1,646) 60.86
Balance as at March 2, 2013 7,260 27.53
Exercised during the year (417) 7.36
Forfeited/cancelled/expired during the year (3,576) 42.55
Balance as at March 1, 2014 3,267 12.08
Granted during the year 526 10.06
Exercised during the year (945) 7.13
Forfeited/cancelled/expired during the year (1,362) 17.10
Balance as at February 28, 2015 1,486 $ 9.34 3.11 $ 5
Vested and expected to vest as at February 28, 2015 1,434 $ 9.39 3.09 $ 4
Exercisable as at February 28, 2015 566 $ 11.36 2.39 $ 2
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 shares on February 28, 2015 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
February 28, 2015. The intrinsic value of stock options exercised during fiscal 2015, calculated using the average market
price during the year, was approximately $2.46 per share.
A summary of unvested stock options since March 1, 2014 is shown below:
Options Outstanding
Number (000’s)
Weighted-Average
Grant Date Fair
Value
Balance as at March 1, 2014 1,977 $ 4.48
Granted during the year 526 —
Vested during the year (600) —
Forfeited during the year (983) —
Balance as at February 28, 2015 920 $ 4.27
As at February 28, 2015, there was $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