Blackberry 1999 Annual Report Download - page 30

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In addition the Company will claim further tax deductions in future years for its financing costs. These costs are
deductible at the rate of approximately $2,141,000 per annum for each of the years ending February 28, 2000 and
2001, $1,690,000 for the year ending February 28, 2002 and $1,083,000 for the year ending February 28, 2003.
No portion of the potential benefit of the carryforwards and timing differences has been reflected in these
financial statements except to offset deferred taxes of $4,143,000. Any benefits related to the deduction of the
financing costs will be credited directly to share capital. Any benefits related to investment tax credits claimed
for capital asset acquisitions will be credited to capital assets. Any other benefits of these carryforwards will be
credited to income in the year of recognition.
The difference between the amount of the provision for income taxes and the amount computed by multiplying
income before taxes by the statutory rate is reconciled as follows (in thousands):
1999 1998 1997
Provision for income taxes based on a Canadian
income tax rate of 44.62% $ 5,749 $ 413 $ (9)
Increase (decrease) in taxes resulting from:
Utilization of tax loss carryforwards (2,667) – –
Research and development tax incentives (374) (644) (290)
Other 635 616 236
$ 3,343 $ 385 $ (63)
8. DEFERRED REVENUE
Deferred revenue is comprised as follows (in thousands):
1999 1998
Deferred warranty $ 905 $ 760
Advance for development work 1,752 –
$ 2,657 $ 760
9. LEASE COMMITMENTS
The Company is committed to lease payments under operating leases for premises as follows (in thousands):
For the year ending February 28, 2000 $ 571
2001 $ 571
2002 $ 457
2003 $ 39
In addition, the Company is also responsible for operating costs on its premises.
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