Blackberry 2000 Annual Report Download - page 33

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The tax effects of significant temporary differences under U.S. GAAP are as follows:
February 29, February 28,
2000 1999
Assets
Income tax losses available for carryforward $ 1,212 $ 2,760
Financing costs 4,819 1,679
Investment tax credits available to offset future income taxes 5,424 2,783
$11,455 $ 7,222
Less valuation allowance 1,432 3,023
$10,023 $ 4,199
Liabilities
Tax depreciation in excess of book depreciation $ 4,270 $ 1,217
Investment tax credits taxable in future periods 1,047 967
$5,317 $ 2,184
$ 4,706 $ 2,015
(c) Statements of comprehensive income – Under U.S. GAAP, SFAS 130, Reporting Comprehensive Income establishes standards
for the reporting and display of comprehensive income and its components in general-purpose financial statements.
Comprehensive income is defined as the change in net assets of a business enterprise during a period from transactions
and other events and circumstances from non-owner sources, and includes all changes in equity during a period except
those resulting from investments by owners and distributions to owners. The only reportable item of comprehensive
income is the foreign currency translation in note 14 (a).
(d) Earnings per share – SFAS 128, Earnings Per Share, requires disclosure of the calculation of basic and diluted earnings per
share using the treasury stock method to determine diluted earnings per share. The treasury stock method assumes that
proceeds and any tax benefits received upon the exercise of all warrants and options outstanding in the period are used
to repurchase the Company’s shares at the average share price during the period. Under Canadian GAAP, proceeds on
the conversion of warrants and options are assumed to increase net income to the extent of the after tax investment
income that could be earned. The following table sets forth the computation of basic and diluted earnings per share
under U.S. GAAP.
February 29, February 28, February 28,
For the year ended 2000 1999 1998
Numerator in U.S. GAAP:
Numerator for basic and diluted earnings per share
available to common stockholders $ 10,170 $ 6,723 $ 387
Denominator in 000’s of shares:
Denominator for basic earnings per share – weighted
average shares outstanding 66,613 64,148 52,944
Effect of dilutive securities:
Warrants 180 64 14
Employee stock options 6,203 2,643 1,359
Dilutive potential common shares:
Denominator for diluted earnings per share – adjusted
weighted-average shares and assumed conversions 72,996 66,855 54,317
Basic earnings per share $ 0.15 $ 0.10 $ 0.01
Diluted earnings per share $ 0.14 $ 0.10 $ 0.01
31
Research In Motion Limited ■Incorporated Under the Laws of Ontario ■United States dollars, in thousands except per share data