Blackberry 2004 Annual Report Download - page 27

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For the years ended February 28, 2004, March 1, 2003 and March 2, 2002
Aggregate Contractual Obligations
The following table sets out aggregate information about the Company’s contractual obligations and the periods
in which payments are due as at February 28, 2004:
Less than One to Four to More than
Total One Year Three Years Five Years Five Years
Long-term debt $ 6,433 $ 193 $ 667 $ 5,573 $ –
Operating lease obligations 8,008 2,165 4,840 1,003 –
Purchase obligations and
commitments 168,449 168,449 – – –
Total $ 182,890 $ 170,807 $ 5,507 $ 6,576 $ –
Purchase obligations and commitments of $168.4
million represent primarily purchase orders or
contracts for the purchase of raw materials and
other goods and services. The expected timing of
payment of these purchase obligations and
commitments is estimated based upon current
information. Timing of payment and actual amounts
paid may be different depending upon the time of
receipt of goods and services or changes to agreed-
upon amounts for some obligations.
Commentary on Material Differences in the Company’s
Fiscal 2004 Financial Statements under U.S. GAAP
compared to Canadian GAAP
The Consolidated Financial Statements have been
prepared in accordance with U.S. GAAP on a basis
consistent for all periods presented. The Company
has also prepared consolidated financial statements
in accordance with Canadian GAAP on a basis
consistent for all periods presented.
There are no material differences to reported values
contained in the Company’s consolidated balance
sheets under U.S. GAAP and Canadian GAAP.
A summary of the differences to reported values
contained in the Company’s consolidated statements
of operations under U.S. GAAP and Canadian GAAP
is set out in the table below.
Differences to reported values contained in the
Company’s consolidated statements of cash flows
under U.S. GAAP and Canadian GAAP result from
the differences discussed above.
Fiscal Year Ended
February 28, 2004 March 1, 2003
Net income (loss) under U.S. GAAP $ 51,829 $(148,857)
Adjustments - Canadian GAAP
Start-up costs (a) (1,392) (452)
Future income taxes (a) –646
Stock-based compensation costs (b) (2,890) –
Net income (loss) under Canadian GAAP $ 47,547 $(148,663)
Notes:
a) U.S. GAAP, Statement of Position 98-5, Reporting on the Cost of Start-up Activities, prescribes that start-up costs should be expensed as
incurred. Canadian GAAP allows for the capitalization of start up costs, namely the costs incurred during the start-up of the Company’s European
operations. The tax affect of this adjustment is also reflected above. As of August 30, 2003, the Company has expensed all start-up costs
previously incurred, as the Company determined that there is no remaining value to these costs as a result of changes in the underlying operations.
b) Previously, under Canadian GAAP, for any stock option with an exercise price that was less than the market price on the date of grant, the
difference between the exercise price and the market price on the date of grant was required to be recorded as compensation expense (the
intrinsic value based method). As the Company grants stock options at the fair market value of the shares on the day preceding the date of the
grant of the options, no compensation expense was recognized. In November 2003, Canadian Institute of Chartered Accountants (“CICA”) 3870
was amended to provide transitional provisions which allow for the adoption of fair value based accounting recording of stock options. The
Company has elected the prospective method of adoption for Canadian GAAP purposes effective for the year ended February 28, 2004. In
accordance with CICA 3870, the Company has recorded stock-based compensation expense for all grants issued and subsequently cancelled
during the current year. In addition, proforma stock-based compensation expense was calculated on grants issued since March 2, 2003.