Blackberry 2004 Annual Report Download - page 46

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44
Research In Motion Limited • Incorporated Under the Laws of Ontario (In thousands of United States dollars, except per share data, and except as otherwise indicated)
February 28, 2004 March 1, 2003 March 2, 2002
Expected Canadian tax rate 36.5% 38.3% 41.2%
Expected income tax provision (recovery) $17,394 $ (44,817) $ (15,685)
Differences in income taxes resulting from:
Manufacturing and processing activities (900) 3,951 1,801
Increase in valuation allowance 29,100 61,969 1,530
Non-deductible portion of unrealized
capital losses ––1,013
Foreign exchange 3,820 (1,408) 1,112
Foreign tax rate differences (45,088) 7,352 (3,192)
Enacted tax rate changes (9,743) 4,835 2,960
Other differences 1,217 (130) 683
$(4,200) $ 31,752 $ (9,778)
February 28, 2004 March 1, 2003 March 2, 2002
Income (loss) before income taxes:
Canadian $ 29,309 $ (102,954) $ (46,845)
Foreign 18,320 (14,151) 8,746
$ 47,629 $ (117,105) $ (38,099)
The provision for income taxes consists of the following:
February 28, 2004 March 1, 2003 March 2, 2002
Provision for (recovery of) income taxes:
Current
Canadian $ 484 $ (8) $ 6,756
Foreign (4,684) 3,521 302
Deferred
Canadian –27,593 (17,283)
Foreign –646 447
$(4,200) $ 31,752 $ (9,778)
The acquisitions were accounted for using the
purchase method whereby assets acquired and
liabilities assumed were recorded at their fair value
as of the date of acquisition. The excess of the
purchase price over such fair value was recorded as
goodwill. Acquired technology includes current and
core technology. Of the $16,193 of goodwill
acquired during fiscal 2003, $13,316 is expected
to be deductible for tax purposes.
If the four fiscal 2003 acquisitions had occurred on
March 1, 2001, the Company’s unaudited proforma
consolidated revenue would have increased by $nil
for the year ended February 28, 2004 (March 1,
2003 - $226; March 2, 2002 - $816) and the
unaudited proforma net income (loss) would have
been $51,829 (March 1, 2003 - ($151,713);
March 2, 2002 - ($35,748)).
9. Income Taxes
The difference between the amount of the provision
for (recovery of) income taxes and the amount
computed by multiplying income before taxes by the
statutory Canadian rate is reconciled as follows: