Blackberry 2005 Annual Report Download - page 58

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56
As a result of the NTP resolution during the fourth quarter of fiscal 2005 as described in note 15, the Company
has now recognized a deferred tax benefit of $1,083 related to a fiscal 2003 acquisition. This amount resulted
in a reduction of Goodwill.
During fiscal 2004, the purchase price related to one of the fiscal 2003 acquisitions was revised, resulting in
a reduction to goodwill of $478 and a return of consideration.
During fiscal 2003 the Company completed four acquisitions. Effective June 2002, the Company purchased
the assets of a company whose proprietary software code provides capabilities to facilitate foreign language
input and display on handheld products. Effective July 2002, the Company acquired 100% of the common
shares of a company that will offer a secure solution for viewing email attachments with BlackBerry Wireless
Handhelds. Effective August 2002, the Company acquired 100% of the common shares of a company that has
software products which enable wireless access to major email systems including corporate, proprietary and
POP3/IMAP4 using a handheld device. In addition, effective September 2002, the Company also acquired
100% of the common shares of a small company with expertise and technology related to wireless networks.
The results of the acquirees’ operations have been included in the consolidated financial statements
commencing from each respective closing date to February 26, 2005.
The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the
date of acquisition:
For the year ended February 26, 2005 February 28, 2004 March 1, 2003
Assets purchased
Capital assets $–$– $317
Deferred tax asset 2,889 – –
Acquired technology 2,140 – 7,326
Goodwill (1,083) (478) 16,193
3,946 (478) 23,836
Liabilities assumed 58 – 1,275
Deferred income tax liability – – 357
58 – 1,632
Net non-cash assets acquired 3,888 (478) 22,204
Cash acquired 23 – 117
Net assets acquired $ 3,911 $(478) $ 22,321
Consideration
Cash $3,911 $(478) $ 22,107
Assumption of acquiree long-term debt –– 214
$3,911 $(478) $ 22,321
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.
The Company’s purchase price allocations with respect to the fiscal 2003 acquisitions resulted in goodwill
of $16,193 of which $13,316 is expected to be deductible for tax purposes.
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)