Blackberry 2005 Annual Report Download - page 60

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58
Deferred income tax assets and liabilities consist of the following temporary differences:
As at February 26, 2005 February 28, 2004
Assets
Financing costs $8,727 $13,170
Non-deductible reserves 7,370 3,492
Reserve related to NTP litigation (note 15) 92,837 –
Research and development incentives 42,920 68,802
Tax loss carryforwards 10,009 37,428
Capital assets –18,252
Other tax carryforwards –204
161,863 141,348
Less: valuation allowance –139,455
Net deferred income tax assets $161,863 $1,893
Liabilities
Capital assets 4,313 –
Unrealized gains on financial instruments 5,070 1,893
Other tax carryforwards 2,280 –
11,663 1,893
Net deferred income tax assets $150,200 $–
As a result of the NTP resolution during the fourth quarter of fiscal 2005 as described in note 15, the Company
determined that it was more likely than not it can realize its deferred tax assets. Accordingly, a valuation
allowance of $nil is required on its deferred tax assets (February 28, 2004 – $139,455). The Company will
continue to evaluate and examine the valuation allowance on a regular basis and as future events unfold, the
valuation allowance may be adjusted.
The Company has not provided for Canadian deferred income taxes or foreign withholding taxes that would
apply on the distribution of the earnings of its non-Canadian subsidiaries, since these earnings are intended
to be reinvested indefinitely.
10. Long-Term Debt
At February 26, 2005, long-term debt consisted of mortgages with interest rates ranging between 6.88% and
7.90%, against which certain land and buildings are pledged as collateral. The carrying value of the collateral
at February 26, 2005 is $11,084. All mortgage loans are denominated in Canadian dollars and mature on
March 1, 2009.
Interest expense on long-term debt for the year was $460 (February 28, 2004 – $771; March 1, 2003 – $852).
The scheduled long-term debt principal payments for the fiscal years 2006 through to maturity are as follows:
For the year ending
2006 $223
2007 240
2008 257
2009 276
2010 5,731
$6,727
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)