Blackberry 2006 Annual Report Download - page 35
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Please find page 35 of the 2006 Blackberry annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.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)
Annual Report 2006 33
For the years ended March 4, 2006, February 26, 2005 and February 28, 2004
Fiscal Year Ended February 26, 2005
Net income $ 213,387
Amortization 66,760
Deferred income taxes (143,651)
Changes in:
Trade receivables (126,1 77)
Other receivables (7,326)
Inventory (49,653)
Accounts payable 32,894
Accrued liabilities 16,528
Litigation provision 351,218
Restricted cash (75,717)
All other (281)
$ 277,982
Cash ow used in nancing activities was $368.2 million for scal 2006 compared to cash ow provided by
nancing activities of $54.0 million in scal 2005. The use of cash in scal 2006 was primarily attributable
to the repurchase of 6.3 million common shares in the amount of $391.2 million pursuant to the Company’s
Common Share Repurchase Program.
Cash ow provided by investing activities was $67.3 million for scal 2006, which included capital
asset additions of $178.7 million and intangible asset additions of $23.7 million offset by transactions
involving the proceeds on sale or maturity of short-term investments and investments, net of the costs of
acquisition in the amount of $273.6 million. For the prior scal year, cash ow used in investing activities
was $878.1 million and included capital asset additions of $109.4 million and intangible asset additions
of $17.1 million as well as transactions involving the costs of acquisition of short-term investments and
investments, net of the proceeds on sale or maturity in the amount of $747.8 million.
See also “Litigation” and notes 10 and 15 to the Consolidated Financial Statements.
As a result of the denitive licensing and settlement agreements that were signed on March 3, 2006, the
litigation against RIM was dismissed by a court order. The agreement eliminated the need for any further
court proceedings or decisions relating to damages or injunctive relief. On March 3, 2006, RIM paid NTP
$612.5 million in full and nal settlement of all claims against RIM, as well as for a perpetual, fully-paid up
license going forward. This amount included money already escrowed by RIM as of March 3, 2006.
As at March 4, 2006, the Company had a $70 million Letter of Credit Facility (the “Facility”) in place with
a Canadian nancial institution and utilized $48 million of the Facility in order to fund a letter of credit to
partially satisfy the Company’s liability and funding obligation in the NTP matter as described in note 10
to the Consolidated Financial Statements. The Company had pledged specic investments as security for
the Facility. As a result of the settlement of the NTP matter, the Company cancelled the letter of credit on
March 6, 2006, subsequent to the scal 2006 year end.