Blackberry 2006 Annual Report Download - page 62

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Research In Motion Limited
60
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)
Deferred income tax assets and liabilities consist of the following temporary differences:
As at  February 26, 2005
Assets
Financing costs   $ 8,727
Non-deductible reserves  7,370
Reserve related to NTP litigation (note 15) 92,837
Research and development incentives  42,920
Tax loss carryforwards  10,009
Other tax carryforwards  —
Net deferred income tax assets   $ 161,863
Liabilities
Capital assets  4,3 13
Unrealized gains on nancial instruments  5,070
Other tax carryforwards 2,280
 11,663
Net deferred income tax   $ 150,200
Deferred income tax asset — current   $ 150,200
Deferred income tax liability — long-term  —
  $ 150,200
The Company determined that it was more likely than not that it can realize its deferred income tax assets.
Accordingly, a valuation allowance of $nil is required on its deferred income tax assets (February 26, 2005
— $nil). 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 indenitely.
10. Long-term Debt
At March 4, 2006, long-term debt consisted of mortgages with interest rates ranging between 6.88%
and 7.90%, against which certain land and building are pledged as collateral. The carrying value of the
collateral at March 4, 2006 is $10,830. All mortgage loans are denominated in Canadian dollars and
mature on March 1, 2009.
Interest expense on long-term debt for the year was $483 (February 26, 2005 — $460;
February 28, 2004 — $771).