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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 67
For the years ended March 4, 2006, February 26, 2005 and February 28, 2004
13. Product Warranty
The Company estimates its warranty costs at the time of revenue recognition based on historical warranty
claims experience and records the expense in
Cost of sales
. The warranty accrual balance is reviewed
quarterly to establish that it materially reects the remaining obligation based on the anticipated future
expenditures over the balance of the obligation period. Adjustments are made when the actual warranty
claim experience differs from estimates.
The change in the Company’s accrued warranty obligations from March 1, 2003 to March 4, 2006
was as follows:
Accrued warranty obligations at March 1, 2003 $ 5,170
Actual warranty experience during scal 2004 (3,946)
Fiscal 2004 warranty provision 8,648
Adjustments for changes in estimate (626)
Accrued warranty obligations at February 28, 2004 $ 9,246
Actual warranty experience during scal 2005 (6,133)
Fiscal 2005 warranty provision 24,732
Adjustments for changes in estimate (13,188)
Accrued warranty obligations at February 26, 2005 $ 14,657
Actual warranty experience during scal 2006 
Fiscal 2006 warranty provision 
Adjustments for changes in estimate 
      
14. Government Assistance
The Company has previously entered into two project development agreements with Technology
Partnerships Canada (“TPC”), which provide partial funding for certain research and development projects.
Funding from TPC for the rst agreement (“TPC-1”) totalled $3,900 and was repayable in the form of
royalties of 2.2% on gross product revenues resulting from the project. The Company was obligated to
pay royalties on all project revenues up to a maximum of $6,100. The Company has recorded $nil on
account of TPC royalty repayment expense with respect to TPC-1 during scal 2006 (February 26, 2005
— $nil; February 28, 2004 – $2,530). The nal repayment with respect to TPC-1 was made during the rst
quarter of scal 2005.
The second agreement with TPC is for a development project (“TPC-2”) under which total contributions
from TPC have been $23,300. The Company has fullled all prerequisite funding conditions and recorded
all of the contributions as at February 28, 2004. This contribution will be repayable to TPC in the form of
a royalty of 2.2% on gross business revenues, subject to certain annual maximum amounts through scal
2015, not exceeding $39,300. The Company has recorded $1,929 on account of TPC royalty repayment
expense with respect to TPC-2 during scal 2006 (February 26, 2005 – $nil; February 28, 2004 – $nil).