Blackberry 2007 Annual Report Download - page 87

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85
8. INTANGIBLE ASSETS
Intangible assets are comprised of the following:
March 3, 2007
Cost Accumulated
amortization Net book
value
Acquired technology $ 58,639 $ 19,183 $ 39,456
Licenses 90,811 68,177 22,634
Patents 87,630 11,538 76,092
$ 237,080 $ 98,898 $ 138,182
March 4, 2006
Cost Accumulated
amortization Net book
value
Acquired technology $ 18,373 $ 9,465 $ 8,908
Licenses 82,806 48,576 34,230
Patents 50,790 7,999 42,791
$ 151,969 $ 66,040 $ 85,929
For the year ended March 3, 2007, amortization expense
related to intangible assets was $32,858 (March 4, 2006 -
$23,195; February 26, 2005 - $19,730). Total additions to
intangible assets in 2007 were $85,111 (2006 - $45,384).
Based on the carrying value of the identified intangible
assets as at March 3, 2007, and assuming no subsequent
impairment of the underlying assets, the annual amortization
expense for the next five years is expected to be as follows:
2008 - 33 million; 2009 - $17 million; 2010 - $15 million;
2011 - $13 million; and 2012 - $7 million.
9. BUSINESS ACQUISITIONS
During the third quarter of fiscal 2007, the Company
purchased 100% of the common shares of a company whose
proprietary software will be incorporated into the Company’s
software. The transaction closed on September 22, 2006.
The operating results were not material to the Company’s
operating results in fiscal 2007.
During the second quarter of fiscal 2007, the Company
purchased 100% of the common shares of Slipstream Data
Inc. (“Slipstream”). The transaction closed on July 7, 2006.
Slipstream provides acceleration, compression and network
optimization to enhance the online experience for mobile,
dial and broadband subscribers, while significantly reducing
bandwidth requirements. The operating results of Slipstream
were not material to the Company’s operating results in fiscal
2007.
During the first quarter of fiscal 2007, the Company
purchased 100% of the common shares of Ascendent Systems
Inc. (“Ascendent”). The transaction closed on March 9, 2006.
Ascendent specializes in enterprise solutions to simplify voice
mobility implementations and allows the Company to further
extend and enhance the use of wireless communications by
offering a voice mobility solution that helps customers align
their mobile voice and data strategies. The operating results
of Ascendent were not material to the Company’s operating
results in fiscal 2007.
In the acquisitions noted above, the consideration paid
by the Company was cash and the results of the acquirees’
operations have been included in the consolidated financial
statements commencing from each respective closing date to
March 3, 2007.
During the first quarter of fiscal 2006, the Company
purchased 100% of the common shares of a company whose
proprietary software was incorporated into the Company’s
software. The transaction closed on March 24, 2005.