Blackberry 2007 Annual Report Download - page 88

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86
RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements continued
For the Years Ended March 3, 2007, March 4, 2006 and February 26, 2005
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
The following table summarizes the estimated fair value of
the assets acquired and liabilities assumed at the date of
acquisition:
For the year ended
March 3,
2007 March 4,
2006 February 26,
2005
Assets purchased
Current assets $ 3,707 $ 158 $ -
Capital assets 802 - -
Deferred income tax asset 10,440 259 2,889
Acquired technology 40,266 6,223 2,140
Goodwill 80,906 - (1,083)
136,121 6,640 3,946
Liabilities assumed 8,597 645 58
Deferred income tax liability 11,334 2,200 -
19,931 2,845 58
Net non-cash assets acquired 116,190 3,795 3,888
Cash acquired 3,649 3 23
Net assets acquired $ 119,839 $ 3,798 $ 3,911
Consideration
Cash $ 119,839 $ 3,798 $ 3,911
The acquisitions were accounted for using the purchase
method whereby identifiable assets acquired and liabilities
assumed were recorded at their estimated fair value as of
the date of acquisition. The excess of the purchase price
over such fair value was recorded as goodwill. Acquired
technology includes current and core technology, and is
amortized over periods ranging from two to five years.
10. INCOME TAXES
The difference between the amount of the provision for
(recovery of) income taxes and the amount computed by
multiplying income before income taxes by the statutory
Canadian tax rate is reconciled as follows:
For the year ended
March 3,
2007 March 4,
2006 February 26,
2005
(Restated -
note 4) (Restated -
note 4)
Statutory Canadian tax rate 36.1% 36.1% 36.1%
Expected income tax provision $ 310,215 $ 173,925 $ 23,901
Differences in income taxes resulting from:
Manufacturing and processing activities (12,097) (7,143) (1,053)
Decrease in valuation allowance - (142,852)
Investment tax credits (37,054) (53,385) (13,652)
Foreign exchange (2,111) 597 (2,782)
Foreign tax rate differences (37,574) (8,162) (5,444)
Enacted tax rate changes (2,778) - -
Non-deductible stock compensation 6,394 798 662
Other differences 2,378 233 1,780
$ 227,373 $ 106,863 $ (139,440)