Blackberry 2007 Annual Report Download - page 90

88
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 Company determined that it was more likely than not that
it can realize its deferred income tax assets. Accordingly, no
valuation allowance is required on its deferred income tax
assets (March 4, 2006 - $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, as these earnings are intended to be reinvested
indefinitely.
11. LONG-TERM DEBT
At March 3, 2007, 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 3, 2007 is $10,570. All
mortgage loans are denominated in Canadian dollars and
mature on March 1, 2009.
Interest expense on long-term debt for the year was $494
(March 4, 2006 - $483; February 26, 2005 - $460).
The scheduled long-term debt principal payments for the
fiscal years 2008 through to maturity are as follows:
For the years ending
2008 $ 271
2009 291
2010 6,051
$ 6,613
During fiscal 2007, the Company amended an existing credit
facility and now has a $100 million Demand Credit Facility
(“the Facility”). The Company has utilized $15.9 million of
the Facility to secure operating and financing requirements.
As at March 3, 2007, $84.1 million of the Facility was unused.
The Company has pledged specific investments as security
for this Facility. The Company had previously 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, Inc. (“NTP”) litigation matter. As a result of
the settlement of the NTP litigation matter, the Company
cancelled the letter of credit on March 6, 2006.
The Company has an additional demand facility in
the amount of $17.0 million to support and secure other
operating and financing requirements. As at March 3, 2007,
$15.6 million of this facility was unused. A general security
agreement and a general assignment of book debts have
been provided as collateral for this facility.
12. CAPITAL STOCK
(a) Share capital
The Company is authorized to issue an unlimited number
of non-voting, redeemable, retractable Class A common
shares, an unlimited number of voting common shares and
an unlimited number of non-voting, cumulative, redeemable,
retractable preferred shares. There are no Class A common
shares or preferred shares outstanding.
The Company declared an effective two-for-one stock
split in the form of a one-for-one stock dividend payable
on June 4, 2004 for all shareholders of record as at close of
business on May 27, 2004. All common shares, earnings per
share and stock option data for the current, year-to-date and
prior comparative periods have been adjusted to reflect this
stock dividend. In addition, the effect of this stock dividend
doubled the number of stock options outstanding and
reduced the exercise prices of these stock options by half of
the original exercise price.