Blackberry 2008 Annual Report Download - page 44

RESEARCH IN MOTION LIMITED
management’s discussion and analysis of financial
condition and results of operations continued
FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 1, 2008
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and long-term investments, net of the costs of acquisitions
in the amount of $421.7 million. For the prior fiscal year,
cash flow used in investing activities was $364.6 million and
included capital asset additions of $254.0 million, intangible
asset additions of $60.3 million, business acquisitions in
the amount of $116.2 million offset in part by transactions
involving the proceeds on sale or maturity of short-term
investments and long-term investments, net of the costs
of acquisition, amounting to $65.9 million. The increase
in capital asset spending was primarily due to increased
investment in renovations to existing facilities, expansion
and enhancement of the BlackBerry Infrastructure and
computer equipment purchases. The increase in intangible
asset spending was associated with two patent assignment
and license agreements to acquire portfolios of patents for
a total of $262.3 million. All acquired patents were recorded
as Intangible assets and are being amortized over their
estimated useful lives.
Financing Activities
Cash flow provided by financing activities was $80.4 million
for fiscal 2008 and was primarily provided by the proceeds
from the exercise of stock options in the amount of
$62.9 million, as well as the voluntary payments of CAD
$7.5 million each made by the co-CEOs. The cash flow
used in financing activities in fiscal 2007 in the amount of
$153.7 million was primarily attributable to the repurchase of
3.2 million common shares in the amount of $203.9 million
pursuant to the Company’s Common Share Repurchase
Program, offset in part by the proceeds from the exercise of
stock options in the amount of $44.5 million.
Investing Activities
During the fiscal year ended March 1, 2008, cash flow
used in investing activities was $1.15 billion and included
capital asset additions of $351.9 million and intangible asset
additions of $374.1 million, as well as transactions involving
the proceeds on sale or maturity of short-term investments
Fiscal Year Ended
March 1, 2008 March 3, 2007 Change-Fiscal 2008/2007
Net income $ 1,293,867 $ 631,572 $ 662,295
Amortization 177,366 126,355 51,011
Deferred income taxes (67,244) 101,576 (168,820)
Stock-based compensation 33,700 19,063 14,637
Changes in:
Trade receivables (602,055) (254,370) (347,685)
Other receivables (34,515) (8,300) (26,215)
Inventory (140,360) (121,238) (19,122)
Accounts payable 140,806 47,625 93,181
Accrued liabilities 383,020 119,997 263,023
Income taxes payable 406,243 83,310 322,933
All other (14,069) (9,921) (4,148)
Cash flows from operating activities $ 1,576,759 $ 735,669 $ 841,090
recognize additional impairment charges on these securities
if the restructuring is unsuccessful or there is an other-than
temporary deterioration in the value of the underlying assets.
The remaining $15.0 million face amount of SIV holdings
were sold by the Company subsequent to March 1, 2008 for a
realized loss of $1.8 million. This loss is included in the other-
than-temporary impairment charge as described above and
these securities have been classified as short-term investments
as of March 1, 2008.
Fiscal year ended March 1, 2008 compared to fiscal year
ended March 3, 2007
Operating Activities
Cash flow provided by operating activities was $1.58 billion
in fiscal 2008 compared to cash flow provided by operating
activities of $735.7 million in the preceding fiscal year,
representing an increase of $841.1 million. The table below
summarizes the key components of this net increase.