Blackberry 2008 Annual Report Download - page 45

43
Aggregate Contractual Obligations
The following table sets out aggregate information about the
Company’s contractual obligations and the periods in which
payments are due as at March 1, 2008:
Total Less than One Year One to Three Years Four to Five Years Greater than Five Years
Long-term debt $ 7,608 $ 349 $ 7,259 $ - $ -
Operating lease obligations 123,847 15,679 39,828 20,213 48,127
Purchase obligations and commitments 1,947,529 1,947,529 - - -
Total $ 2,078,984 $ 1,963,557 $ 47,087 $ 20,213 $ 48,127
Purchase obligations and commitments of $1.9 billion as
of March 1, 2008, in the form of purchase orders or contracts,
are primarily for the purchase of raw materials, as well as
capital assets and other goods and services. The expected
timing of payment of these purchase obligations and
commitments is estimated based upon current information.
The timing of payments and actual amounts paid may be
different depending upon the time of receipt of goods and
services or changes to agreed-upon amounts for some
obligations.
The Company has commitments on account of capital
expenditures of approximately $52 million included in the
$1.9 billion above, primarily for manufacturing and IT,
including service operations. The Company intends to fund
current and future capital asset expenditure requirements
from existing financial resources and cash flows.
On March 31, 2008, the Company entered into 2 separate
patent assignment and license transactions. One agreement
was to acquire a portfolio of patents for GSM technologies
for a purchase price of 35 million Euros, or approximately $55
million based on current foreign exchange rates. The other
agreement was to acquire a portfolio of patents relating to
wireless communication technologies for a purchase price
of $12 million. The patents will be recorded as non-current
assets and amortized over their estimated useful lives.
The Company has obligations payable in the first quarter
of fiscal 2009 of approximately $475 million for payment
of income taxes relating to fiscal 2008. The amounts have
been included as Current liabilities in Income tax payable
as of March 1, 2008 and the Company intends to fund these
obligations from existing financial resources and cash flows.
The Company has not declared any cash dividends in the
last three fiscal years.
Cash and cash equivalents, short-term investments and
long-term investments were $2.34 billion as at March 1, 2008.
The Company believes its financial resources, together with
expected future earnings, are sufficient to meet funding
requirements for current financial commitments, for future
operating and capital expenditures not yet committed, and
also provide the necessary financial capacity to meet current
and future growth expectations.
The Company has a $100 million Demand Credit Facility
(the“Facility”) to support and secure operating and financing
requirements. As at March 1, 2008, the Company has utilized
$18.4 million of the Facility for outstanding Letters of Credit
and $81.6 million of the Facility was unused. The Company
has pledged specific investments as security for this Facility.
The Company has an additional $2.6 million Demand
Credit Facility (the “Additional Facility”). The Additional
Facility is used to support and secure other operating and
financing requirements. As at March 1, 2008, the Company
has utilized $1.5 million of the Additional Facility for
outstanding letters of credit and $1.1 million of the Additional
Facility was unused. The Company has pledged specific
investments as security for this facility.
The Company does not have any off-balance sheet
arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K
under the Exchange Act and under applicable Canadian
securities laws.