Blackberry 2008 Annual Report Download - page 66

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64
RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements continued
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
is included in Manufacturing equipment, research and
development equipment, and tooling.
For the year ended March 1, 2008, amortization expense
related to capital assets was $133,048 (March 3, 2007 -
$93,497; March 4, 2006 - $62,678).
March 3, 2007
Cost Accumulated
amortization Net book
value
Land $ 39,509 $ - $ 39,509
Buildings, leaseholds and other 217,941 29,560 188,381
BlackBerry operations and other information technology 304,778 159,739 145,039
Manufacturing equipment, research and development equipment,
and tooling 117,958 66,553 51,405
Furniture and fixtures 106,592 43,347 63,245
$ 786,778 $ 299,199 $ 487,579
As at March 1, 2008, the carrying amount of assets under
construction is $93,886 (March 3, 2007 - $15,741). Of this
amount, $63,878 (March 3, 2007 - $6,809) is included in
Buildings, leaseholds and other; $20,420 (March 3, 2007 -
$6,579), is included in BlackBerry operations and other
information technology; and $9,588 (March 3, 2007 - $2,353)
7. INTANGIBLE ASSETS
Intangible assets are comprised of the following:
March 1, 2008
Cost Accumulated
amortization Net book
value
Acquired technology $ 59,675 $ 29,749 $ 29,925
Licenses 94,444 32,410 62,034
Patents 399,232 21,203 378,029
$ 553,350 $ 83,362 $ 469,988
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
On December 21, 2007, the Company entered into a patent
assignment and license agreement to acquire a portfolio of
patents for GSM/UMTS technologies. The purchase price
was 120 million Euros or $172 million. On February 28, 2008,
the Company entered into a patent assignment and license
agreement to acquire a portfolio of patents for speech coding
technology. The purchase price was $90 million. The acquired
patents were recorded as Intangible assets and are being
amortized over their estimated useful lives.
For the year ended March 1, 2008, amortization expense
related to intangible assets was $44,318 (March 3, 2007 -
$32,858; March 4, 2006 - $23,195). Total additions to intangible
assets in fiscal 2008 were $376,123 (2007 - $85,111).
Based on the carrying value of the identified intangible
assets as at March 1, 2008 and assuming no subsequent
impairment of the underlying assets, the annual amortization
expense for the next five fiscal years is expected to be as
follows: 2009 - $67 million; 2010 - $49 million; 2011 - $41
million; 2012 - $35 million; and 2013 - $33 million.
8. BUSINESS ACQUISITIONS
During the third quarter of fiscal 2008, the Company purchased
the assets and intellectual property of a company. The
transaction closed on November 19, 2007. The impact of this
acquisition was not material to the Company’s consolidated
operating results in fiscal 2008.