Blackberry 2009 Annual Report Download - page 43

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Fiscal year ended February 28, 2009 compared to the fiscal
year ended March 1, 2008
Operating Activities
Cash flow provided by operating activities was $1.45 billion
in fiscal 2009 compared to cash flow provided by operating
activities of $1.58 billion in the preceding fiscal year,
representing a decrease of $124.9 million. The table below
summarizes the key components of this net decrease.
Fiscal Year Ended
(in thousands)
February 28, 2009 March 1, 2008 Change - Fiscal 2009/2008
Net income $ 1,892,616 $ 1,293,867 $ 598,749
Amortization 327,896 177,366 150,530
Deferred income taxes (36,623)(67,244) 30,621
Income taxes payable (6,897)4,973 (11,870)
Stock-based compensation 38,100 33,700 4,400
Other 5,867 3,303 2,564
Net changes in working capital (769,114)130,794 (899,908)
Cash provided from operating activities $ 1,451,845 $ 1,576,759 $ (124,914)
The increase in working capital in fiscal 2009 was primarily
due to increases in trade receivables and inventory, partially
offset by an increase in accrued liabilities. The decrease in
working capital in fiscal 2008 was primarily due to increases in
income taxes payable and accrued liabilities, partially offset
by increases in trade receivables and inventory.
Financing Activities
Cash flow provided by financing activities was $25.4 million
for fiscal 2009 and was primarily provided by the proceeds
from the exercise of stock options and tax benefits from the
exercise of stock options, offset in part by repayment of the
long-term debt. The cash flow provided by financing activities
in fiscal 2008 in the amount of $80.4 million was primarily
attributable to 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 Company’s Co-Chief
Executive Officers. See “Restatement of Previously Issued
Financial Statements – Review Costs”.
Investing Activities
During the fiscal year ended February 28, 2009, cash flow
used in investing activities was $1.82 billion and included
capital asset additions of $833.5 million, intangible asset
additions of $687.9 million, business acquisitions of $48.4
million as well as transactions involving the proceeds on
sale or maturity of short-term investments and long-term
investments, net of the costs of acquisitions in the amount
of $253.7 million. For the same period of the prior fiscal year,
cash flow used in investing activities was $1.15 billion and
included capital asset additions of $351.9 million, intangible
asset additions of $374.1 million, as well as transactions
involving the proceeds on sale or maturity of short-term
investments and long-term investments, net of the costs
of acquisition, amounting to $421.7 million. The increase
in capital asset spending was primarily due to increased
investment in land and building purchases, renovations
to existing facilities, expansion and enhancement of
the BlackBerry infrastructure and computer equipment
purchases. The increase in intangible asset spending was
primarily associated with agreements with third parties
totalling $353 million for the use of intellectual property,
software, messaging services and other BlackBerry-related
features and several agreements to acquire portfolios of
patents relating to wireless communication technologies
totalling $279 million. All acquired patents were recorded
as Intangible assets and are being amortized over their
estimated useful lives.