Blackberry 2009 Annual Report Download - page 69

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Deferred income tax assets and liabilities consist of the
following temporary differences:
As at
February 28,
2009 March 1, 2008
Assets
Non-deductible reserves $ 177,669 $ 102,737
Tax loss carryforwards 11,176 18,245
Unrealized losses on financial instruments 1,902 -
Other tax carryforwards 3,972 247
Net deferred income tax assets 194,719 121,229
Liabilities
Capital assets 91,193 68,140
Research and development 20,283 11,468
Unrealized gains on financial instruments -11,383
Net deferred income tax liabilities 111,476 90,991
Net deferred income tax asset $ 83,243 $ 30,238
Deferred income tax asset - current $ 183,872 $ 90,750
Deferred income tax liability - current (13,116) -
Deferred income tax asset - long term 404 4,546
Deferred income tax liability - long-term (87,917) (65,058)
$ 83,243 $ 30,238
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 as at February 28, 2009 (March 1, 2008 - $nil). The
Company will continue to evaluate and examine the valuation
allowance on a regular basis and when required, 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.
The Company’s total unrecognized income tax benefits as
at March 2, 2008 and February 28, 2009 were $175.4 million
and $137.4 million respectively. The change in unrecognized
income tax benefits during fiscal 2009 relates to a $39.9
million decrease due to changes in measurement of existing
uncertain tax positions related to the depreciation of the
Canadian dollar versus U.S. dollar, enacted tax rate changes
and other measurement criteria, a $2.4 million decrease
related to the settlement of an unrecognized income tax
benefit related to ITCs on research and development
expenditures, and a $4.3 million increase in uncertain
tax positions related ITCs on research and development
expenditures and transfer pricing matters. A reconciliation of
the beginning and ending amount of unrecognized income
tax benefits is as follows:
(in millions)
Unrecognized income tax benefits balance as at March 2, 2008 $ 175.4
Gross increase for tax positions of prior years 4.3
Settlement of tax positions (2.4)
Foreign exchange (39.1)
Other (0.8)
Unrecognized income tax benefits balance as at February 28, 2009 $ 137.4