Blackberry 2010 Annual Report Download - page 10

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Financials
Management’s Discussion and Analysis
of Financial Condition and Results of Operations......................................................................................... 3
Special Note Regarding Forward–Looking Statements................................................................................ 3
Overview ..................................................................................................................................................... 5
Sources of Revenue .................................................................................................................................... 5
Fiscal 2010 Operating Results – Executive Summary ................................................................................... 6
Critical Accounting Policies and Estimates .................................................................................................. 7
Impact of Accounting Pronouncements Not Yet Implemented ..................................................................... 13
Restatement of Previously Issued Financial Statements .............................................................................. 14
Results of Operations – Fiscal 2010 Compared to Fiscal 2009 and Fiscal 2008 .......................................... 17
Revenue ...................................................................................................................................................... 17
Gross Margin .............................................................................................................................................. 18
Research and Development ........................................................................................................................ 19
Selling, Marketing and Administration Expenses ......................................................................................... 19
Amortization Expense .................................................................................................................................. 19
Litigation ..................................................................................................................................................... 20
Investment Income ...................................................................................................................................... 20
Income Taxes .............................................................................................................................................. 20
Net Income ................................................................................................................................................. 21
Common Shares Outstanding ..................................................................................................................... 21
Fiscal year end February 28, 2009 compared to fiscal year ended March 1, 2008..................................... 21
Summary Results of Operations – Three months ended February 27, 2010 compared to three months
ended February 28, 2009 ........................................................................................................................ 25
Selected Quarterly Financial Data .............................................................................................................. 28
Non-GAAP Financial Data............................................................................................................................ 29
Financial Condition ..................................................................................................................................... 30
Legal Proceedings ...................................................................................................................................... 33
Market Risk of Financial Instruments .......................................................................................................... 38
Disclosure Controls and Procedures and Internal Controls.......................................................................... 40
Appendix A.................................................................................................................................................. 41
Management’s Responsibility for Financial Reporting .................................................................................... 51
Report of Independent Registered Public Accounting Firm
on Internal Control Over Financial Reporting ................................................................................................ 52
Report of Independent Registered Public Accounting Firm.............................................................................. 53
Consolidated Balance Sheets ......................................................................................................................... 54
Consolidated Statements of Shareholders’ Equity .......................................................................................... 55
Consolidated Statements of Operations ......................................................................................................... 56
Consolidated Statements of Cash Flows ........................................................................................................ 57
Notes to the Consolidated Financial Statements ............................................................................................ 58
Corporate Information.................................................................................................................................... 89
Shareholder Information ................................................................................................................................89