Blackberry 2010 Annual Report Download - page 38

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There were no adjustments to U.S. GAAP net income in the third and fourth quarters of fiscal 2010.
The following table provides a reconciliation of net income to adjusted net income and diluted earnings per
share to adjusted diluted earnings per share for the fiscal year ended February 27, 2010:
February 27,
2010
February 28,
2009
For the Fiscal Year Ended
Net income .................................................................................................................................................. $2,457,144 $ 1,892,616
Visto Litigation (net of tax)........................................................................................................................... 112,809 –
Foreign exchange impact on the enactment of functional currency tax rules (net of tax) .......................... 37,396 –
Provision for employee tax obligations for stock options (net of tax) ......................................................... 28,952 –
Tax benefit recorded on enactment of functional currency tax rules .......................................................... (145,000) –
Foreign exchange impact on Canadian income taxes................................................................................ –99,700
Adjusted net income .................................................................................................................................... $2,491,301 $ 1,992,316
Diluted earnings per share.......................................................................................................................... $ 4.31 $ 3.30
Adjusted diluted earnings per share............................................................................................................ $ 4.37 $ 3.47
Financial Condition
Liquidity and Capital Resources
Cash and cash equivalents, short-term investments and long-term investments increased by $630.9 million to
$2.87 billion as at February 27, 2010 from $2.24 billion as at February 28, 2009. The majority of the Company’s
cash and cash equivalents, short-term investments and long-term investments are denominated in U.S. dollars
as at February 27, 2010.
A comparative summary of cash and cash equivalents, short-term investments and long-term investments is
set out below:
(in thousands)
February 27,
2010
February 28,
2009 Change
As at
Cash and cash equivalents....................................................................................................... $ 1,550,861 $ 835,546 $ 715,315
Short-term investments.............................................................................................................. 360,614 682,666 (322,052)
Long-term investments .............................................................................................................. 958,248 720,635 237,613
Cash and cash equivalents, short-term investments and long-term investments...................... $2,869,723 $ 2,238,847 $ 630,876
The increase in cash and cash equivalents, short-term investments and long-term investments is primarily due
to net cash flows provided from operating activities partially offset by net cash flow used in investing activities
and financing activities as set out below:
(in thousands)
February 27,
2010
February 28,
2009
For the Fiscal Year Ended
Net cash flows provided by (used in):
Operating activities.................................................................................................................................. $ 3,034,874 $ 1,451,845
Investing activities.................................................................................................................................... (1,470,127) (1,823,523)
Financing activities .................................................................................................................................. (843,381) 25,367
Effect of foreign exchange gain on cash and cash equivalents................................................................. (6,051) (2,541)
Net increase (decrease) in cash and cash equivalents............................................................................... $ 715,315 $ (348,852)
Cash flows for the fiscal year ended February 27, 2010
Operating Activities
Cash flow provided by operating activities was $3.03 billion for fiscal 2010 reflecting higher net income
compared to fiscal 2009, offset by lower net changes in working capital in fiscal 2010 compared to fiscal
2009.
MD&A
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