Blackberry 2010 Annual Report Download - page 81

During fiscal 2008, the Company purchased the assets and intellectual property of a company. The transaction closed on
November 19, 2007. In addition, the Company purchased 100% of the common shares of a company whose proprietary
software has been incorporated into the Company’s software. The transaction closed on August 22, 2007.
The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of
acquisition along with prior year’s acquisition allocations:
February 27,
2010
February 28,
2009
March 1,
2008
For the year ended
Assets purchased
Current assets.................................................................................................. $ 19,282 $ 1,155 $ 23
Capital assets.................................................................................................. – 494 –
Deferred income tax asset................................................................................ 26,000 3,097 –
Acquired technology ........................................................................................ 72,971 31,226 1,035
In-process research and development .............................................................. – 1,919 –
Patents............................................................................................................. 36,600 – 960
Goodwill .. ......................................................................................................... 12,989 23,117 4,523
167,842 61,008 6,541
Liabilities assumed ............................................................................................. 15,072 12,583 –
Deferred income tax liability .............................................................................. 751 – 341
15,823 12,583 341
Net non-cash assets acquired............................................................................. 152,019 48,425 6,200
Cash acquired ................................................................................................. 8,370 1,421 1
Net assets acquired ............................................................................................ 160,389 49,846 6,201
Excess of net assets acquired over consideration paid ..................................... (8,588) – –
Consideration paid ............................................................................................. $ 151,801 $ 49,846 $ 6,201
During fiscal 2010, the Company recorded a gain of $8.6 million as a result of the excess of net assets acquired over
consideration paid on one of the acquisitions. In addition, the Company expensed $6.5 million of acquisition related costs
due to the four acquisitions. Both of these items were recognized in selling, marketing and administration in the period. The
excess of net assets acquired over consideration paid resulted from the combination of the significant value attributed to
the identifiable intangible assets and the Company’s ability to utilize tax losses of an acquiree, which was generally not
available to other market participants.
The weighted average amortization period of the acquired technology related to the business acquisitions completed in
fiscal 2010 is approximately 3.7 years (2009 — 4.6 years).
The weighted average amortization period of the patents related to the business acquisition completed in fiscal 2010 is
approximately 18.1 years (2009 — nil years).
Pro forma results of operations for the acquisitions have not been presented because the effects of the operations,
individually or in aggregate, are not considered to be material to the Company’s consolidated results.
NOTE 9
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